Norfolk Airbnbs and other short-term rental properties with more than one bedroom could soon be taxed on a per-room basis just like hotels, at least doubling their per-night tax rates.
City Council plans to vote on a measure that would tax the rentals on a per-bedroom basis Tuesday.
Short-term rentals are now taxed the same $3-per-night rate regardless of the number of bedrooms. For example, a two-night stay in a two-bedroom Airbnb would be taxed $6 for the total stay.
Under the new system, the rental would be taxed $3 per room per night, doubling the total tax to $12.
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In a letter to City Council members, City Attorney Bernard Pishko said the change would make the tax rate uniform between hotels and short-term rentals.
“For these reasons, I recommend approval of the ordinance,” Pishko said.
Ocean View short-term rental operator Cecilio “Rick” Ricardo sharply criticized the proposed tax increase. He said it didn’t make sense to tax Airbnbs like hotels, since the former are often family-operated and hotels are much larger businesses.
“I think it’s unfair and irresponsible,” Ricardo said.
Short-term rentals already were taxed an additional 9% transient occupancy tax by the city and 6% sales tax by the state.
The city was projected to earn $116,976 in short-term rental tax revenue in the 2025 fiscal year, according to the 2026 budget document, which states that the city plans “to accumulate a portion of room tax revenue from vacation rentals/homestay to support sand replenishment at the Coastal Character District by enhanced billing collections.”
Norfolk’s room tax already is higher than in Virginia Beach, which charges a $2-per-night flat rate, regardless of the number of bedrooms. Virginia Beach, however, has far more registered short-term rentals and charges a higher tax rate for those operating in the Sandbridge area. The city charges a 10.5% transient occupancy tax in Sandbridge and 9% in the rest of the city. As of August, 2,700 short-term rentals were registered with Virginia Beach’s Commissioner of Revenue.
As of this month, Norfolk reports 221 registered short-term rentals. But hundreds more could be unregistered, though — the Airbnb website lists roughly 500 properties available in the city.
In 2024, a study group of city officials and rental operators began working on plans to ease short-term rental regulations and improve enforcement for code violations. The group came together after Ricardo said he had spent about $40,000 to comply with the city’s strict and lengthy conditional use process.
However, recommendations have yet to be approved by the city, Ricardo said.
Norfolk first approved regulations for short-term rentals in 2019, then revised them in 2022, allowing a greater concentration of rentals in apartment buildings but requiring enhancements like security cameras and noise monitors.
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com
https://www.pilotonline.com/2025/09/22/norfolk-to-consider-tax-increase-on-airbnbs-other-rentals/
