Montgomery County, VA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 3% of room/space charge
- Exemption
- stays of 30+ consecutive days
- Filing
- quarterly, due Oct/Jan/Apr/Jul 20th
- Revenue split
- 2% general fund, above 2% tourism
- Applies to
- unincorporated county only
- Collector
- County Treasurer
Summary
Montgomery County levies a 3 percent transient occupancy tax on hotels, motels, boardinghouses, travel campgrounds and other guest-room facilities in the unincorporated area outside Blacksburg and Christiansburg. Stays of 30 or more consecutive days by the same guest are exempt. Operators file and remit quarterly to the commissioner of revenue under County Code § 2-170.
There is hereby imposed and levied by the county a transient occupancy tax on hotels, motels, boardinghouses, travel campgrounds and other facilities offering guest rooms at a rate of three (3) percent of the amount of charge for the occupancy of any room or space occupied. The tax imposed hereunder shall not apply to rooms or spaces rented for continuous occupancy by the same individual or group for thirty (30) or more days in hotels, motels, boardinghouses, travel campgrounds and other facilities offering guest rooms. ... The remittances received under this division from the portion of the tax up to two (2) percent by the county treasurer shall be promptly paid into the county general fund. The remittance received under this division from that portion of the tax over two (2) percent shall be designated and spent solely for tourism, marketing of tourism, or initiatives that attract travelers to Montgomery County, Virginia, and generate tourism revenues in Montgomery County.
Full Breakdown
Under Sec 2-170, the county imposes the 3 percent charge on the amount billed for occupancy of any room or space at a hotel, motel, boardinghouse, travel campground, or other facility offering guest rooms in the unincorporated county. Long-term guests are carved out: rooms rented continuously to the same individual or group for 30 days or more are not taxed. Sec 2-171 requires every covered operator to report gross receipts from the preceding quarter to the commissioner of revenue on the 20th of October, January, April and July, on county-furnished forms filed together with the tax payment, and the county treasurer is charged with collecting the tax.
Sec 2-172 splits how the money is used: the treasurer deposits the first two percentage points of the tax into the county general fund, while every dollar collected above that 2 percent threshold must be spent solely on tourism, tourism marketing, or initiatives that attract travelers to and generate tourism revenue for Montgomery County. The division's text does not print a distinct dollar penalty for late remittance in this division; collection runs through the treasurer's general tax-collection duty stated in Sec 2-171.
Violations & Fines
Operators who fail to file the quarterly return or remit the 3 percent tax by the 20th of October, January, April or July are subject to collection action by the county treasurer, who is charged under Sec 2-171 with collecting all taxes levied under this division. The division itself does not state a separate late-filing penalty amount for the occupancy tax.
Frequently Asked Questions
Does the transient occupancy tax apply to short-term rentals like Airbnb in the unincorporated county?
How often must operators file and pay the tax?
Where does the tax money go?
Sources & Official References
Other rules in Montgomery County
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