3.203 -Exemption for Hotel/Motel Rooms

Item	Description	FY2009	FY2010	FY2011
3.203	Exemption for Hotel/Motel Rooms Rental charges for real property are exempt from sales tax. However, rentals of rooms in hotels, motels or lodging houses are subject to a state excise at a rate of 5.7% of the rental price, and, at a municipality's option, to a local excise of up to 6% of the rental price (6.5% in the city of Boston). A Convention Center financing fee of 2.75% is also included in certain areas. Comment: Revenues collected under the budgeted state room excise were $119.1 million in Fiscal Year 2008 and $109.5 million in Fiscal Year 2009. Revenues collected under the budgeted state room excise were $119.1 million in Fiscal Year 2008 and $109.5 million in Fiscal Year 2009. Origin: General exclusion of real property transactions Estimate: $130.0	112.9	126.1	130

Key:

ORIGIN
M.G.L.	Massachusetts General Laws
ESTIMATES	All estimates are in $ millions.