BUSINESS TAXES

The Commissioner of the Revenue assesses tax on all types of business conducted in King William County. Business license taxes are determined from gross receipts. The tax rate also varies depending on the category of business. A new business must obtain a business license before conducting business in King William. There may also be certain zoning restrictions depending on the location and type of business, which will be addressed at the time of the license application. For more information, contact: Commissioner of the Revenue P.O. Box 217 King William, VA 23086 (804) 769-4942 www.kingwilliamcounty.us

LICENSE TAX RATES

Amusement Machine Operator: $50 flat fee plus $.10 per $100 of gross receipts only on share received by machines operated within King William County Barber, Beauty and Hairdressing Parlors: $.20 per $100 on all gross receipts Brokers & Commission Business: $.25 per $100 on all gross receipts Certified Public Accountant: $.25 per $100 on all gross receipts Child Care: $.25 per $100 on all gross receipts Commercial Services: $.20 per $100 on all gross receipts

Contractors: $.16 per $100 on all gross receipts Filling Station: $.20 per $100 on all gross receipts Hotel, Motel & Motor Court: $.20 per $100 on all gross receipts Janitorial Service: $.20 per $100 on all gross receipts Lawn & Grounds Maintenance: $.20 per $100 on all gross receipts Loan Company, Generally: $.25 per $100 on all gross receipts Merchant Placing Vending Machines: $.20 per $100 on all gross receipts Merchant, Retail: $.20 per $100 on all gross receipts Merchant, Wholesale: $.05 per $100 on all gross receipts Personal Services: $.20 per $100 on all gross receipts Photographer, Local: $.20 per $100 on all gross receipts Pistol Dealer: $.20 per $100 on all gross receipts Professional Services: $.25 per $100 on all gross receipts Real Estate: $.25 per $100 on all gross receipts Rental of Tangible Personal Property: $.20 per $100 on all gross receipts Repair Services: $.20 per $100 on all gross receipts Specialized Services: $.20 per $100 on all gross receipts Storage and Impounding: $.20 per $100 on all gross receipts Theaters or Motion Pictures: $.20 per $100 on all gross receipts Transfer & Hauling: $.20 per $100 on all gross receipts Funeral Homes: $.20 per $100 on all gross receipts Window Cleaning: $.20 per $100 on all gross receipts

WHO MUST FILE? From King William County Code Chapter 18 Section 38 License Requirement: Each person shall apply for a license for each business or profession when engaging in a business in the county if (i) the person has a definite place of business in the county; (ii) there is no definite place of business anywhere and the person resides in the county, or (iii) there is no definite place of business in the county but the person operated amusement machines or is classified as an itinerant merchant, peddler, carnival, circus, contractor subject to the Code of Virginia, 1950, as amended, Section 58.1-3715, or public service corporation. WHO NEED NOT FILE? From King William County Code Chapter 18 Section 37 Fee for issuing license; exceptions: The following businesses are entirely exempt from any license tax or administrative fee imposed by this chapter: 1. On any public service corporation except as provided on the Code of Virginia, 1950, as amended, Section 58.1-3731 or as permitted by other provisions of law; 2. For selling farm or domestic products or nursery products, ornamental or otherwise, or for the planting of nursery products, as an incident to the sale thereof, outside of the regular market houses and sheds of the county; provided, such products are grown or produced by the person offering such products for sale; 3. Upon the privilege or right of printing or publishing any newspaper, magazine, newsletter or other publication issued daily or regularly at average intervals not exceeding three (3) months, provided the publications subscription sales are exempt from state sales tax, or for the privilege or right of operating or conducting any radio or television broadcasting station or service; 4. On a manufacturer for the privilege of manufacturing and selling goods, wares and merchandise as wholesale at the place of manufacture. For a complete list of BPOL license exemptions, see King William County Code Chapter 18 Section 37.

King William County

Guide to Business Taxes

King William County Est. 1702

Your guide to tax and license requirements that may apply to your business.

Sally W. Pearson
Commissioner of the Revenue 180 Horse Landing Road P.O. Box 217 King William, VA 23086 (804) 769-4942 Fax: (804) 769-4902 www.kingwilliamcounty.us Please visit our virtual office at www.kingwilliamcounty.us/cor.html where you can obtain additional information and download and print the business license application.

GENERAL INFORMATION
Registering a Trade Name To register a trade name with the Clerk of Circuit Court of King William County, pick up the required forms from the Clerks Office or send a self-addressed, stamped envelope to request the forms by mail. A small fee is required. For more information, contact: Clerk of Circuit Court P.O. Box 216 King William, VA 23086 (804) 769-4938 Registering a Partnership or Corporation All Partnerships or corporations conducting business in the Commonwealth of Virginia must register with the State Corporation Commission. To register or to incorporate, contact: State Corporation Commission P.O. Box 1197 Richmond, VA 23218 804-371-9967 www.ssc.virginia.gov Federal Employer Identification Number Every employer is required to have a federal employer identification number. Contact your local Internal Revenue Office to obtain the federal form SS-4. For more information, contact: Internal Revenue Service 400 N. Eighth Street Room 1A-15 Richmond, VA 23240 (800) 829-1040 Workers Compensation Any employer who has three or more regular employees is required by law to furnish workers compensation insurance coverage at no charge to the employee. Insurance can be obtained from a private insurance

company or the employer can apply to be a selfinsurer. For more information, contact: The Insurance Department of the Virginia Workers Compensation Commission 1000 DMV Drive Richmond, VA 23220 (877) 664-2566 www.vwc.state.va.us Employee Income Tax Employers are required by law to withhold Social Security taxes (FICA) from wages of their employees. You (the business owner) are liable for these taxes whether or not they have been collected. You are also required to withhold Federal and State taxes at the request of the employee. These taxes should be filed and paid using Federal forms #941 and #501. Virginia Unemployment Tax Virginia, along with the Federal Government, levies a tax on employees wages. The tax is paid by the employer into a state fund, which pays the unemployment benefits. For more information, contact: Virginia Employment Commission 703 E. Main Street Richmond, VA 23219 (804) 786-1485 www.vaemploy.com Individual, Partnership and Corporation Income Tax You must file individual (for sole proprietor, Schedule C), partnership and corporate income taxes with the Internal Revenue Service. IRS Publication #334, Tax Guide for Small Businesses, discusses the above in detail. Health Department Barber shops, beauty salons and restaurants much be inspected by the Health Department. For more information, contact the King William Health Department at (804) 769-4988.

Alcohol Beverage License The Alcohol Beverage Control Department issues licenses for the sale of beer and wine by the drink. For more information, contact: Alcohol Beverage Control Department P.O. Box 27491 Richmond, VA 23261 (804) 213-4400 www.abc.virginia.gov

PERSONAL PROPERTY TAX

There is no tax on Rental Property, individual household furniture and other personal property except: 1. Individual Personal Property - Autos, trucks, motorcycles, boat trailers & utility trailers are assessed as of January 1. They are assessed at N.A.D.A average loan value as of January 1. The rate is $3.65 per $100 of assessed value. 2. Boats are assessed at $3.65 of $100 of assessed value based on N.A.D.A. Marine Pricing Guide. 3. Business Personal Property (Commercial) Assessed at 80/60/40/20/10% of original cost at the rate of $3.65 per $100. 4. Manufacturers (Machinery & Tools) - Assessed at 25% original cost at the rate of $2.30 per $100. 5. Mobile Homes - Assessed under the Real Estate rate of $.87 per $100 Personal Property Tax is an annual tax, due December 5. For more information, call (804) 769-4942.

VIRGINIA TAXES
Individual Income Taxes The State income tax is based on you federal income tax return. The King William County Commissioner of the Revenue provides assistance to taxpayers filling out State income tax returns. For more information, contact: Commissioner of the Revenue P.O. Box 217 King William, VA 23086 (804) 769-4942 www.kingwilliamcounty.us Partnership and Corporate Income Tax For more information on partnership and corporate income tax returns and employees income tax withholding, contact: Virginia Department of Taxation P.O. Box 1115 Richmond, VA 23218 (804) 367-8031 www.tax.virginia.gov Retail Sales Tax Every Individual, partnership, corporation, etc. operating a business as a retail dealer in Virginia must register with the Department of Taxation. Contact the Department of Taxation at the aforementioned address to obtain a Certification of Registration. Dealers must also collect the retail sales tax. Reports must be filed and the tax paid monthly or quarterly depending on the volume of business.

Business and Tangible Personal Tax King William levies a tax on tangible personal property employed in a trade business (furniture, fixtures, equipment, machinery and tools). A detailed depreciation schedule, including all fully depreciated items or a list of fixed assets itemizing all property must be filed no later than May 1. The payment date of business personal property tax is due on December 5. For more information, contact: Commissioner of the Revenue P.O. Box 217 King William, VA 23086 (804) 769-4942 www.kingwilliamcounty.us