Pat Brown
Contributing Writer
Under new Christiansburg zoning rules, Airbnb, Booking.com and VERBO owners are considered homestay operators. As such, they will pay taxes and potentially beef up their safety features.
Only a few Airbnb owners attended a recent meeting called by the Town of Christiansburg to spell out new rules and regulations the town has put into place.
Non-compliance could result in fines of up to $500.
By July 1, homestay owners will be required to undergo a safety inspection to determine whether appropriate fire extinguishers, fire alarms and carbon monoxide gas detectors are in place and working. Cost of the inspection permit will be $40. They will also have to apply for a business license which costs a minimum of $30.
“We tried to stick to more serious things,” said building Inspector Jerry Heinline during last week’s meeting.
The homestay ordinance is posted on the town website (www.christiansburg.org/homestay).
The ordinance requires that guests must be housed in the primary residence, not an accessory building, garage or shed. Owners must post an egress map for the guest area and inform guests about neighborhood garbage and recycling schedules.
Airbnb operator Christopher Urbane attended the meeting to say that he feels he and other Airbnb operators are being penalized for trying to create additional income.
“You are running a business,” another attendee said.
Officials explained that income from Airbnb rentals will be taxed at the rate of 14.3 percent: nine percent going to local lodging tax and 5.3 going to state tax. Airbnb hosts pay the company seven percent for providing the on-line platform that links potential renter to lodging.
Currently, hosts are required to pay state taxes on a monthly basis in Virginia.
Town officials are requiring that homestay hosts file a monthly report with the town verifying those state taxes have been paid, according to Andrew Warren, assistant town manager.
According to the Code of Virginia, failure to pay the state tax is a Class 1 misdemeanor.
Deveron Milne, an Airbnb host, attended the recent meeting to offer information to others saying he wanted to pay his tax obligation.
“I want to do the right thing. It’s better to pay the appropriate taxes than to be surprised by it later.”
Milne then passed out a list of 11 obligations for which every homestay owner is responsible. He said the list is his personal compilation. The obligations involve municipal, county and federal taxes and rules.
Town officials said they are meeting with homestay operators who request a private meeting.
Another public informational meeting is scheduled for June 13 at 6 p.m. at Town Hall.