the cost of business: the tax man calls

OctOber 23, 2015 4342 WASHINGtON Business Journal

DC gross receipts Ballpark fee

Less than $5M $0

$5M to $8M 5,500

$8M to $12M 10,800

$12M to $16M 14,000

More than $16M 16,500

district9.4% corporate tax rate

0.0034% Personal property tax rate for value exceeding $225,000

5.75% Sales tax

Income tax rate

Qualifier

6.0% $10,000 to 40,000

8.5 40,000 to 350,000

8.95 350,001+

Taxes By CITy All rates are per $100 of assessment

Cities Real property

Personal property

barnesville 0.0514% 0.200%

battery Park 0.050 0.125

brookeville 0.200 0.450

chevy chase Sec. 3 0.020 0.050

chevy chase Sec. 5 0.000 0.000

town of chevy chase 0.000 0.000

chevy chase View 0.022 0.000

chevy chase Village 0.083 0.660

Drummond 0.048 0.120

Friendship Heights 0.040 0.040

Gaithersburg 0.262 0.530

Garrett Park 0.210 1.000

Glen echo 0.140 0.800

Kensington 0.136 0.650

Laytonsville 0.090 0.300

Martins Additions 0.047 0.500

North chevy chase 0.052 0.130

Oakmont 0.040 0.100

Poolesville 0.170 0.600

city of rockville class 1 0.622 0.000




Somerset 0.080 1.000

takoma Park 0.585 1.550

Washington Grove 0.286 0.700

montgomery county0.723% real property tax

1.8075% Personal property tax

6.0% Sales tax

Taxes By CITy All rates are per $100 of assessment

Cities Real property

Personal property

berwyn Heights 0.530 1.440

commercial r.P. 0.630 0.000

bladensburg 0.740 2.090

bowie 0.400 1.000

brentwood 0.411 1.750

capitol Heights 0.462 2.500

cheverly 0.580 1.100

college Park 0.335 0.838

colmar Manor 1.310 1.650


cottage city 0.650 1.290

District Heights 0.949 1.210

eagle Harbor 0.480 0.000

edmonston 0.660 1.500

Fairmount Heights 0.460 0.000

Forest Heights 0.625 1.750

Glenarden 0.331 0.000

Greenbelt 0.813 1.723

Hyattsville 0.630 1.150

Landover Hills 0.520 1.250

Laurel 0.710 0.000

Morningside 0.740 2.000

Mt. rainier 0.860 1.980

New carrollton 0.665 1.000

North brentwood 0.440 1.200


riverdale Park 0.654 0.654

Seat Pleasant 0.580 1.690

University Park 0.653 2.250

Upper Marlboro 0.240 0.450

prince george’s county1.0% real property tax

2.5% Personal property tax

6.0% Sales tax

mAryLAnd8.25% 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

ArLington county5.0% business personal property tax rate

1.121% commercial real property tax

6.0% Sales tax

Professional services

Business services

software

0.36% 0.35% 0.18%

GRoss ReCeIPTs Tax

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.

sPeCIaL RePoRT: A REGION DIVIDED


Business services

software

0.4% 0.27% 0.0%

GRoss ReCeIPTs Tax

city of fAirfAx4.13% business personal property tax rate


VirginiA6.0% corporate tax rate

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

Loudoun county4.2% business personal property tax rate


6.0% Sales tax


Business services

software

0.33% 0.17% 0.17%

GRoss ReCeIPTs Tax

Range Tax

$0 to 200,000

$30

More than $200,000

Pay on rate per $100 based on the particular business classification

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 sheriff’s 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 vehicles and 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

PeRsonaL PRoPeRTy Tax RaTes All rates are per $100 of assessment


Business services

software

0.33% 0.21% 0.21%

GRoss ReCeIPTs Tax

prince wiLLiAm county3.7% business personal property tax rate


6.0% Sales tax


Business services

software

0.58% 0.35% 0.35%

GRoss ReCeIPTs Tax

city of ALexAndriA4.75% business personal property tax rate


6.0% Sales tax


Business services

software

0.52% 0.36% 0.0%

GRoss ReCeIPTs Tax

city of fALLs church4.84% business personal property tax rate


fAirfAx county4.57% business personal property tax rate


6.0% Sales tax


Business services

software

0.31% 0.19% 0.0%

GRoss ReCeIPTs Tax

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

The CosT of BusIness

the tax man callsAs part of our discussion of the region’s 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, there’s 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.

the cost of business: the tax man calls

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