SB 1398

Abstract

Retail sales and transient occupancy taxes on room rentals. Provides that retail sales and hotel taxes on transient room rentals shall be computed on the basis of the total charges or the total price paid for the use or possession of the room. For those cases in which a hotel or similar establishment contracts with an intermediary to facilitate the sale of the room and the intermediary charges the customer for the room and such facilitation efforts, the bill requires the intermediary to separately state the taxes on the bill or invoice provided to the customer and to collect the taxes based upon the total charges or the total price paid for the use or possession of the room. The bill provides that an estimated amount equivalent to the sales tax revenue attributable to the charge for the service provided by the intermediary shall be dedicated to the Virginia Tourism Authority to administer grants for tourism promotion.

Retail sales and transient occupancy taxes onroom rentals. Provides that retail sales and hotel taxes on transientroom rentals shall be computed on the basis of the total chargesor the total price paid for the use or possession of the room. Forthose cases in which a hotel or similar establishment contracts withan intermediary to facilitate the sale of the room and the intermediarycharges the customer for the room and such facilitation efforts,the bill requires the intermediary to separately state the taxes on the bill or invoice provided to the customer and to collect thetaxes based upon the total charges or the total price paid for theuse or possession of the room. The bill provides that tax revenueattributable to the charge for the service provided by the intermediary,whether accruing to the state or a locality, shall be dedicated totourism promotion.