State & Local Taxes

Local Tax Rates

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

 

Henry County

Tax

Cost per $100

Real Estate Tax

$0.555

Machinery/Tools Tax
97% yr 1, 87% yr 2, 77% yr 3, 67% yr 4, 57% yrs 5+

$0.555

Business Equipment
97% yr 1, 87% yr 2, 77% yr 3, 67% yr 4, 57% yrs 5+

$1.55

Computer Equipment
71% yr 1, 60% yr 2, 50% yr 3, 40% yr 4, 30% yrs 5+

$1.55

 

City of Martinsville

Tax

Cost per $100

Real Estate Tax

$1.0621

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

$1.85

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

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

 


Sales and Use Tax

Total tax of 5.3% (4.3% 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