There is hereby levied and imposed, in addition to all other taxes and fees of every kind now imposed by law, on each transient a tax equivalent to 5% of the total amount paid by or for any such transient to any person for the use or possession of accommodations, plus an additional tax equivalent to 2% of the total amount paid by or for any such transient to any person for the use or possession of accommodations to support the Virginia Horse Center Foundation as authorized by Virginia Code § 58.1-3825, plus an additional tax equivalent to 1% of the total amount paid by or for any such transient to any person for the use or possession of accommodations to support Main Street Lexington. Such tax shall be collected from each transient at the time and in the manner provided by this article. The additional 2% tax shall be appropriated to the Virginia Horse Center Foundation to be used by the Foundation for the sole purpose of making principal and interest payments associated with refinancing a promissory note or notes signed or executed by either the Virginia Equine Center Foundation or the Virginia Horse Center Foundation prior to January 1, 2004, with the Rockbridge Industrial Development Authority as the obligee or payee, as part of an agreement for the Authority to issue bonds on behalf of or for improvements at the Virginia Horse Center Foundation, Virginia Equine Center Foundation or Virginia Equine Center. The additional 1% tax shall be appropriated to Main Street Lexington to support its efforts to revitalize, enhance, and market downtown for the public benefit.
[Amended 5-19-2014 by Ord. No. 2014-02; 5-21-2015 by Ord. No. 2015-02; 10-1-2015 by Ord. No. 2015-03; 6-6-2017 by Ord. No. 2016-10; 12-7-2017 by Ord. No. 2017-15; 9-20-2018 by Ord. No. 2018-14; 10-5-2023 by Ord. No. 2023-09; 8-7-2025 by Ord. No. 2025-05]
The following words 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:
Any room or space for which tax is imposed on the retail sale of same pursuant to this article, including but not limited to any room or space in any public or private hotel, motel, inn, apartment, hostelry, tourist home or house, rooming house, short-term rental, or other lodging place within the City offering lodging, and the owner and operator thereof, who for compensation furnishes lodging to any transients as hereinafter defined. "Accommodations" does not include rooms or space offered by a person in the business of providing conference rooms, meeting space, or event space if the person does not also offer rooms available for overnight sleeping.
The room charge less the discount room charge, if any; provided, that the accommodations fee shall not be less than $0.
Any person other than an accommodations provider that (i) facilitates the sale of an accommodation and (ii) either (a) charges a room charge to the customer, and charges an accommodations fee to the customer, which fee it retains as compensation for facilitating the sale; (b) collects a room charge from the customer; or (c) charges a fee, other than an accommodations fee, to the customer, which fee it retains as compensation for facilitating the sale. For purposes of this definition, "facilitates the sale" includes brokering, coordinating, or in any other way arranging for the purchase of the right to use accommodations via a transaction directly, including via one or more payment processors, between a customer and an accommodations provider. "Accommodations intermediary" does not include a person:
If the accommodations are provided by an accommodations provider operating under a trademark, trade name, or service mark belonging to such person;
Who facilitates the sale of an accommodation if (i) the price paid by the customer to such person is equal to the price paid by such person to the accommodations provider for the use of the accommodations and (ii) the only compensation received by such person for facilitating the sale of the accommodation is a commission paid from the accommodations provider to such person; or
Who is licensed as a real estate licensee pursuant to Article 1 of Chapter 21 of Title 54.1 of the Code of Virginia, 1950, as amended, when acting within the scope of such license.
Any person that furnishes accommodations to the general public for compensation. The term "furnishes" includes the sale of use or possession or the sale of the right to use or possess.
The City of Lexington, Virginia.
The Treasurer of the City and any duly authorized deputies and agents.
The Commissioner of the Revenue of the City and any duly authorized deputies and agents.
The full amount charged by the accommodations provider to the accommodations intermediary, or an affiliate thereof, for furnishing the accommodations.
Includes, but is not limited to, any individual, corporation, company, association, firm, partnership, cooperative, joint venture, estate, trust, business trust, trustee in bankruptcy, receiver, or any other combinations of individuals of whatever form and character.
The sale or charges for any accommodations furnished by any person to transients for less than 90 continuous days.
The full retail price charged to the transient for the use of the accommodations before taxes. A room charge includes any fee charged to the transient and retained as compensation for facilitating the sale, whether described as an accommodations fee, facilitation fee, or any other name. Any additional charges made in connection with the rental of accommodations are deemed to be a part of the room charge and are subject to the tax. For example, additional charges for movies, local telephone calls, and similar services are considered to be room charges.
Any person who, for any period of fewer than 30 consecutive days, either at his own expense or at the expense of another, obtains the use or possession of accommodations for which a charge is made.
A.
Generally. Every person receiving any payment for the retail sale of accommodations with respect to which a tax is levied under this article shall, as provided in this article, collect the amount of such tax so imposed from the transient on whom such tax is levied, or from the person paying for such accommodations, at the time payment for such accommodations is made. 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 the same shall have been remitted to the City Treasurer.
B.
Reports and remittances; discount.
(1)
Any person collecting a tax pursuant to this article shall register as such with the Commissioner of the Revenue for the collection of the tax imposed in this article.
(2)
The person collecting any tax as provided in this article shall make out a report thereof upon such forms and setting forth such information as the Commissioner of the Revenue may prescribe and require, showing the total room charge paid by the transient for the use or possession of the accommodations and the tax required to be collected. The person shall sign and deliver the report to the Commissioner of the Revenue.
(3)
The Commissioner of the Revenue shall determine whether the report is in proper form and upon such determination shall forward a copy to the City Treasurer. The person collecting the tax shall remit the tax to the City Treasurer.
(4)
The reports and remittances shall be made on or before the 20th day of each month, with the payment covering the amount of tax collected during the immediately preceding calendar month.
(5)
For the purpose of compensating the person for accounting for and remitting the tax levied by this article, such person shall be allowed 3% of the amount of tax due and accounted for, in the form of a deduction, in submitting the return and paying the amount due from such person, if the amount due was not delinquent at the time of payment.
C.
Accommodations providers and accommodations intermediaries.
(1)
For any retail sale of accommodations not facilitated by an accommodations intermediary, the accommodations provider shall collect the tax imposed pursuant to this article, computed on the total price paid for the use or possession of the accommodations, and shall remit the same to the City Treasurer and shall be liable for the same.
(2)
For any retail sale of accommodations facilitated by an accommodations intermediary, the accommodations intermediary shall be deemed under this article as a facility making a retail sale of an accommodation. The accommodations intermediary shall collect the tax imposed pursuant to this article, computed on the room charge, and shall remit the same to the City Treasurer and shall be liable for the same.
(3)
For any transaction for the retail sale of accommodations involving two or more parties that meet the definition of accommodations intermediary, nothing in this section shall prohibit such parties from making an agreement regarding which party shall be responsible for collecting and remitting the tax, so long as the party so responsible is registered with the Commissioner of the Revenue for purposes of remitting the tax. In such event, the party agreeing to collect and remit the tax shall be the sole party liable for the tax, and the other parties to such agreement shall not be liable for such tax.
(4)
For any retail sale of accommodations facilitated by an accommodations intermediary, nothing herein shall relieve the accommodations provider from liability for retail sales and use taxes on any amounts charged directly to the transient by the accommodations provider that are not collected by the accommodations intermediary.
(5)
In any retail sale of any accommodations in which an accommodations intermediary does not facilitate the sale of the accommodations, the accommodations provider shall separately state the amount of the tax in the bill, invoice, or similar documentation and shall add the tax to the total price paid for the use or possession of the accommodations. In any retail sale of any accommodations in which an accommodations intermediary facilitates the sale of the accommodation, the accommodations intermediary shall separately state the amount of the tax on the bill, invoice, or similar documentation and shall add the tax to the room charge; thereafter, such tax shall be a debt from the customer to the accommodations intermediary, recoverable at law in the same manner as other debts.
(6)
An accommodations intermediary shall submit to the Commissioner of the Revenue the property addresses and gross receipts for all accommodations facilitated by the accommodations intermediary in the City. Such information must be submitted monthly. Information provided by an accommodations intermediary pursuant to this subsection to the Commissioner of the Revenue, City Treasurer, or any other local tax or revenue officer or employee of the City, or any other person to whom such tax information is divulged, shall be confidential pursuant to Virginia Code § 58.1-3A and shall not be divulged to any other City department or official or any other political subdivision of the Commonwealth. Such information shall be used by such officials only for the purpose of levying and collecting retail sales and use tax, transient occupancy tax, and any other taxes imposed on the sale of accommodations.
(7)
In administering the assessment of transient occupancy taxes from accommodations intermediaries, the Commissioner of the Revenue shall provide adequate information to accommodations intermediaries to enable them to identify transient occupancy rates, the applicable jurisdiction, and any discounts, deductions, or exemptions.
(8)
Every accommodations intermediary required to collect or pay the transient occupancy tax, on or before the 20th day of the month following the month in which the tax shall become effective, shall transmit to the Commissioner of the Revenue a return showing the gross receipts, any allowable discounts, deductions, or exemptions, and the rate applied to the resultant net receipts and shall remit to the City Treasurer the total local transient occupancy tax due, as well as any penalties and interest due, arising from all transactions taxable under this article during the preceding calendar month. Where applicable, the return shall also include the number of room nights and the room tax rate applied, the total amount of room tax due, and any regional transportation transient occupancy taxes due. Thereafter, a like return shall be prepared and transmitted to the Commissioner of the Revenue by every accommodations intermediary on or before the 20th day of each month, for the preceding calendar month. Each such report shall be accompanied by a remittance of the amount of the taxes to the City Treasurer.
(9)
An accommodations provider shall not be required to transmit a return to the Commissioner of the Revenue if (i) all retail sales of accommodations owned by the accommodations provider are facilitated by an accommodations intermediary and (ii) the accommodations provider attests to the City that all such sales were facilitated by an accommodations intermediary. Such attestation shall be effective for 12 months beginning with the month in which the attestation is made, and thereafter, such attestation shall be due annually on a date determined by the City. However, such accommodations provider shall transmit returns for the retail sale of any accommodations not facilitated by an accommodations intermediary as otherwise required by this article.
A.
Penalty. If any person shall fail or refuse to remit to the City Treasurer the tax required to be collected and paid under this article, within the time and in the amount as provided for in this article, there shall be added to such tax by the Commissioner of the Revenue a penalty in the amount of 5% thereof and interest thereon at the rate of 8% per annum, which shall be computed upon the tax and penalty from the date such taxes were due and payable.
B.
Duty of Commissioner of the Revenue. If any person shall fail or refuse to collect the tax imposed under this article and to make, within the time provided in this article, the reports and remittances required in this article, or if the Commissioner of the Revenue has reasonable cause to believe that an erroneous report has been filed, the Commissioner of the Revenue shall proceed in such manner as he or she may deem best to obtain facts and information on which to determine the amount of tax due to the City, and in connection therewith the Commissioner of the Revenue shall make such investigations and take such testimony and other evidence as may be necessary and shall report his or her determination to the City Treasurer; provided, however, that notice and opportunity to be heard shall be given to any person who may become liable for the amount owing prior to any determination by the Commissioner of the Revenue. As soon as the Commissioner of the Revenue shall secure such facts and information as he or she is able to obtain upon which to base the assessment of any tax due and payable by any person who has failed or refused to collect such tax and to make such report and remittance, the Commissioner of the Revenue shall proceed to determine and assess against such person such tax and penalty and interest as in this article provided for and shall notify such person by registered mail, sent to his last place of known address, of the amount of such tax and interest and penalty, and the total amount thereof shall be payable within 10 days of such notice. The Commissioner of the Revenue shall have the power to examine such records, for the purpose of administering and enforcing the provisions of this article, as are provided by law.
C.
Additional powers and duties of Commissioner. It shall be the duty of the Commissioner of the Revenue to ascertain the name of every person selling accommodations in the City and that is liable for the collection of the tax levied by this article. The Commissioner of the Revenue shall have the power to adopt rules and regulations not inconsistent with the provisions of this article for the purpose of determining the amount due to the City under this article; and a copy of such rules and regulations shall be on file and available for public examination in the Commissioner of the Revenue's office. Failure or refusal to comply with any rules and regulations promulgated under this section shall be deemed a violation of this article.
Whenever any person required to collect and pay to the City a tax pursuant to the provisions of this article shall cease to operate, go out of business or otherwise dispose of his or her business, any tax then payable to the City shall become immediately due and payable and such person shall immediately make a report and pay the tax due to the City Treasurer.
It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this article to keep and to preserve for a period of two years such suitable record as may be necessary to determine the amount of such tax as he or she may have been responsible for collecting and paying to the City. The Commissioner of the Revenue may inspect such records at all reasonable times.
Any person who shall violate any of the provisions of this article shall be guilty of a misdemeanor and, upon conviction thereof, be fined not more than $500 or confined in jail for not more than 30 days, either or both. Every violation and each day's continuance thereof shall constitute a separate offense. Any such conviction shall not relieve any such person from the payment, collection or remittance of such tax, penalties and interest, as provided in this article.
No tax shall be payable under this article on room charge paid to any hospital, medical clinic, nursing home, convalescent home, or home for the aged. Also, no tax shall be payable under this article on space rental paid to any travel campground.