Commissioner of the Revenue - Machinery and Tools
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 the Return of Machinery and Tools by March 1 of each year, to avoid a 10% late filing penalty.
The property is assessed at various percentages of the total capitalized cost, excluding capitalized interest, depending on the year of acquisition. Tax bills are mailed by the Treasurer's Office after the return is processed by the Commissioner's Office, and are due to be paid on or before June 5 to avoid 10% late payment penalties and interest at a rate of 10% per year.
Certain M&T taxpayers who operate in the Technology Zone may qualify for certain rebates and other tax incentives. More information on the Technology Zone incentives.
Forms to download
Frequently Asked Questions
|Machinery and Tools (M&T) Tax
How do you determine who is a manufacturer or processor?
This is a determination made by the commissioner, based on a number of facts about the process and nature of your business activities. Taxpayers must first submit the "BCI" Form , with relevant documentation such as photos, process flow charts, or narratives for review. In some cases a site visit is necessary by our auditors. The nature and extent of any transformation during your process is most important in making this determination.
Can I get an extension of time to file my return?
Yes, but your request must come in writing and be faxed or postmarked by March 1. An extension will be granted for no longer than 60 days.
What if I went out of business?
You must notify our office in writing that you went out of business. If your M&T is on commercial property and is still available for use in business after you went out of business, you are responsible to continue to report it until it is removed or made unavailable for use in the business. Note that M&T tax is NOT pro-rated.
What about idle and unused equipment?
Machinery and tools may be reported as "Idle and Unused" if they (a) have been discontinued in use continuously for at least one year prior to January 1, 2017 or (b) on and after January 1, 2016, have been specifically identified in writing by the taxpayer to the commissioner of the revenue on or before April 1, 2016, that the machinery and tools would be withdrawn from service before January 1, 2017, not in use on January 1, 2017, and no reasonable prospect exists that the machinery and tools will be returned to use prior to January 1, 2018. Construction-in-progress, occasional, and seasonal use of machinery and tools would not constitute "idle and unused" property.
A detailed list of assets itemizing all property reported by capitalized cost and date of acquisition must be submitted with this return. Also, an explanation must be provided with this return if there is a difference between the property reported on this return and your 2016 return. This asset list should include a separate list of assets that were idle and unused continuously for one year prior to January 1, 2017.
You may also submit a specific list of machinery and tools that you anticipate will be removed from use not later than January 1, 2018, and expect the machinery and tools will not be used at all during 2018. This list must be submitted on or before April 1, 2017, for the machinery and tools to be declared idle and unused on the 2018 machinery and tools form.
Once any property identified as "idle and unused" is returned to use, please contact our office immediately for proper reporting guidelines.