The City of Richmond today announced that, through a targeted effort to increase compliance in the short-term rental industry, the Department of Finance has collected approximately $5.6 million in outstanding taxes. Moving forward, the City expects to generate approximately $2 million in additional annual revenue as a result of these efforts. 

“I’m so proud of the work the Department of Finance has done to not only bring folks into compliance but to make sure the City collects the revenue we’re owed. Every dollar counts, and this is a lot of dollars. When I say we’ve got to ‘Look For It, Find It, Fix It’, this is exactly what I’m talking about!” said Mayor Danny Avula.

A comprehensive review conducted by the Department of Finance’s Revenue Administration Division at the end of 2025 identified non-compliance among some STR market participants, dating back to July 2023. Following the review, the City worked with impacted entities to obtain business records, assess outstanding liabilities, and bring accounts into compliance.  

“A key theme across the City is ensuring the equitable distribution of tax burden balanced by improved collection rates that ultimately fund the services our residents rely on,” said Chief Administrative Officer Odie Donald II. “Looking for issues, finding them, and fixing them serve as the cornerstone of the Administration’s focus on building a thriving City Hall that works for everyone. This work is one of many examples of the fruit born from a continuously improving well-run Finance Department that is committed to that vision.” 

The City will continue proactive enforcement measures across the STR industry to ensure all participants meet licensing, reporting, and tax obligations. These efforts include: 

• Reviewing licensed participants in the STR industry and investigating unlicensed participants 
• Requiring unlicensed participants to comply with licensing requirements and resolve outstanding liabilities  
• Establishing structured timelines for repayment where necessary  
• Continuing to enforce compliance through levies, garnishments, and other legal actions when warranted  

"Bringing taxpayers into compliance is a challenging effort. The results of this immediate effort reflect the time spent by the Revenue team in one specific area. The Revenue team will continue the work in other areas, in addition to STRs, but these results are a great start in that journey," said Ken Martinez Director of Revenue Administration. 

More on the Transit Occupancy Short-Term Rental Tax 

Under Richmond’s Transient Occupancy Short-Term Rental Tax framework, responsibility for collecting and remitting taxes depends on how a rental transaction is facilitated: 

• Accommodations intermediaries — third-party platforms such as Airbnb and Vrbo—are responsible for collecting, filing, and remitting tax on transactions they facilitate  
• Accommodations providers — property owners or operators are responsible when transactions occur outside an intermediary platform  

Richmond’s Transient Occupancy Tax is assessed at 8% of the total room charge. 

Resources

Avula Administration’s Focused Collection Effort on Short Term Rentals , Memo from CAO Odie Donald II to City Council; May 14, 2026