Smyth County Economic Development

Taxes

2006-2007 Fiscal Year Tax Assessment Rates

Personal Property Tax on Vehicles
All cities and counties in Virginia have a personal property tax.  Smyth County taxes vehicles (cars, trucks, buses, motorcycles, motor homes, trailers, boats aircraft, business equipment, and farm equipment).  The Commissioner of Revenue (276) 782-4040 assesses this tax.  Taxes are paid to the Treasurer by December 5 of each year (276) 782-4059.

Vehicles Taxed in Smyth County
Vehicles registered with the Virginia State Division of Motor Vehicles as being in Smyth County are taxed. Vehicles not registered with the DMV but garaged, stored, or parked in Smyth County on January 1 of each year are subject to be taxed, with exception of those exempted by law.

Assessment of Vehicles
The Commissioner of Revenue assesses vehicle personal property tax.  Assessments are based on the average loan value of similar vehicles as listed in the NADA (National Automobile Dealers Association) new and used car guides.  The VIN (Vehicle Identification Number) from the DMV is used to establish value.  Trucks over 2 Ton assessed by percentage of original cost.

When Personal Property Tax Bills Are Due
Payment of all tax bills is due by December 5.  For questions about a tax bill contact the Commissioner’s Office before paying the bill. Penalties and interest will be applied to all unpaid taxes after December 5 by the Treasurer’s Office.

Business Tangible Personal Property Tax
Virginia tax code requires all business owners, including home-based businesses, to file a business tangible personal property return annually.  Smyth County levies a tax on tangible personal property used in trade or business (such as office furniture, machinery, and tools) located in Smyth County on May 1.  This includes property owned by the business, property owned personally and used in the business on a full or part-time basis, property received as a gift, property that is leased or rented, and property that is fully depreciated or expensed for federal tax purposes. You must file form 762 listing all information by May 1 of every year with the Commissioner of Revenue’s Office.

*Business License Tax
Based on total gross receipts, the towns of Marion, Saltville, and Chilhowie assess a business license tax.  You must file an application and pay the license tax by January 31 of each year.  A new business must obtain a license within 30 days of the start of business.  The County of Smyth does not require a business license.

     Town License Tax Information:

           Marion            (276) 783-4113
           Chilhowie        (276) 646-3232
           Saltville          (276) 496-5342

Filing Date For Form 762 Returns
Personal property tax returns Form 762, for vehicles and other forms of personal property must be filed by May 1 every year.   These forms are enclosed with the Virginia State Tax forms. However, if you do not have a Form 762, you may write or call the Commissioner of Revenue.  Failure to file Form 762 will result in a penalty of 10% of tax.

Real Estate Taxes
All property is subject to taxation, except that which is specifically exempt.  Property is assessed as of January 1 each year and payments are due by December 5th each year. Failure to receive a tax bill will not relieve the penalty and interest charge that will be applied to all past bills.  If there is a change of ownership, billing address, or other change pertaining to your taxes, you must notify the Commissioner’s Office at (276) 782-4040.

Assessment Formula
Business property assessments are derived by applying a percentage to original cost according to year of acquisition. This percentage begins at 90% of cost for the first year of ownership, and decreases by 10% per year to a minimum of 20% of cost for all subsequent years that the business continues to own the property.  The percentage for computers begins at 80% of cost for the first year of ownership, and decreases by 20% per year to a minimum of 20%.  The Smyth County Board of Supervisors sets the personal property tax rates that are applied to these assessments each year.

Current Asset List
Please send a current asset list along with a copy of your business registration (application) at the start of your business to the Commissioner of Revenue.  For each piece of business property or equipment, please include the original purchase price, a brief description and the year of purchase.  Include all business property located in Smyth County, even if fully depreciated for federal tax purposes.   Do not include vehicles on this list. 

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Official site of Smyth County, Virginia
121 Bagley Circle, Suite 100, Marion, VA 24354 Phone:(276)783-3298 Fax:(276)783-9314

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Last Updated Friday, August 29, 2008