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and other tangible personal property required to be licensed or registered with the Department of Motor Vehicles, Department of Game and Inland Fisheries or the Department of Aviation. 2. That Chapter 35 of the Code of the City of Portsmouth, Virginia, 1988, be amended by adding thereto Article XIV to read as follows: ARTICLE XIV. Short-term rental tax. Section 35-500. Short-terK~ rental tax. (a) Levied; amount. Pursuant to Section 58.1-3510 of the Code of Virginia, there is hereby assessed and imposed on every person engaged in the short-term rental business a tax of one percent (1%) of the gross proceeds of such business. Such tax shall be in addition to the tax levied pursuant to ~58.1-605 of the Code of'Virginia. For purposes of this section, "gross proceeds" means the total amount charged to each person for the rental of daily rental property, as defined in ~58.1-3510 of the Code of Virginia, excluding any state and local sales tax paid pursuant to the Virginia Retail Sales and Use Tax Act. (b) Short-term rental business; defined. A person is engaged in the short-term rental business if not less than eighty percent (80%) of the gross rental receipts of such business in any year are from transactions involving rental periods of ninety-two (92) consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessor. "Affiliated" for the purposes of this subsection shall mean any common ownership interest in excess of five percent (5%) of any officers or partners in common with the lessor and lessee. For purposes of this test, (i) any rental to a person affiliated with the lessor shall be treated as rental receipts but shall not qualify for purposes of the eighty percent (80%) requirement, and (ii) any rental of personal property which also involves the provisions of personal services for the operation of the personal property rented shall not be treated as gross receipts from rental. For purposes of this section, the delivery and installation of tangible personal property shall not mean operation. (c) Taxation of rental propersy that is not daily rental property. Except for daily rental passenger cars, rental property that is not daily rental property shall be classified for taxation pursuant to ~5~.t-3503 of the Code of Virginia.