Daily Rental Property Tax  

The City’s Daily Rental Tax is managed by the Department of Finance’s Business Unit. The Daily Rental Property Tax is a tax levied and collected by daily rental businesses from the lessee of the daily rental property at the time of the rental. The Daily Rental Tax is in lieu of the Business Tangible Personal Property Tax on daily rental property.  

Daily Rental Property Tax Rates, Dates, Penalty, and Interest 

• Rates: 
  • 1 percent of gross rental proceeds for businesses who primarily rent property other than heavy equipment 
  • 1.5 percent of gross rental proceeds for businesses who primarily rent property that is heavy equipment  
• Dates:  
  • April 15 Daily Rental Property Tax due date for Quarter 1 ending March 31  
  • July 15 Daily Rental Property Tax due date for Quarter 2 ending June 30 
  • October 15 Daily Rental Property Tax due date for Quarter 3 ending September 30 
  • January 15 Daily Rental Property Tax due date for Quarter 4 ending December 
• Penalty: 10 percent or $10.00, whichever is greater, upon the failure to file an application or the failure to pay the tax by the appropriate due date 
• Interest: 10 percent annually when not paid by the due date which begins calculating the first of the following month 

Daily Rental Property Tax Governing Legislation* 

For detailed legislative information on the Daily Rental Property Tax, please refer to the following: 

• Code of Richmond: Article XVII. - Short-Term Rental Tax 
• Code of Virginia: Article 3.1. Short-Term Rental Property 

* Please note, this list may not be exhaustive of all sections of governing code 

Daily Rental Property Tax Frequently Asked Questions (FAQs) 

What is Daily Rental Property? 
Daily Rental Property is all tangible personal property held for rental and owned by a person engaged in the short-term rental business. 

What is a Daily Rental Business? 
There are two types of businesses that are defined as “short-term rental” businesses in the Code of Virginia and Richmond City Code: 

1. A business in which not less than 80 percent of the gross rental receipts of such business during the preceding year were from transactions involving the rental of short-term rental property, other than heavy equipment property, for periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee. 

2. A business in which not less than 60 percent of the gross rental receipts of such business during the preceding year were from transactions involving the rental of heavy equipment property for periods of 270 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee.  

What is considered heavy equipment property? 
Heavy equipment property means rental property of an industry that is described under code 532412 or 532490 of the 2002 North American Industry Classification System (NAICS) as published by the United States Census Bureau, excluding office furniture, office equipment, and programmable computer equipment and peripherals as defined in Virginia Code § 58.1-3503 A. 16. 

How does a business qualify as a short-term rental business with the City of Richmond? 
A business qualifies as a short-term rental business by:  

1. Completing New Business License Application that provides the Department of Finance with the necessary information to determine that the business meets one of the two definitions in the Virginia Code as a short-term rental business, and;  
2. Receipt of a certificate of registration signed by the Director of Finance for the City of Richmond. 

Can a short-term rental business lose its certification as a short-term rental business? 
Yes. In the event the Director of Finance makes a written determination that a rental business previously certified as short-term rental business has failed to meet either of the tests set forth in Code of Virginia § 58.1-3510.4 B. during a preceding tax year, such business shall lose its certification as a short-term rental business. 

What are the consequences of a short-term rental business losing its certification as a short-term rental business? 
When a business loses its certification as a short-term rental business, all of the rental property of the business is subject to the business personal property tax for the tax year in which such certification is lost and any subsequent tax years until such time as the rental business obtains recertification. 

Can a business that loses its certification as a short-term rental business be recertified? 
Yes. A rental business that has been decertified shall be eligible for recertification for a subsequent tax year upon a showing that it has met one of the tests provided in Code of Virginia § 58.1-3510.4 B. for at least ten months of operations during the present tax year. 

Are there any exemptions from the Daily Rental Property Tax? 
Yes. The following rentals are exempt from the Daily Rental Property Tax: 

• Rentals by the commonwealth, any political subdivision of the commonwealth or the United States 
• All exemptions applicable in Code of Virginia § 58.1-600 et seq. shall apply to the short-term rental property tax 

Can I appeal a Daily Rental Tax assessment? 
An administrative appeal may be filed in writing concerning the Daily Rental Tax assessment with the Director of Finance of the City of Richmond at the following address:  

Director of Finance  
Attn: Daily Rental Tax Appeal  
900 E. Broad Street, Suite 1003  
Richmond, VA 23219  

A judicial appeal may be filed with the Richmond Circuit Court at the following address:  

Richmond Circuit Court  
Attn: Daily Rental Tax Appeal  
400 N. Ninth Street  
Richmond, VA 23219 

If you have a question, comment, or concern regarding City of Richmond Daily Rental Tax, please contact RVA 311 at (804) 646-7000 or click here to submit a ticket.