Short-Term Residential Rental (STR) Registry Information
As of July 1, 2020, homeowners may register to rent space in their homes to guests for stays of less than 30 days. This includes rentals listed through such online platforms as AirBnB, VRBO, HomeAway, and others. Prior to offering space for short-term rental, the homeowner must complete the registration process. The registration process consists of two phases- zoning approval and online registration.
Homeowners are also responsible for collecting the 8% transient occupancy tax from their guests. (Note: Online platforms do not collect the Henrico transient occupancy tax for the homeowners)
In most cases, homeowners offering rentals of their homes for less than 30 days must register. There are a few exceptions. First, registration is not required if more than 10 rooms are available to rent- this activity would be subject to the business license tax requirements described at this link https://henrico.us/services/business-license/ , and the homeowner should contact the Business Section at (804) 501-4310 for additional information.
Second, if any of the following statements are true, registration is not needed, and the homeowner must contact the Business Section at (804) 501-4310 to determine their tax status:
- The homeowner has a business license for operating a hotel, motel, campground, or real property management business
- The rental is operated by or offered through a licensed real estate agent
- The rental is a timeshare, or
- The homeowner has a Virginia Health Department license or registration for providing room space or lodging
THESE STEPS MUST BE COMPLETED IN ORDER:
- Zoning Approval: Contact the Permit Center at (804) 501-7280 to determine the appropriate zoning approval process. Upon completion of the zoning approval process, the homeowner will be issued a unique number that will be needed to complete the online registration process;
- Online Registration: Register online at this link: https://secure.hostcompliance.com/henrico-county-va/permit-registration and pay the $200 registration fee (includes cost of safety inspection);
- Once registered, a certificate of registration will be issued. This allows the homeowner to operate the short-term rental and to collect the transient occupancy tax from guests.
The registration must be renewed each year. Operating without a registration can result in civil and criminal penalties.
Short-Term Residential Rental Transient Occupancy Tax
- The tax is 8% of the charges made to guests for lodging (including, but not limited to, room rentals, no-show fees, standard cleaning fees, pet fees, internet charges, late check-out fees, and extra person fees)
- The tax basis does not include Virginia sales taxes collected from guests
- The homeowner must file a transient occupancy tax return, and remit taxes collected from guests, each month
- A return must be filed each month, even if no rentals occurred
- Filings and taxes are due on the 20th day following the month of collection (for example, taxes collected in March would be due April 20th)
- Late filings and payments are subject to penalties of 10% each of the tax due, and interest charged at an annual rate of 10% of the total amount due
- Failure to collect and remit the taxes can result in criminal penalties