The Fredericksburg City Code defines a Short-Term Rental Business as a business where not less than 80% of the gross rental receipts of such business in any year are from transactions involving rental periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessor.
A tax of 1% of gross proceeds is imposed on every person engaged in the short-term rental business.
Entities that are responsible for collecting and paying Short-Term Rental Tax need to file a Short-Term Rental Tax Registration form (PDF) with the Commissioner of the Revenue's Office prior to opening for business. A set of Quarterly Remittance of Tax on Short-Term Rental forms (PDF) will be mailed to the taxpayer to be used for filing each quarter. Remittance forms and payment are due on or before the 20th of the month following the end of the quarter.