Machinery & Tools Tax

Machinery and Tools tax is assessed on Original Capitalized Cost and Year of Purchase.

Tax Rate

• Assessment is equal to 25% of Original Capitalized Cost
• $3.05/Hundred Dollars Assessed Value (Passed by City Council May 27, 2003)

Tax Reporting

• Due Date to File: February 15th
• Taxes Due: June 15th and December 5th

Rebate of Machinery & Tools Tax for Certain Businesses Located in the Enterprise Zone (Section 34-30)

1. Rebate Authorized - A partial rebate of machinery and tools taxes is hereby provided for any business located in the Enterprise Zone which is newly constructed, expanded, renovated or replaced in accordance with the criteria set out in the Constitution of Virginia and pursuant to Section 59.1-279 et seq., the Urban Enterprise Zone Act of the Code of Virginia of 1950, as amended.  A partial rebate will be provided on and after July 1, 2011, and for each fiscal year until June 30, 2015.
2. Eligibility - For the purposes of this section, businesses located in the Enterprise Zone shall be eligible for a partial rebate of the machinery and tools tax resulting from new construction, expansion, or replacement of existing machinery and tools only if the machinery and tools installed increases the assessed value of machinery and tools above the current assessed value or base value.  If the new construction, expansion, or replacement of existing machinery and tools results in a decrease in the assessed value of the machinery and tools then the business shall not be eligible to receive a partial rebate.
3. Amount of rebate - The amount of partial rebate provided for in this section shall be equal to 30% of the increase above the base value in the assessed value of machinery and tools installed in a business located within the Enterprise Zone.
4. Length of rebate - The partial rebate for taxation of machinery and tools for the installation of new or the replacement of existing machinery and tools shall run with the land and for the benefit of any owner of such property during each of the three years of the rebate.  The owner of the property shall be entitled to receive a rebate of 30% of the increase in the assessed value of the machinery and tools as a result of the new construction, renovation, or replacement, as determined by the Commissioner of the Revenue, during the first year after completion and subsequent two years.
5. An application for enterprise zone benefits must be submitted to the Commissioner of Revenue, and the benefit accessed by the business within one year of the start of operations in the enterprise zone or subzone, or within one year of a qualifying facility expansion or renovation in order to receive the machinery and tools tax rebate.