Short-Term (Daily) Rental Tax
Due dates are as follows:
Quarter Ending Date Return Due Date Payment Due Date March 31 April 15 April 30 June 30 July 15 July 31 September 30 October 15 October 31 December 31 January 15 January 31
Computation of Tax
The tax is one percent of gross receipts from the rental of short-term rental property, excluding heavy equipment as defined below. The tax is 1.5 percent of gross receipts from the rental of heavy equipment.
Some rentals are exempt from taxation. (See exemptions below.)
Exempt from Taxation
The following rentals are exempt from the daily rental tax:
- Rentals of tangible personal property to the Commonwealth of Virginia, to any political subdivision of the Commonwealth or to the United States;
- Rentals of durable medical equipment, as this term is defined in section 58.1-608(7)(b) of the Code of Virginia (1950), as amended; and
- Rentals of tangible personal property which, if the subject of a sale, would be exempt from the state sales and use tax pursuant to chapter 6 of title 58.1 of the Code of Virginia (1950), as amended. (Ord. No. 3411, 11/18/89, Sec. 1)
- Gross proceeds - The total amount charged to persons, including late charges and interest, for the daily rental of property by a short-term rental business, excluding any State and local taxes.
- Short-term rental business - A business that generates
- a minimum of 80% of its yearly gross proceeds from rental transactions, excluding heavy equipment rentals, involving rental periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee; and/or
- a minimum of 60% of its yearly gross proceeds from the rental of heavy equipment property for periods of 270 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee.
- Heavy equipment - primarily construction equipment for large equipment rental for most non-consumer uses.
For forms, tax payments and inquiries, contact:
Tax Services & Enforcement
301 King Street, Room 1700
Alexandria, Virginia 22314