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State Regulation

Are you curious about the dynamic world of short-term rentals (STR) in the scenic state of Arkansas? Get ready to dive deep into the fascinating realm of vacation rentals in Arkansas!

This article will uncover the secrets of short-term rentals, covering everything from their legal aspects to the fine details that can boost your hosting skills in Arkansas. We'll explore the essential questions every host should consider before stepping into the short-term rental business in the Natural State.

Is there a statewide definition of STR?

In Arkansas, the discussion around the regulation of short-term rentals (STRs) has been centered on Senate Bill 197, which proposes a specific definition and deregulation of STRs. This bill defines a short-term rental as a single-family home, condo unit, timeshare, or owner-occupied residential home offered for less than 30 days.

statewide registration requirement
Statewide Registration Requirement

Arkansas does not have a centralized statewide registration requirement for short-term rentals. Instead, regulations and requirements vary depending on the location within the state. This means that the rules governing short-term rentals are established at the local city or county level rather than by the state government.

What is the length of stay of STR in the state?

The definition and regulations for short-term rentals can vary significantly depending on the specific location. Generally, many cities in Arkansas define short-term rentals as lodging offered for periods of less than 30 consecutive days.

Statewide Tax Requirement

In Arkansas, short-term rentals are subject to several tax requirements. Firstly, in addition to the state and local sales or use taxes, there is a specific short-term rental tax of one percent (1%) that must be collected by the lessor on short-term rentals of tangible personal property. This is regardless of whether Arkansas gross receipts or use tax was paid by the lessor at the time of purchase.

Furthermore, short-term rentals in Arkansas, like hotel and B&B stays, are required to collect applicable taxes from guests and remit them to the appropriate authorities. This includes a 6.5% state sales tax, state tourism tax, local sales tax, and local lodging tax. The exact tax rates and the rules governing them can vary depending on the location of the rental property. It's important for hosts to use tools like the lodging tax lookup tool to determine the specific tax rates and jurisdictions applicable to their rental's location.

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Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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