Virginia tax code requires all business owners, including home based businesses, to file a business tangible personal property return and current asset list annually. All property located in Loudoun County on January 1 and used or available for use in your business is taxable. This includes property owned by the business, property owned personally and used in the business on a full or part-time basis, property received as a gift, property that is leased or rented, and property that is fully depreciated or expensed for federal tax purposes.

Business tangible personal property taxes are billed semiannually and are due to be paid to the Loudoun County Treasurer by June 5 and October 5 of each year.

Assessment

The Commissioner of the Revenue is responsible for the assessment of all personal property with taxable status in Loudoun County. Business tangible personal property assessments are derived by applying an assessment factor to the property's original capitalized cost. These factors vary according to year of purchase and represent the normal devaluation of property that occurs as equipment ages. Assessments begin at 50% of cost for items purchased in the immediate prior year and decrease by 10% per year to a minimum of 10% of cost for items purchased five or more years ago. The Loudoun County Board of Supervisors sets the personal property tax rates that are applied to these assessments each year.

Current Asset List

Please send a current asset list along with your business property tax return. For each piece of business property or equipment, please include the original purchase price, a brief description and the year of purchase. Include all business property located in Loudoun County, even if fully depreciated for federal tax purposes. Do not include vehicles on this list.

Computation of Tax

The Loudoun County Board of Supervisors establishes business tangible personal property tax rates each year. The County determines the tax by multiplying the property’s original cost by the appropriate assessment factor according to the assessment formula, and then multiplying the assessed value by the appropriate tax rate. The current tax rate is $4.20 per $100 of assessed value.

Example:

Purchase Year	Original Cost		Assessment Factor		Assessed Value
2008	$7,000	x	50%	=	$3,500
2007	$4,500	x	40%	=	$1,800
2006	$5,000	x	30%	=	$1,500
2005	$2,350	x	20%	=	$470
2004 and prior	$155,000	x	10%	=	$15,500

 
     Total Assessment = $22,770

     ($22,770 ÷ 100) x $4.20 = $956.34

     Annual Tax Amount = $956.34

Proration

Business tangible personal property tax is assessed on property located in Loudoun County and used or available for use in your business on January 1. If your business is dissolved or discontinued subsequent to January 1, the tax is not prorated for the tax year in which the business is closed. The tax is also not prorated for the tax year in which an asset is sold or disposed of. The disposal of that asset should be reported in the asset list submitted with your next annual renewal.

Annual Renewal

Each year in March property owners will receive renewal forms requesting information pertaining to business tangible personal property. It is your responsibility to complete and return each renewal form along with a current asset list by April 15. If ownership has changed, please notify the Commissioner of the Revenue's office as soon as possible so that we can send the new owner a declaration.

If you would like to file online, please go to File a Business Tangible Personal Property Tax Declaration. If you file online, you do not need to complete the renewal form(s).