Government
Our Pro-Business Approach
Russell County is located in Virginia, a commonwealth that takes a moderate, stable approach to taxation and has a conservative, results-oriented stance on business regulation. In 2013, Virginia was not only ranked by Forbes magazine as the overall top state in the nation for doing business but was also first in the regulatory category based on Virginia’s strong incentive offerings and business-friendly government policies.
As our county’s primary economic development agency, the Industrial Development Authority of Russell County works closely with state agencies and other local and regional partners to foster an optimum business environment for companies.
Russell County Business Facts
- Our 6 percent corporate income tax rate hasn’t increased since 1972.
- Qualified companies locating or expanding in Virginia receive a $1,000 income tax credit for each new full-time job created over a threshold number of jobs.
- There’s no franchise or net worth tax.
- Manufacturers don’t pay sales tax on purchases used for production; distributors don’t pay sales tax on items purchased for resale.
Local & State Government
Our Local Government
Russell County is governed by a county administrator and a board of supervisors, consisting of seven members who are elected for four-year terms. The board meets at the Russell County Government Center in Lebanon monthly to consider and adopt policies and to appropriate funding for various functions and services.
We have four incorporated towns – Cleveland, Honaker, St. Paul, and Lebanon, which is our county seat. Companies located in the towns pay both town and county taxes, except for utilities and licensing taxes, which are paid only to the town.
Manufacturers pay real estate, machinery and tools, truck and automobile, utility and sales taxes. They do not pay tax on purchases used for production; distributors don’t pay tax on items purchased for resale.
Non-manufacturers pay real estate, tangible personal property, truck and automobile, utility, and sales taxes. They may also pay either a merchants’ capital or license tax.
Tax Structure
Corporate Income Tax Rate: 6%
Sales Tax Rate: 5.3%
State 4.3%, plus 1% local
Real Estate
Assessment Ratio 74.4%
Tax Rate – 61 cents per $100 of assessed value
Personal Property
Assessment Ratio 90%
Tax Rate – $1.65 per $100 of assessed value
Machine and Tools
Assessment Ratio 90%
Tax Rate – $1.65 per $100 of assessed value
Automobiles and Light Trucks
Assessment Ratio 100%
Tax Rate – $1.65
Merchants’ Capital
Assessment Ratio 20%
Tax Rate – 65 cents per $100 assessed value
Electric
Tax Rate – 20% on first $1,000, 2% after first $1,000
Gas
Tax Rate – 20% on first $1,000, 2% after first $1,000
Telephone
20% on first $15
Government Contacts
Physical Address:
Lonzo Lester, County Administrator
Russell County Board of Supervisors
137 Highland Drive
Lebanon, VA 24266
P (276) 889-8000
F (276) 889-8011
lonzo.lester@russellcountyva.us
Mailing Address:
Russell County Board of Supervisors
P.O. Box 1208
Lebanon, VA 24266
Contact us today to discuss financing options and incentives for your company.
Russell County IDA
(276) 971-0665
info@russellcountyida.org
Commonwealth of Virginia Means Business
The Commonwealth of Virginia is known for being on the side of business, based on its statutes, economic development practices, and other endorsements. Below are key facts that illustrate this approach:
Low Corporate Taxes
At 6 percent, Virginia has one of the lowest corporate income tax rates in the nation, and it hasn’t increased since 1972. The Commonwealth also has a three-factor apportionment formula of payroll, property and sale (with sales double-weighted), and a single-factor apportionment election based on sales for manufacturing companies. No franchise or net worth taxes are levied.
High Bond Ratings
Virginia’s long tradition of fiscal discipline has earned it a coveted AAA bond rating, reaffirmed by Moody’s, Fitch, and Standard & Poor’s in January 2013. Also, in 2011, Ernst & Young, in conjunction with The Council on State Taxation (COST), deemed our state among the top 10 with the lowest effective tax rates for new capital investments.
Reasonable Taxes
Items taxed at the state level in Virginia are not taxed at the local level, with the exception of sales taxes, which are levied by both state and local governments. The combined state and local sales tax rate for Russell County is only 5.3 percent, considerably lower than the U.S. median rate of 6.8 percent.
Top Rankings
The Commonwealth has repeatedly been listed among America’s best states for doing business by CNBC, Forbes.com and other outlets.
Forward Thinking
Virginia was also ranked among the top 10 states best prepared to navigate the changing economy, according to the “2012 State New Economy Index,” compiled by the Information Technology and Innovation Foundation in Washington, D.C.
Links to Key State Organizations
- Commonwealth of Virginia
- Virginia Economic Development Partnership
- Virginia Employment Commission
- Virginia Department of Business Assistance
- Virginia Business One Stop
- Virginia Business Excellence Consortium
- Virginia State Corporation Commission
- Virginia Secretary of Commerce and Trade
- Virginia Department of Transportation
- Virginia Department of Labor and Industry
- Virginia Department of Taxation
- Virginia Department of Rail and Public Transportation
- Virginia Port Authority
- Virginia Tourism
Federal and State Officials For Virginia and Russell County
Office of Governor
Terry McAuliffe (D)
Virginia U.S. Senate
Tim Kaine (D)
Virginia U.S. Senate
Mark Warner (D)
Virginia Congressional District 9
H. Morgan Griffith (R)
Virginia Senate District 38
A. Benton Chafin (R)
Virginia House District 3
James “Will” Morefield (R)
Virginia House District 4
Todd Pillion (R)
Virginia Lieutenant Governor
Ralph S. Northam (D)
Virginia Attorney General
Mark R. Herring (D)
Virginia Secretary of State
Levar Stoney (D)
Source: National Federation of Independent Business (NFIB).