Sherrill addresses how county taxes Airbnb properties
8:58 p.m. Feb. 10, 2026
Property Assessor Shaun Sherrill
DUANE CROSS
MCO Publisher•Editor
Moore County Property Assessor Shaun Sherrill explained to the local MUD board on Tuesday that the main factor in taxing short-term rental properties is whether the owner lives in the home.
At the board’s Feb. 10 meeting, Sherrill said that bed-and-breakfast or Airbnb-style properties without a resident owner are taxed as commercial. If owners live in the home at least part of the time, the property is taxed as residential.
“We do our best to try to catch them,” Sherrill said. He explained that his office uses business licenses, tax filings, and other information, but short-term rental platforms often do not share ownership details or property addresses, which makes enforcement hard.
Sherrill said that if operators follow the rules, they should pay hotel occupancy taxes and personal property taxes related to running a business.
Board member Glen Thomas noted that online listings show more short-term rentals in the area than are listed in tax or utility records. He questioned whether it is fair that only a few properties pay commercial rates.
Sherrill said his office keeps lists of commercial and residential uses based on how a property is used, not just its zoning. For example, a business in a detached shop may be taxed as commercial, while the main house stays residential. A regular home office would not be classified as commercial unless there is clear business activity and signage.
The board also briefly discussed how to set utility rates for short-term rentals. Thomas went so far as to suggest returning known properties to residential rates if all rentals cannot be identified.
Board Chairman Barry Posluszny said staff are working to make a full list before deciding on any changes.
No formal action was taken, and officials said the issue may come back on a future agenda after more information is collected.
