Overview: Are Short‑Term Rentals Allowed in Montrose, PA?

Short‑term rentals are allowed in Montrose (Susquehanna County). There is no borough‑specific permitting, zoning, or license requirement identified in the source material. However, property owners who rent a permanent structure for fewer than 30 days must collect and remit the 3% Susquehanna County Room Rental Tax and comply with quarterly reporting. As of May 1, 2019, platforms such as HomeAway, VRBO, and VacationRentals.com are required to collect this tax and remit it to the County; owners who list through these platforms typically do not remit directly, but must still submit a quarterly report to verify payment from the platform.

This guide focuses on county and state‑level obligations applicable to STR investors in Montrose.

How to Start a Short‑Term Rental Business in Montrose

1. Confirm the 3% Room Rental Tax Applies

• If you rent a permanent structure for fewer than 30 days, you are subject to Susquehanna County’s 3% Room Rental Tax. The requirement applies regardless of property type (e.g., entire home, apartment, cottage) when rented as lodging for less than 30 days.

2. Register with the County (if applicable)

• If you collect the tax yourself (e.g., direct bookings), complete the Hotel Room Rental Tax Application and submit it to the Susquehanna County Treasurer’s Office. You will receive reporting forms and instructions.
• If you only list via HomeAway, VRBO, or VacationRentals.com, the platform collects and remits the 3% tax. You are still required to submit the quarterly verification report.

3. Set Up Tax Collection and Compliance Workflows

• For direct bookings, collect the 3% tax from guests, maintain records, and remit per the County’s reporting schedule.
• For platform bookings, monitor platform remittances and submit quarterly reports to confirm payment. Keep booking statements, gross receipts records, and remittance confirmations for audit readiness.
• Maintain detailed records of rental nights, gross receipts, tax collected, and platform payouts.

4. Understand Additional Taxes That May Apply

• State sales tax: The provided sources do not specify Pennsylvania’s sales tax treatment of STRs. Consult the Pennsylvania Department of Revenue or a qualified CPA for definitive guidance.
• Local non‑property taxes: Pennsylvania municipalities may assess additional taxes (e.g., local services taxes, business privilege taxes). The source material does not indicate Montrose‑specific taxes for STRs. Verify with the Borough or a local tax professional.

5. Verify Zoning and Safety Requirements

• No borough‑specific STR zoning, licensing, or safety inspection requirements are indicated in the source material. Confirm with the Borough/Zoning Officer for any property‑use or building‑code considerations.

Required Documents, Permits, Licenses, and Guidelines

Required (County Level):

• Hotel Room Rental Tax Application (Susquehanna County Treasurer’s Office)
• Quarterly Report Form (to verify tax payments, especially when listed via platforms)

Recommended:

• Guest log with check‑in/out dates and nightly counts
• Gross receipts ledger and reconciliation of platform statements
• Copy of County submission confirmations and quarterly filings

Optional/Confirm Locally:

• Borough business registration or local tax filings (not specified in the source material)
• Zoning/use registration with the Borough (not specified in the source material)

Specific Regulations for Short‑Term Rentals (Susquehanna County, Montrose, Pennsylvania)

Susquehanna County Regulations:

• A 3% Room Rental Tax applies to any permanent structure rented for fewer than 30 days.
• If you currently do not remit this tax, you must complete the Hotel Room Rental Tax Application and comply with reporting requirements.
• As of May 1, 2019, HomeAway, VRBO, and VacationRentals.com must collect the 3% tax and remit it to the County.
• A quarterly report form must still be provided by each establishment to verify payment from the platform.
• Contact: (570) 278‑4600 ext. 6695

State of Pennsylvania:

• The provided sources do not include Pennsylvania‑specific STR regulations. For authoritative guidance on sales tax, local hotel taxes, and other state requirements, consult the Pennsylvania Department of Revenue or a qualified CPA.

Contact Information

Susquehanna County Treasurer’s Office

• Address: PO Box 218, 31 Lake Avenue, Montrose, PA 18801
• Phone: (570) 278‑4600 ext. 6695 (Hotel Room Rental Tax questions)
• Hours: Mon–Fri 8:30–4:30
• Online resources: See source links below

Links to Source Pages

• Susquehanna County Treasurer’s Office – Hotel Room Rental Tax Application: www.susqco.com/departments/treasurer-s-office/hotel-room-rental-tax-application

• Susquehanna County Hotel Room Rental Tax Application (PDF): www.susqco.com/getmedia/c2f521f3-3744-4076-88b0-b36dc043616c/Hotel-Room-Rental-Tax-Application.pdf

• Susquehanna County Room Rental Quarterly Report Form (PDF): www.susqco.com/getmedia/95f55314-2a8b-4ecf-91c2-32b518be414e/Quarterly-Report-Form.pdf

• Dimov Tax – Short-Term Rental Tax Loophole Guide (general context for STR tax planning): dimovtax.com/short-term-rental-tax-loophole-guide/