The Virginia Department of Taxation ("TAX") was asked by the House Finance Committee of the Virginia General Assembly to conduct an in-depth study regarding Senate Bill 452, which was introduced in the 2010 Session of the Virginia General Assembly and continued to the 2011 Session.

This legislation would include the price mark-up and other charges and fees associated with the provision of hotel rooms and similar accommodations that are imposed by third party intermediaries, including "online travel companies", in the tax base of the Virginia Retail Sales and Use Tax and local transient occupancy taxes.

This website contains documents and links to websites that were used in developing the study.

Final Report

The following is the finalized version of the "Study on the Feasibility of Implementing Senate Bill 452." The study was distributed to interested parties on December 2, 2010 and will be posted on the Reports page on the Virginia General Assembly's website. TAX would like to thank everyone who assisted in the development of this study.

OTC Study Report Final 12-02-2010 PDF (4.0 MB) 

Draft Report

The following is the initial draft of the "Study on the Feasibility of Implementing Senate Bill 452." The study was distributed to interested parties on September 20, 2010. Interested parties are asked to review the draft study and submit any comments to kristen.peterson@tax.virginia.gov by close of business, Friday, October 1, 2010.

OTC Study Draft 092010 PDF (3.6MB) DOC (4.6MB) 

Senate Bill 452 Documents

The following documents and links provide additional information concerning Senate Bill 452 and details regarding topics that must be covered in the study.

  • Chairman's Request For Study (PDF 16KB)
  • Follow-up Letter From Senator Whipple (PDF 245KB)
  • SB 452 Text - Substitute (PDF 231 KB) Link
  • SB 452 Fiscal Impact Statement (PDF 17 KB) Link
  • SB 452 Legislative History (PDF 27 KB) Link

Virginia Retail Sales and Use Tax Treatment of Accommodations Providers

The following documents and links explain Virginia's position with respect to the taxability of accommodation stays, the treatment of traditional and non-traditional travel servants, and the treatment of online travel companies.

  • Virginia Code Definition for Retail Sale (PDF 46KB) 
  • Accommodations Regulation, 23VAC10-210-730 (PDF 16 KB) Link
  • Tax Ruling on Travel Agents, PD 88-57 (PDF 15KB) Link  
  • Tax Ruling on Non-Traditional Travel Services, PD 96-3 (PDF 18KB) Link 
  • Tax Ruling on Brokers for Private Residences, PD 07-8 (PDF 20KB) Link 
  • TAX Ruling PD 06-139 (PDF 231KB) Link
  • Regulation 23VAC10-210-730 (PDF 16KB) Link

Meeting Materials

The following are agendas and lists of attendants for the May 27, 2010 meeting and any subsequent meetings, as they occur, as well as the Work Plan for this study.

  • May 27 Meeting Agenda (PDF 26 KB)
  • May 27 Meeting Attendees (PDF 12 KB)
  • Work Plan (PDF 13 KB)
  • Summary of the taxation of online travel companies in other states. This document was discussed at the May 27 meeting and will be updated periodically.

Materials Submitted by Interested Parties

The following materials have been submitted by representatives of the accommodations industry, online travel companies, and local governments. This section will be updated as TAX receives submissions. If you have materials you wish to submit, please send them to the following email address: kristen.peterson@tax.virginia.gov.

  • Tax and Sourcing for Travel Agent Fees, Submitted by Steve DelBianco, NetChoice (PDF 272 KB)
  • Hotel Taxes and SSUTA, Submitted by Steve DelBianco, NetChoice (PDF 111 KB)

Comments on Draft Report

  • Arthur Sackler, Interactive Travel Services Association (PDF 60 KB)
  • Ben Dendy, Orbitz Worldwide, Inc. (PDF 150 KB)
  • Barbara Donnellan, County Manager, Arlington County (PDF 64 KB)
  • Carla de la Pava, Chief Deputy Treasurer, Arlington County (PDF 25 KB)
  • Dana Harmeyer, City Attorney, Virginia Beach (PDF 22 KB)
  • Frank O'Leary, Treasurer, Arlington County (PDF 9,636 KB) 
  • Neal Menkes, Virginia Municipal League, and
  • Mike Edwards, Virginia Association of Counties (PDF 33 KB)
  • Senator Mary Margaret Whipple (PDF 184 KB)
  • Paul Ruden, American Society of Travel Agents (PDF 31 KB)