Revenue Division - Business Information
Edward W. Trice - Division Director
Bank Franchise
The bank franchise tax is an annual tax measured
by the net capital of a bank. A bank has been defined as "any
incorporated bank, banking association or trust company organized
by or under the authority of the laws of the Commonwealth
and any bank or banking association organized by or under
the authority of the laws of the United States...." The tax
is 80 percent of the state tax rate of taxation for each $100.00
of the net capital. Banks having a branch or principal office
in Henrico County are required to file a Bank Franchise Tax
Return. If the location is not a principal office, but is
a branch of the principal office, the tax is apportioned as
provided by the Code of Virginia.
Business License
Virtually all businesses must purchase a business license
before commencing operation in Henrico County (the County has
no Merchants' Capital Tax). The specific tax rate varies depending
on the nature of the business. In most instances the tax rate
is applied to gross receipts. Licenses
expire December 31st of each year and must be
renewed annually by March 1st.
Business Tangible Personal Property
Virtually all businesses must file on all furniture, fixtures,
tools, signs, and all equipment used in the conduct of business.
The base tax rate applicable to this class of property is currently
$3.50 per $100 of assessed value. Various depreciation schedules
are applied to arrive at the fair market value of the assets
being reported (depending upon the classification of the item).
Cable
In consideration of the granting of a franchise to use the
public ways for the operation of a cable television system,
five percent of its annual gross revenues during the period
of its operation under the franchise; Sec. 7-62 of the Henrico
County Code.
| Phone number: |
804-501-7329 |
| Relevant code: |
Henrico Code §7-62 / State of Va. Code §58.1-3813 |
Daily Rental Property Tax (Short Term)
The Daily Rental Property Tax is a 1% tax imposed on the gross
receipts generated from the rental of owned tangible personal
property. Annual certification
is issued upon application by qualified merchants, defined
as those who derive at least 80% of their gross rental income
from rentals made for a period of 92 days or less.
This tax is collected from the consumer in a manner similar
to that used in the collection of sales tax and is remitted
to the County quarterly, in lieu of the payment of business
personal property tax on the rental inventory. Rental income
from property required to be licensed with DMV, Game and Inland
Fisheries, or Aviation is not subject to this tax.
Daily Rental Vehicle
The Virginia Department of Motor Vehicles administers the
Daily Rental Tax. These businesses are certified and registered
by DMV. Registered businesses collect a tax of 4.0% of the
gross proceeds on the vehicle rental and remit the tax to DMV,
who in turn remits the tax quarterly. After the County confirms
that all the businesses listed are in the County, DMV then
processes an ACH Transfer for funds into Henrico County's account.
| Relevant code: |
State of Va. Code §58.1-2400 |
Machinery & Tools
A tax is levied on the machinery and tools used in the manufacturing,
processing or reprocessing, mining, radio or television broadcasting,
dairy, dry-cleaning, or laundry business. The Machinery and
Tools Tax Rate is currently $1.00 per $100 of assessed value
(which is determined by applying a depreciation schedule to
arrive at the fair market value).
Off-Track Betting (Pari-Mutual Betting
Fees)
The tax began in Henrico County December 10, 1996, with the
opening of the OTB facility at 4700 W. Broad Street, which
is split by the County/City line. Henrico receives 1/8% of
all win, place, show wagers and ¼% of all exotic wagers
placed on live in state racing and at the OTB Parlor. (Note:
the Henrico percentages reflect 50% of those stated in the
Code because the parlor is located on the County/City line.)
Within five days of each race, Colonial Downs faxes a report
to the Accounting Division detailing the daily race handle
and the monies being remitted to Henrico via an ACH Transfer.
The auditor for the Virginia State Racing Commission reviews
the daily faxes to ensure compliance.
| Phone number: |
804-501-7329 |
| Relevant code: |
State of Va. Code §59.1-365 |
Public Service Corp.
Companies designated as public service corporations, e.g.,
interstate pipelines, railroads, telegraph/telephone, etc.
are billed for the first installment based on one-half of their
Equalized Property value. The second installment billing reflects
the actual assessment as determined by the Department of Taxation
and State Corporation Commission. In the second installment
payment, vehicles are billed and district rates are applied.
Sales & Use
Retailers collect 5.0% Retail Sales tax imposed on retail
consumer sales. The State portion of this levy is 4.0% and
the County portion is 1.0%. No County tax, other than the
Sales Tax noted above, is levied on the following: Admissions,
Cigarettes, Meals, or Restaurant Sales.
Transient Lodging
All motels and hotels in Henrico County collect a local transient
lodging tax of 8% on room rental charges.
Utility Taxes
Henrico
Code §20-251 thru 20-280/
Electric / Form/ State of Va. Code 58.1-2900
$0.70 plus the rate of $0.007537 per kilowatt hour delivered
not to exceed a maximum monthly tax of $1.00 (Residential).
$1.15 plus the rate of $0.00713 per kilowatt hour delivered
not to exceed a maximum monthly tax of $10.00 (Commercial).
$0.70 plus the rate of $0.007537 per kilowatt hour delivered
not to exceed a maximum monthly tax of $1.00 per dwelling unit
(multi-family/apartments).
$1.15 plus the rate of $0.007603 per kilowatt hour delivered
not to exceed a maximum monthly tax of $10.00 (Industrial).
Natural Gas / State of Va. Code §58.1-2904/
25% of first $625, 5% of bill over $625 (paid to City of Richmond).
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