Business Taxes

State Corporate Income Tax: 6%

Food and Beverage Tax: 7% on all prepared food and beverage sales

Admissions Tax: 5% on fees for admission or entrance into events or for amusement activities, such as movies, theater, concerts, lectures, etc.

Transient Occupancy Tax: 7% on fees charged for short-term lodging, such as hotels, motels, bed & breakfast establishments, etc.

Business Tangible Personal Property Tax: $2.12 per $100 of assessed value on tangible personal property employed in a trade or business (furniture, fixtures, equipment, machinery, tools, etc.)

Real Estate Tax: .96 per $100 of assessed value

Business and Professional License Fee: Harrisonburg employs a tier system for gross receipts $50,000 and less:

$10,000 or under in gross receipts = $0 (However, a license IS still required, even though there is no fee)
$10,001 – $25,000 = $25 fee
$25,001 – $50,000 = $50 fee

If, however, the estimate is greater than $50,000, a tax rate will be applied to your estimate. There are different rates for different types of businesses as follows:

Contractors – 16¢ per $100 gross receipts
Retail – 20¢ per $100 gross receipts
Repair, Personal and Business Services – 20¢ per $100 gross receipts
Financial, Real Estate and Professional Services – 58¢ per $100 gross receipts
Wholesale business $30 for first $1000 plus 17¢ per $100 gross receipts above $1000 ($50,000 threshold does not apply)

For more information, visit the Harrisonburg City Treasurer’s Website.

“Harrisonburg provides an ideal context for the highly technical work we perform for the U.S. Government. We are ideally located next to many excellent colleges and universities, which provide exceptional talent, and close enough to DC and Northern Virginia that we can conveniently interface with our customer and partners. To me, it comes down to quality of life. Our employees have very short commutes and there are a plethora of activities in the area that suit almost every interest.”

Mike Goertzen, Sr. Program Manager, Serco

“As Rocco considered options for our expansion, we were pleased with the partnership that Harrisonburg Economic Development provided as we worked our way through plan reviews, permit approvals, and inspections. It was helpful to have an ombudsman guiding us through the process. We are excited that we have the opportunity to continue to grow and invest in Harrisonburg.”

Fontaine Canada, President, Rocco Building Supplies