Burlington, VT Short-Term Rental Regulatory Guide

Overview: Are Short-Term Rentals Allowed in Burlington, VT?

Yes, short-term rentals are allowed in Burlington, Vermont, but with significant restrictions and requirements. Burlington explicitly permits STRs that meet specific criteria: units must be rented for fewer than 30 consecutive days and for more than 14 days during any rolling 12-month period. However, hosts must primarily operate within their primary residence or meet limited exceptions, and all STRs are subject to extensive registration, inspection, and tax obligations.

How to Start a Short-Term Rental Business in Burlington

Step 1: Determine Eligibility

Before proceeding, ensure your property qualifies under Burlington's regulations:

• Primary Residence Requirement: In most cases, you must live on the same lot or in the same building as your STR
• Limited Exceptions: Off-site STRs may only operate if:
  • The property is a seasonal home (as indicated by Burlington Assessor)
  • The property is in a building with 2+ dwelling units and the host rents another unit in the same building that meets affordability criteria under Article 9 of the Comprehensive Development Ordinance

Step 2: Complete Annual Registration

• Register with the city's housing division by September 1, 2022 initially, then by April 1 of every year thereafter
• Complete registration online at: burlingtonvt.viewpointcloud.com/categories/1085
• Registration is mandatory for all STRs operating in Burlington

Step 3: Set Up Tax Obligations

• City Gross Receipts Tax: Apply for a gross receipts account and submit monthly returns for the 9% city tax
• Vermont Rooms and Meals Tax: 9% state tax (platforms like Airbnb may remit on your behalf)
• Complete the gross receipts application: **www.burlingtonvt.gov/sites/default/files/Updated%20Gross%20Receipt%20Application.pdf**
• Submit returns through the City Clerk & Treasurer's Office website: **www.burlingtonvt.gov/CT/Gross-Receipts-Tax**

Step 4: Obtain Required Permits (If Applicable)

• Zoning Permits: If your STR already had a "Bed & Breakfast" or "Hotel/Motel" zoning permit, you may continue operating under that permit (provided use isn't discontinued for more than a year)
• Construction Permits: If building or renovating, obtain zoning and trades permits online at: burlingtonvt.viewpointcloud.com/projectTempla te/13

Step 5: Comply with Safety Standards

• Ensure your STR meets minimum life safety standards in Chapter 18, Article III
• Whole-unit STRs require inspections
• Partial-unit STRs do not require inspections
• Review applicable life safety standards at: firesafety.vermont.gov/document/short-turm-rental-health-and-safety

Required Documents, Permits, Licenses, and Guidelines

Registration and Licensing

• Annual STR Registration: Mandatory with the city's housing division
• Gross Receipts Account: Required for tax remittance on non-Airbnb platforms
• Zoning Permits: Previously obtained "Bed & Breakfast" or "Hotel/Motel" permits may continue to be valid

Tax Compliance

• City Gross Receipts Tax Account: For 9% city tax remittance
• Monthly Tax Returns: Due from hosts using platforms other than Airbnb
• Documentation: Maintain records of all revenue and guest stays for tax purposes

Safety and Building Compliance

• Fire Safety Standards: Compliance with Vermont Dept. of Public Safety, Division of Fire Safety requirements
• Building Code Standards: Meet all applicable building and housing codes in Chapter 18: Minimum Housing ordinance
• Inspection Requirements: Mandatory for whole-unit STRs

Reference Documents

• Chapter 18: Housing: Complete regulations at www.codepublishing.com/VT/Burlington (scroll to Chapter 18)
• Short-Term Rental FAQ: Available at the provided city link
• Gross Receipts Tax Ordinance: Available through the City Clerk & Treasurer's Office

Specific Regulations for Burlington, VT

Operational Restrictions

• Host Limit: Each host may register only one STR
• Entity Restrictions: Cannot use multiple corporations or entities to register additional STRs
• Primary Residence Rule: STRs must be within host's primary residence or same lot/building (with limited exceptions)
• Seasonal Exception: Seasonal homes may be operated as off-site STRs
• Affordability Exception: STRs in buildings with 2+ units may qualify if they meet affordable housing criteria

Tax Obligations

• City Gross Receipts Tax: 9% on all STR revenue
• State Rooms and Meals Tax: 9% on all STR revenue
• Platform Remittance: Airbnb remits city taxes on behalf of hosts; other platforms require self-remittance

Enforcement Measures

• Non-Registration: Housing orders for unregistered STRs
• Safety Violations: Municipal ticket fines and court actions
• Compliance Timeline: New STRs (post-August 3, 2022) must comply immediately; existing non-compliant STRs had until May 31, 2023 to cease operations

Safety Requirements

• Minimum Life Safety Standards: Required for all STRs
• Inspection Protocol: Required for whole-unit STRs only
• Fire Safety Compliance: Must meet Vermont state standards

State-Level Regulations (Vermont)

Definition and Classification

• Vermont considers STRs as "transient lodging" with typical rental periods under 30 days
• Subject to Vermont rooms and meals tax (9%)
• No single statewide STR license; regulations primarily local

Tax Requirements

• Rooms and Meals Tax: 9% state rate on short-term lodging
• Local Option Taxes: Additional local taxes may apply in certain municipalities
• Platform Collection: Major platforms (Airbnb, VRBO) typically collect and remit state taxes

Safety Standards

• Fire Safety Requirements: Vermont Dept. of Public Safety, Division of Fire Safety standards
• Building Codes: Must comply with Vermont building and safety codes
• Local Enforcement: Local municipalities enforce additional safety and operational requirements

Contact Information

Primary Authority

City of Burlington Housing Division

• Phone: 802-863-0442
• Registration Portal: burlingtonvt.viewpointcloud.com/categories/1085
• General Information: www.burlingtonvt.gov/DPI/Personnel

Tax and Financial

City Clerk & Treasurer's Office

• Gross Receipts Tax Information: www.burlingtonvt.gov/CT/Gross-Receipts-Tax
• Tax Application: www.burlingtonvt.gov/sites/default/files/Updated%20Gross%20Receipt%20Application.pdf

Permitting and Inspections

Department of Permitting and Inspections

• Permit Applications: burlingtonvt.viewpointcloud.com/projectTempla te/13
• Personnel Contact: www.burlingtonvt.gov/DPI/Personnel

State Resources

Vermont Dept. of Public Safety, Division of Fire Safety

• STR Safety Standards: firesafety.vermont.gov/document/short-turm-rental-health-and-safety

Source Links

1. Burlington STR FAQ and Registration: www.burlingtonvt.gov/DocumentCenter/View/693/City-of-Burlington-Short-Term-Rental-FAQ-PDF
2. Code of Ordinances - Chapter 18: www.codepublishing.com/VT/Burlington
3. STR Registration Portal: burlingtonvt.viewpointcloud.com/categories/1085
4. Permit Applications: burlingtonvt.viewpointcloud.com/projectTempla te/13
5. Gross Receipts Tax Application: www.burlingtonvt.gov/sites/default/files/Updated%20Gross%20Receipt%20Application.pdf
6. Gross Receipts Tax Information: www.burlingtonvt.gov/CT/Gross-Receipts-Tax
7. Vermont Fire Safety Standards: firesafety.vermont.gov/document/short-turm-rental-health-and-safety
8. Personnel Directory: www.burlingtonvt.gov/DPI/Personnel
9. Recent Legal Context: www.burlingtonfreepress.com/story/news/local/vermont/2024/12/04/burlington-vt-short-term-rentals-restrictions-airbnb-vrbo-housing-shortage/76733581007/

Important Note: Burlington's STR regulations underwent legal challenge in 2024, but a Vermont judge ruled that the city has the legal authority to regulate short-term rentals. The regulations remain in effect and enforceable. Investors should verify current requirements before proceeding, as local regulations can evolve.