Commissioner of the Revenue

Current Tax Rates

The City of Fredericksburg assesses taxes on real property and personal property.  City businesses are subject to a business license tax, business tangible personal property tax as well as local options excise taxes including meals, lodging, admissions, cigarettes, and short-term rental.

Real Estate Taxes

Currently, real estate is reassessed every two (2) years.
The real estate tax rate (effective July 1, 2012 through June 30, 2013) is 74¢ per $100 of assessed value.  The real estate assessments are billed on a fiscal year basis, July 1 through June 30.  The bill for the first half of the fiscal year (July 1 through December 31) is due November 15.  The bill for the second half (January 1 through June 30) is due May 15.

Click HERE to learn how to qualify for a tax credit for improving residential property in the Historic District and commercial property elsewhere in the City or contact the Real Estate section of the Office of the Commissioner of the Revenue at 540-372-1207.

Personal Property Taxes

Currently, the personal property rate is $3.40 per $100 of assessed value.  The assessed value is determined using N.A.D.A book values.  The personal property assessments are billed on a calendar year basis.  The bill for the current year is due May 15.

Summary of Business Tax Rates

Meals Tax                         6 %  (monthly)
Lodging Tax                       6 % (monthly)
Admissions Tax                 6 % (monthly) (as of July1, 2010)
Short-term Rental Tax        1 % (quarterly)

Business Tangible Personal Property

         $3.40 per $100 of assessed value (annual)

Machinery & Tools (see restrictions below)

              $0.80 per $100 of assessed value (annual)

Real Estate

         $0.74 per $100 of assessed value (annual)

Business License 

          Varies – see below (annual)

Business Tangible Personal Property Taxes

The City of Fredericksburg defines business personal property as all tangible personal property employed in a trade or business.  Property includes but is not limited to office furniture, fixtures, equipment, machinery and tools, and computer equipment.  Situs for business tangible personal property is determined January 1 of the tax year.  Business personal property is not pro-rated. Boats, trailers, motor homes, and motor vehicles used more than 50% for business use are not eligible for personal property tax relief.  Tangible personal property returns are mailed to established businesses each year, and must be filed by March 15.  1st half payments are due May 15 and November 15.

Business Motor Vehicles, Boats, Trailers, and Mobile Homes

These items are assessed using N.A.D.A. book values.

Furniture, Fixtures, Equipment, Machinery and Tools

These items are assessed at original cost of acquisition.  Tangible personal property includes all items that can be removed without significant damage to the real property.  The ratio of assessed value is illustrated below. 

 
Computer Equipment and Peripherals

Qualified computers and associated peripheral equipment are assessed at the original cost of acquisition, but receive accelerated depreciation.  The ratio of assessed value is illustrated below.

Machinery and Tools

Machinery and tools used specifically for manufacturing, mining, processing or reprocessing, radio, television broadcasting, dairy, dry cleaning, or laundry business are assessed at .80 cents per $100 of assessed value.  The ratio of assessed value is illustrated below.

Business License

Each business operating in the City of Fredericksburg is required to obtain a business license.  Zoning approval is required before a business license may be issued.  Once this approval is obtained, and before you open the business, contact the Office of the Commissioner of the Revenue to obtain a business license application and the applicable rate for the business license. 

When you call, please have these items ready:

After your business license has been processed, the paid receipt from the Office of the Treasurer will provide proof of your license.  Business license renewals will be sent out each year.  Renewal applications must be filed by March 1 and payments made by March 15.  Licenses are obtained at the beginning of each year. 

Calculating the Business License for the First Year

The gross receipts are an estimate of the revenue that will be earned by the business until December 31 of the year in which the business opens.  See the illustration below for the calculation of the tax.  After the close of the year, the estimate must be adjusted to reflect the actual gross receipts received.

Calculating the Business License for the Second Year

The gross receipts for the second year are an estimate of the revenue that the business will earn for an entire year.  See the illustration below for the calculation of the tax. After the close of the year, the estimate must be adjusted to reflect the actual gross receipts received.

Calculating the Business License for the Third Year

The gross receipts for the third year are based on the ACTUAL gross receipts for the entire second year.  See the illustration below for the calculation of the tax.

Examples of Calculations 

Gross Receipts < $50,000    
My Gross Receipts were $48,723:
Since my Gross Receipts were less than $50,000, my business license tax is $25.

Gross Receipts
> $50,000 but < $200,000 
My Gross Receipts were $165,722:
Since my Gross Receipts were more than $50,000 but less than $200,000, I pay $25 on the first $50,000 of my gross receipts. This leaves $115,722 ($165,722 less $50,000).  Since I’m a professional, my rate is .58 per $100.  I multiply $115,722 times .58, then divide by 100, which equals $671.19.  So my total tax is $671.19 plus $25 for a total payment of $696.19.

Gross Receipts > $200,000
My Gross Receipts were $495,327. 
I’m a professional and my rate is .58 per $100.  So I multiply $495,327 by .58 then divide by 100, which equals $2,872.90.

For Further Questions on All Taxes:

Business License and Business Tangible Personal Property Taxes:

Office of the Commissioner of the Revenue
Phone:  (540) 372-1004
Fax: (540) 372-1197

Stop by the office:
715 Princess Anne Street; Room 102
Fredericksburg, VA  22401

Mailing:
P.O. Box 644
Fredericksburg, VA  22404-0644

Real Estate Taxes:

Office of the Commissioner of the Revenue
Phone:  (540) 372-1207
Fax:  (540) 372-1197

Stop by the office:
715 Princess Anne Street; Room 107
Fredericksburg, VA  22401

Mailing:
P.O. Box 644
Fredericksburg, VA  22404-0644