Taxes

James City County levies one of the lowest tax rates in the Hampton Roads and Richmond regions. Equally as important, our tax rates are one of the more stable in the region, as well. The real estate tax rate has decreased 11.5 percent to $0.77/$100 since 2002 and the personal property tax rate has remained constant for the last 20 years at $4.00 per $100.

The Commonwealth of Virginia has maintained a 6 percent state corporate income tax since 1972. Virginia has a three-factor apportionment formula of payroll, property and sales (with sales double-weighted). The double-weighted sales factor has the effect of reducing tax liability for firms with significant sales to customers outside Virginia.

Local Commercial & Industrial Taxes 2008-09

Real Estate

$0.77 / $100 at 100% Fair Market Value

Machinery & Tools (Business Personal Property)

$4.00 / $100 at 25% of Capitalized Cost (Effective Tax Rate $1.00/$100)

Trucks (two tons or larger)

$4.00 / $100 at 80% of Cost (1) (Effective Tax Rate — $3.20)

Personal Property (Automobiles)

$4.00 / $100 at 100% NADA Loan Value

Sales and Use Tax

James City County — 1%
Commonwealth of Virginia — 4% (2)

Merchants Capital (Inventory) Tax

None

Utilities Tax

None

Business and Occupational License Tax (3)

On Gross Receipts		On Gross Purchases
Contractors	$0.16 / $100	Wholesale Merchants	$0.05 / $100
Professionals	$0.58 / $100
Retail Merchants	$0.20 / $100
Services	$0.36 / $100

Prepared Food & Beverages

Transient Occupancy

1 — 80% first year, declining 10% each year to 20% minimum
2 — Manufacturers receive broad exemptions for purchases used in production; Distributors receive exemptions for items purchased for resale
3 — Manufacturers are exempt