The Christiansburg Town Council this week voted to eliminate a limit on the number of days-per-year an Airbnb space can be occupied and decided to work with Airbnb to collect a tax on those guest spaces.
Blacksburg initiated regulations on the Airbnbs last summer and, in four months, has collected an estimated $27,000 in taxes. Now, Christiansburg hopes to start doing the same.
Airbnb is an online company that helps people rent out spare rooms or properties for short stays. In our area, those guest spaces typically resonate to visitors that attend Virginia Tech sporting events.
Hotel owners and bed and breakfasts charge that Airbnbs are taking away business without being required to pay food and lodging taxes.
Blacksburg could have been collecting the taxes for the past two years, but only recently worked out an agreement with the national group of Airbnb to start collecting monthly tax.
Airbnb has grown to over four million worldwide and, according to the Airbnb website, two million people staying in an Airbnb “on any given night” including approximately 600,000 listings in the U.S.
The company says it has made a commitment to make sure Airbnbs in each community pay its fair share of hotel and tourist taxes, but that it is up to each locality to establish the regulations for what are termed “homestays”.
The purpose of Christiansburg’s new ordinance is to deal with permitting and regulating homestay or short-term rentals as “accessory uses” to residential dwellings.
On Tuesday, Christiansburg established guidelines similar to neighboring Blacksburg. Now city leaders will have to reach an agreement with Airbnb to collect taxes. In Blacksburg, a 7-percent tax is added to customers’ bills when they pay online. Airbnb then sends the money to the town.
Christiansburg’s new requirements did not come without some opposition. Current Airbnb owners had balked at a 90-day per-year maximum occupancy stipulation. When the final vote was taken, council pushed the maximum days-per-year to no-limit.
The measure was approved by a 4-2 vote.
Over 340 Airbnbs are listed in Montgomery County with an estimated 89 in Christiansburg. Most of the temporary rentals are directly connected to Virginia Tech football games and graduations at both Tech and Radford University.
The new ordinance takes effect on July 1.
In other matters, the council recognized MELD Manufacturing of Christiansburg for being named a winner and receiving the “Market Disruptor” accolade at the recent R&D 100 award meeting.
Town staff also said citizen representatives are needed on its Christiansburg Police Department Tow Board and is now accepting letters of interest.
The Christiansburg Police Department Tow Board serves as an advisory board to the tow companies that perform tows requested by the Christiansburg Police Department. The Tow Board oversees and maintains fair and competitive rates for both the tow companies and the general public. Board members are required to be Town residents and will serve a three-year term, attending meetings bi-annually or as needed. Board members cannot have any personal gain from a tow agency or have a relationship with or be a family member of any tow agency representative.
Interested individuals should mail in a letter of interest, explaining why you would be a good candidate, to Christiansburg Police Department, Attn: Teresa Carroll, 10 East Main Street, Christiansburg, 24073; email tcarroll@christiansburg.org; or return the letter to the Police Department during business hours, Monday – Friday from 8 a.m. to 5 p.m.
