The rental of homes & apartments and other such property on a short-term basis requires the person engaged in such activity to register with the Commissioner of the Revenue. Applicants must provide a photo ID and proof of ownership or leasehold interest to register.
If you rent your entire property while not residing there, you are required to register with the Commissioner of the Revenue and pay a $50 fee. You are then required to collect and remit the appropriate lodging taxes from your customers.
If you reside at the property and rent a portion of your home, you are required to first obtain a business license. You are then required to collect and remit the appropriate lodging taxes from your customers.
Failure to register whole-home rentals subjects you to a fine of $500 for EACH DAY the property is offered for rent.
The tax for lodging is set by Virginia Beach City Council and is 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 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 vacation rentals properties, please contact the Business Taxpayers Division at 757-385-4515 or email
business@vbgov.com.