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BUSINESS
TAX INFORMATION
BUSINESS PERSONAL PROPERTY TAX
Every proprietor, firm or corporation owning or leasing
tangible business property, machinery and tools, located in York County
as of January 1st of any given year must report all furniture, fixtures,
tools, equipment, computer equipment and business use vehicles used in
the operation of the business. This includes all fully depreciated
property. An itemized breakdown including description of property
purchased and/or disposed of, the date purchased and/or disposed of and
the original cost is required.
For your convenience, the Commissioner of the Revenue
mails a "Tax Return of Business Tangible Personal
Property and Machinery and Tools" form annually to each business.
This return must be completed and returned by March 1st. Failure to
submit this return by the due date will result in a late filing penalty,
which is 10%, $10.00 minimum, not to exceed the amount of tax. Failure
to file will result in a statutory assessment and such will be the basis
of your tax bill. Virginia Code §58.1-3519 authorizes the Commissioner
of the Revenue to assess property based on the best information
available in any case where a taxpayer neglects or refuses to file a
complete return. All filings are subject to audit by the Commissioner of
the Revenue at any time.
STATE SALES TAX
A seller is subject to the sales tax imposed on gross receipts from
retail sales. "Retail sales" means sales made for any purpose other than
for resale. The tax may also apply to the furnishing of transient
accommodations and the lease or rental of personal property.
The
seller collects the tax from the customer on each sale. The tax must be
separately stated and added to the sales price or charge. The general
sales tax rate is 5% (4% state tax and 1% local tax). The sales of
eligible food items are subject to a reduced state tax rate of 2.5%
(1.5% state tax and 1% local tax). For additional information, please click
the following links:
Virginia Retail Sales & Use Tax Rate Increase Guidelines
and
5% Virginia Sales Tax Table.
BUSINESS LICENSES
New businesses are required to apply for a
business license prior to opening.
Businesses locating in commercial buildings should allow 30-45 days for
building inspections (fire, zoning, building regulations) prior to opening.
In addition, if the business has a trade name, a
Fictitious
Name Certificate
must be filed with the York County Clerk of Circuit Court before
applying for a business license. All other businesses are required to file
a renewal application and pay their license fee or tax annually by March 1.
Each business must apply for the license and pay the applicable fee or tax
in the Commissioner of the Revenue's office. The license fee or tax is
based on the gross receipts from the previous year (or, for new businesses,
the anticipated gross receipts for the year, which will be adjusted, as
needed, the next renewal year.) Contractors applying for a new license or a
renewal license must also submit a "Worker's
Compensation Contractor's Certification" form.
SPECIAL LICENSES
In compliance with the County code, Article III Section 14-29, Businesses
are required to obtain a special sale license when advertising "going out of
business" sales for purposes of discontinuing a retail business.
Applications for a special license must be filed with the Commissioner of
the Revenue's office fourteen (14) days prior to the date of such sale. The
cost for the application is $65.00 and expires after sixty (60) days. The
license can only be renewed once after the initial issue for an additional
$65.00. Click here
for more information on this code.
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CHECKPOINTS
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Zoning and
Code Enforcement: All businesses are required to file for zoning
clearance. The application is completed by the Commissioner of the
Revenue's office and forwarded to the Department of Environmental &
Development Services for final approval. Sign permits may be
obtained through the same office and you must apply for a business
license prior to the approval of such permit.
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Site Plan:
If you are constructing a new building or renovating an existing
structure, you may need to prepare a site plan according to the York
County Zoning Ordinance and submit it to the Department of Environmental
& Development Services.
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Building
Permit: Plans for proposed new construction or renovation/
alteration of existing buildings require issuance of a building permit.
Plans must be submitted for review and approval.
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Trade Name
Registration: Apply for
Fictitious Name Certificate at the Clerk
of the Circuit Court, phone (757) 890-3350.
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Business
License: Apply for a
business license.
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Worker
Classification:
Independent Contractor vs. Employee: Worker classification
affects how you file your tax return and pay your federal income tax,
social security and Medicare taxes. To assist you with determining this
distinction, download the IRS Publication 1779 Independent Contractor
vs. Employee brochure. For more information, please visit the
IRS website.
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Business
Personal Property: File a
Business Personal Property Tax Form.
For
additional information on obtaining a business license in York County please
call (757) 890-3383. You may click here to access the forms page.
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OTHER
BUSINESS TAXES
PREPARED FOOD AND BEVERAGE TAX
Prepared Food and Beverage/Meals Tax is a tax on
prepared food and/or beverage served by a business. This is a 4% tax,
(in addition to the state sales tax of 5%), which is assessed to the
consumer and collected by the business. The business then
reports and pays the amounts collected on a monthly basis to the
Commissioner of the Revenue's Office.
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SHORT TERM RENTAL TAX
A business is said to be engaged in
short term rental if eighty percent (80%) of the
gross rental receipts of the business, in any year, are from transactions
involving rental periods of ninety-two days or less. This is a 1% tax,
(in addition to the state sales tax of 5%), which is assessed to the
consumer and collected by the business. The business then reports and
pays the amounts collected on a quarterly basis to the Commissioner of the
Revenue's Office.
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TRANSIENT OCCUPANCY TAX
Transient Occupancy/Lodging or Room Tax is a tax on
rentals of hotels, motels, guest rooms, campgrounds, and other temporary
lodging of no more than 30 days. This is a 5% tax which is assessed to
the consumer and collected by the business. The business then reports
and pays the amounts collected on a monthly basis to the Commissioner of the
Revenue's Office.
Attn: All York County Hotel/Motel/Bed &
Breakfasts
Collections of $2.00 Additional Tax of Transient Occupancy
The 2004 Virginia General
Assembly passed Bill Number SB 652, which authorizes York County to impose
an
additional Transient Occupancy Tax of $2.00 per room
per night. This tax does not apply to rooms rented and continuously
occupied by the same individual(s) for 30 or more continuous days.
The York County Board of Supervisors adopted
Ordinance No. 04-8 to amend the York County Code § 21-93 to impose the $2.00
per room, per night tax in addition to the current Transient Occupancy Tax
effective July 1, 2004. This revenue must be spent on advertising the
Historic Triangle area as an overnight tourism destination.
A form, in addition to the current form for
Transient Occupancy Tax, will be mailed to each hotel/motel/bed and
breakfast owners. As with the Transient Occupancy Tax, this form is
due to be filed and payment remitted to the Commissioner of the Revenue on
or before the 20th day of the month following the month
collected.
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Administrative
Appeal of Local Mobile Property, Local Business Tax or Business
Professional & Occupational License (BPOL)
In accordance with the State Code
of Virginia, §58.1-3983.1(B), effective January 1, 2005, refer to the below
definition and instructions to complete an application for administrative
appeal of Local Mobile Property, Local Business Tax or Business Professional
& Occupational License (BPOL).
"Local Mobile Property Tax" is
defined as tax on boats, campers, recreational vehicles, trailers and
airplanes.
"Local Business Tax" is defined as tax on machinery and tools, business
tangible personal property (including, without limitation, computer
equipment), merchant's capital, and a consumer utility tax where the amount
in dispute exceeds $2,500 other than the tax collected on mobile
telecommunication service as defined in §58.1-3812.
Any taxpayer who reasonably
believes that the assessment of any Local Mobile Property, Local Business
Tax or Business Professional & Occupational License (BPOL) is in error must
apply to the Commissioner of the Revenue. The application for review must be
made within one year from the date of assessment, or one year from the last
day of the tax year, whichever is later.
The request for
review must contain the following:
A. Name and address of taxpayer and taxpayer Social Security/Identification
number
B. If the applicant is different from the taxpayer, name and
address of applicant and a power of
attorney or letter of representation
C. Copy of the notice of assessment
D. A statement why the taxpayer believes the assessment is
erroneous. The statement should
include the tax period covered
by the challenged assessment, the amount in dispute, the remedy
sought, each alleged error in
the assessment, the grounds upon which the taxpayer relies, any other
facts relevant to the
taxpayer's contention and authority the taxpayer believes supports his
opinion.
It is within the discretion of the Commissioner of the Revenue to determine
whether a conference will be beneficial in reviewing the application. Any
conference will be informal without adhering to rules or procedure
established for adversarial proceedings. You need not have legal counsel
present although if you elect to do so or if you elect to include any
representatives or attendees, you must notify the Commissioner of the
Revenue in advance. If you arrive at the meeting with representatives and
have not provided advance notice the meeting may, at the option of the
Commissioner of the Revenue, be rescheduled.
The Commissioner
of the Revenue may require submission of additional information or
documents, an audit or further audits, or any other evidence as deemed
necessary to properly evaluate the application.
Within ninety days
of receipt of the complete timely filed application, the Commissioner of the
Revenue will thoroughly review and analyze the application and notify, in
writing, the taxpayer of the determination. Should the Commissioner of the
Revenue need to extend the period of time in which to consider the
application, due to its complexity, the taxpayer will be notified, in
writing, of the expected date that a determination will be rendered.
Any person whose administrative appeal to the commissioner of the revenue
has been denied in whole or part may appeal the determination of the
commissioner of the revenue by filing an appeal with the Tax Commissioner
and serving a copy of the appeal upon the commissioner of the revenue within
90 days of the date of the determination of the commissioner of the revenue.
The appeal shall include a copy of the written determination of the
commissioner of the revenue that is challenged, together with a statement of
the facts and grounds upon which the taxpayer relies. This information
should be mailed to: POB 27203, Richmond, VA 23261-7203.
For further
information on the appeal process call (757)890-3383; Fax (757)890-3389;
E-mail revofc@yorkcounty.gov;
or submit an application.
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Need more
information? Try these helpful sites.
Small Business Administration
Virginia Department of
Business Assistance
Virginia Peninsula
Chamber of Commerce
Williamsburg Area
Chamber of Commerce
York County Chamber of Commerce
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