Henrico County Adopts Tax Relief Measure to Benefit Small Business

The Henrico County Board of Supervisors recently approved a significant Business, Professional and Occupational License (“BPOL”) tax threshold increase from $500,000 to $1 million in gross receipts. This increase goes into effect in 2025 and will exempt about 1,300 small businesses from paying any BPOL tax and reduce the tax burden for thousands more. The BPOL tax threshold has steadily increased over the past decade, but this increase represents the largest in recent memory by a wide margin. Yet another reason why Henrico County is a great place to live, work, and play!

By way of background, the BPOL tax is a local tax on the privilege of doing business within a local jurisdiction. Localities that impose BPOL taxes must adhere to uniform ordinance provisions dictated by state law. This tax is levied on the gross receipts of a company within their locality without adjustment for income or deductible expenses incurred.

As a reminder, businesses must still continue to file and renew their Henrico County business licenses by March 1 each year.