Renting to Visitors: Rules & Tax
Whether you can rent your place short-term in Eureka Springs, and an estimate of the 14.375% lodging tax to add to a booking — the state, county, city and CAPC parts shown separately.
Thinking of renting your place to visitors in Eureka Springs? Two things decide it: where your property is zoned, and the tax on the stay. Here's the plain version — the town's rules first, then a quick estimate of the lodging tax to add to a booking.
Registering your rental
Short-term letting is tightly limited here. Since 2021 the city has treated a home rented to guests for under 30 days as "tourist lodging," and it does not allow new tourist lodging in the residential zones (R-1, R-2, R-3) where most homes sit. New short-term rentals are approved only in the commercial zones, and only with a Conditional Use Permit from the Planning Commission.
- Who has to register
- "Tourist lodging" means letting to guests for stays of under 30 days. A stay of 30 consecutive days or more is a long-term rental and isn't covered by these rules.
- Fee
- A City of Eureka Springs business license (renewed yearly at City Hall) and registration with the CAPC to collect the lodging tax. The city hasn't published a single flat STR fee — City Hall confirms the current business-license cost.
- Renewal
- Renew the city business license every year. The CAPC lodging tax is filed with the commission every month.
- If you don’t
- Operating tourist lodging where it isn't allowed is a misdemeanor; the city can fine up to $250 a day, with each day counted as a separate offense.
New short-term rentals aren't allowed in residential zones
Ordinance 2311 (2021) prohibits new tourist lodging in the R-1, R-2 and R-3 residential zones. A new short-term rental is possible only in a commercial zone (C-1/C-2), and only with a Conditional Use Permit approved at a Planning Commission public hearing.
A handful of homes are grandfathered
About two dozen homes that already held a permit and a business license before the 2021 ordinance keep "legal non-conforming" status. That status is tied to the property — when it changes hands, the new owner generally has to live on-site, and the CAPC has to confirm the permit is current and the taxes are paid.
Get a city business license
Any lodging business needs an annual City of Eureka Springs business license (City Hall, 479-253-9703). Your license number has to appear in your listing.
Register with the CAPC and file the lodging tax monthly
Every operating lodging business registers with the City Advertising & Promotion Commission (CAPC) and files the 3% lodging tax every month — even in a month with no bookings.
Register and file with: City of Eureka Springs — CAPC Commission — The city's tourism commission, which registers lodging businesses and collects the tax.
The lodging tax
A guest renting a room in Eureka Springs for under 30 days pays stacked state, county, city and tourism taxes that come to 14.375%. Here's the split, and what to add to a booking.
| Tax | Rate |
|---|---|
| Arkansas sales tax (state, county & city)6.5% state + 0.5% Carroll County + 2.375% City of Eureka Springs, all remitted to the Arkansas DFA. | 9.375% |
| Arkansas tourism taxThe statewide 2% tax on lodging, remitted to the Arkansas DFA. | 2% |
| Eureka Springs CAPC lodging taxThe city's 3% advertising-and-promotion tax on lodging, remitted to the CAPC and filed monthly. | 3% |
Estimate the tax on a booking
Cleaning, pet or extra-guest fees you charge — these are usually taxable too.
Enter a nightly rate and the number of nights to see the tax.
What’s taxable
The tax applies to the whole lodging charge, including cleaning and extra-guest fees — not just the nightly rate. Only stays of under 30 days are taxed; 30 consecutive days or more is exempt.
Who collects it
Airbnb and Vrbo collect and remit the Arkansas state and local taxes on bookings made through them. The CAPC's 3% is a city tax the platforms may not collect — check with the CAPC whether you have to register and remit that 3% yourself.
An estimate, not tax or legal advice
Voters kept the tax in 2024
The zoning rules can change
Check it against the official sources
- City of Eureka Springs — CAPC Commission — The commission that registers lodging businesses and collects the 3% tax.: https://www.eurekaspringsar.gov/capc-commission
- CAPC — tax forms & online payment — Where lodging businesses file and pay the monthly CAPC lodging tax.: https://capc.biz/tax-collector-forms/
- Arkansas DFA — Sales & Use Tax — Register for a state tax account and file the state and local sales and tourism taxes.: https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/sales-use-tax/
- Arkansas DFA — local tax rate lookup — Confirm the current Carroll County and city rates.: https://www.dfa.arkansas.gov/service/sales-use-tax-rates/
Source: Eureka Springs CAPC ordinance, zoning Ordinances 2311/2364, and Arkansas DFA tax rates, checked 8 July 2026 (today).