Regulation & Licensing · 2026
What the Law Requires in Harpers Ferry & Shepherdstown
West Virginia taxes the stay through sales taxes and local hotel taxes, and Airbnb now collects most of them on its bookings. Airbnb's West Virginia page says it collects the 6 percent state sales tax and the 1 percent municipal sales and use tax on reservations of 30 nights or fewer, on the listing price including cleaning and guest fees, and that it collects all locally imposed hotel occupancy taxes on West Virginia reservations of 29 nights or fewer. That follows state law: since January 1, 2022, a marketplace facilitator with at least $100,000 of West Virginia gross revenue or 200 or more transactions in the current or previous year must collect and remit the hotel occupancy tax to the counties and towns, under Section 7-18-4(b) of the state code. The State Tax Division doesn't administer the hotel tax itself; each county and town does, and the division's contact list gives the rates here as 6 percent for Jefferson County, Shepherdstown, Charles Town and Ranson, and 5 percent for Harpers Ferry and Bolivar. All five towns also levy the 1 percent municipal sales tax: Bolivar, Charles Town and Ranson since July 1, 2015, Harpers Ferry since July 1, 2016, and Shepherdstown since July 1, 2017. Unincorporated county land pays the state sales tax and the county hotel tax but no municipal sales tax. On direct bookings, every one of these is yours to collect and file.
The Town of Harpers Ferry is the most open of the towns. Article 1311 of its codified ordinances lists short-term rentals, including bed-and-breakfast inns, vacation rentals and hostels, as a permitted use in the Residential district, provided the operator holds a valid town business license, pays every applicable tax, including the town's business and occupation, sales and use and room occupancy taxes, and follows the town's ordinances on parking, noise and lighting. The town's room occupancy tax under Article 753 is 5 percent, set by Ordinance 2015-13 and in force since July 1, 2016. It defines a hotel broadly enough to take in condominiums, lodges, cabins and tourist homes, exempts anyone staying 30 or more consecutive days, and is due quarterly, by the 15th day of the month after each quarter, with reporting waived when a quarter's tax comes to less than $30; late payment costs 5 percent for the first quarter and 1 percent a quarter after that. Returns for the town's B&O tax are quarterly as well, with payment due by the end of the month that follows each quarter. The return has no lodging line: it lists bed-and-breakfasts under service businesses at $1.00 per $100 of gross income, and rent income at the same rate, so ask the town which class your rental files under. Parking is the practical rule. Only town-licensed short-term rentals and bed-and-breakfasts in the Residential zone can buy lodging guest parking permits, at $30 for a packet of ten for 2026; each permit expires three days after you issue it, reserves no space, and isn't valid on Washington Street or Potomac Street. The town also has a Historic Landmarks Commission and historic district standards in an appendix to its code, so check them before you change anything outside the house. Bolivar is a separate municipality with the 5 percent hotel tax and the 1 percent sales tax; we didn't review its ordinances, so ask the town what applies.
Shepherdstown draws tighter lines. Its zoning chapter defines short-term rental housing as a dwelling offered to renters, tourists or transients for less than four months, and treats it as a boardinghouse whether or not the owner lives there. Section 9-214, added in December 2011, calls it a business like the town's other transient lodging businesses, says it isn't a home occupation, and applies every town ordinance to it, including the parking regulations and the license tax for lodging businesses in Section 8-209. Transient lodgings are a permitted use in the RC, residential-commercial, district for buildings of up to 3,000 square feet, and by reference in the C, commercial, district. The R-1 district lists no lodging use, and R-2 allows bed-and-breakfasts and boarding and lodging homes not primarily for transients only as special exceptions, with one off-street parking space per rental unit. At its meeting on January 8, 2019, the town council dismissed a motion to allow transient lodging in the historic district, where a task force had proposed allowing it in primary residences with a business license, inspections and guest parking passes or off-street parking. We found no later amendment in the chapter the town posts, so confirm with town hall before you buy. Charles Town's zoning ordinance, enacted on June 18, 2012, and last amended on September 8, 2026, doesn't name short-term rentals at all. It defines a bed-and-breakfast inn as owner-occupied and lists it in its use table, treats a use that isn't permitted in a district as excluded there, and gives the zoning administrator the call on whether an unlisted use fits a district, a decision that can be appealed to the Board of Zoning Appeals. The city also runs a rental registration program under Article 136, Ordinance 2025-005, which covers all rental housing units with a few exceptions such as hotels; its page doesn't say whether a short-term rental must register, so ask before you list. We couldn't open Ranson's website or its code when we checked on October 29, 2026, so ask the city directly; its hotel tax is 6 percent and its sales tax 1 percent.
Outside the towns, Jefferson County regulates short-term rentals through its Zoning and Land Development Ordinance, as amended January 22, 2026. The county defines a short term rental as a dwelling unit offering overnight stays of less than seven consecutive days, and Section 8.16, which the ordinance tags to text amendment ZTA21-01, effective December 2, 2021, allows one anywhere a single-family dwelling is allowed. The standards are short. The rental may have no greater effect on its neighbors than a typical home, all parking must be off the street, and it may not operate as a special event facility, hosting large gatherings such as family reunions, birthday parties, weddings or business meetings, unless it's approved under the county's special event facility rules. Every rental needs a Zoning Certificate; the application includes a sketch showing enough off-street parking for the maximum number of occupants, any sign, limited to one of no more than four square feet, a copy of your state business license and, where required, Health Department approval. The county also says it won't enforce or get involved in deed restrictions, covenants or other private agreements, and leaves it to the owner to research them, which matters in any subdivision with covenants of its own. This section is orientation, not legal advice. Check every rule that touches your house with the town or city, the county, the State Tax Division and any homeowners association before the listing goes live. Cavmir handles the marketing side; the zoning certificate, the licenses and the tax returns stay with you and the West Virginia professionals you hire.