Transient Occupancy Tax
News and Announcements
- Effective July 1, 2023, the Code of Virginia §58.1-3827(C) requires accommodations intermediaries to report transient occupancy tax monthly by the 20th of the following month. Accommodations intermediaries should also submit to the Business Tax Division monthly, a list of property addresses and gross receipts for all accommodations facilitated by the accommodations intermediary in the prior month.
- Effective April 1, 2024, the Loudoun County Ordinances will require all entities to report transient occupancy tax monthly by the 20th day of the month for tax collected in the prior month.
- Read details in this news release.
Transient Occupancy Tax
Loudoun County’s Transient Occupancy Tax (TOT) is a tax collected and held in trust by an accommodations intermediary, or operators of hotels, motels, boarding houses, short-term residential rentals and other lodging places which can accommodate one or more persons at one time, including travel campgrounds that offer guest rooms or other accommodations rented out for continuous occupancy for fewer than 30 consecutive days. The tax is paid by the guest and collected by the lodging establishment or accommodations intermediary on behalf of the county. TOT applies to establishments within the county that are located outside the incorporated towns.
- The tax is 8% of the total amount paid by the guest or customer for use or possession of the room or space.
- The state of Virginia also requires collection of sales tax on most room rentals. Lodging establishment operators should collect 14% of the room rental (8% TOT + 6% sales tax) in most instances and remit the sales tax portion to the VA Department of Taxation. For information concerning sales tax reporting requirements, visit the VA Department of Taxation website or call 804-367-8037.
- The tax must be calculated on the total charge paid by the customer, excluding taxes, for use or possession of the room or space. TOT does not apply to meeting rooms.
- TOT is a trust tax where the lodging establishment operator or accommodations intermediary acts as a fiduciary on behalf of the county; any TOT taxes collected from customers are held in trust for the county and must be reported and remitted quarterly by the filing and payment deadline.
- If the room rental was subject to the tax but the tax was not collected, the lodging establishment operator or accommodations intermediary is still responsible for payment of the tax to the county.
- A quarterly reminder notice is sent to all entities registered with the Commissioner of the Revenue's office to report TOT. Filing should be completed online at www.loudoun.gov/efile and payment can be made online as well at the Treasurer's Office payment portal.
- Reporting and payment are due on the last day of the month following the end of a quarter.
- Of the eight cents per dollar collected:
- Two cents is allocated to the county’s General Fund.
- Three cents is spent promoting tourism, travel, or business that generates tourism or travel.
- Three cents is remitted to the state to fund transportation.
|Report and Payment Deadline||TOT Collection Period|
|January 31||October - December|
|April 30||January - March|
|July 31||April - June|
|October 31||July - September|
- A 10% late filing penalty is imposed if the filing is completed after the reporting deadlines above.
- Interest at the rate of 10% per year computed on a monthly basis beginning on the first day following the date upon which the tax was due will be added to the tax and penalty.
- An additional penalty of up to $1000 may be imposed for repeated delinquencies.
- Please contact the Business Tax Division by e-mail, or at 703-777-0260 with any questions.
- Operators of hotels, motels or other lodging places renting eight or more guestrooms are also subject to the Business Professional and Occupational License tax.
- All businesses and individuals offering rooms for rent are required to report business personal property.