Homeowners who rent out rooms, homes for temporary lodging must charge tax

BOISE, IDAHO – August 13, 2015 – (RealEstateRama) — As more homeowners rent out their homes or rooms in their homes to the public for temporary lodging, the Idaho State Tax Commission is reminding them that they need to charge tax on the accommodations.

Idaho’s sales tax (6 percent) and the state travel and convention tax (2 percent) apply to any sleeping accommodations rented for stays of 30 days or less. This includes the rental of a vacation home, cabin, lodge, condominium, townhouse, room in a private residence, or any other structure.

“If you provide temporary lodging to the public for a fee, you must collect the sales tax and the travel and convention tax,” said Randy Tilley, Audit Division administrator for the Tax Commission. “The taxes apply whether you’re a hotel chain, a bed and breakfast, or a private homeowner.”

Some Idaho resort cities and auditorium districts may also add a local tax on sleeping accommodations. For example, the Greater Boise Auditorium District tax (5 percent) applies to rooms rented within certain areas of Boise. Other cities may add a local option tax for room rentals.

Tilley said lodging providers can apply for permits to collect the state sales tax, travel and convention tax, and the Greater Boise Auditorium District tax by completing the online Idaho Business Registration application available through business.idaho.gov. They can also visit tax.idaho.gov to find a list of cities and auditorium districts that may also require a local tax permit.

“As more people open their homes to paying guests, we want to make sure they’re aware of their tax obligations,” said Tilley.

For more information about lodging taxes, visit tax.idaho.gov or call the Tax Commission at 334-7660 in the Boise area or toll-free at (800) 972-7660.