HENRICO, VA - May 29, 2024 – In a significant move to bolster the commercial office market and provide substantial relief to small businesses, Henrico has announced the decision to raise the Business, Professional, and Occupational License (BPOL) tax threshold from $500,000 to $1 million in gross receipts. This change, approved by the Board of Supervisors for fiscal year 2025, reflects Henrico's unwavering commitment to fostering a thriving business community.

The BPOL tax, a gross receipts tax based on sales generated by businesses within the county, will now exempt approximately 1,300 businesses from paying the tax entirely. Due to the increased threshold, thousands more will experience a reduction in their tax burden. With around 25,000 businesses operating in Henrico, the majority being small enterprises, this adjustment is poised to benefit 16,000 businesses, allowing them to reinvest and grow.

"Raising the BPOL tax threshold is a strategic step to support our local businesses, especially the small businesses that are the backbone of our economy," said John Vithoulkas, Henrico’s County Manager. "By doubling the threshold, we're ensuring that more businesses can thrive without the additional tax burden, which is particularly crucial as companies worldwide reassess their office space needs postpandemic."

Henrico's business-friendly policies have consistently aimed to reduce business operational costs. In recent years, the county has lowered taxes on research and development, machinery and tools, and data centers while maintaining a stable real estate tax rate. This holistic approach to tax relief underscores Henrico's dedication to enhancing the economic environment for all business sectors.

In addition to the BPOL tax adjustment, Henrico has implemented several other initiatives to support commercial growth. The Board of Supervisors recently approved the Innsbrook Technology Zone, which aims to bolster the corporate services sector. The Henrico Investment Program (HIP Zones) was also established to aid building owners in revitalizing older commercial corridors, further demonstrating the county's proactive stance in encouraging business investment and development.

"Our goal is to create a community that welcomes businesses and goes the extra mile to actively support their success," added Vithoulkas. "By providing tangible tax relief and fostering a business-friendly environment, we are making Henrico an even more attractive destination for both new and existing businesses."

Henrico's decision to raise the BPOL tax threshold is a testament to its ongoing efforts to nurture a robust business ecosystem—this initiative and other strategic measures position Henrico as a premier location for business growth and innovation.

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