                                 CODE OF VIRGINIA

TRANSIENT OCCUPANCY TAX (§ 58.1-3819)

A. 1. Any county, by duly adopted ordinance, may levy a transient occupancy tax
on hotels, motels, boarding houses, travel campgrounds, and other facilities
offering guest rooms rented out for continuous occupancy for fewer than 30
consecutive days. The tax shall be imposed on the total price paid by the
customer for the use or possession of the room or space occupied in a retail
sale. Such tax shall be in such amount and on such terms as the governing body
may, by ordinance, prescribe.

   2. Unless otherwise provided in this article, any county that imposes a
   transient occupancy tax at a rate greater than two percent shall, by
   ordinance, provide that (i) any excess from a rate over two percent shall be
   designated and spent solely for such purpose as was authorized under this
   article prior to January 1, 2020, or (ii) if clause (i) is inapplicable, any
   excess from a rate over two percent but not exceeding five percent shall be
   designated and spent solely for tourism and travel, marketing of tourism or
   initiatives that, as determined after consultation with the local tourism
   industry organizations, including representatives of lodging properties
   located in the county, attract travelers to the locality, increase occupancy
   at lodging properties, and generate tourism revenues in the locality. Unless
   otherwise provided in this article, for any county that imposes a transient
   occupancy tax pursuant to this section or an additional transient occupancy
   tax pursuant to another provision of this article, any excess over five
   percent, combining the rates of all taxes imposed pursuant to this article,
   shall not be restricted in its use and may be spent in the same manner as
   general revenues. If any locality has enacted an additional transient
   occupancy tax pursuant to subsection C of &#xA7; 58.1-3823, then the governing
   body of the locality shall be deemed to have complied with the requirement
   that it consult with local tourism industry organizations, including lodging
   properties. If there are no local tourism industry organizations in the
   locality, the governing body shall hold a public hearing prior to making any
   determination relating to how to attract travelers to the locality and
   generate tourism revenues in the locality.

B. The tax imposed hereunder shall not apply to rooms or spaces rented and
continuously occupied by the same individual or same group of individuals for 30
or more days in hotels, motels, boarding houses, travel campgrounds, and other
facilities offering guest rooms. In addition, that portion of any tax imposed
hereunder in excess of two percent shall not apply to travel campgrounds in
Stafford County.

C. Nothing herein contained shall affect any authority heretofore granted to any
county, city or town to levy such a transient occupancy tax. The county tax
limitations imposed pursuant to &#xA7; 58.1-3711 shall apply to any tax levied
under this section, mutatis mutandis.

D. Any county, city or town that requires local hotel and motel businesses, or
any class thereof, to collect, account for and remit to such locality a local
tax imposed on the consumer may allow such businesses a commission for such
service in the form of a deduction from the tax remitted. Such commission shall
be provided for by ordinance, which shall set the rate thereof at no less than
three percent and not to exceed five percent of the amount of tax due and
accounted for. No commission shall be allowed if the amount due was delinquent.

E. All transient occupancy tax collections shall be deemed to be held in trust
for the county, city or town imposing the tax.

HISTORY: Code 1950, § 76.1; 1970, c. 443; 1971, Ex. Sess., c. 214; 1973, c.
433; 1974, c. 614; 1983, c. 313; 1984, c. 675; 1985, c. 556; 1992, cc. 263, 834;
1996, c. 833; 1997, cc. 757, 764; 1998, cc. 729, 733; 1999, cc. 233, 234, 241,
253, 260; 2000, c. 470; 2001, cc. 571, 585; 2003, c. 939; 2004, cc. 7, 610;
2005, cc. 76, 915; 2006, cc. 67, 376; 2007, cc. 86, 596, 767; 2008, c. 230;
2009, cc. 13, 31, 116, 497, 513, 524; 2010, c. 505; 2011, cc. 385, 606; 2012, c.
290; 2013, cc. 19, 200, 319, 378; 2014, c. 188; 2015, cc. 57, 78, 98; 2016, c.
51; 2017, c. 23; 2018, c. 293; 2020, cc. 330, 1214, 1263; 2021, Sp. Sess. I, c.
383.