PA Vacation Rental Tax Law

The 2018 Act 109 of Pennsylvania’s tax code recently went into effect. This new ordinance requires rental booking agents like Rent Like a Champion to collect existing state and local taxes (called “hotel occupancy taxes”) on behalf of homeowners using their booking service.

In Centre County, this tax totals 11% of booking fees for each rental (6% for the state, and 5% for the county).

Questions you may be thinking about in light of this change - 

How will this affect my fees?
Not at all! The proceeds you receive from the list price on your rentals will remain the same.

So… what’s changing?
As a result of this new ordinance, beginning right now the booking fees paid by the customer will be raised by just 11% to help cover the cost of these taxes.

Again, this will only be a change from the renter side of each transaction, as reflected by the “Hotel Occupancy Tax” line item they’ll see at checkout.

I still have some questions. Where can I get more information?
More information regarding this law can be found on the Pennsylvania Department of Revenue website at https://www.revenue.pa.gov.