Cost of Doing Business
The cost of doing business is an important factor when looking to locate or expand a business. This has not been overlooked by James City County in its continued commitment to being a business-friendly community.
Local Tax Structure
James City County levies one of the lowest and most stable tax rates in the Hampton Roads and Richmond regions.
- Real estate tax rate is currently $0.84/$100
- Personal property tax rate has remained constant for 20 years at $4 per $100
- Virginia corporate income tax has remained at 6% since 1972
- Virginia has a 3-factor apportionment formula of payroll, property and sales (with sales double-weighted). The double-weighted sales factor has the effect of reducing tax liability for firms with significant sales to customers outside Virginia
State TaxesBelieve it or not, companies have improved their bottom lines just by locating in Virginia. From soft costs like healthier, more productive workers, to hard costs like cheaper, available and reliable electricity, these companies have benefited from the combination of resources that only a Virginia location can offer.
- Virginia has one of the lowest average worker's compensation costs in the nation and has been consistently among the lowest cost states for over 15 years.
- The unemployment insurance tax rate is the 6th lowest in the nation and is 12% lower than the national average.
- In winter 2017, the average cost per unit of electricity for the industrial sector was 6.45 cents in Virginia, compared to 6.63 cents for the nation.
- The 6% corporate income tax rate has not increased in over 40 years, since 1972.
- Building costs in Virginia range from 6% to 21% below the national average, depending on the region of the Commonwealth.