Tobyhanna Township Short-Term Rental: Application, Inspection & Taxes

To operate a Tobyhanna Township short-term rental permit lawfully, you need an approved application through the township, proof of state and Monroe County lodging tax registration, at least $500,000 in liability insurance, a passing safety inspection, and payment of a $600 initial fee ($500 at each annual renewal). Chapter 114 of the township code governs any property rented as overnight lodging for fewer than 30 days, and operating without a permit draws fines of $500 to $1,000 per day.

Who Can Apply

Short-term rentals are a permitted use in six zoning districts: R-1 (Low-Density Residential), R-2 (Medium-Density Residential), R-3 (High-Density Residential), C-1 (Neighborhood Commercial), C-2 (General Commercial), and M-1 (Industrial).¹ That reaches most residential property in the township, so eligibility is broad.

Township zoning is not the last word. Private covenants in a homeowners association or planned community can independently prohibit short-term rentals, and the township does not enforce those private restrictions. Violating them exposes you to legal action from the HOA, so pull your deed restrictions and community bylaws before you spend money on the permit process.

What Goes in the Application Packet

The township will not start review until the file is complete. Assemble these documents before you submit:

Owner and property contact information, plus a designated “person in charge” reachable 24 hours a day who can physically reach the rental within 30 minutes of being contacted. That person must live or have an office within a 30-minute drive of the property.²
A floor plan showing every level, each bedroom location, and any pools (noting in-ground or aboveground).²
A parking diagram or aerial photo showing the number and location of on-site spaces.
Septic system certification if you are not on central sewer: a septic evaluation and proof the tank was pumped within the past three years. Your advertised bedroom count cannot exceed what the sewage permit approves, and if no sewage permit is on file the rental is capped at three bedrooms unless you prove the system can handle more.²
A certificate showing at least $500,000 in general liability coverage, maintained for the full license term.²
Copies of your current Monroe County hotel room excise tax certificate and your Pennsylvania sales and use tax permit certificate. Tax identification numbers may be redacted.²

The township will also check that property taxes are current and that you hold active licenses from Monroe County and the Pennsylvania Department of Revenue for lodging tax collection. Delinquent filings stop the application cold.

Safety Inspection and What You Must Post Inside

A Code Enforcement Officer inspects before the initial permit issues and may inspect again at renewal. Three equipment categories carry hard requirements:

Smoke detectors in every bedroom, in the hallway serving the bedrooms, and on every floor.¹
Carbon monoxide detectors near any fuel-burning appliance and in the hallway serving the bedrooms.¹
Fire extinguishers in the kitchen and near any other fuel-burning appliance, maintained in working order.¹

Your permit must be visibly displayed inside the property at all times. A printed set of house rules has to be posted in a conspicuous spot, covering quiet hours, trash and recycling, parking, emergency contact information, maximum occupancy, a prohibition on outdoor fires (unless you have an approved fire pit), and a prohibition on fireworks.¹ If the inspection turns up deficiencies, you get a correction list before the permit issues.

Occupancy, Parking, and Noise Caps That Control Your Listing

Maximum overnight guests equal two per bedroom plus two. A three-bedroom house caps at eight, regardless of how many beds you set up. Bedroom count is verified through your sewage permit, so you cannot pad it in a listing.² Advertising on every platform must match this limit.

Guest vehicles must park in designated off-street spaces at least 9 feet by 18 feet. No street parking, no grass, no unpaved surfaces.¹ The number of vehicles you can host equals the number of compliant spaces on your parking diagram.

The ordinance prohibits occupants and guests from disturbing the neighborhood through loud noise, offensive conduct, or fighting.² The township encourages installing a noise-monitoring device, because verified data makes complaints easier to resolve. Repeated frivolous complaints from neighbors are also prohibited and can draw a fine of up to $500 against the complainant.

Tax Registrations You Need Before Approval

You owe lodging taxes to both the state and the county before you ever collect a booking payment, and the application will not clear without proof of both registrations.

Pennsylvania Hotel Occupancy Tax

Pennsylvania imposes a 6% hotel occupancy tax on the rent for any room in a “hotel,” and the state definition is broad enough to cover short-term rentals.³ You collect from guests and remit to the Pennsylvania Department of Revenue. If a booking platform collects payment for you, the platform is required to collect and remit the state tax. You still need a Pennsylvania sales and use tax permit on file, and a copy belongs in your township application.²

Monroe County Hotel Room Excise Tax

Monroe County separately imposes a hotel room excise tax, and the township’s definition of “short-term rental” ties directly to the county’s tax ordinance. Your current county excise tax certificate must be in the application.² Some platforms remit this tax automatically, but you still must register with the county and file quarterly reports. Contact Monroe County for the current rate and forms. Failing to register is grounds for the township to deny or revoke your permit.

Federal Income Tax

Rental income is taxable whether or not you receive a Form 1099-K. For 2026, platforms are required to issue a 1099-K only if gross payments exceed $20,000 and you had more than 200 transactions.⁴ Falling under the thresholds does not make the income tax-free. Report it on Schedule E, where eligible expenses like cleaning, maintenance, insurance, property taxes, and depreciation are deductible.

Why the $500,000 Insurance Minimum Is a Floor

Standard homeowners policies typically exclude injuries and property damage that happen while you are renting to paying guests. If a guest is hurt and your insurer finds out the house was operating as a short-term rental without disclosure, the claim can be denied and the policy canceled.

Call your homeowners carrier before you apply and disclose the plan to rent short-term. You may need a supplemental dwelling policy, an umbrella policy, or a specialized short-term rental product. The township requires proof of coverage for the full license term, so any lapse becomes a compliance issue.²

Fees, Renewal, and Penalties

The initial permit is $600. Each annual renewal is $500.⁵ Fees are set by resolution of the Board of Supervisors and can change, so confirm the current amount when you apply. The permit covers a rolling 12-month period, and you can file for renewal up to 60 days before expiration.⁶ Renewals must include updated information on any changes or improvements since the last filing.

Operating without a permit or violating any part of Chapter 114 is treated as a public nuisance. Fines run $500 to $1,000 per violation, plus court costs and the township’s reasonable attorney fees. Each day a violation continues is a separate offense, so costs stack fast.² Conviction can also carry imprisonment to the extent Pennsylvania law allows for summary offenses.

Your permit number has to appear on the listing itself, in whatever designated field the platform provides. If the platform has no such field, include it in the listing anyway.² Completed applications go to the Tobyhanna Township Government Center by mail or in person.

1
Tobyhanna Township. Tobyhanna Township Short Term Rental Ordinance No. 569
2
E-Code 360. Tobyhanna Township Code – Chapter 114 Short-Term Rentals
3
New York Codes, Rules and Regulations. Pennsylvania Consolidated Statutes 7210 – Imposition of Tax
4
Internal Revenue Service. IRS Issues FAQs on Form 1099-K Threshold Under the One Big Beautiful Bill
5
Tobyhanna Township. Frequently Asked Questions – Short Term Rentals
6
Tobyhanna Township. Short Term Rental STR Permits – Township of Tobyhanna