Comprehensive Guide to Short-Term Rentals (STRs) in Strasburg, Pennsylvania

1. Overview: Is STR Operation Allowed in Strasburg?

STRs are explicitly prohibited in Strasburg, PA. The official Zoning Ordinance (Ordinance 2019-1) bans STRs in all zoning districts:

“Short-term rentals are expressly and specifically prohibited by this Ordinance in all Zones.”
This prohibition applies regardless of property type or zoning classification. Investments in STRs for properties within Strasburg Borough boundaries are not viable under current law.

2. How to Start an STR Business in This Market

For Strasburg Investors:

• Option A: Operate outside Strasburg. Consider neighboring Lancaster County municipalities (e.g., Lancaster City, Lititz, Manheim) which allow regulated STRs.
• Option B: Pivot strategy. Explore traditional long-term rentals, bed & breakfasts (B&Bs) (explicitly permitted under the ordinance), or alternative commercial uses permitted in local zoning districts.

Market Alternatives Near Strasburg:
| Municipality | STR Status | Key Regulations |
|--------------|------------|-----------------|
| Lancaster City | Allowed (Limited Types) | Standard STR (full home) requires zoning compliance certificate & transient dwelling license; Homestays (owner-occupied) permitted with restrictions. |
| Manheim (Borough) | Regulated | Permit required; occupancy caps; tax compliance. |
| Strasburg (Township) | Not covered in sources | Check individual township ordinances. |

Source: Lancaster County STR Overview (LancasterOnline)

3. Required Documents, Permits, and Licenses

Strasburg Borough:

• None required for STRs (operation prohibited).
• B&Bs: Permit/approval per zoning ordinance required.

State-Level Requirements (If Operating Elsewhere in PA):

• Sales & Hotel Occupancy Tax:
  • Register with the PA Department of Revenue (pa.gov/revenue).
  • Collect 6% state tax + local hotel taxes (varies by county: Lancaster County = 3% local tax).
• Business Registration: Optional (PA does not mandate for sole proprietorships).
• Insurance: Standard homeowner’s policies often exclude STRs. Obtain liability coverage (e.g., HOSTCONTINENTAL or VRBO host liability).
• Personal Income Tax: Report rental income (subject to PA’s 3.07% flat rate).

County-Level:

• Lancaster County: Contact the Lancaster County Tax Collection Committee for local hotel tax registration (pacounties.org).

4. Specific Regulations: City, County, and State

Strasburg Borough:

• Prohibition: STRs banned in all zones (Zoning Ordinance §________).
• Legal Basis: Aligns with PA Supreme Court ruling in Slice of Life v. Hamilton Township (2019), which upheld municipal bans on transient commercial use in residential zones.

Lancaster County:

• Varied: Regulations differ by municipality. Examples:
  • Lancaster City: License & zoning compliance for non-owner-occupied STRs.
  • Manheim: Permit, insurance, and occupancy caps.
  • Strasburg Township: Unknown (check local ordinances).

Pennsylvania State Law:

• Zoning Authority: Municipalities have full autonomy to regulate/ban STRs (Slice of Life precedent).
• Taxation:
  • State hotel occupancy tax: 6% (all STRs considered "hotels").
  • Local hotel taxes: Lancaster County rate = 3% (adds to state tax).
• Insurance: No state mandate, but liability coverage strongly recommended.
• Record-Keeping: Required for tax reporting; must retain guest records for 2 years.

5. Contact Information

| Entity | Phone | Email | Website |
|--------|-------|-------|---------|
| PA Dept. of Revenue | 717-783-1405 | ra-revtaxvrc@pa.gov | pa.gov/revenue |
| Lancaster County Tax Collection Committee | — | — | pacounties.org/tcc |
| Strasburg Borough (Zoning Officer) | — | — | stra Borough Official Site |
| Lancaster City (STR Licensing) | 717-291-4700 | — | cityoflancasterpa.gov/short-term-rentals |

6. Key Source Links

• Strasburg Zoning Ordinance (STR Ban): ecode360.com Zoning PDF
• PA Hotel Occupancy Tax Guide: pa.gov/revenue/home-sharing
• Lancaster County Hotel Tax Rates: pacounties.org Hotel Tax PDF
• State-Level STR Study: jsg.legis.state.pa.us STR Report

Critical Takeaway for Investors

Strasburg, PA is closed to STRs. Investors must look to neighboring municipalities within Lancaster County (e.g., Lancaster City) for viable STR opportunities. Compliance with state/federal tax laws and municipal zoning requirements remains mandatory regardless of location.

Disclaimer: This guide uses only the provided content. For investment decisions, verify current regulations directly with municipal authorities.