Occupancy tax to charge or not

[JamesD90]

If I rent a room in my home , that I use as a personal residence, only to a relative (child etc) for short stays (less than 7 days each) when he/she is on business in town, multiple times a year and I don't rent the room to anyone else otherwise whatsoever, and I get paid a fair market rent, do I need to collect and pay the state the occupancy tax and sales tax? I do not advertise the home for rent anywhere and don't provide any significant services otherwise. The state I am in has a law for hotels and short term rentals under 30 consecutive days to collect the above taxes. Does the relative (child) usage of my room excludes the need for collecting and paying these taxes?

[tagteam · Accepted solution]

You need to check with your state's taxing authority (and county) to see if there is an exemption for relatives.

In Florida, there is an exemption for full-time students and military personnel but not for relatives who pay rental value on a short-term basis.