May 9, 2024
Hey there, campground owners, entrepreneurs, and family business stewards! Ever feel like figuring out sales tax on long-term rentals is akin to solving a Rubik’s Cube blindfolded? You’re not alone! But don’t worry – I’ve got your back with some tips that might just turn your tax headache into a breeze.
Meet Donna from Campground Accounting – the CPA and RV enthusiast who’s here to save the day. We often encounter perplexing questions about whether to collect sales tax on long-term renters. If you’ve ever wondered, "What if I don’t know if someone’s staying long-term until they actually stay long-term?" you’re in the right place.
Here’s the deal: long-term generally means no sales tax, hospitality tax, or whatever local flavor of tax applies. But, how do you handle that awkward initial period? Most locales have a window – typically 90 days – but some, like Alabama, prefer to keep things spicy with a 30-day rule. Fun times, right?
So, if Joe Camper checks in and you suspect he's setting up camp for a good while, you’ll collect sales tax initially. Then, on day 91, you can refund that pesky tax back to Joe and take a credit on your next sales tax return. Sounds simple enough, unless it’s your first rodeo.
If you’re using a reservation system, breathe easy. On day 91, you’ll generate an invoice showing the long-term stay amount and credit off the taxable short-term rate. This bit of wizardry ensures Joe gets his refund, and you get to stay on the taxing authorities’ good side. Everyone wins!
But remember, this isn’t one-size-fits-all advice. Consult your state and local tax authorities because, as we all know, tax rules can be trickier than assembling IKEA furniture without the manual.
Navigating sales tax on long-term stays doesn’t have to turn you into a tax wizard overnight. With a progressive perspective on accounting and a sprinkle of common sense, you can master this aspect of campground ownership.
Ready to dive deeper and untangle the tax web? Stay tuned for our full article, packed with insights and practical tips to keep your operations smooth and your guests happy.
For more sage advice, visit Campground Accounting and let’s conquer those tax worries together!
Have a taxing question or a funny tax story? Drop a comment below and let’s keep the conversation rolling.
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Donna Bordeaux, CPA with Campground Accounting
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.