Tax Entities
Counties and cities in Virginia are separate taxing entities. A company pays either county or city taxes depending upon its location. State income and sales taxes are collected by the Commonwealth of Virginia.
2024 Local Tax Rates in Chesterfield
| Personal Property | Assessment Ratio | Nominal Tax Rate (Per $100 of Assessed Value) | Effective Tax Rate (Per $100 of Assessed Value) |
|---|---|---|---|
| (Based on on Loan Value) | 100% | $3.35 | $3.35 |
| Business Tangible Personal Property (Data Center Equipment) | Years | Assessment Ratio | Nominal Tax Rate (Per $100 of Assessed Value) | Effective Tax Rate (Per $100 of Assessed Value) |
|---|---|---|---|---|
| (Based on Original Cost) | Year 1 | 50% | $0.24 | $0.12 |
| Year 2 | 40% | $0.24 | $0.096 | |
| Year 3 | 20% | $0.24 | $0.048 | |
| Year 4 | 10% | $0.24 | $0.024 | |
| Year 5 | 5% | $0.24 | $0.012 | |
| Year 6+ | 1% | $0.24 | $0.0024 |
| Business Intangible Personal Property | Assessment Ratio | Nominal Tax Rate (Per $100 of Assessed Value) | Effective Tax Rate (Per $100 of Assessed Value) |
|---|---|---|---|
| (Manufacturing Equipment and Furniture not Used in the Manufacturing Process) | Exempt | Exempt | Exempt |
| Automobiles and Trucks of Less than Two Tons | Assessment Ratio | Nominal Tax Rate (Per $100 of Assessed Value) | Effective Tax Rate (Per $100 of Assessed Value) |
|---|---|---|---|
| Based on Average Loan Value | 100% | $3.35 | $3.35 |
| Trucks of Two Tons and Greater | Years | Assessment Ratio | Nominal Tax Rate (Per $100 of Assessed Value) | Effective Tax Rate (Per $100 of Assessed Value) |
|---|---|---|---|---|
| (Based on Original Cost) | New | 90% | $3.35 | $3.02 |
| 1 year old | 70% | $3.35 | $2.35 | |
| 2 years old | 60% | $3.35 | $2.01 | |
| 3 years old | 50% | $3.35 | $1.68 | |
| 4 years old | 40% | $3.35 | $1.34 | |
| 5 years old | 30% | $3.35 | $1.01 | |
| 6 years old | 20% | $3.35 | $0.67 | |
| 7+ years old | 10% | $3.60 | $0.34 |
| Business Licenses | (Based on) | Assessment Ratio | Nominal Tax Rate (Per $100 of Assessed Value) | Effective Tax Rate (Per $100 of Assessed Value) |
|---|---|---|---|---|
| Retail Merchant | Gross Receipts | 100% | $0.19 | $0.19 |
| Business and Personal Services | Gross Receipts | 100% | $0.20 | $0.20 |
| Wholesale (Capped at $20,000 max.) | Gross Receipts | 100% | $0.10 | $0.10 |
| Professional Services | Gross Receipts | 100% | $0.20 | $0.20 |
| Financial Services (Capped at $90,000 max.) | Gross Receipts | 100% | $0.20 | $0.20 |
| Contractors | Gross Receipts | 100% | $0.14 | $0.14 |
| Real Estate Services | Gross Receipts | 100% | $0.20 | $0.20 |
| Commission Merchants | Gross Receipts | 100% | $0.20 | $0.20 |
| Repair Services | Gross Receipts | 100% | $0.20 | $0.20 |
| Direct Seller - Retail | Gross Receipts | 100% | $0.19 | $0.19 |
| Direct Seller - Wholesale | Gross Receipts | 100% | $0.05 | $0.05 |
| Information Services | Gross Receipts | 100% | $0.10 | $0.10 |
| Research & Development, Biotech, or BioMed R&D | Gross Receipts | 100% | $0.10 | $0.10 |
| Federal Contractor R&D Services | Gross Receipts | 100% | $0.03 | $0.03 |
| Computer Service | Gross Receipts | 100% | $0.03 | $0.03 |
| Computer Software Development | Exempt | 100% | $0.00 | $0.00 |
Every person engaged in a licensable business shall pay an annual fee if the total gross receipts, or gross purchases for wholesale merchants, from the licensable activity are $10,000 or more, but less than $500,000, during the base year.
No license tax is levied on a business whose base year gross receipts, or gross purchases for wholesale merchants, were less than $500,000.
The amount of gross receipts shall be reduced by $500,000 for calculating the applicable tax.
| Monthly Utility Bill | Rates |
|---|---|
| (Commercial rates) | |
| Electric: Commercial User | $1.15 plus the rate of $.007023 on the first 2,684 kWh, $.000508 on 2,685 to 195,597 kWh and $.000367 on the remaining balance delivered monthly. |
| Electric: Industrial User | $1.15 plus the rate of $.010995 on the first 1,714 kWh, $.000758 on 1,715 to 131,002 kWh and $.000167 on the remaining balance delivered monthly. |
| Gas | $2.00 plus the rate of $0.010010 on the first 50,000 CCF and $0.00005 on the remaining balance delivered monthly. |
| Communications Sales Tax | 5% of monthly landline and wireless telephone bills, remitted monthly. |
2024 Tax Rates in Virginia
| Sales and Use Taxes | Tax Rate |
|---|---|
| Local Sales Tax | 1.00% |
| Regional Sales Tax | 0.70% |
| State Sales Tax | 4.30% |
| State Tax | - | Tax Rate |
|---|---|---|
| Corporate Income Tax | 6.00% | |
| Machinery & Tools Tax | 0.00% | |
| Real Estate Tax | 0.00% | |
| Personal Property Tax | 0.00% | |
| Business Tangible Personal Property Tax | 0.00% | |
| Business Intangible Personal Property Tax | 0.00% | |
| Personal Income Tax | ||
| - Income | $0 – $3,000 | 2.00% |
| - Income | $3,001 – $5,000 | $60 + 3% of excess over $3,000 |
| - Income | $5,001 – $17,000 | $120 + 5% of excess over $5,000 |
| - Income | $17,001 and above | $720 + 5.75% of excess over $17,000 |
| Unemployment Insurance Tax | ||
| - Unemployment Insurance Tax | New Employer's Rate | 2.5% |
| - Unemployment Insurance Tax | Minimum | 0.1% |
| - Unemployment Insurance Tax | Maximum | 6.2% |
| - Unemployment Insurance Tax | Wage Base | $8,000 |
