2008-2009 VIRGINIA State and Local Tax Rates

REAL PROPERTY TAX

State

There is no statewide real property tax in Virginia

County/Locality

The primary source of local government revenue in Virginia is real estate tax collections. Real estate tax rates are set annually by the governing body in conjunction with the adoption of the jurisdiction’s annual budget.

Real Property Tax Rates in Northern Virginia Jurisdictions

Commercial Real Property Tax Surcharges in Arlington and Fairfax Counties

Pursuant to authority granted to Northern Virginia localities in last year’s transportation legislation, Arlington and Fairfax Counties have adopted additional property tax surcharges of 12.5 cents and 11 cents, respectively, to fund the construction of new transportation infrastructure. By law, multifamily residential properties are excluded from this add-on tax, which only applies to commercial properties. Local governments are authorized to adopt a commercial real property tax surcharge of up to 25 cents per $100 of assessed value.

Use of the surcharge authority has also been considered by the City of Alexandria and Loudoun County. The Alexandria City Council ultimately declined to adopt a commercial real property tax surcharge. Loudoun County has also declined to do so, but continues to actively evaluate using the local option to raise FY 2009 revenue.

Business Personal Property Tax

Local governments in Virginia assess a tax on business-owned personal property. Personal property generally includes furniture, fixtures, office and industrial equipment, machinery, tools, supplies, inventory and any other property not classified as real property. Business personal property taxes are collected by the following Northern Virginia jurisdictions -

City of Alexandria: Calculated by multiplying the assessed value of property by the business property tax rate of $4.75/$100 assessed value. Property assessed at 80% of purchase cost in first year, declining by 10% each year until it reaches the minimum value of 20% of purchase cost in the seventh and later years of service. Computer equipment assessed at 65% of purchase cost in first year, declining to 45% in the second year, 30% in the third year, 20% in the fourth year, and 5% in the fifth and consecutive years of service.

Arlington County: Calculated by multiplying the assessed value of property by the business property tax rate of $5.00/$100 assessed value. Property assessed at 80% of purchase cost in first year, declining by 10% each year until it reaches the minimum value of 20% of purchase cost in the seventh and later years of service. Computer equipment assessed at 65% of purchase cost in first year, declining to 45% in the second year, 30% in the third year, 10% in the fourth year and consecutive years of service.

Fairfax County: Calculated by multiplying the assessed value of property by the business property tax rate of $4.57/$100 assessed value. Property assessed at 80% of purchase cost in first year, declining by 10% each year until it reaches the minimum value of 20% of purchase cost in the seventh and later years of service. Computer equipment assessed at 50% of purchase cost in first year, declining to 35% in the second year, 20% in the third year, 10% in the fourth year, and 2% in the fifth and consecutive years of service.

Loudoun County: Calculated by multiplying the assessed value of property by the business property tax rate of $4.20/$100 assessed value. Property assessed at 80% of purchase cost in first year, declining by 10% each year until it reaches the minimum value of 20% of purchase cost in the seventh and later years of service. Computer equipment assessed at 65% of purchase cost in first year, declining to 45% in the second year, 30% in the third year, 20% in the fourth year, and 5% in the fifth and consecutive years of service.

Prince William County: Calculated by multiplying the assessed value of property by the business property tax rate of $3.70/$100 assessed value. Property assessed at 85% of purchase cost in first year, declining by 10% each year until it reaches the minimum value of 10% of purchase cost in the ninth and later years of service. Computer equipment assessed at a rate of $1.25/$100 assessed value at 50% of purchase cost in first year, declining to 35% in the second year, 20% in the third year, 10% in the fourth year, and 5% in the fifth and consecutive years of service.

Real Property Recordation and Transfer Tax

The Commonwealth of Virginia assesses taxes on the recordation of deeds and leases in conjunction with the transfer or sale of real property. These taxes are collected by the local governments. The state recordation tax rate is $0.25/$100 assessed value. An additional tax of $0.10/$100 assessed value is levied on the grantor. Local governments are authorized to levy an additional tax on recordation of up to 1/3 of the state tax rate. This additional $0.0833/$100 assessed value is assessed by all Northern Virginia localities.

Business, Professional and Occupational License (BPOL) Fees

Local governments in Virginia are authorized to assess fees for business licensing based on the gross receipts of a company for the prior year, without deductions. Many jurisdictions impose a flat fee for companies whose gross receipts do not exceed a set level.

BPOL Rates in Northern Virginia Jurisdictions

Sales and Use Taxes

Businesses in Virginia are required to pay sales taxes on all taxable purchases, with certain exceptions. Sales and use taxes are also applied to telecommunications services. There are no general local sales taxes in Virginia.

State FY 2009 Sales and Use Tax Rate: 5.00%

Energy and Consumer Utility Taxes

City of Alexandria Utility Tax Rates

Arlington County Utility Tax Rates

Arlington County further imposes a residential consumer utility tax to support emissions reduction and environmental sustainability programs. The tax is capped at $72 per year for natural gas and electricity combined and excludes the first 400 kWh of electricity usage and 20 CCF of natural gas usage.

Fairfax County Utility Tax Rates

Loudoun County Utility Tax Rates

Prince William County Utility Tax Rates

AOBA members with questions regarding the rates listed above should contact the tax billing and collection office for the appropriate County:

CITY OF ALEXANDRIA
Finance Department
301 King Street, Room 1600
Alexandria, Virginia 22314
Tax Bills: (703) 838-4755
Fax: (703) 838-4987
City of Alexandria Home Page

ARLINGTON COUNTY
Commissioner of Revenue
2100 Clarendon Boulevard, Suite 200
Arlington, Virginia 22201
Tax Bills: (703) 228-3033
Arlington County Home Page

FAIRFAX COUNTY
Department of Tax Administration
Fairfax County Government Center, Suite 223
12000 Government Center Parkway
Fairfax, Virginia 22035
Tax Bills: (703) 222-8234
Fairfax County Home Page

LOUDOUN COUNTY
Treasurer’s Office
1 Harrison Street, SE, First Floor
Leesburg, Virginia 20175
Tax Bills: (703) 777-0280
Loudoun County Home Page

PRINCE WILLIAM COUNTY
Tax Administration Division
4379 Ridgewood Center Drive, Suite 203
Prince William, Virginia 22192-5308
Tax Bills: (703) 792-6293
Prince William County Home Page