Business License Tax

How To Apply For a Business License

New Business

​The Business License Application has been streamlined and is now part of the Letter of Zoning Approval Application.  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. New businesses click here.

Business License Renewal

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

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

Change of Business Location

If you are changing your business location address click here.
 

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.

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.