News and Announcements
To better serve the residents and business-owners of the City of Alexandria, the Finance Department will post all News and Announcements concerning City and intergovernmental tax rates, tax programs, and tax filing and due dates here. For information on seminars, meetings, and events for City businesses hosted by the City and/or its partner organizations, please see our Events, Courses, and Resources for City Businesses page.
May Sales Tax Holiday: Hurricane and Emergency Preparedness Equipment
From Saturday, May 25 through Friday, May 31, 2013, purchases of supplies and equipment needed for hurricane preparedness will be exempt from sales tax. Please visit the Virginia Department of Taxation's May Sales Tax Holiday page for more information and a list of exempt products.
Tax Rate Changes: City
The Fiscal Year 2014 Approved Budget passed by City Council on May 6 included a variety of tax rate and fee changes. These include:
- Real Estate Tax: The rate increased from $0.998 per $100 in calendar year 2012 to $1.038 per $100 in calendar year 2013. This rate will take effect with the first half real estate tax billing this month.
- Refuse Fee: The residential refuse fee was set at $328 for fiscal year 2014. This is a decrease from the residential refuse fee of $336 in fiscal year 2013. This fee decrease will take effect with the second half real estate tax billing in October. So, $168 will be added to the first half 2013 real estate tax bill, while $164 will be added to the second half.
- Personal Property Tax: The rate increased from $4.75 per $100 in tax year 2012 to $5 per $100 in tax year 2013. This rate will take effect with the assessment of 2013 personal property taxes in July and will be reflected on the annual billing in August. Any taxes assessed for calendar year 2012 and prior years, even if assessed after the rate change, will continue to be calculated at the previous rate of $4.75 per $100.
- Utility Taxes: The maximum monthly utility tax for residential electric/gas consumers will increase from $2.40 in 2012 to $3 in 2013. The utility tax rate for commercial electric consumers will increase from $0.97 +.004610 per Kilowatt Hours (kWh) in fiscal year 2013 to $1.07 + 0.005071 per kWh in fiscal year 2014. The utility tax rate for industrial electric consumers will increase from $0.97 +.003755 per Kilowatt Hours (kWh) in fiscal year 2013 to $1.07 + 0.004131 per kWh in fiscal year 2014. These rates will take effect July 1.
- Cigarette Tax: The cigarette tax will increase from $0.80 per pack in fiscal year 2013 to $1 per pack in fiscal year 2014. This new rate will take effect July 1.
Tax Rate Changes: State
With the General Assembly's passage of House Bill 2313, certain tax rate changes in the Northern Virginia region will take effect beginning July 1, 2013. These include changes to the state sales and use tax and grantor's tax as well as the implementation of a state transient occupancy tax. These changes are summarized below. However, additional information is available in the Virginia Department of Taxation's Notice to Vendors and on the Virginia Department of Taxation's website.
- Sales and Use Tax: The state sales and use tax will increase to five percent in Northern Virginia, bringing the total sales and use tax to six percent in the region. The reduced 2.5 percent sales and use tax on eligible food items will remain unchanged. The state vending machine sales tax rate will increase to six percent in Northern Virginia, bringing the total vending machine sales tax to seven percent.
- Transient Occupancy Tax: Businesses that collect the local transient lodging tax will begin collecting an additional state transient occupancy tax at two percent of the room rate, which will be remitted to the locality where the business is located.
- Grantor's Tax: An additional state grantor's tax of $0.15 per $100 (or portion of $100) of the purchase price or fair market value of the property, excluding any liens or encumbrances, will be assessed.
Any questions or concerns about the increased tax rates should be directed to the Virginia Department of Taxation at 804.367.8037.
Upcoming Tax Filing and Due Dates
- May 31
- June 1
- June 15
- Deadline to submit monthly Utility Tax reports and payments for water.
- June 17
- June 30
- Deadline to submit Meal Sales Tax reports and payments based on May's receipts.
- Deadline to submit Transient Lodging Tax reports and payments based on May's receipts.
- Deadline to submit Admissions Tax reports and payments based on May's receipts.
- Deadline to submit monthly Utility Tax reports and payments for gas and electricity.