Richmond, VA - Last night, the Richmond City Council voted to amend ORD. 2024-187, increasing the threshold for business, professional, and occupational license (BPOL) taxes from $250,000 to $500,000.

The change, which is set to go into effect on January 1, 2026 for revenues collected in calendar year 2026, means that business owners with gross receipts totaling $5,000 to $500,000 will only be required to pay an annual $30.00 license tax. Previously, businesses with gross receipts totaling over $250,000 were required to pay higher annual licensing fees, as much as $2,900, in some cases.

"Richmond small businesses are the heartbeat of our City," said Mayor Danny Avula. "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."

Nearly 70% of businesses in the City are under the $500,000 threshold and will experience some measure of tax relief, according to estimates from the City's Department of Finance.

"After years of discussion and advocacy, I'm pleased to have finally brought this one across the finish line," said 5th District Councilmember Stephanie Lynch, who took over as the lead patron for this amendment after the departure of former Councilmember Andreas Addison. "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."

A more detailed accounting of the conditions set forth in ORD. 2024-187, as amended, can be found on the City's website.