Senate Committee Proposes Boost In Tax Credit, Airbnb Tax

BOSTON (AP) — Massachusetts Senate leaders are seeking another increase in the state's earned income tax credit and a requirement that online marketplaces like Airbnb charge guests the same taxes as hotels and motels.

The Senate Ways and Means Committee on Tuesday added those proposals to an economic development bill that is scheduled for debate this week.

Massachusetts raised the earned income tax credit for low-income working families from 15 to 23 percent of the federal tax credit on Jan. 1. The Senate plan calls for a further boost to 28 percent of the federal credit.

The bill would also require that people who stay in transient accommodations, such as San Francisco-based Airbnb, pay the same 5.7 percent room occupancy tax as hotel and motel guests, plus any local-option room taxes.