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, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
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
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 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
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
Then your town or area
Towns set their own zoning, and some levy their own lodging tax. Pick your area.
Town of Damascus
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
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
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
- Guidelines for sales tax on accommodations (P.D. 21-116) · Virginia Tax
- Short-term rental registries (Va. Code § 15.2-983) · Virginia General Assembly
- Proposed zoning amendment: Articles 8, 15, 16 (transient lodging, conditional use permit) · Town of Damascus
- Tax Rates · Washington County, Virginia
- Change to short term rental ordinance in Damascus (September 12, 2024) · SuperTalk 92.9
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.