Effective for the 2026 tax year, Loudoun County has introduced new classification changes and updated assessment schedules for several property categories under its Business Tangible Personal Property (BTPP) tax. Businesses must reflect these changes when filing returns for the March 1, 2026 deadline.
Taxpayers should have received official notice of these changes from Loudoun County in late December 2025. If you haven’t, review county resources immediately to ensure compliance.
Who is Affected
These changes impact businesses with tangible assets in Loudoun County, including:
- Data centers
- Manufacturers
- Logistics and distribution companies
- Pharmaceutical operations
- Any business with significant office furniture, fixtures, or general equipment
What Changed
Taxable value continues to be calculated as a percentage of an original capitalized cost, which includes installation, freight, and similar expenses. According to Loudoun’s memo, key updates include:
- Updated Percentages for Several Categories: Assessment schedules for computer equipment in a data center (DE), heavy equipment (HE), and machinery and tools (M&T) have been updated.
- New Classification Structure: General computer equipment (CE) and furniture/fixtures (FF) were consolidated into business equipment (BE). This category now has its own assessment schedule.
- Expanded Reporting Requirements: Businesses must now summarize costs by year of acquisition for the current year plus the prior five years (or the current year plus the prior six years for heavy equipment).
These changes will generally increase assessed values for newer assets and may affect how businesses classify and report assets. Exclusions still apply, including inventory, certified pollution control equipment, application software, and household goods not used for business.
Updated Assessment schedules at a Glance
Below are Loudoun County’s updated schedules for major asset categories:
Business Equipment (BE)
Business equipment is a new classification for 2026, replacing prior separate schedules for computer equipment and furniture/fixtures. Reporting must cover the current year plus the prior five years of acquisitions.
| Purchase Year | Pre-2026 | 2026+ |
|---|---|---|
| 2025 | 50% | 60% |
| 2024 | 40% | 45% |
| 2023 | 30% | 30% |
| 2022 | 20% | 15% |
| 2021 | 10% | 10% |
| 2020 & prior | – | 5% |
Computer Equipment in a Data Center (DE)
For computer equipment in a data center, reporting must cover the current year plus the prior five years of acquisitions.
| Purchase Year | Pre-2026 | 2026+ |
|---|---|---|
| 2025 | 50% | 60% |
| 2024 | 40% | 45% |
| 2023 | 30% | 30% |
| 2022 | 20% | 15% |
| 2021 | 10% | 10% |
| 2020 & prior | – | 5% |
Heavy Equipment (HE)
For heavy equipment, reporting must cover the current year plus the prior six years of acquisitions.
| Purchase Year | Pre-2026 | 2026+ |
|---|---|---|
| 2025 | 50% | 70% |
| 2024 | 40% | 60% |
| 2023 | 30% | 50% |
| 2022 | 20% | 40% |
| 2021 | 10% | 30% |
| 2020 | – | 20% |
| 2019 & prior | – | 10% |
Machinery & Tools (M&T)
In cases machinery and tools, reporting must cover the current year plus the prior five years of acquisitions.
| Purchase Year | Pre-2026 | 2026+ |
|---|---|---|
| 2025 | 50% | 70% |
| 2024 | 40% | 60% |
| 2023 | 30% | 50% |
| 2022 | 20% | 40% |
| 2021 | 10% | 30% |
| 2020 | – | 20% |
| 2019 & prior | – | 10% |
What businesses in Loudoun County Should Do Now
To prepare for Loudoun County’s updated schedules and classifications—and to meet the March 1 filing deadline:
- Review fixed-asset records to confirm acquisition dates and costs
- Summarize assets by year for the most recent six or seven years (depending on category)
- Check classifications against the new categories (e.g., business equipment)
- Ensure exclusions are properly applied
Failure to apply the updated classifications and schedules could result in incorrect filings and potential penalties.
How DMA Can Help
Loudoun County’s updates introduce new reporting requirements and classification changes that may be challenging for businesses with large or complex asset inventories. DMA’s team of property tax experts helps simplify compliance by:
- Reviewing and reclassifying assets under the updated schedules
- Assisting with acquisition-year reporting for six or seven years of data
- Streamlining property tax reporting processes to reduce risk and save time
It may also be worth reviewing your valuations for accuracy. DMA provides valuation review and appeal support to help ensure you’re not overpaying.
Our team has extensive experience supporting asset-intensive businesses—including data centers, manufacturers, and logistics companies—through local property tax changes. If you need help meeting the March 1 compliance deadline, or want to review your valuations to ensure accuracy—contact DMA today.
Virginia Property Tax Expertise
Connect with DMA to review your Virginia property portfolio and ensure compliance with Loudoun County’s updated schedules. Our team helps identify opportunities and streamline reporting, so you don’t miss potential savings.
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