State lodging taxes are charges that certain jurisdictions levy on short-term rentals, explains MyLodgeTax. Depending on the specific locale, "short-term" may refer to periods as brief as 30 days or as long as six months. Also known as sales, room, accommodation, occupancy, transient or hotel taxes, these charges are levied on the total revenue that property owners collect from guests, not on net income. For this reason, relevant authorities do not offer any deductions on these taxes.
States and other jurisdictions, such as county governments, require owners to register and acquire licenses for short-term rental properties, notes MyLodgeTax. Apart from defining the percentage of tax that property owners should collect from guests, these authorities also require owners to file returns monthly or quarterly. In general, statutory revenue collection agencies demand payments on the 15, 20 or 30 of the month following the tax period. Noncompliance can attract significant fines and other penalties.
As of December 2015, some of the states and territories that charge lodging taxes include Iowa, Puerto Rico, the Virgin Islands, Arizona and Hawaii, reports the National Conference of State Legislatures. Others include Vermont, Texas, New Jersey, Montana and Alabama. Some of the states that do not charge lodging taxes include Alaska, California, Indiana, New York and Wyoming. Others include North Carolina, Tennessee, Mississippi, Kansas and Colorado.