3.203 -Exemption for Hotel/Motel Rooms

Item	Description	FY2010	FY2011	FY2012
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 $109.5 million in Fiscal Year 2009 and $101.6 million in Fiscal Year 2010. Origin: General exclusion of real property transactions Estimate: $143.7	128.3	142.9	143.7

Key:

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