Fairfax City Charter Amendment - Removes Transient Occupancy Tax Cap
Summary
Virginia SB581 was signed into law, amending the City of Fairfax's charter to remove the cap on transient occupancy tax and align it with general state law. The bill also aligns municipal election timing with November general elections and removes the $50 per meeting cap on compensation for board and commission members, allowing City Council to set such amounts. The law takes effect July 1, 2026.
What changed
Virginia SB581 amends the City of Fairfax charter in three key areas: (1) removes the transient occupancy tax cap and replaces it with a reference to general law, giving the city council authority to set tax rates without a statutory ceiling; (2) updates charter provisions to align with state law requiring municipal elections to be held at November general elections; and (3) eliminates the $50 per meeting limit on compensation for members of boards and commissions, allowing City Council to establish compensation amounts.\n\nFor hotel operators, short-term rental owners, and hospitality businesses in Fairfax City, the removal of the transient occupancy tax cap could result in higher tax obligations as the city gains flexibility to increase rates. For local government appointees serving on boards and commissions, compensation may increase beyond the previous $50 per meeting ceiling. The charter changes reflect broader state municipal governance standards and provide additional fiscal authority to the city.
What to do next
- Hotels and short-term rental operators in Fairfax City should monitor for potential transient occupancy tax rate changes
- City of Fairfax should prepare to implement new compensation policies for board and commission members
- Local government administrators should update election procedures to align with November general election timing
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Virginia / SB581 Signed by Governor SB581 Senate Bill Signed by Governor 2026-04-06
Fairfax, City of; amending charter, elections, compensation for members of boards or commissions.
Charter; City of Fairfax; financial powers; elections; compensation for members of boards or commissions. Amends the charter for the City of Fairfax by replacing a cap on the transient occupancy tax with a reference to general law. The bill also amends the charter to align it with current law requiring municipal elections to be held at the November general election. Finally, the bill removes the limit of $50 per meeting for compensation of members of boards and commissions and provides that such compensation is in such amounts as established by the City Council. This bill is identical to HB 1342.
Bill Details
State Virginia
Session 2026 Regular Regular Session
Chamber Senate
Official Source lis.virginia.gov/bill-details/20261/SB581
LegiScan View on LegiScan
Sponsors
Saddam Salim (Sen - D)
Action History
2026-04-06 Approved by Governor-Chapter 303 (effective 7/1/2026) 2026-04-06 Approved by Governor-Chapter 303 (effective 7/1/2026) 2026-03-10 Governor's Action Deadline 11:59 p.m., April 13, 2026 2026-03-10 S Enrolled Bill communicated to Governor on March 10, 2026 2026-03-09 S Signed by President 2026-03-09 H Signed by Speaker 2026-03-09 S Bill text as passed Senate and House (SB581ER) 2026-03-09 S Enrolled 2026-03-03 S Conference report agreed to by Senate (28-Y 12-N 0-A) 2026-03-02 H Conference report agreed to by House (92-Y 6-N 0-A) 2026-03-02 Conference Report released 2026-02-24 H House Conferees: Bulova, Shin, McNamara 2026-02-24 H Conferees appointed by House 2026-02-23 S Senate Conferees: Salim, Pekarsky, Diggs 2026-02-23 S Conferees appointed by Senate 2026-02-23 S Senate acceded to request (38-Y 0-N 0-A) 2026-02-19 H House requested conference committee 2026-02-19 H House insisted on substitute 2026-02-18 S House substitute rejected by Senate 2026-02-16 H Passed House with substitute (75-Y 22-N 0-A) 2026-02-16 H Engrossed by House - committee substitute 2026-02-16 H committee substitute agreed to 2026-02-16 H Read third time 2026-02-15 H Read second time 2026-02-13 H Committee substitute printed 26107970D-H1 2026-02-13 H Reported from Counties, Cities and Towns with substitute (16-Y 5-N) 2026-02-13 H House committee offered 2026-02-04 H Referred to Committee on Counties, Cities and Towns 2026-02-04 H Read first time 2026-02-04 H Placed on Calendar 2026-01-29 S Read third time and passed Senate (33-Y 7-N 0-A) 2026-01-29 S Reconsideration of Passed by for the day agreed to Block Vote (38-Y 0-N 0-A) 2026-01-29 S Passed by for the day 2026-01-29 S Reconsideration of defeated action agreed to by Senate (40-Y 0-N 0-A) 2026-01-29 S Read third time and defeated by Senate (24-Y 16-N 0-A) 2026-01-28 S Engrossed by Senate (Voice Vote) 2026-01-28 S Read second time 2026-01-27 S Passed by for the day 2026-01-27 S Passed by for the day Block Vote (Voice Vote) 2026-01-27 S Rules suspended 2026-01-27 S Constitutional reading dispensed Block Vote (on 1st reading) (39-Y 0-N 0-A) 2026-01-27 S Read first time 2026-01-26 S Reported from Local Government (8-Y 6-N) 2026-01-14 S Referred to Committee on Local Government 2026-01-14 S Prefiled and ordered printed; Offered 01-14-2026 26104641D
Votes
2026-01-26 Reported from Local Government (8-Y 6-N) Yea: 8 Nay: 6 2026-01-27 Constitutional reading dispensed Block Vote (on 1st reading) (39-Y 0-N 0-A) Yea: 39 Nay: 0 2026-01-29 Read third time and defeated by Senate (24-Y 16-N 0-A) Yea: 24 Nay: 16 2026-01-29 Reconsideration of defeated action agreed to by Senate (40-Y 0-N 0-A) Yea: 40 Nay: 0 2026-01-29 Reconsideration of Passed by for the day agreed to Block Vote (38-Y 0-N 0-A) Yea: 38 Nay: 0 2026-01-29 Read third time and passed Senate (33-Y 7-N 0-A) Yea: 33 Nay: 7 2026-02-13 Reported from Counties, Cities and Towns with substitute (16-Y 5-N) Yea: 16 Nay: 5 2026-02-16 Passed House with substitute (75-Y 22-N 0-A) Yea: 75 Nay: 22 2026-02-18 House substitute rejected by Senate Yea: 0 Nay: 38 2026-02-23 Senate acceded to request (38-Y 0-N 0-A) Yea: 38 Nay: 0 2026-03-02 Conference report agreed to by House (92-Y 6-N 0-A) Yea: 92 Nay: 6 2026-03-03 Conference report agreed to by Senate (28-Y 12-N 0-A) Yea: 28 Nay: 12
Committee Referrals
2026-01-14 S Local Government 2026-02-04 H Counties, Cities and Towns
Bill Text Versions
2026-01-14 Introduced 2026-02-13 Comm Sub 2026-02-13 Comm Sub 2026-03-09 Enrolled Legislative data powered by LegiScan (CC BY 4.0)
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