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Business License
Each business operating in the City of Fredericksburg is required to obtain a business license. Zoning approval is required before a business license may be issued. Once this approval is obtained, a Business License Application must be completed and submitted to the Office of the Commissioner of the Revenue.

When you call, please have these items ready:
  • An estimate of the gross revenue you expect the business to earn until December 31 of the year the business will open.
  • A complete description of the type of business.
  • A federal ID number for the business.
  • A physical and mailing address.

After your business license has been processed, the paid receipt from the Office of the Treasurer will provide proof of your license. Business license renewals will be sent out each year. Renewal applications must be filed by March 1 and payments made by March 15. Licenses are obtained at the beginning of each year.

Calculating the Business License for the First Year
The gross receipts are an estimate of the revenue that will be earned by the business until December 31 of the year in which the business opens. See the illustration below for the calculation of the tax. After the close of the year, the estimate must be adjusted to reflect the actual gross receipts received. This adjustment will be included in the tax for the Second Year.

Calculating the Business License for the Second Year
The gross receipts for the second year are an estimate of the revenue that the business will earn for an entire year. See the illustration below for the calculation of the tax. After the close of the year, the estimate must be adjusted to reflect the actual gross receipts received. This adjustment will be included in the tax for the Third Year.

Calculating the Business License for the Third Year
The gross receipts for the third year are based on the ACTUAL gross receipts for the entire second year. See the illustration below for the calculation of the tax.  It is no longer necessary to estimate the gross receipts. 

Calculating the Tax

 Gross Receipts
Pay
 <$100,000 $25
 >$100,000 but <$350,000     $50 for the first $100,000 gross receipts, then add a calculation of the remaining gross receipts times your rate, divided by 100.
 >$350,000 x rate
calculate your gross receipts times your rate, divided by 100.

Examples of Calculations

Gross Receipts < $100,000
My Gross Receipts were $48,723:
Since my Gross Receipts were less than $100,000, my business license tax is $25.

Gross Receipts > $100,000 but < $350,000
My Gross Receipts were $165,722:
Since my Gross Receipts were more than $100,000 but less than $350,000, I pay $50 on the first $100,000 of my gross receipts. This leaves $65,722 ($165,722 less $100,000). Since I’m a professional, my rate is .58 per $100. I multiply $65,722 times .58, then divide by 100, which equals $381.19. So my total tax is $381.19 plus $50 for a total payment of $431.19.

Gross Receipts > $350,000
My Gross Receipts were $495,327.
I’m a professional and my rate is .58 per $100. So I multiply $495,327 by .58 then divide by 100, which equals $2,872.90.



Contact Us
Business License
Commissioner of the Revenue

715 Princess Anne Street
Room 102
Fredericksburg VA 22401 

PO Box 644
Fredericksburg VA 22404-0644

Ph: 540-372-1004
Fx: 540-372-1197

Hours
8:15 a.m. - 4:30 p.m.
Monday - Friday