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Taxes: Businesses

Taxes for Businesses

Business Taxes Business Related Taxes
Bank Franchise Tax Business License Tax Admissions Tax Food and Beverage Tax
Business Personal Property Tax Machinery and Tools  Short-Term Rental Tax Transient Room Tax
Public Service Corporation Personal Property Tax    
  Electric Consumption Tax Electric Utility Tax
  Natural Gas Consumption Tax Natural Gas Utility Tax
     

 
Cigarette Stamps Public Rights-Of-Way Use Fee
Tax Rate Schedules

 


 

Admissions Tax

City of Newport News Code of Ordinances §40-230.

Excise Tax filing forms here.

The City of Newport News charges a tax on events to which admission is charged.

Admission charges include the following (exclusive of any federal tax):

  • Charges for admission to any amusement or entertainment, including a charge for season tickets.
  • Cover charges or a charge made for the use of seats or tables.
  • When a person is admitted free of charge, but is subjected to a service charge, the service charge is considered a charge for admission.

There is no tax on admissions charged for the following:

  • Attendance at any event whereby the gross receipts go wholly to charitable purpose or purposes.
  • Attendance at public and private elementary, secondary, and college school-sponsored events, including events sponsored by school-recognized student organizations.
  • Entry into museums, botanical or similar gardens, and zoos.
  • Admissions charged to participants in order to participate in sporting events.

Every business that charges admission to an activity is obligated to charge and collect the tax from each person who pays the charge, and remit the admission tax to the Commissioner of the Revenue no later than the 20th of each month following the month of collection.

For assistance with Admissions tax, please call the Related Taxes Department (757) 926-8644.

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Bank Franchise Tax

City of Newport News Code of Ordinances §40-72.

The City of Newport News imposes upon each bank located within the boundaries of the city a tax on net capital equaling 80% of the state rate of franchise tax set forth in §58.1-1204 of the Code of Virginia.

In the event that any bank located within the boundaries of the city is not the principal office but is a branch extension or affiliate of the principal office, the tax upon such branch shall be apportioned as provided by §58.1-1211 of the Code of Virginia.

On or after the first day of January of each year, but not later than April first of any such year, all banks whose principal offices are located within this city shall prepare and file a return in duplicate as provided in §58.1-1207 of the Code of Virginia.

In the event that the principal office of a bank is located outside the boundaries of the city and such bank has branch offices located within the city, in addition to the filing requirements set forth above, any bank conducting such branch business shall file a copy of the real estate deduction schedule, apportionment and other items which are required in §58.1-1207, §58.1-1211 and §58.1-1212 of the Code of Virginia.

The due date for the payment of the bank franchise tax is June 1st of each year.
For assistance with bank franchise tax, please call (757) 926-8752.

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Business License Tax

City of Newport News Code of Ordinances §23.

§58.1-3700 of the Code of Virginia determines which business activities are required to obtain a business license, also known as a Business, Professional, and Occupational License (BPOL) tax.

Most BPOL taxes are based on the gross receipts earned by a business in the previous year. The tax rate varies according to the type of the business.

New Businesses:

New businesses must apply for a license prior to beginning business and pay the tax or fee within 30 days of the start of business. See Required Forms below.

For most new businesses, the business owner estimates the gross receipts for the first year of operation. At the end of the calendar year, tax paid using an estimated gross receipts amount as the basis for the tax, will require adjusting the estimated gross receipts to reflect the actual gross receipts for the year. This adjustment may generate an additional tax liability or a refund.

All persons or entities conducting business in the City must contact the Codes Compliance Department to determine if a Certificate of Use and Occupancy is required.

Contractors should contact the Codes Compliance Department for bonding and permit information.

The Department of Development publishes a booklet Starting a Business in the City of Newport News that may be helpful to new business owners.

Renewals and Quarterly Payments:

Licenses expire at the end of each calendar year, and must be renewed by March 1st.

Auto Dealers are currently the only business activity permitted to elect a quarterly payment method for the business license tax.
Quarter due dates are as follows:

  • 1st Quarter (January 1 – March 31) - Due Date April 20th
  • 2nd Quarter (April 1 – June 30) - Due Date July 20th
  • 3rd Quarter (July 1 – September 30) - Due Date October 20th
  • 4th Quarter (October 1 – December 31) - Due Date January 20th

Required Forms:

All persons or entities conducting business in the City must complete a Business Classification Information (BCI) Form, which will aide in classifying the business, and determining the tax liabilities. Make checks payable to the City of Newport News, for all business license tax payments.

Certificates, permits, or licenses from other State and City agencies may be required for some business activities before a business license will be issued. (e.q. Health permit, State contractor license, cosmetology license, etc.)

Businesses operating with a trade name must register the trade name with the Clerk Of Courts office or with the Commissioner of the Revenue’s office while applying for a business license. The charge to register a trade name is $10. Make checks payable to Rex A. Davis, Clerk of Courts.

Non-Profit organizations conducting a business activity must submit a Business Classification Information supplement for Non-Profit organizations in addition to a BCI.

Corporations, Limited Liability Corporations, and General Partnerships are required to complete a list of partners form.

All Contractors must complete a Workers’ Compensation form and provide a list of all subcontractors each tax year.

Renewal applications and all associated forms are automatically mailed to all businesses on file the last week of December.

For businesses with more than one location, all applicable documents must be submitted for each location.

Processing Time:

The time required to determine the various tax liabilities depends upon the amount of information needed or research required to make a final determination. The more common business activities require approximately 30 minutes to 1 hour once a business classification determination has been made by the Business License Tax and the Business Related Tax representatives.

For assistance with business license tax, please call the Business License Department (757) 926-8651.

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Business Personal Property Tax

City of Newport News Code of Ordinances §40-220.1.

The City of Newport News charges a tax on tangible personal property used in a business or to earn income within the City. The types of business tangible personal property include, but are not limited to furniture, fixtures, tools, machinery, computers, signs, leasehold improvements, leased equipment, hand tools, farm equipment, and any other equipment. Exceptions include computer application software and pollution control equipment.

All individuals, partnerships, corporations, or other entities owning or using tangible personal property located in Newport News are required to file a Business Personal Property Return (Form COR4) and to submit an itemized list of all business personal property utilized in the business as of January 1st of the current year.

All returns and list must be filed to the Commissioner of the Revenue on or before March 1st of each year.

 The method of assessment for Business Personal Property is one-third (1/3) of the total original cost.

The Personal Property tax rates are set by City Council. Refer to the Personal Property tax rate schedule for current tax rates.

The Business Personal Property Return form can be downloaded from the download area.

For assistance with Business Personal Property tax, please call the Related Taxes Department (757) 926-8644.


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Cigarette Stamps

City of Newport News Code of Ordinances §40-156.

The City of Newport News charges a tax upon each and every sale of cigarettes sold within the city. The cigarette tax stamp must be applied to each package of cigarettes prior to offering the cigarettes for sale.

Every dealer and every seller can obtain the cigarette tax stamps from the Commissioner of the Revenue when the cigarette tax payment is submitted to the city Treasurer.

The Cigarette Stamp tax rates are set by City Council. Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with Cigarette tax, please call the Related Taxes Department (757) 926-8644.

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Short-Term Rental Tax

City of Newport News Code of Ordinances §40-245.

Excise Tax filing forms here.

The City of Newport News charges a tax on the gross proceeds of any business engaged in the short-term rental business. A business is engaged in the short-term rental business when:

1. Not less than 80% of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of short-term rental property, other than heavy equipment property for periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee: or

2. Not less than 60% of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of heavy equipment property for periods of 270 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee.

The Short-Term Rental Tax is charged instead of the business personal property tax that would normally be assessed on qualifying business equipment.

"Short-Term Rental Property" is all tangible personal property held for rental and owned by a person in the short-term rental business except: trailers as defined in §46.2-100 of the Code of Virginia, and other personal property required to be licensed or registered with the Virginia Department of Motor Vehicles, the Virginia Department of Game and Inland Fisheries, or the Virginia Department of Aviation.

“Heavy equipment property” means rental property of an industry that is described under code 532412 or 532490 of the 2002 North American Industry Classification System as published by the United State Census Bureau, excluding office furniture, office equipment, and programmable computer equipment and peripherals as defined in §58.1-3503 A 16 of the Code of Virginia.

Every qualifying short-term rental business is obligated to charge and collect the tax from the customer at the time of the rental and the quarterly reporting of short-term rental property tax must be filed no later than the 15th day of the month following the end of each quarter. The filing required to be submitted on the 15th will be your billing and is to be paid no later than the last day of the month following the end of the quarter of collection.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with the Short-Term Rental property tax, please call the Business Related Taxes Department at (757) 926-8644.
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Electric Utility Tax

City of Newport News Code of Ordinances §40-117.

In accordance with §58.1-3814 of the Code of Virginia, the City of Newport News charges a monthly tax, on a "per meter" basis, on each purchase of electricity delivered to consumers by a service provider. This is in addition to the Electric Consumption Tax.

Each provider of electric service is obligated to charge and collect the natural gas utility tax from the purchaser, and remit the tax to the Commissioner of the Revenue no later than the last day of the next month after of the month the taxes are collected.

The Electric Utility and Consumption Tax Monthly Remittance form can be downloaded from the download area.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with the Electric Utility tax, please call the Related Taxes Department (757) 926-8644.

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Electric Consumption Tax

§58.1-2900 — §58.1-2903 of the Code of Virginia mandates that each consumer of electricity must pay an electric utility tax on all electricity consumed each month. This tax is in addition to the Electric Utility Tax and is comprised of the state consumption tax, the special regulatory tax, and the local consumption tax.

Each provider of electric service is obligated to charge and collect the electric consumption tax from the consumer, and remit the local tax to the Commissioner of the Revenue no later than the last day of the next month after of the month the taxes are collected.

The Electric Utility and Consumption Tax Monthly Remittance form can be downloaded from the download area.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with Electric Consumption tax, please call the Related Taxes Department (757) 926-8644.

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Food and Beverage Tax

City of Newport News Code of Ordinances §40-190.

Excise Tax filing forms here.

7.5% Food and Beverage Tax Rate Chart click here.

The City of Newport News charges a tax on all food and beverages, including alcoholic beverages, sold in or from a food establishment, whether prepared or consumed in the food establishment or not, and whether consumed on the premises of the food establishment or not.

"Food Establishments" includes any place in or from which food or beverages or both, are sold and includes but not limited to, any restaurant, dining room, grill, coffee shop, cafeteria, cafe, snack bar, lunch counter, movie theater, delicatessen, confectionery, bakery, eating house, eatery, drugstore, ice cream/yogurt shops, lunch wagon or truck, pushcart or other mobile facility from which food is sold, public or private club resort, bar lounge, or other similar establishment, public or private.

The seller is obligated to charge and collect the food and beverage tax from the purchaser and remit the tax to the Commissioner of the Revenue on or before the 20th of each month following the month of collection. If the food and beverage tax is paid on time, the seller is allowed a 3% deduction of the amount of the tax due when submitting his return and paying the amount that is due.

You may obtain a copy of the "Guidelines for Food and Beverage Tax" contacting the Related Tax Department.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with Food & Beverage tax, please call the Related Taxes Department (757) 926-8644.

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Machinery and Tools Tax

City of Newport News Code of Ordinances §40-220.2.

The City of Newport News charges a tax on Machinery and Tools used in a business or to earn income within the City. Machinery and Tools are limited to property used in manufacturing, water well drilling, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning or laundry business activity. Exceptions include computer application software and certified pollution control equipment.

All individuals, partnerships, corporations, or other entities owning or using Machinery and Tools in the business of manufacturing, water well drilling, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning or laundry businesses located in Newport News are required to file a Machinery and Tools (Form COR5) and to submit an itemized list of all business personal property utilized in the business as of January 1st of the current year. All returns and list must be filed to the Commissioner of the Revenue on or before March 1st of each year.

The method of assessment for Machinery and Tools is one-third (1/3) of the total original cost.

The Personal Property tax rates are set by City Council. Refer to the Personal Property tax rate schedule for current tax rates.

The Machinery and Tools Property Return form can be downloaded from the download area.

For assistance with Machinery and Tools tax, please call the Related Taxes Department (757) 926-8644.


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Natural Gas Utility Tax

City of Newport News Code of Ordinances §40-118.

In accordance with §58.1-3814 of the Code of Virginia, the City of Newport News charges a monthly tax, on a "per meter" basis, on each purchase of natural gas delivered to consumers by pipeline distribution companies and gas utilities, classified by "class of consumers" as such term is defined in §58.1-3814(J) of the Code of Virginia. This tax is in addition to the Natural Gas Consumption Tax.

Each provider of electric service is obligated to charge and collect the natural gas utility tax from the purchaser, and remit the tax to the Commissioner of the Revenue no later than the last day of the next month after of the month the taxes are collected.

The Natural Gas Utility and Consumption Tax Monthly Remittance form can be downloaded from the download area.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with Natural Gas Utility tax, please call the Related Taxes Department (757) 926-8644.

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Natural Gas Consumption Tax

§58.1-2904 — §58.1-2907 of the Code of Virginia mandates that each consumer of natural gas must pay a tax on the consumption of all natural gas each month not more than 500CCF. This tax is in addition to the Natural Gas Utility tax and is comprised of the state consumption tax, the special regulatory tax, and the local consumption tax.

Each provider of electric service is obligated to charge and collect the electric consumption tax from the consumer, and remit the local tax to the Commissioner of the Revenue no later than the last day of the next month after of the month the taxes are collected.

The Natural Gas Utility and Consumption Tax Monthly Remittance form can be downloaded from the download area.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with Natural Gas Consumption tax, please call the Related Taxes Department (757) 926-8644.

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Public Rights-Of-Way Use Fee

The City of Newport News charges a monthly right of way use fee on each local telephone access line. The telephone service provider charges the fee to the purchaser of local telephone service.

The Virginia Department of Transportation annually sets the rate for the right of way use fee.

Each and every provider of local telephone service is obligated to charge and collect the right of way use fee from the purchaser and remit the fees to the Commissioner of the Revenue on a quarterly basis no later than the last day of the second calendar month following the calendar quarter in which the fees are collected.

For assistance with Public Rights-Of-Way Use fee, please call the Related Taxes Department (757) 926-8644.

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Public Service Corporation Personal Property Tax
 

City of Newport News Code of Ordinances §40-220.4 Aircrafts, Automobiles, and Trucks

City of Newport News Code of Ordinances §40-220.5 Personal Property

The City of Newport News charges a tax on all automobiles and trucks of public service corporations in the City of Newport News, and other property segregated to and taxable by the city except as otherwise specially taxed or exempted from taxation by the laws of the Commonwealth of Virginia or by the ordinance of the City of Newport News, Virginia.

The City of Newport News also charges a tax on all tangible personal property of public service corporation, except aircraft, automobiles and trucks.

All public service corporations are required to submit their annual reports to the Division of Public Service Taxation (PST), of the Virginia State Corporation Commission. The Division of Public Service Taxation is responsible for the assessment of all property of Public Service Corporations for local taxation. This includes electric, gas, telecommunications, and water companies. The Division of Public Service Taxation submits an annual assessed valuation report to the Commissioner of the Revenue.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with Public Service Corporation Personal Property tax, please call the Related Taxes Department (757) 926-8644.

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Transient Room Tax

City of Newport News Code of Ordinances §40-135.

Excise Tax filing forms here.

The City of Newport News charges a tax to each transient on the total amount paid for board or lodging or for any transient to any hotel.

Every business providing the board or lodging is obligated to charge and collect the tax from the customer at the time of the rental, and remit the daily rental property taxes to the Commissioner of the Revenue no later than the 20th of each month following the month of collection.

"Transient" is a person, who for any period of not more than 60 days in a row, obtains board or lodging in any hotel, either at their own expense or at the expense of someone else.

"Board and lodging" includes services, meals, food, board, lodging or space furnished to any transient.

"Hotel" is defined as a public or private hotel, inn, tourist home or house, motel, rooming house or other lodging place with the city offering board and lodging, either or both for compensation, to any transient.

Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with Transient Room tax, please call the Related Taxes Department (757) 926-8644.

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