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1. What is Short Term Rental Tax?

A rental tax from the lessee of the daily rental property at the time of the rental for periods of 92 consecutive days or less.

The term short-term rental property does not include trailers or other tangible personal property required to be licensed or registered with the department of motor vehicles, department of game and inland fisheries, or the department of aviation.

2. What are the effects of certification as a short-term rental company?

Local taxes for rental businesses that become certified short-term rental businesses are affected in the following ways:

• Rental inventory is no longer subject to the business tangible personal property tax,
• The business license classification for rental revenue is that of "retail merchant," as opposed to "personal service" for non-certified rental businesses

Certified businesses will receive a certificate which must be displayed in each qualified location.

3. What is the application deadline for certification?

The deadline to apply for renewal certifications is January 31 of the current tax year.

• For new businesses seeking first-time certification as a short-rental business, an application is expected within 30 days (consistent with the grace period for filing the business license application itself).

4. Are there any extensions to the January 31 date for renewal applications for certification?

No. Applications for renewal of certification must be postmarked by January 31 of the tax year for which certification is sought.

5. What if a previously-certified short-term rental business misses the deadline for renewal or otherwise does not qualify for certification in a subsequent year?

The effects of certification are reversed.

• The rental inventory reverts to business tangible personal property taxable status, and the business license classification reverts to that of "personal service."
•  Certification (or lack thereof) is an annual process, meaning that businesses that are certified one year may not be certified the next, and vice-versa.

6. What is the tax rate?

The heavy equipment tax rate is 1.5% and for all other property the rate is 1%.

7. If I collect Short-Term Rental tax, do I have to have a business license as well?

Yes, you are required to obtain a Business Professional and Occupational License tax and report your gross receipts.

8. What are the due dates for the reporting and remittance of Short-Term rental taxes collected?

Short term rental tax is filed quarterly. 

April 30        January - March
July 31          April - June
October 31   July – September
January 31   October - December

9. Is there a late filing/payment penalty for failure to file or remit a return by the prescribed deadlines?

Yes. Chesterfield County Commissioner of the Revenue to impose a penalty of 10% of the tax assessable for the non-filing or late filing/payment of a tax return. This penalty becomes a part of the tax due.

10. What records must I keep regarding Short-Term Rental tax?

Businesses responsible for the collection and remittance of Short-Term Rental tax should keep accurate records for the current and three prior calendar years. These records are subject to audit by the Office of the Commissioner of the Revenue.