SalesTax for Owner Rentals
My wife and I reside in Wilmette, Il. We own a condo in Vail, CO, which we offer for rent over the Internet and a ski magazine. All transactions are done via phone or e-mail with payments sent to our home address in Illinois.
Recently the town of Vail has decided to collect sales taxes from out of state renters that advertise on the Internet. The forms they sent us are very specific to retail sales in Vail, not to property rental; although �lodging� is a category on one part of the form, the text on the form refers to a place of business in Vail that sells products.
Is a sales tax applicable to our rental transactions?
If so, what taxing entity has precedence, Vail CO or Wilmette, IL?
1 Answer from Attorneys
Re: SalesTax for Owner Rentals
I have no doubt that Vail has taxing authority over transactions relating to goods, services, or real property physically located in its jurisdiction. What interests me is that you say that the new tax is tied to internet advertising, which might run afoul of federal laws that prohibit taxing internet transactions.
You should consult with an attorney in Colorado who is familiar with the Vail statute. I can recommend a great firm in Denver, and if they don't have the expertise in-house they can most likely refer you to someone who does.
Best wishes,
LDWG
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