Overview

Short-term rentals ARE ALLOWED in Hillsville, VA (Carroll County) with specific regulatory requirements. Carroll County has adopted a comprehensive short-term rental ordinance that requires property owners renting accommodations for fewer than 30 consecutive days to register annually with local authorities and comply with various tax obligations.

How to Start a Short-Term Rental Business in This Market

Step-by-Step Launch Process

1. Property Acquisition & Zoning Verification

   • Ensure your property is suitable for short-term rental use
   • Verify zoning compliance with Carroll County regulations
   • Consider location factors: proximity to attractions, infrastructure, and neighborhood characteristics

2. Pre-Registration Planning

   • Obtain Virginia Sales Tax number through the Virginia Department of Taxation website before beginning operations
   • Assess your business model: determine if you'll provide meals (affects tax obligations)

3. Annual Registration Process

   • Submit Short-Term Rental Registration Form to the Commissioner of the Revenue Office
   • Pay the $50 annual registration fee (established September 2017, reduced from original $100 proposal)

4. Tax Registration & Setup

   • Register for Virginia Sales Tax account
   • Set up systems for transient occupancy tax collection
   • Establish accounting procedures for multiple tax obligations

5. Property Preparation

   • Furnish and equip the property for guest occupancy
   • Ensure compliance with health and safety standards
   • Obtain appropriate insurance coverage

Required Documents, Permits, Licenses, and Guidelines

Essential Documents & Registrations

Primary Registration:

• Short-Term Rental Registration Form (2025 version available)
• Annual $50 registration fee
• Mailing Address: Wade Marion, Commissioner of the Revenue, 605-7 Pine St., Hillsville, VA 24343

Tax Registrations:

• Virginia Sales Tax Number (mandatory before starting operations)
• Transient Occupancy Tax registration
• Meals Tax registration (if providing meals)

Annual Filing Requirements:

• Business Personal Property Tax return (due by May 1st, payment due December 5th)
• Monthly/Quarterly Sales Tax returns (frequency determined by tax liability)
• Monthly Transient Occupancy Tax returns
• Monthly Meals Tax returns (if applicable)

Specific Regulations for Short-Term Rentals

County-Level Regulations (Carroll County)

Registration Requirements:

• Annual registration mandatory for all STRs offering occupancy for fewer than 30 consecutive days
• Registry maintained by Commissioner of the Revenue
• Registration valid for one year, requires annual renewal

Definition of Short-Term Rental: Property offered for occupancy for dwelling, sleeping, or lodging purposes for fewer than 30 consecutive days in exchange for a charge

Fee Structure:

• Registration fee: $50 per property annually
• Penalty for non-compliance: $500

Tax Obligations:

1. Transient Occupancy Tax:

   • Rate: 5% of lodging charges
   • Collected from guests and remitted to Carroll County Treasurer
   • Due by 20th day of month following collection
   • Must include report showing lodging charge amounts

2. Virginia Sales Tax:

   • Rate: 5.3% on accommodations
   • Filing frequency: Monthly or quarterly (determined by Virginia Department of Taxation)
   • Returns due by 20th of month following filing period
   • Quarterly periods: March 31, June 30, September 30, December 31

3. Meals Tax:

   • Rate: 4% (only if meals provided to renters)
   • Remitted to Carroll County Treasurer
   • Due by 20th day of month following collection

Business Personal Property Tax:

• Required for all moveable items in STR (furniture, linens, utensils, decorations, hot tubs, porch furniture, grills, yard equipment)
• Filing deadline: May 1st annually
• Payment deadline: December 5th annually

State-Level Regulations (Virginia)

Sales Tax Compliance:

• 5.3% state sales tax on all accommodation charges
• Registration required through Virginia Department of Taxation
• Regular filing obligations based on tax liability
• Online payment and filing systems available

General Business Requirements:

• Business license compliance
• Insurance requirements (standard business practice)
• Health department compliance for food service (if applicable)

Regulatory Oversight

Primary Enforcement Agencies:

• Commissioner of the Revenue: Registration and business personal property tax
• County Treasurer: Transient occupancy and meals tax collection
• Virginia Department of Taxation: Sales tax oversight
• Health Department: Food service and accommodation safety (when applicable)

Contact Information

Carroll County Government Contacts

Commissioner of the Revenue Office

• Contact Person: Wade Marion, Commissioner of the Revenue
• Address: 605-7 Pine St., Hillsville, VA 24343
• Phone: 276-730-3001 (general county number)
• Primary STR Registration: Use mailing address above for registration forms

Carroll County Treasurer's Office

• Address: 605-10 Pine St., Hillsville, VA 24343
• Phone: (276) 730-3060
• Responsible for: Transient Occupancy Tax and Meals Tax collection
• Contact recommended before submitting initial tax forms

County Administrator's Office

• Phone: (276) 730-3001
• Address: 605 Pine Street, Hillsville, Virginia 24343
• General inquiries and ordinance clarification

Health Department

• Services: Establishment permits, temporary food facility information
• Website: www.vdh.virginia.gov/

State-Level Contacts

Virginia Department of Taxation

• Sales Tax Registration: www.business.tax.virginia.gov/VTOL/tax/Login.xhtml
• Sales Tax Payment: www.tax.virginia.gov/how-file-and-pay-sales-and-use-tax
• General: Contact through Virginia Tax website or local offices

Source Links

1. Carroll County Short-Term Rental Information Page: carrollcountyva.gov/government/commissioner_of_the_revenue/short-term_rental_property.php

2. Carroll County Official Website (General Contact & Information): carrollcountyva.gov/

3. News Article - Carroll Passes Short-Term Rental Ordinance: www.thecarrollnews.com/news/local/carroll-passes-short-term-rental-ordinance/article_4cba7067-4f97-56a8-93c7-ed140855407a.html

4. Public Hearing Notice (September 2017): cms7files.revize.com/carrollcova/docs/bdpkt/2017/Sept/08_PH-Airbnb.pdf

5. Carroll County Code (General Ordinance Reference): ecode360.com/CA1276

6. Transient Occupancy Tax Form (Virginia State): www.tax.virginia.gov/sites/default/files/inline-files/virginia-local-transient-occupancy-tax-return.pdf

Important Notes:

• All regulations are subject to change; verify current requirements before operation
• The $50 registration fee was established in September 2017 and may be subject to future adjustment
• Penalties for non-compliance include $500 fines
• Regular compliance with all tax filing deadlines is essential to maintain good standing

This guide provides a comprehensive foundation for STR investment in the Hillsville/Carroll County market. Given the evolving nature of short-term rental regulations, investors should maintain regular contact with local authorities and monitor ordinance updates.