Leo Marsh – Division Director
Bank Franchise
The bank franchise tax is an annual tax measured by the net capital of a bank. A bank has been defined as “any incorporated bank, banking association or trust company organized by or under the authority of the laws of the Commonwealth and any bank or banking association organized by or under the authority of the laws of the United States….” The tax is 80 percent of the state tax rate of taxation for each $100.00 of the net capital. Banks having a branch or principal office in Henrico County are required to file a Bank Franchise Tax Return. If the location is not a principal office, but is a branch of the principal office, the tax is apportioned as provided by the Code of Virginia.
| Phone number: | 804-501-7329 |
| Relevant code: | Henrico Code §20-167 thru 20-170 / State of Va. State Code §58.1-1201 |
Business License
Virtually all businesses must purchase a business license before commencing operation in Henrico County (the County has no Merchants’ Capital Tax). The specific tax rate varies depending on the nature of the business. In most instances the tax rate is applied to gross receipts. Licenses expire December 31st of each year and must be renewed annually by March 1st.
| Phone number: | 804-501-4310 |
| Application: | Business License Application |
| Relevant code: | Henrico Code §20-350 thru 20-821 / State of Va. Code §58.1-3700 ; 58.1-3735 |
Business Tangible Personal Property
Virtually all businesses must file on all furniture, fixtures, tools, signs, and all equipment used in the conduct of business. The base tax rate applicable to this class of property is currently $3.50 per $100 of assessed value. Various depreciation schedules are applied to arrive at the fair market value of the assets being reported (depending upon the classification of the item).
| Phone number: | 804-501-4310 |
| Application: | Business Return of Tangible Personal Property |
| Relevant code: | Henrico Code §20-108 thru 20-116 / State of Va. Code §58.1-3500 thru 58.1-3522 |
Cable
In consideration of the granting of a franchise to use the public ways for the operation of a cable television system, five percent of its annual gross revenues during the period of its operation under the franchise; Sec. 7-62 of the Henrico County Code.
| Phone number: | 804-501-7329 |
| Application: | Business Return of Tangible Personal Property |
| Relevant code: | Henrico Code §7-62 / State of Va. Code §58.1-3813 |
Short Term Rental Property Tax
The Short-term Rental Property Tax is a 1% tax imposed on the gross receipts generated from the rental of owned tangible personal property. Annual certification is issued upon application by qualified merchants.
This tax is collected from the consumer in a manner similar to that used in the collection of sales tax and is remitted to the County quarterly, in lieu of the payment of business personal property tax on the rental inventory. Rental income from property required to be licensed with DMV, Game and Inland Fisheries, or Aviation is not subject to this tax.
| Phone number: | 804-501-7329 |
| Application: | Short-term Rental Property Tax |
| Relevant code: | Henrico Code §20-307 thru 20-323 / State of Va. Code §58.1-3510 |
Daily Rental Vehicle
The Virginia Department of Taxation administers the Daily Rental Tax. These businesses are certified and registered by the Department of Taxation. Registered businesses collect a tax of 4.0% of the gross proceeds on the vehicle rental and remit the tax to The Department of Taxation, who in turn remits the tax monthly.
| Relevant code: | State of Va. Code §58.1-2400 |
| Phone number: | 804-501-7329 |
Machinery & Tools
A tax is levied on the machinery and tools used in the manufacturing, processing or reprocessing, mining, radio or television broadcasting, dairy, dry-cleaning, or laundry business. The Machinery and Tools Tax Rate is currently $.30 per $100 of assessed value (which is determined by applying a depreciation schedule to arrive at the fair market value).
| Relevant code: | Henrico Code §20-108 thru 20-116 / State of Va. Code §58.1-3500 thru 58.1-3522 |
| Phone number | 804-501-4310 |
Data Centers
A separate tax rate is levied on the computer equipment and peripherals used in a Data Center. A Data Center is a facility whose primary services are the storage, management, and processing of digital data. The facility must also house equipment used for the transformation, transmission, distribution, or management of at least one megawatt of electrical power capacity. The Data Center tax rate is $.40 per $100 of assessed value (which is determined by applying a depreciation schedule to arrive at the fair market value).
| Relevant code: | Henrico Code §20-108 thru 20-116 / State of Va. Code §58.1-3506 |
| Phone number | 804-501-4310 |
Off-Track Betting (Pari-Mutual Betting Fees)
The tax began in Henrico County December 10, 1996, with the opening of the OTB facility at 4700 W. Broad Street, which is split by the County/City line. Henrico receives 1/8% of all win, place, show wagers and 1/4% of all exotic wagers placed on live in state racing and at the OTB Parlor. (Note: the Henrico percentages reflect 50% of those stated in the Code because the parlor is located on the County/City line.) Within five days of each race, Colonial Downs faxes a report to the Accounting Division detailing the daily race handle and the monies being remitted to Henrico via an ACH Transfer. The auditor for the Virginia State Racing Commission reviews the daily faxes to ensure compliance.
| Phone number: | 804-501-7329 |
| Relevant code: | State of Va. Code §59.1-365 |
Public Service Corp.
Companies designated as public service corporations, e.g., interstate pipelines, railroads, telegraph/telephone, etc. are billed for the first installment based on one-half of their Equalized Property value. The second installment billing reflects the actual assessment as determined by the Department of Taxation and State Corporation Commission. In the second installment payment, vehicles are billed and district rates are applied.
| Phone number: | 804-501-7329 |
| Relevant code: | Henrico Code §20-108 (g) / State of Va. Code §58.1-2600 |
Sales & Use
Retailers collect 6.0% Retail Sales tax imposed on retail consumer sales. The State portion of this levy is 5.0% and the County portion is 1.0%. No County tax, other than the Sales Tax noted above, is levied on the following: Admissions and Cigarettes.
| Phone number: | 804-501-7354 |
| Relevant code: | Henrico Code §20-194& 20-214 / State of Va. Code §58.1-600 |
Transient Lodging
All motels and hotels in Henrico County collect a local transient lodging tax of 8% on room rental charges.
| Phone number: | 804-501-7329 |
| Relevant code: | Henrico Code §20-273 thru 20-279 / State of Va. Code §58.1-3819 |
Utility Taxes
| Phone number: | 804-501-7329 |
| Relevant code | Henrico Code §20-239 thru 20-247/ |
Electric / State of Va. Code §58.1-2900
$0.70 plus the rate of $0.007537 per kilowatt hour delivered not to exceed a maximum monthly tax of $1.00 (Residential).
$1.15 plus the rate of $0.00713 per kilowatt hour delivered not to exceed a maximum monthly tax of $10.00 (Commercial).
$0.70 plus the rate of $0.007537 per kilowatt hour delivered not to exceed a maximum monthly tax of $1.00 per dwelling unit (multi-family/apartments).
$1.15 plus the rate of $0.007603 per kilowatt hour delivered not to exceed a maximum monthly tax of $10.00 (Industrial).
Natural Gas / State of Va. Code §58.1-2904/
25% of first $625, 5% of bill over $625 (paid to City of Richmond).
