Requirements

• Every manufacturer owning as of January 1 of any year tangible personal property (machinery & tools) subject to this taxation are required to file an annual return with the Commissioner of Revenue.

• Every manufacturer leasing, renting, or borrowing as of January 1 of any year tangible personal property (machinery & tools) subject to this taxation are required to file an annual return with the Commissioner of Revenue.

• The annual return of such owned property needs to include the total of original cost by year of purchase.

• The annual return of such leased, rented, or borrowed property needs to contain additional information including, but not limited to, the name and address of the owner.

• The deadline for filing returns is March 1; a 10% penalty (minimum $2.00) will be imposed if filed late.

• Bills are sent out and payments are due -- half by June 5 and half by December 5 (non-prorated tax).

• Taxes are assessed on a sliding scale of 60%, 50%, 40% and 30%.

• The current tax rate is $2.00 per $100 of assessed value (subject to change each year).

• Vehicles and delivery equipment should be reported separately to the Personal Property Division of the Commissioner of the Revenue Office.

Request for Extension to File Business Tangible Personal Property Tax Return

Business Tangible Personal Property Tax Returns (Form 762B - Business Equipment; Form 762M - Manufacturers/Machinery & Tools; Form 762P - Processors) are due annually by March 1.  A form is available to request an extension to file the tax return.  If requested, such extension will be valid only until April 1.  If the tax return is not received by the extension date, an assessment - based on the immediately preceding year plus any auditing discoveries or based on an industry average for similar operations - will be made for billing purposes.  Additionally, if the requesting company does not meet the extended deadline, a 10% late filing penalty will be assessed.

Tax Code

§ 58.1-3507 and § 3518 of the Code of Virginia require:

Machinery and tools used in a manufacturing, winery, mining, water well drilling, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning, or laundry business located in Frederick County are subject to local taxation.