Overview: Are Short-Term Rentals Allowed in Clarion?

Short-term rentals (STRs) are explicitly allowed in Clarion Borough under Ordinance #2022-839. The ordinance classifies STRs as a “furnished living space available to rent for short periods of time, from one (1) day to thirty-one (31) days.” STRs may include entire-home or shared-space rentals and can be listed on platforms such as Airbnb, VRBO, HomeAway, or Booking.com.

• Zoning status:
  • R-1 Single-Family Residential District: Permitted as a conditional use (subject to objective requirements).
  • R-2 Medium-Density Residential, R-3 High-Density Residential, MU Mixed Use, C-1 Commercial, C-2 Commercial Districts: Permitted uses (subject to the same standards).
  • No explicit ban in other districts is indicated in the provided ordinance.
• STRs are subject to all state and local taxes. If taxes are not collected by a rental platform, the property owner must collect and remit them.
• STRs must be licensed through Clarion Borough and are subject to inspections and applicable fees.

Bottom line: Yes—STRs are allowed in Clarion, with zoning and licensing requirements.

How to Start a Short-Term Rental Business in Clarion

1. Confirm zoning eligibility at your property’s address.
   • R-1: Allowed only as a conditional use—verify suitability and prepare to meet objective requirements.
   • R-2, R-3, MU, C-1, C-2: Permitted use—proceed to compliance steps.
2. Obtain required licensing from Clarion Borough.
   • Apply for STR licensing (per ordinance).
   • Comply with inspections and fees.
3. Meet operational requirements.
   • Limit stays to 31 days.
   • Comply with occupancy limits under the International Property Maintenance Code (IPMC).
   • Provide sufficient off-street parking and follow all borough laws.
   • Limit overnight occupancy to no more than one family per dwelling unit.
   • Adhere to the Rental Unit Ordinance rules referenced by the zoning ordinance.
4. Register for taxes and collect/remit appropriately.
   • Clarion County’s local hotel occupancy tax rate: 5.0% (Sixth-Class County).
   • Pennsylvania state hotel occupancy tax: 6.0%.
   • Total hotel tax rate for stays in Clarion: 11.0% (state + county).
   • Register with the Pennsylvania Department of Revenue for Sales/Use and Hotel Occupancy Tax if you are an operator or booking agent with reporting responsibilities.
   • If using a booking agent (e.g., Airbnb), confirm tax collection arrangements; otherwise, you must collect and remit taxes yourself.
5. Operational planning.
   • Maintain records and receipts as required by state and local law.
   • Maintain insurance appropriate for commercial STR activity (standard homeowners’ policies generally exclude or limit home-based business coverage).
   • Establish guest policies for parking, quiet hours, trash disposal, and emergency procedures to comply with local standards.
6. File and renew annually.
   • Keep licenses current; schedule and complete inspections as required; renew annual licenses and any tax registrations.

Required Documents, Permits, Licenses, and Guidelines

• Licensing
  • Clarion Borough STR license (required).
  • Inspections as required by the borough.
  • Compliance with the Clarion Rental Unit Ordinance (rules referenced in Section 429).
• Zoning and Use
  • If located in R-1: Conditional use approval for STRs (demonstrate compliance with objective requirements).
  • If located in R-2, R-3, MU, C-1, C-2: Permitted use—no conditional use process indicated.
• Taxes
  • Hotel Occupancy Tax registration/licensing as needed (Pennsylvania Department of Revenue).
  • Clarion County local hotel occupancy tax: 5.0%.
  • Pennsylvania state hotel occupancy tax: 6.0%.
  • Confirm collection/remittance obligations with any booking agent.
• Safety and Occupancy
  • Compliance with IPMC occupancy limits for the dwelling.
  • Adequate off-street parking.
  • Limit stays to 31 days.
  • Limit overnight occupancy to one family per dwelling unit.
• Ongoing Compliance
  • Keep rental records and tax documentation as required.
  • Maintain insurance suitable for STR operations (commercial general liability and property coverage are recommended).
  • Ensure good neighbor policies (noise, trash, parking) and adherence to borough codes.

Specific Regulations (City, County, State)

City of Clarion (Borough)

• Definitions and Scope
  • STR: A furnished living space available to rent for 1–31 days. Includes entire-home or shared-space rentals. Can be listed via platforms such as Airbnb, VRBO, HomeAway, Booking.com, or similar.
• Licensing and Inspections
  • All STRs must be licensed through Clarion Borough and are subject to inspections and fees.
• Zoning Status
  • R-1 Single-Family Residential: Permitted as a conditional use (Section 429).
  • R-2, R-3, MU Mixed Use, C-1, C-2 Commercial: Permitted uses (Table of Uses).
• Operational Standards (Section 429)
  • Stay limit: Up to 31 continuous days per stay.
  • Occupancy: Must comply with IPMC limits for the dwelling.
  • Parking: Sufficient off-street parking; follow all borough laws and the International Property Maintenance Code.
  • Overnight occupancy limit: No more than one family per dwelling unit.
  • Compliance: Must follow the Rental Unit Ordinance rules (as referenced).
  • Taxes: Subject to all state and local taxes; owners must collect/pay any taxes not collected by rental platforms.

Clarion County

• Local Hotel Occupancy Tax: 5.0% (Sixth-Class County maximum).
• County-specific STR zoning ordinances were not identified in the provided sources; Clarion Borough’s zoning and licensing rules govern within borough boundaries.
• For county-level tax collection and administration, contact the Clarion County tax office or the Pennsylvania Department of Revenue.

Pennsylvania State

• State Hotel Occupancy Tax: 6.0%.
• STR Classification and Coverage
  • “Lodging establishment” under the Lodging and Housing Code includes any place that provides sleeping accommodations to the public for less than 30 days or on a day-to-day basis for over 30 days. This definition captures private residences used for short-term rentals.
  • Recordkeeping, order maintenance, and guest safety requirements may apply.
• Municipal Authority
  • The Pennsylvania Municipalities Planning Code delegates regulation of land use (including STRs) to municipalities; zoning and licensing rules vary locally.
• Income and Business Taxes
  • Pennsylvania Personal Income Tax (3.07% for 2024–2025) applies to net income from STR activity; collect expenses against gross rents for accurate reporting.
• Insurance Considerations
  • Homeowners’ policies often exclude home-based business coverage. Consider a rider or a separate STR policy for guest liability, property damage, theft, and loss-of-income coverage.

Contact Information (Local Authority in Charge of STRs)

• Clarion Borough

  • Borough Secretary: Linda LaVan-Preston
  • Mayor: Jennifer Fulmer Vinson
  • Borough Council President: Carol Lapinto
  • Mailing address: Borough of Clarion, Clarion, PA
  • Website/ordinance access: Clarion Borough Code (available via eCode360; see source link below)

• Pennsylvania Department of Revenue

  • Phone: 717-787-1064 (General tax information)
  • Website: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html

• Pennsylvania Joint State Government Commission (state-level STR research)

  • Phone: 717-787-4397
  • Email: jntst02@legis.state.pa.us
  • Website: jsg.legis.state.pa.us

Links to Source Pages

• Clarion Borough Ordinance #2022-839 (Zoning Amendment; STR as conditional/permitted use, Section 429 standards; licensing and inspection requirements)

  • ecode360.com/CL1713/laws/LF2178884.pdf

• Pennsylvania Department of Revenue – Home-Sharing/Third-Party Broker Rentals (hotel occupancy tax guidance)

  • www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html

• Joint State Government Commission Report – The Short-Term Rental Industry in Pennsylvania (March 2025)

  • jsg.legis.state.pa.us

Notes and Assumptions:

• Clarion-specific operational guidelines (e.g., rental registry forms, inspection processes, fee schedules, and the referenced Rental Unit Ordinance) are not included in the provided sources; consult the borough directly for details.
• County-level STR zoning rules for Clarion County were not identified; borough zoning governs within Clarion’s boundaries.
• Clarion County’s 5.0% hotel occupancy tax rate reflects typical Sixth-Class County limits per state law; confirm current rates with the county or DOR.