Nov 2010 10

Business License Required for Short-term Property Rentals

Mountain towns in Utah are now preparing for the ski season. In order to avoid losing sales tax money, some towns are considering requiring a business license for short-term property rentals. Properties rented for less than thirty consecutive days are considered short-term property rentals. By asking short-term property rentals owners to apply for a business license, towns will be able to keep track of owners of these businesses and see how many of them are operating legitimately. Towns will also be able to see if such businesses are conducted on properties that are not zoned for business. Many towns have not yet decided what the business license will be, but they are trying to make it fair for them and for business owners too.

Adriana Dinu, Business License Research Analyst, Corporation Service Company

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