LicensedRental

Madison County, North Carolina

Mars Hill, NC vacation rental requirements

We found no short-term rental zoning rules in Mars Hill’s code. Stays owe 7% sales tax + 5% county occupancy tax; Airbnb collects these on its bookings.

Checked against official sources November 6, 2026

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Town rental rules
None found
Taxes
7% sales tax + 5% county occupancy tax

Mars Hill’s 2021 zoning ordinance has no short-term rental rules, but it lists tourist homes as a special use in the R-3, R-3A, and R-4 districts without defining the term. Ask the town whether a whole-home rental counts as a tourist home at your address before you list.

Your licensing checklist

In order: the state, the county, then the town.

State of North Carolina

  1. Know who owes the tax

    Whoever collects the rent reports the sales and occupancy tax: the platform, your rental agency, or you. Airbnb collects state and county sales tax and all local occupancy taxes on its bookings. If guests pay you directly, register with the Department of Revenue for sales tax and with your county or town for occupancy tax.Source

    NCDOR business registration →

  2. Use a written vacation rental agreement

    The Vacation Rental Act covers owners and agents renting for vacation stays under 90 days. Have the guest accept a written agreement with the required notices, hold advance payments in a trust account, and keep the home fit and habitable with working smoke and carbon monoxide alarms.Source

  3. Check your zoning

    Towns can’t require you to register a rental, but they can limit short-term rentals to certain zoning districts, require a zoning permit, and set parking, trash, and safety standards. Pick your area for the local rules.Source

Madison County, North Carolina

  1. Taxes on each stay

    Stays under 90 days owe 7% sales tax plus the local occupancy tax. Airbnb collects both on its bookings. If guests pay you directly, file sales tax with the Department of Revenue. For direct bookings, file Madison County’s 5% room occupancy tax report with the county Finance Officer (PO Box 579, Marshall) by the 15th, paying by check or money order.Source

  2. Then your town or area

    Zoning rules for short-term rentals are set by each town, and by the county outside town limits. Pick your area.

Town of Mars Hill

  1. Taxes on each stay

    Stays under 90 days owe 7% sales tax plus the local occupancy tax. Airbnb collects both on its bookings. If guests pay you directly, file sales tax with the Department of Revenue. Madison County’s 5% occupancy tax applies; for direct bookings, file it with the county Finance Officer by the 15th.Source

  2. Ask about zoning

    Ask the Town of Mars Hill whether zoning allows a short-term rental at your address. Check your HOA rules too.

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.