The Richmond City Council has approved an amendment to increase the threshold for business, professional, and occupational license (BPOL) taxes. The new policy raises the threshold from $250,000 to $500,000 in gross receipts. The change will take effect on January 1, 2026, impacting revenues collected during that calendar year.
Under the amended ordinance, businesses with gross receipts between $5,000 and $500,000 will pay an annual license tax of $30. Previously, businesses exceeding $250,000 in gross receipts could face licensing fees up to $2,900 per year.
Mayor Danny Avula commented on the decision: “Richmond small businesses are the heartbeat of our City. By lowering their tax burden, we’re giving small business some additional breathing room to grow, to innovate, and to hire the staff they need to realize their business goals. In doing so, I hope we’re sending a clear message to the small business community: you are a valued part of Richmond and this City wants to see you thrive.”
Estimates from Richmond’s Department of Finance indicate that about 70% of city businesses fall below the new threshold and will benefit from reduced taxes.
5th District Councilmember Stephanie Lynch stated: “After years of discussion and advocacy, I’m pleased to have finally brought this one across the finish line. This was the number one issue brought up by our small business communities. I’m pleased that we are moving in the right direction to show the care, compassion, and support to the small businesses who make our City so special.”
More details about ORD. 2024-187 as amended can be found on the City’s website.
