Similar to a hotel room, your vacation rental is subject to state, county and local taxes. What the tax is called – sales, lodger’s, hotel, use, tourist or transient occupancy tax, for example – and what you must charge, if anything, varies by location.
Here are the steps to licensing and collecting taxes for your vacation rental:
Confirm What City Your Rental Home Is In
Even if it seems obvious, it’s a good idea to double check what city your rental home falls in and if this is in the incorporated or unincorporated part of the town. You can contact your city’s planning and zoning office to find out. From there, you’ll be able to proceed with determining the relevant city, county and state licensing and tax laws. Continue Reading…