From the Vermont Department of Taxes – Many Vermonters and those living outside Vermont who own property in the state are renting their spare rooms or other types of lodging to visitors. They find it is a way to make a little extra money to supplement their incomes, but in many cases, the rent charged to the lodger is subject to the Vermont Rooms and Meals Tax and should be collected and remitted to the Vermont Department of Taxes. If you are renting a room in your home or some other form of lodging to guests, you should be aware of your tax liabilities.
Should You Collect the Meals and Rooms Tax?
You may view your venture as small scale compared to a larger bed and breakfast or inn. However, Vermont tax law requires that you collect and remit tax, just like any other business operating in Vermont.
Vermont law states that sleeping accommodations offered to the public for a consideration on premises operated by a private person, entity, institution, or organization is subject to the Vermont Meals and Rooms Tax if those rentals total fifteen (15) or more days in any one calendar year. Please note: If you rent your room or other type of lodging to the same person for 30 or more consecutive days, the person is then considered to be a permanent resident, and different rules apply.
The following is a noninclusive list of types of lodging rented or owned by the host which fall under the provisions of the law:
• A house or room(s) in a house
• Cabin, cottage, condominium, ski lodge
• Barn, bunkhouse, tree house, camper, tent
To view the full fact sheet published by the Vermont Department of Taxes please click here.