SB3386 Summary: Short-Term Rental Operators' Occupation Tax Act

• Imposes a 5% tax on 94% of gross rental receipts from short-term rentals, plus an additional 1% tax on 94% of gross rental receipts, effective October 1, 2020.

• Requires short-term rental operators to obtain a business license from the Department of Revenue and display the license number on all advertisements and within the rental property.

• Mandates hosting platforms to register with the Department, collect and remit taxes on behalf of operators, maintain detailed transaction records, and submit monthly reports including operator names, addresses, rental periods, and itemized charges.

• Exempts religious organizations operating exclusively for religious purposes and long-term rentals (30+ consecutive days) from the tax.

• Allows municipalities and counties to impose local taxes on short-term rentals at rates up to 1-6%, with revenues designated for tourism promotion and convention activities.