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.

[Linda108]

As a business in a city, there is often regulations posted on the City's website.  I searched my City's website for "short term rental" and found that I needed a business license and a short term rental license.  I also must pay a 10% occupancy tax on a monthly basis.

Please use the postings in the Help Center to answer your question about what cities does Air BNB collect and remit taxes.

[Kip0]

Hi Tim and Lisa,

I'm in Va Beach and had already registered and been paying the city tax in Va Beach - I really didn't think the law was necessary since the rules were already clear but I think they just didn't want people to say there is a grey area.

I read the Norfolk rules similarly.  Here is the site http://www.norfolk.gov/index.aspx?NID=794 and if the link doesn't work you can just google norfolk short term rental lodging sales tax.

It looks like you should register and pay the tax.  You also have to register separately with the State of Virginia and pay sales tax there.

Also note that since AirBnB doesn't currently collect and remit taxes in Virginia the only way to do it is to gross up your rate and disclose it in your listing.

My disclosure is as follows: Local (8%) and state (5%) sales taxes are included in the listed price so no additional taxes will be charged.

Feel free to reach out more if you'd like to chat about it - I'm eager to have more connections in Hampton Roads!

Kip

[Holly-and-Rohan0]

Hi Kip-

I'm a host in Virginia Beach as well, wondering to which specific department at the city you registered to pay your tax. I haven't been able to locate anything specific on the city website.

[Kip0]

Hi @Holly-and-Rohan0 - you actually have to register separately with the state and then with the city.

For the state it's easy you can do it online and use Business iFile.  http://www.tax.virginia.gov/content/how-file-and-pay-your-sales-and-use-tax.  It's payable monthly at 6% of receipts or you can register just to file in months you rent out if you are seasonal.

For the city of Virginia Beach it's a bit of a pain because you actually have to go to the city offices at the Municipal Center Building 1 and register in person for the "Trustee Tax". I think you can mail it in but my guess is that would be more of a pain than just going there.  For short term rentals one files quarterly i.e. I filed for April to June in July and I'll file for July to Sep in October.  They will send you a form and envelope every month (it's old school not online you have to mail in payment on their form) and you can determine when you need to file based on your volume.  I think hotels file monthly in the same taxation scheme.  Don't forget also that Virginia Beach has two tax types - the Trustee Tax which is 8% of receipts and a Flat Lodging Room Tax which is $1 per room night (soon to rise to $2).  

Naturally you should confirm all this for yourselves but this is what I'm doing.

Feel free to reach out to me directly if I can help answer any questions.

[Kip0]

@Holly-and-Rohan0 Oh and sorry I didn't answer your specific question. The entity with Virginia Beach you register with is Treasurer, City of Virginia Beach, Trustee Tax Division.  

[Kip0]

@Jordan41 @Holly-and-Rohan0

Fellow VBers - just a quick update that the filing period for the City of Virginia Beach Trustee Taxes (flat lodging and % of receipts) is due and payable MONTHLY.

I have corresponded with the Virginia Beach Commissioner of Revenue's office to suggest some clarifications be made to their website but they have also recently posted helpful PDF's in the "What's New" section on the Commissioner of Revenue's main page.

[Kip0]

Hey Fellow Virginia Beach hosts - with the recent mailing from the Commissioner of Revenue for the city of virginia beach requiring registration to be available to remediate 311 calls within 30 minutes AND the $50 annual reg fee in 2018 AND the trustee taxes we already remit, I think it's time to organize.

AirBnB makes if very hard to coordinate phone and emails so instead I'm going to suggest we pick a place to meet and time and day and start spreading the word.  Can really start as just a social gathering so we can all meet and share info and then figure out how we can start having more influence with city council.

What about Croc's on Monday August 14th from 6:30pm to 8:30pm?  Can make it a drop in and I'd be happy to organize.

@Jordan @Holly & Rohan

[Charles205]

Hi @Kip0, 

Just wondering if you were still planning on meeting at Crocs tomorrow to discuss these topics.  I'm new to AirBnB as a host and would love to talk about the current and future requirements being imposed by the city and state.

If nothing else, we can meet and swap contact info so that we can start a text/email/phone chain for the local area.  I also had a few questions on whether or not you carry commercial liability insurance per the Virginia Senate bill that passed last year.

I just read this thread so if tomorrow isn't a good time anymore then I'm open to organize something later on.  Thanks!

Charles

[Kip0]

@Charles205 We are on for the meet up at Crocs tomorrow Monday Aug 14 from 6:30pm to 8:30pm! Have gotten positive RSVPs from 15 other hosts

I personally have a rider because I also list on other prop sites that don't have the AirBnB coverage but I also read the state law as allowing local jurisdictions to require insurance but not as a statewide mandate.

[Diane471]

 Would someone keep me in the loop/ add me to the list?  I just started doing Airbnb a couple of weeks and I can’t find any resources for Virginia Beach on taxes ar Airbnb site.  Thank you in advance.

[Kip0]

Hi Diane - be sure to look at my other community posts where I explain state and city taxes. Those are already in effect. The VA Beach additional rules are still under consideration by City Council. Join us on the third party website called MeetUp (not the one on  AirBnB) to keep up with meetings for Coastal VA Home Sharing Club. Thanks!

[Amani9]

Hello Kip, 

I am interested in getting involved in the club but could not find the name in meetup app. Did you happen to change the group name? I am new to the AirBnB home sharing community and would love to get advice from other hosts who have more experience than me. 

Thanks 

Amani

[Lynn162]

Amendments and restrictions moving through VB Planning Commission Dec. 13 2017 at 12 noon....did you know?

[Holly-and-Rohan0]

Hey Kip-
I've been meaning to get back with you. Thanks for all your information. Running into you was hysterical, good eye 😉 It was great meeting you guys. Here's my number [phone number removed], we throw a fall party in November, I'm make sure to invite you guys.