Overview

Short-term rentals are allowed in Fernley, Nevada. Fernley explicitly permits transient lodging operations within city limits and has established a comprehensive regulatory framework to oversee these businesses. The city operates under Lyon County jurisdiction but maintains its own municipal code for transient lodging taxation and licensing.

How to Start a Short-Term Rental Business in Fernley

Starting an STR in Fernley involves several key steps:

1. Obtain a Business License: Apply for a transient lodging rental business license from the City Clerk
2. Register for Transient Lodging Tax: Complete registration for the 9% transient lodging tax collection
3. Set Up Tax Collection System: Implement processes to collect and remit the required taxes monthly
4. Ensure Compliance: Maintain proper records, display required notices, and adhere to all operational requirements

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements:

• Transient Lodging License - Required from Fernley City Clerk before operating
• Transient Lodging Tax Registration - Registration with City Clerk for tax collection purposes

Documentation Requirements:

• Business License Application - Filed with City Clerk
• Monthly Tax Returns - Required for all licensees
• Guest Registration Records - Maintain detailed records of all guests, occupancy dates, rents, and taxes collected
• Financial Records - Keep records for at least 3 years including:
  • Total rooms available and occupied
  • Total rental revenue
  • Total rental revenue exempt from taxes with supporting documentation
  • Guest folios or registration cards
  • Total taxes collected
  • Non-revenue or complimentary room records
  • Package/promotional offering records

Operational Requirements:

• Display Requirements - Prominently display 9% transient lodging tax notice in each rental room or lobby
• Record Keeping - Maintain records for minimum of 3 years and make available for city audits
• Separate Tax Display - Show tax amount separately from rent price on all documentation

Specific Regulations

City of Fernley Regulations:

Transient Lodging Tax (TLT):

• Rate: 9% of gross income (excluding lodging tax)
• Scope: Applies to all transient lodging rentals under 30 days
• Collection: Operators must collect tax from guests and remit monthly

License Requirements:

• License Type: Annual transient lodging rental business license
• Issuing Authority: City Clerk
• Transferability: Licenses are non-transferable
• Display: Must be displayed conspicuously in place of business

Exemptions:

• Rent paid after 30th consecutive day of occupancy (permanent residents)
• Rent paid by federal government, Nevada state government, federally-chartered credit unions, American Red Cross, or registered foreign diplomats
• Complimentary rooms with no rent charged
• Meeting or storage rooms not used for sleeping

Payment and Reporting:

• Due Date: 10th day of each month (next business day if 10th falls on weekend/holiday)
• Delinquency: 20th day of month (extended if falls on weekend/holiday)
• Penalty Structure:
  • First month violation: $100 penalty
  • Second month and beyond: $250 penalty per month
  • Third month violation: License revocation hearing process initiated

Zoning: No specific zoning restrictions identified for STRs in provided content

Lyon County Regulations:

Based on available information, Lyon County Planning Division oversees STR regulation and oversight. However, specific county-level requirements were not detailed in the provided content.

State of Nevada Regulations:

No specific Nevada state-level STR regulations were detailed in the provided content.

Contact Information

City of Fernley

• Authority: City Clerk's Office
• Primary Responsibility: Transient lodging licensing and tax collection
• Website: www.cityoffernley.org
• Municipal Code: Available through city website and Document Center

Lyon County

• Authority: Lyon County Planning Division
• Website: www.lyon-county.org
• Note: Responsible for overall STR regulation and oversight

Important Operational Requirements

Monthly Filing Obligations:

• File monthly tax returns by the 10th day of each month
• Remit total transient lodging tax collected
• Pay applicable penalties if filing deadline missed

Record Retention:

• Maintain all records for minimum 3 years
• Make records available for city audit during business hours
• Include supporting documentation for all exemptions claimed

Guest Management:

• Collect 9% transient lodging tax from all guests staying less than 30 days
• Display tax notification prominently in each rental unit
• Maintain detailed guest registration records
• Track room occupancy, rental revenue, and tax collection

Sources

• Fernley Municipal Code, Title 4, Chapter 2 (Transient Lodging Tax): www.cityoffernley.org/DocumentCenter/View/18937
• Lyon County Government Website: www.lyon-county.org
• Nevada State Government Website: www.nv.gov

Note: This guide is based on the provided municipal code content. Investors should verify current requirements with the City Clerk's office and Lyon County Planning Division, as regulations may have been updated since this information was compiled.