West Virginia vacation rental tax guide

With a bounty of popular destinations including Charleston, Harpers Ferry, and the New River Gorge, the Mountain State offers ample opportunity for short-term rental (STR) businesses.

But these opportunities come with tax obligations. Like hotel stays, STRs in West Virginia are subject to lodging taxes. Failure to comply with state and local tax laws can result in fines and penalties. Tax jurisdictions are increasingly making tax compliance a priority, 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 West Virginia 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 West Virginia 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 West Virginia?

In West Virginia, rentals of STRs for less than 30 consecutive days are subject to state lodging taxes.

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

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 West Virginia 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 West Virginia 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. 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 West Virginia 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

Depending on your jurisdiction, you may also 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 tax, which you’ll add to your guest’s bill when they pay for their stay.

Which lodging taxes apply to West Virginia short-term rentals?

In West Virginia, a number of different lodging taxes may apply to your STR, 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 West Virginia address.

What charges are taxable?

In West Virginia, STR rental fees are subject to state lodging taxes. This includes charges such as cleaning fees, pet fees, rollaway bed fees, and extra person fees, but does not include amounts charged for local lodging taxes.

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

In West Virginia, “marketplace facilitators” such as Airbnb and Vrbo are required to collect state and local lodging taxes from guests when the rental is paid for. If all lodging taxes are collected for you through a marketplace facilitator, you don’t need to collect and remit these taxes.

If taxes aren’t being collected for you, such as when guests book directly with you rather than through a marketplace, you’re responsible for collecting and remitting lodging taxes to tax authorities.

Are guests ever exempt from lodging taxes?

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

In West Virginia, accommodations purchased by specified buyers including the United States government, the State of West Virginia, county and municipal governments of West Virginia, certain nonprofit organizations, and schools are exempt from sales taxes. Guests may be required to present exemption certificates. Local tax authorities may have different rules for exemptions from local occupancy taxes.

Filing lodging tax returns

After you’ve collected taxes from your guests, it’s time to file your tax returns with the West Virginia State Tax Department. In West Virginia, you can file returns and pay tax online. The West Virginia State Tax Department allows credit card payments, but you may be charged convenience fees.

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 West Virginia State Tax Department, 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 West Virginia State Tax Department?

Yes. STR operators registered with the West Virginia State Tax Department are required to file returns each assigned filing period, regardless of whether you had STR income or collected any lodging taxes. Such returns are commonly known as “zero dollar returns.”

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 West Virginia 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 taxes. What options do I have?

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

STR hosts in West Virginia 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 West Virginia State Tax Department. 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 West Virginia file several state and local lodging tax returns every year. For many, filing solutions such as Avalara MyLodgeTax can relieve this burden.