General Information

All individuals, partnerships or corporations engaged in the business of renting daily rental property are classified as retail merchants for City business license tax purposes. Such merchants, if they meet the definition of a short-term rental business (see below), must collect from consumers a tax on all daily rentals in lieu of a personal property tax on the property.

Computation of Tax

The tax is one percent of the daily rental charge.

Definitions

Daily rental property - All tangible personal property held for rental and owned by a person engaged in a short-term rental business.

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 involving rental periods of 92 consecutive days or less.

How the Tax is Collected - Every entity collecting the tax must report and pay taxes quarterly to the City.

Established businesses - All daily rental businesses previously certified as short-term rental businesses must file annual short-term rental applications and pay a retail merchant's license tax by January 31 of each year.

New businesses - New businesses must apply for classification as a short-term rental business within 30 days of beginning business. For short-term rental applications and quarterly tax report forms, tax payments and inquiries, contact:

Taxpayer Assistance
301 King Street, City Hall
Alexandria, Virginia 22314
703-838-4570

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