Bonnie Cranmer
Contributing writer
At the Oct. 3 meeting of the Craig County Board of Supervisors, the Craig County Commissioner of the Revenue office presented the challenges facing the lodging industry in regards to reporting. The proposed ordinance would require property owners to provide reporting on the revenue on rentals through “intermediaries” such as Airbnb or VRBO. This has been an ongoing challenge throughout Virginia and beyond.
The process for short-term rentals, meaning less than 30 days, requires registration by the property owner for “transient occupancy” tax collection. Monthly reporting is done by the property owner, submitting 5% of the net receipts. If a service like Airbnb or VRBO was used, those corporations are required by Virginia law to provide the detail along with the tax. This has been met with a challenge from the intermediary agencies.
“Currently, we have 28 registered accounts,” Commissioner of the Revenue for Craig County Danielle Snider said. “Out of these accounts, eight of them have more than one property that they rent out…20 of them are using an intermediary.” The problem is the refusal of the intermediary agencies to provide details of the revenue, which leads to confusion, loss of time and money.
“It’s the same data we’d expect from any host paying on their own behalf because we need to tie what is paid to what is owed,” stated Todd Divers, Charlottesville Commissioner of Revenue, in a January 2024 article in The Daily Progress. Unlike individuals, Airbnb sends its payments with no supporting documentation so it’s difficult to know what’s being paid for and if it is correct. This is an ongoing battle with Airbnb.
The proposed Craig County ordinance reads “Transient Occupancy Tax, of the Code of Ordinance of Craig County, Virginia, To Require Accommodations Providers Who Offer or Furnish Accommodations Facilitated by Accommodations Intermediaries to File Informational Returns.” It is an effort to have correct information as some problems with zip codes and other errors have occurred. “This is the County’s ordinance. I am the one who administers the tax. I’m trying to make sure that it’s consistent and fair to everyone,” Snider stated. The revenue from lodging in the 2023-24 fiscal year was over $60,000.
Tourism is being developed in Craig County, as noted by Simmonsville representative Jason Matyas, who has been involved in the Farmers Market project and Craig Valley Railbed Trail committee representative Woody Lipes. With the Blue Ridge Parkway closed indefinitely, travelers will be seeking other routes along the picturesque mountains of western Virginia, bringing much needed attention to the smaller communities in this part of the state. More properties will develop overnight lodging, from high end destinations to cabins on the creek to primitive camping sites, all are in demand in this area.
To learn more about how the “transient occupancy” tax works, visit the Commissioner of the Revenue page on the Craig County website. While the Craig County Board of Supervisors understands the challenge faced by the Commissioner of the Revenue, the ordinance has been tabled until the November meeting.
