Miscellaneous Local Taxes

Meals and Beverage Tax

Every restaurant, caterer, convenience store, grocery, delicatessen, private club (for profit or non-profit), etc. engaged in the business of selling prepared food and beverages in Chesapeake must register with the Commissioner of the Revenue, collect the tax and file the appropriate returns on a monthly basis. The tax rate is 5.5% of the total amount paid by the patron for the prepared food and beverages.

Lodging Tax

Every hotel, motel, tourist home, or other lodging place that, for compensation, furnishes lodging to any person on a transient basis (90 consecutive days or less) must collect the appropriate lodging tax. Those entities collecting such tax are required to register with the Commissioner of the Revenue and file the appropriate returns on a monthly basis. The tax rate is 8% of the total hotel/motel bill, plus a flat rate tax of $1.00 for each room occupied per night.

Admissions Tax

Most places of entertainment in Chesapeake (movie theaters, bars, amusements, etc.) that charge a fee for admission are required to register with the Commissioner of the Revenue, collect the tax and file the appropriate returns on a monthly basis. The tax rate is 10% of the amount paid by the patron for admission to the place of amusement or entertainment.

Short-Term Heavy Equipment Rental Tax

This local tax applies to businesses engaged primarily in the short-term rental of tangible heavy equipment personal property. If a minimum of 60% of the gross rental receipts are for a period of 270 days or less, the Commissioner of the Revenue must be contacted on an annual basis to register the business location for the collection of a 1.5% tax on all short-term heavy equipment rentals. Merchants meeting the criteria must collect a tax on all daily rentals in lieu of personal property taxation on the property.

Short-Term Rental Tax

This local tax applies to businesses engaged primarily in the short-term rental of tangible personal property. The Commissioner of the Revenue must be contacted on an annual basis to register the business location for the collection of tax on all short-term rentals. Merchants meeting the criteria must collect a tax on all daily rentals in lieu of personal property taxation on the property.

Utility Tax

The City of Chesapeake levies a utility tax on commercial users of gas and electricity. This tax is shown on the respective utility bill and is collected by the utility company.

Telephone service: Effective 1/1/2007 a 5% Virginia Communications Sales Tax on all services including long distance charges.