Business Taxes, Rates and Appeals
Business Tax Rates
Chesterfield County business tax rates are as follows:
Business Professional and Occupational License (BPOL) Tax
No license tax is levied on a business whose base year gross receipts, or gross purchases for wholesale merchants, were less than $500,000. The amount of gross receipts shall be reduced by $500,000 for calculating the applicable tax. View additional Business License information.
|Tax per $100 Gross Receipts
|Amusement Machine Operator
|Direct Seller - Retail
|Direct Seller - Wholesale
|Merchant Placing Vending Machines
|Real Estate Service
Flat Fee License Tax
Every person engaged in a licensable business shall pay an annual fee if the total gross receipts, or gross purchases for wholesale merchants, from the licensable activity are $10,000 or more, but less than $500,000, during the base year.
|Alcoholic Beverage - beer and wine
|Alcoholic Beverage - 1-100 mixed beverages
|Alcoholic Beverage - 101-150 mixed beverages
|Alcoholic Beverage - More than 150 mixed beverages
|Itinerant Merchant - edible perishables
|Itinerant Merchant - goods, wares, merchandise
|Night Club Owner
|Peddler - up to 30 minutes in one place
|Peddler - up to 8 hours in one place
|Vendor Event - minimum 5 vendors
Business Tangible Personal Property Tax
Every taxpayer who owns, leases, rents or borrows tangible personal property that was used or available for use (even partial use) for a business in Chesterfield County on Jan. 1, is to report such property by March 1.
Property must be reported and itemized at its actual cost before any allowance for trade-in or depreciation. Cost figures are totaled by year on a calendar year basis. Yearly cost-figures are multiplied by varying percentages to arrive at the assessed value.
|Furniture, Fixtures and Equipment
|Machinery and Tools
|Wild or Exotic Animals
Other Local Excise Taxes
The collected taxes shall be held in trust by the person until remitted as required.
|Short-Term Rental - Heavy Equipment
|Short-Term Rental - Regular Equipment
Business Personal Property
Virginia tax code requires all business owners, including home-based businesses, to file a business tangible personal property return and current asset list by March 1 of each year. Business tangible personal property returns may be submitted through our Citizen Portal and also by mail. Returns, whether submitted through the Citizen Portal or mail, must be filed in the Commissioner’s Office or postmarked by March 1 of each year. Any return received or postmarked after March 1 will receive a late filing penalty.
Required Property for Filing
All business tangible personal property owned and used (or available for use) as of Jan. 1 is subject to taxation. This includes any fixed assets, furniture, fixtures, tools or equipment, excluding supplies (such as pens and paper) or real estate. Vehicles should not be included on this return.
Important Dates and Deadlines
Business Personal Property Returns must be filed annually by March 1. Returns filed after March 1 are assessed a late filing fee. Businesses that do not file a return receive a statutory assessment.
Business Personal Property extension request must be submitted by March 1 of each year. An extension will be granted for no longer than 60 days (May 1). Requests may be submitted by email, fax, or mail.
Business tangible personal property taxes are billed annually and are due to be paid to the Chesterfield County Treasurer by June 5 of each year. Additional information regarding Chesterfield’s tax deadlines is available on the tax calendar.
Annual Filing Requirements
Virginia 762 Forms Not Accepted
You must include the following with your business tangible personal property return:
- An itemized asset list of each piece of business property or equipment that includes the original purchase price, a brief description and the year of purchase.
- For each piece of business property or equipment on the asset list, that has been disposed (sold, junked or no longer leased) and/or moved out of the county, include the original purchase price, a brief description, the year of the purchase and the disposal/move out date.
- A copy of the depreciation schedule (Form 4562).
- If any property is leased, rented or borrowed from others, provide an asset listing including the name and address of the owner, start and end dates of the lease, description, original cost, and purchase option (bargain buyout or fair market value).
- If you do not own any business tangible personal property, you must still file a return. You will enter "none" in sections 1 and 2 on the return and provide an explanation as to how your business is conducted without the use of property.
Businesses Closed, Moved or Change in Contact Information
If the business closed or moved out of Chesterfield County, notify the Commissioner of the Revenue’s office in writing. Please include the business name, business location, account number, and date the business closed or moved out of the county.
If there is a change in the mailing address or any of the contact information (phone number or email address), please indicate the change on the return or contact the Commissioner of the Revenue’s office.
Businesses may be responsible for additional specialty taxes, including the Bank Franchise Tax, consumer utilities taxes, consumption utilities taxes and public service company property taxes.
The principal office of every bank or trust company organized by or for the authority of the laws of the United States doing business or having a charter which designates within the state as the place of its principal office, must file Form #64 with the Commissioner of the Revenue. The tax applies to the next capital and payment is due on or before June 1 of each taxable year.
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.
Per Code of Virginia § 58.1-3814, 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). This tax can be filed in the Citizen Portal or by completing and returning the Consumer Utilities Tax Return (PDF).
Per Code of Virginia § 58.1-2900, 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. This tax can be filed in the Citizen Portal or by completing and returning the Consumption Tax Return (PDF).
Public Service Company Property
A tax levy based on that portion of real estate and tangible personal property of public service corporations (PSC) 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 of assessed value.
Machinery and Tools
The Code of Virginia § 58.1-3507 provides that Machinery and Tools (M&T) are limited to property used directly in manufacturing, mining, water well drilling, processing or reprocessing, radio or television broadcasting, dairy, and dry cleaning or laundry businesses. The property is assessed at various percentages of the total capitalized cost, excluding capitalized interest, depending on the year of acquisition.
To determine who is a manufacturer or processor, taxpayers must complete a Business Classification Information (BCI) sheet (PDF) explaining the process and nature of your business activities. Process flow charts, pictures and site visits may also be used for a determination. Businesses classified as a processor will be required to file a return of business tangible property form as well.
A detailed itemized list must be included with the return, including all assets that have been sold, deleted, disposed of or idle. Machinery and tools may be reported as "Idle and Unused" if:
- They have been not in use continuously for at least one year prior to Jan. 1 of the current tax year.
- From Jan. 1 to April 1 of the current tax year, the M&T have been specifically identified in writing by the taxpayer to the Commissioner of the Revenue as expected to be withdrawn from service before Jan. 1 of the next tax year. Additionally, no reasonable prospect exists that the machinery and tools will be returned to use prior to Jan. 1 of the year following the next tax year.
Taxes and Tax Incentive
Machinery and Tools taxes are not prorated and must be filed on or before March 1 of each year, to avoid a 10% late filing penalty. An extension may be requested and submitted by March 1 to extend the deadline to May 1. Tax bills are mailed after processing and are to be paid on or before June 5 to avoid 10% late payment penalties and interest at a rate of 10% per year.
- 2024 Return of Machinery and Tools (PDF)
- Machinery and Tools Business Classification Information (BCI) (PDF)
- 2023 Return of Machinery and Tools (PDF)
- 2022 Return of Machinery and Tools (PDF)
- 2021 Return of Machinery and Tools (PDF)
- 2020 Return of Machinery and Tools (PDF)
- 2019 Return of Machinery and Tools (PDF)
- 2018 Return of Machinery and Tools (PDF)
Per the Code of Virginia § 58.1-3510.4, Chesterfield County's short-term rental tax is a tax collected by a business/person certified to engage in the short-term rental of property. Chesterfield County 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 sale taxes) for periods of 92 consecutive days or less. The term short-term rental property does not include trailers or other tangible personal property.
Application and Certificate
To be certified as a short-term rental business, the taxpayer must submit an application for each new business location in Chesterfield to the Commissioner of the Revenue within 30 days of the date the business began. The taxpayer must submit a return for re-certification for each business location each year by Jan. 31. The initial application and re-certification are available in the Citizen Portal. Additionally, the Commissioner's Office will mail a short-term rental application and tax returns annually.
Certified businesses will receive a certificate which must be displayed in each qualified location. Rental businesses that are certified short-term rental businesses have a business license classification for rental revenue of "retail merchant" (as opposed to "personal service" for non-certified rental businesses). Given this classification, short-term rental businesses' rental inventory is no longer subject to the business tangible personal property tax.
Tax Rates and Deadlines
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 qualified for and has been certified. The two categories are as follows:
- Regular Equipment Short-Term Rental covers most short-term rental businesses and includes businesses involved in the rental of personal property, such as inflatables, signs, sporting goods, DVD’s, video games, party/catering equipment and similar items. The tax rate for this category is 1% of gross rental proceeds. View the Quarterly Tax Return Regular Equipment (PDF).
- Heavy Equipment Short-Term Rental is for businesses that rent heavy equipment property, such as construction machinery and equipment, welding equipment, carpentry equipment, agricultural machinery, carpet cleaning equipment, floor sanding or waxing machines, lawnmowers, materials handling equipment, power washers, and scaffolding. The tax rate for this category is 1.5% of gross rental proceeds. View the Quarterly Tax Return Heavy Equipment (PDF).
The collected tax is held in trust by the business and remitted to the Commissioner of the Revenue on a quarterly basis with the quarterly return being filed on or before the 15th day of the month following the quarters end. Payments are due on or before the last day of the month following the end of the quarter:
|Short-Term Collection Period
|Report due April 15
|Payment by April 30
|January - March
|Report due July 15
|Payment by July 31
|April - June
|Report due Oct. 15
|Payment by Oct. 31
|July - September
|Report due Jan. 15
|Payment by Jan. 31
|October - December
A late filing penalty of 10% or $10, whichever is greater, will be assessed if the return and remittance are not postmarked by the quarterly deadline. Interest at the rate of 10% per year, calculated monthly beginning on the first day following the date upon which the tax was due, will be added to the tax and penalty.
Transient Occupancy and Tourism Improvement District
Per the Code of Virginia § 58.1-3819, Chesterfield imposes an 8% transient occupancy tax on all hotels, motels, boarding houses, travel campgrounds and other facilities offering guest rooms rented out for continuous occupancy for fewer than 30 consecutive days. In addition, Code of Virginia § 15.2-2413.1-11 states that establishments with 41 rooms or more are responsible for a 2% tourism improvement district (TID) fee that can be collected from the guest or paid by the hotel. Guests that stay 30 or more consecutive days are not required to pay the transient tax or tourism fee.
Monthly Filings and Payments
After obtaining your county Business Professional and Occupational License (BPOL), transient occupancy taxes, as well as the TID fees for qualifying properties, shall be remitted monthly to the county. Filings and payments should be done through the Citizen Portal or using the Virginia Local Transient Occupancy Tax Return (PDF) by the due date. Filings and payments are due by the 20th of each month, following the month in which the reported gross receipts and occupancy tax and tourism fees were collected.
Overcollection of Tax
If a tax/fee was collected in error, it should be returned to the rightful payer who was improperly charged. If this is not possible, the law requires that the overcollection must be remitted to the county with the normal monthly remittance, not retained by the operators of lodging establishments as additional income.
Late Payments and Penalties
If a filing and/or payment is received after the due date, only the official submission timestamp from the citizen portal or postmarks from U.S. Postal Service or overnight courier are valid date stamps. Postage meter dates will not be accepted.
Returns remitted after the monthly due date are subject to a 10% penalty and interest for each additional 30 days or fraction thereof, with a minimum penalty of $10.
Business Tax Appeals and Compliance
Any taxpayer may submit an appeal regarding their tax assessment to the Commissioner of the Revenue, in accordance with VA Code §58.1-3980.
Any taxpayer wishing to seek a review of an assessment of local business tax, including but not limited to, business license tax, business tangible personal property tax, and machinery and tools tax, may appeal to the Commissioner of the Revenue to examine such assessment, in accordance with VA Code §58.1-3983.1.
Appealing your assessment does not guarantee a reduction nor does the filing of an appeal relieve the payment of the tax bill by the respective due date. If the assessment is later reduced as a result of an appeal and the original bill was paid, the county will issue a tax refund, provided all other taxes are current.
Appeal Filing Instructions
Appeals must be filed within at least one year of the last day of the tax year for which such assessment is made, or within one year of the date of the appealable event (business license assessments) or date of assessment (business tangible personal property and machinery and tools assessments), whichever is later. Please refer to the Virginia Department of Taxation Guidelines for Appealing Local Business Taxes for more information on the process for submitting an appeal.
If you believe that your assessment is incorrect or that a filing error was made, submit a written appeal to the Office of the Commissioner of the Revenue in person, by emailing the Commissioner of the Revenue, faxing to 804-796-3236 or by mail to:
Commissioner of the Revenue
P.O. Box 124
Chesterfield, VA 23832-0908
Appeal Required Information
All written requests must sufficiently include:
- Taxpayer Information (name, address, phone number, account number, email address)
- Tax form for the corrected assessment
- Reason for the appeal
- Tax periods covered by the challenged assessments
- Grounds upon which the taxpayer relies
- Remedy sought
- Any other facts relevant to the taxpayer's contention
Jenefer S. HughesCommissioner of the Revenue, MBA, ACA, MCR
Commissioner of the Revenue
9901 Lori Road
Building 38, Room 165
Chesterfield, VA 23832
9901 Lori Road Building 38, Room 165 Chesterfield VA 23832
P.O. Box 124
Chesterfield, VA 23832
Administration, Individual Personal Property, Income Tax, Tax Relief
Business License, Business Tangible Personal Property
Monday - Friday
8:30 a.m. - 5 p.m.