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Short-term rentals subject to Idaho sales tax

  • Sep 16, 2016 | Gail Cole

 If you rent rooms in Idaho, you must collect and remit applicable lodging taxes.

The name may be young, but the share economy itself isn’t new. It has, however, grown exponentially since widespread use of the internet, which connects sellers with buyers with astonishing ease. Indeed, it has never been easier for people in search of a ride to find a car and driver, and for people in search of a bed to find rooms for rent.

Yet just because the word “share” is involved doesn’t mean these transactions don’t exchange money. And whenever money is exchanged, tax authorities take interest.

Late last summer (2015), the Idaho State Tax Commission made it clear that short-term rentals are subject to state and applicable local taxes. This is true whether lodging is advertised in a magazine, by a sign on the door, or through online companies like Airbnb and VRBO.

A growing number of states and cities (e.g., Alabama, Connecticut, Illinois, and San Francisco) now require companies like Airbnb to collect and remit all applicable lodging taxes on behalf of their clients. Yet in many states and cities, it is the owner’s responsibility to comply with tax laws. This is the case in Idaho — a fact underscored by a recent ruling by the Idaho State Tax Commission (see Decision Nos. 1-328-246-784, 0-231-911-424, 0-941-912-064).

The simplest and most effective way to comply with lodging tax in any state is with Avalara Lodging’s end-to-end occupancy tax solutions. Learn more.

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.