Informational Reporting by Short-Term Rental Internet Platforms
Vermont law requires informational reporting by persons providing an internet platform for the short-term rental of property for occupancy. Providing a platform for any number of short-term rentals of properties in Vermont in a given year subjects a person to these requirements.
A “short-term rental” is a rental of sleeping accommodations that is for less than one calendar month (or less than thirty consecutive days). A rental for a calendar month or more is a rental to a permanent resident that is not subject to Vermont meals and rooms tax and does not require informational reporting by an internet platform.
A “rental for occupancy” is a rental for the right to the use or possession of a room for any purpose. It also includes the right to the use or possession of furnishings or to services and accommodations accompanying the use and possession of a room or rooms. It does not include a rental to a permanent resident, an employee when the occupancy is granted as part of remuneration for employment, or enrollment in a summer camp for kids.
For further information, please see 32 V.S.A. Chapter 225 and the Vermont Meals and Rooms Tax Regulations.
Information to Collect and Report
A person providing an internet platform for short-term rentals of property for occupancy must collect and report the following information to the Vermont Department of Taxes. Information reported will be aggregated data for any rental transaction of persons acting as operators (referred to as “Host') through their platform. Reporting is to be done annually on or before March 1 for all rental transactions that occurred in the previous twelve calendar months. Each reporting line is for a single property. If a Host has more than one rental property with rental transaction during the twelve calendar months, a separate line will be needed for EACH property having rental transactions during the reporting period.
All required data fields must be provided for every rental property that had rental transactions during the reporting calendar year. Unless marked as optional, the fields must be completed fully and accurately. Administrative inconvenience is not an acceptable reason to omit information from a report. A report that is inaccurate or incomplete may be considered an instance of failure to comply with the law.
Here is the information broken out by the data fields required for reporting.
Failure to Provide Information
A person providing an internet platform is subject to a fine of $5.00 for every instance of failure to provide the information required by the Vermont Department of Taxes. A transaction in which the information from the mandatory fields is not reported fully and accurately is considered an instance of failure subject to penalty. An internet platform should contact the Vermont Department of Taxes in advance of submitting a report, if it believes it will be impossible to provide some of the mandatory information.
To file a report, download the report template, which also includes instructions.