Are you curious about the dynamic world of short-term rentals (STR) in the scenic state of Arkansas? Get ready to dive deep into the fascinating realm of vacation rentals in Arkansas!

This article will uncover the secrets of short-term rentals, covering everything from their legal aspects to the fine details that can boost your hosting skills in Arkansas. We'll explore the essential questions every host should consider before stepping into the short-term rental business in the Natural State.

In Arkansas, the discussion around the regulation of short-term rentals (STRs) has been centered on Senate Bill 197, which proposes a specific definition and deregulation of STRs. This bill defines a short-term rental as a single-family home, condo unit, timeshare, or owner-occupied residential home offered for less than 30 days.

The definition and regulations for short-term rentals can vary significantly depending on the specific location. Generally, many cities in Arkansas define short-term rentals as lodging offered for periods of less than 30 consecutive days.

In Arkansas, short-term rentals are subject to several tax requirements. Firstly, in addition to the state and local sales or use taxes, there is a specific short-term rental tax of one percent (1%) that must be collected by the lessor on short-term rentals of tangible personal property. This is regardless of whether Arkansas gross receipts or use tax was paid by the lessor at the time of purchase.

Furthermore, short-term rentals in Arkansas, like hotel and B&B stays, are required to collect applicable taxes from guests and remit them to the appropriate authorities. This includes a 6.5% state sales tax, state tourism tax, local sales tax, and local lodging tax. The exact tax rates and the rules governing them can vary depending on the location of the rental property. It's important for hosts to use tools like the lodging tax lookup tool to determine the specific tax rates and jurisdictions applicable to their rental's location.