Tax question for Virginia!

Answered!
Shannon955
Level 1
Virginia, United States

Tax question for Virginia!

Hi!  I'm a little confused!  The Virginia taxation lookup page says 5.3% inc fees in Mecklenberg County.  Then the Mecklenberg County says a 5% tax.  Do I charge (and am responsible for) BOTH?  

Top Answer
Lorna170
Level 10
Swannanoa, NC

@Shannon955  It is possible that there are two separate taxes for your County -- one being the County Sales tax and another being a "hotel" or accommodation tax.  In my location, I pay a State Sales and Use tax and a County Sales and Use Tax in addition to a municipality (County) Accommodation tax.

 

I suggest that you speak with a tax accountant or your local tax office to clarify what taxes are applicable to your rental property.  Once you know what taxes are involved, you can validate the taxes that AirBnB is collecting on your behalf (if any) and add under the custom tax section any additional taxes that are applicable.

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1 Reply 1
Lorna170
Level 10
Swannanoa, NC

@Shannon955  It is possible that there are two separate taxes for your County -- one being the County Sales tax and another being a "hotel" or accommodation tax.  In my location, I pay a State Sales and Use tax and a County Sales and Use Tax in addition to a municipality (County) Accommodation tax.

 

I suggest that you speak with a tax accountant or your local tax office to clarify what taxes are applicable to your rental property.  Once you know what taxes are involved, you can validate the taxes that AirBnB is collecting on your behalf (if any) and add under the custom tax section any additional taxes that are applicable.