Virginia Alexandria.-Actual rate of $4.10 per $100 of assessed valuation of automobiles and of all tangible personal property of business. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Arlington County.-Actual rate of $3.70 per $100 of assessed valuation of tangible personal property. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Fairfax County.—Actual rate of $4.05 per $100 of assessed valuation of automobiles and all business tangible personal property. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Fairfax City.-Actual rate of $4.00 per $100 of assessed valuation of automobiles and all business tangible personal property. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. Falls Church.-Actual rate of $4.00 per $100 of assessed valuation of automobiles and of all tangible personal property of business. The effective rate cannot be determined from the available information but is less than the actual rate. Motor vehicles must be listed separately and the fair market value according to the trade association handbook is used as the assessed valuation. No tax on household furnishings. District of Columbia SALES AND GROSS RECEIPTS TAXES General Sales and Use 3% on sale, lease or rental of tangible personal property and certain services. 1% on sales of food or consumption off the premises. 5% on rental of accommodations to transients. Reimbursement: Sales of food for consumption off the premises, 28¢ and over. Other sales, 15¢ and over. Maryland 3% on sale, lease or rental of tangible personal property and certain services, including charges for rental of accommodations to transients but not including food for off the premises. Reimbursement: Restaurant meals, $1.00 and over. Other sales, 25¢ and over. Virginia 2% state rate effective September 1, 1966. Alexandria, Arlington, Fairfax City, Fairfax County, and Falls Church have also adopted the optioinal 1% local sales tax. Alexandria, Fairfax City, Fairfax County, and Falls Church impose a 10% tax on monthly utility bills. In Alexandria, the maximum monthly tax is 50 cents on gas and $1 on electricity for residential users. In Fairfax City, the maximum monthly tax is $10 except that the maximum monthly tax on gas is $5. In Falls Church, the maximum monthly tax is $5 except that the monthly maximum tax on gas for heating is 50 cents for residential users. Maximum monthly tax on utility bills in Fairfax County is $1.00 per utility. District of Columbia Alcoholic Beverage 15¢ per gallon on wines containing 14% or less by volume of alcohol. 33¢ per gallon on other wines containing more than 14% alcohol. 45¢ per gallon on champagne, sparkling wines and wines artificially carbonated. $1.75 per gallon on spirits and alcohol. Maryland 20¢ per gallon on all wines. $1.50 per gallon on spirits. Virginia Wine sold by the Alcoholic Beverage Control Board to retailers or wholesalers is taxed at the rate of 35¢ per gallon in addition to any markup charged by the Board. Spirits and alcohol sold by the Alcoholic Beverage Control Board to consumers is taxed at the rate of 10% of the price charged in addition to any markup charged by the Board. District of Columbia Beer $2.00 per barrel of 31 gallons. Maryland 93¢ per barrel of 31 gallons. Virginia $6.00 per barrel of 31 gallons. Cigarette District of Columbia 3¢ per package of 20 cigarettes. Maryland 6¢ per package of 20 cigarettes. Virginia 2.5¢ per package of 20 cigarettes (Effective September 1, 1966). District of Columbia Recordation and Realty Transfer Deeds at the rate of one-half of 1% of the fair market value of the property (minimum tax-$1.00). Maryland Montgomery County.-Deeds and deeds of trust on real property at the rate of $1.10 per $500 of consideration. If deed and deed of trust are recorded at the same time, the tax is measured by the full consideration of the deed alone. In addition, county realty transfer tax at the rate of 1% of the full consideration on unimproved land, one-fourth of 1% on improved property valued at $20,000 to $50,000 and one-half of 1% on improved property valued at more than $50,000. Prince Georges County.-Deeds and deeds of trust on real property at the rate of .04% of the consideration. If deed and deed of trust are recorded at the same time, the tax is measured by the full consideration of the deed alone. Virginia Deeds and deeds of trust on real property at the combined state and local rate of 20¢ per $100 of consideration. District of Columbia 7¢ per gallon. Maryland Motor Vehicle Fuel Taxes 7¢ per gallon. Trucks with three or more axles and buses must purchase fuel or pay an equivalent tax amount for mileage operated in the state. District registered vehicles are exempt from this provision by reciprocal agreement. Virginia 7e per gallon (plus 2¢ surtax on property carriers). Trucks with three or more axles and buses must purchase fuel or pay an equivalent tax amount for mileage operated in the state. Motor Vehicle and Trailer Excise District of Columbia 3% of the fair market value. Maryland 3% of the fair market value. Virginia 2% of the fair market value (Effective September 1, 1966). District of Columbia 2% on net premium receipts. Maryland Insurance 2% on all new and renewable gross premiums allocable to Maryland with deductions allowed for returned premiums, dividends paid to policy holders, and refunds made to policy holders, except 1% rate on consideration paid for annuities. Domestic insurance companies are allowed a credit for franchise taxes paid. Life insurance companies having a home office in Maryland are allowed a credit for fees paid the Insurance Commissioners not exceeding 15% of the tax, in addition to credit for franchise taxes paid. Foreign insurance companies subject to retaliatory taxation if rates in home state are higher than those in Maryland Virginia 1% to 24% on gross premiums derived from business in Virginia without de duction for dividends or any other deduction except premiums returned on canceled or reduced policies depending upon type of insurance. Life insurance companies 24% (24% on premiums paid for special benefits), domestic mutual companies 1%, industrial sick benefit companies, 1%, workmen's compensation 22%, and all other companies 24%. Foreign insurance companies subject to retaliatory taxation if rates in home state are higher than those in Virginia. District of Columbia Gross Earnings (Banks, Financial Companies) 4% on gross earnings of banks. Interest paid to depositors is deducted in determining earnings subject to tax. 2% on gross earnings of building and loan associations. Dividends paid to depositors are not deducted in determining earnings subject to tax. Maryland None as such. Share tax on shares of stock in state and national banks, trust companies and financial institutions. The rate is the aggregate of all lawful levies for state purposes plus $1.00 per $100 of the value of the shares for county and/or city taxation. Virginia None as such. Shareholders taxed on shares in any incorporated bank, banking association or trust company, organized under the laws of Virginia or the United States, doing business in Virginia. The state rate is ten mills per $1.00 of valuation of the stock. City banks may be subject to city or town rates not in excess of 40% of the state rate. Town and county banks may be subject to town rates not in excess of 80% of the state rate. The municipal tax may be credited against the state tax. Gross Receipts (Electric, Gas, and Telephone Companies) District of Columbia 4% on gross receipts of electric, gas, and telephone companies. Maryland 2% franchise tax measured by gross receipts on electric, gas, and telephone companies. Virginia 1%% up to $100,000 of gross receipts and 3% on the excess over $100,000 of gross receipts of gas and electric companies. Telephone companies pay a tax graduated from 116% to 3% based on gross business and miles of line in the state. Special taxes of 10 of 1% on gross receipts of telephone, gas, and electric companies are imposed for the expense incurred by the state in making appraisals and valuations. In addition, local business privilege taxes based on gross receipts are levied on utilities. INCOME TAXES Individual District of Columbia 22% on first $2,000 of net taxable income. 3% on next $2,000 of net taxable income. 32% on next $2,000 of net taxable income. 4% on next $2,000 of net taxable income. 42% on next $2,000 of net taxable income. 5% on amounts in excess of $10,000. Personal exemptions $1,000 for a single person, $2,000 for a married person (Husband and wife), $2,000 for head of household (taxpayer and one dependent), $500 for each other dependent, $500 for each blind taxpayer or spouse, and $500 for each taxpayer or spouse over 65. Income tax law provides for employer withholding on residents and declaration and payment of estimated income tax liability. Maryland 2% on first $1,000 of net taxable income. 4% on next $1,000 of net taxable income. For 1967, a surtax of 20% is mandatory on all Maryland residents (50% surtax in Baltimore). Personal exemptions $800 each for taxpayer, spouse and each dependent. $800 additional for each blind taxpayer or spouse. $800 for each taxpayer, spouse and each dependent over 65. Income tax law provides for employer withholding on residents and declaration and payment of estimated income tax liability. Virginia 2% on the first $3,000 of net taxable income. 3% on the next $2,000 of net taxable income. 5% on amounts in excess of $5,000. Personal Exemptions $1,000 for a single person and $1,000 for a spouse. Taxpayer or spouse, blind or over 65, an additional $600 for each. Each dependent $300 for taxable years beginning January 1, 1968. Income tax law provides for employer withholding on residents for declaration and payment of estimated income tax liability. District of Columbia Corporation 5% on net income fairly attributable to trade or business conducted in the District and on income from District sources. In determining net income attributable to the District of corporations operating both within and without the District, a three-factor formula made up of property, payroll, and sales is used. Maryland 5% on net income of corporations engaged in trade or business in the state. Income from ground rents, rents and royalties and other income from real estate allocated wholly to the state. In determining other net income attributable to Maryland of corporations operating both within and without Maryland, a three-factor formula made up of property, payroll, and sales is used. Virginia 5% on net income of corporations doing business in the state. For corporations operating both within and without Virginia, certain classes of income, such as rents and royalties from real property in Virginia, are allocated wholly to the state. Income not allocable to Virginia is apportioned by multiplying that income by an allocation factor which is the average of a property factor, payroll factor, and sales factor. District of Columbia Unincorporated Business 5% on net taxable income fairly attributable to trade or business conducted in the District and on income from District sources after a $5,000 exemption. (Taxable unincorporated business income is not again taxed as personal income of a District resident.) Maryland None as such. (Individual income tax applies to business income within the state.) Virginia None as such. (Individual income tax applies to business income within the state.) OTHER TAXES Inheritance and Estate District of Columbia 1% to 15% depending on the class of beneficiary and the value of the share received after exemption. An estate tax is imposed on the estate of each decedent to absorb the 80% credit allowed under the Federal Estate Tax Act. No gift tax. Maryland 1% or 72% depending on class of beneficiary. An estate tax is imposed on the estate of each resident to absorb the 80% credit allowed under the Federal Estate Tax Act. No gift tax. Virginia 1% to 15% depending upon the class of beneficiary and the value of the share received after exemption. An estate tax is imposed on the estate of each resident to absorb the 80% credit allowed under the Federal Estate Tax Act. Gift tax at same rates as inheritance tax. District of Columbia Motor Vehicle and Trailer Registration $22.50 per year per automobile for weights of 3,499 pounds or less. $32.50 per year for weights of 3,500 pounds or more. Trucks and trailers are taxed by weight classes. Maryland $15.00 per year per automobile for weights up to and including 3,700 pounds. $23.00 per year for weights over 3,700 pounds. Trucks, trailers and buses are taxed by weight classes. Virginia $15.00 per year per automobile for weights of 4,000 pounds or less. $20.00 per year for weights over 4,000 pounds. Personal property tax also applies to all motor vehicles. (See personal property taxes.) Trucks, tractors and trailers are taxed by weight classes. Local tags must be obtained as follows: Alexandria.-$10.00 for passenger vehicles. $10.00 to $40.00 for commercial vehicles based on weight classes. Arlington.-$10.00 flat fee. $11.25 to $56.26 for commercial vehicles based on weight classes. Fairfax County.-$10.00 flat fee. |