For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section.
(a) “Affiliated” means a person that is an officer, director, partner, member, shareholder, parent or subsidiary of the lessee of short-term rental property or if a person and the leesee have a common ownership interest in excess of five percent.
(b) “Certificate of registration” means the annual certificate issued by the Loudoun County Commissioner of the Revenue to persons engaged in the short-term rental business in Loudoun County who make application for such certificate pursuant to Section 880.04.
(c) “Commissioner of the Revenue” means the Commissioner of the Revenue of Loudoun County, Virginia, and any of the Commissioner's duly authorized deputies or agents.
(d) “County” means Loudoun County, Virginia.
(e) “Short-term rental property” means all tangible personal property held for rental and owned by a person engaged in the short-term rental business, as defined in subsection (i) hereof, except trailers, as defined in Section 46.2-100 of the Code of Virginia, and other tangible personal property required to be licensed or registered with the Department of Motor Vehicles, the Department of Wildlife Resources, or the Department of Aviation. Short-term rental property shall constitute a classification of merchants’ capital that is separate from other classifications of merchants’ capital.
(f) “Gross proceeds” means the total amount charged, including penalties, late charges or interest, to each person for the rental of short-term rental property from a short-term rental business with a valid certificate of registration, excluding any State and local sales taxes paid pursuant to Chapter 6 of Title 58.1 of the Virginia Code. Gross proceeds is the taxable basis for the short-term rental tax.
(g) “Gross rental receipts” means the total amount charged to persons, including penalties, late charges and interest for the rental of short-term rental property by a short-term rental business, less the portion of such amount which is for the retention or personal services for the operation, but not the delivery or installation of the property.For purposes of this section, the delivery and installation of tangible personal property shall not mean operation.
(h) “Person” means and includes individuals, firms, partnerships, associations, corporations and combinations of individuals of whatever form and character.
(i) A person is engaged in the “short-term rental business” if:
(1) Not less than eighty percent (80%) of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of short-term rental property, other than heavy equipment property as defined in subdivision (i)(2), for periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee; or
(2) Not less than sixty percent (60%) of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of heavy equipment property for periods of 270 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee. For purposes of this chapter “heavy equipment property” means rental property of an industry that is described under Code 532412 or 532490 of the North American Industry Classification System as published by the United States Census Bureau, excluding office furniture, office equipment and programmable computer equipment and peripherals as defined in Section 58.1-3503(A)(16) of the Code of Virginia.
(3) Any rental to a person affiliated with the lessee shall be treated as a rental receipt, but shall not qualify for purposes of the eighty percent (80%) requirement of subdivision (i)(1) of this Section or the sixty percent (60%) requirement of subdivision (i)(2) of this Section.
(Ord. 89-14. Passed 9-19-89; Ord. 18-20. Passed 11-14-18; Ord. 20-13. Passed 12-9-20.)