Tax Law Updates | New Proposed Legislation
February 25, 2010
VA Senate Passes Bill Mandating Online Travel Companies to Collect Taxes on Hotel Accommodations
Retail Sales and Use Tax: Taxes on Room Rentals
SB, 452, 2/1/2010
The State of Virginia Senate has passed by a unanimous vote of 40-0 SB 452, a legislation that authorizes third party intermediaries (i.e. online travel companies) to collect retail sales and use taxes on the full price paid for hotel accommodations.
Under current law, the Retail Sales and Use Tax is imposed on the gross proceeds derived from the charge for transient accommodations made by the entity providing the accommodations. Third parties who facilitate these transactions are not liable to collect the tax on any price mark-up and other charges and fees they may charge in connection with the provision of…
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View a PDF of the proposed legislation
