LicensedRental

Washington County, Virginia

Damascus, VA vacation rental requirements

Damascus voted in September 2024 to allow new short-term rentals only in its commercial and industrial zones; rentals already operating were grandfathered. A July 2026 amendment would let new rentals into residential zones with a conditional use permit and a local contact within 50 miles. Stays pay 5.3% sales tax plus a 7% lodging tax.

Checked against official sources November 7, 2026

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Commercial zones
Allowed by right
C-1, C-2, and C-3.Source
Residential zones
Conditional use permit (proposed)
Since September 9, 2024, no new rentals in R-1 to R-3. A July 2026 amendment would allow them with a conditional use permit.Source
Existing rentals
Grandfathered
Even after a sale, but lost after two years unused.Source
Local contact
Within 50 miles, 24/7
In the proposed conditional use standards.Source
Taxes
5.3% sales + 7% lodging tax

A grandfathered rental loses its status if it isn’t used for two years, and it can’t take away the off-street parking it had on September 9, 2024.

The July 2026 amendment we found is marked “proposed,” and parts of it still describe the 2024 ban. Confirm with the town what was adopted.

Your licensing checklist

In order: the state, the county, then the town.

Commonwealth of Virginia

  1. Know who pays the tax

    When a platform like Airbnb books the stay, it collects and pays the state sales tax and the local lodging tax for you. If guests pay you directly, register with Virginia Tax for sales tax and with your county or city for the transient occupancy tax.Source

    Register a business with Virginia Tax →

  2. Register with your locality if it has a registry

    Many counties and cities require short-term rental hosts to register every year. Registration is a simple filing (your name, each address, and the owner’s permission if you lease the home), but listing an unregistered rental can cost up to $500 per violation.Source

  3. Check your zoning

    Counties and cities keep their power to decide where short-term rentals are allowed and whether you need a zoning or use permit. HOA and condo rules still apply on top. Pick your area for the local rules.Source

Washington County, Virginia

  1. Then your town or area

    Towns set their own zoning, and some levy their own lodging tax. Pick your area.

Town of Damascus

  1. Check your zone first

    New short-term rentals are allowed in the town’s commercial districts. In the residential districts, rentals that were operating before September 9, 2024 may continue; new ones need the town’s approval, if the July 2026 amendment is in force. Ask the town before you buy.Source

  2. If you need a conditional use permit

    The town will look at whether the rental fits the neighborhood and has enough off-street parking, and you need a local contact available around the clock who lives or works within 50 miles. The Planning Commission reviews site plans for new buildings.Source

  3. Taxes on each stay

    Stays under 90 days owe 5.3% sales tax, and stays under 30 days also owe the local transient occupancy tax. Airbnb collects both on its bookings. If guests pay you directly, file sales tax with Virginia Tax. The county’s tax list shows a 7% lodging tax in Damascus. Ask the town where direct bookings file it.Source

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.