Rental Property Tax

1. What is the short term rental property tax and what is the tax rate?
2. When must the short term rental property tax return be filed and when must the tax be paid?
3. What is the penalty for late payment on the short term rental property tax?
4. How do I register to file the short term rental property tax with the Finance Department Revenue Division?
5. Where can I get information about the short term rental property tax?

What is the short term rental property tax and what is the tax rate?
The short term rental property tax is collected by businesses that derive at least 80 percent of their rental receipts (excluding the rental of vehicles licensed by the state) from rental of personal property for 92 consecutive days or less. The tax rate is 1 percent charged to the consumer at the time of rental payment. For additional information, please visit the Finance Department Revenue Division website or call (804) 501-7329.

 

When must the short term rental property tax return be filed and when must the tax be paid?
The tax is collected by the rental business and held in trust for the county. The business is required to file a short term rental property tax return and remit all taxes it has collected on a quarterly basis. For additional information, please visit the Finance Department Revenue Division website or call (804) 501-7329.

 

What is the penalty for late payment on the short term rental property tax?
There is a 6 percent penalty per month if the remittance is late, but the penalty shall not be less than $10. The penalty, however, will not exceed 30 percent of the total tax. In addition to the penalty, interest is charged on the late payment in accordance with Code of Virginia Section 58.1-15. For additional information, please visit the Finance Department Revenue Division website or call (804) 501-7329.

 

How do I register to file the short term rental property tax with the Finance Department Revenue Division?
If you are engaged in the rental of personal property rented for 92 consecutive days or less, and at least 80 percent of your rental receipts are derived from property of such a nature, you may register for the short term rental property tax. All businesses that collect the daily rental property tax are required to file an application and be certified every year in order to collect the tax. For additional information, please visit the Finance Department Revenue Division website or call (804) 501-7329.

 

Where can I get information about the short term rental property tax?
Please visit the Finance Department Revenue Division website or call (804) 501-7329.