Smyth County has a favorable business environment, starting with the tax advantages that come with being in Virginia! The Commonwealth of Virginia provides several tax advantages, such as:

Sales and Use Tax is a total tax of 6.3% (4.3% state tax and 2% local tax)
A seller is subject to a sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property

Manufacturers do not pay tax on purchases used for production; distributors do not pay tax on items purchased for resale

The State of Virginia has NO TAX on: intangible property, corporate aircraft, manufacturers’ inventory, manufacturers’ furniture, fixtures .

Tax rate of 6%, not raised in thirty years.

Has a three-factor apportionment formula of payroll, property and sales (with sales double-weighted). A double-weighted sales factor has the effect of reducing tax liability for firms with significant sales to customers outside Virginia.

Tax credits for job creation and investment in economically stressed areas.

No franchise or net worth tax.

2023 Tax Rates:

Personal Property $2.30/$100

Business Equipment $2.30/$100

Computers (non-M&T) $2.30/$100

Merchant’s Capital $0.40/$100

Airplane $1.40/$100

Machinery & Tool $1.55/$100

Real Estate $0.74/$100

Mineral $0.74/$100

Public Service $0.74/$100

Mobile Home $0.74/$100 (Double Wide or Single Wide)

Transient Occupancy Tax Rate is 5%

PPTRA rate is 49%


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