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Taxes & Utilities      
 


Taxes in Newport News are relatively low, in keeping with the Virginia tradition of fiscal conservatism. Financially, the City is well managed. It has earned an Aa2 bond rating from Moody’s and an AA bond rating from Standard and Poor’s. Newport News has no local income tax and no inventory tax.

Major Taxes Affecting Businesses in Newport News

State Corporate Income Tax 6%
State Indivudual Income Tax 5.75% maximum rate
State Sales Tax 4% plus 1% local option
State Motor Vehicles Tax 3%
Real Property Tax $1.10/$100 assessed value
Machinery and Tool Tax $3.75/$100
Business Personal Property Tax $4.25/$100
Vehicle Tax $4.25/$100 book value
Hotel Tax 7.5%
Meal Tax 6.5% plus sales tax
Business License: Business License Tax Rate Schedule
Business Services $0.36/$100 gross receipts
Contractors $0.15/$100 gross receipts
Professional Office $0.58/$100 gross receipts
Retail $0.20/$100 gross receipts
Wholesale $50.00 on first $10,000 gross receipts + 20/$100 on additional
Manufacturers and Distributors None
Software Developers None
Updated 07.01.11


Taxes (Paid by Individuals)

State Income Tax 5.75% (top rate)
Municipal Income Tax None
Real Property Tax $1.10/$100 assessed value
Personal Property Tax (vehicles* and boats) $4.25/$100 book value
Sales Tax 5%
Meals Tax 6.5% (plus sales tax)
*The personal property tax on vehicles assessed at less than $25,000 is reduced by 70%
Source: City of Newport News, Department of Development
Updated 07.01.11
 
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State Corporate Income Tax Rates, Select States 2008

Pennsylvania 9.99%
Massachusetts 9.50%
New Jersey 9.00%
Rhode Island 9.00%
California 8.84%
Ohio 8.54%
Maryland 8.25%
Connecticut 7.50%
Illinois 7.30%
New York 7.10%
North Carolina 6.90%
Tennessee 6.50%
Georgia 6.00%
VIRGINIA 6.00%
Kentucky 5.85%
Florida 5.50%
South Carolina 5.00%
Alabama 4.29%
Source: Virginia Economic Development Partnership
Updated 01.11.11


State and Local Sales Tax Rates, Selected States 2008

Tennessee 9.0%
New York 8.0%
Illinois 8.0%
Alabama 7.0%
Rhode Island 7.0%
Florida 7.0%
North Carolina 7.0%
Ohio 7.0%
New Jersey 7.0%
California 6.0%
Connecticut 6.0%
Kentucky 6.0%
Michigan 6.0%
Pennsylvania 6.0%
Maryland 6.0%
South Carolina 6.0%
Georgia 5.0%
Massachusetts 5.0%
VIRGINIA 5.0%
Source: Virginia Economic Development Partnership


Total Taxes as a Percentage of Personal Income, 2007

New York 13.8
Rhode Island 12.7
Washington, DC 12.5
Ohio 12.4
Connecticut 12.2
New Jersey 11.6
Minnesota 11.5
California 11.5
Michigan 11.2
Washington 11.1
North Carolina 11.0
Kentucky 10.9
West Virginia 10.9
Illinois 10.8
Maryland 10.8
Pennsylvania 10.8
Indiana 10.7
Massachusetts 10.6
Mississippi 10.5
Colorado 10.4
Georgia 10.3
Arizona 10.3
VIRGINIA 10.2
Nevada 10.1
Oregon 10.0
Florida 10.0
South Carolina 9.0
Alabama 8.8
Delaware 8.8
Tennessee 8.5
Updated 01.11.11


Newport News Building Permit Activity, 2004-2006

 
2004
2005
2006
Residential      
  Single Family 184 Units 176 Units 242 Units
  Multi Family 492 Units 441 Units 261 Units
Industrial $25.1 million $47.8 million $20.5 million
Office $10.5 million $23.4 million $14.0 million
Retail $19.2 million $34.6 million $10.8 million
Hotel $8.0 million $23.8 million $2.5 million
Source: City of Newport News Department of Codes Compliance
Updated 01.11.11


Newport News Tax Rates, Utility Charges and Development Fees Effective July 1, 2011

Business License Fees
 
Total Gross Receipts
$0 - $50,000
$50,001 - $100,000
$100,001 - $500,000
$500,001 and over
Contracting & Constructing $30 $50 $0.15 per $100 total gross receipts
Financial, Real Estate or Professional Services Receipts $30 $50 $0.58 per $100 total gross receipts
Repair, Personal, Business and Other Services $30 $50 $0.36 per $100 total gross receipts $0 - $5,000,000 $18,000 on first $5,000,000 gross receipts plus $0.05 per $100 on gross receipts over $5,000,000
Retail Merchants $30 $50 $0.20 per $100 gross receipts $0 - $500,000 $100,000 on first $50,000,000 plus $0.05 per $100 gross receipts over $50,000,000
Wholesale Merchants $50.00 on first $10,000 purchases plus $0.20 per $100 of gross purchases over $10,000
Note: Minimum license fees may apply. Not all business license catagories are represented above.
Taxes
Real Estate Tax $1.10/$100, full assessed value
Business Personal Property Tax $4.25/$100, original value
Vehicle Tax $4.25/$100, full assessed value
  Boats under 5 tons $1.00/$100, full assessed value
  Boats 5 tons and over $0.90/$100 (initial assessment based on 85% of cost, reduced 5% for each year since purchase; subsequent assessments = 90% of previous year's assessment to minimum assessment of $3,000)
  Boat Motors/RVs/Campers $1.00/$100, full assessed value
  Airplanes $2.10/$100, full assessed value
  Mobile Homes $1.10/$100, full assessed value
Handicap Equipment $1.00/$100, full assessed value
Machinery and Tool Tax $3.75/$100, assessed at 1/3 original value
Public Service Corporations  
  Personal Property $1.10/$100, full assessed value
  Airplane/Car/Truck $4.25/$100, full assessed value
State Communications Sales Tax 5%
Public Right-of-Way Use Fee $0.89 monthly per subscriber per line (applies to cable television and landline telephone service)
State Telephone 911 Tax $0.75 monthly per landline telephone line
  NNE 911 System Tax $2.58 per line
Local Telephone Utility Tax 20% on first 300
Electrical Utility Tax
  Residential $1.54 + $0.016398 per kWh, $3.08 maximum monthly levy
  Commercial $2.29 + $0.013859 per kWh on first 2,721 kWhs + $0.003265 per kWh on remainder, $80.00 maximum monthly levy
  Industrial $2.29 + $0.015455 per kWh on first 2,440 kWhs (Tier One) +$0.003265 per kWh on remainder (Tier Two) $80.00 maximum monthly levy
Gas Utility Tax
  Residential $1.51 per month
  Commercial/Industrial $1.29 + $0.067602 per CCF on first 128.91 CCFs (Tier One) +$ 0.032576 per CCF on remainder (Tier Two) $55.00 maximum monthly levy
Sales Tax 5.0% (4.0% state and 1% local option)
Meals Tax 6.5% (plus sales tax)
Hotel Tax 7.5%
Admissions Tax 7.5%
Daily Rental Tax 1.0%
Cigarette Tax 20’s/ $0.75 25’s/ $0.9375 30’s/ $1.125
Utilities: Water
Meter Size
Monthly Rate
Meter Charge 5/8" $5.60
  3/4" $6.20
  1" $7.90
  1-1/2" $10.10
  2" $16.30
  3" $61.70
  4" $78.40
  6" $117.60
  8" $162.40
  10" $224.00
Fire Hydrant Deposit 1" $290.00
  3" $755.00 with RPZ Backflow Preventer
  3" $600.00 Truck Mount without RPZ Backflow
Fire Hydrant 1" $25.00
  3" $75.00
Flow Charge $2.92 per 100 cubic feet of flow (A summer surcharge rate of $0.59 is charged to customers whose summer usage [May through October] exceeds average usage for the previous winter [November through April]).
Fire Protection Service Fee 5/8" $1.40
  3/4" $1.40
  1" $2.00
  1-1/2" $2.70
  2" $4.10
  3" $5.40
  4" $5.40
  6" $6.80
  8" $6.80
  10" $6.80
Annual Fire Sprinkler
Connection Size
Charge
  2" $63.00
  3" $82.00
  4" $100.00
  6" $163.00
  8" $200.00
  10" $238.00
  12" $288.00
Connection Fees
Tap and Pipe Size
Charge
Reduced Charge*
  1/2" tap, 3/4" pipe $690.00 $285.00
  3/4" tap, 3/4" pipe $715.00 $300.00
  1" tap, 1-1/2" pipe $800.00 $360.00
  1-1/4" tap, 1-1/2" pipe $1,700.00 $610.00
  2" tap, 2" pipe $1,900.00 $700.00
  Larger than 2" Service Actual cost + 10% Actual cost + 10%
  *Reduced charges where service pipeline installation is performed by the applicant in conjunction with water pipeline extension agreement.
NOTE: Required permit and street repair charges additional.
System Development Meter Size Charge
  5/8" $1,450.00
  3/4" $2,175.00
  1" $3,625.00
  1-1/2" $12,325.00
  2" $16,675.00
  3" $38,715.00
  4" $90,625.00
  6" $191,400.00
  8" $314,215.00
  10" $502,715.00
Utilities: Sewer Connection Fees
  Single-family, existing $581.00 per unit ($290.00, if paid within 12 months of sewer extension completion)
  New Subdivision $2,910.00, plus $1,164.00 lateral installation fee, plus $8.00 per linear front foot (frontage on public street)
  Multi-family $407.00 per unit, plus $49 per linear front foot (frontage on public street)
  Commercial $581.00, plus $407.00 for each additional lateral, plus $49 per linear foot (frontage on public street)
  Industrial $581.00, plus $49 per linear foot (frontage on public street)
  Mobile Home $407.00 per unit, plus $49 per linear foot (frontage on public street)
Utilities: Wastewater/Sewer Meter Rate
Facility Charge (Hampton Roads Sanitation District - HRSD) 5/8" $1,540.00
  3/4" $2,340.00
  1" $4,350.00
  1-1/2" $10,565.00
  2" $19,785.00
  3" $47,920.00
  4" $89,830.00
  6" $217,710.00
  8" $407,870.00
  10" $663,890.00
Sewer User Fee $1.63/100 c.f., plus surcharge of $0.90 for each 100 ft. or fraction thereof
Sewer Treatment Charge Cubic Ft of Flow Quarterly Rate
  0-3000 $1.72/100 c.f. ($4.91/minimum)
  3,001 and over $1.55/100 c.f.
Sewer Treatment Surcharges  
  Biochemical Oxygen Demand (BOD) in excess of 250 mg/l $24.05 per 100 lbs.
  Total Suspended Solids (TSS) in excess of 250 mg/l $22.51 per 100 lbs.
  Phosphorus (PO4-P) in excess of 6 mg/l $239.83 per 100 lbs.
  Total kjeldahl Nitrogen (TKN) in excess of 35 mg/l $28.54 per 100 lbs.
Stormwater Management Fees  
  Single-family Residential $65.40 annually per single family unit
  Multi-family Residential $25.68 annually per unit
  Non-residential $65.40 annually per 1,777 square feet of impervious surface
Development Fees
Subdivisions
Preliminary Plan Filing Fee $250.00, plus $10.00 per lot
Development Plan Filing Fee $400.00, plus $30.00 per lot
Resubmittal Fee $275.00
Phase Filing Fee $100.00
  Inspection Fee Schedule $250.00, plus # of units X unit cost X 1.8%
Site Plans
  Class I Filing Fee $375.00, plus $130.00 per acre
  Class I Basic Fee $125.00, plus $125.00 per acre
  Class I Revised Plan Filing Fee $250.00
  Class I Revised Plan Filing Fee (phased or altered) $100.00
Plat Filing Fee $200.00, plus $25 per lot; plus $640.00 (printing and recordation of 30 sheets)
  Class II Filing Fee $220.00
  Class II Inspection Fee $35.00
  Class II Revised Plan Filing Fee $100.00
Land Disturbance Permit Performance Bond required $2,000 minimum or $500.00 per acre or portion thereof.
  Less than 2,500 square ft. No charge
  2,500-10,000 square ft. $175.00
  10,001-20,000 square ft. $225.00
  20,001-30,000 square ft. $275.00
  30,001-40,000 square ft. $300.00
  40,001-50,000 square ft. $325.00
  More than 50,001 square ft. $350.00 plus $25.00 for square footage in excess of 60,000 square feet (in increments of 10,000 square feet or portion thereof)
Open Burning Permit $25.00 per acre
Reinstatement Fee $50.00
Right-of-way Permit $100,000 public liability insurance holding City harmless; performance bond equal to cost of right-of-way construction, $5,000.00 minimum
  Residential entrance $65.00
  Commercial entrance $200.00
  Working within a Right-of-way $50.00
Building Plans, Review Fee $30.00 > 2,499 square feet
  $55.00 2,500 - 4,999 square feet
  $110.00 5,000+ square feet
Special Exception Zoning Application $250.00 non-refundable fee; $100.00 deferral fee, if applicant requests it
Conditional Use Permit Application $800.00; $200.00 deferral fee, if applicant requests it
Change of Zoning $650.00 + $150.00/acre or portion thereof, $800.00 minimum; $200.00 deferral fee, if applicant requests it
Traffic Signal Information Request $50.00 per request (may be more for maps and detailed investigations)
Wetlands Application $200.00 permit application fee
Building Permits - Construction Permit
  Residential 0.44% x 88% of BOCA-established cost +1.75% state surcharge ($55.96 minimum)
  Non-Residential 0.48% x 88% of BOCA-established cost +1.75% State surcharge ($55.96 minimum)
Building Permits - Plumbing $10.18 per fixture; $15.26 per water distribution system, or building drain connection; $30.53 per sewer connection, manhole, roof drain or area drain; $50.88 per gas line or medical gas line ($55.96 minimum)
  Annual Plumbing Permit $55.96 for up to 5 fixtures
Service Panels Amperes Charge
  0-125 $55.96 single-phase/ $86.49 three-phase
  126-150 $86.49 single-phase/ $111.93 three-phase
  151-200 $111.93 single-phase/ $167.93 three-phase
  Over 200 $167.93 single-phase/ $198.41 three-phase plus $30.53 for each additional 50 amperes or fraction thereof
  Temporary Service $50.88
  Increase of Service $50.88 up to 200 amps + $15.26 for each 50 amps over 200
  Residential 0.44% installation and materials cost ($55.00 minimum)
  Non-Residential 0.48% installation and materials cost ($55.00 minimum)
Elevator Operating Permits
  Semi-annual inspection $50.00
  Maintenance inspection $85.00
Sign Permit 2% installation and materials ($50.00 minimum/$252.50 maximum)
Utility Reset Inspection Fee $35.00
Alteration or Repair Permit
  Residential 0.44% construction cost ($55.00 minimum)
  Non-Residential 0.48% construction cost ($55.00 minimum)
Demolition Permit
  0-250 sq. ft. $40.00
  250 square feet + $100.00
Temporary Certificate of Occupancy $40.00
Certificate of Occupancy $55.00
NOTE: There is a state surcharge of 1% of the permit fee for all building, electrical, plumbing and mechanical permits Taxes, charges and fees are those commonly applicable to businesses in Newport News. The foregoing list may not include specialized circumstances.
Updated 07.01.11


Your firm can be assured of comprehensive, reliable and moderately priced utility services when locating in Newport News. Utility providers serving Newport News offer ample capacity in the power, water, sewage and telecommunications systems to serve your firm now and to meet its expanding needs into the future.

ELECTRIC
Electric power is provided by Dominion Virginia Power, a subsidiary of Dominion Resources, Inc. The electric utility serves more than 3.8 million customers in five states. Dominion Virginia Power has 89 interconnected generating units, providing a generating capability of more than 18,600 megawatts. An efficient mix of fossil fuel and nuclear generating plants, combined with judicious purchases of electricity from other systems keeps electric rates at moderate levels.

The utility has 6,000 miles of electric transmission lines. Dominion Virginia Power expects to maintain a reserve capability of between 17 and 23 percent in the twenty-first century. System wide reliability reached 99.98% during 2001 and is even higher in most Newport News industrial and business parks. Dominion Virginia Power can also offer incentive rate pricing to high-demand users.

Typical Electric Utility Costs, Winter 2007

 
Newport News
Atlanta
Chicago
New York
Philadelphia
40 kw/10,000 kwh/mo
$802
$1,030
$961
$2,096
$1,450
1,000 kw/400,000 kwh/mo
$21,834
$31,397
$45,556
$67,686
$40,964
50,000 kw/15,000,000 kwh/mo
$962,792
$1,154,999
n/a
$3,066,069
$1,878,587
Source: Edison Electric Institute


Dominion Virginia Power Capacity and Demand, 2010

 
Summer
Winter
Total Capability
19,961 MW
21,006 MW
Peak Customer Demand
16,783 MW
15,244 MW
Source: Dominion Virginia Power, capability includes NUGs and capacity purchases.
*Customer demand is based on Summer and Winter peak dates. Winter peak demand is based on preliminary data.


Virginia Power Incentive Rate Pricing Qualifying Demand: 500 Kw - 5 Mw Savings on Demand Portion of Electric Bill

Year 1
Year 2
Year 3
Year 4
Year 5
25%
20%
15%
10%
5%
Source: Dominion Virginia Power

Dominion Energy Generating Capability, 2010

Nuclear
5,852
Coal-fired 7,898
Natural Gas 6,339
Oil 3,161
Hydro/Biomass/Wind 2,485
Purchases/Other 1,880
Total 27,615
Source: Dominion Virginia Power

 

NATURAL GAS
New industrial natural gas service is readily available from Virginia Natural Gas (VNG), a subsidiary of AGL Resources. Its service area stretches from Virginia Beach to Hanover County near Richmond. VNG serves more than 218,000 residential households. It provides service to more than 12,100 commercial and industrial customers, including 150 large industrial customers with interruptible service. VNG has more than 8,000 miles of main. Natural gas is delivered via three pipeline gates on the Virginia Peninsula.

Typical Gas Utility Costs, in Newport News, 2009

Commercial
 
500 therms/mo.
$516
 
1,000 therms/mo.
$1,031
Industrial
  10,000 therms/mo. $7,140
  50,000 therms/mo. $35,708
  100,000 therms/mo. $71,400
Source: Energy Information Administration, 2009 Average Natural Gas Price


Average Natural Gas Prices (Dollars per thousand cubic feet), 2009

Industrial
Commercial
VIRGINIA
$7.14
$10.31
Connecticut
$8.44
$9.92
Delaware
$13.99
$15.87
District of Columbia
NA
$12.99
Florida
$9.41
$11.09
Georgia
$6.21
$11.70
Illinois
$7.31
$8.65
Maine
$9.12
$13.94
Maryland
$10.70
$10.87
Massachusetts
$12.07
$12.85
Michigan
$9.63
$9.38
New Jersey
$8.96
$10.20
New York
$9.52
$10.72
North Carolina
$8.66
$11.63
Ohio
$8.93
$10.41
Pennsylvania
$9.42
$11.83
Rhode Island
$12.58
$15.14
South Carolina
$6.06
$11.16
Tennessee
$7.08
$10.67
Vermont
$7.93
$12.69
Source: Energy Information Administration

 

WATER
Water is provided regionally by the Newport News Waterworks. Service is provided to over 111,000 customers in five jurisdictions. The raw water system is currently rated with an annual average safe yield of about 60 million gallons per day (MGD). Actual usage of raw water is about 52 MGD. The system is served by two terminal reservoirs with a total treatment plant capacity of 85 MGD, expandable to 104 MGD. On an annual basis, present customer demand on the system is 50 MGD, with the maximum day of record at almost 70 MGD. Current plans call for a 5-10 MGD expansion of raw water capacity in the short term through desalination of low-level brackish well water supplies north of Newport News. (See pages G-8 and G-9 for water rates).

Typical Monthly Water Bills, Hampton Roads Water Systems, 2010

 
NEWPORT NEWS
Chesapeake
Norfolk
Williamsburg
Portsmouth
Suffolk
Virginia Beach
Small User
(5,000 gal/day)
$791
$864
$788
$641
$652
$1,190
$677
Moderate User (25,000 gal/day)
$3,393
$4,271
$3,942
$3,203
$3,238
$5,948
$3,367
Large User
(2.5 MM gal/day)
$325,325
$425,910
$394,213
$320,250
$323,305
$594,750
$336,267
Source: 2010 Hampton Roads Statistical Digest


SEWER
Sewage treatment and disposal is handled by a regional authority. The Hampton Roads Sanitation District Commission operates four sewage treatment plants on the Peninsula. The Sanitation District's Industrial Waste Division provides special technical assistance in order to aid new industries in determining the costs and alternatives associated with industrial waste treatment. The City, through its Engineering and Public Works Departments, constructs, upgrades and maintains sanitary sewer and wastewater feeder lines throughout Newport News. (See page G-12 for sewer rates).


SOLID WASTE
Solid waste disposal is a function of the City's Public Works Department. The City uses a private regional landfill and has developed a comprehensive recycling program for households and businesses. Residential solid waste collection is provided by the City. Commercial and industrial solid waste collection is provided by the private sector.

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