Operating Costs

Stafford County understands that businesses have a choice of where to locate and that costs are often a key component of making that decision.  With its renewed commitment to making Stafford an affordable and business-friendly community, Stafford County leaders have taken bold steps to minimize both the expense and requirements for establishing a local business.  Subsequently, the gross receipts tax (often referred to as BPOL) imposed in many communities doesn’t exist in Stafford.  And, a business license isn’t even required!

Real estate taxes have been reduced for the past two fiscal years and other business related tax rates (e.g. personal property, machinery & tools) have remained stable, helping Stafford companies become and remain profitable.  And, for businesses owning corporate aircraft, Stafford County Regional Airport offers another cost-saving opportunity, as this property is not taxed.

A complete list of current business-related taxes and associated rates is outlined below:

BUSINESS PROPERTY is all equipment, furniture, fixtures, etc. used in a business. Business Property is assessed at a percentage of original cost using the following depreciation schedule:

1st year - 35%
2nd year - 30%
3rd year - 25%
4th year - 20%
5th year and all subsequent years - 15%

MACHINERY & TOOLS refers to equipment used in manufacturing, mining, processing or reprocessing, radio or television broadcasting, cable television, dairy, dry cleaning or laundry business, and trucks used for hire that qualify as common carriers. Machinery & Tools are assessed at a percentage of original cost using the following depreciation schedule:

1st year - 90%
2nd year - 80%
3rd year - 65%
4th year - 50%
5th year - 35%
6th year and all subsequent years - 20%

MERCHANTS CAPITAL is inventory of stock on hand and is assessed at 100% of cost.

Tax Rates

Note:  Virginia does not tax machinery & tools, business tangible property, real estate, or business intangible property; only imposed at the local level.