| Tax Guide |
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| TAXES ON REAL ESTATE IN VIRGINIA |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
|
Assessment Ratio (Percentage of Fair Market Value Taxable)* |
Per $100 of Assessed Valuation |
(Assessment Ratio X Nominal Tax Rate) |
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| LOUISA |
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89.90% |
$0.67 |
$0.60 |
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| ORANGE |
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85.70% |
$0.87
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$0.75
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| SPOTSYLVANIA |
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85.50% |
$1.01
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$0.86
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| *Virginia statutes require
reassessments to be made at 100 percent of fair market value. However,
because of rising real estate values and most localities reassessing only
periodically, actual assessment ratios are usually lower than 100 percent.
Each year, the Virginia Department of Taxation examines real estate
transactions, comparing real estate assessments effective on the date of the
property's sale with the selling price of the property. The Tax Department's
ratios of assessed values to selling prices for 2002 are shown in this table.
They represent the best measures of actual assessment ratios in Virginia
localities. |
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| MANUFACTURERS'
TAXES ON MACHINERY AND TOOLS |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
|
Value Used for Tax Purposes |
Assessment
Ratio (Percentage of this Value Taxable Based on Age) |
Nominal
Tax Rate Per $100 of Assessed Valuation |
Effective
Tax Rate Per $100* (Rates Cannot be Compared) |
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Age of Machinery |
Percent |
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| LOUISA |
|
Original Cost |
1 + |
10.00% |
$1.83
|
$0.19
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| ORANGE |
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Original Cost |
1 |
80.00% |
$1.83
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$1.46
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Original Cost |
2 |
76.00% |
$1.83
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$1.39
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Original Cost |
3 |
72.00% |
$1.83
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$1.32
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Original Cost |
4 |
68.00% |
$1.83
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$1.25
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Original Cost |
5 |
64.00% |
$1.83
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$1.17
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Original Cost |
6 |
60.00% |
$1.83
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$1.10
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Original Cost |
7 |
56.00% |
$1.83
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$1.03
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Original Cost |
8 |
52.00% |
$1.83
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$0.95
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Original Cost |
9 |
48.00% |
$1.83
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$0.88
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Original Cost |
10 |
44.00% |
$1.83
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$0.81
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Original Cost |
11+ |
40.00% |
$1.83
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$0.73
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Original Cost |
minimum value - $250 |
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$1.83
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| SPOTSYLVANIA |
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Original Cost |
1 |
50.00% |
$2.50
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$1.25
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Original Cost |
2 |
45.00% |
$2.50
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$1.13
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Original Cost |
3 |
40.00% |
$2.50
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$1.00 |
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Original Cost |
4 |
30.00% |
$2.50
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$0.75
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Original Cost |
5+ |
20.00% |
$2.50
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$0.50
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| *The "effective tax
rate" in each locality was computed by multiplying the assessment ratio
by the nominal tax rate. Unlike the tax on real estate which is based on the
fair market value of the property, the tax on machinery and tools can be based
on the original total capitalized cost or the depreciated cost (book value).
The original total capitalized cost of machinery and tools is usually greater
than the depreciated cost defined as original cost less depreciation. Thus,
comparisons of effective tax rates are valid only among localities using the
same assessment value. |
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| NON-MANUFACTURERS'
TAXES ON TANGIBLE PERSONAL PROPERTY IN VIRGINIA |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
|
Value
Used for Tax Purposes |
Assessment
Ratio (Percentage of this Value Taxable Based on Age) |
Nominal
Tax Rate Per $100 of Assessed Valuation |
Effective
Tax Rate Per $100* (Rates Cannot be Compared) |
| |
Original
Total Capitalized Cost |
Depreciated
Cost (Book Value) |
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Age of Machinery |
Percent |
| LOUISA |
|
X |
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1 |
75.00% |
$1.90
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$1.43
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X |
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2 |
70.00% |
$1.90
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$1.33
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(reduced by
10%/yr. thereafter, minimum is 10%) |
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$1.90
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| ORANGE |
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X |
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1 |
80.00% |
$2.20
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$1.76
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2 |
76.00% |
$2.20
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$1.67
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3 |
72.00% |
$2.20
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$1.58
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4 |
68.00% |
$2.20
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$1.50
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5 |
64.00% |
$2.20
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$1.41
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6 |
60.00% |
$2.20
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$1.32
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7 |
56.00% |
$2.20
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$1.23
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8 |
52.00% |
$2.20
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$1.14
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9 |
48.00% |
$2.20
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$1.06
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10 |
44.00% |
$2.20
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$0.97
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11+ |
40.00% |
$2.20
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$0.88
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| SPOTSYLVANIA |
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X |
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1 |
50.00% |
$5.00 |
$2.50
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2 |
45.00% |
$5.00 |
$2.25
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3 |
40.00% |
$5.00 |
$2.00 |
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4 |
30.00% |
$5.00 |
$1.50
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5+ |
20.00% |
$5.00 |
$1.00 |
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| *The "effective tax
rate" in each locality was computed by multiplying the assessment
ratio by the nominal tax rate. Unlike the tax on real estate which
is based on the fair market value of the property, the tax on
machinery and tools can be based on the original total capitalized
cost or the depreciated cost (book value). The original total
capitalized cost of machinery and tools is usually greater than
the depreciated cost defined as original cost less depreciation. Thus, comparisons of effective tax rates
are valid only among localities using the same assessment value.
Note: In some localities, the nominal tax rate and/or assessment
ratios may differ for tangible personal property used in research
and development and certain categories of tangible personal property,
i.e. computer equipment, airplanes. |
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| LOCALITIES IN
VIRGINIA EXEMPTING REHABILITATED |
| COMMERCIAL OR
INDUSTRIAL REAL ESTATE* |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
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SPOTSYLVANIA |
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| *Exemptions, eligibility,
and qualifications vary widely by locality. However, if allowed, a partial
tax exemption may be given for up to fifteen years for qualifying real estate
which has been substantially rehabilitated for industrial use. |
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| LOCALITIES IN VIRGINIA EXEMPTING OR PARTIALLY |
| EXEMPTING
CERTIFIED POLLUTION CONTROL PROPERTY* |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
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ORANGE |
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SPOTSYLVANIA |
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| *Certification is carried out by the
Virginia Department of Environmental Quality. |
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| LOCALITIES IN
VIRGINIA EXEMPTING OR PARTIALLY |
| EXEMPTING
CERTIFIED SOLAR ENERGY PROPERTY* |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
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SPOTSYLVANIA |
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| *If
allowed, the exemption may be permitted for a term of not more than ten
years. Certification of equipment,
facilities, or devices is made by the local building inspection and
permitting office. |
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| TAXES ON
AUTOMOBILES AND LIGHT TRUCKS IN VIRGINIA* |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
|
Items Used for Tax
Purposes |
Assessment Ratio
(Percentage of Value Taxable) |
Nominal Tax Rate
Per $100 of Assessed Valuation |
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Value |
Pricing Guides |
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| LOUISA |
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Average Trade-in |
A,B |
100.00% |
$1.90 |
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| ORANGE |
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Average Retail |
A,B |
100.00% |
$2.20
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| SPOTSYLVANIA |
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Average Retail |
A,B,I |
50.00% |
$5.00 |
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| *For
large trucks, the nominal tax rate is the same; however, the method of
assessment and/or the |
| assessment ratio may be different. |
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| The code for pricing guides is as follows: |
| A. N.A.D.A. Official
Used Car Guide |
| B. N.A.D.A. Official
Older Used Car Guide |
| I. DMV Reports |
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| LOCALITIES
IN VIRGINIA IMPOSING A MERCHANTS' CAPITAL TAX |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
|
Tax Rate Per
$100 |
Value Used
for Assessment |
Assessment
Ratio % |
Effective Tax Rate Per $100
(Rates not comparable) |
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| LOUISA |
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0.65 |
Original Cost |
100% |
0.65 |
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| ORANGE |
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0.4 |
Original Cost |
100% |
$0.40
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| LOCALITIES IN
VIRGINIA IMPOSING A BUSINESS LICENSE TAX* |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
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Type
of Business |
Tax
Rate per $100 of Gross Receipts |
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| SPOTSYLVANIA |
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Retailers |
0.10 |
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Mail order firms |
0.18 |
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Wholesalers and
distributors |
.025/$100 of gross purchases |
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Financial services |
0.29 |
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Business services |
0.18 |
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| *
Tax rates shown are based on the threshold amount for that locality. In addition some localities charge a fee
for the issuance of a license and/or charge different tax rates based on the
amount of the business' gross receipts or purchases. |
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| TAXES ON
INDUSTRIAL UTILITY BILLS IN VIRGINIA* |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| LOCALITY |
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Tax
Rate (per month) |
Type |
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| LOUISA |
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$1.72 + $0.014558/kWh |
Electric |
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$100
+ $0.082/CCF on first 10,000 CCF, $0.075/CCF on next 40,000 CCF, $0.07/CCF on
next 150,000 CCF, $0.069/CCF on excess ($180 max) |
Gas |
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| ORANGE |
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20% on first $75 |
Electric |
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20% on first $75 |
Telephone |
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| SPOTSYLVANIA |
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10% on first $300, 1%
on excess |
Electric |
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10% on first $300, 1%
on excess |
Gas |
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10% on first $300, 1%
on excess |
Telephone |
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| Note: State law prohibits localities from imposing
the consumer utility tax at a rate higher than 20 percent, unless
they had higher rates in effect on July 1, 1972, in which case
they may continue to impose the tax at the higher rates but may
not increase them. *The tax on telephone bills is limited to
local telephone service as prescribed in Section 58.1-3813 of
the Code of Virginia (leased telephone equipment is also subject
to the four and one-half percent state and local sales tax). Some
localities do not tax the entire electric bill. |
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| LOCAL TAX INCENTIVES IN
ENTERPRISE ZONES |
| (Calendar Year
2002 or Fiscal Year 2002-2003) |
| An
enterprise zone is an economically distressed area of a county,
city, or town, designated by the Governor.
Virginia provides three state tax incentives in addition
to incentive job grants to encourage business expansion and relocation.
They are: (1) a ten-year general income tax credit against a business's
state tax liability; (2) a real property qualified zone improvements
with a maximum amount not to exceed $125,000 over five years;
and (3) an investment tax credit against a business's state tax
liability for businesses investing $100 million and creating 200
jobs. Job grants for full-time
jobs created by business startups and expansions by existing firms
are in amounts equal to $1,000 per zone resident hired and $500
for non-zone residents hired per year. |
ORANGE |
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| - rehabilitated
real property tax exemptions. |
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For more information: |
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Orange |
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