The rental of homes, apartments or rooms on a short-term basis requires the person engaged in such activity to register with the Commissioner of the Revenue. The registration process requires that applicants have a photo ID and proof of ownership or leasehold interest.
If you are short-term renting a whole home, you are required to pay a $50 annual registration fee and you must collect and remit the appropriate lodging taxes from your renters.
If you are short-term renting a portion of your home, you are required to first obtain a business license and you must collect and remit the appropriate lodging taxes from your renters.
Failure to register subjects you to a $500 per day fine for each day property is offered for rent.
The tax for lodging is 8% (9% effective May 1, 2021) of the total amount paid for lodging, plus an additional flat tax of two dollars ($2.00) for each night the lodger rents. If the rental is located in Sandbridge, the tax rate is 9.5%, (10.5% effective May 1, 2021) of the total amount paid for lodging plus an additional flat tax of two dollars ($2.00) for each night the lodger rents.
If you are renting property on your own without using a real estate company or 3rd party facilitator, you must register with the Department of Taxation to remit Virginia State Sales Tax.
For more information on vactaion rentals properties, please contact the business license division at 757-385-4515 or visit the
business license webpage.