Cape Cod towns want to expand room tax

BARNSTABLE, Mass.—Some Cape Cod towns want to extend the 9.7 percent hotel room tax to private homes and condominiums as a way to raise extra cash during tough financial times.

Town meeting voters in Brewster and Provincetown last month asked their state legislators to file bills expanding the tax from what it currently covers - hotels, motels and large inns - to private homes and condos.

Currently, 5.7 percent of the tax goes to the state, and 4 percent goes to the town.

Expanding the tax could bolster town coffers by as much as $500,000 annually.

Chatham, Eastham, Harwich, Orleans, Sandwich and Yarmouth have either signed on or plan to consider similar legislation at town meetings next year.

Critics say expanding the tax could drive tourists away from the Cape.