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.

Classification/ActivityTax per $100 Gross Receipts
Amusement Machine Operator$0.20
Business Service$0.20
Commission Merchant$0.20
Computer Service$0.03
Direct Seller - Retail$0.19
Direct Seller - Wholesale$0.05
Financial Service$0.20
Merchant Placing Vending Machines$0.19
Merchandise Broker$0.20
Personal Service$0.20
Professional Service$0.20
Real Estate Service$0.20
Repair Service$0.20
Retail Merchant$0.19
Utility Service$0.50
Wholesale Merchant$0.10

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.

Specialty Taxes

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.

Bank Franchise

Code of Virginia §58.1-1201 provides the definition of a “Bank” for the purpose of the Virginia Bank Franchise Tax.

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.

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.

Eligibility Requirements

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.

Short-Term Rental

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.

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.

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