Alexandria Signs Agreement with Airbnb to Collect Lodging Tax

Alexandria Becomes First Locality in Virginia to Collect Airbnb Taxes

The City of Alexandria has just released information that it has entered into an agreement with Airbnb, an online home-sharing platform, to collect the Transient Lodging Tax from short-term residential rentals and remit those payments to the City. The Transient Lodging Tax is often commonly referred to as the “Hotel” tax, but equally applies to home-sharing rentals.

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.

This agreement is only with Airbnb, and the City reminds 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.

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.