Avalara MyLodgeTax > Blog > State and Local News > Henderson, Nevada, passes law allowing short-term rentals

Henderson, Nevada, passes law allowing short-term rentals

  • Aug 27, 2019 | Jennifer Sokolowsky

Henderson, Nevada

The City Council of Henderson, Nevada, has voted to legalize short-term rentals, bucking the trend in Southern Nevada of placing tighter restrictions on vacation rentals or banning them altogether.

Late last year, for example, the Las Vegas City Council approved new rules for short-term rentals, including banning new permits for vacation rentals not occupied by their owners.

In Henderson, the new law requires short-term rental operators to follow a number of rules. Hosts must:

  • Own the property they rent out
  • Register for a short-term rental permit, pay an $820 registration fee, and post the registration number on all advertisements and within the rental
  • Designate a contact available 24 hours a day, seven days a week to respond to complaints within 45 minutes, and send designated contact information to neighbors
  • Require minimum two-night stays
  • Carry $500,000 in liability insurance
  • Abide by noise regulations, including installing noise-monitoring devices and keeping records of noise levels
  • Complete a short-term rental certification
  • Observe occupancy limits

Short-term rentals are prohibited in apartment buildings, and they may take up no more than 25 percent of buildings that allow individually owned condos. Special events such as weddings are not allowed in short-term rental properties.

Henderson plans to hire a consultant to identify short-term rentals that are currently operating and notify them of the new law. The law goes into effect October 14, with a 30-day grace period. The city also aims to establish a 24/7 hotline for vacation rental complaints. Fines for operating short-term rentals without a permit start at $500 per day.

Henderson short-term rental operators are also required to collect transient lodging taxes — a combination of city, county, and state taxes — from guests and pay the tax to the city.

While Airbnb collects lodging taxes on behalf of its hosts in other jurisdictions in Nevada, it does not do so in Henderson. Vrbo also does not collect taxes for hosts in Henderson, so operators are responsible for collecting taxes and filing lodging tax returns on their own.

If you have tax questions related to Henderson vacation rental properties, drop us a line and we’ll get back to you with answers. For more on short-term lodging taxes in Nevada, see our state Vacation Rental Tax Guide.

Clark County makes it easier to collect short-term rental fines

Meanwhile, commissioners in Clark County, Nevada, have passed an ordinance that will make it easier for the county to fine homeowners who violate short-term rental rules. In an effort to fight a glut of short-term rental “party houses,” fines will now be added to property tax bills, starting shortly after Labor Day.

Short-term rentals are illegal in the unincorporated county, punishable by a $1,000-per-day fine. Fines are levied once code enforcement determines that a house is operating as a vacation rental.

In the past, fines for illegal short-term rentals were levied as a civil penalty, with a lien placed on properties in violation. However, property owners could simply leave the lien on the property and avoid paying the fine for years. So far in 2019, the county has issued 256 fines, collecting $686,500.

The new law also eliminates the option for homeowners to send a rehabilitation plan to the county, which caused delays in closing short-term rental operations. Now the county will send violators a deadline to cease operations.

Lodging tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Jennifer Sokolowsky
Avalara Author Jennifer Sokolowsky
Jennifer Sokolowsky writes about tax, legal, and tech topics. She has an extensive international background in journalism and marketing, including work with The Seattle Times, The Prague Post, Avvo, and Marriott.