Transient Occupancy Tax

Transient occupancy/lodging or room tax is a tax on rentals of hotels, motels, guest rooms, campgrounds, and other temporary lodging of no more than 30 days. This is a 5% tax that is assessed to the consumer and collected by the business. The business then reports and pays the amounts collected on a monthly basis to the Commissioner of the Revenue's Office.


Collections of $2 Additional Tax of Transient Occupancy


The 2004 Virginia General Assembly passed Bill Number SB 652, which authorizes York County to impose an additional Transient Occupancy Tax of $2 per room per night. This tax does not apply to rooms rented and continuously occupied by the same individual(s) for 30 or more continuous days.

The York County Board of Supervisors adopted Ordinance Number 04-8 to amend the York County Code § 21-93 to impose the $2 per room, per night tax in addition to the current Transient Occupancy Tax effective July 1, 2004. Of the revenues generated, one-half of the revenues generated from each night of occupancy of an overnight guest room is deposited to the Historic Triangle Marketing Fund. This fund is used to market/advertise the Historic Triangle which includes the City of Williamsburg and the counties of James City & York County as a tourist destination. The remaining one-half revenue received by the county is designated to the Tourism Fund.
 
A form, in addition to the current form for Transient Occupancy Tax, will be mailed to each hotel, motel, bed and breakfast owners. As with the Transient Occupancy Tax, this form is due to be filed and payment remitted to the Commissioner of the Revenue on or before the 20th day of the month following the month collected. Access the occupancy tax online forms.

Short-Term Rental of Real Estate



If you are planning to rent a home that you own or a room out of the home, located in York County, short-term, less than 90 days to guests, you may be required to obtain a Special Use Permit as well as a business license before beginning this activity. It will also be required, if you rent the home or a room in your home for less than 90 days to guests, that you collect Sales & Use Tax from your guest.

Also, if you plan to rent a home or a room out of your home for less than 30 days to guests, you will be required to collect and file for the Transient Occupancy Tax and the Additional $2 Transient Occupancy Tax (Room Tax) from your guest.

In order to obtain information on how to apply for a Special Use Permit, contact York County Planning at (757)890-3404 or visit their webpage at www.yorkcounty.gov/planning.

Once your Special Use Permit has been approved by the York County Board of Supervisors, you can apply for your Business License (PDF) . It will also be necessary for you to complete a Consumer Tax Registration Form (PDF).

The following taxes will need to be collected from your guest and submitted on a monthly basis:
Tax Type: Amount: Submitted to:
Sales & Use Tax 7% of nightly charge Virginia Department of Taxation
Transient Occupancy Tax 5% of nightly charge Commissioner of the Revenue
$2 Room Tax $2 charge per guest room per night Commissioner of the Revenue