Opening a New Business in Chesterfield County - Brochure (PDF)
A guide to License & Tax Requirements. Economic Development has launched a site for small business needs. Visit "My Business Starts Here".
Business Tangible Personal Property
Most persons or corporations owning tangible personal property (other than motor vehicles, trailers, boats, or aircraft) that is used or available for use in a trade or business ( including processing businesses, but not manufacturing *) and located within Chesterfield County as of January 1 must file the Return of Business Tangible Personal Property("BPP") by March 1 to avoid a penalty. Business personal property tax, unlike that of vehicles, is NOT pro-rated.
Business License (BPOL)
Most businesses located within Chesterfield County are subject to the Chesterfield County business license tax. This is a tax on the privilege of engaging in a licensable business activity within the County, and it is calculated upon gross receipts (or gross purchases in the case of wholesale merchants).
Machinery and Tools (Manufacturing)
All persons or corporations owning machinery and tools ("M&T") that are used or available for use in manufacturing, mining, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning or laundry businesses and located within Chesterfield County as of January 1 must file by March 1 of each year, to avoid a penalty.
Chesterfield County has two enterprise zones along the Route 1/301 corridor. The state and local governments entered into a twenty-year partnership designed to offer a package of incentives to encourage business expansion and recruitment within the Zones.
Transient Occupancy (Hotels/Motels)
For persons obtaining lodging from any public or private hotel, inn, hostelry, tourist home or house, tourist cabin, camping grounds, motel, rooming house or other lodging place within the county there is imposed a lodging tax in the amount of eight percent of the total amount paid for room rental for lodging; however, this tax shall not apply to rooms rented for lodging for continuous occupancy by the same individual or group for 30 days or more.
The Chesterfield County Code requires any certified short-term rental business to collect from the lessee, at the time of rental, a tax on the gross rental receipts (excluding state and local sales taxes). The law separates short-term rental businesses into two categories depending on the type of property that is primarily rented. The tax rate is determined by the category for which the business qualifies and has been certified.
A tax is imposed on consumers of telephone, electric, and gas utility services. Taxes are collected and remitted by the last day of the month following the month of collection (electric and gas service) or billing (telephone service).
A tax is imposed on consumers of electricity and natural gas based on consumption. Of this tax a portion is designated as local consumption tax. These taxes are collected and remitted by the last day of each month following the month of collection.
Visit the Department of Real Estate Assessment site.
Public Service Company Property
A tax levy based on that portion of real estate and tangible personal property of public service corporations where the assessed values are determined by the State Corporation Commission. The PSC property is taxed at the current real estate rate per Section 58.1-2606(A). On automobiles and trucks belonging to such public service corporations the tax shall be $3.60 on every $100.00 of assessed value.
The State Tax Department controls the Bank Franchise Tax. The localities are responsible for checking certain items on the returns filed by the banks headquartered in Chesterfield County. In addition, the localities are responsible for billing the banks for its portion of the total tax for all banks, which have branches in the particular locality and or are headquartered in the locality.
Retail Sales and Use
Effective September 1, 2004, the rate of the Virginia Retail Sales and Use Tax will increase from 4% (3% state and 1% local) to 5% (4% state and 1% local). In addition, the sales and use tax rate for vending machine dealers will be increased effective September 1, 2004 to 6% (5% state and 1% local) of wholesale purchases for resale.
All entities conducting business in the Commonwealth of Virginia must register their business with the Virginia Department of Taxation (TAX). You can register online at www.tax.virginia.gov . To obtain Employer ID Numbers (EIN) please visit www.irs.gov .
Frequently Asked Questions
This is a list of most commonly asked questions by subject matter.