City of Fredericksburg, VA
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[Code 1991, § 17-316]
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
All tangible personal property held for rental and owned by a person engaged in the shortterm rental business, except trailers, as defined in Code of Virginia, § 46.2-100, and other tangible personal property required to be licensed or registered with the State Department of Motor Vehicles, the State Department of Game and Inland Fisheries, or the State Department of Aviation.
The total amount charged to each person for the rental of daily rental property, excluding any state and local sales tax paid pursuant to the Virginia Retail Sales and Use Tax Act (Code of Virginia, § 58.1-600 et seq.).
A business where not less than 80% of the gross rental receipts of such business in any year are from transactions involving rental periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessor. The word "affiliated," for purposes of this subsection, shall mean any common ownership interest in excess of 5% of any officers or partners in common with the lessor and lessee. For purposes of this article:
Any rental to a person affiliated with the lessor shall be treated as rental receipts but shall not qualify for purposes of the 80% requirement; and
Any rental of personal property which also involves the provision of personal services for the operation of the personal property rented shall not be treated as gross receipts from rental. For purposes of this subsection, the delivery and installation of tangible personal property shall not mean operation.
[Code 1991, § 17-317]
Pursuant to Code of Virginia, § 58.1-3510.1, there is hereby assessed and imposed on every person engaged in the short-term rental business a tax of 1% on the gross proceeds of such business. Such tax shall be in addition to the tax levied pursuant to Code of Virginia, § 58.1-605.
[Code 1991, § 17-318]
Except for daily rental passenger cars, rental property that is not daily rental property shall be classified for taxation pursuant to Code of Virginia, § 58.1-3503.
No tax shall be collected or assessed on:
Rentals by the commonwealth, any political subdivision of the commonwealth or the United States; or
Any rental of durable medical equipment, as defined in Code of Virginia, § 58.1-608(22).
All exemptions applicable in Code of Virginia, § 58.1-600 et seq., shall apply mutatis mutandis to the daily rental property tax.
[Code 1991, § 17-319]
Every person engaged in the shortterm rental business shall collect the rental tax from the lessee of the daily rental property at the time of the rental. The lessor of the daily rental property shall transmit a quarterly return to the Commissioner of the Revenue, indicating the gross proceeds derived from the short-term rental business, and shall remit therewith the payment of such tax as is due for the quarter. The quarterly returns and payment of tax shall be filed with the Commissioner of the Revenue on or before April 20, July 20, October 20 and January 20, representing, respectively, the gross proceeds and taxes collected during the preceding quarters ending March 31, June 30, September 30, and December 31. The return shall be upon such forms and set forth such information as the Commissioner of the Revenue may require, showing the amount of gross receipts and the tax required to be collected. The taxes required to be collected under this article shall be deemed to be held in trust by the person required to collect such taxes until remitted.
[Code 1991, § 17-320]
Every person engaging in the business of shortterm rental of tangible personal property shall file an application for a certificate of registration with the Commissioner of the Revenue. The application shall be on a form prescribed by the Commissioner of the Revenue and shall set forth the name under which the applicant intends to operate the rental business, the location and such other information as the commissioner may require.
Each applicant shall sign the application as owner of the rental business. If the rental business is owned by an association, partnership or corporation, the application shall be signed by a member, partner, executive officer or other person specifically authorized by the association, partnership or corporation to sign.
Upon approval of the application by the Commissioner of the Revenue, a certificate of registration shall be issued. The certificate shall be conspicuously displayed at all times at the place of business for which it is issued. The certificate is not assignable and shall be valid only for the person in whose name it is issued and the place of business designated.
[Code 1991, § 17-321; Ord. No. 00-04, 2-22-2000]
If any person whose duty it is to do so shall fail or refuse to collect the tax imposed under this article and make timely report and remittance thereof, the Commissioner of the Revenue shall proceed in such manner as is practicable to obtain facts and information on which to base an estimate of the tax due. As soon as the commissioner has procured whatever facts and information obtainable upon which to base the assessment of any such shortterm rental tax, the commissioner shall proceed to determine and assess against such person the tax, penalty and interest provided in this article and shall notify the person by certified mail, sent to his last known address, of the amount of such tax, penalty and interest. The total amount thereof shall be payable within 10 days after the date such notice is sent.
[Code 1991, § 17-322]
Any person violating or failing to comply with any provision of this article shall be guilty of a Class 3 misdemeanor; provided, however, that if the amount of tax due and unpaid for any quarterly installment exceeds $1,000, any person failing to remit such payment when due shall be guilty of a Class 1 misdemeanor.