Nelson County to hold public hearings on transient-occupancy tax code updates and new zoning check for business licenses

The Nelson County Board of Supervisors authorized public hearings on proposed amendments to the county code that would implement recent state legislation affecting transient-occupancy tax administration and would add a zoning-approval step to certain business license applications.

County staff explained the amendments are intended to make Nelson County compliant with recent General Assembly legislation (HB 2383 and SB 1402). The proposals would amend Chapter 11, Taxation, Article 6 to add definitions such as “accommodations intermediary” and “accommodations provider,” repeal and re-enact collection sections, and formally allow accommodations intermediaries (examples cited by staff included “Airbnb, VRBO”) to collect and remit tax on behalf of providers. Staff also said the proposed code would permit an accommodations intermediary to attest to the commissioner of revenue that it has facilitated all accommodation sales, which would relieve individual providers who use intermediaries from submitting separate reports to the commissioner.

Staff further told the board that the new state code makes certain intermediary-provided information confidential and prohibits sharing that intermediary data with other county departments. To maintain county zoning and business-registry functions, staff proposed amending Chapter 6, Licenses, Permits, and Business Regulations (Article 4, General Business License, Section 6-90) to require zoning approval before issuing a business license for new or relocated businesses or for businesses that change their physical description when the use is regulated by the zoning ordinance. Staff characterized the change as limited to storefront/commercial uses, home occupations (with thresholds), and short-term rentals; they said ordinary home-office uses and mobile/off-site permits would generally not be routed for zoning approval.

Supervisors moved and approved Resolution R2025-41 (authorization for public hearing on taxation/occupancy reporting) and Resolution R2025-42 (authorization for public hearing on business license application requirements). Roll-call votes were recorded in favor of both items.

Staff said Planning and Zoning is developing a new zoning-approval application to be used before applicants obtain a business license for regulated uses. The proposed public hearings will allow the board to gather public comment before any final ordinance changes are adopted.