RICHMOND, Va. (WRIC) — The Richmond City Council has approved and adopted an ordinance that will allow short-term rental accommodations — like Airbnb rentals and VRBOs — to be taxed the same way as hotels.
According to the ordinance request, the new law will require short-term accommodation rentals to be subject to transient lodging taxes. Short-term rentals can now be taxed 8% of the charge made for each room rented.
While short-term rentals are nothing new, their popularity has skyrocketed in recent years thanks to modern technology. This prompted the Code of Virginia to be updated in October 2022, extending the legal scope of transient occupancy taxes.
The law now dictates that “any county, by duly adopted ordinance, may levy a transient occupancy tax on hotels, motels, boarding houses, travel campgrounds, and other facilities offering guestrooms rented out for continuous occupancy for fewer than 30 consecutive days.”
Richmond is not the only Virginia locality to take advantage of this change in state law, as many look to foster equity between traditional hotels and short-term accommodations.
The new revenue from the tax change will go towards the Greater Richmond Convention Center (GRCCA) — which includes the City of Richmond and the surrounding counties of Chesterfield, Hanover and Henrico.
A preliminary revenue project made using short-term rental data from the Richmond market predicts additional revenue to be over $3.2 million.
For more information on the ordinance request, visit the Richmond City Council’s legislative website.
