.jpg)
At its regular meeting on July 6, Goshen Town Council discussed beginning the process of having the town take over collection of the transient occupancy tax (also known as the lodging tax) to keep the revenue generated within the town. Rooms rented in the town are currently subject to a 10 percent transient occupancy tax which is collected by Rockbridge County.
The transient occupancy tax is defined in the Virginia state code as a tax on hotel rooms, guest rooms, campgrounds, boarding houses and “other facilities offering guest rooms rented out for continuous occupancy for fewer than 30 consecutive days.” The tax is added to the rental price of the room or campground and is paid by the person renting it.
Councilman Steve Bickley reported to Council that he had met with Rockbridge County Commissioner of Revenue David Whitesell about which tax revenues the town was keeping and which ones were going to the county. The town, he reported, is keeping all of the revenue from the meals tax that is generated in Goshen, as well as the revenue from a cigarette tax the town implemented last January. Revenues from sales taxes are split between the county and the town.
Bickley proposed that the town take over collection of the transient occupancy tax and asked town attorney Jared Jenkins to draft an ordinance to that effect for consideration at Council’s next meeting in August. He proposed keeping the tax rate the same as the county’s rate – 10 percent – so that the tax would not increase. The only difference is that the revenue would be collected by, and stay within, the town of Goshen.
“There’s no reason to let tax money that’s being collected in Goshen go to the county if there’s an option to collect it ourselves,” he said.
Jeff Shaffer, who runs the Hummingbird Inn, a bed and breakfast in Goshen, spoke against the tax during the meeting’s public comments.
“Ever since you all have been here, Steve especially, all you want to do is tax,” he said. “You raise water rates, you pass a sin tax on the smokers and now you want to do a lodging tax. I don’t get it. You’re supposed to ask businesses ‘how can I help you?’ not ‘how can I screw you?’”
