Residents using Airbnb and other web-based home sharing services are sending hundreds of thousands of dollars back to the City in the form of taxes.
Since the City of Alexandria started collecting Transient Lodging Taxes in April 2018, the local government has collected more than $250,000 from approximately 245 short-term rental units. The City collected $95,997 from April 1 through June 30, 2018 and collected $161,117 in the first half of fiscal year 2019 (July through December 2018). The City is on track to generate more than $300,000 in the year, exceeding its initial estimate of $100,000.
The new City ordinance, went into effect on Jan. 1, 2018, requiring every short-term residential rental property to register with the City's Department of Finance within 30 days of the property being offered for rental. The City was the first in Virginia to sign an agreement with Airbnb to allow the web-based rental service to collect taxes on behalf of the City. The City started collecting the taxes in April 2018.
The City has identified 370 properties listed for short-term rental in Alexandria. Half of those are in the 22314 ZIP code. More than 14 percent are listed in Potomac Yard and Potomac West (the 22301 ZIP code). The next most-popular ZIP codes for short-term rentals are 22305, 22304 and 22302. Unlike Arlington and Fairfax Counties, Alexandria does not put limits on the total number of days a property can be rented in a year.
In the spring, the City received its first tax payment from Airbnb rentals. Officials were pleasantly surprised by the amount: The Transient Lodging Tax yielded $36,000 in that first month alone on rental properties registered with Airbnb.
In Alexandria, short-term residential rental is defined as the provision of a room or space by an operator that is suitable or intended for occupancy for dwelling, sleeping, or lodging purposes, for a period of fewer than 30 consecutive days, in exchange for a charge for the occupancy. This includes properties rented through the popular Airbnb service, Vaction Rentals By Owner (VRBO.com), Expedia, Flipkey, HomeAway, TripAdvisor and similar services.
