Tax-free duration: What is it and how to work with those reservations

Tax-free duration: What is it and how to work with those reservations?

In the context of rental companies, tax-free duration refers to the period of time during which a rental can be leased without incurring taxes. This is typically a period of 30 days or more and is designed to provide long-term rental options for customers. It is important to note that the specifics of tax-free duration may vary depending on the country and region in which the rental company is located, as tax laws and regulations can differ significantly between jurisdictions.

In this article, we will discuss 4 areas and will apply our knowledge of the tax-free systems in those locations. 

New Orleans

The tax-free period in NOLA for rental companies is 29 nights (30 days). Meaning, if the reservation is created for at least 29 nights (30 days) all the taxes will be removed from the reservation automatically. 
If the guest is continuously extending and has reached the 29-night bar, the paid taxes should either be refunded or deducted from the next extension ( IF the guest is still extending the reservation). 

Seattle

The tax-free period in Seattle for rental companies is 29 nights (30 days). Meaning, if the reservation is created for at least 29 nights (30 days) all the taxes will be removed from the reservation automatically. 
If the guest is continuously extending and has reached the 29-night bar, the paid taxes should either be refunded or deducted from the next extension ( IF the guest is still extending the reservation). 

Myrtle Beach 
 

The tax-free period in Myrtle Beach for rental companies is 89 nights (90 days). Meaning, if the reservation is created for at least 89 nights (90 days) all the taxes will be removed from the reservation automatically. 
If the guest is continuously extending and has reached the 89-night bar, the paid taxes should either be refunded or deducted from the next extension ( IF the guest is still extending the reservation). 

Gulf Coast Area

The tax-free period in the Gulf Coast area for rental companies is 179 nights (180 days). Meaning, if the reservation is created for at least 179 nights (180 days) all the taxes will be removed from the reservation automatically.  If the guest is continuously extending and has reached the 179-night bar, the paid taxes should either be refunded or deducted from the next extension ( IF the guest is still extending the reservation).