Missouri vacation rental tax guide

With a bounty of popular destinations including St. Louis, Branson, and Lake of the Ozarks, the Show-Me State offers ample opportunity for short-term rental (STR) businesses.

But these opportunities come with tax obligations. Like hotel stays, STRs in Missouri are subject to lodging taxes. Failure to comply with state and local tax laws can result in fines and interest penalties, so it’s important to address compliance before tax authorities address it for you.

Avalara MyLodgeTax put together this guide to help you comply with Missouri lodging tax laws at the state level. Local jurisdictions such as cities or counties may have their own lodging tax rules. For more information on the tax rates and jurisdictions that apply to your rental’s specific location, use our lodging tax lookup tool.

No lodging tax guide is a substitute for professional tax advice. Consider this an asset to help you understand and prioritize your lodging tax questions and concerns. Questions pertaining to specific situations or out-of-the-ordinary conditions are best solved with a certified tax professional familiar with Missouri tax laws.

Lodging tax basics

Lodging tax is calculated as a percentage of the cost of your guest’s stay and added to the price on the bill. The guest pays the tax, but the STR operator is responsible for collecting and paying it to the proper tax authority.

What’s the definition of “short-term rental” in Missouri?

Lodging stays of up to 30 consecutive days are subject to lodging taxes in Missouri.

Who’s required to collect and file lodging taxes on short-term rentals in Missouri?

If you collect payment from short-term guests renting out a room, apartment, house, or other dwelling, you’re likely responsible for collecting, filing, and remitting lodging taxes to Missouri tax authorities.

Location is key to compliance

The location of your rental is a crucial piece of information for lodging tax compliance. Your address determines which tax jurisdictions you’re required to report to, which taxes you need to collect, and the appropriate tax rates.

Use our lodging tax lookup tool to get a rate report specific to your Missouri rental’s address. The report includes the estimated total tax rate to collect from guests, number of required registrations, number and frequency of returns per year, and minimum number of rented days to qualify as a taxable stay.

It should be noted that tax rates and the rules governing them change frequently. Please consider your tax rate report to be informative rather than authoritative.

Local short-term rental regulations

STR operators in Missouri should be aware of the local regulations that apply to them, including rules covering:

• Legality
• Permits, licenses, and registration
• Zoning
• Advertising
• Neighborhood notification
• Building and housing standards

Homeowner associations (HOAs), condominium communities, co-ops, and landlords may also have specific rules regarding vacation rentals. It’s your responsibility to be aware of STR policies that apply to your property.

Registering with tax authorities

Before you can begin collecting taxes on your STR in Missouri, you’re legally required to register with the Missouri Department of Revenue. You can register online to receive a sales tax license. You don’t have to register with the state or collect state lodging taxes if all your transactions go through a marketplace facilitator such as Airbnb or Vrbo. Depending on your jurisdiction, you may be required to register with your local tax authority and file local lodging tax returns.

Collecting lodging taxes

Once you’ve registered with tax authorities, you’re ready to start collecting lodging taxes, which you’ll add to your guest’s bill when they pay for their stay.

Which lodging taxes apply to Missouri short-term rentals?

In Missouri, a number of different lodging taxes may apply to your short-term rental, depending on your location. These can include:

Tax rates

Before you can begin collecting lodging taxes, you need to know the correct rate to charge to avoid compliance issues. Our lodging tax lookup tool can give you a rate report specific to your Missouri address.

What charges are taxable?

In Missouri, taxable accommodation charges include roll-away bed fees, additional person in room fees, no-show fees, early departure fees, pet fees, forfeited deposits, cancellation fees (if the fee is compensatory in nature), lockout fees, fax fees, telephone charges, and athletic facility fees. Nontaxable charges include fees for shuttle or transportation, parking, laundry, faxing documents, cancellation fees (minimal and noncompensatory), cleaning charges, damage fees, internet charges, return check fees, and pay-per-view charges.

What happens when my short-term rental marketplace (such as Airbnb or Vrbo) collects lodging taxes for me?

In Missouri, STR marketplaces such as Airbnb and Vrbo are considered marketplace facilitators and are required to register with the Department of Revenue and collect state-administered lodging taxes on reservations booked through them. You don’t have to register with the state or collect state lodging taxes if all your transactions go through a marketplace facilitator. If lodging taxes aren’t being collected for you, such as local taxes or taxes on sales made directly to guests, you’re responsible for collecting and remitting them to tax authorities.

Are guests ever exempt from taxes?

There are situations in which you aren’t required to collect lodging taxes in Missouri. For example, a guest who rents for a long term rather than a short term is exempt from lodging taxes.

In Missouri, purchases of accommodations by organizations including religious, charitable, and nonprofit groups, schools and institutions of higher learning, Missouri political subdivisions, and federal or state agencies may be exempt from state sales taxes.

Filing lodging tax returns

After you’ve collected taxes from your guests, it’s time to file your tax returns with the Missouri Department of Revenue. In Missouri, you can file returns and pay tax online. The Missouri Department of Revenue allows credit card payments, but you may be charged convenience fees for this type of payment.

When do I need to file my returns?

You’ll be assigned a filing frequency and due dates when you register with the tax authority. For filing with the Missouri Department of Revenue, state sales tax due dates are as follows:

I didn’t rent my property during this filing period. Am I still required to file a lodging tax return with the Missouri Department of Revenue?

Yes. STR operators registered with the Missouri Department of Revenue are required to file returns each assigned filing period, regardless of whether you had any STR income or collected lodging taxes. Such returns are commonly known as “zero dollar returns.” Local tax authorities may have their own requirements.

Are there penalties for filing taxes late?

Whether you choose to offer STRs through a marketplace like Airbnb or Vrbo, or directly to guests, you open the door to tax liability at the state and local level. As tax revenue is a major source of local funding, tax authorities are becoming more aggressive in their efforts to identify individuals and businesses violating tax laws. Failure to register with tax authorities and file lodging tax returns in Missouri on time may result in late fees, interest payments, and in extreme cases, legal action.

I’ve been offering short-term rentals without collecting lodging tax. What options do I have?

If you’re already operating an STR but not collecting lodging taxes, you may be in violation of Missouri tax laws. Take the time to review your legal responsibility (with a tax professional, if necessary) and understand the risks.

STR hosts in Missouri may be able to take advantage of a voluntary disclosure agreement (VDA). A VDA offers an opportunity for hosts to proactively disclose prior period tax liabilities in accordance with a binding agreement with the Missouri Department of Revenue. VDAs are offered to encourage cooperation with state tax laws and may result in some or all penalty and interest payments being waived.

Are there options for outsourcing lodging tax filing?

Yes. Many STR operators in Missouri file several state and local lodging tax returns every year. Filing solutions such as Avalara MyLodgeTax can relieve this burden.