Lawmakers: Let Sellers Absorb Sales-Tax Holiday

Staff reportsiBerkshires
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LENOX, Mass. — There'll be no sales tax holiday this August but lawmakers are looking at other ways to give residents a tax break.

An attempt to resurrect the 4-year-old holiday — actually a weekend — died last week in the Legislature. The state's seen a massive drop in revenue over the past year because of the economic crisis and passed new legislation to increase the sales tax by 25 percent, up to 6.25 percent from 5 percent, to help plug a billion-dollar deficit going into the new fiscal year.

About $14.9 million in sales tax was exempted last year. There was no way a tax holiday was going to occur this year. But if sellers are willing to absorb the tax cost, why not let them, say legislators.

State Rep. William "Smitty" Pignatelli, D-Lenox, was one of 50 co-sponsors last week of legislation that would allow vendors to advertise that they would pay or absorb the sales tax on purchases.

Under current law, it is illegal for vendors to advertise in this manner. Recent advertising, whether on radio, or through the print media, have been prevalent where vendors announce "We will pay your sales tax" or "Sales tax in on the house." Under Chapter 64H, Section 23 of the General Laws, a $100 fine can be assessed to the vendor for each occasion they advertise this way.


"Many vendors and business owners have approached their elected officials saying they are interested in advertising that they would be willing to pay the sales tax on purchases to entice customers which in turn would increase sales," said Pignatelli. "It shouldn't matter who pays the sales tax as long as it is paid to the commonwealth."

The legislation filed by Rep. John F. Quinn of Dartmouth would repeal Chapter 64H, Section 23. The legislation that was filed with the House Clerk also puts the responsibility on the vendors, who advertise this way, to pay the full amount of the tax due by the purchaser.

"Due to the current fiscal condition of the commonwealth, it was unfeasible to have a sales tax holiday this year," said Pignatelli. "It is our hope that this legislation will attract consumers with tax discounts on purchases that ultimately will be absorbed by the vendor."

Update: The House leadership isn't backing the bill so it's unlikely to pass in time for an August sales weekend.
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Lanesborough Planners Bring STR, ADU, Signage Bylaws for Town Vote

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — The Planning Board held a public hearing on the much anticipated bylaws for short-term rentals, accessory dwelling units, and signage to be presented at the annual town meeting.

For the past few months, planners have diligently been working on wordage of the new bylaws after Second Drop Farm's short-term rental was given a cease and desist because the building inspector said town bylaws don't support them.

The draft bylaw can be found on the website.

The board voted on each of the four articles and heard public comment before moving to entertain any amendments brought forward.

A lot of discussion in the STR section was around parking. Currently the drafted bylaw for parking states short-term rentals require two parking spaces, and with three or more bedrooms, require three spaces but never more than five.

There were questions about the reasons for limiting parking and how they will regulate parking renters choose to park on the lawn or the street. Planners said it is not their call, that is up to the property owner and if it is a public street that would be up to the authorities.

Some attendees called for tighter regulation to make sure neighborhoods are protected from overflow.

Lynn Terry said she lives next to one of the rented houses on Narragansett Avenue and does not feel safe with all of the cars that are parked there. She said there can be up to 10 at a time on the narrow road, and that some people have asked to use her driveway to park. She thinks limiting to five cars based on the house, is very important.

The wordage was amended to say a parking space for each bedroom of the house.

Rich Cohen brought up how his own STR at the Old Stone School helps bring in money and helps to preserve the historic landmark. He told the board he liked what they did and wants to see it pass at town meeting, knowing it might be revised later on.

He said the bylaws now should not be a "one size fits all" but may need to be adjusted to help protect neighborhoods and also preserve places like his.

After asking the audience of fewer than 20 people, the board decided to amend the amount of time an short-term rental can be reserved to 180 days total a year in a residential zone, and 365 days a year in every other zone. This was in the hopes the bylaw will be passed and help to deter companies from buying up properties to run STRs as well as protecting the neighborhood character and stability.

They also capped the stay limit of a guest to 31 days.

Cohen also asked them to add "if applicable" to the Certificate of Inspection rule as the state's rules might change and it can help stop confusion if they have incorrect requirement that the state doesn't need.

The ADU portion did not have much public comment but there were some minor amendments because of notes from KP Law, the town counsel.

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