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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:  .93 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.