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Vermont: Tax May Apply to Short Term Lodging

  • Nov 11, 2014 | Gail Cole

 Renting rooms from time to time? Vemont lodging taxes may apply.

The growth of Airbnb and similar internet businesses has made it relatively simple for people to earn extra cash by periodically renting out rooms in their homes. Although these transactions initially avoided the attention of most tax authorities, they are increasingly coming under scrutiny and found liable for lodging taxes. Thus was the case in San Francisco, where short term rentals are now legal, regulated, and subject to tax. And it is the case in Vermont.

Just in time for the ski season, the Vermont Department of Taxation has published a fact sheet explaining the application of the 9% Vermont Meals and Rooms Tax to short term rentals. It reminds that while you “may view your venture as small scale compared to a bed and breakfast or inn,… in the eyes of the law, you may indeed be subject to the same taxes as any other business….”

The Vermont Meals and Rooms Tax applies to “sleeping accommodations offered to the public for a consideration on premises operated by a private person, entity, institution, or organization… if those rentals total fifteen (15) or more days in any one calendar year.” Sleeping accommodations include:

  • A house or room(s) in a house
  • A cabin, cottage, condominium or ski lodge
  • A barn, bunkhouse, tree house, camper, or tent

Different rules apply when lodging is rented to the same person for 30 or more consecutive days.

Sales tax applies when any sales of tangible personal property are made, even items like homemade candles or soap. Use tax applies to items purchased without sales tax for use in your business (such as towels or bedding purchased in neighboring, tax-free New Hampshire).

Focus on your business, not your sales tax obligations. Learn more.

photo credit: musseyrobert via photopin cc

Sales 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.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.