City of Alexandria, VA
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 are as follows:
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 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.
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.
Short-term daily rental applications and returns may be mailed to:
Revenue Administration Division
Short-term daily rental tax payments may be mailed to:
Tax Audit, Research & Analysis
Payments may also be submitted online by eCheck or in person with cash, check, money order, or Discover Card at:
Exempt from Taxation
The following rentals are exempt from the daily rental tax:
For forms, tax payments and inquiries, contact: