State & Local Taxes

Local Tax Rates

 
 

 Henry County

 
Real Estate Tax

$0.488 per $100

Machinery/Tools Tax (assessed at 97% year 1, 87% yr 2, 77% yr 3, 67% yr 4, 57% yrs 5+)

$1.48 per $100

Business Equipment (assessed at 97% year 1, 87% yr 2, 77% yr 3, 67% yr 4, 57% yrs 5+)

1.48 per $100

Computer Equipment (assessed at 71% year 1, 60% yr 2, 50% yr 3, 40% yr 4, 30% yrs 5+)

$1.48 per $100

 
 
 

 City of Martinsville

 
Real Estate Tax

$1.0621per $100

Machinery/Tools Tax (assessed at 90% year 1, 80% yr 2, 70% yr 3, 60% yr 4, 50% yr 5, 40% yr 6, 30% yr 7, and 25% thereafter)

$1.85 per $100

Business Equipment Tax (assessed at 90% year 1, 80% yr 2, 70% yr 3, 60% yr 4, 50% yr 5, 40% yr 6, 30% yr 7, and 25% thereafter)

$2.30 per $100

Computer Equipment (assessed at 70% in the current year, 50% yr 1, 30% yr 2, 15% yr 3, 10% yr 4, and 5% yrs 5+)

$2.30 per $100

Local taxes are paid for EITHER Henry County or the City of Martinsville, BUT NOT BOTH.  


Sales and Use Tax

Total tax of 5% (4% state tax and 1% local tax)

A seller is subject to a 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

The State of Virginia has NO TAX on: intangible property, manufacturers' inventory, and manufacturers' furniture, fixtures, and corporate aircraft


Corporate Income Tax

Tax rate of 6%, not raised in thirty years

Has a three-factor apportionment formula of payroll, property and sales (with sales double-weighted)

A double-weighted sales factor, 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