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HB 2383

Transient occupancy tax; administration.

2025 Regular Session Introduced by Nadarius Clark and 5 co-sponsors

Virginia updates transient occupancy tax administration rules effective July 2025, modifying how localities collect and enforce lodging taxes on short-term rentals and hotels.

Acts of Assembly Chapter text (CHAP0458)
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Bill Summary · HB 2383

Legislative bill overview

HB 2383 modifies Virginia's transient occupancy tax (TOT) administration and collection procedures for short-term lodging accommodations. The bill became law on July 1, 2025, and adjusts how localities can implement and enforce these taxes on hotels, vacation rentals, and similar temporary housing.

Why is this important

Transient occupancy taxes generate significant revenue for Virginia localities and tourism infrastructure. Changes to tax administration directly affect how much revenue cities and counties collect, influence tourism competitiveness, and impact short-term rental operators and property owners who must comply with tax requirements.

Potential points of contention

  • Revenue uncertainty: Modifications to tax administration procedures may affect collection rates and local government budgets, with some jurisdictions potentially gaining or losing revenue depending on enforcement mechanisms
  • Compliance burden: Changes could shift reporting or payment responsibilities between operators, platforms, and localities, creating compliance complexity for small rental businesses
  • Competitive effects: Alterations to tax administration may create uneven playing fields between different types of accommodations (hotels vs. vacation rentals) or between localities with different implementation approaches

Compiled from official sources — confirm details with the bill’s official record.

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