In Eastern Long Island, known for its beaches, vineyards, and historic sites, homeowners are increasingly renting out their properties to vacationers as a source of income. However, this opportunity requires them to understand and follow local regulations, especially the Suffolk County Occupancy Tax.

Understanding the Suffolk County Occupancy Tax

The Suffolk County Occupancy Tax, often referred to as the "hotel/motel tax," is not just limited to traditional lodging establishments - it also applies to vacation rentals. The tax is levied on the rental of any room or accommodation in hotels, motels, inns, bed and breakfasts, and vacation rental properties for a period of less than 30 days.

Tax Rate and Applicability

As of the date this post was written, the tax rate is set to 5.5% of the total rent charged to the guest. This rate is subject to change, so it's crucial for property owners to stay updated with the Suffolk County government's announcements.

What Homeowners Need to Know

Registration and Permits: Homeowners must ensure that they are properly registered with the local authorities to rent their home. This may involve obtaining a rental permit, a certificate of occupancy that specifically allows for such use, or a rental registration number. See our Compliance page for more town-specific information.
1. See this Youtube video that shows how owners can apply for a permit
2. See this Youtube video that shows how owners can register
Collecting the Tax: Each homeowner can choose how they want to collect the tax. Most homeowners incorporate the tax into the rental amount, which is the default setting for every property. Others choose to break out the tax that is shown to and collected from guests. Work with your Account Manager to set this up in accordance with your preferences.
Tax Remittance: Owners must remit taxes to Suffolk County on a quarterly basis. Failure to remit the taxes on time can result in penalties and interest charges. At the end of each quarter, StayMarquis sends each homeowner a summary of rentals procured in that quarter to help calculate the occupancy taxes owed.
1. See this Youtube video that shows how owners can remit taxes
2. Click this link for the paper form
Record Keeping: Owners must maintain detailed records of all rental transactions, including the amount of rent collected and the tax amount. These records should be kept for a minimum period, as specified by the county, to facilitate audits or inquiries from the tax authorities.
Exemptions and Deductions: There are specific situations where the occupancy tax may not apply, such as rentals to the same person for a continuous period of 30 days or more. Owners should familiarize themselves with these exemptions to accurately apply the tax.

Staying Compliant

Compliance with the Suffolk County Occupancy Tax is not just about avoiding penalties; it's about contributing to the local community. The revenue generated from this tax supports tourism promotion efforts, which in turn can benefit local rental businesses by attracting more visitors to the area.

Tips for Compliance:

Stay Informed: Regulations can change, so it's important to regularly check for updates from Suffolk County or consult with a tax professional specializing in local tax laws.
Consult with Professionals: When in doubt, it's wise to seek advice from a tax advisor or attorney familiar with local rental regulations and tax laws.

Conclusion

Owning a vacation rental in Suffolk County offers a promising avenue for income, but it comes with the responsibility of understanding and adhering to local tax laws. By staying informed, diligent in tax collection and remittance, and maintaining accurate records, homeowners can ensure a profitable and compliant rental business. Remember, a well-managed vacation rental not only provides a memorable stay for your guests but also contributes positively to the local economy and community.

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