Short Term Rental Property

Short Term Rental Property
Are you operating a Short Term Rental Property?

Follow these steps to make sure you are in accordance with the laws in Carroll County, VA.

1)     Register your Short Term Rental Property with the Commissioner of the Revenue Office.

In accordance with the Carroll County, VA ordinance, any person or business renting room or space that is suitable or intended for occupancy for dwelling, sleeping, or lodging purposes is required to register annually with the Commissioner of the Revenue Office.

Mail Short Term Rental Registration Form to:     Fran Zimmerman
                                                                            Commissioner of the Revenue
                                                                            605-7 Pine St.
                                                                            Hillsville, VA 24343

2)     Pay Transient Occupancy Tax on your Short Term Rental

In accordance with Carroll County, Va code §221-13, Carroll County, VA, imposes on every transient(s) a lodging tax in the amount of 5% of the charge made for each room rented to such transient(s).  This tax is to be collected from the transient(s) and remitted to the Carroll County Treasurer's Office before the 20th day of the month following the month of collections with a report showing the amount of lodging charges.

Please Note:  (Sites like AirBnB, VRBO, Homeaway, etc. are NOT collecting and remitting this tax for your Short Term Rental)

Mail Transient Occupancy Tax Form to:     Carroll County Treasuer's Office
                                                                    605-10 Pine St.
                                                                    Hillsville, VA 24343

Contact the Carroll County Treasurer's Office before submitting your initial Transient Occupancy Tax Form (276)730-3060 

3)     Pay Sales Tax on your Short Term Rental

In Virginia, accommodations are subject to Virginia sales and use tax at a  rate of 5.3%.   Based on your tax liability, the Virginia Department of Taxation will determine your filing frequency - either monthly or quarterly. Returns are due on the 20th of the month following the close of the filing period. Quarterly filing periods end March 31, June 30, Sept. 30 and Dec. 31. You have to file a return for each period, even if you don’t owe any tax. 

Before you start your Short Term Rental you should have a Virginia Sales Tax number established.  This number can be obtained through the Virginia Department of Taxation Website.

Payments for sales tax can be made through the Virginia Department of Taxation Website.

Please Note:   (Sites like AirBnB, VRBO, Homeaway, etc., may be collecting and remitting this tax for you.  Please contact your service (if applicable) to determine if this tax is being collected.)

4)     Pay Meals Tax

Meals tax is only applicable if you provide a meal to your renters.

In accordance with Carroll County, VA code § 221-29, Carroll County, VA, imposes a tax on the purchaser of every meal served, sold or delivered in the County by a restaurant or caterer. The rate of this tax shall be 4% of the amount paid for the meal.  This tax is to be collected from the purchaser and remitted to the Carroll County Treasurer's Office before the 20th day of the month following the month of collections.

                                                                                     Meals Tax Form

Mail Meals Tax Form to:     Carroll County Treasuer's Office
                                            605-10 Pine St.
                                            Hillsville, VA 24343

Contact the Carroll County Treasurer's Office before submitting your initial Meals Tax Form (276)730-3060 

5)   File your Business Personal Property Form

You are required to pay Business Peronal Property Tax on all items in the Short Term Rental that are not taxed as Real Estate Tax.  Items that need to be listed for Business Personal Property include anything that can be removed from the Short Term Rental this also includs linens, utensils, decorations, hot tubs, porch furniture and decorations, grills, yard equipment, etc.  Business Personal Property Tax must be filed by May 1st, and is due Dec. 5th.

For instructions and filing please see the Business Personal Property link on the Commissioner of the Revenue main page.