The short-term rental tax compliance checklist

01Register with every tax authority

Before you can legally collect lodging tax, you have to register with each agency that levies it, often more than one. Work through:

• Register with your state Department of Revenue for the statewide tax;
• Register with the county and city where required, some states collect local taxes centrally, many do not;
• Check for a short-term rental permit or business license separate from the tax registration;
• Keep the license or permit numbers you receive, you'll need them to file.

02Know the rate you have to collect

Your combined rate is the sum of every jurisdiction that taxes the address, state, county, city, and any special districts. Confirm:

• Every authority that applies to your exact address, not just the city;
• Each one's current rate, added together for your combined total;
• What counts as taxable revenue: rent plus mandatory fees like cleaning, in most places.

03Collect the tax from guests

The tax is added on top of the stay and collected at payment. Make sure you:

• Add the correct tax to every booking, across every platform and direct reservation;
• Tell guests the tax amount up front, before they book;
• Track rent and tax as separate figures so you know exactly what you owe;
• Consider holding collected tax in a separate account so it's ready at filing time.

04File and remit on time

Each authority sets your filing frequency, monthly, quarterly, semi-annual, or annual, and its own due dates. Every period:

• Report your taxable revenue for the period on each return;
• Pay the tax owed by the due date for each jurisdiction;
• File a zero return where required, even for periods with no bookings;
• Track different frequencies and deadlines if you're registered in several places.

05Keep clean records

Good records turn an audit from a scramble into a formality. Retain, per property and period:

• Filed returns and payment confirmations for each authority;
• Booking records showing rent, fees, and tax collected;
• Registration and license documents;
• Any platform reports showing tax the marketplace collected on your behalf.

06Stay current as rules change

Compliance isn't set-and-forget. Rates, filing frequencies, and even whether a fee is taxable can change. Each period, confirm nothing has shifted for the jurisdictions you file in, and re-check whenever you add a property in a new location.

07A note on Airbnb & Vrbo

Marketplaces collect and remit some occupancy taxes where they have agreements, but coverage is patchy. A platform may collect the state tax and leave the city or county tax to you, and some states still require you to file and claim platform-collected amounts as a deduction. Treat platform collection as a partial help, not proof of compliance, and always account for direct bookings yourself.

08How Monterra helps

This checklist is a lot to run across every property and jurisdiction, period after period. Monterra is an outsourced lodging tax filing service with built-in occupancy tax automation, a modern alternative to services like Avalara MyLodgeTax, that runs the whole cycle for you:

• Registration: we identify and secure the state and local licenses each property needs;
• Rates: the correct combined rate is applied to every booking, by exact address;
• Filing & remittance: returns are filed and paid on time, including zero returns and platform deductions;
• One dashboard: every property, platform, and jurisdiction in one place with a clear compliance status.