Daily Rental Property Tax
Due dates: Quarterly
- January 20 for the quarter ending December 31,
- April 20 for the quarter ending March 31,
- July 20 for the quarter ending June 30, and
- October 20 for the quarter ending September 30.
Tax rate: One percent (1%) of the gross proceeds.
Description:Localities in Virginia are authorized by the Code of Virginia to levy a tax which cannot exceed 1 percent (1%) on the gross proceeds of a person engaged in the short-term rental business as defined in Virginia Code § 58.1-3510
How does it work: Every person engaged in the short-term rental business shall collect the rental tax from the lessee of the daily rental property at the time of the rental. The lessor shall file a quarterly return with the City and remit with the return the payment of the tax that is due for the quarter.
Exemptions:
No tax shall be collected or assessed on rentals by the Commonwealth, any political subdivision of the Commonwealth or the United States, or any rental of durable medical equipment, as defined in Virginia Code § 58.1-609(7). Additionally, exemptions applicable in Virginia Code § 58.1-600 et seq. shall also apply to the daily rental property tax.
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