Business Tangible Personal Property Tax
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 February 15. 1st half payments are due May 15. 2nd half payments are due November 15.
Tax Rate
The tax rate for all personal property (other than machinery and tools) is $3.40 per $100 of value. The tax rate for machinery and tools is $0.80 per $100 of value. Only specific businesses qualify for the machinery and tools rate. Please contact the Business Personal Property Section at 540-372-1004 for more information.
Business Motor Vehicles
These items are assessed using N.A.D.A. book values.
Furniture, Fixtures, Equipment
These items are assessed by using the original purchase price and original purchase date (as defined by the Virginia Attorney General). 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.
Ratio of Assessed Value:
| Acquisition Year | Assessment Ratio |
|---|---|
| 1st | 90% |
| 2nd | 80% |
| 3rd | 70% |
| 4th | 60% |
| 5th | 45% |
| 6th | 30% |
| 7th & Prior | 20% |
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.
Ratio of Assessed Value:
| Acquisition Year | Assessment Ratio |
|---|---|
| 1st | 80% |
| 2nd | 60% |
| 3rd | 40% |
| 4th | 20% |
| 5th | 20% |
| 6th | 20% |
| 7th & Prior | 20% |
Machinery and Tools
Machinery and tools used specifically for manufacturing, mining, processing or reprocessing, radio, television broadcasting, dairy, dry cleaning, laundry or car washing business are assessed at $0.80 per $100 of assessed value. The ratio of assessed value is illustrated below.
Ratio of Assessed Value:
| Acquisition Year | Assessment Ratio |
|---|---|
| 1st | 90% |
| 2nd | 80% |
| 3rd | 70% |
| 4th | 60% |
| 5th | 45% |
| 6th | 30% |
| 7th & Prior | 20% |