Bank Franchise
The bank franchise tax is an annual tax measured by the net capital of a bank. A bank has been defined as “any incorporated bank, banking association or trust company organized by or under the authority of the laws of the Commonwealth and any bank or banking association organized by or under the authority of the laws of the United States….” The tax is 80 percent of the state tax rate of taxation for each $100.00 of the net capital. Banks having a branch or principal office in Henrico County are required to file a Bank Franchise Tax Return. If the location is not a principal office, but is a branch of the principal office, the tax is apportioned as provided by the Code of Virginia.
| Phone number: | 804-501-7329 |
| Relevant code: | Henrico Code §20-167 thru 20-170 / Henrico Code §20-167 thru 20-170 |
Business License
Virtually all businesses must purchase a business license before commencing operation in Henrico County (the County has no Merchants’ Capital Tax). The specific tax rate varies depending on the nature of the business. In most instances the tax rate is applied to gross receipts. Licenses expire December 31st of each year and must be renewed annually by March 1st.
| Phone number: | 804-501-4310 |
| Application: | Business License Application (PDF) |
| Relevant code: | Henrico Code §20-350 thru 20-821 / Henrico Code §20-350 thru 20-821 |
Business Tangible Personal Property
Virtually all businesses must file on all furniture, fixtures, tools, signs, and all equipment used in the conduct of business. The base tax rate applicable to this class of property is currently $3.50 per $100 of assessed value. Various depreciation schedules are applied to arrive at the fair market value of the assets being reported (depending upon the classification of the item).
| Phone number: | 804-501-4310 |
| Application: | Business Return of Tangible Personal Property |
| Relevant code: | Henrico Code §20-108 thru 20-116 / Henrico Code §20-108 thru 20-116 |
Cable
In consideration of the granting of a franchise to use the public ways for the operation of a cable television system, five percent of its annual gross revenues during the period of its operation under the franchise; Sec. 7-62 of the Henrico County Code.
| Phone number: | 804-501-7329 |
| Application: | Business Return of Tangible Personal Property |
| Relevant code: | Henrico Code §7-1 thru 7-11 / Henrico Code §7-1 thru 7-11 |
Short Term Rental Property Tax
The Short Term Rental Property Tax is a 1% tax imposed on the gross receipts generated from the rental of owned tangible personal property. Annual certification is issued upon application by qualified merchants, defined as those who derive at least 80% of their gross rental income from rentals made for a period of 92 days or less.
This tax is collected from the consumer in a manner similar to that used in the collection of sales tax and is remitted to the County quarterly, in lieu of the payment of business personal property tax on the rental inventory. Rental income from property required to be licensed with DMV, Game and Inland Fisheries, or Aviation is not subject to this tax.
| Phone number: | 804-501-7329 |
| Application: | Short Term Rental Property Tax |
| Relevant code: | Henrico Code §20-307 thru 20-323 / Henrico Code §20-307 thru 20-323 |
Daily Rental Vehicle
The Virginia Department of Taxation administers the Daily Rental Tax. These businesses are certified and registered by the Department of Taxation. Registered businesses collect a tax of 4.0% of the gross proceeds on the vehicle rental and remit the tax to the Department of Taxation, who in turn remits the tax monthly. The Department of Taxation processes an ACH Transfer for funds into Henrico County’s account.
| Relevant code: | State of Va. Code §58.1-2400 |
Machinery & Tools
A tax is levied on the machinery and tools used in the manufacturing, processing or reprocessing, mining, radio or television broadcasting, dairy, dry-cleaning, or laundry business. The Machinery and Tools Tax Rate is currently $.30 per $100 of assessed value (which is determined by applying a depreciation schedule to arrive at the fair market value).
| Relevant code: | Henrico Code §20-108 thru 20-116 / Henrico Code §20-108 thru 20-116 |
Off-Track Betting (Pari-Mutual Betting Fees)
The tax began in Henrico County December 10, 1996. Henrico receives 1/4% of all win, place, show wagers and 1/2% of all exotic wagers placed at the off-track betting parlor in Henrico County.
| Phone number: | 804-501-7329 |
| Relevant code: | State of Va. Code §59.1-365 |
Public Service Corp.
Companies designated as public service corporations, e.g., interstate pipelines, railroads, telegraph/telephone, etc. are billed for the first installment based on one-half of their Equalized Property value. The second installment billing reflects the actual assessment as determined by the Department of Taxation and State Corporation Commission. In the second installment payment, vehicles are billed and district rates are applied.
| Phone number: | 804-501-7329 |
| Relevant code: | Henrico Code §20-108 (g) / Henrico Code §20-108(g) |
Sales & Use
Retailers collect 6.0% Retail Sales tax imposed on retail consumer sales. The County portion of this tax is 1.0%. No County tax, other than the Sales Tax, is levied on Admissions or Cigarettes.
| Phone number: | 804-501-7354 |
| Relevant code: | Henrico Code §20-194& 20-214 / State of Va. Code §58.1-600 |
Transient Lodging
All motels and hotels in Henrico County collect a local transient lodging tax of 8% on room rental charges, including the Tourism Improvement District fee.
| Phone number: | 804-501-7329 |
| Relevant code: | Henrico Code §20-273 thru 20-279 / Henrico Code §20-273 thru 20-279 |
Tourism Improvement District (TID) Fee
Beginning July 1, 2023, motels and hotels with 41 or more rooms collect a Tourism Improvement District fee of 2% on room rental charges.
| Phone number: | 804-501-7329 |
| Relevant code: | State of Va. Code §15.2-2413.5 |
Utility Taxes
Henrico Code §20-239 thru 20-247/
Electric / State of Va. Code §58.1-2900
$0.70 plus the rate of $0.007537 per kilowatt hour delivered not to exceed a maximum monthly tax of $1.00 (Residential).
$1.15 plus the rate of $0.00713 per kilowatt hour delivered not to exceed a maximum monthly tax of $10.00 (Commercial).
$0.70 plus the rate of $0.007537 per kilowatt hour delivered not to exceed a maximum monthly tax of $1.00 per dwelling unit (multi-family/apartments).
$1.15 plus the rate of $0.007603 per kilowatt hour delivered not to exceed a maximum monthly tax of $10.00 (Industrial).
Natural Gas / State of Va. Code §58.1-2904/
25% of first $625, 5% of bill over $625 (paid to City of Richmond).
