Thinking about turning your Sun Valley home into a nightly rental, but unsure how taxes, rates, and permits really work? You are not alone. Between Idaho sales tax, possible Local Option Taxes, and platform rules, it can feel complicated fast. In this guide, you will get a clear overview of what typically applies in Blaine County, how major platforms usually handle taxes, what to register for, and how to budget for net income. Let’s dive in.
Local Option Tax basics
Local Option Tax, often called LOT, is a voter‑adopted local sales tax that some Idaho communities use in addition to state sales tax. Resort areas frequently add lodging or tourism assessments on short‑term stays. Definitions and rates vary by jurisdiction, and they can change. You should confirm the current structure and percentage with the Idaho State Tax Commission and local governments before you list your property.
What taxes usually apply
- Idaho state sales tax on short‑term lodging, typically for stays under 30 days. Confirm the current threshold and rate with the Idaho State Tax Commission.
- Municipal or county LOT or lodging taxes. In resort towns like Sun Valley, Ketchum, and Hailey, there may be local add‑ons. Verify what is currently in effect, how it applies, and the percentage.
- Special assessments or tourism district fees. Some resort areas add extra assessments on top of sales and LOT. Confirm whether any apply to your address.
What charges are taxable
Many jurisdictions treat mandatory cleaning fees as taxable because they are part of the lodging price. Optional add‑ons can be treated differently. Damage deposits are often excluded if refundable. Since rules differ, confirm with the Idaho State Tax Commission and your local treasurer which fees are taxable in your case.
Verify total tax for your listing
Your goal is to understand the total effective tax on a short‑term stay, which is typically state sales tax plus any Local Option Tax plus any city lodging or tourism assessment. Here is a simple way to verify the exact mix for your address:
- Contact the Idaho State Tax Commission to confirm how short‑term lodging is defined, the current state sales tax rate, and whether cleaning or other fees are taxable.
- Call the Blaine County treasurer to ask whether the county has a LOT or lodging tax that applies to short‑term rentals, and how it is administered.
- Call the City of Sun Valley finance or treasurer office. If your property is in Ketchum or Hailey, call those city finance departments as well. Ask about any current LOT, hotel or lodging tax, registration requirements, and filing frequency.
- Request written confirmation of rates, filing schedules, and whether a license or registration number must be displayed on your listing.
- Note whether platforms collect and remit any of these taxes on your behalf. You are still responsible for any tax not collected by the platform.
Registration and permits
You will typically complete both state and local steps before hosting your first guest.
State-level setup
- Register with the Idaho State Tax Commission for a sales tax account if your stays meet the lodging definition. This allows you to report taxable receipts and remit state sales tax when required.
- Ask whether cleaning fees, pet fees, and other charges are taxable so you can set up your listing and invoices correctly.
County and city steps
- Determine whether a local business license, short‑term rental registration, or lodging account number is required for your specific city or county jurisdiction. Many resort communities require you to register and display a local registration number on your listing.
- Register for any local lodging or tourism tax account with the county or city finance department. Confirm filing frequency and payment methods.
- Check for safety, zoning, parking, and occupancy rules. Some communities require inspections or impose occupancy limits.
If you use a manager
If you hire a local property manager, confirm who is responsible for tax registration, collection, and remittance. Make sure the responsibilities are spelled out in your management agreement. Owners are typically liable for any unremitted taxes.
How platforms handle taxes
Marketplace platforms often collect and remit some taxes, but not always all of them. Practices vary by location and by tax type.
- Airbnb. In many places, Airbnb collects and remits certain lodging and tourism taxes for hosts. The exact list of taxes and jurisdictions varies. Check your host dashboard and tax settings for each listing.
- Vrbo. Vrbo may collect and remit in some jurisdictions and not in others. Review the Owner Dashboard to see which taxes apply to your listing.
- Booking.com. Handling varies by location. Confirm whether taxes are included at booking or must be collected and remitted by you.
Even when a platform remits some taxes, you should still:
- Confirm which taxes the platform is collecting and for which dates.
- Download monthly and annual tax reports showing gross receipts and taxes collected.
- Keep documentation to reconcile your own returns and respond to any local inquiries.
- Register locally if required, even if the platform remits.
Practical verification steps
- Check each platform’s tax policy for your listing’s address in Sun Valley or neighboring cities.
- Download platform tax remittance reports and compare them to your own records.
- Contact your city or county finance office to confirm what has been remitted on your account and whether additional registration or filing is required.
- Keep receipts for all bookings, fees, and taxes to support filings and audits.
Budget your nightly rental
The most reliable forecast starts with realistic Sun Valley seasonality and builds out operating expenses and taxes. Use the framework below as a starting point.
Revenue assumptions
Sun Valley demand is highly seasonal with strong winter and a busy summer event calendar. Estimate by month rather than taking a peak month and annualizing. Set an average nightly rate for each season and estimate occupancy by month to reflect real swings. Decide whether to charge a cleaning fee and whether that will be included in your revenue modeling.
Typical cost ranges
- Platform fees: About 3 percent for a standard host fee up to 15 percent or more depending on platform and fee model.
- Property management: Typically 15 to 35 percent of gross rental revenue depending on service level.
- Cleaning and turnover: About 50 to 300 dollars or more per stay based on size and scope. Multiply by expected turnovers.
- Utilities and services: Electricity, gas, water, internet, and cable. Expect higher heating costs in winter.
- Insurance: A landlord or short‑term rental endorsement may add to your premium. Request local quotes.
- Repairs and maintenance: Budget 5 to 10 percent of gross revenue or a set annual reserve.
- Property taxes and HOA dues: Annual fixed costs. Confirm if your HOA has rules or fees for short‑term rentals.
- Marketing and supplies: Consumables, photography, and restocking.
- Capital reserves: Furniture refresh, appliances, and unexpected projects on multi‑year cycles.
- Professional services: Accounting, legal, licensing renewals, and business licenses.
- Vacancy and seasonality: Build in a realistic allowance, often 20 to 50 percent depending on your monthly plan.
- Lodging and local taxes: Include the combined state and local rate. If the platform remits, treat it as withheld from guest receipts and reconcile.
Simple calculation template
- Gross revenue = average nightly rate × nights booked in the year.
- Platform fees = gross revenue × platform fee percent.
- Taxes collected = gross revenue × combined applicable tax rate. If the platform remits, reflect this as taxes withheld and reconcile to reports.
- Net operating revenue = gross revenue − platform fees − taxes collected.
- Operating expenses = utilities + cleaning + maintenance + insurance + HOA + management fees + marketing + supplies.
- Net operating income before debt service = net operating revenue − operating expenses.
- Debt service = annual mortgage payments, if applicable.
- Net cash flow = net operating income − debt service − capital reserves.
Compliance timeline
- Before listing: Register with the state, secure any local lodging or STR registration, and complete required safety steps. Confirm what must be posted on your listing.
- Monthly or quarterly: Track nights booked, gross receipts, taxable fees, and platform remittances. File returns with the state and any local authority according to the required schedule.
- Annually: Reconcile platform reports, renew any permits, and share records with your tax professional. Adjust your pricing and budget for the next year based on actuals.
Common pitfalls to avoid
- Assuming platforms collect every tax that applies. They might collect state sales tax but not a specific city assessment.
- Missing that cleaning or other mandatory fees may be taxable. Confirm what counts as a taxable charge.
- Skipping local registration. Some municipalities require a STR license or lodging account even if a platform remits.
- Ignoring occupancy or parking rules. These can affect your listing details and guest communications.
- Underestimating seasonality. Use a monthly model to avoid overestimating annual income.
How a local advisor helps
Choosing the right property and plan matters as much as getting the taxes right. You can lean on a local guide to understand neighborhood dynamics, HOA rules that affect nightly rentals, realistic seasonal demand, and the operating details that drive net income. With boutique, concierge‑level support, you can align your rental strategy with your lifestyle and financial goals, while staying organized on registrations, safety steps, and key timelines. When you are ready to explore properties that fit your plan or to fine‑tune a pricing and staging strategy, I am here to help.
Ready to map out your Sun Valley rental strategy and keep compliance simple? Be the First to See New Listings with Corey on the Go.
FAQs
Are Sun Valley nightly rentals taxed, and how much?
- Short‑term lodging is usually subject to Idaho sales tax and may also be subject to local LOT and lodging taxes. Combined rates vary by jurisdiction and can change. Confirm current rates with the Idaho State Tax Commission and your city or county finance office.
Which registrations do I need before hosting in Sun Valley?
- Typically a state sales tax account and any required city or county lodging or short‑term rental registration. Some cities require a posted registration number on your listing. Verify requirements with your local treasurer or finance office.
Do Airbnb or Vrbo collect Sun Valley lodging taxes for me?
- Maybe. Platforms often collect certain taxes in some jurisdictions. You should confirm the exact taxes and dates covered in your platform dashboard, download remittance reports, and register locally if required.
Are cleaning fees taxable on nightly rentals?
- Mandatory cleaning fees are often treated as taxable lodging charges, but rules vary. Confirm with the Idaho State Tax Commission and your city or county finance office.
What happens if I do not remit required taxes?
- Late filing or underpayment can result in interest and penalties, and local permits may be at risk. Substantial underreporting can trigger audits. Keep documentation and reconcile platform reports.
How should I estimate occupancy in Sun Valley?
- Plan by month to reflect real seasonality. Use conservative occupancy in shoulder seasons and build a vacancy allowance. Adjust your pricing and forecast annually based on actual results.
Who is liable if a platform fails to remit all taxes?
- The property owner is typically responsible for any taxes that were not remitted. Keep platform remittance evidence and reconcile with state and local filings to avoid issues.
