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BPOL Comparison

In the Greater Richmond region, localities have the option to levy a license tax on most businesses. This license tax is usually levied on gross receipts. Rates vary by locality and type of business.

Hanover County boasts a distinct advantage: no business and professional occupation license (BPOL) tax, except for contractors. Hanover’s BPOL tax rate for contractors ($0.10 per $100 of gross receipts) is regionally competitive when compared to Chesterfield ($0.14 per $100 of gross receipts), Henrico ($0.15 per $100 of gross receipts) and Richmond ($0.19 per $100 of gross receipts).

BPOL Tax Rates in the Greater Richmond Region

Hanover (Outside of Ashland)

For gross receipts in excess of $100,000.

Business Tax Rate (Per $100 of Gross Receipts)
Contractors only $0.10

Ashland

No tax on first $1,000.

Business Tax Rate (Per $100 of Gross Receipts)
$30 for gross receipts of $1,001 to $100,000 or $100,001 to $25 million $0.07 plus
$25 million to $50 million $0.05 plus
Over $50 million $0.02

Chesterfield

For gross receipts of 0-$9,999, no tax; $10,000-$199,999, $10.

For gross receipts of $200,000 and above, the following tax rates apply; the first $200,000 is not taxed.

Business Tax Rate (Per $100 of Gross Receipts)
Retail $0.19
Wholesalers $0.10 per $100 of gross purchase (maximum tax: $20,000)
Financial Services $0.20 (maximum tax: $90,000)
Professional Services $0.20
Business & Personal Services $0.20
Contractors $0.14
Biotech, R&D, Information Services $0.10
R&D (Federal Contractors) $0.03
Computer Services $0.03
Software Development Exempt

Henrico

Rates apply to amounts over the first $100,000.

Business Tax Rate (Per $100 of Gross Receipts)
Retailers $0.20 per $100
Wholesalers:
$1 to $100,000 $25 minimum tax
$100,001 to $5 million $0.20
$5,000,001 to $15 million $0.15
$15,000,001 to $25 million $0.10
$25,000,001 to $50 million $0.05
$50,000,001 to $100 million $0.0125
Professional Services $0.20
Contractors $0.15

Richmond

For gross receipts under $5,000, no tax; over $5,000 but less than $100,000, a $30 fee is imposed; for gross receipts of $100,000 or more:

Business Tax Rate (Per $100 of Gross Receipts)
Retail $0.20
Wholesalers $0.22 per $100 of gross purchases
Professional Occupations $0.58
Financial Services $0.58
Personal Services $0.36
Contractors $0.19