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TSD 435
Short-Term Leases and Rentals of Real Property
TSD 435 | Short-Term Leases and Rentals of Real Property
Rev. March 2023 | West Virginia Tax Division
For more information, you can:
• Call a Taxpayer Services Representative at
(304)558-3333 or toll-free at (800) 982-8297
• Go Online to tax.wv.gov
A West Virginia New Business Registration Application, WV Bus-App, is required for each physical location in this state that a
taxpayer will lease or rent to a third party. The new business registration application is available on the Division’s website at
tax.wv.gov. The application may be led through the Business for West Virginia Website at business4.wv.gov or by ling a
signed hard copy with the Tax Commissioner.
A separate business registration certicate is needed for each location in this state from which the business engages with the
public or a segment of the public. As a result, a separate application for each business name or ofce is necessary. However,
a certicate for each rental building is not required. The determination on if a business registration certicate is needed
depends on factors such as where operational records are kept or where business operations are conducted.
West Virginia sales and use tax of 6% is due on taxable rentals. Additionally, when the rental unit is located within a
municipality that imposes a sales and use tax, that tax must also be collected. A list of municipalities who impose sales and
use taxes is posted on our website at tax.wv.gov
Short-term rentals are often booked through online marketplaces, such as AirBnB, VRBO, HomeAway or similar sites. If state
and municipal sales tax on a rental is collected by and through a marketplace facilitator, it does not need to also be collected
and remitted by the owner or manager of the unit.
Collection of State Sales and Use Taxes
Payment of Sales and Use Taxes for Purchases for Use in Business
The business must pay state and municipal sales and use taxes when it purchases tangible personal property for use or
consumption in its short-term rental business activity. Tangible personal property or items used to maintain the property are
subject to the sales and use tax, such as cleaning services, furniture, or repair and maintenance services. Only when the
short-term rental business purchases tangible personal property for resale to its customers in a transaction that is subject to
sales tax, is the purchase of those items by the short-term rental business exempt from sales and use tax as a purchase for
resale. For example, the purchase of souvenirs for resale would be exempt from use tax when purchased by the business
because the resale of the souvenirs to consumers would be subject to sales and use tax.
Business Registration Certicate
If you own short-term rental property, such as a hotel, house, apartment, cabin, campsite, condominium, room, or
time-share, any rental of a unit of that property for less than 30 consecutive days is considered taxable activity.
As such, a taxpayer is required to obtain a business registration certicate from the West Virginia Tax Division and
comply with the tax laws of this State.
Additionally, the rental may be subject to county and municipal hotel occupancy taxes
that are collected and remitted directly to the county or municipality imposing the tax. The
rate of the hotel occupancy tax may not exceed 6% of the price charged to the customer.
This publication provides general information and is not meant to be a substitute for tax laws or regulations.