Digital Media Fee
Businesses that provide lodging facilities in Virginia must collect a Digital Media Fee on the cost charged to guests for the in-room purchase or rental of digital media.
The fee is 10 percent of the charge for media services offered via an in-room television for a separate charge, and must be collected by any facility that offers temporary lodging; i.e., guest rooms rented out for continuous occupancy for fewer than 90 days. The fee is imposed in addition to all other taxes and fees that may be imposed on charges for temporary lodging, such as the Retail Sales and Use Tax, which must be reported separately on its own return.
The Digital Media Fee must be reported and paid to the Department of Taxation each month, using Form DM-1, which will be provided automatically to each business that has registered for a Digital Media Fee account. Accounts can be registered online.
Other Digital Media Fee Resources