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The Commissioner of the Revenue is the chief taxing authority for the locality
in which they are elected. This office is responsible for maintaining real estate records,
assessing all personal and business property, issuing business licenses, administering meals
and transient occupancy taxes and assisting citizens with filing Virginia income taxes. The position
of Commissioner of the Revenue is a constitutional office within the Commonwealth of Virginia and the City of Bedford,
with elections occurring locally every four years.
PERSONAL PROPERTY TAXATION
All motor vehicles (including cars, trucks, motor homes, and motorcycles), campers, boats,
trailers, and airplanes normally garaged or parked in the City of Bedford are subject to tangible
personal property tax. Vehicles are discovered for taxation through DMV registrations and taxpayer notifications.
Taxpayers are required to notify the Commissioner of Revenue at (540)587-6051 of any changes; names, addresses,
when a vehicle is sold, disposed, moved out, purchased or moved in. Currently the motor vehicle class is assessed
at 100% of the NADA Trade-In Value. If no book value is available, a percentage of the cost is used (depreciation allowance)
for the assessed value. The City of Bedford does not prorate Personal Property taxes. Any property owned January 1
of each year is taxed for the entire year. Items that are purchased or moved in after January 1 are not assessed
until the following year; items sold or moved out are assessed for the full current year. The current tax rate for
this class of property is $2.43 per $100 of assessed value.
PERSONAL PROPERTY TAX RELIEF
The 2005 General Assembly capped the total cost of Car Tax Relief for the Commonwealth of Virginia
at $950 million. Each locality's share of the $950 million is based upon Car Tax Relief reimbursements for the Commonwealth
to the Locality for Tax Year 2004. These funds are allocated to provide tax relief for qualifying vehicles in Bedford City.
Bedford City Council, in accordance with Bedford City Ordinance and State Code, sets the percentage of tax relief at a
level anticipated to exhaust the PPTR funds provided. The tax on the first $20,000 of value of your personal car, motorcycle
and pickup trucks with a gross weight under 7,501 pounds qualifies for the reduction. The current relief percentages is 48%.
The obligation to pay this tax for vehicles valued at $1,000.00 or less has been eliminated. Vehicles used for business use
are not eligible for Car Tax Relief.
DOES YOUR VEHICLE QUALIFY FOR THE CAR TAX RELIEF?
If you can answer YES to any of the following questions, your motor vehicle is considered by State Law to have a
business use and does NOT qualify for Car Tax Relief.
- Is more than 50% of the mileage for the year used as a business expense for the Federal Income Tax purposed OR
reimbursed by an employer?
- Is more than 50% of the depreciation associated with the vehicle deducted as a business expense for Federal
Income Tax purposes?
- Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
- Is the vehicle leased by and individual and the leasing company pays the tax without reimbursement for the individual?
BUSINESS PERSONAL PROPERTY - MACHINERY AND TOOLS
All business machinery, tools, furniture, fixtures and other equipment owned on January 1st and
used in a trade or business is subject to personal property tax. Business personal property is assessed
at 52% of original cost. All machinery and tools used in the manufacturing process is subject to machinery
and tools tax. Machinery and Tools are assessed at 60% of original cost. In both of the above cases a complete
list of assets including purchase date and cost is due to be filed by May 1st of each year.
for machinery and tools, the original cost is used for tax purposes and the assessment ratio is 60%.
- Nominal tax rate per $100 of assessed valuation - $1.30
- Effective tax rate per $100 - $0.78
The business personal property is assessed at of 52% of original cost.
- Nominal tax rate per $100 of assessed valuation - $1.50
- Effective tax rate per $100 - $0.78
BUSINESS LICENSE TAX
All businesses in the City of Bedford are required to be licensed under the provisions of the BPOL
ordinance. This includes retail, service (business and personal) professional, wholesale and contractor categories.
The tax is based on a percentage of the gross income derived from the business. Each category has a different rate. Business
licenses are due to be renewed by March 1st of each year and expire on December 31st of each year.
For information on starting a new business in Bedford, click HERE!
Click this link to open a New Business Checklist (pdf)
It includes links and phone numbers for all important local, state, and federal agencies that you need to contact to
get your business running and legal!
REAL ESTATE
The Commissioner of the Revenue maintains all real estate records for property located within the
City of Bedford. Real estate records
are listed on the City's web page and tax maps are accessible in the Commissioner's office as well as on the
City's web page ( Geographic
Information System). A general reassessment of all properties occurs every four years. Guidelines for values are determined
by sales studies. The City of Bedford offers tax relief for the elderly and disabled that provides a discount on tax bills if certain
criteria is met. The discount applies to the house and one acre of land. Applicants must be at least 65 years old or permanently and
totally disabled with income less than $15,000.00 and net worth less than $40,000.00. Applications are taken each year between July 1st
and August 1st based on the previous 12 months of income, etc. Applicants have to reapply every year.
Real Estate is assessed at a 100% ratio.
- Nominal tax rate per $100 of assessed valuation - $0.86
- Effective tax rate per $100 - $0.86
MEALS AND TRANSIENT OCCUPANCY TAX
All businesses in the City of Bedford that sell prepared foods or provide lodging are required to collect 5%
tax from the consumer. This includes all food prepared for consumption including beverages whether eaten on or
off premises. The transient occupancy tax must be collected from persons who rent facilities for less than 30
consecutive days. This applies to cottages, bed and breakfasts, condos, motel or hotel rooms, rooming houses and tourist homes.
The tax is remitted to the Commissioner of the Revenue by the 20th of each month on forms provided by the
Commissioner's office.
STATE INCOME TAX
The Commissioner of the Revenue is responsible for reviewing and processing
Virginia tax returns for the citizens of Bedford City. The office staff reviews each
return for accuracy. If errors are found the taxpayer is notified and the return is
corrected. The Commissioners office is on line with the Department of Taxation to
allow data entry of returns into the tax system in Richmond. This allows for very
quick refunds. The Commissioner of the Revenue provides assistance in filing of Virginia
income tax returns if the taxpayer brings in a copy of their federal return and W2's. Also,
all Virginia (and many federal) individual income tax returns are available in the office.
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