SECTION 1: Chapter 64G of the General Laws is hereby amended by striking out section 3 and inserting in place thereof the following new section:-

Section 3. An excise shall be imposed upon the transfer of occupancy of a room or unit in a bed and breakfast establishment, hotel, lodging house, short-term rental or motel by an operator at the rate of 5 per cent of the total amount of rent for each such occupancy. An excise shall not be imposed if the total amount of rent is less than $15 per day or its equivalent.

The operator shall pay the excise to the commissioner at the time provided for filing the return required under section 16 of chapter 62C.

No excises or fees established under this chapter shall be imposed upon the transfer of occupancy of a short-term rental if:

(a) the operator transfers such short-term rental for not more than 14 days in a calendar year, provided, that the operator has first: (i) registered with the commissioner in accordance with section 67 of chapter 62C; and (ii) filed a declaration with the commissioner, signed by the operator and subject to section 5 of chapter 62C, setting forth the intention to transfer the short-term rental for not more than 14 days in a calendar year. Such a declaration, if applicable, shall be required annually in a manner determined by the commissioner. If the operator transfers the short-term rental for 15 days or more in the same calendar year, or fails to register and file a declaration as required by this subsection, then the operator shall be liable for the payment of required excises and fees under this chapter, including payment of required taxes and fees on the first 14 days the short-term rental was transferred in the calendar year; or

(b) the operator owns not more than 10 units available for short-term rental and transfers such short-term rental for occupancy periods of not less than 7 consecutive nights during the period beginning the Friday preceding Memorial Day and ending on Labor Day (the “summer season”), provided, that the operator has first: (i) registered with the commissioner in accordance with section 67 of chapter 62C; and (ii) filed a declaration with the commissioner, signed by the operator and subject to section 5 of chapter 62C, setting forth the operator’s ownership qualification and intention to transfer the short-term rental for occupancy periods of not less than 7 consecutive nights during the summer season. Such a declaration, if applicable, shall be required annually in a manner determined by the commissioner. Any transfer of the short-term rental for occupancy periods of less than 7 consecutive nights or outside of the summer season shall not be eligible for the exemption under this subsection from the excises and fees established under this chapter. If the operator fails to register and file a declaration as required by this subsection, then the operator shall be liable for the payment of required excises and fees under this chapter, including payment of required taxes and fees on all transfers of the short-term rental during the calendar year. For purposes of determining the number of units owned by an operator, the number of units owned by (i) entities in which the operator owns directly or indirectly greater than 50% voting power or profits or beneficial interest, (ii) the operator’s spouse, and (iii) entities in which the operator’s spouse owns directly or indirectly greater than 50% voting power or profits or beneficial interest, shall be attributed to the operator.

SECTION 2. This Act shall take effect immediately upon enactment.