Property owners who rent out the following places on a short-term basis (less than 30 consecutive days) for overnight accommodations may need to register with the department:
- time shares
- camping sites
- RV sites
Property owners must collect and pay retail sales tax and applicable lodging taxes on the rental charges. They also owe business and occupation (B&O) tax, but could qualify for the small business B&O tax credit.
Property owners may choose to use the services of a property manager or an online marketplace for booking and tax collection purposes.
The property owner may still be required to register with the department to report their rental income on an excise tax return.
The department will assume a property owner is engaged in a taxable business activity when they do any of the following:
- Advertise the property availability for overnight accommodations through online marketplaces, newspapers, or other publications.
- Hire a property manager to handle the rental of the property.
- Engage in any short-term rental contracts (less than 30 days per consumer).