42

WASHINGTON Business Journal

43

October 23, 2015

SPECIAL REPORT: A REGION DIVIDED

the cost of business

the tax man calls

VIRGINIA
6.0% Corporate tax rate
5.75% Income tax rate
on income above $17,000

As part of our discussion of the regions economy and efforts to

speak as one voice when it comes to economic development, we
decided to take a look at the tax burdens for businesses operating
in the local jurisdictions in Greater Washington. As you see here
and in the scenarios on the previous page, theres quite a disparity
in the region. Although no one is calling for local jurisdictions to
have uniform tax structures, the deep variations show how much
of a factor taxes can still be to new and relocating companies.

loudoun county
4.2% Business personal property
tax rate
1.135%

Commercial
real property tax

6.0% Sales tax

Gross receipts tax

5.75%
Sales tax

1.122%

Professional
services

Business
services

Software

Commercial
real property tax

0.33%

0.17%

0.17%

6.0% Sales tax

Range

Tax

$0 to
200,000

$30

More than
$200,000

Pay on rate per $100

based on the particular
business classification

0.33%

0.21%

Personal Property Tax Rates

All rates are per $100 of assessment

Tax

Rate

Aircraft and flight simulators

$0.01

Heavy construction machinery

$4.00

Machinery and tools as defined in VA Code Section 58.1-3507

$2.75

Mobile homes used as residences

$1.14

Personal property general class

$4.20

Personal property used in a research and development

business as defined in VA Code Section 58.1-3506 (A)(7)

$2.75

Personal property eligible vehicles of fire

and rescue volunteers and auxiliary and sheriffs auxiliary

$0.01

Personal property four-wheeled electrically powered

low-speed vehicles

$1.00

Personal property vehicles of eligible elderly or disabled

$2.10

Personal property vehicles powered solely By electricity

$4.20

Personal property vehicles specially equipped for use

by the handicapped

$2.10

Personal property vehicles, trailers and semi-trailers

of interstate motor carriers

$2.75

Personal property vehicles using clean special fuels

$4.20

Public utility personal taxable property (aircraft only)

$0.01

Public utility personal taxable property (excluding

vehiclesand aircraft)

$1.14

Public utility personal taxable property (vehicles only)

$4.20

Satellite manufacturing, testing, or operating equipment

as defined in VA Code Sec. 58.1-3506 (A)(21)

$0.01

Personal property owned and used by homeowners

associations as defined in VA Code Sec. 58.1-3506 (A)(24)

$0.01

0.034%
Personal property

tax rate for value

exceeding $225,000

prince william
county
3.7% Business
personal property tax rate

Gross receipts tax

Professional Business
services
services

district
9.4%
Corporate tax rate

Software

1.1215%
Commercial real property tax
6.0% Sales tax
Gross receipts tax
Professional
services

Business
services

Software

0.31%

0.19%

0.0%

Range

Tax

$0 to 10,000

$0

$10,001 to
50,000

$30

$50,001 to
100,000

$50

More than
$100,000

Pay based on specific

tax rates per each
$100 of gross receipts

0.27%

1.121%
Commercial real property tax
Gross receipts tax
Professional Business
services
services

1.127%
Commercial
real property tax
0.4%

property tax rate

6.0% Sales tax

city of fairfax
4.13% Business
personal property tax rate
Gross receipts tax
Professional
Business
services
services

arlington county
5.0%
Business personal

Software
0.0%

0.18%

Range

Tax

$0 to 10,000

$0

$10,001 to
50,000

$30

$50,001 to
100,000

$50

More than
$100,000

Utilize a tax rate

dependent on their
business activities
to determine the
tax due.

$5M to $8M

$0
5,500

$8M to $12M

10,800

$12M to $16M

14,000

More than $16M

16,500

Income
tax rate

Qualifier

6.0%

$10,000 to 40,000

7.0

40,000 to 60,000

8.5

60,000 to 350,000

8.95

More than 350,000

MARYLAND
8.25% Corporate tax rate
$300 Personal property filing fee
6.0% Sales tax
Income tax rate

Qualifier

$90 plus 4.5%

Income $3,000
to $100,000

$4,697.50
plus 5.0%

Income $100,000
to $125,000

$5,947.50
plus 5.25%

Income $125,000
to $150,000

$7,260.00
plus 5.5%

Income $150,000
to $250,000

$12,760.00
plus 5.75%

Income more
than $250,000

montgomery county
0.723% Real property tax
1.8075% Personal property tax
6.0% Sales tax
3.2% Income tax

prince georges county

1.0% Real property tax
2.5% Personal property tax
6.0% Sales tax
3.2% Income tax

Taxes by city All rates are per $100 of assessment

Taxes by city All rates are per $100 of assessment

Personal
property

Cities

Real
property

Personal
property

Barnesville

0.0514%

0.200%

Berwyn Heights

0.530

1.440

Battery Park

0.050

0.125

Commercial R.P.

0.630

0.000

Brookeville

0.200

0.450

Bladensburg

0.740

2.090

Chevy Chase Sec. 3

0.020

0.050

Bowie

0.400

1.000

Chevy Chase Sec. 5

0.000

0.000

Brentwood

0.411

1.750

Town of Chevy Chase

0.000

0.000

Capitol Heights

0.462

2.500

Chevy Chase View

0.022

0.000

Cheverly

0.580

1.100

Chevy Chase Village

0.083

0.660

College Park

0.335

0.838

Drummond

0.048

0.120

Colmar Manor

1.310

1.650

1.043% Commercial
real property tax

Friendship Heights

0.040

0.040

Commercial R.P.

1.030

0.000

Gaithersburg

0.262

0.530

Cottage City

0.650

1.290

6.0% Sales tax

Garrett Park

0.210

1.000

District Heights

0.949

1.210

Glen Echo

0.140

0.800

Eagle Harbor

0.480

0.000

Gross receipts tax

Professional Business
services
services

Kensington

0.136

0.650

Edmonston

0.660

1.500

Laytonsville

0.090

0.300

Fairmount Heights

0.460

0.000

Forest Heights

0.625

1.750

Martins Additions

0.047

0.500

Glenarden

0.331

0.000

North Chevy Chase

0.052

0.130

Greenbelt

0.813

1.723

Oakmont

0.040

0.100

Hyattsville

0.630

1.150

Poolesville

0.170

0.600

Landover Hills

0.520

1.250

City of Rockville Class 1

0.622

0.000

Laurel

0.710

0.000

0.740

2.000

city of alexandria
4.75%
Business
personal property tax rate

0.35%

Software
0.35%

Software

0.35%

Less than $5M

Real
property

0.58%

0.36%

Ballpark fee

Cities

0.21%

fairfax county
4.57% Business
personal property tax rate

DC gross receipts

city of falls church

4.84%

Business personal
property tax rate

0.52%

0.36%

0.047

0.000

City of Rockville Class 5

0.292

0.000

Mt. Rainier

0.860

1.980

0.665

1.000

City of Rockville Class 50

0.292

0.805

New Carrollton

Somerset

0.080

1.000

North Brentwood

0.440

1.200

Takoma Park

0.585

1.550

Commercial R.P.

0.586

0.000

Washington Grove

0.286

0.700

Riverdale Park

0.654

0.654

Software

Seat Pleasant

0.580

1.690

University Park

0.653

2.250

0.0%

Upper Marlboro

0.240

0.450

1.345%
Commercial real property tax
Gross receipts tax
Professional Business
services
services

City of Rockville Class 4

Morningside