Short-Term Rental Property Tax Tasks and forms
File Short-Term Equipment Rental Property Tax Registration		Printable
File Short-Term Equipment Rental Quarterly Tax Return	Online
Payment of Short-Term Equipment Rental Property Tax	Online

Requirements

All individuals, partnerships or corporations engaged in the business of renting daily rental property are categorized as retail merchants for purpose of a business license tax in Frederick County.  Such merchants, if they meet the definition of a short-term rental business (see County Code Ordinance), must collect a tax on all daily rentals from its customers in lieu of a business personal property tax on the rental property.

• Short-Term Rental Property is defined as all tangible personal property held for rental and owned by a person engaged in the short-term rental business excluding trailers (as defined in § 46.2-100 of the Code of Virginia) and other tangible personal property required to be licensed or registered with the Virginia Department of Motor Vehicles, Virginia Department of Game and Inland Fisheries, or Virginia Department of Aviation.

• Tax will be imposed on two types of short-term rental businesses:
  • business as to which not less than 80 percent of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of short-term rental property, other than heavy equipment property (as defined in the Code), for periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee; and
  • business as to which not less than 60 percent of the gross rental receipts of such business during the preceding year arose from transactions involving 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.

• The amount of short-term rental property tax imposed upon the business is a varying percent (1% or 1.5%) of the gross proceeds based on the type of business, as more fully explained in the ordinance.  These monies are considered a trust tax to be collected by the business and reported/paid to the County.

• A person engaging in a short-term rental property business is required to file with the Commissioner of the Revenue an Application for a Certificate of Registration on an annual basis and display the issued Certificate of Registration at all times.

• Taxes are to be collected from each lessee of rental property at the time of rental.

• Quarterly returns must be filed with the Commissioner of the Revenue no later than the 15th day following the end of each calendar quarter.

• Payment of the assessed tax must be made to the Treasurer by no later than the last day of the month following the end of the calendar quarter.

Tax Code

Frederick County Code: Chapter 155 - Article XXVI, § 155-155.