The Richmond City Council has approved an amendment to increase the threshold for the Business, Professional, and Occupational License (BPOL) tax from $250,000 to $500,000. The new policy will take effect on January 1, 2026, impacting revenues collected in that calendar year.
Under the revised ordinance, businesses with gross receipts between $5,000 and $500,000 will pay a flat annual license tax of $30. Previously, businesses with receipts over $250,000 faced higher fees that could reach up to $2,900 annually.
Mayor Danny Avula commented on the change: “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 the City’s Department of Finance indicate that nearly 70% of local businesses fall under the new threshold and will benefit from reduced taxes.
5th District Councilmember Stephanie Lynch said: “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.”
Further details about ORD. 2024-187 as amended can be found on the City’s website.
