Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals (STRs) are allowed in Farmington, Utah, but they are subject to local, county, and state regulations. The city requires STRs to be licensed, and operators must comply with zoning laws, tax obligations, and any homeowners' association (HOA) rules. Failure to adhere to regulations can result in fines or permit revocation.

How to Start a Short-Term Rental Business in Farmington

1. Verify Zoning Compliance: Check Farmington's zoning ordinances to ensure your property is in an area where STRs are permitted. Residential zones may have restrictions on STR operations.
2. Obtain a City License: Apply for an annual STR permit through Farmington City. Submit the required application, documents (detailed below), and pay the annual fee.
3. Register for State Taxes: If platforms like Airbnb/Vrbo do not handle tax collection, register with the Utah State Tax Commission to collect and remit transient room tax and state sales tax.
4. Consider HOA Rules: Review your property's HOA bylaws for STR restrictions, as associations may impose additional limits or bans.
5. Prepare the Property: Ensure compliance with safety standards (e.g., smoke detectors, egress). Consider professional management for operational efficiency.
6. List and Operate: Create listings on platforms, set pricing to account for seasonality (e.g., peak demand in summer due to Lagoon Amusement Park and ski season), and maintain records for taxes and renewals.

Required Documents, Permits, Licenses, and Guidelines

• STR License Application:
  • Property location and number of rooms
  • Maximum occupancy capacity
  • Property manager's contact details
  • Sales tax account number from the Utah State Tax Commission
  • 24/7 local contact information for emergencies
  • Statement affirming compliance with all legal requirements
  • Payment of all applicable taxes (transient room tax, sales tax) and fees
• Annual STR Permit Fee: Pay a fee set by Farmington City (amount subject to change; consult the city for current rates).
• License Renewal Requirements:
  • Updated application annually
  • Proof of tax remittance compliance with the Utah State Tax Commission
  • No more than two unresolved complaints (else renewal may be denied or require additional conditions).
• Business Registration: Forming an LLC or other entity is optional but recommended for tax purposes.
• HOA Documentation: Review HOA rules for STR restrictions or bans.

Specific Regulations for Farmington (City, County, and State)

City of Farmington Regulations:

• Licensing Mandatory: All STRs must obtain an annual license from Farmington City.
• Zoning Restrictions: STRs may be prohibited in certain residential zones. Verify zoning through Farmington's planning department.
• Compliance Monitoring: Non-compliance (e.g., noise, parking violations) can lead to fines or license suspension.

Davis County Regulations:

• Transient Room Tax: A county-level transient room tax may apply (typically 3-6.25% of booking prices). Check Davis County's current rates.
• Zoning Guidelines: County zoning may complement city rules; consult county planning for specifics.

Utah State Regulations:

• State Sales Tax: 4.85% base rate, but local option taxes can increase it to over 7%.
• Transient Room Tax: Ranging from 0.32% to 4%, depending on the jurisdiction. Many areas combine this with sales tax.
• Tax Collection: Airbnb/Vrbo often handle taxes, but if not, register with the Utah State Tax Commission for monthly/quarterly filings.
• License Requirements: While no statewide STR license exists, local permits are required in many cities, including Farmington.

Contact Information for Local and State Authorities

• Farmington City (STR Licensing):
  • Phone: Not provided in the source content. Consult Farmington City Hall at (801) 451-2383 for general inquiries.
  • Website: Farmington City Official Website (check "Business Licensing" or "Planning" sections).
• Utah State Tax Commission (State Tax Registration):
  • Phone: (801) 297-2200 or toll-free 1-800-662-4335
  • Website: tax.utah.gov
  • Email: Contact via their website for business tax registration.

Source Links

1. Summer - Vacation Rental Management in Farmington, Utah
2. RedAwning - Utah Short-Term Rental Laws (2025 Update)
3. Hostaway - Airbnb Rules in Utah

This guide is based on the provided content. For the most current regulations and fees, contact Farmington City directly or visit their website.