Clarification: Short-Term Vacation Rentals & Hotel/Motel Tax

The Dalton Mayor and Council voted to enact an ordinance amending the City’s hotel/motel tax on February 7th. After that change, the City posted information regarding the change that after review is not accurate. To clarify: the vast majority of people who are offering their property for short-term rentals through an internet marketplace are not required to obtain an occupational tax permit from the City Clerk’s Office. A previous article about the ordinance said that they were.

The change made to the hotel/motel tax on February 7th changed the definition of “innkeeper” to include those offering rooms or properties for short-term rentals through a marketplace facilitator. After the ordinance passed, there was some confusion regarding whether those who were defined as “innkeepers” would need to obtain an Occupational Tax Certificate from the City. After a review by the City Attorney, it has been determined that they do not. The only property owners who would be required to obtain the Occupational Tax Certificate would be those who also maintain an office within the City of Dalton limits to administer and operate those properties as a business.

Property owners are, however, required to collect the hotel/motel tax if they are offering a short-term rental (fewer than 30 continuous days). Those property owners offering short term rentals through an internet marketplace (ie, Airbnb, VRBO, etc. as defined by Georgia Code 48-8-2 (8) (m.3)) will likely find that the marketplace company is collecting that tax already on their behalf and remitting it to the City. However, those property owners who are offering the rentals on their own should collect and remit that tax to the City.

The ordinance passed on February 7th does require property owners who have entered into contracts with marketplace companies to rent their properties to register those properties with the City Clerk’s office. This registry information is to be kept confidential and cannot be published anywhere and is only to be kept for the purpose of administering the hotel/motel tax.