Business Personal Property Tax
Business personal property that is located in the City as of January 1 each year must be declared on a Business Personal Property Tax Form. The filing deadline is April 15. Tax on business personal property is not prorated.
Business personal property is depreciated and taxed based on a percentage of original cost. Examples of business personal property include:
- Desks and chairs
- Computer hardware
- Specialized tools
- Machinery and equipment
Home-Based Businesses:Company-owned vehicles are subject to the filing requirements for vehicles.
If furniture, fixtures, equipment and computer equipment is expensed on a Schedule C, it is reportable and taxable. If it is depreciated with a 50% or greater business use, it is reportable and taxable.
The 2018 tax rate for business personal property in Manassas City is:
- $3.60 for each $100 of assessed value on furniture, fixtures, machinery, and equipment
- $1.25 for each $100 of assessed value on computer equipment
Most business property is assessed at 80% of the original cost for the first year, and 10% less each succeeding year for six years until it reaches a floor of 20%.
Computer equipment is assessed at 50% of the original cost the first year, 35% the second year, 20% the third year, 10% the fourth year, and 5% the fifth year and thereafter until the equipment is sold or otherwise disposed of.
It is important to note, "original cost" includes the full capitalized cost to include sales tax, freight and installation. All returns are subject to local tax audit.
To appeal business personal property assessment, please submit a letter to the Commissioner, documenting the basis for the appeal, and include all substantiating documentation to:
Commissioner of the Revenue
9027 Center Street
Manassas, VA 20110
For more information call (703) 257-8229.