Business Personal Property Tax
Note: New Business Tax System May Affect BPP Payments
The City is transitioning to a new tax system for business personal property taxes. If you need to make an on-line or phone payment for bills that were due before October 25, 2009 you may need to call 703.746.3909 to obtain your new account number.
The City levies a tax each calendar year on all tangible property used in a business, profession or occupation. Business tangible property includes furniture, fixtures and equipment, including but not limited to desks, typewriters, personal computers, movable partitions, drapes, cabinets and chairs.
In addition, all manufacturers, mining, processing or reprocessing companies, television or radio broadcasting companies, dairy, and dry cleaning or laundry businesses located in the City must pay a property tax on machinery and tools used in their business.
Filing Procedures
2009 Business Property Tax Return (PDF)
Each March, the Finance Department mails property tax returns to all businesses that filed in the preceding year. Businesses must file the returns with an itemized listing of all tangible personal property, including the date of acquisition, date of disposal and original purchase price. All personal property must be substantiated through the following documentation:
- Assets or Equipment Journal,
- Federal Form 4562, or
- Federal Schedule L of Form 1120
Business personal property forms must be filed by May 1 with:
Tax Services & Enforcement
PO Box 178
Alexandria, VA 22313
Email: 
Failure to File
If a business does not file a return by May 1, the City will conduct a statutory assessment of the account and bill accordingly.
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Computation of Tax
The City assesses all business personal property, except computers, at 80% of the property's purchase cost in its first year of service. In each subsequent year of service, the assessed value declines by ten percent until it reaches the minimum value of 20% of purchase cost in the seventh and later years of service. The City assesses computers at 65% of the property purchase cost in the first year of service, 45% the second year. 30% the third year, 20% the fourth year and 5% the remaining years.
The tax is established by multiplying the assessed value of the property by the property tax rate. The tax rate for business personal property is $4.75 per $100 of assessed value; the tax rate for machinery and tools is $4.50 per $100 of the assessed value.
City Council determines a separate property tax rate for machinery and tools during May of each year. The tax rates apply to the current tax year beginning January 1.
No Proration of Business Personal Property Tax
The assessed value of business property is determined as of January 1 of the year for which the tax is levied. There is no proration or refund of the tax for business property that is disposed of or moved out of the City after January 1. Likewise, business property that is located in the City after January 1 is not taxable for that tax year.
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How the Tax is Collected
Business personal property tax bills are mailed to property owners in September and payment is due by October 5 (or the following business day if October 5 falls on a weekend).
By Mail: Write your Business Personal Property account number on a check or money order and send to:
Treasury Division
P.O. Box 34745
Alexandria, VA 22334-0745
In Person: Pay at any Sun Trust Bank in the City (up to 5 p.m. on the due date) or at the Treasury Office from 8 a.m. to 5 p.m., Monday through Friday, at:
Treasury Division
301 King St, Room 1510
Alexandria, VA 22314
NOTE: The Treasury Office will accept cash, money orders, checks, cashier's checks or Discover Card for all on-time payments.
Drop Box: A drop box located on the Royal St. side of City Hall is available 24 hours a day. Please drop only checks and money orders, and put your account # on the check or money order.
By Phone: You can pay business personal property tax using your personal or business Visa, MasterCard, American Express, or Discover/Novus card. A convenience fee applies to this service. To make a tax payment by phone, call 1.800.2.PAY.TAX and enter jurisdiction code 1007 when prompted.
Online: You can pay business personal property tax using your personal or business Visa, MasterCard, American Express, or Discover/Novus card at Official Payments. A convenience fee applies to this service.
If you do not receive the tax bill, please contact us at the address below. You are still liable to pay the tax by the due date. Failure to receive a bill does not relieve the taxpayer from the payment of the tax, penalty and interest.
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Tax Forms and Taxpayer Assistance
For additional tax forms and taxpayer assistance, contact:
Tax Services & Enforcement
301 King Street, Room 1700
Alexandria, VA 22314
703.746.3909
Email:
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