Short-term lodging businesses must now collect bed tax in the county

LANCASTER – From April 1st, all accommodation establishments will have to levy the bed tax that hotels and motels levy from their customers.

Bed tax or lodging tax supports the Visit Fairfield County Tourist Office and Decorative Arts Center.

Bed-and-breakfasts and other homes rented by private individuals did not collect the tax. County Commissioner Dave Levacy said companies with five or more rental units pay the tax and those under four don’t currently.

Jonett Haberfield, Executive Director of Visit Fairfield County, said collecting bed tax money from nontraditional lodging companies will make it easier for your agency to know and promote them.

But the district commissioners recently passed a resolution calling on anyone renting accommodation to collect the 3.5% bed tax from visitors. The DACO tax is 1.5%. Levacy said these were not new taxes, but a chance to treat everyone fairly by paying everyone equally.

“I think the main purpose is to level the playing field when people are either in the B and B business or in the hotel business or whatever,” Levacy said. “Right now, even a person renting a B and B should have a vendor license.”

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