Clarification on Dalton Short Term Rentals and Hotel/Motel Tax |
Dalton’s mayor and council voted to enact an ordinance changing the town’s hotel/motel tax on February 7. After this change, the city released information regarding the change which upon review is not accurate. To clarify: the vast majority of people who offer their property for short-term rental via a market place on the Internet are not required to obtain a business tax authorization from the town hall registry. A previous article on the ordinance said they were.
The February 7 hotel/motel tax amendment changed the definition of “innkeeper” to include those who offer rooms or properties for short-term rental through a market facilitator. After the ordinance was passed, there was some confusion about whether those who were defined as “innkeepers” were required to obtain a business tax certificate from the city. After review by the city attorney, it was determined not to. The only property owners who would be required to obtain the business tax certificate would be those who also maintain an office within the city limits of Dalton to administer and operate those properties as a business.
Owners are, however, required to collect hotel/motel tax if they offer a short-term rental (less than 30 continuous days). Property owners offering short-term rentals through an internet marketplace (i.e. Airbnb, VRBO, etc. as defined by Georgia Code 48-8-2(8)(m.3)) will find probably the market society collects this tax. already in their name and handing it over to the city. However, property owners who offer the rentals themselves must collect and remit this tax to the city.
The ordinance passed Feb. 7 requires landlords who have entered into contracts with market companies to rent out their properties to register those properties with the city clerk’s office. This registry information is to be kept confidential and may not be published anywhere and should only be retained for the purposes of hotel/motel tax administration.