[Adopted 6-1-1990 (Ch. 62, Art. V of the 1994 Code)]
State law reference: Municipal excise tax on transient room rentals, Code of Virginia, § 58.1-3840.
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:
- Any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house or other lodging place within the Town offering lodging for compensation to any transient.
- Any natural person or individual who for any period of fewer than 30 consecutive days occupies a lodging room in any hotel for which occupancy a charge is made, whether such charge is paid by the occupant or by another. "Transient" shall also mean any natural person or individual who rents a meeting, banquet, or other hotel space for purposes other than lodging for any period of fewer than 30 consecutive days. Contracting and paying for the occupancy of a lodging room or rooms for 30 consecutive days or more, when the lodging room or rooms are occupied by different individuals or by different groups of individuals for fewer than 30 consecutive days, constitutes transient occupancy or use of the rooms and is subject to the tax provided by this article.
There is hereby imposed and levied by the Town on each transient a lodging tax in the amount of 5% of the charge made for each room rented to such transient. Such tax shall be collected from such transient at the time required by and in accordance with this article.
Every person receiving any payment for lodging with respect to which a tax is levied under this article shall collect the amount of such tax so imposed from the person paying for such lodging at the time payment for such lodging is made. The tax required to be collected under this section shall be deemed to be held in trust by the person required to collect such taxes as provided in this article.
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 Town Treasurer may prescribe and require, showing the amount of lodging charge collected and the tax required to be collected, and shall sign and deliver such report to the Town Treasurer's office with remittance of such tax. Such report and remittance as required by the Town Treasurer shall be made at least once monthly and not later than the 10th day of the month next following in which such tax was collected.
If a person shall fail or refuse to remit to the Town Treasurer the tax required to be collected and paid under this article within the time and in the amount specified, there shall be added to such tax by the Town Treasurer a penalty in the amount of 10% thereof and interest thereon at the rate of 10% per annum, which shall be computed upon the taxes and penalty from the first day of the month next following the month in which such taxes are due and payable.
State law reference: Penalties and interest on delinquent taxes, Code of Virginia, § 58.1-3916.
For the purpose of compensating a 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 his or her return and paying the amount due by him or her, provided that the amount due was not delinquent at the time of payment.
It shall be unlawful for any person to fail or refuse to collect the taxes imposed under this article and to make reports and remittances as required. 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, the Treasurer shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Treasurer shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect such tax, and to make such report and remittance, he or she shall proceed to determine and assess against such person such tax, penalty and interest as provided for in this article, and shall notify such person by registered or certified mail sent to his or her last known place of address of the amount of such tax, interest and penalty, and the total thereof shall be payable within 10 days from the date of the mailing of such notice.
It shall be the duty of every person liable for the collection and payment to the Town of any tax imposed by this article to keep and to preserve for a period of four years such suitable records as may be necessary to determine and show accurately the amount of such tax as he or she may have been responsible for collecting and paying to the Town. The Treasurer may inspect such records at all reasonable times.
Whenever any person required to collect and pay to the Town a tax under this article shall cease to operate or shall dispose of his or her business, he or she shall notify the Treasurer of such fact and any tax payable under this article to the Town shall become immediately due and payable on the date such person shall cease to operate or shall dispose of his or her business and such person having made a report through such date for the collection of such taxes thereafter. Otherwise, such person shall be liable for such taxes through the succeeding collection date.
Any person subject to the provisions of this article failing or refusing to collect the full amount of the tax levied hereby, failing to make payment thereof to the Town, failing or refusing to furnish any report required to be made in this article, failing or refusing to furnish supplemental or other data required by the Treasurer, making a false or fraudulent claim for refund, or violating any other provision of this article shall be guilty of a class 2 misdemeanor. Each failure, refusal, neglect or violation, and each day's continuance thereof shall constitute a separate offense. Conviction of such violation shall not relieve such person from the liability for taxes, penalties and interest or from the duty of collection and remittance of the tax provided for in this article. An agreement by any person to pay the taxes provided for in this article by a series of installment payments shall not relieve any person of criminal liability for violation of this article until the full amount of taxes agreed to be paid by such person is received by the Treasurer.