Machinery and Tools Property Tax
Due date: May 1 of each year
Tax rate:$2.30 per $100 of assessed value
Description: Localities in Virginia are authorized by the Code of Virginia to segregate certain machinery and tools for local taxation. The machinery and tools tax is levied on the machinery and tools that are used for manufacturing, mining, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning or laundry business. The tax rate on machinery and tools may not be higher than that imposed on other classes of tangible property.
How does it work: A tax of two dollars and thirty cents ($2.30) on each one hundred dollars ($100.00) of assessed value is levied and collected each year on all machinery and tools. In assessing the value of such machinery and tools, the Director of Finance is authorized and directed to require that each person who owned any taxable machinery or tools on the first day of the tax year makes a return under oath of the original price, the year purchased (owned as of January 1) and the assessed value as determined by applying the depreciation schedule of such machinery and tools.
Appeals: Taxpayers/property owners can appeal assessments to the Director of Finance and/or to the Richmond Circuit Court.
"Idle Property": Legislation recently enacted by the Virginia General Assembly requires those with machinery and tools that will be "idle" for the entire 2010 tax year to report such property to the City by April 1, 2009. A report of such property for the 2009 tax year was due April 1, 2008.
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