FAQs • Fredericksburg, VA • CivicEngage

I depreciate the value of my business personal property each year for tax purposes. How does that impact the way my return is filed with the City of Fredericksburg?: For our purposes, the tax is based on the original cost of the equipment. Each year we utilize a declining value scale, based on the year of acquisition, to adjust the value for taxation. Whether or not your business personal property is fully depreciated for income tax purposes is irrelevant.

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COR - Business Personal Property

1. What is considered Business Personal Property?: Virginia State Code Section 58.1-3503(17) defines business personal property as all tangible personal property employed in a trade or a business. Businesses are assessed on, but not limited to, office furniture, fixtures, equipment, machinery and tools, and computer equipment.

2. What is the tax rate for business personal property?: The tax rate is $3.40 per $100 of value.
The tax rate for Machinery & Tools is $0.80 per $100 of value. Specific criteria must be met in order to qualify for the Machinery & Tools rate. Please contact the Business Personal Property division at (540) 372-1004 to see if your business qualifies.

3. How do I file a business property return? What is the deadline?: Business personal property forms may be downloaded from this web site or may be obtained by calling (540) 372-1004. The deadline for filing business personal property forms is February 15 of each year. Any request for extension of time to file must be made in writing on or before February 15 each year. Once a request for extension is received, a written extension may be granted extending the filing deadline to March 15. Filing Forms

4. I work out of my home, do I still have to file?: Yes. The business personal property tax must be paid on all equipment used in the course of the business.

5. I depreciate the value of my business personal property each year for tax purposes. How does that impact the way my return is filed with the City of Fredericksburg?: For our purposes, the tax is based on the original cost of the equipment. Each year we utilize a declining value scale, based on the year of acquisition, to adjust the value for taxation. Whether or not your business personal property is fully depreciated for income tax purposes is irrelevant.

6. Is computer equipment valued the same way as other business equipment?: No. The useful life span of computers and peripheral equipment is less than other business equipment. We use an accelerated depreciation schedule in determining value. Business Property Depreciation Schedule

7. Do I have to file a new business property return each year?: Yes. In order to keep our records accurate, the information needs to be updated each year.