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    Business License Tax

    How To Obtain a Business License

    To start a business in the City of Lynchburg, please follow these steps:

    • If you are using a trade name and are not registered as a corporation of any type, you must register the name with the Clerk of the Circuit Court. There is a $12 charge to register the name.
      Contact the Clerk's Office 434-455-2620
    • You must obtain a Letter of Approval from the Community Development Department. There is no charge for this document. 
      Contact Community Planning  434-455-3900         Letter of Approval Application
    • You must obtain a Certificate of Occupancy from the Inspections Department.  If you are operating the business out of your residence, you do not need the certificate. There is no charge for this document.
      Contact Inspections  434-455-3910
    • You must complete a Business License Application and submit it to the Commissioner of the Revenue along with copies of the above documents. The completed application can be  to cor.business@lynchburgva.gov. The business license fee is based on gross receipts (gross purchases for wholesalers). You must estimate the gross receipts from the start of your business until the end of the current calendar year. Once you have been in business for a full calendar year, the license will be based on the previous year's gross receipts.

    Business License Taxes

    Once your business has been in operation for a full calendar year, the business license tax will be based on the previous year's gross receipts.

    The following schedule is utilized to determine the amount of the business license tax:

    Gross Receipts/Purchases Business License Fee
    $0-$10,000 Not Subject To A License
    $10,001-$50,000 $30.00  Non Refundable
    $50,001-$100,000 $50.00
    $100,001-$150,000 $160.00

    If gross receipts/purchases are greater than $150,000 the following schedule is utilized:

    • Retail merchant - 20 cents per $100 of gross receipts
    • Contractor - 16 cents per $100 of gross receipts
    • Business/personal service - 36 cents per $100 of gross receipts
    • Professional service - 58 cents per $100 of gross receipts
    • Wholesale merchant - $20 plus 28 cents per $100 of gross purchases

    Effective January 1, 2017 the City of Lynchburg will no longer issue a Business License for any business with gross receipts/purchases of $10,000 or less.

     The Business License Application may be  to cor.business@lynchburgva.gov.

    For further information regarding Business License Tax  434-455-3880.

    Business Personal Property

    All businesses located in the City of Lynchburg are required to file an itemized list of all equipment utilized in the business as of January 1 of the current year. This list must be filed with the Commissioner of the Revenue on or before February 15 each year. If this requirement is not met, a 10 percent or 10 dollar penalty (whichever is greater) will be assessed.  Businesses who have previously filed will receive a pre-printed card containing the previous year's information.

    Equipment is assessed in the following manner:

    Age/Assessment Ratio
    1 - 5 years - 30% of cost
    Over 5 years - 25.35% of cost
    • The tax rate is $3.80 per $100 of assessed value
    • The business personal property tax will be billed in two installments. The first installment will be mailed May 1 and will be due June 5. The second installment will be mailed November 1 and will be due December 5.

    The Business Personal Property Return may be  to cor.business@lynchburgva.gov

    For further information regarding Business Personal Property tax  434-455-3880.

    Machinery & Tools Tax

    All manufacturers located in the City of Lynchburg are required to file an itemized list of equipment utilized in the manufacturing process as of January 1 of the current year. This list must be filed with the Commissioner of the Revenue on or before February 15 each year. If this requirement is not met, a 10 percent or 10 dollar penalty (whichever is greater) will be assessed.  Manufacturers who have previously filed will receive a pre-printed card containing the previous year's information.

    Equipment is assessed in the following manner:

    Age Assessment Ratio
    1 - 5 years 30% of cost
    Over 5 years 25.35% of cost
    • The tax rate is $3.00 per $100 of assessed value
    • The machinery and tools tax will be billed in two installments. The first installment will be mailed May 1 and will be due June 5.  The second installment will be mailed November 1 and will be due December 5.
       

     The Machinery and Tools Tax Return may be  cor.business@lynchburgva.gov

    For further information regarding Machinery and Tools Tax  434-455-3880

    Vehicle License Fee

    The City of Lynchburg assesses an annual license fee on every motor vehicle, motorcycle and trailer that is garaged in the city and has an active state registration.  License fees are due on June 5 each year and are included on the personal property tax bill.

    Amount of License Fees

    Passenger Vehicle (4000 lbs. and less) $29.50
    Passenger Vehicle (4001 lbs. and over) $34.50
    Motorcycle $21.00
    Travel Trailer $29.50
    Trailer (1-1500 lbs.) $8.00
    Trailer (1501-4000 lbs.)  $18.50
    Trailer (4001 lbs. and over) $23.00

     If you have questions regarding the Vehicle License Fee  434-455-3870.

    Meals Tax

    • Every business in the City of Lynchburg is required to levy a 6.5 % tax on all prepared edible refreshments, nourishments, and liquids to include alcoholic beverages.
    • The Commissioner will provide the necessary remittal forms which are due on or before the 20th of the following month.
    • Meals Tax Return click here

    Lodging Tax

    • Every lodging establishment in the City of Lynchburg, offering lodging for compensation, shall impose a 6.5% tax on the total amount paid for lodging plus $1.00 per room per night.
    • The Commissioner will provide the necessary remittal forms which are due on or before the 20th of the following month.
    • Lodging Tax Return click here

    Amusement Tax

    • Every business that charges admission to an activity or event shall impose a 7% tax on the total amount charged for admission.
    • The Commissioner will provide the necessary remittal forms which are due on or before the 20th of the following month.
    • Amusement Tax Return click here.