•  Henry County Taxes
    • Real Estate: $0.54 per $100 market value
    • Business Equipment: $1.19 per 71% of the capitalized cost
    • Machinery & Tools: $1.19 per 71% of the capitalized cost

 

  • City of Martinsville Taxes
    • Real Estate: $1.08 per $100
    • Business Equipment: $2.30 per $100
    • Machinery & Tools: $1.85 per $100

 

  • Corporate Income Tax
    • Tax rate of 6%, not raised in thirty years; one of the lowest in nation
    • Three factor apportionment formula of payroll, property and sales (with sales double-weighted, which has the effect of reducing tax liability for firms with significant sales to customers outside Virginia)
    • Tax credits for job creation and investment in economically stressed areas
    • No franchise or net worth tax

 

  • Sales and Use Tax
    • Total tax of 5 percent (4 percent state tax and 1 percent local tax)
    • Seller subject to sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property
    • Manufacturers do not pay tax on purchases used for production; distributors do not pay tax on items purchased for resale

State of Virginia has NO TAX on: intangible property, manufacturers' inventory, and manufacturers' furniture, fixtures, and corporate aircraft.

 

For more information on Business Taxes, please see A Virginia Guide: Local Taxes on Business.

 

11-01-2007