Notice
Guidance for Municipalities Considering Short-Term Rental Ordinances
December 1st, 2023Guidance for Municipalities Considering Short-Term Rental Ordinances
With the growth of the short-term rental industry, many municipalities across the state are grappling with how best to regulate this industry. Regulations under consideration or enacted by municipalities in Pennsylvania include ordinances requiring a short-term rental license.
One of the conditions to obtain a license is providing proof of the county hotel tax license and a copy of their Pennsylvania Sales, Use, and Hotel Occupancy Tax license. However, PSAB recently learned that the PA Department of Revenue is advising municipalities to change their short-term rental licensing practices as it relates to short-term renters using third-party booking agents. These booking platforms have the Pennsylvania Sales, Use, and Hotel Occupancy Tax license and are responsible for paying the taxes.
To read the full advisory from the PA Department of Revenue, please click here. PSAB suggests borough officials review the advisory with their solicitor if you currently or will be regulating short-term rentals.
