Hotels, Motels and Short-Term Rentals
This guide explains Idaho sales and use, Travel and Convention, and auditorium district tax laws for hotels, motels and other businesses that provide lodging in Idaho. It describes:
- How to charge your customers tax
- When to pay tax on goods you buy to operate your business
- How owners of short-term rentals and vacation rentals comply with these laws
Businesses that provide accommodations for a fee must charge sales tax when renting out lodging for 30 days or less. "Providing accommodations" means renting one or more temporary places to use or occupy.
Businesses that provide accommodations to the public include:
- Bed and breakfasts
- Campgrounds and RV parks*
- Vacation homes*
- Private residences*
*Including individuals who rent their home or property, such as a field, for money or barter
This guide refers to these businesses as "lodging providers."
These taxes only apply when you provide a rental for 30 days or less.
Taxes you forward to the Tax Commission
You might need to charge one or more of these taxes:
- Idaho sales tax when you provide sleeping rooms and nonsleeping rooms.
- Travel and Convention tax when you provide sleeping rooms.
- An auditorium district tax when you provide sleeping and nonsleeping rooms within an auditorium district's boundaries, except campground charges.
This chart shows which taxes are due for specific lodging types:
|Accommodation Type||Idaho Sales Tax||Travel & Convention Tax||Auditorium District Tax|
|Sleeping room at a hotel, motel or resort||Taxable||Taxable||Taxable|
|Meeting room at any lodging provider||Taxable||Not taxable||Taxable|
|Bed & Breakfast||Taxable||Taxable||Taxable|
|Overnight spaces in campgrounds or RV parks that an Idaho government agency owns or operates||Taxable||Not taxable||Not taxable|
|Overnight spaces in campgrounds or RV parks that any other provider operates (other than the federal government)||Taxable||Taxable||Not taxable|
|Day-use spaces in any campground||Taxable||Not taxable||Not taxable|
Other charges and amenities
The fee to rent lodging can include additional property and services.
This list of common additional charges for property and services shows the taxes you must charge for each. You forward all of these taxes to the Tax Commission.
Taxes local governments collect
You might need to charge local taxes and forward them to the local governments that administer them. See "Local Sales Tax" for more information.
Loyalty and rewards programs
You might need to charge customers tax on the value of a free room if you have a loyalty or rewards program that gives them free nights. The "value" is the amount the customer would have paid for the room.
Charge room taxes* on the value of the free room if both of these are true:
- A third party administers your rewards program.
- Customers can pay for nights with points earned through credit card purchases, by buying points directly from the third party, or by other means.
Don't charge room taxes on the free night if both of these are true:
- You administer your own rewards program.
- You can clearly document that the customer received a free night of lodging as a reward for staying "x" number of nights.
Also, don't charge room taxes if the free night applies to a stay that qualifies for an exemption (e.g., it's part of a continuous stay longer than 30 days). However, you must document the stay as an exemption.
* "Room taxes" include sales tax, travel and convention tax, and any auditorium district tax that applies to your area.