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Lynchburg, VA Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Base tax rate
6.5% of lodging charge
Flat add-on
$1.00 per room per night
Collector allowance
3% if remitted on time
Remittance deadline
20th of following month
Late penalty
10% plus 10%/year interest
Violation grade
Class 2 misdemeanor

Summary

Lynchburg taxes hotel and short-term lodging stays at 6.5 percent of the room charge plus a flat $1.00 per room per night, collected by the operator from every transient guest under Sec. 36-223 of the city code.

There is hereby imposed and levied by the city on each transient a tax equivalent to six and one-half percent of the total amount paid for lodging and $1.00 per room per night, excluding any other taxes levied thereon, by or for any transient to any hotel.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 10).

Full Breakdown

City Code Sec. 00 per room per night, excluding other taxes, charged by or for any transient to any hotel. A "transient" under Sec. 36-221 is anyone who obtains lodging at a hotel for 30 consecutive days or fewer, and "hotel" covers any public or private hotel, inn, hostelry, tourist home, motel, rooming house or other lodging place in the city offering lodging for compensation, which sweeps in short-term rental hosts operating under those terms. Two narrow exemptions exist under Sec. 36-224: charges for lodging paid to a hospital, medical clinic, convalescent home or home for the aged, and charges for space in a duly authorized mobile home park.

Under Sec. 36-226, the operator collects the tax at the time payment is made and holds it in trust for the city until remitted, but may keep a 3 percent collection allowance on timely, non-delinquent returns. Sec. 36-227 requires the operator to file a report and remit the tax to the city collector by the 20th day of the month following collection. Sec. 36-230 requires operators to keep records supporting the tax collected for two years, open to inspection by the director of finance.

Violations & Fines

Late or unremitted tax draws a 10 percent penalty plus 10 percent annual interest on the unpaid amount under Sec. 36-228. Failing to collect or report triggers the director's own estimate and assessment of the tax owed, due within ten days of mailed notice, per Sec. 36-229. Separately, Sec. 36-222 makes any violation of the division a class 2 misdemeanor, with each violation a distinct offense, and lets the city petition the circuit court to order a noncompliant hotel closed until it demonstrates willingness to comply.

Frequently Asked Questions

What is Lynchburg's hotel occupancy tax rate?
Sec. 36-223 sets it at 6.5 percent of the total lodging charge plus a flat $1.00 per room per night, on top of any other applicable taxes, charged by the hotel to each transient guest.
Does the tax apply to short-term rentals?
Yes. Sec. 36-221 defines "hotel" broadly to include any lodging place in the city offering lodging for compensation to a transient staying 30 consecutive days or fewer, which covers short-term rental listings operating on that basis.
When must the operator remit the collected tax?
Sec. 36-227 requires a report and remittance to the city collector on or before the 20th day of each month for lodging tax collected during the preceding month.
What happens if a hotel does not pay the tax?
Sec. 36-228 adds a 10 percent penalty and 10 percent annual interest on unpaid amounts, and Sec. 36-222 allows the city to petition the circuit court to close the hotel until it complies, in addition to class 2 misdemeanor charges.

Sources & Official References

Other rules in Lynchburg

All Lynchburg rules

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