Local governments levy personal property taxes on non-real estate corporations. These taxes can apply even if the corporation has its principal place of business outside of the city, state, or county levying the tax.
The Fairfax County personal property tax is paid on a business-owner-owned property such as cars and equipment used in business operations.
If you own a corporation with personal property, but your principal business is outside of Virginia, it must be posted annually before January 5th to avoid interest and penalties.
Ways to File Business Return
The following are three different ways to file the Fairfax County personal property tax return in the City of Fairfax:
People who live or work in Fairfax can go to DMV’s website and register their corporate vehicle(s) directly with the Commonwealth of Virginia (DMV). There is no fee to register your corporation online; however, there is a $2.50 processing fee if you choose to print your registration.
File The Return By Mail Or In Person
You can also request an ad-valorem tax bill by completing the online form on the City of Fairfax Personal Property Tax website.
Request An Extension
If you cannot file your return by January 5th, you can request an automatic six-month extension to file.
You will have to pay a $10 fee for the extension, but it is your only option if you cannot file online or in person.
Requirements to File
To file, your corporation must have a physical address in Fairfax City. You cannot file as an individual if you do not own the property personally. It is also important to file as soon as possible after January 5th since filing late will result in fees and penalties.
The fine for filing your return late is $5 per day for each vehicle up to 25 days for a maximum penalty of $125. The maximum fine for filing an incomplete return is $10 per day for each vehicle up to 25 days with no maximum limit.
Who is Eligible to File?
All corporations with business personal property located in Fairfax City must file, including those not owned by a city resident. It includes multi-state and international businesses as long as they have taxable personal property in the city limits.
If you have more than one automobile or piece of equipment required to be registered as business property for tax purposes, you must file for each one separately.No matter how many cars or pieces of equipment you have, you can only claim one for a business exemption.
Taxable items include trucks, vans, jeeps, other passenger vehicles that are not subject to the state sales tax because they are over 6,000 pounds; watercraft; trailers; computer software; farming equipment; construction machinery; and equipment used for manufacturing.
If you run a corporation, you must file a separate tax return for each one. If your corporation is multi-national or has business personal property in different cities, it’s essential to file a separate return for each city where you have taxable property. Failure to do so will result in fines and penalties as high as $10 per day.