Business Personal Property Taxes

Local Business Taxation & Assessments

Madison County, in accordance with Virginia Code Title §58.1-3515, taxes all tangible business property as of January 1. All businesses located within the County must file an annual form 762, Business Tangible Property Return, with the Commissioner of the Revenue's Office on or before May 1 each year. Tangible items to list for local taxation may include:

  • Tools (battery & gas-powered equipment, hand-held tools such as hammers & saws, etc.)
  • Furniture (bed frames & mattresses, cabinets, desks, chairs, etc.)
  • Appliances (refrigerators, blenders, washers, etc.)
  • Misc. Outdoor Equipment & Decor (hot tubs, pool equipment, furniture, yard & porch decor, etc.)
  • Unregistered vehicles used for the business (trailers, automobiles, motor coaches, etc.)
  • Certain tangible machinery used directly for manufacturing
  • Computers or electronics (televisions, cellular devices, cameras, etc.)
  • Merchant's Capital (inventory held for resale)

Business assets are assessed for taxation based on their original purchase cost and date, what class they identify as, and when they became business use. All business-use items must be reported for local taxation, regardless of cost or State depreciated value. See the following depreciation schedule for how business asset assessed values are calculated: MADISON COUNTY VA BTP DEPRECIATION SCHEDULE

Business tangible property is not to be prorated. If a business closes after January 1, the form 762 must still be filed for that year. Items should also be reported when disposed of and/or replaced. Original cost is defined as the cost of an item when initially purchased and should include costs to put the item to use (delivery fees, installation, labor, sales tax, etc.).

Click the arrows on each side to learn more about other local business taxes. The grey dots may also be clicked to navigate the carousel.

Transient Occupancy Tax (TOT)

Transient Occupancy tax, or TOT for short, is a tax upon the monthly net rentals of short-term rentals. Short-term rentals are temporary lodging of any form with stays less than 30 continuous days. All short-term lodging business owners are required to collect and pay this tax to Madison County monthly. Some booking platforms will automatically collect and pay this tax on your behalf, such as Airbnb and VRBO. 

The current tax rate for TOT is 5% of net rentals plus a 3% commission. TOT may be filed online using the Taxpayer Portal ("Transient Occupancy Return"). For any questions about paying Transient Occupancy taxes, please contact the Treasurer's Office at (540) 948-4409.

To learn more about the Madison County Transient Occupancy Tax, see Madison County Code Article VI.

Meals Tax

Any business within Madison County offering prepared, ready to eat food for immediate consumption must collect and remit the local Meals Tax. The current Meals Tax rate is 4% of the gross taxable sales. This tax is due to be paid on the 20th day of each month. 

Meals Taxes may be filed online using the Taxpayer Portal ("Meals Return"). For any questions about paying Meals taxes, please contact the Treasurer's Office at (540) 948-4409.

For more information on the local Meals Tax, see Virginia Code § 58.1-3833. County food and beverage tax and Madison County Code Chapter 24, Article VII - County Food and Beverage Tax.

Sales & Use Tax

All general retail stores in Madison County must collect and remit the local sales tax in addition to the Virginia Sales Tax. The Madison County sales tax rate is 1%. Propane gas, firewood, coal, and oil used for providing heat for domestic purposes are exempt from this local tax, in accordance with County Code Article III, Sec. 24-59. 

For more on how to remit and pay Virginia Sales & Use Tax, visit www.tax.virginia.gov/retail-sale-and-use-tax. 

Cigarette Tax

The current levy is $0.40 per pack of cigarettes. This is administered through the Blue Ridge Cigarette Tax Board. 

For definitions and more on this local tax, see Madison County Code Chapter 24, Article XII.

Utility License Tax

This tax is levied to all public utility providers doing business in Madison County. This tax is 0.5% of the annual gross receipts. This tax is assessed as of January 1 each year and the tax bill is due on or before June 1 each year. 

For definitions and more on this local tax, see Madison County Code Chapter 24, Article VIII.

Utility Consumer Tax

See Madison County Code Chapter 24, Article IX and Virginia Code Title 58.1, Chapter 38, Article 4.

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With any questions on local business property assessments, contact the Commissioner of the Revenue's office: