There is hereby levied, assessed and charged an annual tax on
tangible personal property, machinery and tools and merchants' capital
pursuant to Chapter 35 of Title 58.1 of the Code of Virginia.
Farm machinery and farm implements are hereby defined as separate
items of taxation and classified as follows:
A. Farm machinery and farm implements, which shall include equipment
and machinery used by farm wineries as defined in § 4.1-100
of the Code of Virginia in the production of wine.
B. Equipment used by farmers or farm cooperatives qualifying under § 521
of the Internal Revenue Code to manufacture industrial ethanol, provided
that the materials from which the ethanol is derived consist primarily
of farm products.
The capital of merchants is hereby segregated for taxation and
is defined as follows: inventory of stock on hand; daily rental passenger
cars as defined in § 58.1-2401 of the Code of Virginia;
daily rental property as defined in § 58.1-3510 of the Code
of Virginia; and all other taxable personal property of any kind whatsoever,
except money on hand and on deposit and except tangible personal property
not offered for sale as merchandise, which tangible personal property
shall be reported and assessed as such.
The Commissioner of the Revenue shall value tangible personal
property, machinery and tools and merchants' capital pursuant to Title
58.1, Chapter 35, of the Code of Virginia.
Tax rates and schedules for the various classifications of tangible
personal property, machinery and tools and merchants' capital shall
be set by the adoption by the Board of Supervisors of a budget resolution
prior to July 1 each year.