Virginia arcade personal property taxes

mwade109

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Hello, being the 1st year in the arcade business I am looking to find out if all the games would be considered 'personal property' and therefore have to pay personal property tax on them?

I consider them inventory because I am always more than happy to sell all but about 5 of them and I would call them inventory at that point. Any arcade owners here in Va that can help?

Mike
 
I don't live in Virginia, but I don't think you have to worry about it.

Hello, being the 1st year in the arcade business I am looking to find out if all the games would be considered 'personal property' and therefore have to pay personal property tax on them?

I consider them inventory because I am always more than happy to sell all but about 5 of them and I would call them inventory at that point. Any arcade owners here in Va that can help?

Mike
 
I'm pretty sure the personal property tax only applies to personal vehicles. I don't know what taxes/fees there may be on coin-op equipment, however.
 
Consult a tax attorney or CPA

The only advice needed is quoted above.

Virginia is a little strange with personal property taxes related to a business so find a good accountant if your running an amusement vending route.

You will run in to County specific issues as well. If you are a game re-seller then there is potentially an inventory tax (value of items in inventory at the end of the fiscal year) and the inventory tax could apply to items for a route operator as well.

If you operate a route you will also need a business license in each county you place equipment and the fee is based on the revenue earned. (Most Counties require a business license if you place equipment within their borders regardless if you have a main business license in your home County).

Good luck.
 
Typically, you arenot paying taxes on inventory or assets. Specifically assets, you depreciate over time. You typically pay taxes on profit or get write offs for losses. So if you purchased a machine for $50 and sold it for $100 you would owe taxeson $50 profit (in very simplistic terms). You may also owe the state sales tax on that transaction.
 
Consult your CPA, yes. I can tell you in MD we pay personal property tax on all machines on the street. You have to list names and addresses of all locations as well as equipment in those locations when you file your taxes. You file a separate pp tax return with the state. The state obtains this information and disperses it to the various counties you do business in. Each individual county sends you a bill for personal property tax. If you don't file the pp tax return, and the state knows you do business in various counties, the counties will send you an estimated tax bill which you must pay in order to obtain your yearly business license.

Again, this is MD. VA's tax code may certainly be different.

Mike
 
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