Opening a New Business in Chesterfield County - Brochure (PDF)
A guide to License & Tax Requirements

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 2 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 2 of each year, to avoid a penalty.

Enterprise Zone
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.

Short-term Rental
The Chesterfield County Code §9-181 (Code 1978, §8-60) and §9-184 (Code 1978, §8-63) require a certified short-term rental business to collect from the lessee, at the time of rental, a tax of 1% of the gross rental receipts excluding state and local sales taxes.

Consumer Utilities
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).

Consumption
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.

Real Estate
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 levy shall be $1.07 on every $100.00 of the assessed value.

Bank Franchise  
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 4½% (3½% 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.

Frequently Asked Questions
This is a list of most commonly asked questions by subject matter.