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:

As of July 1, 2013, Stafford County no longer imposes any taxes on Machinery & Tools used for the purposes defined above.

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

Tax Rates

Stafford County: Business Taxes - 2014

Current Rate per $100 of Assesed Valuation

Effective rate

Real Property $1.019 $0.91
Business Personal Property $5.49 $1.92*
Business Vehicles $5.49 $2.20**
Machinery & Tools (eliminated as of July 1, 2013) $0.00 0.00
Merchant's Capital $0.50 $0.50
Garrisonville Rd Transportation District (Real Property) 0.087+  
Warrenton Rd Transportation District (Real Property) 0.000+  
Hidden Lake District (Real Property) 0.421+  
Utility Tax (electric, gas, telephone, etc):    
Electric Min: $1.15/Max: $200  
Gas Min: $2.29/Max: $100  
Moblie Phones 10% not to exceed $30  
Telephone 3% of charges  
Other Stafford Taxes (collected by businesses):    
Transient Occupancy Tax 5%  
Meals Tax 4%  
Short-Term Rental 1%  
Local Sales Tax 1%  
* Year 1 (depreciation schedule begins at 35%)    
** Assessed at 40% of NADA value    
+ Additional amount added to Real Property rate in these districts    
Stafford CPI-U (April 2014): 232.5  

Virginia Tax Rates:

Corporate Income Tax: 6%  
Personal Income Tax: 5.75% max  
Sales & Use Tax: 4.3%  
Unemployment Insurance Tax: (new employers) 2.92%*  
* Wage base:  $8,000    

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