Machinery & Tools

According to Section 58.1-3507 of the Warren County Code, certain machinery and tools are segregated for local taxation only. The tax rate for such machinery and tools in Warren County is $2.05, while the rate for the Town of Front Royal is $0.64.

Machinery and tools used in manufacturing, mining, processing, or reprocessing, radio or television broadcasting, dairy, dry cleaning, or laundry business, excluding machinery and equipment used by farm wineries, are listed as a separate class of tangible personal property. They are subject to local taxation only, and the tax rate imposed by a county, city, or town on such machinery and tools shall not exceed the rate imposed upon the general class of tangible personal property.

The value of machinery and tools segregated for local taxation, other than energy conservation equipment of manufacturers, is determined by depreciated cost or percentage of original total capitalized cost excluding capitalized interest.

All motor vehicles registered with the Department of Motor Vehicles and owned by persons engaged in the businesses mentioned above are taxed as tangible personal property by the county, city, or town. All other motor vehicles and delivery equipment owned by such businesses are included in and taxed as machinery and tools.

Form 762-M, covering this machinery and tools tax, is due to be filed by February 15th of each year. Machinery and tools in Warren County are assessed by a percentage of the original cost as follows:

  • First year: 70% of the original capitalized cost
  • Second year: 60% of the original capitalized cost
  • Third year: 50% of the original capitalized cost
  • Fourth year: 40% of the original capitalized cost
  • Fifth year or older: 30% of the original capitalized cost