Transient Occupancy Tax
The transient occupancy tax, also known as the lodging tax or accommodations tax, is levied on the total amount paid by the consumer for the use or possession of a room or space occupied for lodging for any period of less than thirty (30) continuous days. The rate of tax is 7%.
Every accommodations intermediary or accommodations provider receiving payment for the use or possession of a room or space occupied for lodging must collect the tax from their guest or payer at the time payment for such rental is made. The tax is computed on the total price paid, added to the gross amount, collected and held in trust for the County.
The intermediary or provider must not in any way suggest or indicate that they will relieve the guest or payer of payment of part or all of this tax.
Reports and remittances
Accommodations providers must file and report their total gross receipts from all sources on a monthly basis using the return form provided by the Commissioner with a copy of financial reports from accommodations intermediaries (if applicable), and remit the tax for the portion of gross receipts collected.
Accommodations intermediaries, as defined by the General Assembly, must file, report and remit transient occupancy tax on the total amounts charged for the sale of accommodations and/or the amounts charged in excess of the price paid to the hotel for the room on a monthly basis using forms provided by the Commissioner.
The return form and payment are due to the Commissioner of the Revenue on the twentieth (20th) day of the month for the tax collected during the preceding month. Failure to remit the tax by the filing due date shall result in a late payment penalty of 10% and interest that accrues daily at the rate of 10% per annum. A filing is required to be submitted each calendar month even when gross receipts are zero and no tax is due.
Every accommodations provider (business or individual) offering or receiving payment for the use or possession of a room or space occupied for lodging of a property located within Franklin County for a period of less than thirty (30) days is required to submit a New Business Registration form and Transient Occupancy Application to the Commissioner of the Revenue to register the short-term rental business for local taxation.
Accommodations intermediaries and real estate companies facilitating the sale of accommodations for a period of less than (30) days are required to submit a New Business Registration form to the Commissioner of the Revenue for collecting, filing, and remitting the taxes on behalf of accommodations providers.
Personal Property Tax
Pursuant to the Code of Virginia § 58.1-3515, Franklin County does assess personal property tax on all tangible personal property used in a business and located within our locality on January 1st of each year. Every Spring a Business Personal Property Form is mailed to obtain information on personal property used to operate the short-term rental business to generate a tax assessment. The business personal property return filing deadline is May 1st.
Forms and Documents
- New Business Registration Form Print or Submit online
- Transient Occupancy Tax Application Print or Submit online
- Monthly Transient Occupancy Tax Return Form
- Transient Occupancy Tax Ordinance 13-12-2021
- 2021 Transient Occupancy Tax - Virginia Acts of Assembly
- 2021 Transient Occupancy Tax - Letter to Registered Accommodations Providers
- 2021 Transient Occupancy Tax - Letter to Accommodations Intermediaries and Hotels
- 2021 Transient Occupancy Tax - Letter to Unregistered Accommodations Intermediaries
For further information, contact the Commissioner of the Revenue Office at (540) 483-3083, option 2 or via email: CORBusiness@franklincountyva.gov.
Short-Term Rental of Real Estate Zoning Regulations
If you are planning to rent a property that you own or any space out of the property for lodging on a short-term basis (30 continuous days or less), you are required to obtain approval and register the property for use as a short-term rental with the Department of Planning & Community Development before beginning this activity.
For information on short-term rental zoning regulations, approval and how to register your property for short-term rental use, contact the Planning office at (540) 483-3027 or visit: www.franklincountyva.gov/729/Short-Term-Rentals.