BA Harris LLP

Vacation Rentals Beware

Published on Thursday, November 15, 2012

If you have a second home, maybe in McCall or Sun Valley, and occasionally rent it out on weekends, odds are you have a sales tax liability that you have not been complying with.

According to Idaho statutes a vacation rental is really no different from a hotel. Any rental for which the rental period is less than 30 days is subject to sales tax (6%), tourism and convention tax (2%), and quite possibly local taxes. It is the responsibility of the owner to collect and remit these taxes.

Because most homeowners in this situation are unaware of this sales tax responsibility the Idaho State Tax Commission has been kind enough to start a managed audit program to “educate” homeowners. If you have been contacted by the State Tax Commission please make sure we are aware of it as soon as possible.

If you work with a property management company I recommend checking with them to see if they are complying with these rules. If you would like more information on compliance or on how to collect and remit the sales tax, please do not hesitate to contact our offices.

Tyler M. Nyman, CPA

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