Registration and taxes in Virginia Beach

[Tim-And-Lisa0]

They just passed legislation in Virginia Beach stating that all AirBnb hosts have to register and pay an 8% tax.  We are Airbnb hosts in the town next door, Norfolk. Can anyone offer advice on how to find out if we need to register and, if so, how?  Also, will Airbnb help us to collect these taxes or do we need to pay it on our own?

Thanks for your help.

[Kip0]

Hey all - we're having a Meet Up this Monday Oct 9th 2017 at 7pm at the Back Deck up on Shore Drive.  We have also set up a Meet Up group called Coastal VA Home Sharing Club.  We'll start having regular meet ups now and will be using that site to communicate. That is the external Meet Up site as we have not been able to get set up on the similarly named section of the AirBnB community. Thanks! Kip

[Lynn162]

Do you know that short term rental amendments and restrictions are moving

 Through VB Planning Commission Dec 13 2017 at noon.?

[Kip0]

@Tim-And-Lisa0 

The City of Norfolk is having two town halls in November to present a pending ordinance for the city of Norfolk Virginia.

The first is 6pm Mon Nov 13 2017 at the Pretlow Library and will feature a presentation by a professor from ODU on the economic impacts of AirBnB.  Then a City attorney will present Norfolk's proposed ordinance.

The second is 6pm Thurs Nov 16 2017 at the Virginia Arts Festival building on Bank St.  A local law firm attorney will present info about the State AirBnB legislation followed by one of the city attorney's that will present Norfolk's proposed ordinance.

[John-and-Jennifer0]

@Kip0 Hello Kip, we are fellow Airbnb hosts in Virginia Beach, and are really interested in meeting up with other folks!  Also, I'm concerned after reading your information and paying State tax to Virginia:/  We are registered with Virginia Beach, and pay our flat tax and 8% monthly to Va Beach, but we didn't know anything about paying the State of Virginia too?  Could you offer some more information on this, or is this income tax that goes to the state?  Thanks so much!  We would love to get some sort of "meet up" started!  Thank you, Jenn

[John-and-Jennifer0]

We found the info on the meet up, and hope to join you on 11/13.  Still worried about the State tax though! 🙂

[Kip0]

@John-and-Jennifer0  There is consensus among those of us obsessed with compliance that Virginia state sales tax must be collected for short term rentals.  You should of course consult a tax advisor or decide on your own but here is the basic reason I collect and remit the 6% state sales tax (5.3% plus 0.7% for Hampton Roads) in addition to the 8% lodging tax and $2 per night flat tax for the City of Virginia Beach.  State income tax is SEPARATE from this and you should confirm with a tax advisor if the taxable income tax for state purposes should be before or after the sales taxes.

1. Per the Retail Sales and Use Tax on the official Virginia Tax website: In general, all sales, leases, and rentals of tangible personal property, as well as accommodations and certain taxable services, are subject to Virginia Sales and Use Tax, unless an exemption or exception is established. The exceptions are very specific and I see no exceptions or exemptions for short term lodging (vs long term lodging of 91 days or more). 

2. There is a ruling by the State Tax Commissioner that specifically states that rentals of vacation homes to transient occupany is taxable for sales and use tax purposes.  Transient is anything 90 days and fewer.  https://www.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/15-196

3. If you look at the various studies and presentations and discussions on the City of Virginia Beach Commissioner of Revenue site, you will see that 6% state sales tax pop up particularly when discussing the total collectible tax amount of 14% for most of Va Beach and 15% for Sandbridge. The City of Virginia Beach has made the determination that the 6% sales tax for the State should be collected and that features as part of its analysis of the impact AirBnB is having on tax revenue collections.

The state has posted an amnesty notice through Nov 14th and since the City of Virginia Beach knows about you and I would say pretty safe to say all the tax collectors are friends might be a good time to square up!

I login and pay here and you can register through links:

https://www.business.tax.virginia.gov/VTOL/Login.seam

Hope this is helpful!

[Lynn162]

Do you all know amendmen's and restrictions are currently being reviewed at VB Planning Commission.

Hearing set for Dec. 13 2017 at noon.

[Kip0]

@Lynn162 - I had not heard about something that specific so thanks for sharing.  I'll spread the word.

[Lynn162]

They already had a workshop. If you have properties in Virginia Beach

go to the City Council minutes from November 7th - vbgov.com

the amendments should be there and the powerpoint.

Workshop already happened this week. 

You can go to youtube Virginia Beach City Council November 7, 2017

to find the city attorney going over the powerpoint

I can try to add the link later.

[Kip0]

@Lynn162 thank you for staying on top of this!  I had heard rumblings but didn't realize it was this far along.

I called the Planning Commission and they said that the ordinances are being proposed by the Planning Department and the City Attorney but still have to be ratified by Planning Commission.  If ratified by Planning Commission on December 13 2017 they go to the City Council for vote usually within 30 days.

Many of the proposed ordinances are onerous on hosts particularly those with multiple properties, rent for shorter than a week, or are not used to navigating the incredibly opaque website of the city of Virginia Beach.

Fellow Virginia Beach hosts, most of us missed these workshops but there is still time for us to have our voices heard but that time is NOW!

[Heather313]

@Kip0 My husband and I are just starting to put our property up for sharing. Is it easier to just go to the Virginia Beach Commissioner of Revenue Office or register on their website?

[Kip0]

@Heather313 Unfortunately it's still 1970 at the Virginia Beach Commissioner of Revenue so you have to physically go and register if you want any hope of minimizing your frustration. Also be aware that a whole slew of new regulations are working their way to City Council. I personally think they're onerous but manageable but I would encourage you to go to the MeetUp site for Coastal Virginia Home Sharing Club where details and updates are being posted.

However, you can and should register for State of Virginia sales tax online as it's an easy system.  See my previous posts for full details.

[Jan104]

Hello, other people who need people...especially Kip! I can already tell you are a person who needs people just from reading your posts! I think that describes most of us who choose to share part of our homes with other people who need people. lol. Enough of that...haha. This summer will be my fourth summer with Airbnb and I still love telling people, " I have a Bnb with Airbnb!" More on that later. I honestly think it is time for those of us who have Airbnbs in Va Beach to join together, plan and attend a city council meeting. The formal meetings are held on the first and third Tuesdays of each month at 6:00 p.m. Unfortunately, the taxes and regulations for having an Airbnb are not a State of Virginia issue, they are a city to city issue. So, it would not be beneficial to meet with hosts from other cities in Hampton Roads for these issues. If we were addressing an issue with Airbnb, I would definitely suggest hosts from all Hampton Roads cities meet. 

Certainly, hosts from each city could collaborate on these issues prior to attending our respective citys' council meetings so even city to city we  present a strong force. Sidebar~~~~how could ANYONE, with a resonable degree of common sense and intelligence, doubt the advice of those who came before us, when their wisdom has been validated over and over? End Sidebar~~~Machiavelli said, "Might makes right." So, as Airbnb hosts in Virginia Beach, if we want to take on the tax issues and recent regulations that have been proposed, we need to present a strong front to City Council.  I have SO MANY issues with how Airbnb has been accepted in Va Beach!!! UBER has had rapes, molestations, etc. occur. I haven't seen THAT on the front page of the Pilot. REALLY! If it wasn't for my Bnb at the North End Near Fort Story, Shore Drive Restaurants would be a lot poorer!!! Most of my guests make ONE visit to the strip.  They spend the rest of their stay at the Beach catering to the restaurants on Shore Drive! I wonder if that has anything to do with the fact that most of the businesses on Shore Drive are considered "small businesses" and not the mega tacky hotels on the oceanfront that bring in more revenue.

I apologize for ranting,,,, I am so frustrated with what is happening to Virginia Beach! I can't take that on, but I can take on the way City Council treats citizens who ALSO bring revenue into Virginia Beach that wouldn't exist were it not for our bnbs. If there are other VB Airbnb Hosts who are interested in taking on City Council, please let me know by posting a response and contact information. Just FYI, City Council proposed 10 new restrictions on short term rentals at the Beach. Even though they didn't name us, I guarantee that's what this is about. What's interesting is, most of these restrictions would effect people who don't live in VB who have invested in private residences for summer/winter rentals~

If there are any other VB Airbnb hosts (Kip, I expect to hear from you...lol) who are interested in taking on City Council, please let me know by posting a response and your contact information. I will find out when there will be a final vote on these 10 restrictions to determine if we will need to attend the next meeting or can wait a few weeks to give us time to prepare. If the passing of these restrictions is on the agenda for the next meeting on January 23rd, a few of us may have to go to the meeting to make them postpone their decision to give us more time to provide them with rebutal information.

Please forgive any errors...I just CAN NOT reread this again~I am so sorry its so long.

[Kip0]

Hi Jan! Let no one ever accuse you of not having opinions!!!  LOL!

First let me direct you and others to the Coastal VA Home Sharing Club on MeetUp.  That site is better set up to organize and share info than the community sites on this and other home sharing platforms.

You raise really important points and I think we all need to keep reinforcing the positive impact home sharing has on the local economy and the money that goes back into the community from hosts.

That said, the reality is that the City of Virginia Beach is going to pass something and I think we just need to look at it as good that the city will formally allow short term rentals in the zoning law and do our best to ensure other requirements are as reasonable as possible.

The Planning Commission requested an extension on their recommendations and will be reviewing at a public but non participatory session on February 7th and then allow public comment and move to make final recommendations at their public session on February 14th.  The VA Beach City Council is scheduled to take action on the legislation at their session on March 20, 2018.

It looks like the 10 restrictions you mentioned are being considered for some loosening - particularly the insurance requirement and the limitation to one rental per week. However they still only want to allow 2 rentals per week which is ridiculous for home stay hosts in particular.  

So long story short I'm really glad you are so passionate, hope to meet you at one of the sessions soon and agree with all your sentiment that home sharing is great for Virginia Beach and should be promoted rather than restricted!

[Shirley126]

I am a 2/3 month newbie to AirBNB.  I would like very much to come to the MeetUp.  Is it held at Croc's on the 1st and 3rd Tuesdays at 6pm?  That would make the next April 17th.  TAX DAY!  I will definitely need a relaxing dinner.  

We are very eager to meet with other local AirBNBers.  I look forward to your response.

Thank you,

Shirley