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Transient Occupancy Tax is a tax paid by transients and is collected by operators of hotels, motels, boarding houses, and other lodging places which can accommodate four or more persons at one time as well as travel campgrounds that offer guest rooms or other accommodations rented out for continuous occupancy for fewer than 30 consecutive days. The tax is 7% of the total amount paid for room rental, but effective May 1, 2021 TOT tax will increase to 8% of the total amount paid for room rental. If the room rental charge is not separately stated on the bill, the tax must be calculated on the room charge.
Starting July 1, 2013, seven cents per dollar should be collected. Of that tax, two cents goes to the County's General Fund, three cents is to be spent promoting tourism, travel or business that generates tourism or travel and the additional two cents imposed will be used to fund transportation. For more information regarding the county’s budget, please visit the Loudoun County Budget Office.
No TOT is due on room rental paid to any hospital, medical clinic, convalescent home or home for the aged.
Room charges paid directly by the federal government or a federal agency, whether direct-billed or paid with a qualified exempt government-issued credit card, are not subject to TOT. Most qualified exempt government-issued credit cards will have the statement "Exempt" printed on the card. If room charges are paid for by a government employee, TOT is applied to the room charge even if the employee is later reimbursed for such charges by the federal government or a federal agency.