Local Business Taxes


Town of Blacksburg

Unlike cities in Virginia, towns are political subdivisions of Virginia counties.  The Town of Blacksburg is a political subdivision of Montgomery County, Virginia and provides certain public services in addition to, or in lieu of, those provided by the County.  Consequently, businesses located within the incorporated Town of Blacksburg are subject to certain Montgomery County and/or Town of Blacksburg taxes. 

Descriptions of the major local business taxes levied within the incorporated Town of Blacksburg are as follows.

Real Estate Tax

The Code of Virginia, §§ 58.1-3200 through 58.1-3389, authorizes localities to .75+levy taxes on real property (land, including the buildings and improvements on it).

Real estate is assessed based on 100 percent of fair market value. Because of rising real estate values and periodic reassessments by localities (every four years in Montgomery County), actual assessment ratios usually are lower than 100 percent. The last assessment was done in 2007. 

Real Estate Tax rates are levied per every $100 of assessed value and are as follows:  

  Town of Blacksburg  $0.22
  Montgomery County  $0.89
   Total  $1.11

Effective Rate:  If a real estate property had an assessed value of $100, the total local tax levied upon the property by Montgomery County and the Town of Blacksburg would be $1.11 ($100 / 100 x $1.11).

 

For more information about the Town of Blacksburg real estate taxes, contact the Blacksburg Financial Services Department at (540) 961-1109.  For more information about the Montgomery County real estate tax, contact the Montgomery County Commissioner of Revenues' Office at (540) 382-5710.

 

Machinery & Tools Tax

Under § 58.1-3507 of the Code of Virginia, certain machinery and tools are segregated as tangible personal property for local taxation. According to the Code, the classes of machinery and tools that are segregated are those that are used for “manufacturing, mining, processing and reprocessing (excluding food processing), radio or television broadcasting, dairy, and laundry or dry cleaning.” 

Businesses subject to the machinery and tools tax (i.e. manufacturers) ARE NOT subject to tangible personal property tax on office equipment, furniture or fixtures.

The value of Machinery & Tools is assessed on a declining scale in Montgomery County. Therefore, the assessed value of Machinery & Tools actually declines over time.  The depreciation schedules for Machinery & Tools are as follows:  

         Machinery & Tools Depreciation Schedule

         Years 1 to 4: Property assessed at 60% of their purchase value.

         Years 5 to 7: Property assessed at 50% of their purchase value

         Years 8 and beyond: Property assessed at 40% of their purchase value.

 

Machinery & Tools tax rates are levied per every $100 of assessed value and are as follows:

  Town of Blacksburg  No Tax
   Montgomery County  $1.82
   Total  $1.82

Effective Rate:  If a property classified as Machinery & Tools was purchased for $100, the first year's tax on the property would be $1.09 ($100 x 60% / 100 x $1.82)

 

For more information about the Montgomery County machinery & tools tax, contact the Montgomery County Commissioner of Revenues' Office at (540) 382-5710.

 

Tangible Personal Property Tax 

Cities, counties, and towns may levy a tax on the tangible personal property of businesses and individuals pursuant to the Code of Virginia, §§ 58.1-3500 through 58.1-3521.  Items considered tangible personal property include, but may not be limited to, the following:

        Motor Vehicles (i.e. automobiles, trucks and motorcycles)

        Furniture & Fixtures and Equipment NOT APPLICABLE to manufacturers

        Programmable Computer Equipment

        Tractors, Trailers and Heavy Construction Equipment

 

Businesses subject to the machinery and tools tax (i.e. manufacturers) ARE NOT subject to tangible personal property tax on office equipment, furniture or fixtures.

 

The value of tangible personal property is assessed on a declining scale in Montgomery County. Therefore, the assessed value of tangible personal property actually declines over time.  The depreciation schedules for tangible personal property are as follows:

 

         Furniture & Fixtures and Equipment not applicable to manufacturers

         Year 1: Property assessed at 80% of purchase value.

         Year 2: Property assessed at 70% of purchase value.

         Year 3: Property assessed at 60% of purchase value.

         Year 4: Property assessed at 50% of purchase value.

         Year 5: Property assessed at 40% of purchase value.

         Years 6 and beyond: Property assessed at 30% of purchase value.

 

         Programmable Computer Equipment

         Year 1: Property assessed at 80% of purchase value.

         Year 2: Property assessed at 70% of purchase value.

         Year 3: Property assessed at 50% of purchase value.

         Years 4 and beyond: Property assessed at 10% of purchase value.

 

         Registered Motor Vehicles (i.e. automobiles, trucks and motorcycles)

         Automobiles that are registered with the Virginia Department of Motor Vehicles

         are valued according to the listed values in the National Automobile Dealers’

         Association’s Official Used Car Guide (NADA). If the model and year of the

         vehicle are not listed in the pricing guide, the value is based on following

         depreciation schedule:

 

        Unregistered Trucks, Tractors, & Trailers or Heavy Construction Equip.

         Year 1: Property assessed at 80% of purchase value.

         Year 2: Property assessed at 60% of purchase value.

         Year 3: Property assessed at 50% of purchase value.

         Year 4: Property assessed at 30% of purchase value.

         Year 5: Property assessed at 20% of purchase value.

         Years 6 and beyond: Property assessed at 10% of purchase value.

 

Tangible personal property tax rates are levied per every $100 of assessed value.  Tax rates for tangible personal property are as follows: 

 

  Town of Blacksburg No Tax
   Montgomery County  $2.55
   Total  $2.55

Effective Rate:  If a piece of computer equipment was purchased for $100, the first year's tax on the property would be $2.04 ($100 x 80% / 100 x $2.55)The

 

Personal Property Tax Relief Act of 1998 provides tax relief on the first $20,000 of value for qualifying vehicles. Qualifying vehicles include passenger vehicles, motorcycles and pickup and panel trucks with a gross weight of 7,500 pounds or less that are predominantly used for personal use and are either privately owned or leased where the lessee pays the personal property tax.

 

For more information about the Montgomery County tangible personal property tax, contact the Montgomery County Commissioner of Revenues' Office at (540) 382-5710.

 

Business, Professional, Occupational License (BPOL) Tax

Localities are authorized to impose a local license tax on businesses, professions, and occupations operating within their jurisdictions unless they already levy a tax on merchants’ capital.    

Business, Professional, Occupational License Tax is levied as a fee OR rate per every $100 of receipts or purchaseses .  Tax rates and Fees are as follows:

 

Montgomery County:  No Tax or Fee
Blacksburg Town: CLICK HERE

Merchants' Capital Tax 

The Code of Virginia, §§ 58.1-3509 and 58.1-3510, provides that localities may impose a local tax on merchants’ capital.  Merchants’ capital is defined as the inventory of stock on hand, daily rental passenger cars as defined in § 58.1-2401, daily rental property, and all other personal property (exempting tangible personal property not for sale as merchandise, which is taxed as tangible personal property), excluding money on hand and on deposit.

Merchants' capital is assessed at 20% of its purchase price.  Local tax rates are as follows: 

  Town of Blacksburg  No Tax
   Montgomery County  $3.05
   Total  $3.05

Effective Tax: If a merchant's capital, onhand, was purchased for $100, the first year's tax on the capital would be $0.61 ($100 x 20% / 100 x $3.05).

 

For more information about the Montgomery County Merchants Capital Tax, contact the Montgomery County Commissioner of Revenues' Office at (540) 382-5710

 

Consumer Utility Tax

The Code of Virginia, § 58.1-3812 and § 58.1-3814, authorizes localities to impose a tax on the consumers of public utilities.  Local Consumer Utility Tax Rates are as follows:

Montgomery County:  N/A
Town of Blacksburg: CLICK HERE

Meals Tax:

Localities may levy a meals tax on food and beverages offered for human consumption.  The meals tax is a flat percentage imposed on the price of a meal.  Local tax rates are as follows:

  Town of Blacksburg  6.0%
   Montgomery County  N/A
   Total  6.0%

Effective Tax:  If a meal were to cost $100, the total tax levied on the meal would be $6.00 ($100 x 6%).

 

For more information about the Town of Blacksburg Meals Tax, contact the Blacksburg Financial Services Department at (540) 961-1109

 

Transient Occupancy Tax

Localities may levy a tax on the charge for the occupancy of any room or space in hotels, motels, boarding houses, travel campgrounds, and other facilities providing lodging for less than thirty days.  The tax applies to rooms intended or suitable for dwelling and sleeping. Therefore, the tax does not apply to such rooms used for alternative purposes, such as banquet rooms and meeting rooms.

The transient occupancy tax is a flat percentage imposed on the charge for the occupancy of any room or space in hotels, motels, boarding houses, travel campgrounds, and other facilities providing lodging for less than thirty days.  Local tax rates are as follows:

 

  Town of Blacksburg  7.0%
   Montgomery County  N/A
   Total  7.0%

Effective Rate:  If a hotel room were to cost $100, the total tax levied on the purchase would be $7.00 ($100 x 7%).

 

For more information about the Town of Blacksburg Transient Occupancy Tax, contact the Blacksburg Financial Services Department at (540) 961-1109.

 

State Business Taxes

Business Taxes Lieved by the State of Virginia.  View

 

 **The information contained on this page is for informational purposes only. Please contact the Montgomery County Commissioner of Revenue or the Town of Blacksburg Financial Services Department regarding tax related information.

Page updated 4/22/2013

 

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