Transient Occupancy Tax
§ 42-201 Definitions
For the purpose of this Article, the following words and phrases shall have the meanings respectively ascribed to them by this section unless the context clearly indicates a different meaning:
ACCOMMODATIONS – Any room or rooms, lodgings, or accommodations in any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, or any other place in which rooms, lodging, space, or accommodations are regularly furnished to transients for a consideration.
ACCOMMODATIONS FEE – The room charge less the discount room charge, if any, provided that the accommodations fee shall not be less than $0.
ACCOMMODATIONS INTERMEDIARY - Any person other than an accommodations provider that facilitates the sale of an accommodation, charges a room charge to the customer, and charges an accommodations fee to the customer, which fee it retains as compensation for facilitating the sale. For purposes of this definition, "facilitates the sale" includes brokering, coordinating, or in any other way arranging for the purchase of the right to use accommodations via a transaction directly, including via one or more payment processors, between a customer and an accommodations provider.
"Accommodations intermediary" does not include a person:
1. If the accommodations are provided by an accommodations provider operating under a trademark, trade name, or service mark belonging to such person; or
2. Who facilitates the sale of an accommodation if (i) the price paid by the customer to such person is equal to the price paid by such person to the accommodations provider for the use of the accommodations and (ii) the only compensation received by such person for facilitating the sale of the accommodation is a commission paid from the accommodations provider to such person.
ACCOMMODATIONS PROVIDER – Any person that furnishes accommodations to the general public for compensation. The term "furnishes" includes the sale of use or possession or the sale of the right to use or possess.
AFFILIATE – With respect to any person, any other person directly or indirectly controlling, controlled by, or under common control with such person. For purposes of this definition, "control" (including controlled by and under common control with) shall mean the power, directly or indirectly, to direct or cause the direction of the management and policies of such person whether through ownership or voting securities or by contract or otherwise.
DISCOUNT ROOM CHARGE – The full amount charged by the accommodations provider to the accommodations intermediary, or an affiliate thereof, for furnishing the accommodations.
RETAIL SALE – A sale to any person for any purpose other than for resale.
ROOM CHARGE – The full retail price charged to the customer by the accommodations intermediary for the use of the accommodations, including any accommodations fee, before taxes. The room charge shall be determined in accordance with 23VAC10-210-730 and the related rulings of the Virginia Department of Taxation on the same.
TOWN – Any official authorized by the Town Council or the Town Manager to act on behalf of the Town of Haymarket in enforcing this Chapter.
TRANSIENT - Any person who, for a period of less than ninety (90) consecutive days, either at his own expense or at the expense of another, obtains accommodations for which a charge is made.
§ 42-202 Imposition of tax
There is hereby levied and imposed, in addition to all other taxes and fees of every kind imposed by law, on each transient obtaining accommodations, a tax equal to seven percent (7%) of the amount subject to tax under Town Code § 42-203.
§ 423-203 Scope of transient occupancy tax
A. The transient lodging tax is imposed only for the use or possession of any room or space that is suitable or intended for occupancy by transients for dwelling, lodging, or sleeping purposes.
B. For any retail sale of accommodations not facilitated by an accommodations intermediary, the accommodations provider shall collect the tax imposed pursuant to this article, computed on the total price paid for the use or possession of the accommodations, and shall remit the same to the locality and shall be liable for the same.
C. For any retail sale of accommodations facilitated by an accommodations intermediary, the accommodations intermediary shall be deemed under this article as a facility making a retail sale of an accommodation. The accommodations intermediary shall collect the tax imposed pursuant to this article, computed on the room charge. When the accommodations are at a hotel, the accommodations intermediary shall remit the taxes on the accommodations fee to the locality and shall remit any remaining taxes to the hotel, which shall remit such taxes to the locality. When the accommodations are at a short-term rental, as defined in Virginia Code § 15.2-983, or at any other accommodations, the accommodations intermediary shall remit the taxes on the room charge to the locality.
D. An accommodations intermediary shall not be liable for taxes under this article remitted to an accommodations provider but that are then not remitted to the locality by the accommodations provider. For any retail sale of accommodations facilitated by an accommodations intermediary, an accommodations provider shall be liable for that portion of the taxes under this article that relate to the discount room charge only to the extent that the accommodations intermediary has remitted such taxes to the accommodations provider.
E. In any retail sale of any accommodations in which an accommodations intermediary does not facilitate the sale of the accommodations, the accommodations provider shall separately state the amount of the tax in the bill, invoice, or similar documentation and shall add the tax to the total price paid for the use or possession of the accommodations. In any retail sale of any accommodations in which an accommodations intermediary facilitates the sale of the accommodation, the accommodations intermediary shall separately state the amount of the tax on the bill, invoice, or similar documentation and shall add the tax to the room charge; thereafter, such tax shall be a debt from the customer to the accommodations intermediary, recoverable at law in the same manner as other debts.
§ 42-204 Collections to be held in trust
The taxes required to be collected under this Article shall be deemed to be held in trust by the person required to collect such taxes until the same shall have been remitted to the Town.
§ 42-205 Reports and remittances
The person collecting any tax as provided in this Article shall make out a report thereof upon such forms setting forth such information as the Town may prescribe and require, showing the
amount of lodging charges subject to tax and the tax required to be collected and shall sign and deliver such reports with the remittance of such tax to the Town. Such reports and remittances shall be made monthly on or before the 20th day of the calendar month following the month being reported.
§ 42-206 Penalty and interest upon failure to report or remit tax
If any person shall fail or refuse to report and remit to the Town the tax required to be collected and paid under this Article within the time and in the amount as provided for in this Article, there shall be added to such tax a penalty in the amount of ten percent (10%) of the tax due. The Town shall also assess interest on the tax and penalty at the rate of ten percent (10%) per year from the day after the tax is due until paid. Penalty and interest shall not be imposed contrary to the restrictions set out in Virginia Code § 58.1-3916.
§ 42-207 Procedure when tax not collected or reported
If any person shall fail or refuse to collect the tax imposed under this Article and to make within the time provided herein any report and remittance required, the Town shall proceed to assess the tax due based on the information reasonably available and to collect the tax due, together with any penalties and interest owed, in any manner permitted by law.
§ 42-208 Preservation of records
It shall be the duty of every person liable for the collection and payment to the town of any tax imposed by this Article to keep and preserve for a period of two (2) years such suitable records as may be necessary to determine the amount of such tax due to the town. The Town shall have the right to inspect such records at all reasonable times.
§ 42-209 Procedure upon cessation of business
Whenever any person required to collect and pay to the town a tax imposed by this Article shall cease to operate, go out of business or otherwise dispose of his business, any tax then payable to the town shall become immediately due and payable, and such person shall immediately make a report and pay the tax due to the Town.
§ 42-210 Exceptions
No tax shall be payable under this article in any of the following instances:
(1) On charges for accommodations paid by any agencies of federal, state or local governments for their officers or employees thereof while on official business.
(2) On charges for accommodations paid to any hospital, medical clinic, convalescent home or home for aged people.
