[Code 1991, § 17-316]
The following words, terms and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
All tangible personal property held for rental and owned
by a person engaged in the shortterm rental business, except trailers,
as defined in Code of Virginia, § 46.2-100, and other tangible
personal property required to be licensed or registered with the State
Department of Motor Vehicles, the State Department of Game and Inland
Fisheries, or the State Department of Aviation.
The total amount charged to each person for the rental of
daily rental property, excluding any state and local sales tax paid
pursuant to the Virginia Retail Sales and Use Tax Act (Code of Virginia,
§ 58.1-600 et seq.).
A business where not less than 80% of the gross rental receipts
of such business in any year are from transactions involving rental
periods of 92 consecutive days or less, including all extensions and
renewals to the same person or a person affiliated with the lessor.
The word "affiliated," for purposes of this subsection, shall mean
any common ownership interest in excess of 5% of any officers or partners
in common with the lessor and lessee. For purposes of this article:
A.
Any rental to a person affiliated with the lessor shall be treated
as rental receipts but shall not qualify for purposes of the 80% requirement;
and
B.
Any rental of personal property which also involves the provision
of personal services for the operation of the personal property rented
shall not be treated as gross receipts from rental. For purposes of
this subsection, the delivery and installation of tangible personal
property shall not mean operation.
[Code 1991, § 17-317]
Pursuant to Code of Virginia, § 58.1-3510.1, there
is hereby assessed and imposed on every person engaged in the short-term
rental business a tax of 1% on the gross proceeds of such business.
Such tax shall be in addition to the tax levied pursuant to Code of
Virginia, § 58.1-605.
[Code 1991, § 17-318]
A.
Except for daily rental passenger cars, rental property that is not
daily rental property shall be classified for taxation pursuant to
Code of Virginia, § 58.1-3503.
C.
All exemptions applicable in Code of Virginia, § 58.1-600
et seq., shall apply mutatis mutandis to the daily rental property
tax.
[Code 1991, § 17-319]
Every person engaged in the shortterm rental business shall
collect the rental tax from the lessee of the daily rental property
at the time of the rental. The lessor of the daily rental property
shall transmit a quarterly return to the Commissioner of the Revenue,
indicating the gross proceeds derived from the short-term rental business,
and shall remit therewith the payment of such tax as is due for the
quarter. The quarterly returns and payment of tax shall be filed with
the Commissioner of the Revenue on or before April 20, July 20, October
20 and January 20, representing, respectively, the gross proceeds
and taxes collected during the preceding quarters ending March 31,
June 30, September 30, and December 31. The return shall be upon such
forms and set forth such information as the Commissioner of the Revenue
may require, showing the amount of gross receipts and the tax required
to be collected. The taxes required to be collected under this article
shall be deemed to be held in trust by the person required to collect
such taxes until remitted.
[Code 1991, § 17-320]
A.
Every person engaging in the business of shortterm rental of tangible
personal property shall file an application for a certificate of registration
with the Commissioner of the Revenue. The application shall be on
a form prescribed by the Commissioner of the Revenue and shall set
forth the name under which the applicant intends to operate the rental
business, the location and such other information as the commissioner
may require.
B.
Each applicant shall sign the application as owner of the rental
business. If the rental business is owned by an association, partnership
or corporation, the application shall be signed by a member, partner,
executive officer or other person specifically authorized by the association,
partnership or corporation to sign.
C.
Upon approval of the application by the Commissioner of the Revenue,
a certificate of registration shall be issued. The certificate shall
be conspicuously displayed at all times at the place of business for
which it is issued. The certificate is not assignable and shall be
valid only for the person in whose name it is issued and the place
of business designated.
[Code 1991, § 17-321; Ord. No. 00-04, 2-22-2000]
If any person whose duty it is to do so shall fail or refuse
to collect the tax imposed under this article and make timely report
and remittance thereof, the Commissioner of the Revenue shall proceed
in such manner as is practicable to obtain facts and information on
which to base an estimate of the tax due. As soon as the commissioner
has procured whatever facts and information obtainable upon which
to base the assessment of any such shortterm rental tax, the commissioner
shall proceed to determine and assess against such person the tax,
penalty and interest provided in this article and shall notify the
person by certified mail, sent to his last known address, of the amount
of such tax, penalty and interest. The total amount thereof shall
be payable within 10 days after the date such notice is sent.
[Code 1991, § 17-322]
Any person violating or failing to comply with any provision
of this article shall be guilty of a Class 3 misdemeanor; provided,
however, that if the amount of tax due and unpaid for any quarterly
installment exceeds $1,000, any person failing to remit such payment
when due shall be guilty of a Class 1 misdemeanor.
