Machinery & Tool Taxes

Manufacturer Requirements


Manufacturers are not subject to the business license tax, but do need to register for Machinery & Tools taxes. Call us at 757-253-6699 for instructions. Your business may be required to register with the Internal Revenue Service and the Department of Taxation for the collection of payroll and sales taxes.

Machinery & Tools


The tax for machinery and tools is $4 per $100 value. Machinery and Tools is equipment used by a manufacturer directly in the production of goods. Returns are due no later than May 1 for equipment in use as of Jan. 1 of a tax year. Machinery and Tools are valued at 25% of original cost of each item, including any associated freight, installation and finance costs.