This past weekend, the Arlington County Board approved new regulations on Airbnb and other short-term home rentals.
The move was cheered by Airbnb, which said Arlington is now the “first D.C. area municipality to pass an ordinance creating fair rules for middle class residents and families to continue sharing their homes.”
The regulation officially makes Airbnb legal in Arlington, whereas it might have been technically illegal before, under the local zoning ordinance. But there was one issue not addressed by the county press release that Airbnb hosts will want to consider going forward: taxes.
ARLnow.com did some more digging and it turns out that Airbnb hosts (along with those using services like Homeaway, Craigslist, etc.) will have to pay the same 7.25 percent Transient Occupency Tax as hotels. And they’ll have to pay it in the same way — by creating an account with the county and filing monthly tax returns.
That’s a burden that may discourage casual hosts from, say, just renting their place for the inauguration, assuming they want to stay on the right side of the law.
“The Commissioner of Revenue will require each person renting property to transients, including those who obtain an accessory use permit for short term homestays under the new County ordinance, to collect and remit the TOT to the County,” Ray Warren, Arlington’s Deputy Commissioner of Revenue, tells ARLnow.com.
“This is done and will be done the same way as it is with every other entity providing transient accommodations,” Warren said. “We will set up an account for the accommodation provider. They must file each month by the 20th for the previous month’s activity.”
What if a homeowner did not rent his or her property in a given month?
“They should file monthly, but it is easy (especially online) to file a zero return,” Warren said. “Otherwise we don’t know if they had no business or merely neglected to file.”
So monthly tax returns will be the norm for anyone renting their place on Airbnb. If the homeowner decides to stop renting for the foreseeable future, they can notify the Commissioner of Revenue’s office and stop filing.
“It would not be proper, however, for the homeowner to again advertise the property for rent without opening a TOT account,” noted Warren.
Because Airbnb does not publicly list the addresses of rental properties, Warren said that compliance will primarily be accomplished through tips. Another compliance mechanism: checking the tax records of those who have applied for the new “accessory homestay” permit.
“We have made efforts this year, but we depend on tips and voluntary compliance,” he said. “To the extent there are those who do not comply with the County’s new ordinance (and get an accessory use permit) we will continue to rely on tips from the public.”
“Homestay rentals, unlike other public businesses, do not generally have signage or other markers, so that can be difficult otherwise,” Warren added. “We will also be reviewing individual (state) income tax returns to look for persons reporting such rental income. I suspect that bringing the vast majority into compliance through the County ordinance will also increase the number of leads as to non-compliant locations.”
County Board member John Vihstadt, the lone “no” vote on the short-term rental ordinance, said had “some serious reservations” about it and thought the process was “too rushed” and left “issues inadequately addressed.”
Contacted by ARLnow.com two days after the vote, he said he was not sure how taxes would be collected on Airbnb properties.
“That is something, frankly, that is not clear,” he said. “We need to make this easy for the hosts and guests.”
Garvey Wants to Nix New Year’s Day Meeting — Arlington County Board Chair Libby Garvey has proposed moving the Board’s traditional New Year’s Day meeting (this year it would otherwise be held on Jan. 2, the federal observance of the New Year holiday) to the next business day: Tuesday, Jan. 3. [Washington Post]
Neighbors Upset About Sex Offender’s Halloween Decorations — A 57-year-old registered sex offender says he did nothing wrong in putting up Halloween decorations in front of his Arlington house. But nearby residents don’t agree: they called the police and local TV stations, saying the display is “inappropriate” since it might “entice” children. One concerned resident said, “we are within our rights as taxpayers and longtime members of this community to protect the children in our community.” [Fox 5]
Higher Meal Tax Possible? — If state lawmakers act to provide counties with the same taxing powers as Virginia cities, as Arlington County is asking for again this year, it could eventually mean an increase in the meals tax at local restaurants. [InsideNova]
It’s November — Today is the first day of November. In a week, it’s finally Election Day. In three weeks and two days, it’s Thanksgiving. The weather forecast for the next two days, however: highs of 75 and 79 on Wednesday and Thursday.
New Invasive Species Found in Arlington — A county contractor has found Wavyleaf Basketgrass, a particularly prolific invasive species, in Donaldson Run Park. The plant was removed but the county is now on the lookout for more. [Arlington County]
Murky Coffee Owner Still Owes County — Nicholas Cho, the proprietor of Murky Coffee, which closed six years ago in Clarendon, recently repaid his tax debts to the District of Columbia but still owes Arlington more than $84,000 in unpaid meals taxes and interest. [Washington Post]
Lyft Sees Lift in Arlington Corporate Customers — For some reason ride hailing service Lyft is seeing a relatively large increase in business from corporate customers in Arlington. [Pymnts]
Flickr pool photo by David Giambarresi
Avant, who lives in Arlington, falsely claimed he was exempt from federal tax withholding, prosecutors say. He made more than $170,000 per year during tax years 2009-2013, but did not file a tax return during that time, the U.S. Attorney’s Office said.
Avant faces up to five years in prison. From a press release:
ALEXANDRIA, Va. – Isaac Lanier Avant, of Arlington, who is currently employed as a staffer by the U.S. House of Representatives, has been charged with five counts of willfully failing to file a tax return.
According to the criminal information and affidavit, Avant has been employed as a staff member of the U.S. House of Representatives since approximately 2002. For tax years 2009 through 2013, Avant earned annual wages of over $170,000, but did not timely file a personal income tax return for any of those years. In May 2005, Avant filed a form with his employer that falsely claimed he was exempt from federal income taxes. Avant did not have any federal tax withheld from his paycheck until the Internal Revenue Service (IRS) mandated that his employer begin withholding in January 2013.
Avant faces a maximum penalty of five years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Jack Hanly and Assistant Chief Todd Ellinwood of the Tax Division.
Photo via cbcfinc.org
Former Mansion Owner is In Jail — Rodney Hunt, the man who once owned the $23 million Arlington mansion that’s being used to throw large parties (and which was recently sold at a foreclosure auction), is currently in the Arlington County jail. Hunt was ordered to spend 90 days in jail earlier this month for violating his parole. An attorney says Hunt doesn’t know anything about the parties. [Washington Post]
Tourists Can’t Handle the Heat at the Cemetery — Anytime it gets sufficiently toasty outside, medical calls to Arlington National Cemetery become frequent. Tourists at the cemetery regularly suffer heat-related ailments that require paramedic dispatches during the summer. The cemetery is advising visitors to wear sunscreen and bring a bottle of water during the warm weather months. [Twitter]
Airbnb Is Costing Arlington Tax Revenue — Arlington County has yet to figure out a good way to get those renting out their homes on Airbnb to pay the county’s 5.25 percent lodging tax, which is paid by hotels and should be paid by Airbnb hosts. “Very few of the folks who should be paying taxes have stepped up to fork over the money,” reports Michael Pope. [WVTF]
Art Murals in Crystal City — Crystal City has more than two dozen outdoor art murals, implemented by the Crystal City Business Improvement District. The murals are part of an effort to “visually revitalize the area,” which is noted for being something of a concrete canyon. [Curbed]
Teacher Salaries By School — A list shows the average teacher salary, by school, at Arlington Public Schools. Topping the list is Kenmore Middle School, at $80,411. At the bottom of the list is the Arlington Mill high school program, at $61,731. [Patch]
APS Finance Chief Wins Award — Leslie Peterson, the assistant superintendent for finance and management at Arlington Public Schools, is one of three officials in the U.S. to receive the 2016 Pinnacle of Achievement Award from the Association of School Business Officials International. [InsideNova]
Amtrak Police Chief Shared Apartment With ‘Alleged Boyfriend’ — Amtrak Police Chief Polly Hanson, who’s under investigation for fraud and conflict of interest, reportedly shared an Arlington apartment with her “alleged boyfriend,” a senior director at a contractor that Amtrak hired under Hanson’s supervision. The two also are said to have co-owned a condo in Dewey Beach, Del. [Washington Post]
Some Receiving Duplicate Tax Bills — A large number of Arlington homeowners have received duplicate tax bills from the county. “As you can imagine, we have heard from many concerned taxpayers today,” Treasurer Carla de la Pava told the Sun Gazette. [InsideNova]
Brutal Beating Still Unsolved — The 1965 beating of a 19-year-old woman in her Rosslyn area apartment is still an unsolved, open case. The woman, Brenda Sue Pennington, survived but never fully recovered, living in a nursing home and depending on Medicare until her death in 2007. [Falls Church News-Press]
Beyer Questions New Social Security Requirement — Those who want to access their Social Security information online now must have a text-enabled cell phone as part of a new security measure. That has led to protests from seniors who don’t own a cell phone — and Rep. Don Beyer (D-Va.) agrees with them, saying they “deserve the convenience of checking their earnings and benefits online.” [Patch]
Medium Unsure If TV Series Will Live On — Monica Ten-Kate, the TV medium who communes with dead people and whose family lives in Fairlington, says in an interview that she’s not sure whether her cable TV reality series will be renewed for a third season. [Northern Virginia Magazine]
The tax holiday — which runs from early Friday morning to 11:59 p.m. Sunday — is aimed at helping families doing back to school shopping along with encouraging Virginians to prepare for the hurricane season.
Online purchases of qualifying items are also tax-exempt as long as orders are placed and paid for during the tax holiday and the items are available for immediate shipment.
“This sales tax holiday will make items that help families prepare for the school year or for a potential emergency more affordable,” said Virginia Governor Terry McAuliffe, in a statement. “It is my hope that shoppers will use this time to get their children the items they need to succeed in school, as well as stock up on the essentials that may come in handy during a hurricane or other emergency where electricity or clean water may be unavailable for an extended period of time.”
Tax exempt items include:
- Most school and office supplies, such as pens, loose-leaf paper, scissors, binders, backpacks, and construction paper, priced at $20 or less.
- Clothing and footwear, priced at $100 or less per item or pair.
- Batteries, flashlights, bottled water, tarps, duct tape, fire extinguishers, cell-phone chargers, smoke detectors, buckets, rope, and first aid kits, priced at $60 or less.
- Gas-powered chainsaws, priced at $350 or less, and chainsaw accessories, priced at $60 or less.
- Portable generators, priced at $1,000 or less.
- Energy Star-labeled dishwashers, washing machines, air conditioners, ceiling fans, light bulbs, dehumidifiers, and refrigerators, priced at $2,500 or less.
- WaterSense-labeled sink faucets, faucet accessories, aerators, shower heads, toilets, urinals, and landscape irrigation controllers, priced at $2,500 or less.
Key Bridge Marriott Lease Sold — The ground lease for the 57-year-old Key Bridge Marriott in Rosslyn has been sold to a luxury hotel and resort operator, leading to speculation that the hotel — Marriott’s longest continuously-operating property — may soon be replaced. [WTOP]
Sales Tax Receipts Nudge Up — Arlington received $39.68 million in sales tax disbursements from the state this year, up 0.2 percent compared to the year prior, pointing to an ever-so-slight increase in retail sales in the county despite some challenges dragging that figure down. [InsideNova]
Arlington to Host Community Conference — Arlington County is hosting the 17th annual Virginia Statewide Neighborhood Conference from Sept. 29-Oct. 1. Hundreds of neighborhood leaders, community activists and government agencies are expected to attend. [Arlington County]
Local Yoga Studio Featured on National TV — Spark Yoga, an aerial yoga studio on N. Pershing Drive in Lyon Park, was featured in a segment on business news channel CNBC with reporter Diana Olick. [CNBC]
Bikes With Roofs — Is the hot summer sun beating down on you during your bike commute? If so, perhaps you can follow the lead of these two local cyclists and attach a canopy to your bike. [Twitter]
Flickr pool photo by David Giambarresi
A new working group appointed by the County Manager will be conducting a “comprehensive review” of that program.
The program is currently offered to homeowners age 65 or older, with an annual income of up to $99,472 and household assets (excluding the home itself) up to $340,000. Depending on the income level and assets, the homeowners may qualify for a full or partial exemption. A deferral of taxes until the home changes ownership is available for any portion that’s not exempt.
The County Board included funds in the latest county budget for a review of the program.
“In conducting research for the [Affordable Housing Master Plan], the County found that many low-income senior households on fixed incomes face financial stress related to increasing condominium fee and real estate tax burdens,” said the new Real Estate Tax Relief Working Group charge. “The AHMP’s accompanying Implementation Framework included a recommendation to review the goals and guidelines of the RETR Program, and to consider redefinition of income levels, asset levels, and criteria for exemptions and deferrals.”
In the recent Arlington County Board primary, Board Chair Libby Garvey was criticized by Democratic challenger Erik Gutshall for supposedly “threatening the ability of our most vulnerable seniors to live in Arlington.”
Garvey explained that she wants to lower the eligibility barriers for the tax deferral program. She hinted, however, that the full tax exemption might be under additional scrutiny, as it can “provide quite a windfall” to a homeowner’s heirs once the home is sold.
The working group is tasked with presenting its final recommendations this winter, ahead of the Fiscal Year 2018 budget process.
The full county press release, after the jump.
The Board will consider tax rates and the annual county budget on Tuesday. A staff report published in advance of the meeting suggests that the Board has settled upon a tax rate reduction.
“After a lengthy public review process that included work sessions, public hearings, input from residents, employees, boards and commissions, and updated revenue forecasts based on FY 2016 mid-year and third-quarter updates, the County Board, after deliberations, has approved an FY 2017 budget that is balanced at the real estate tax rate of $0.978 per $100 of assessed property value,” the report says.
That will bring the residential tax rate to $0.991 per $100 in assessed value, including the $0.013 stormwater rate.
Despite the rate reduction, the average Arlington homeowner will be paying more in taxes, thanks to a 2.8 percent rise in residential real estate assessments.
“The average Arlington homeowner would pay $5,981 per year in real estate taxes, a $133 or 2.3 percent increase over CY 2015,” county staff writes.
Commercial property assessments this year were deemed flat, “with only 0.7 percent growth from CY 2015 to CY 2016, primarily fueled by a slight decrease in vacancy rates.”
Crystal City Bus-Only Lanes Opening Soon — Bus-only lanes in Crystal City, part of the Crystal City Potomac Yard Transitway, are set to open April 17. It’s the region’s first Bus Rapid Transit line. [Washington Post]
Civ Fed Wants Lower Taxes — The Arlington Civic Federation voted Tuesday to call for a one cent reduction in property taxes. The current annual rate is 99.6 cents for every $100 of assessed value. [InsideNova]
Pulitzer Prize-Winning Author Visits Today — Anthony Doerr, the Pulitzer Prize-winning author of “All the Light We Cannot See,” will discuss this best-selling novel at the Washington-Lee High School auditorium from 7-8:30 tonight. The discussion is part of Arlington Public Library’s 2016 Arlington Reads program, the theme of which is “the human displacement of World War II.” [ARLnow]
WW2 Exhibit at Library — In addition to the Doerr event and two other author talks, Arlington Central Library is hosting “an artifact-rich exhibition on Arlington County in World War II. It’s the story of a community undergoing rapid transition from fading farms to new home to the Pentagon, all while sending its young men to fight in Europe and the Pacific. ” [Arlington County]
GMU to Hold Talk With Camille Paglia — On Tuesday, the Mercatus Center at George Mason University’s Arlington campus will be holding a discussion with Camille Paglia, the “cultural critic, intellectual provocateur, and feminist icon.” The discussion will be hosted by GMU’s noted economics professor Tyler Cowen. RSVP is required. [Mercatus Center]
Former Willow Team is Now at the Watergate — Tracy O’Grady, the chef and owner of the former Willow restaurant in Ballston, is now running Campono, an Italian restaurant in the Watergate complex. O’Grady’s husband Brian, who also worked at Willow, is on the Campono team as well. [Washington Post]
Flickr pool photo by Kevin Wolf
Police Seek Witness in Pentagon City Investigation — Arlington County Police are trying to find a witness who rendered aid to an injured man found face down in the street in Pentagon City. The incident happened around 9:30 p.m. on February 25, on the 1200 block of S. Eads Street. The 65-year-old man remains in critical but stable condition. [Arlington County]
Group Forms to Oppose Gun Store — Updated at 11:05 a.m. — A group called Act4LyonPark has formed to oppose NOVA Armory, the gun store that’s planning to open on March 26 at 2300 N. Pershing Drive. So far, Act4LyonPark has raised $6,300 to support its activities. The group says that in a recent vote, 88 percent of residents who responded voted for the Lyon Park Citizens Association to take an official stance against the gun shop.
Board to Consider Relaxed Historic Rules for Schools — The Arlington County Board is expected to vote Saturday on a proposal to make it easier for Arlington Public Schools to make changes to schools within local historic districts. The proposal would remove schools from the oversight of the county’s rigid Historical Affairs and Landmark Review Board. Facing a school capacity crunch, APS says going through HALRB adds unnecessary delays and costs to projects. [InsideNova]
One Person Filed 6,500 Noise Complaints Against DCA — A single individual is responsible for 6,500 of the 8,670 noise complaints filed against Reagan National Airport last year, according to the airports authority. [WTOP]
Chamber Savors Hotel Tax Victory — With Arlington’s 0.25 percent hotel tax surcharge reinstated, the Arlington Chamber of Commerce is celebrating a long-awaited legislative victory. “Reinstating Arlington’s [Transient Occupancy Tax] was the Chamber’s top priority for the 2016 legislative session, with the funds generated by the additional TOT providing much needed support to ensure that Arlington remains competitive in attracting leisure and business travel,” said Chamber president and CEO Kate Roche. [Arlington Chamber of Commerce]
County Board Work Sessions to Be Broadcast — Arlington TV, the county government’s cable channel, will begin broadcasting County Board work sessions on cable and online this month. First up: the riveting County Board work session on the FY 2017 budget, scheduled for 4 p.m. Thursday. [Arlington County]
Meal Delivery Startup Now Serving Part of Arlington — Galley, a D.C.-based meal delivery startup, says it just expanded its delivery area to include Rosslyn, Courthouse and Clarendon.
ACPD Focusing on Heroin Use and Addiction — The Arlington County Police Department is joining other law enforcement agencies around the region in an initiative to try to curb the distribution, possession and use of heroin. For those battling addiction, there are a number of treatment options in Arlington. [Arlington County]
Schneider to Lead Thrive — Former Democratic County Board candidate Andrew Schneider has been named the new Executive Director of Arlington Thrive, effective today. Thrive is a nonprofit that provides same-day financial assistance to residents in crisis.
Board Thanks Legislators for Hotel Tax Bill — The Arlington County Board is offering its thanks to the state legislators who successfully shepherded Arlington’s hotel tax surcharge reauthorization through the Virginia General Assembly. [Arlington County]
ACPD Shrouding Badges for Fallen Officer — The Arlington County Police Department is shrouding its badges to pay respect to Ashley Guindon, the rookie Prince William County police officer who was shot and killed in the line of duty on Saturday. [Twitter]
Tourism Tax Authorization Passes Legislature — With bipartisan lobbying help from County Board member John Vihstadt (I), a measure reauthorizing Arlington’s hotel tax surcharge has passed the Virginia General Assembly. Governor Terry McAuliffe (D) still must sign the bill into law, and Arlington will have to get it reauthorized in two years due to a sunset clause. The tax will help fund Arlington’s tourism promotion efforts. [InsideNova]
Laich Traded to Toronto — Just a couple of days after he left a server a big tip at Don Tito in Clarendon, long-time Washington Capital Brooks Laich has been traded to Toronto. Laich and celebrity fiancée Julianne Hough were often spotted hanging out at Arlington bars like Don Tito and A-Town. [WJLA]
Wakefield on It’s Academic — Wakefield High School was scheduled to compete on an episode of the local TV quiz show It’s Academic on Saturday. [Twitter]
‘Treasure Island’ Reviewed — Arlington-based theater company Encore Stage and Studio has garnered positive reviews for its production of “Treasure Island,” which runs through March 6. [DC Metro Theater Arts]
Shirlington’s ‘Hula Girl’ Makes Mai Tai for Fox 5 — Mikala Brennan, the owner of Hula Girl Bar and Grill in Shirlington, stopped by Fox 5 midday show Friday to show viewers how to make her signature Hula Girl Mai Tai. [Fox 5]
Flickr pool photo by Dennis Dimick
The Arlington County Board on Tuesday night voted unanimously to advertise a property tax unchanged from last year — $0.996 per $100 of accessed value ($0.983 base tax plus a $0.013 stormwater district tax).
That means that Arlington’s tax rate can only go down when the County Board approves a final Fiscal Year 2017 budget in April. County Manager Mark Schwartz is recommending a half cent reduction in the tax rate.
The average Arlington homeowner will still pay more in taxes than last year, thanks to a 3 percent rise in property assessments. Some county fees are also expected to rise, including a $36.24 per year increase in the household solid waste rate due to the implementation of year-round yard waste collection.
The county press release about the Board’s action and the County Manager’s budget, after the jump.