Homeowners Who Provide Temporary Lodging Must Charge Tax
Air B&B and similar websites have made it easy for homeowners to rent a room, cabin or another temporary lodging to the public. However, a homeowner cannot just open their doors without first registering as a business with the Idaho Secretary of State’s office and securing required permits. See short-term lodging for information about how to properly establish a temporary lodging facility. The IRS website contains Federal tax reporting information for temporary rentals.
Also check with your local city clerk’s office to find out if you need a local business license, a home occupation permit or something more. Some cities impose additional requirements, including such things as parking and the implementation of an emergency evacuation plan. Requirements vary by city.
If a lodger remains more than 30 continuous days in the same room or space, taxes do not apply. A recently enacted state law exempts temporary lodging facilities from the necessity to collect local and county sales tax, but state sales and lodging taxes must be collected and a business name must be registered.
As of January 1, 2018 short-term rental marketplaces (Airbnb, VRBO, etc.) are required to register with the state and collect applicable taxes. If the marketplace fails to register, the property owner is responsible for collecting and remitting taxes.
Volkswagen Diesel Settlement Opportunities
Idaho received several million dollars in the 2017 Volkswagen diesel settlement. The funds will be distributed to Idaho businesses and communities to fund special projects related to clean air. Over $2 million will go to businesses located within a half mile of major highways for the implementation of electric vehicle charging stations. For information on how your business might apply visit the Electric Vehicle page on the Department of Environmental Quality (DEQ) website.
Idaho Workers Must Submit a New W-4
Beginning January 1, 2019 anyone working in Idaho who receives a W-2 must submit a new W-4 withholding form to their employer. See https://tax.idaho.gov/forms/EFO00307_01-07-2019.pdf. The requirement aligns Idaho withholding with Federal requirements.