                                 CODE OF VIRGINIA

SHORT-TERM RENTAL PROPERTY TAX (§ 58.1-3510.6)

A. The governing body of any county, city, or town may levy a tax in an amount
not to exceed one percent, in addition to the tax levied pursuant to &#xA7;
58.1-605, on the gross proceeds arising from rentals of any person engaged in
the short-term rental business as defined in &#xA7; 58.1-3510.4 B 1.
&#8220;Gross proceeds&#8221; means the total amount charged to each person for
the rental of short-term rental property, excluding any state and local sales
tax paid under the provisions of Chapter 6 (&#xA7; 58.1-600 et seq.) of this
title.

B. The governing body of any county, city, or town may levy a tax in an amount
not to exceed one-and-one-half percent, in addition to the tax levied pursuant
to &#xA7; 58.1-605, on the gross proceeds arising from rentals of any person
engaged in the short-term rental business as defined in &#xA7; 58.1-3510.4 B 2.
&#8220;Gross proceeds&#8221; means the total amount charged to each person for
the rental of short-term rental property, excluding any state and local sales
tax paid under the provisions of Chapter 6 (&#xA7; 58.1-600 et seq.) of this
title.

C. Any person engaged in the short-term rental business, as defined in &#xA7;
58.1-3510.4, in a city, county or town that has adopted an ordinance imposing a
short-term rental property tax pursuant to this section shall collect such tax
from each lessee of rental property at the time of rental and shall transmit a
quarterly return, not later than the fifteenth day following the end of each
calendar quarter, to the commissioner of the revenue of the county or city or
the designated official of the town wherein the tax is collected, reporting the
gross rental proceeds derived from the short-term rental business. The
commissioner of the revenue shall assess the tax due, and the short-term rental
business shall pay the tax so assessed to the treasurer or director of finance
not later than the last day of the month following the end of the calendar
quarter. Any failure to file a quarterly return required by this section or to
pay short-term rental property tax when due shall be subject to the provisions
of &#xA7; 58.1-3510.7.

D. Notwithstanding the provisions of subsections A and B, no tax shall be
collected or assessed on (i) rentals by the Commonwealth, any political
subdivision of the Commonwealth or the United States or (ii) any rental of
durable medical equipment as defined in subdivision 10 of &#xA7; 58.1-609.10.

E. Except for daily rental vehicles pursuant to &#xA7; 58.1-3510 and short-term
rental property, rental property shall be classified, assessed and taxed as
tangible personal property.

HISTORY: 2009, cc. 480, 692; 2010, cc. 255, 295.