Overview

Short-term rentals (STRs) are legal in Arkansas and allowed in Crossett. There are no city- or county-specific short-term rental ordinances in the sources provided, and there is no city-level STR licensing requirement. However, STR hosts must comply with zoning (e.g., using the property consistent with its district), safety codes (e.g., smoke detectors, egress), and state-level sales/use and lodging taxes. For planning, permits, and code enforcement, the City of Crossett Building/Zoning Department is the lead municipal authority. State-level tax guidance is administered by the Arkansas Department of Finance and Administration (DFA).

Important: This guide is based solely on the provided sources. Always verify current requirements with local authorities and the DFA, as local lodging taxes and administrative processes can change.

Market Entry: How to Start a Short-Term Rental in Crossett

Given the absence of local STR-specific rules in the provided documents, use the following practical checklist to set up a compliant operation:

• Select a compliant property and use:
  • Confirm the property’s zoning district permits the intended residential use (e.g., R-S1, R-S2, R-S3 single-family; R-D two-family; R-M multifamily). The code does not prohibit renting dwellings to transient guests in the sections reviewed, but operating a lodging business (e.g., a “hotel” or “motel”) from a residential home could trigger zoning compliance issues. Keep occupancy and guest use residential in character; consider a “Bed and Breakfast Inn” path if seeking a defined lodging format (owner-occupied, ≤3 guest rooms; see definitions).
• Determine if a building permit, certificate of occupancy, or business license is needed:
  • The provided Crossett zoning documents do not show a city STR registration or business license requirement. However, building permits and Certificates of Occupancy are required for construction, alteration, conversion, enlargement, movement, or structural alteration of buildings and uses (Sections 10.04.06 and Definitions). If your STR involves changes to the structure, contact the Building Official before work begins.
• Site plan review (if applicable):
  • Planned developments, multiple-family dwellings, and other specified uses require site plan review and approval by the Planning Commission or City Council (Sections 14.08.07–14.08.09). If converting a property into an STR facility with multiple units or significant site changes, plan for this process.
• Safety and code compliance:
  • Comply with zoning and building code standards applicable to the dwelling type, including fire and life safety features (detectors, egress, etc.). The Building Official enforces these requirements (Section 14.08.06). If converting or renovating, expect inspections.
• Taxes:
  • Register for Arkansas sales/use tax with the DFA and set up collection/remittance processes for applicable taxes on lodging. Arkansas imposes a statewide short-term rental tax (1%) on tangible personal property rentals (e.g., furniture) in connection with STRs, in addition to state sales tax (6.5%) and local sales/lodging taxes. The exact local lodging tax rate in Crossett/Ashley County is not provided in the sources; you must determine and collect the local rate at your specific address.
• Operations:
  • Establish guest policies, occupancy limits, quiet hours, parking, and neighborhood interaction protocols to avoid nuisance complaints. The City can enforce zoning violations and nuisances through its administration and enforcement provisions (Sections 14.04.02 and 14.08.06).

Required Documents, Permits, Licenses, and Guidelines

Based on the sources, the following are relevant to lodging and building use in Crossett. Confirm with local officials for any updates or additional requirements not captured in the provided documents.

• Building/Zoning
  • Building Permit (when structural changes are made or new construction is proposed)
  • Certificate of Occupancy (authorization to occupy, affirming compliance with zoning and approved plans)
  • Site Plan Review and Approval (for multiple-family dwellings, planned developments, and other specified uses)
  • Compliance with zoning district use and bulk regulations (e.g., setbacks, height, density; see District Regulations)
• State-Level Taxes
  • Arkansas Sales/Use Tax Permit (Arkansas DFA)
  • Collection and remittance of state sales tax (6.5%) and statewide STR tax (1% on tangible personal property rentals associated with STRs)
  • Collection and remittance of local sales/lodging taxes applicable at the rental address
• Business Operations (recommended)
  • Guest registration and house rules
  • Insurance coverage appropriate for STR operations
  • Safety documentation (e.g., fire extinguisher, emergency info)

Note on lodging “Bed and Breakfast Inn”:

• If your model matches the zoning definition (owner-occupied dwelling with no more than three guest rooms; operator lives on or adjacent premises), you may consider that pathway. The definition is provided in the zoning ordinance; operational permits may be required by other city departments (not specified in the sources).

Specific Regulations (City/County/State)

City of Crossett (Zoning)

• Allowed Uses and Zoning Districts:
  • Residential districts include R-S1, R-S2, R-S3 (single-family), R-D (duplex), R-M (multifamily), and others (Section 14.16.01). The sections reviewed do not include an explicit prohibition on renting dwelling units to transient guests.
• Administration and Enforcement:
  • The Building Official enforces zoning and building codes, receives applications, issues permits and certificates, and inspects for compliance (Section 14.08.06).
  • Violations are misdemeanors; the city may pursue injunctions and other actions to correct or abate violations (Section 14.04.02).
• Planned Development and Site Plan Review:
  • Planned developments, multiple-family dwellings, and specified uses require site plan review and approval by the Planning Commission or City Council (Sections 14.08.07–14.08.09).
• No City STR-Specific Licensing:
  • The provided zoning documents do not show a city-level short-term rental registration or business license requirement.

Ashley County (Crossett)

• The sources provided do not include county-specific ordinances governing short-term rentals. If county occupancy or business license requirements apply, they are not covered here. Confirm with Ashley County.

State of Arkansas

• Statewide Tax Structure for STRs:
  • Short-term rentals are subject to the statewide STR tax of 1% on tangible personal property rentals (e.g., furnishings and equipment) in connection with STRs, regardless of whether Arkansas gross receipts or use tax was paid at purchase.
  • State sales tax rate is 6.5%. Hosts must collect applicable state and local sales/use taxes on lodging.
  • Local lodging taxes may apply and vary by jurisdiction. The exact local rate for your Crossett/Ashley County address must be determined before you open.
• Definition Context:
  • State-level discussions in the sources reference Senate Bill 197 for a definition (e.g., single-family home, condo, timeshare, or owner-occupied home offered for less than 30 days). However, definitive statutory language is not provided in the sources.

Compliance Reminder:

• Taxes apply regardless of whether a local STR-specific ordinance exists.
• Occupancy and building safety requirements are enforced through zoning and building code processes.

Contact Information (Lead Authorities)

City of Crossett (Building/Zoning and Administration)

• City of Crossett — City Hall
  • Phone: Not provided in the sources
  • Website: cityofcrossett-ar.com
  • Note: The Building Official administers zoning and building compliance (Section 14.08.06). Contact City Hall for the Building Official’s direct information.

Arkansas Department of Finance and Administration (DFA) — Sales/Use Tax

• Phone: Not provided in the sources
• Website: www.dfa.arkansas.gov
• Purpose: Register for sales/use tax permits; obtain state and local tax rate information and filing guidance.

Ashley County (If County Requirements Apply)

• Ashley County Circuit Clerk/Recorder (mentioned in zoning documents for recording purposes)
  • Phone: Not provided in the sources
  • Website: Not provided in the sources
• Purpose: County-level permits or licenses, if any. Confirm applicability directly with county offices.

Links to Source Pages

• Lodge Compliance — Arkansas STR Overview: www.lodgecompliance.com/states/arkansas
• City of Crossett Zoning Ordinance (Title 14): cityofcrossett-ar.com/wp-content/uploads/2024/09/Crossett-14.pdf

Notes

• This guide reflects only the sources provided. For definitive zoning and tax guidance specific to your property and plan, contact the City of Crossett Building/Zoning Department and the Arkansas DFA.
• Because Crossett does not have a published STR ordinance in the provided documents, rely on state-level tax guidance and general zoning compliance, and obtain local determinations when planning changes or if you anticipate multi-unit or commercial lodging operations.