Own A Short Term Vacation Rental? You Need An Occupational Tax Permit.

UPDATE (2/18/22) - The original version of this article was incorrect. It is not necessary for most property owners using a marketplace facilitator to rent properties as short term vacation rentals to obtain an Occupational Tax Certificate. A clarification can be found here: https://www.daltonga.gov/clerk/page/clarification-short-term-vacation-rentals-hotelmotel-tax The incorrect information below has been stricken out. 

On Monday night, the City Council voted to adopt an ordinance that requires owners of short term rental properties such as those listed on Airbnb or similar services to register the business with the City and obtain an occupational tax permit. In Dalton, an occupational tax permit takes the place of a business license. Ordinance #22-01 amending the Article II of the City's code of ordinances for Hotel-Motel Tax passed by a unanimous 4-0 vote of the City Council. Mayor David Pennington typically only votes in the event of a tie. 

"Basically the ordinance says you’ve got to register that Airbnb, VRBO, whoever you’re renting that private residence with, you’ve got to register that with [the City] and then you have to get an occupational tax form," said City Clerk Bernadette Chattam. 

In the summer of 2001, the Georgia General Assembly enacted H.B. 317 which allows Georgia municipalities to levy and collect taxes upon innkeepers including those offering rooms or private residences for short term rental through companies such as Airbnb, VRBO, Expedia, etc. The change puts those businesses on equal footing with hotels and motels that were already required to pay hotel-motel taxes and to hold business licenses (or an occupational tax in the case of the City of Dalton).

"Essentially, this just puts them on an equal playing field with the hotels that had to pay these taxes all along," said City Administrator Andrew Parker. 

The City of Dalton began collecting hotel-motel taxes from those services last year. The new ordinance requires owners of short term rental properties within the City limits (anyone holding title to real estate where short term rentals take place) to register their property with the City and pay an Occupational Tax once per year. The tax is $100 per business per year, with $10 additional for each employee of the business if there are employees. More information about the Occupational Tax and the forms needed can be found here. A registration form for innkeepers can be downloaded here. 

"You come to the City Clerk’s Office, you register your Airbnb [or whatever your rental is], and get an occupational tax once a year," said Chattam. "That's all that's needed." 

The new ordinance specifies that the registration information collected on the rental properties sill only be used for administration and enforcement of the revised Article II-Hotel-Motel Tax of Dalton. It is to be kept confidential within the records of the City and will not be published or kept as a rental property registry in violation of any State laws.