2006 Code of Virginia § 58.1-3819 - Transient occupancy tax

58.1-3819. Transient occupancy tax.

A. Any county, by duly adopted ordinance, may levy a transient occupancy taxon hotels, motels, boarding houses, travel campgrounds, and other facilitiesoffering guest rooms rented out for continuous occupancy for fewer than 30consecutive days. Such tax shall be in such amount and on such terms as thegoverning body may, by ordinance, prescribe. Such tax shall not exceed twopercent of the amount of charge for the occupancy of any room or spaceoccupied; however, in York County, Albemarle County, Nelson County,Mecklenburg County, Gloucester County, Spotsylvania County, Stafford County,Loudoun County, Bedford County, Cumberland County, Floyd County, King GeorgeCounty, Wise County, Botetourt County, and Prince Edward County, such taxshall not exceed the rate of five percent. The revenues collected from thatportion of the tax over two percent shall be designated and spent forpromoting tourism, travel or business that generates tourism or travel in thelocality. It is further provided that Rockbridge County, Caroline County,Dinwiddie County, Page County, Wythe County, James City County, FranklinCounty, Tazewell County, Augusta County, Prince William County, Craig County,Prince George County, Patrick County, Pulaski County, Halifax County,Montgomery County, and Carroll County may levy a transient occupancy tax notto exceed five percent, and any excess over two percent shall be designatedand spent solely for tourism, marketing of tourism or initiatives that, asdetermined in consultation with the local tourism industry organizations,attract travelers to the locality and generate tourism revenues in thelocality. If there are no local tourism industry organizations in thelocality, the governing body shall hold a public hearing prior to making anydetermination relating to how to attract travelers to the locality andgenerate tourism revenues in the locality.

B. The tax imposed hereunder shall not apply to rooms or spaces rented andcontinuously occupied by the same individual or same group of individuals for30 or more days in hotels, motels, boarding houses, travel campgrounds, andother facilities offering guest rooms. In addition, that portion of any taximposed hereunder in excess of two percent shall not apply to travelcampgrounds in Stafford County.

C. Nothing herein contained shall affect any authority heretofore granted toany county, city or town to levy such a transient occupancy tax. The countytax limitations imposed pursuant to 58.1-3711 shall apply to any tax leviedunder this section, mutatis mutandis.

D. Any county, city or town which requires local hotel and motel businesses,or any class thereof, to collect, account for and remit to such locality alocal tax imposed on the consumer, may allow such businesses a commission forsuch service in the form of a deduction from the tax remitted. Suchcommission shall be provided for by ordinance, which shall set the ratethereof, no less than three percent, not to exceed five percent of the amountof tax due and accounted for. No commission shall be allowed if the amountdue was delinquent.

E. All transient occupancy tax collections shall be deemed to be held intrust for the county, city or town imposing the tax.

(Code 1950, 76.1; 1970, c. 443; 1971, Ex. Sess., c. 214; 1973, c. 433;1974, c. 614; 1983, c. 313; 1984, c. 675; 1985, c. 556; 1992, cc. 263, 834;1996, c. 833; 1997, cc. 757, 764; 1998, cc. 729, 733; 1999, cc. 233, 234,241, 253, 260; 2000, c. 470; 2001, cc. 571, 585; 2003, c. 939; 2004, cc. 7,610; 2005, cc. 76, 915; 2006, cc. 67, 376.)