Airbnb’ing Rooms in Loudoun County? Your Friendly Local Tax Department Wants to Know…

On October 19, 2017, the Loudoun County Board of Supervisors approved a plan to create a registration process for homeowners who rent out rooms in Loudoun County. The plan has two phases: 1) registration and taxation; and 2) zoning and public safety.

The county will research the issue and obtain feedback from the public between now and December 2017. Once the registry is established, county officials plan to have a second public outreach process focused on changing county regulations.

The General Assembly passed a law earlier this year that allows localities to establish a registry of people offering short-term residential rentals and requires them to register annually. It also includes a registration exemption for real estate licensees or people represented by a real estate licensee.

According to Visit Loudoun, Loudoun County has 439 residential units listed on Airbnb, representing 932 sleeping rooms. The county’s plan is the first step in regulating theses rooms.

Phase I: Registration and Taxation: anticipated to occur between now and February or March 2018

• Definition of who qualifies for registration
• Determine a registration fee
• Establish non-compliance penalties
• Revise tax provisions, if necessary

Phase II: Zoning and Public Safety: anticipated to occur in 2018

• Maximum number of rooms allowed for rent
• Maximum number of guests allowed per room and/or per night
• Maximum number of days per year
• Whether special events should be permitted
• Any owner-occupancy requirement
• Use of accessory dwellings or secondary units
• Parking standards
• Types of rooms that can be rented
• Health Department review
• Fire Marshall and Building Code inspections

County staff have met with other northern Virginia jurisdictions in an effort to minimize regulatory differences across the jurisdictions. They anticipate returning to the Board of Supervisors in January 2018, with recommendations for establishing the registration process.

Thanks the the Dulles Area Association of Realtors for research for this article!