• Real Estate: $0.54 per $100 market value
• Business Equipment: $1.19 per 71% of the capitalized cost
• Machinery & Tools: $1.19 per 71% of the capitalized cost
City of Martinsville Taxes
• Real Estate: $1.08 per $100
• Business Equipment: $2.30 per $100
• Machinery & Tools: $1.85 per $100
Corporate Income Tax
• Tax rate of 6%, not raised in thirty years; one of the lowest in nation
• Three factor apportionment formula of payroll, property and sales (with sales double-weighted, which has the effect of reducing tax liability for firms with significant sales to customers outside Virginia)
• Tax credits for job creation and investment in economically stressed areas
• No franchise or net worth tax
Sales and Use Tax
• Total tax of 5 percent (4 percent state tax and 1 percent local tax)
• Seller subject to sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property
• Manufacturers do not pay tax on purchases used for production; distributors do not pay tax on items purchased for resale
• State of Virginia has NO TAX on: intangible property, manufacturers’ inventory, and manufacturers’ furniture, fixtures, and corporate aircraft
For more information on Business Taxes, please see A Virginia Guide: Local Taxes on Business.
