Transient Occupancy Taxes
How to calculate, report and remit the transient occupancy tax (TOT) for a short-term rental (STR).
Commissioner of the Revenue - Business License
Calculating the TOT
For rentals outside the Sandbridge Special Service District
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Total gross rental = room charge + cleaning fee + additional fees (linens, pets, etc.) + guest service fee.
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Total collected tax = total gross rental x 15% (9% lodging + 6% Virginia sales tax) + $2 per night.
Calculating the TOT
For rentals in the Sandbridge Special Service District
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Total gross rental = room charge + cleaning fee + additional fees (linens, pets, etc.) + guest service fee.
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Total collected tax = total gross rental x 16.5% (10.5% city and 6% Virginia sales tax) + $2 per night.
Remitting the TOT
Remit the TOT and the $2 per night to the city by the 20th of each month for the prior month’s rentals. If there are no rentals for any STR property in a month, a zero filing must be made to avoid a statutory assessment. Remit filings in person, via mail, or online at pay.vbepay.com.
The state sales tax is remitted to the Department of Taxation. Contact the Virginia Department of Taxation for questions or instructions on paying the 6% state sales tax on accommodations.
Virginia Department of Taxation
tax.virginia.gov
804-367-8037
Example of How to Calculate the TOT and Complete Forms
Rental of eight nights through an intermediary.
Description
Calculation
Guest Paid
Description
The nightly rental fee x 8 nights
Calculation
$70.43 x 8
Guest Paid
$563.44
Description
Cleaning fee
Calculation
$110
Guest Paid
$110
Description
Guest service fee
Calculation
$95.07
Guest Paid
$95.07
Description
Transient occupancy taxes (TOTs)
Calculation
$768.51 x .15
Guest Paid
$115.28
Description
$2 per night/flat room tax
Calculation
$2 x 8
Guest Paid
$16
Description
Total
Guest Paid
$899.79
The nightly rental, cleaning, and guest service fees total $768.51. This is the total gross rental amount.
Multiply the total gross rental amount ($768.51) by the transient occupancy yax (TOT) of 15% (9% city lodging & 6% state sales taxes = ($115.28), or 16.5% (10.5% city and 6% state) for the Sandbridge Special Service District.
Add the calculated transient occupancy taxes (TOTs) and flat room tax together ($115.28 + $16.00) to calculate the correct tax amount to charge and collect for your reservation ($131.28).
If the amount collected by the intermediary does not match the correct tax amount to charge, contact the Commissioner’s Office at (757) 385-4515.
Trustee Tax Transient Occupancy (TOT) Form
File the total gross rental amount for all reservations with check-in date within the filing month.
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Box 1 should reflect the total gross of all rentals for that month, regardless of who collected the fees.
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Box 1A should reflect only the portion of total gross rentals that an intermediary collected on behalf of the accommodations provider. The accommodations provider is responsible for remitting the amount an intermediary did not collect from the customer.
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Box 1B reflects the portion of the total gross rentals the accommodations intermediary did not collect, and the accommodations provider is responsible for remitting.
Trustee Tax Flat Room Tax Form
File the total number of nights the property was rented within the filing month.
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Box 1 should reflect the total nights of all rentals for that month, regardless of who collected the fees.
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Box 1A should reflect only the number of nights an intermediary collected on behalf of the accommodations provider. The accommodations provider is responsible for remitting the amount an intermediary did not collect from the customer.
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Box 1B reflects the number of nights the accommodations intermediary did not collect, and the accommodations provider is responsible for remitting.
Rental of 16 Nights
Eight nights through an intermediary and eight nights through an accommodations provider
Description
Calculation
Guest Paid
Description
The nightly rental fee x 8 nights
Calculation
$70.43 x 16
Guest Paid
$1,126.88
Description
Cleaning fee
Calculation
$110 x 2
Guest Paid
$220
Description
Guest service fee
Calculation
$95.07
Guest Paid
$95.07
Description
Transient occupancy taxes (TOTs)
Calculation
$1,441.95 x .15
Guest Paid
$216.29
Description
$2 per night/flat room tax
Calculation
$2 x 16
Guest Paid
$32
Description
Total
Guest Paid
$1,690.24
The nightly rental, cleaning, and guest service fees total $1,441.95. This is the total gross rental amount. Only the intermediary charged the guest service fee.
Multiply the total gross rental amount ($1,441.95) by the transient occupancy tax (TOT) of 15% (9% city lodging & 6% state sales taxes = ($216.29), or 16.5% (10.5% city and 6% state) for the Sandbridge Special Service District.
Add the calculated transient occupancy taxes (TOT) and flat room tax together ($216.29 + $32) to get the correct total tax to charge and collect for your reservation ($248.29).
If the amount collected by the intermediary does not match the correct tax amount to charge, contact the Commissioner’s Office at (757) 385-4515.
Transient Occupancy Form
File the total gross rental amount for all reservations with check-in date within the filing month.
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Box 1 should reflect the total gross of all rentals for that month, regardless of who collected the fees.
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Box 1A should reflect only the portion of total gross rentals that an intermediary collected on behalf of the accommodations provider.
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Box 1B reflects the portion of the total gross rentals the accommodations intermediary did not collect, and the accommodations provider is responsible for remitting.
Flat Room Tax Form
File the total number of nights the property was rented within the filing month.
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Box 1 should reflect the total nights of all rentals for that month, regardless of who collected the fees.
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Box 1A should reflect only the number of nights an intermediary collected on behalf of the accommodations provider.
-
Box 1B reflects the number of nights the accommodations intermediary did not collect, and the accommodations provider is responsible for remitting.