For Your Business

Do I need a license to operate my business in Henrico County?

Yes, in most instances a business is required to obtain a business license before operating in Henrico County. For more information, please call (804) 501-4310.

When must I get a business license?

A business renewing its license must do so before March 1 of each year. New businesses are required to procure a license before commencing business in Henrico County. For more information, please call (804) 501-4310.

What is the cost of a business license?

If your business has gross receipts of less than $100,000, normally there is no business license tax but you must still file for a business license. For businesses with gross receipts of $100,000 or more the rate is usually $.20 per $100 of gross receipts (or $.15 per $100 for contractors). For more information, please call (804) 501-4310.

Where do I get a business license?

Applications may be obtained from our office located in Room 136 of the Western Government Center at 4301 East Parham Road, and at the Eastern Government Center at 3820 Nine Mile Road, by clicking here, or by calling (804) 501-4310.

When does a business license expire?

A business license typically expires on December 31st of each year. For more information, please call (804) 501-4310.

Is there a penalty for paying my business license tax late?

Yes, there is a ten percent (10%) penalty for late payment and interest is assessed at an annual rate of ten percent (10%) beginning thirty (30) days after payment was due. For more information, call (804) 501-4310.

Is the business license application available on-line?

Only new business license applications are available on-line by clicking Business License Application. Renewal forms for business licenses are mailed annually to each taxpayer that already has a business license. Renewal forms can also be obtained at the Western Government Center in Room 136 at 4301 East Parham Road, or at the Eastern Government Center at 3820 Nine Mile Road. For more information, please call (804) 501-4310.

What information do I need to apply for a business license?

  1. Licensee Trade Name: If the business name differs from the licensee name, this is called a trade name and it must be registered with the Clerk of the Circuit Court at the Records Room in the Henrico Courts building at 4301 East Parham Road. There is a fee for this registration. We can only process a business license in the name of the licensee (your name) unless the trade name is registered.
  2. Address: Include both your mailing adress and the location of the business, if different. (Note-multiple locations require separate business licenses for each location.)
  3. Type of Business: Describe the type of activity your business will be operating within the County.
  4. Id Number: Your Federal EIN (if issued) or Social Security number.
  5. Beginning Date: The date the business started operating within Henrico County.
  6. Business Entity Type: Individual, Partnership, Corporation, or Other (LLC, LLP).
  7. Planning/Zoning: We submit all business applications to the Planning Department for approval. Your business address must comply with zoning rules before we issue a license. This is of particular concern to home based businesses.
  8. Financial Data: Most businesses must initially estimate their gross receipts. This is the amount of money you expect to earn for the balance of the calendar year.
  9. Your Signature: Be sure to sign your application. Unsigned returns will not be accepted!
  10. *Contractors: You must complete a form regarding compliance with Virginia Workers Compensation Insurance regulations before we can issue you a business license. Furthermore, any contractor who accepts a project of $1000 or more must register with the State Board of Contractors. (NOTE: A Henrico business license is not a substitute for the Virginia contractor’s license).
  11. *Non-Henrico Contractors: A license is required if your gross receipts from work located in Henrico County exceeds $25,000 during the calendar year. For more information, please call (804) 501-4310.

What is Business Personal Property?

All movable tangible property (excluding vehicles) owned by a business and used for business purposes on January 1st of each year is subject to the tax. This information must be provided to the County for assessment purposes on March 1st of each year based on the tax schedule. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4310.

How does the County arrive at the assessed value of Business Personal Property?

The total original cost (which is all costs incidental to acquiring and placing an asset in use, such as freight, installation, sales tax, etc.) is multiplied by the appropriate depreciation factor. To view the depreciation schedule visit our website at henrico.us/finance/. To request a copy of the depreciation schedule, please call (804) 501-4310.

What is the Business Personal Property tax rate?

The tax rate for most property is $3.50 per $100.00 of assessed value. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4310.

What is the deadline for filing a Business Personal Property tax return?

All returns are due by March 1st of each year. For additional information, visit our website at henrico.us/finance/ or call 804) 501-4310.

What is the deadline for paying the Business Personal Property tax?

Payments are due on June 5th and December 5th of each year. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4310.

Is there a penalty for for filing a Business Personal Property tax return after the deadline?

There is a 10% penalty for late filing as stated in the Henrico County Code, Sec. 20-101 (1)b. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4310.

What information must I keep regarding my Business Personal Property?

The cost and date acquired for each asset your business reports on its Business Personal Property tax return. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4310.

How should property leased by a business be reported?

All leased equipment should be reported on Schedule 95 of the Business Personal Property return. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4310.

Should a business include vehicles in its Business Personal Property return?

Licensed vehicles should not be included in Business Personal Property reported on the Business Personal Property return. For additional information visit our website at henrico.us/finance/ or call (804) 501-4310.

Where can I obtain a Business Personal Property tax return?

Applications may be obtained from our office located in Room 136 of the Western Government Center at 4301 East Parham Road, and at the Eastern Government Center at 3820 Nine Mile Road, or at our website henrico.us/finance/, or by calling (804) 501-4310.

How do I obtain a Going Out of Business Permit and how much does it cost?

This can be obtained by calling the Finance Department Revenue Division at (804) 501-4310 or by coming to the Western Government Center in Room 136 at 4301 East Parham Road. There is a $25.00 fee to pay for administrative costs. For additional information, please visit our web site at henrico.us/finance/ or call (804) 501-7329.

For a complete list of FAQs, please visit the County’s main page at henrico.us/faqs/

Vehicle Personal Property

When do I need to file a Personal Property return for my vehicle?

When a person initially acquires an automobile and/or moves an automobile into Henrico County, that person must file a Personal Property return. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

How are automobiles assessed for Personal Property taxes?

Henrico uses the loan value provided by the National Automobile Dealers Association (NADA) to assess Vehicle Personal Property. For additional information visit our website at henrico.us/finance/ or call (804) 501-4263.

What is the general Personal Property tax rate?

The general tax rate is $3.50 per $100 of assessed value. (Note: The rate may vary slightly due to sanitary districts.) For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

Are there exceptions to the general property tax rate?

Yes, there are a few specific exceptions in the County Code. The rate is $1.00 per $100.00 of the assessed value for qualifying vehicles used by volunteer firefighters and volunteer members of rescue squads, and $0.01 per $100.00 of the assessed value for disabled veterans’ vehicles and motor vehicles specially modified to provide transportation to physically handicapped individuals. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

Are adjustments made to the assessment to reflect high mileage or problems with the physical condition of the automobile?

Yes, adjustments can be made for either high mileage or physical condition. For high mileage, on-site inspections are done on odometer readings from January through March. If the deadline has passed, documentation must be submitted to the County office dated as close to January 1st of the current year as possible. For adjustments based on condition of the automobile, an application will need to be completed and submitted to the County office for review. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

Can I appeal my Personal Property assessment?

Yes, a specific appeal form must be submitted to the Finance Department Revenue Division. The form is available online at henrico.us/finance/, or call (804) 501-4263.

If I sell my vehicle during the year, can the Personal Property taxes be refunded?

Yes, the refund will be based upon the length of time that the vehicle was not owned. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

How does Henrico County assess aircraft, boats, boat motors, motorcycles, motor homes, trailers, and trucks weighing over 14,000 pounds?

The assessment is derived according to the date acquired and cost of the property multiplied by the appropriate depreciation factor.

For additional information visit our website at henrico.us/finance/ or call (804) 501-4263.

What is the Personal Property Tax Relief Act or PPTRA?

The State of Virginia has allocated funds to provide tax relief for qualifying vehicles in the County of Henrico. A qualifying vehicle is any passenger car, motorcycle, pickup or panel truck having a registered gross weight of less than 7,501 pounds. Furthermore, the vehicle must be owned or leased by an individual and NOT used for business purposes. A leased vehicle for personal (non-business) use will also qualify when the lessee is responsible for payment of the personal property tax by the terms of the lease agreement. The amount of tax relief is based upon the total dollars from the Commonwealth divided by the total tax of all qualifying vehicles in the County. The 2005 General Assembly capped the total cost of tax relief for the Commonwealth of Virginia at $950 million. It is possible that the portion of the total personal property tax on your vehicle that you have to pay may increase as the number of qualified vehicles in Henrico County increases. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

What is the current rate of Personal Property Tax Relief in Henrico?

The rate is 55% for 2014. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

What vehicles do not qualify for Personal Property Tax Relief?

A vehicle used predominantly for business purposes. This includes a vehicle leased by an individual and the leasing company pays the tax without reimbursement from the individual. Likewise, a pickup or panel truck having a registered gross weight of 7,501 pounds or greater does not qualify. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

What is the definition of “business purpose” in reference to Personal Property Tax Relief?

If your vehicle meets any of the following criteria, your vehicle is considered predominantly used for business purposes and does not qualify for Personal Property Tax Relief:

  1. More than 50% of the mileage for the year is claimed as a business expense for Federal Income Tax purposes OR is reimbursed by an employer.
  2. More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax.
  3. The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code.
  4. The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual.

For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

For a complete list of FAQs, please visit the County’s main page at henrico.us/faqs/

Treasury and Other Related Questions

Why did I receive a penalty on my real estate/personal property bill?

Typically the account was underpaid, or the payment was not received by the due date. To obtain specific account information please contact 501-4678.

How do I have a penalty removed from my account?

In order for your penalty to be considered for exoneration you must contact a Supervisor in the Finance/Treasury Division at 501-7480 or 501-4752. The code of Virginia provides for the exoneration of penalty under limited circumstances.

Why did the County place a hold on my vehicle registration?

The County has placed a hold on your DMV account to collect a delinquent personal property balance, as authorized by Code of Virginia, Section 46.2-752 (J). To obtain specific information on how this hold can be removed please call 501-4678.

Why did the County take (intercept) my state income tax refund or Lottery Winnings?

The Code of Virginia, Section 58.1-520 authorizes the County to collect delinquent tax amounts through the State’s Set-Off Debt Collection Program which includes state income tax refunds and lottery proceeds. To obtain specific account information please call 501-4551.

How much did I pay on my personal property or real estate account?

To obtain specific amounts paid for your personal property or real estate tax account please contact the Finance/Treasury Division at 501-4678.

When are my County taxes (real estate/personal property) due?

Real estate and personal property taxes are due on June 5th and December 5th, annually.

Why did I receive a real estate or personal property tax refund from the County?

The Adjustment Team handles all inquiries regarding tax refunds. Please contact a member of the Adjustment Team at 501-4678.

What is my account balance?

Personal property account information can only be provided to the individual/individuals listed on the account. The real estate information is public record. Please contact 501-4678 for specific account information.

Can I pay my tax bill by credit card?

You can pay by telephone or by the internet using you VISA, MasterCard, American Express or Discover Card. Dial 1-800-272-9829 to pay by telephone, or visit the County’s website at henrico.us/finance/ to pay by computer. Enter jurisdiction code 1029 when prompted. There is a nominal convenience fee charged for this service. You can use you Discover Card at the Teller windows located at the Western and Eastern Government Centers.

Why hasn’t my payment been processed, it was made electronically?

This varies with the payment type and circumstances. Specific account information can be obtained by calling 501-4678.

Why did I receive a penalty when I made my payment electronically before the due date?

In order to research your payment you may contact 501-4678. (this usually requires an explanation to the customer of the electronic payment process)

Were my real estate taxes paid by my mortgage company?

Please contact 501-4678 for specific questions regarding payments made by mortgage companies or escrow agents.

My mortgage company did not pay my real estate bill and now I have a penalty.

Please contact 501-4678 for specific questions regarding unpaid real estate taxes.

I work for a mortgage company, how do I obtain information on outstanding real estate taxes?

In order to obtain information regarding real estate tax account balances, tax rates or assessment information please contact 501-4678.

I am in bankruptcy, how can I get the amount due on my personal property and real estate accounts?

You may contact your Bankruptcy Trustee or contact the Finance/Treasury office at 501-4678.

Why haven’t I received my tax bill?

Please contact the Finance/Treasury Division at 501-4678 and a bill can be faxed or mailed to you.

Where can I get a list of delinquent real estate properties?

A list of delinquent properties can be obtained by calling 501-4479 or the list may be viewed in person at the County Record Room in the Courthouse or the lobby in the Cashier area in the Department of Finance.

Where can I get a dog license?

At 4301 E. Parham Rd. or 3820 Nine Mile Rd. or you may contact the Finance/Treasury Division at 501-4678 for a list of Dog License Substations located throughout the County. You must present a valid rabies certificate when applying for a license.

Why didn’t the County change the mailing address on my real estate account when I sent in the change of address for my personal property account?

The mailing address for personal property and real estate are not always the same. We do not change both unless we have specific instructions from the taxpayer. To obtain additional information please contact 501-4263, 501-4678 or 501-4300.

For a complete list of FAQs, please visit the County’s main page at henrico.us/faqs/

Real Estate Assessment and Tax Relief

Does Henrico County offer any programs providing real estate tax relief for individuals?

Yes, the Real Estate Advantage Program (REAP) provides real estate tax relief to citizens who are over the age of sixty-five (65), or are permanently and totally disabled. The current limitation in regards to income is $67,000, and net worth can not exceed $350,000. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

Do I have to verify my age, income or disability for the Real Estate Advantage Program?

Yes. Along with your completed application, you must submit documentation of all sources of income (including social security, net worth, and age). Disabled applicants must provide a disability certification or sworn affidavits from at least two Virginia licensed medial doctors stating the permanent and total disability; at least one of these affidavits must be based on a physical exam. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

What is included in “Income” and “Net Worth” in reference to the Real Estate Advantage Program?

Total Gross Income includes the applicant’s income PLUS the income of relatives living in the dwelling; however, the first $10,000 of the relatives’ income (other than the spouse’s) will be excluded. Examples of income: salaries, wages, social security benefits, pension/annuity, interest income, dividend income, capital gains, business income, rents received, welfare and gifts, etc. The Net Worth includes checking and savings accounts, certificates of deposit, life insurance policies with a cash value, etc. The dwelling and up to ten acres of land on which the dwelling is located is excluded. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

How does the County determine the amount of tax relief that is awarded, and what is the maximum award, in regards to the Real Estate Advantage Program?

Henrico residents who qualify for this program will save 100% on their real estate taxes up to the maximum award of $1,500 per calendar year. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

What is the deadline for the Real Estate Advantage Program, and what do I need to do to apply?

The applications for this program must be received by April 1st each year. To obtain an application please call (804) 501-4263. You can also receive an application in person by coming to the County offices located at:

The Western Government Center
4301 East Parham Road, Room 135
Henrico, VA 23228

or

The Eastern Government Center
3820 Nine Mile Road
P. O. Box 90775
Henrico , Virginia 23273

Once I qualify for the Real Estate Advantage Program, how do I pay the balance of my taxes?

You simply follow the normal tax payment cycle. If, however, you fail to pay the balance of your bill, minus your partial exemption, by June 30th (first-half) or December 31st (second-half) you may be disqualified from the Real Estate Advantage Program. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

Will the financial information submitted with my Real Estate Advantage Program application be available to the public?

No, Virginia Code Section 58.1-3 protects your financial information from public inspection. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

Am I required to file an application for the Real Estate Advantage Program each year?

You will file an application for the first year and every third year after that once you have received tax relief. You will only need to file a shorter certification form during the intervening two years. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

Can I have a family member or friend designated to handle the Real Estate Advantage Program application process for me?

Yes, but you must submit a written power of attorney with your application. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

What happens to the tax relief granted under the Real Estate Advantage Program if I am forced to leave my home and receive treatment in an assisted living facility?

If your residence is not sold or rented to anyone then the relief will continue. For additional information, visit our website at henrico.us/finance/ or call (804) 501-4263.

How are real estate assessments determined?

Real estate assessments are based on the typical selling price of comparable properties and reflect the actions of buyers and sellers in the local market. The Real Estate Assessment Division is responsible for reviewing market transactions and using the data to assess each property accordingly. Each year staff analyzes thousands of real estate transfers, of which the majority are residential properties. Additionally, transactions for previous years are examined. Sales information is gathered from recorded deeds, buyers, sellers, real estate professionals, and the selling prices are compared to the assessed values to determine an assessment/sales ratio. A neighborhood is selected for reassessment when its assessment/sales ratio is significantly below or above 100 percent. Once it is determined that an area must be reassessed, three valuation approaches, i.e., sales comparison, cost, or income are considered. Typically, the sales comparison approach is chosen for residential properties. Comparable sales information is used as a basis for the assessment of individual properties after the transactions are carefully analyzed to consider differences in size, quality, condition, location, and other amenities.

Due to the limited number of local commercial property transactions, regional and national information must be collected for analysis. In addition to replacement cost data and market data, commercial properties are selected for reassessment based on potential rental income, occupancy levels, and investor demand.

When should I receive a notice of assessment?

Beginning in February of each year, all property owners are mailed a notice of assessment. The mortgage company should be notified if there is a change in the assessment. Title 58.1-3330 of the Code of Virginia requires that any person other than the owner who receives this notice, shall transmit it to the owner at the last known address immediately upon receipt.

“Land Use” value on the notice represents the use value assessment (qualifying and non-qualifying acreage) of property enrolled in the Land Use program. The sum of “Land Use” value and “Building Value” is the total taxable assessment for participating properties. “Land” value represents market value of the land.

Can I appeal my real estate assessment?

Formal reconsideration of an assessment is warranted if the property owner believes the assessed value is in excess of fair market value, is based on incorrect property information, or is inequitable when compared to similar properties. Upon request, staff will complete an application for a property inspection and review of the assessment. Once the analysis is complete, the property owner is notified and a recommended assessment is forwarded to the Board of Real Estate Review and Equalization (BOE) for consideration. Any property owner who disagrees with the County’s decision will be given an opportunity to appear before the BOE. By law, assessment appeals must be filed no later than April 1 of the current year. For additional information, call 804.501.4300.

What is the “Real Data” Telephone System?

This is an Interactive Voice Response and Fax Information System that allows County residents and real estate professionals with a touch-tone telephone to access real property information seven days a week, 24 hours a day. Information may be retrieved by parcel number, account number, address, or owner’s name. Call 804.755.7380 or for TDD access 804.501.5011.

Other Related Services

The County offers a Partial Tax Exemption program for certain multi-family, commercial/industrial, and hotel/motel properties. The structure (building) for multi-family and commercial/industrial properties must be at least 26 years old and a minimum of 35 years old for hotel/motel properties. Qualification also includes other criteria. For additional information, call 804.501.4300.

The County maintains a Land Use program that provides for the assessment of qualifying land based on its agricultural, horticultural, forestry, or open-space use rather than market value. Forest land eligibility includes a 20 acre minimum, and the other classifications require a 5 acre minimum. Applications are due by November 1. For additional information, call 804.501.4300.

The County has a Real Estate Advantage program (REAP) for property owners, who meet certain criteria, are age 65 or older, or who may be disabled. The filing deadline is April 1. For additional information, call 804.501.4263.

When are real estate taxes due?

Real estate taxes are billed semi-annually with the first half payment due on June 5 and the second half payment due on December 5. Reassessment notices are mailed to the property owner, however, the tax bills are typically sent directly to the mortgage company.

For a complete list of FAQs, please visit the County’s main page at henrico.us/faqs/