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]

@Shirley126 we haven't set a regular meeting place and time yet as we're still building the group.  We are having an educational session at the Virginia Beach Central Library in the Libris Room on Monday April 30th at 7pm.  Then we'll have a social in May.  To sign up for both of those go over to the external meet up site under Coastal VA Home Sharing Club.  Thanks!

[Geoffrey32]

Does anyone know the specific form you have to feel out on https://www.tax.virginia.gov/eforms ? There are several different tax forms. 

[Kip0]

@Geoffrey32 Rather than fill out an eform, I would register using "Business Online Services Account."  I think it's more immediate.  Register under "Are you a new Business?  Register here"

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

[Kk1]

I have been wanting to find a home sharing group, esp. for guidance about taxes and to join forces to help represent the Airbnb community.  Due to concerns about regulations, after one year hosting in 2016 I regrouped and started doing Airbnb 30 days or longer, but I'm finding it difficult to stay rented and lots of gaps with no guests. I attended the town hall meeting in Norfolk November 16th but not sure what the "new" regs are. I was searching on line and found this thread.

So...I have read this thread through and I keep seeing "go to Coastal Virginia Home Sharing to join our meetup group." I cannot find this meetup at all. Can somebody or @Kip0 post an actual LINK? Much thanks!

[Linda108]

@Kk1  Go  Discuss on this site, select Home Sharing Club, select view all clubs, scroll until you find the correct Home Sharing Club.  Good luck, Linda

[Kip0]

@Kk1 sorry for late reply but it's on the external site so I can't reply with link that won't be suppressed. We're setting it up externally because there are multiple home sharing platforms that are impacted so we needed to be somewhere else.  Its MeetUp the website under Coastal Virginia Home Sharing Club.  Sorry for hassle but we also were not having luck setting it up on the AirBnB site.

[Kk1]

@Kip0, I already searched and didn't see it. Just tried again on Meetup, 25 mile radius of Norfolk, exact spelling, and no luck. Ugh. 😞

[Kip0]

https://www.meetup.com/Coastal-VA-Home-Sharing-Club/

https://www.meetup.com/Coastal-VA-Home-Sharing-Club/

[Jan497]

I am late to this conversation - and I don't live in Virginia Beach, I live in Mecklenburg County, Virginia, so I am not sure if this even applies to me. Everything that I have found only shows specific cities in Virginia - and I am not in any of those cities. I did find that this a sole proprietorship, but I can't find if I need a license.  Of course I will have to pay income taxes to Virginia, but other than that, I can't find anything... 

Can anyone point me in the right direction?

[Kip0]

@Jan497

For the State of Virginia the requirement to collect sales tax and remit monthly is state-wide and will apply to you. I have excerpted my analysis of the state's position below from a previous post. Your requirement is to collect 5.3% (vs. 6% for me in Hampton Roads) based on the state's retail sales and use tax chart.

For unincorporated Mecklenburg County Virginia is will be wholly dependent on local rules. If there is a lodging tax that hotels are required to collect you may be subject to that as well. I looked at Mecklenburg's website and didn't see anything specifically listed. You can call the Treasurer's office and ask them how they're handling it and it's completely possible that in some rural areas where Short Term Rentals (STR) are not widespread that there is no official policy.

Hope this helps!

Kip's Analysis of Virginia State-wide sales tax on STR:

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

[Jan497]

Thanks!

From what I read, you don't have to pay anything if you rent less than 14 days/year, so we're still good, but will have to check this out if we are to continue.

I appreciate your help!

Thanks, again.

[Lynn162]

Hello, the City of Virginia Beach is moving forward with more rules, restrictions and requirements.

City Planning made recommendations in February, sent to City Council, and now City Council has

sent back to City Planning with even more amendments.  City Planning just held a meeting and it was

deferred. They plan to hold a workshop before moving forward at a City Planning hearing.

Everyone needs to research and review these new amendment. Write letters, attend the workshop and at speak a the next public Planning Commission hearing - if possible.

Go to vbgov.com.  Search for Planning Commission. Then Click on 2018 agenda and minutes. There is also live video. Very little was said at the last meeting - most people knew it was being deferred. But, if you have any concerns - now is the time to get involved.

Two big issue are the one rental contract per 7 consecutive day period and that they are requiring a log of ALL guests with names, addresses and phone numbers to be released to ANY zoning person for a presumed violation upon request. This was found unconstitutional in the Supreme Court for hotels in a case in California without a subpoena. (I'm not a lawyer - just reading online and also listening to what the city attorney said at the VB Council meeting) The Virginia Beach City attorney feels that they can do this for short term rentals???

Also, they are proposing that if you aren't registered and paying taxes already by July 1, 2018, you won't be grandfathered and will need to obtain a conditional use permit - that will need to. before City Council.

You can find the new amendments proposed, Planning Commission emails and mailing address at vbgov.com

[MaryAnn80]

I just registered with the VA Beach City Treasurer to start paying the related host taxes and also created an account with the State to pay those taxes.  I started an LLC thinking that was required in order to get the State Tax account and pay online.  Have other AirBnB hosts started a business or could I pay my state taxes with my SSN instead?  Not sure if I need or want to establish a business if it's not necessary.  What other pros are there?  I know if I keep it I'll have to pay the $50 State Commission fee and establish a new bank account.  If I have $1M liability covered with my insurance, is there any other reason I should keep the business?  I just rent my VA Beach condo when I'm not there.

[Kip0]

Mary Ann,

A lot of the real estate saavy folks think LLC's are the beesknees. For me I just have one property so I just have the whole thing registered under myself. The short answer is no you do not have to set up a LLC you can operate under your own tax id.  Like you I have the $1M liability coverage and I'm personally not that confident that a LLC really protects from liability the way people think it does. There may be tax advantages but I haven't investigated it. The taxation and local city regulations are the same whether you are operating as sole proprietor or LLC so make sure you look at the latest rules that go into effect in November 2019. 

https://www.vbgov.com/residents/homes-neighborhoods/Pages/online-home-sharing-economy.aspx

Since you live in the property you might be able to be considered a home-sharer which would reduce your requirements but I personally would err on side of caution.

[Lorie22]

Hi Mary ann, did anyone answer your questions? I am trying to setup my nee Airbnb. So much reading. I am in Va Beach oceanfront area.