Transient Lodging & Short-Term Rental Tax
Transient Lodging Tax
According to the Danville City Code, Article VI, section 37-97., hereby levied and imposed upon each transient, in addition to any and all other taxes and fees of every kind imposed by law, a tax equivalent to 8% of the total amount paid by or for such transient for the rental of any room in any hotel. Plus an additional $2.00 per day room occupancy tax. The person collecting any tax shall make out a monthly report requested by the Commissioner of the Revenue's Office and deliver such reports to the City Collector with a remittance of such tax. Such monthly reports and remittances shall be made on or before the twentieth day following the close of each month covering the amount of tax collected during the preceding month.
Effective September 1, 2021, accommodations intermediaries as defined by the General Assembly are required to collect transient occupancy taxes on accommodation fees imposed by accommodations intermediaries for the sale of rooms. A copy of the Virginia Acts of Assembly can be found here on our website. Please review it and contact me directly with any questions or concerns by phone at 434-799-5145, by fax at 434-799-5148, email me anytime at Gillijm@danvilleva.gov, or visit our office Monday through Friday 8:30AM to 5:00PM.
Whenever any person required to collect and pay to the City a tax under this article shall cease to operate or otherwise dispose of his business, any tax payable under this article to the City shall become immediately due and payable and such person shall immediately make a report and pay the tax due.
If the Commissioner of Revenue's Office can be of any assistance to you, please do not hesitate to contact our office.
Short-Term Rental Tax
The City of Danville imposed a 1% tax on the gross receipts of all property as defined in section 37-155 (5) of the City Code. Every person engaged in the short-term rental business shall collect this daily rental property tax from the lessee of the daily rental property at the time of the rental. This tax shall be in addition to all other taxes levied pursuant to section 58.1-605 of the Code of Virginia.
A person is engaged in the short-term rental business if not less than eighty percent of the gross rental receipts of such business in any year are from transactions involving rental periods of ninety-two consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lesser . Every person, individual, partnership, or corporation engaged in the short-term rental business must file an application with the Commissioner of the Revenue for a certificate of registration. If your business qualifies as a short-term rental business, you will be issued a certificate and your license tax and personal property will be reclassified.
If this office can be of further assistance in clarifying any of the above, or if any other assistance is needed, please contact the Commissioner's Office.