Thousands of Local Businesses Will Experience Some Tax Relief

By Keiter CPAs

Thousands of Local Businesses Will Experience Some Tax Relief

Henrico County increases BPOL tax threshold to $1 million

On May 29, 2024, Virginia’s Henrico County Board of Supervisors approved a Business, Professional and Occupational License (BPOL) tax threshold increase that is set to benefit 16,000 businesses within the county.

The BPOL tax threshold has increased from $500,000 to $1 million in gross receipts, effective fiscal year 2025. This increase in threshold will exempt about 1,300 businesses from paying the tax and reduce the tax burden for thousands more, allowing impacted businesses the opportunity to reinvest these savings and grow.

What is the BPOL tax?

The BPOL tax is a local tax on the privilege of doing business within a locality. Localities that impose BPOL taxes must adhere to uniform ordinance provisions outlined in the Code of Virginia. This tax is levied on the gross receipts of a company within their locality without adjustment for income or deductible expenses incurred. The announced change represents significant savings for many small businesses, reducing both tax payments and associated fees for tax preparation and filing.

Henrico aims to support business growth

There are approximately 25,000 businesses in Henrico, the majority being small enterprises. Small business owners, who often operate on thin margins, will find this tax relief particularly beneficial as it enables them to allocate more resources toward innovation, expansion, and job creation.

This BPOL tax adjustment is part of Henrico’s broader effort to lower business operational costs, complementing recent tax reductions on research and development, machinery, tools, and data centers.

New and existing businesses must continue to file and renew their licenses before March 1 of each year. Contact your Keiter Opportunity Advisor for more information on BPOL tax or other state and local tax requirements or Email | Call: 804.747.0000.

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Keiter CPAs

Keiter CPAs

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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