Companies have improved their bottom lines just by locating in Accomack County, Virginia

There is no question that the cost of doing business here is significantly lower than any of the nearby MSAs. Almost all hard costs like wages, taxes, and general cost of doing business offer substantial cost savings. Soft cost offer savings too. Accomack workers have a strong and productive work ethic that is derived from its farm and seafaring heritage. Add to the quality of life here on the Shore, and it's a perfect combination! Where else can you go to see the sunrise on the Atlantic Ocean and see the sunset on the Chesapeake Bay!!

Bottom Line Facts

• Virginia manufacturers have one of the lowest average workers’ compensation costs in the country. At $2.47 per $100 of payroll in January 2007, it ranks 6th lowest nationally and is more than 60 percent lower than the U.S. average.
• Unemployment tax burden that is 40 percent lower than the national average.
• Average hourly manufacturing wages that are lower than the national average.
• Virginia’s competitive corporate tax rate is 6%, and has not been raised in more than 30 years
• In 2007, the average cost per unit of electricity for the industrial sector is 4.33 cents in Virginia, compared to 6.00 cents for the nation.
• Building costs in Virginia range from 6-20 percent below the national average, depending on the region of the Commonwealth.  

^{Manufacturers' Taxes on Machinery and Tools}

^{Business License Tax}

^{Utility Taxes}

^{Automobiles and Light Trucks}

^{Taxes on Real Estate}

^{Non Manufacturers’ Taxes of Tangible Personal Property}

Introduction

Nationally recognized for its conservative fiscal practices, Virginia has one of the fairest and most stable tax structures of the 50 states. Both businesses and individuals carry their share of the tax load. The General Assembly has kept taxes on industry competitive and has eliminated many tax irritants. The state corporate income tax rate, one of the lowest in the nation, has not increased since 1972. Virginia also offers a very modest local tax bill for industry. Items taxed at the state level are not taxed at the local level, with the exception of sales and use tax; and Virginia taxes new and existing industries equally.

Tax Jurisdiction

The Virginia Economic Development Partnership Guide to Local Taxes summarizes local taxes on businesses by Virginia’s cities and counties. Virginia differs from most states in that its counties and cities are separate taxing entities. A company pays either county or city taxes, depending upon its location; it does not pay both. If a company is located within the corporate limits of a town, it pays county taxes and town taxes, except for utility taxes which are paid only to the town if levied by both jurisdictions. Town rates may be found in the publication: Local Tax Rates, from the Virginia Department of Taxation. In almost every instance, a town uses the same assessment policy for tax purposes as the county in which it is located.

Virginia statutes permit the creation of sanitary and other special purpose districts. If a company is located in one of these districts, it would pay a modest levy in addition to the basic county or city levy for some or all property taxes.

Local Taxes on Manufactures

At the local level, a Virginia Manufacture is liable for the following taxes:

• Real estate tax
• Machinery and tool tax
• Industrial utility taxes
• Tangible personal property tax on road licensed vehicles

In Virginia, a manufacture’s inventory, furniture, fixtures, and corporate aircraft are not taxed, nor does a manufacturer pay business license tax on gross receipts when the sales are at wholesale and occur at the place of manufacture. Manufacturing companies also receive broad exemptions from state and local sales and use taxes on purchases used directly in production and in research and development.

For Enterprise Zone information contact:

Tom Brockenbrough
Planning Department
Accomack County, Virginia
P.O. Box 686, Accomac VA 23301
Phone: 757-787-5726
tbrockenbrough@co.accomack.va.us

For Foreign Trade Zone information contact:

Rick Baldwin
Spaceport Manager
Mid-Atlantic Regional Spaceport
rick@marsspaceport.com
757-824-2335

Information from the Virginia Economic Development Partnership and the County of Accomack.