Wyoming vacation rental tax guide

With a bounty of popular destinations including Yellowstone National Park, Grand Teton National Park, Grand Targhee Resort, and Jackson, the Equality State offers ample opportunity for short-term rental (STR) businesses.

But these opportunities come with tax obligations. Like hotel stays, STRs in Wyoming 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 STR 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 Wyoming lodging tax laws at the state level. 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 Wyoming tax laws.

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 Wyoming?

Lodging services, defined as overnight lodging accommodations for less than 30 continuous days, are subject to Wyoming lodging taxes.

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

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 Wyoming 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 Wyoming 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 Wyoming 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.

Before you can begin collecting taxes on your STR in Wyoming, you’re required to register with the Wyoming Department of Revenue. You can register online to receive a sales tax license as well as instructions on filing your lodging taxes.

If all your STR transactions go through an STR marketplace such as Airbnb or Vrbo that collects taxes for you, you’re not required to register with the state or collect 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 taxes apply to Wyoming short-term rentals?

In Wyoming, 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 Wyoming address.

What charges are taxable?

In Wyoming, the total price paid by the guest in order to use an STR is subject to sales and lodging taxes. This includes items such as cleaning fees, pet fees, resort fees, extra person fees, no-show fees, etc., as well as charges for extra services, such as laundry services or meals. Cancellation fees are not taxable, but early arrival and late departure fees are. Extra fees charged for rentable items such as rollaway beds or cribs that are stated separately from the accommodation price are only subject to sales tax, not lodging tax. Fees for pay-per-view movies or Wi-Fi are not subject to sales tax if they’re itemized on the invoice.

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

In Wyoming, STR “marketplace facilitators” such as Airbnb or Vrbo are required to collect lodging taxes on behalf of their listings. If all your Wyoming transactions go through a marketplace that collects taxes for you, you’re not required to register with the state or collect lodging 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 lodging tax compliance.

Are guests ever exempt from taxes?

There are situations in which you aren’t required to collect lodging taxes in Wyoming. For example, a guest who rents for a long term rather than a short term is exempt from lodging taxes. In Wyoming, purchases of accommodations by federal, state, or local government entities, schools, religious or charitable organizations, or foreign diplomats may be exempt from short-term lodging taxes. Proper documentation is required.

After you’ve collected taxes from your guests, it’s time to file your tax returns with the Wyoming Department of Revenue. In Wyoming, you can file returns and pay taxes online. The Wyoming Department of Revenue 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 Wyoming Department of Revenue, 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 ith the Wyoming Department of Revenue?

Yes. STR operators registered with the Wyoming Department of Revenue are required to file returns each assigned filing period, regardless of whether you had STR income or collected 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 Wyoming 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 Wyoming tax laws. Take the time to review your legal responsibility (with a tax professional, if necessary) and understand the risks.

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