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, business-friendly stance on regulation. The Commonwealth has repeatedly been listed among America's best states for doing business by CNBC, Forbes.com and other outlets. In 2023, the Commonwealth was ranked as one of the top two states for business by CNBC.


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 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


Income & Sales:
  • Corporate Income Tax Rate: 6%
  • Sales Tax Rate: 5.3%
  • State 4.3%, plus 1% local

Real Estate:
  • Assessment Ratio 74.4%
  • Tax Rate - 63 cents per $100 of assessed value

Personal Property:
  • Assessment Ratio 90%
  • Tax Rate - $1.95 per $100 of assessed value

Machine & Tools:
  • Assessment Ratio 90%
  • Tax Rate - $1.95 per $100 of assessed value

Automobiles & Light Trucks:
  • Assessment Ratio 100%
  • Tax Rate - $1.95

Merchants' Capital:
  • Assessment Ratio 20%
  • Tax Rate - 65 cents per $100 assessed value

Local Contacts

Physical Address:
Lonzo Lester, County Administrator
Russell County Board of Supervisors
137 Highland Drive
Lebanon, VA 24266
Mailing Address:
Russell County Board of Supervisors
137 Highland Dr.
Lebanon, VA 24266
Phone/Email Address:
276-889-8000
[email protected]




State Government

The Commonwealth of Virginia is known for being on the side of business, based on its statutes, economic development practices, and other endorsements.

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. Also 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.

Links to Key State Organizations

Russell County IDA