Business Personal Property Tax

Business Personal Property Tax

All movable tangible property — all furniture, fixtures, tools, signs, and equipment (excluding vehicles) owned by a business and used for business purposes on January 1 of each year is subject to the tax. This information must be provided to the County for assessment purposes by March 1 of each year. You must keep a record of the cost and date acquired for each asset your business reports on its business personal property tax return. If form is needed, please use our Asset Listing template.

Relevant code: Henrico Code §20-108 thru 20-116 / State of Va. Code §58.1-3500 thru 58.1-3522

Assessments and Tax Rate

The base tax rate applicable to this class of property is $3.50 per $100 of assessed value. Depreciation schedules, which depict an asset’s loss in value over time, will be/are based on the fair market value of all reported assets (depending upon the classification of the item.

• Data Center Tax Rate (at least one megawatt of electrical power capacity): $.40 per $100.00 of the assessed value of computers and peripherals used in a data center.
• Equipment Used Primarily for Research, Development, Production, or Provision of Biotechnology Services: $0.90 per $100.00 of the assessed value of the equipment.
• Machinery Used for Manufacturing/Mining Tax Rate: $0.30 per $100.00 of the assessed value of the machinery and tools (which is determined by applying a depreciation schedule to arrive at the fair market value).

The total original cost (which are all costs associated with acquiring and placing an asset in use, such as freight, installation, sales tax, etc.) is multiplied by the appropriate depreciation factor. To request a copy of the depreciation schedule please call the Revenue Division at (804) 501-4310.

File and Pay

There are several different schedules used for reporting business personal property including Schedule 80 to report all furniture and fixtures owned by a business and Schedule 85 to report equipment such as CPUs, fax machines, modems, satellite equipment, etc. The depreciation factors are determined by examining actual sales data for the type of property reported on each schedule.

• Reporting Licensed Vehicles: Licensed vehicles should not be included in business personal property reported on the business personal property return.
• Reporting Leased Property by a Business: All leased equipment should be reported on Schedule 95 of the business personal property return.
• Reporting Machinery and Tools by Manufacturers: 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. Manufacturers should file a machinery and tools return to report only those assets used directly in the manufacturing process. Please call the Business Section of Henrico County at (804)501-4310 to determine if you should file a machinery and tools return.

If a business sells any personal property during the year, the tax bill cannot transfer because the taxes are assessed based on who owned the property on January 1. Taxes are based on property owned by the business as of January 1 and if you close your business taxes will not be prorated.

Applications can be obtained from Room 136, Administration Building, Government Center, 4301 East Parham Road; from the Eastern Government Center, 3820 Nine Mile Road or by calling the Revenue Division at 804-501-4310.

Henrico County also offers an online portal that allows businesses to file and pay certain business taxes. Currently, filing and payment through the portal are available for businesses that have active records in the Henrico system. For new businesses, or businesses with inactive accounts, please contact the Business Section at (804) 501-4310 for assistance.

Due Dates & Penalties

All returns are due by March 1 of each year. There is a 10 percent penalty for late filing as stated in the Henrico County Code, Sec. 20-101 (1)b. Payments are due June 5th and December 5th of each year. Failure to pay will result in a late payment penalty of 10% of the tax due. Interest at the rate of 4% per annum accrues on all unpaid balances.