Loudoun County will update its business personal property tax assessment schedules starting January 1, 2026. The changes, announced by Commissioner of the Revenue Robert S. Wertz Jr., follow a benchmarking study conducted by PFM Group Consulting. The new schedules will affect taxes on computer equipment, furniture and fixtures, data center equipment, heavy equipment, and machinery and tools.
According to Virginia law, local governments are responsible for taxing tangible property uniformly within each classification based on fair market value. Wertz stated that the study compared Loudoun County’s assessment methods with those used in other Virginia localities and evaluated their alignment with fair market values.
The revised assessment schedules introduce a new “business equipment” category that merges general computer equipment and furniture/fixtures into one class. Assessment factors have been updated for this combined class as well as for data center equipment, heavy equipment, and machinery/tools. For example, under the new schedule for business equipment purchased in 2025, the assessed value will be 60% of original cost—up from 50% previously.
Starting with tax year 2026, businesses must summarize and report total capitalized costs by acquisition year for all relevant property types over specified periods—five years for business equipment and data center computers; six years for heavy equipment and machinery/tools. Items with an original capitalized cost of $25 or less can still be excluded from reporting.
Taxpayers may submit written comments regarding changes to the machinery and tools assessment schedule until December 13, 2025. Comments can be submitted online at loudoun.gov/MachineryandToolsComments or mailed to the Office of the Commissioner of the Revenue.
Notices about these changes will be sent to taxpayers beginning December 10, 2025. More information is available at loudoun.gov/cor or by contacting the Business Tax Division at loudoun.gov/ContactCOR or by phone at 703-777-0260 (option 2). Reasonable accommodations or language assistance requests can also be made via email or phone.
Loudoun County Public Schools District enrolled a total of 82,028 students during the 2023-24 school year according to state records (https://www.doe.virginia.gov/home). Independence High School had the highest enrollment among county schools with 2,080 students (https://www.doe.virginia.gov/home). White students represented the largest ethnic group in county schools during that period (40.4%), followed by Asian students (26%) (https://www.doe.virginia.gov/home). Total school enrollment decreased slightly from the previous year by about 0.1% (https://www.doe.virginia.gov/home). Sugarland Elementary School had the largest number of pre-kindergarten students among county schools in that year (https://www.doe.virginia.gov/home).
“Virginia law gives local governments the responsibility for taxing tangible property. All property within the same classification must be taxed uniformly and assessments must be based on fair market value (VA Code §58.1-3503(B)). The Commissioner of the Revenue contracted with PFM Group Consulting to study assessment schedules used to value business personal property in Loudoun County, compare them with other Virginia counties and cities, and evaluate how closely they correspond to fair market value. That benchmarking study was completed in October of 2025.”
“To better reflect fair market value of business property, the assessment schedules will be changed as follows.”
“Beginning with tax year 2026, taxpayers will be required to summarize and report the total capitalized costs by year of acquisition for all business equipment for the most recent year and immediate prior five years in order to properly complete their filings.”
“As in the past, business equipment with an original capitalized cost of $25 or less can be excluded from reporting.”
“Reportable tangible property includes items that were purchased, leased, gifted or converted from personal to business use, and also includes any tangible property not otherwise classified as data center equipment, heavy equipment, or machinery and tools.”
“Certain farm-related personal property, application software, and household goods that are not used for business purposes are excluded.”
“The public may submit written comments regarding the machinery and tools assessment schedule change (VA Code §58.1-3507(B)) through December 13, 2025…”
“Taxpayers will receive notices advising them of these assessment schedule changes beginning December 10, 2025.”
“More information is online at loudoun.gov/cor.”
“Anyone who requires a reasonable accommodation for any type of disability or needs language assistance may send an email or call…”
