Many localities in the State of Virginia impose a Business, Professional, and Occupational License (BPOL) tax based on the gross receipts in the locality, without any adjustment for the business’ income or the deductible expenses incurred by the business. A BPOL submission is either an application for a new business license or the annual renewal of the license. Shortly after January 1, businesses in Virginia will receive notices from the local governments regarding the renewals, The due date for filing BPOL applications and paying related taxes is typically March 1.
All business owners, including home-based businesses, are subject to the BPOL tax, and rates are generally based on a business’ classification.
New businesses are required to register their business with their county government tax departments within a given number of days of operation (varies by location) or they may be subject to a penalty late fee.
The Code of Virginia requires all business owners, including home-based businesses, to annually report business tangible personal property for taxation. Virginia-based businesses are required to fill out Business Tangible Personal Property (BPPT) return forms annually. The types of assets to be filed include machinery and equipment, furniture and fixtures of non-manufacturing businesses, certain computer hardware, trucks and automobiles, and any other tangible property used in a business unless specifically exempted.
Personal property tax rates are different in every jurisdiction and methods of valuing property differ depending on the type of property. Some assessors depreciate assets based on the asset type and acquisition year, and may also consider the condition of the property. Others will depreciate all assets for a particular asset type at the same percentage regardless of the acquisition year. At any time, taxpayers may request an explanation of a commissioner’s valuation methods.