What will the Short-term Rental Tax revenues collected by the Town of Carbondale be used for?
The revenues derived from this short-term rental tax shall be used primarily to fund the promotion, regulation, development and protection of affordable and attainable housing, projects and programs, including capital expenditures.
When do I need to start collecting Short-term Rental Tax?
Carbondale voters passed Ballot Issue 2A at the election on November 8, 2022. This 6% short-term rental tax to effect on January 1, 2023. However, the first time the tax will be remitted to the Town of Carbondale is for April, which is due to the Town on May 20. All taxes collected between January 1 – April 30 should be remitted on the first Short-term rental tax form.
How much is the short-term rental tax?
The tax is 6% of the short-term rental, inclusive of all service charges and fees. This tax is in addition to the 2% lodging tax, which is filed on a separate tax form. This 6% percent tax is also in addition to and does NOT replace the sales tax of three and one half percent (3.5%) on lodging services.
An online company, such as AirBNB, HomeAway, or Avalara manages my bookings. Have they been notified of this tax and are they collecting it?
Be sure to check with the company you use to assure that the 6% tax is being collected.
Some of my clients have prebooked the short-term rental that have not been charged the short-term rental tax. How is that handled?
The Town is not requiring short-term rentals to go back to clients who have booked prior to January 1 when the 6% tax was not included. All bookings April 1 and beyond will be required to pay the tax, regardless of whether the 6% tax was charged to the customer.
When are my taxes due?
Tax returns are due on the 20th of the month following the reporting period. If the 20th falls on a holiday or a weekend, the due date is the next business day. Paper returns must be postmarked on or before the due date to be considered timely. However, the first time the tax will be remitted to the Town of Carbondale is for April, which is due to the Town on May 20. All taxes collected between January 1 – April 30 should be remitted on the first Short-term rental tax form.
How often do I report/remit sales taxes?
If $300 or more in tax will be collected each month, returns must be filed monthly.
If $10.01 to $299.99 in tax will be collected each month, a quarterly filing basis will be granted.
An annual filing status will be granted, if monthly tax is $10 or less.
If I have no tax liability, do I still need to file a tax return?
Yes, a return must always be filed even if there is no tax due. If a business makes zero sales and collects zero taxes, they MUST still file a zero-ax return to avoid additional fees and penalties. There is a $25 non-filer charge for each required return not filed.
What happens if I do not file a return?
There is a $25 non-filer charge for each required return not filed.
How do I apply for a Short-term Rental Tax license?
You would apply for a short-term rental tax license by contacting the Town Clerk at 970-510-1206 or email@example.com.
What happens if I do not file on time?
Fees, penalties, and interest will apply. There is a $10 late filer fee, a 10% penalty will be assessed on delinquent taxes, and an interest rate of 1.5% per month will also be charged. The vendor fee is not allowed.
Where do I file tax returns online?
File returns and remit sales tax payments conveniently online click the following link: File Sales & Lodging Tax Returns Online. For technical support contact MUNIRevs support (888) 751-1911. NOTE: The return will be ready effective April 1, and short-term rentals that are currently licensed with the Town will be receiving more information shortly.
Is a postmark of the 20th acceptable as proof of the mailing date?
Yes, but be careful to make sure that the post office has the proper postmark if taxes are mailed on the 20th. To avoid late fees it is best to file tax returns conveniently online.
What is the definition of a "short-term rental"?
A short-term rental is any lodging that is for a time period less than thirty consecutive days. No short-term rentals are exempted from this tax.