Business Personal Property Tax (2024)

Returns:May 1(or the following business day if May 1 falls on a weekend)

Payments:October 5(or the following business day if October 5 falls on a weekend)

• 2023 Business Personal Property Return and Instructions

Each March, the Finance Department mails property tax returns to all for-profit and non-profit businesseslicensed in the City that began operating prior to January 1 of the current year. All businesses must file the returns with an itemized listing of all tangible personal property, including the date of acquisition, date of disposal, and original purchase price. All personal property must be substantiated through the following documentation:

• Assets or Equipment Journal; or
• Federal Form 4562; or
• Federal Schedule L of Form 1120.

Business personal property tax returns must be filed byMay 1(or the next business day if May 1 falls on a weekend)with:

Business Tax
PO Box 178
Alexandria, VA 22313
Email:businesstax@alexandriava.gov

The City assesses all business personal property, except computers, at 80 percent of the property's purchase cost in its first year of service. In each subsequent year of service, the assessed value declines by ten percent until it reaches the minimum value of 20 percent of purchase cost in the seventh and later years of service. The City assesses computers at 65 percent of the property purchase cost in the first year of service, 45 percent the second year, 30 percent the third year, 20 percent the fourth year andfive percent in the remaining years.

The tax is established by multiplying the assessed value of the property by the property tax rate. The tax rate for business personal property is $4.75 per $100 of assessed value. The tax rate for machinery and tools is $4.50 per $100 of the assessed value.

City Council determines a separate property tax rate for machinery and tools during May of each year. The tax rates apply to the current tax year beginning January 1.

Some, but not all, non-profit organizations are exempt from payingthe business personal property tax but must still file an annual return.More information can be found in theLicensing and Tax Guide for Non-Profit Organizations.

Business personal property tax bills are mailed in late August or early September to all business that were operating in the City as of January 1 of the tax year. There are two types of business personal property tax bills: standard and statutory billing.

The left hand side of thestandard billshows the tax assessed based on the return filed, broken down by property type, but does not show the assessed value of the property itself. The right hand side reflects the assessed taxes, plus any penalties, interest, and fees added and any payments that have already been applied. If the annual business personal property tax return is filed after the July 1 due date, the bill will reflect alate filing penaltyassessed on the current year tax. This section will also show any delinquent prior year balances due, which must be paidimmediatelyto avoid additional penalty and interest.

Sample Standard Bill(PDF)

Thestatutory billreflects astatutory assessment, an estimated tax that is assessed on any business that fails to file a business personal property tax return, as well as a penalty for failure to file a return. In order to receive a corrected bill based on the actual value of the business's tangible personal property, a business must file an amended business personal property tax return. Information on filing an amended return can be obtained by calling 703.746.4800 and choosing option 2.

Sample Statutory Bill(PDF)

Any business that does not receive the tax bill should contact the Treasury Division byemailor by phone at 703.746.4800. The business will still liable for paying the tax by the due date. Failure to receive a bill does not relieve the taxpayer of the responsibilityof paying the tax and/or anypenalty and interestassessed due to late payment.

NOTE:The reverse side of each tax bill provides important information concerning payment methods, penalties and interest, due dates, returned check fees, and the method for making corrections to an account.

Payment is due byOctober 5(or the following business day if October 5 falls on a weekend) for all current year taxes. Delinquent prior year balances should be paid immediately to avoid additional penalty and interest.

By Mail:Any business owner wishing to pay by mail should write the account number on a check or money order and send it with the bill stub to:

City of Alexandria Business Personal Property
P O Box 34901
Alexandria, VA 22334-0901

Returned checks are subject to a $35 fee in accordance with state law.

Information on all other payment methods, including paying by debit/credit card or eCheck, is available on thePaymentswebpage.

Late Filing Penalty

Business personal property tax returns must be filed by May 1 of each year. The City assesses a late filing penalty of $10 or five percent of the tax due, whichever is greater, for failure to file a business personal property tax return by the due date. In no case may a late filing penalty exceed $500 if a return is filed within the first 30 days after the due date. If the tax filing is more than 30 days late, the late filing penalty is five percent of the total tax due amount.

Late Payment Penalty

The City assesses a late payment penalty of $10 or10 percent of the tax due, whichever is greater, on all tax accounts paid after the due date. No penalty may exceed the amount of the tax billed.

Interest

Interest on all delinquent taxes accrues at an annual rate of10 percent the first year and five percent each year thereafter, until all taxes, penalties, and interestare paid in full.

Prior year business personal property tax returns can be foundhere. For additional tax forms and taxpayer assistance, contact:

Revenue Division
301 King Street, Room 1700
Alexandria, VA 22314
703.746.4800
Email:businesstax@alexandriava.gov