Short-Term Daily Rental Tax is levied on all tangible personal property (except daily rental of passenger vehicles) held for rental and owned by a person engaged in the short-term rental business. Fairfax County levies a 1% tax on the total gross proceeds of these rentals. (Code of Virginia, §58.1-3510.6). This tax does not include rental dwellings also known as short-term property rental or short-term lodging (STL).
Only certified short-term daily rental businesses are required to collect, file, and remit the Short-Term Daily Rental Tax. A business is engaged in short-term daily rental if at least 80% of the gross rental receipts in any year are from rentals of 92 consecutive days or less, including rentals to persons affiliated with the renter, and provided the rental does not include any personal services.
Businesses are required to apply for certification annually. The application for certification as a short-term rental business must be returned by February 15 of each year or within 30 days of the start of business. The application for certification is available from our website.
Certified short-term rental businesses must submit a quarterly tax return on or before the 20th day of the month following the end of each quarter.
- For the quarter ending March 31, the tax is due April 20.
- For the quarter ending June 30, the tax is due July 20.
- For the quarter ending September 30, the tax is due October 20.
- For the quarter ending December 31, the tax is due January 20 the following year.
- The total business gross receipts of the applicant;
- The gross proceeds derived from the short-term rental business;
- All rental gross proceeds exempt from the daily rental tax and documentation of each;
- The total daily rental tax due the county for the previous quarter's short-term rental business.
Passenger Vehicles Daily Rental
A daily rental tax is levied on all motor vehicles, except motorcycles and manufactured homes, used for rental for the transportation of persons or property whether on its own structure or by drawing another vehicle or vehicles. The tax is based on gross proceeds. (Code of Virginia, §58.1-1736)
Calculation of Tax
The amount of the tax is determined by the application of the following rates against the gross proceeds:
- 4% of the gross proceeds from the rental in Virginia of any motor vehicle, except those with a gross vehicle weight rating or gross combination weight rating of 26,001 pounds or more.
- 4% of the gross proceeds shall be levied on the rental in Virginia of any daily rental vehicle, regardless of whether the vehicle is required to be licensed in Virginia.
- 2% of the gross proceeds shall be imposed on the rental in Virginia of any daily rental vehicle, regardless of whether the vehicle is required to be licensed in Virginia.
The tax on the rental of a motor vehicle is collected from the person renting the motor vehicle, collected by the renter, and remitted to the Tax Commissioner on or before the 20th day of the month following the month in which the gross proceeds from such rental were due.
4% collected on the rental of daily rental vehicles is remitted by the Tax Commissioner quarterly to Fairfax County.
Questions regarding the Short-Term Daily Rental Tax may be sent to the Personal Property and Business License Division at firstname.lastname@example.org or by calling 703-222-8234, option 4 [TTY 711].