HENRICO COUNTY, April 25, 2017 – The Henrico County Board of Supervisors approved a new ordinance reducing the business license tax. The previous threshold of the first $100,000 of gross receipts being non-taxable income has now doubled to $200,000. This new deduction will go into effect January 1, 2018. This means an additional 1,560 businesses will NOT pay business license taxes to the County, bringing the total number of licensed businesses exempt from paying the tax to 12,600.
This increased threshold is good news for all Henrico businesses, not just small ones. Any business making over $200,000 will be able to deduct $200,000 from their earnings before calculating the amount of their business license tax.
Business owners like Barry Martin of the Idea Center in Henrico believe this is a big step for all businesses in Henrico County. The Idea Center is an award-winning ad agency that has been operating in Henrico since 1998. “This is a win-win situation for both large and small companies doing business in Henrico County and should be great for economic development” said Martin of the new reduction.
Henrico County previously eliminated the Business, Professional, Occupational License (BPOL) fee to file for most business license categories beginning in 1996. The elimination of the BPOL fee, the new BPOL tax rate reduction, and the 2016 reduction of Machinery & Tools tax rates by 70% are evidence that Henrico County proactively supports its existing businesses and encourages new businesses to locate here. Henrico’s pro-business climate is advantageous for all types of business from Fortune 1000 headquarters to sole proprietorships. Henrico’s low and stable tax structure allows it to attract more businesses so the county can continue to provide the high-quality services that its citizens have come to expect.
About the Henrico EDA
Assisting with workforce, relocation and expansion, and business consultation needs, the Henrico Economic Development Authority works to ensure that businesses Come for Success and Stay for Life. The EDA’s mission is to increase county revenues through the attraction of high quality jobs and new capital investment with domestic and international companies, as well as the retention and growth of existing businesses, resulting in continued improvement of the county’s well-being and the quality of life for Henrico citizens.
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