Room Occupancy Tax Raised to 6 Percent to Help Offset Inflationary Pressures
Key Points
- Local room occupancy tax increased from 4% to 6% effective January 1, 2027.
- The move is expected to generate $134,000 to help close the gap in the operating budget.
- Scituate joins neighboring towns like Hull and Marshfield in adopting the 6% rate.
- Increase is part of a strategy to avoid a town-wide tax override.
Scituate voters approved Article 32, raising the local option room occupancy tax from 4 percent to 6 percent. Select Board member Andrew Goodrich framed the increase as a necessary response to the failure of state aid to keep pace with inflation. Our elected officials at the State House have failed us,
Goodrich said. They passed the buck to local officials to ask citizens to raise taxes.
The increase is projected to generate approximately $134,000 in annual revenue, which officials say is critical to funding the operating budget and avoiding a Proposition 2 ½ override.
During the discussion, Town Administrator Jim Boudreau noted that room occupancy receipts have grown significantly since the state began taxing short-term rentals, rising from roughly $180,000 in FY22 to nearly $300,000 in FY24. Resident Scott Greenbaum questioned the necessity of the hike, asking if there was a real reason
beyond a general desire for more money. Conversely, resident and Airbnb host Steve Buckler spoke in favor of the tax, stating that in his years of hosting, guests have never complained about minor tax rate adjustments. Goodrich noted that neighboring towns like Hull and Marshfield have already moved to the 6 percent rate.
The new rate will take effect on January 1, 2027. This decision reflects a broader town-wide strategy to find internal efficiencies
and new revenue streams to manage rising healthcare premiums and infrastructure debt without increasing property taxes on residents.