Frequently Asked Questions
- How do you determine who is a manufacturer or processor?
Taxpayers must complete a Business Classification Information (BCI) sheet (PDF) explaining the process and nature of your business activities. Process flow charts, pictures and site visits may also be used for a determination.
- What assets should be filed as M&T?
Any assets used directly in the manufacturing process, or used in connection with machinery that is directly used, will be filed as M&T.
- What about idle and unused equipment?
Machinery and tools may be reported as "Idle and Unused" if:
- They have been discontinued in use continuously for at least one year prior to January 1 of the current tax year.
- On and after January 1, 2017, have been specifically identified in writing by the taxpayer to the commissioner of the revenue on or before April 1, 2017, that the machinery and tools would be withdrawn from service before January 1, 2018, not in use on January 1, 2018, and no reasonable prospect exists that the machinery and tools will be returned to use prior to January 1, 2019.
- What is the deadline for filing M & T?
The filing deadline for Machinery and Tools is March 1.
- Is there a penalty for not filing M & T on time?
There is a 10% late filing penalty assessed on all returns not postmarked by March 1.
- What is Short Term Rental Tax?
A rental tax from the lessee of the daily rental property at the time of the rental for periods of 92 consecutive days or less.
The term short-term rental property does not include trailers or other tangible personal property required to be licensed or registered with the department of motor vehicles, department of game and inland fisheries, or the department of aviation.
- What are the effects of certification as a short-term rental company?
Local taxes for rental businesses that become certified short-term rental businesses are affected in the following ways:
- Rental inventory is no longer subject to the business tangible personal property tax,
- The business license classification for rental revenue is that of "retail merchant," as opposed to "personal service" for non-certified rental businesses
Certified businesses will receive a certificate which must be displayed in each qualified location.
- What is the application deadline for certification?
The deadline to apply for renewal certifications is January 31 of the current tax year.
- For new businesses seeking first-time certification as a short-rental business, an application is expected within 30 days (consistent with the grace period for filing the business license application itself).
- Are there any extensions to the January 31 date for renewal applications for certification?
No. Applications for renewal of certification must be postmarked by January 31 of the tax year for which certification is sought.
- What if a previously-certified short-term rental business misses the deadline for renewal or otherwise does not qualify for certification in a subsequent year?
The effects of certification are reversed.
- The rental inventory reverts to business tangible personal property taxable status, and the business license classification reverts to that of "personal service."
- Certification (or lack thereof) is an annual process, meaning that businesses that are certified one year may not be certified the next, and vice-versa.
- What is the tax rate?
The heavy equipment tax rate is 1.5% and for all other property the rate is 1%.
- If I collect Short-Term Rental tax, do I have to have a business license as well?
Yes, you are required to obtain a Business Professional and Occupational License tax and report your gross receipts.
- What are the due dates for the reporting and remittance of Short-Term rental taxes collected?
Short term rental tax is filed quarterly.
April 30 January - March
July 31 April - June
October 31 July – September
January 31 October - December
- Is there a late filing/payment penalty for failure to file or remit a return by the prescribed deadlines?
Yes. Chesterfield County Commissioner of the Revenue to impose a penalty of 10% of the tax assessable for the non-filing or late filing/payment of a tax return. This penalty becomes a part of the tax due.
- What records must I keep regarding Short-Term Rental tax?
Businesses responsible for the collection and remittance of Short-Term Rental tax should keep accurate records for the current and three prior calendar years. These records are subject to audit by the Office of the Commissioner of the Revenue.
- Who qualifies for a rebate on Machinery and Tools (M&T) taxes?
M&T tax rebates are:
- A full (100%) rebate of M&T taxes paid is available for a five-year period, for new or relocating businesses who locate in a technology zone after January 1, 2006.
- A partial rebate of M&T taxes paid is available for an existing business within a technology zone that undergoes an expansion or renovation which results in an increase of 15% or $50,000, whichever is greater, in the assessed value of its M&T over that of the previous year.
Note: Over the life of the zone, businesses may qualify for more than one qualifying expansion or renovation rebate.
- I think I qualify. What is the first step?
Contact the Chesterfield County Department of Economic Development within one year of locating to a technology zone.
- This program is administered by the Department of Economic Development, and offers incentives to businesses locating and/or expanding or renovating within a technology zone.
- If the business qualifies for a business license incentive, it will still be required to apply for an annual business license with the Office of the Commissioner of the Revenue, but the license fee will either be waived or partially waived.
- In the case of a rebate on M&T taxes, the business must file and then pay the taxes assessed on this equipment before the Treasurer's Office will issue the rebate.
- What is Transient Occupancy Tax (TOT)?
Transient Occupancy Tax (TOT) is a monthly tax collected by operators of public and private hotels, hostelry, inns, motels, tourist home or house, tourist cabin, boarding houses, campgrounds, and other lodging places that offer guest rooms or other accommodations rented out for continuous occupancy for fewer than 30 consecutive days.
- Who is exempt from TOT?
Transients who stay 30 consecutive nights or more, are exempt from Chesterfield County TOT.
- What are the due dates for the reporting and remittance of transient occupancy taxes collected?
Transient reports and remittances are due on or before the 20th day of each month covering the amount of tax collected during the preceding month.
- What is the penalty for late filing or remittance of the TOT?
A penalty in the amount of 10% of the tax due, or $10.00, whichever is greater will be due. Interest will accrue on the amount due at a rate of 10% per year, calculated monthly beginning on the first day of the month following the delinquency.
- What do I do if TOT was collected from a transient in error?
If a tax was collected in error, it should be returned to the transient who was improperly charged. If the hotel, motel, boarding house, travel campground, or other facility cannot return the improperly collected tax to the rightful payer, the law requires that it must be remitted to the county with other TOT collections and not retained by the operators of lodging establishments as additional income.
- What records must I keep regarding TOT?
Businesses responsible for the collection and remittance of TOT should keep accurate records for two calendar years. These records are subject to audit by the Office of the Commissioner of the Revenue.