| Office | Virginia Beach Commissioner of the Revenue, Business Property Division |
|---|---|
| Paperwork | Business tangible personal property return (form CR-13) |
| Timing | File by March 1 for every business operating in the city on January 1 |
Watch for this: Selling after January 1 does not erase that year's return. Decide in the purchase agreement who pays the bill when it arrives.
The January 1 Rule
Every business operating in Virginia Beach on January 1 files a business tangible personal property return with the Commissioner of the Revenue by March 1 of that year.
The return lists the cost of furniture, fixtures, machinery, tools and computer equipment.
The city uses those costs to set the tax for the year. The bill comes later from the City Treasurer.
Selling Partway Through the Year
Many Virginia localities assess the whole year to whoever owned the property on January 1, even if the business sells in the spring.
Others handle a midyear sale differently. Ask the Business Property Division how Virginia Beach treats your situation before you set the closing date.
Whatever the answer, put it in writing in the purchase agreement. Buyers and sellers often split the year's tax by the number of days each owned the business.
Report What Actually Changed
If you sold the assets, tell the Commissioner's office the date of the sale and the name of the buyer so next year's return does not come to you. If you closed the old entity, say so.
The buyer files its own return as a new business in the city for the next January 1.
Why Buyers Care About Your Old Returns
A buyer will compare your returns with the equipment list in the deal. If the returns list far less than the shop holds, the buyer may worry about back taxes or a city review. If they list equipment you sold years ago, you may have overpaid.
Clean up the list before you market the company. Our guide on recasting your profit and loss statement covers other records buyers check.
Business Vehicles
Trucks and vans registered to the business are handled separately from the business property return. When titles move to the buyer, both sides should check how the city records the change and who owes that year's vehicle tax.
Outside the City Line
If the business is in Chesapeake, Norfolk or another nearby city, the return goes to that city's own Commissioner of the Revenue. Each one sets its own forms and rates. See nearby markets for local notes.
Checklist for the Sale Year
- File the return by March 1 if you were operating on January 1
- Ask how a midyear sale is assessed
- Write the split of the tax bill into the agreement
- Notify the Commissioner's office of the sale date
Related steps are in the Virginia Beach business license and sales tax successor liability.
This page is general information, not tax or legal advice. Confirm current forms and rules with the Commissioner of the Revenue, your CPA or your attorney. To plan your sale, request a sale estimate.