Short-Term (Daily) Rental Tax

All individuals, partnerships or corporations engaged in the business of renting daily rental property are classified as retail merchants for City business license tax purposes. Such merchants, if they meet the definition of a short-term rental business (see below), must collect from consumers a tax on all daily rentals in lieu of a business personal property tax on the rental property.

Due Dates

Due dates are as follows:

Quarter Ending Date	Return Due Date	Payment Due Date
March 31	April 15	April 30
June 30	July 15	July 31
September 30	October 15	October 31
December 31	January 15	January 31

Computation of Tax

The tax is one percent of gross receipts from the rental of short-term rental property, excluding heavy equipment as defined below. The tax is 1.5 percent of gross receipts from the rental of heavy equipment.

Some rentals are exempt from taxation. (See exemptions below.)

Filing and Payment Procedures

New businesses

New businesses must apply for classification as a short-term rental business and pay a retail merchant's license tax within 30 days of beginning business. Businesses must now provide a short-term rental inventory list with the application.

Established businesses

All daily rental businesses previously certified as short-term rental businesses must file annual short-term (daily) rental applications and short-term rental inventory list and pay a retail merchant's license tax by January 31 of each year. These businesses will then submit quarterly short-term rental tax returns. The City will mail a tax bill based on the information provided on the return. 

Filing Address

Short-term daily rental applications and returns may be mailed to:

Revenue Administration Division
Department of Finance
City of Alexandria
P.O. Box 178
Alexandria, VA 22313-1500

Payment Options

Short-term daily rental tax payments may be mailed to:

Tax Audit, Research & Analysis
Department of Finance
City of Alexandria - Miscellaneous Tax
P.O. Box 34842
Alexandria, VA 22334-0842

Payments may also be submitted online by eCheck or in person with cash, check, money order, or Discover Card at:

Treasury Division
301 King Street, Room 1500
Alexandria, VA 22314

Exempt from Taxation

The following rentals are exempt from the daily rental tax:

• Rentals of tangible personal property to the Commonwealth of Virginia, to any political subdivision of the Commonwealth or to the United States;
• Rentals of durable medical equipment, as this term is defined in section 58.1-608(7)(b) of the Code of Virginia (1950), as amended; and
• Rentals of tangible personal property which, if the subject of a sale, would be exempt from the state sales and use tax pursuant to chapter 6 of title 58.1 of the Code of Virginia (1950), as amended. (Ord. No. 3411, 11/18/89, Sec. 1)

Definitions

• Gross proceeds - The total amount charged to persons, including late charges and interest, for the daily rental of property by a short-term rental business, excluding any State and local taxes.
• Short-term rental business - A business that generates
  • a minimum of 80% of its yearly gross proceeds from rental transactions, excluding heavy equipment rentals, involving rental periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee; and/or
  • a minimum of 60% of its yearly gross proceeds from the rental of heavy equipment property for periods of 270 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee.
• Heavy equipment - primarily construction equipment for large equipment rental for most non-consumer uses.

Contact Us

For forms, tax payments and inquiries, contact:

Tax Services & Enforcement
301 King Street, Room 1700
Alexandria, Virginia 22314
703.746.3903 Option 4
E-mail: