Alexandria homeowners who rent their homes through Airbnb will have an easier means of collecting lodging taxes.
The City of Alexandria has entered into an agreement with the online home-sharing platform to collect taxes (called the Transient Lodging Tax from short-term residential rentals) and send those payments to the City.
The Transient Lodging Tax is often commonly referred to as the “Hotel” tax, but it applies to home-sharing rentals, as well.
Though Airbnb offers such a tax collection service in many other states, Alexandria is the first locality in Virginia to enter into this type of agreement, which takes effect in April.
The partnership will ensure the Transient Lodging Tax is collected from each renter at the time of reservation through the Airbnb platform. This agreement is expected to significantly reduce the workload for rental owners and City staff, and vastly simplify the reporting and payment process for most home-sharing residents.
(See Alexandria homes on Airbnb here.)
In January, Alexandria launched a free, mandatory online registry for short-term rental properties. Short-term residential rental, or “home sharing,” refers to the rental of houses, condos or apartments to guests staying for 30 days or less. Unless exempted by ordinance, registration by short-term rental property owners is required by law. There is no cost to register, but there is a penalty for failing to register. All short-term rental property owners, including property owners using Airbnb, are required to register.
For more information or to register, visit the Short Term Residential Rental Registry page.
While this tax collection agreement is only with Airbnb, the City reminds all home-sharing operators using other platforms that they continue to be responsible for collecting and remitting the Transient Lodging Tax directly to the City. Questions about remitting Transient Lodging Tax payments should be directed to businesstax@alexandriava.gov, or (703) 746-3903.
