Short-term rental property; shall classify as a separate classification of merchants' capital. (SB355)

Introduced By

Sen. Mark Obenshain (R-Harrisonburg)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Local taxation of short-term rental property.  Provides that short-term rental property is a classification of merchants' capital and for local property taxation purposes shall be subject to the merchants' capital tax or the short-term rental property tax, but not both. The bill also prohibits a locality from levying both a short-term rental property tax and a BPOL tax on merchants engaged in the business of short-term property rentals.

The bill would be effective for tax years and license years beginning January 1, 2011. Read the Bill »


Bill Has Passed


01/12/2010Prefiled and ordered printed; offered 01/13/10 10103844D
01/12/2010Referred to Committee on Finance
01/22/2010Impact statement from DHCD (SB355)
01/23/2010Impact statement from TAX (SB355)
02/01/2010Impact statement from DHCD (SB355)
02/02/2010Impact statement from DHCD (SB355)
02/03/2010Impact statement from TAX (SB355)
02/03/2010Committee substitute printed 10105019D-S1
02/03/2010Reported from Finance with substitute (15-Y 0-N) (see vote tally)
02/04/2010Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/08/2010Read second time
02/08/2010Reading of substitute waived
02/08/2010Committee substitute agreed to 10105019D-S1
02/08/2010Engrossed by Senate - committee substitute SB355S1
02/09/2010Read third time and passed Senate (40-Y 0-N) (see vote tally)
02/14/2010Impact statement from TAX (SB355S1)
02/16/2010Placed on Calendar
02/16/2010Read first time
02/16/2010Referred to Committee on Finance
02/17/2010Assigned Finance sub: #1
02/24/2010Subcommittee recommends reporting (10-Y 0-N)
03/01/2010Reported from Finance (22-Y 0-N) (see vote tally)
03/02/2010Read second time
03/03/2010Read third time
03/03/2010Passed House BLOCK VOTE (99-Y 0-N)
03/03/2010VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (see vote tally)
03/04/2010Impact statement from TAX (SB355ER)
03/11/2010Bill text as passed Senate and House (SB355ER)
03/11/2010Signed by Speaker
03/13/2010Signed by President
04/08/2010G Approved by Governor-Chapter 255 (effective 1/1/10)
04/08/2010G Acts of Assembly Chapter text (CHAP0255)


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 30 seconds.


Barry Mark writes:

Senator Obenshain: It seems the folks trying to ban short-term rentals in Massanutten have gotten you to do their dirty work. This is just an attempt to ban a practice that takes place throughout Virginia and the country and provides folks a service they can't get from a hotel. Your disguising this "a way to generate revenue" is ludicrous. In reality this is you trying to accomodate a constituent that wants to BAN SHORT-TERM RENTALS. A Republican advocating raising taxes on folks that help bring in Virginia tourism dollars .... what is the world coming to. Great sound bite for your next opponent. I hope when we ask to see your contibutors there is not a bunch of donations from the Massanutten folks against short-term rentals - if so, the newspapers will have a field day.

Ryan writes:

Another year, another failed attempt to regulate short-term rentals through taxation. Why won't legislators realize that short-term rentals are vital to the Virginia economy and are permissible according to the Virginia Supreme Court. We have defeated these bills three years in a row and will do so again. If you want to tax short-term rentals, we have asked that you work with us to ensure that the taxes are legitimately imposed and do not change the residential nature of the homes that are rented. Why do you keep refusing to work with us and instead propose your own versions? As long as you do so, we will ensure that these bills fail.