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.
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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.
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.
This applies the published rates to the figures you enter. Your own booking, exemptions, or a rule change can move the number. The town and the state tax office have the final word — check the official pages below.
Voters kept the tax in 2024
In November 2024 a ballot measure to abolish the CAPC and its 3% hospitality tax failed, about 71% to 29%, so the tax and the commission remain in force.
The zoning rules can change
The city has amended its short-term-rental and bed-and-breakfast rules more than once since 2021. These are the rules as they stand — check with City Hall and the Planning Commission before you count on letting a specific property.