Homestays

Homestay Operators / Short Term Rentals

For those looking to operate a Homestay / Short Term Rental within the City of Charlottesville, there are a series of steps necessary for your business activity to be compliant with City Code or Regulations.

Step 1 - Procure Homestay Permit 

• Homeowners offering temporary lodging in one of the City’s residential zoning districts must procure an annual Homestay Permit from the Office of Neighborhood Development Services (NDS). 
• To learn more and to apply for a Homestay permit, visit NDS - Homestays.

Step 2 - Business License

Complete the Request for Business Information

• You are required to obtain a business license for each year in operation. Business license renewals are due by March 1st. 
• Business licenses will be statutorily assessed each year if a filing is not received.

Step 3 - Attestation

Complete the Accommodations Provider Attestation 

• Hosts who exclusively use 3rd party intermediaries (Airbnb, VRBO, etc.)
  • Complete Sections 1 & 2.
  • This will exempt you from monthly reporting requirements for the given license year.
  • This attestation is required yearly during license renewal by March 1st.
• Hosts who facilitate their own bookings or do so in combination with a 3rd party intermediary.
  • Complete Sections 1 & 3.
  • Transient Occupancy Tax Rate is 9%.
  • Filing and payment is due on the 20th of each month.
    • Gross receipts from direct bookings are taxed and paid. 
    • Gross receipts from 3rd party intermediaries (Airbnb, VRBO, …) are still reported but no additional taxes are owed.
    • Booking documentation is required with filing.

Step 4 – Business Tangible Property

Complete the Fixed Asset Schedule

• Report furniture, fixtures, computers, décor, and all other equipment used in the business operation.
• Include the original cost of each item and date purchased.
• Although the operating Homestay may contain property that you consider ‘personal’ or ‘inherited’ through private use, once the property is used in any business capacity, it is subject to assessment of Business Tangible Property.
• A statutory assessment will be levied if no filing is received.

Submission

Step 1: Homestay Permit – NDS - Homestays

Step 2 – 4: Commissioner of Revenue Office

• Request for Business Information
• Accommodations Provider Attestation
• Fixed Asset Schedule

Two options to apply:

Documents may be submitted electronically:

Go to Secure Portal and choose Category – Business License Application

They may also be mailed to:

Charlottesville Commissioner of the Revenue
PO Box 2964
Charlottesville, VA 22902

Once all documents have been submitted, your Homestay permit approved, and your business license payment has been processed, you will be issued with a business license enabling you to conduct your homestay business.

Closure

Business Licenses & Business Tangible Property will be statutorily assessed each year if a filing is not received. If the business closes and is no longer in operation, you need to contact the Commissioner of Revenue office to notify us of closure at Charlottesville.gov/cor/bizchange – additional supporting documentation may be requested.

Questions  

For Homestay permit, contact 434-970-3182 or str@charlottesville.gov.

For Business license, transient occupancy tax, or Business Tangible Property tax, contact 434-970-3170 or citycorbiz@charlottesville.gov.