Business Tangible Personal Property Tax (BPPT)
The Code of Virginia requires all business owners, including home based businesses, to annually report business tangible personal property for taxation.
- Business tangible personal property includes property located in Loudoun County on January 1 that was used or available for use in your business, including furniture, fixtures, computer equipment, machinery, tools, and heavy equipment. 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.
- Some property owned by a business has been classified as intangible by §58.1-1101 of the Code of Virginia, including application software not held for sale, and property with an original cost of less than $25 that is not considered machinery and tools. The Board of Supervisors has also chosen to exempt some personal property utilized in farm related activities from taxation. For more information please review Chapter 860.06 of the Loudoun County Ordinances.
- Code of Virginia§58.1-3903, Omitted Local Taxes and Levies requires that a Commissioner of the Revenue who ascertains that any local tax has not been assessed for any tax year of the three preceding tax years, or that the same has been assessed at less than the law required for any or more such years, to assess taxes at the rate or rates prescribed for that year, adding thereto penalty and interest.
- Business tangible personal property taxes are billed semiannually and paid to the Loudoun County Treasurer by May 5 and October 5 of each year. Additional information regarding Loudoun’s tax deadlines is available on the tax calendar.
- Beginning in tax year 2021, the Commissioner of the Revenue has added a new tax classification for computer equipment and peripherals in a data center as described in §58.1-3506(A)((43).
Operating a Bed & Breakfast or Short-Term Residential Rental Property?
- Businesses Operating a Bed & Breakfast or Short-Term Residential Rental should report equipment located in the rental spaces annually for assessment. Please review the Loudoun County Tax Guide for additional information.
For more information or filing assistance, please contact the Business Tax Division by e-mail or 703-777-0260.
- Property owners will receive a courtesy reminder to report business tangible personal property.
- Owners of business equipment located in Loudoun County on January 1, must report it online by March 1. The online reporting should include a summary of asset costs in the year of purchase. Business personal property assets that have not been identified in the Code of Virginia a separate classification should be reported with Furniture & Fixtures.
- A detailed asset list of all equipment is a required part of the annual filing, including a description of the asset, original cost, and year of purchase. The list should be provided annually with the filing, even if there were no changes from the prior year.
- Include all business property located in Loudoun County, even if fully depreciated for federal tax purposes. Submitting a response of “same as last year,” a blank form or no attachment is not acceptable. All property gifted, borrowed, donated or made available for use in the business regardless of age or depreciation must be declared in the annual asset list.
- Do not include vehicles unless the vehicle is not tagged to drive on public roads.
- If ownership has changed, please notify the Office of the Commissioner of the Revenue as soon as possible so we can notify the new owner of the requirement to register the business.
- The Commissioner of the Revenue is responsible for the assessment of all personal property within 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 applicable to these assessments.
If your business moves, or is discontinued after January 1, the tax is not prorated for the tax year the business was 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 filing.
If you have questions about business tax or require assistance, please call the business tax division at 703-777-0260.