I work from home. What property do I need to report?
All property owned, loaned, or made available for you to conduct business is reportable and taxable. Examples of business property include: cell phones, desks, chairs, computers, servers, and printers.
If I close my business on March 1, do I still have to pay business property tax for the full year?
Yes. Business property tax is based on the property you were using to operate your business on January 1 of that year. Business property tax is not prorated.
What is the Machinery & Tools Rate Change for Business Property?
Beginning January 1, 2012, the tax rate for machinery and tools and for hire motor carrier property is one millionth of one cent ($.000001) on each one hundred dollars ($100) of assessed valuation.
The following personal property shall also be taxed at the machinery and tools rate:
1. All tangible personal property used in research and development businesses,
as described in Code of Virginia Section 58.1-3506(A)(7);
2. Generating or cogenerating equipment, as described in Code of Virginia
Section 58.1-3506(A)(9); and
3. All motor vehicles, trailers and semitrailers with gross vehicle weight of 10,000
pounds or more used to transport property for hire by a motor carrier engaged in
interstate commerce, as described in Code of Virginia Section 58.1-3506(A)(25).
4. Machinery and tools used directly in the harvesting of forest products or
semiconductor manufacturing, not exempt from taxation.
Please remember, this is a rate reduction not an exemption from taxation. You are still required to file your machinery and tools property annually on the forms prescribed by our office.