Surplus Utility Infrastructure in a Business Friendly Community

In Lynchburg our industries enjoy surplus utility capacity to support their operational needs and a low-tax business environment to support their growth.  Competitive rates for electricity, gas and water combine with state and local tax codes designed to incentivize investment to truly define what a business-friendly community is all about.

Utilities

Lynchburg is served by premier utility providers, including the city’s Water Resources Department.  The region’s primary electricity provider, American Electric Power, serves Lynchburg with five 138KV transmission lines and a 765 KV backbone system, with commercial rates lower than 96 percent of all electric utilities in the U.S.  Along with traditional utility infrastructure, Lynchburg enjoys the bandwidth that technology industries require.

Utility Providers
Electricity American Electric Power
Natural Gas Columbia Gas
Water Water Resources, City of Lynchburg
Sewer/WWT Water Resources, City of Lynchburg
Solid Waste Disposal            Region 2000 Services Authority
Telecommunications Verizon-Virginia 

Download the City of Lynchburg FY 2017 Rate Study & Annual Report

Utility Rates*
Electricity (Large General Service)
Range ₵1.820 – ₵20.000/kWh
Natural Gas  (Large General Service Firm Option)
    $4.2718/Mcf for First 1,000 Mcf
    $3.6689/Mcf Over 20,000 Mcf
Water (Volume Charge) View Schedule
    $3.69/HCF
Sewer (Volume Charge) View Schedule
    $5.65/HCF
Solid Waste Disposal (Commercial Tipping Rate)
    Free – Inert Material
    $37/ton – Other Material

 

*In some cases commercial utility rates may be negotiable.  Rates above based on recent published rates but are not guaranteed.  Contact the utility provider for specific rates and rebates.

Stable and Competitive Taxes

The business environment in Lynchburg is vibrant in part because of sensible local and state tax codes that help foster investment and expansion.  Virginia is the fourth most tax-competitive state in the nation, and our local taxes reflect that standard.  In many instances, the rates below may be eligible for reimbursement or credits depending on your business, revenues or expenditures.  Please visit our “Incentives & Programs” section for more information, or contact the Office of Economic Development at 434-455-4491 or emailmelissa.dismond@lynchburgva.gov

Corporate Income Tax
Rate of 6%
    Unchanged in Over Forty Years
    Three-Factor Apportionment Formula of Payroll, Property and Sales (Sales Double-Weighted)
    A Single-Factor Apportionment Election Based on Sales for Manufacturing Companies
    Tax Credits for Job Creation and Investment
    No Franchise or Net Worth Tax

 

Sales and Use Tax
Rate of 4%
Tax on Gross Receipts from Retail Sales or Leases of Taxable Tangible Personal Property
Manufacturers Exempt from Tax on Purchases for Production
Distributors Exempt from Tax on Items Purchased for Resale 

 

LocalOptionSalesTax

Local Taxes

Local taxes are administered by the Commissioner of the Revenue.  Businesses are classified as Manufacturers or Non-Manufacturers for local tax purposes.  For information on tax reimbursement opportunities to support investment and expansion, view our “Incentives and Programs” page or contact the Office of Economic Development at 434-455-4491 or email melissa.dismond@lynchburgva.gov.

All Businesses

Real Estate Tax
Nominal Tax Rate per $100 of Assessed Value         $1.11

 

Business Personal Property Tax
Nominal Tax Rater per $100 of Assessed Value        $3.80
Value Used for Tax Calculation Original Cost   
Assessment Ratio (in years)  
1-5 years old 30%
6+ years old 25%

 

Manufacturing Businesses 

Machinery and Tools
Nominal Tax Rater per $100 of Assessed Value        $3.00
Value Used for Tax Calculation Original Cost
Assessment Ratio (in years)  
1-5 years old 30%
6+ years old 25%

 

Non-Manufacturing Businesses

Business, Professional and Occupational License Tax
All Businesses with Gross Receipts Less Than $100,000          $50.00
Retail Merchants 20 cents per $100 of Gross Receipts
Contractor  16 cents per $100 of Gross Receipts
Business/Personal Service 36 cents per $100 of Gross Receipts
Professional Service  58 cents per $100 of Gross Receipts
Wholesale Merchant $20 plus 28 cents per $100 of Gross Purchases

 

Hospitality & Service Sector Taxes

Local Sales and Use Tax
Retail Sales and Leases of Tangible Property        1%

 

Meals & Lodging

Prepared Foods and Beverages

6.5% of Sale

Lodging for Compensation Per Room Per Night

$1 plus 5.5% of Sale 

Amusement Tax
Event or Activity Admission           7% of Sale
Stay Updated On The Latest in Lynchburg Business
Sign-up For Lynchburg's Bi-Monthly Business Insider Newsletter
Sign Up Here
Translate »