Short-Term Rental Tax Policy

Model Bill Info
Bill Title	Short-Term Rental Tax Policy
Date Introduced	July 25, 2024
Type	Model Policy
Status	Draft
Task Forces	Health and Human Services
Keywords	Housing and Land Use; Local Issues; Tax Reform

Short-Term Rental Tax Policy

Definitions:

“Booking service” mean a person or entity who, directly or indirectly:

(a) provides one or more online, computer or application-based platforms that individually or collectively can be used to:

(i) list or advertise offers for short-term rentals, and

(ii) either accept such offers, or reserve or pay for such rentals; and

(b) charges, collects, or receives a fee for the use of such a platform or for provision of any service in connection with a short-term rental.

“Short-term rental” means an entire dwelling unit, or a room, group of rooms, other living or sleeping space, or any other space within a dwelling, made available for rent by guests for less than thirty consecutive days, where the unit is offered for tourist or transient use by the short-term rental host.

“Short-term rental host” means a person or entity in valid legal possession of a short-term rental unit who rents such unit to guests.

Tax Compliance

Short-term rentals are subject to all state, county, and municipal hotel and lodging taxes.

The short-term rental host shall be responsible for collecting and remitting all taxes, however nothing shall prevent a booking service from collecting and remitting all taxes on behalf of the short-term rental host.

Nothing shall prevent a state, county, or municipality from requiring a short-term rental host to obtain a business permit to operate the short-term rental.