Making good on a promise that Mayor William D. Sessoms, Jr. made in 2010, Virginia Beach has eliminated its machinery and tools tax for local manufacturers, effective July 1. The tax was assessed against manufacturers on equipment used in the production of goods.
“We looked at all possible ways our city can attract and reward manufacturers for doing business in Virginia Beach,” Mayor Sessoms said. “Our mission is to increase the number of jobs, and this tax has hindered our ability to attract high-performance manufacturers.”
Currently, Virginia manufacturers are liable for the real estate tax, industrial utility tax and personal property tax on road-licensed vehicles. With one less tax, Virginia Beach provides a new incentive for companies looking to establish, relocate or expand manufacturing facilities.
STIHL Incorporated, Virginia Beach’s largest manufacturer, has been paying the highest amount of taxes on its tools and machinery in the city. “As a manufacturer that competes for global production responsibilities on an ongoing basis, STIHL Incorporated is pleased to learn of the recent adjustment to the machinery and tools tax,” said Karl Angler, STIHL’s vice president of finance. “This adjustment will assist STIHL Inc. to compete domestically and globally while ultimately protecting jobs here at home.”
“We anticipate that the city will quickly be identified as a city of choice among high-performance manufacturing as a result of our City Council action” said Warren D. Harris, city director of economic development. “Manufacturing is one of our target industries, and we are working very hard to bring national and international companies to Virginia Beach. This initiative puts Virginia Beach in the front line of business-friendly cities and will help us compete in the global market.”
The mission of the Virginia Beach Department of Economic Development is to attract and retain national and international business and industry that results in the creation of new capital investment and jobs that increase the per capita income in the community. The City of Virginia Beach is the most populous city in the Commonwealth of Virginia with a population of 434,000 and is the 42nd largest city in the United States. Virginia Beach has been recognized as having one of the 10 best economic development groups in the nation by Site Selection magazine. In 2006, Virginia Beach was named one of the 10 best big cities in America by Money magazine. In 2008, the Department of Economic Development received re-accreditation through the International Economic Development Council, one of only 25 economic development organizations in the world to have this recognition. In 2010, the Department won an Award of Excellence for its marketing efforts from the International Economic Development Council. For more information, visit www.yesvirginiabeach.com.