Poquoson requires that all persons doing business in Poquoson obtain a business license prior to beginning business. Licenses are based on estimated gross receipts from business beginning date to December 31 of that year. Until you have been in business for a full calendar year, you continue to estimate your gross receipts for the business license renewal. Once in business for a full calendar year, the business license renewal is based on the prior year's gross receipts. [The Code of Virginia (Title 58.1-3700.1) defines gross receipts to mean "the whole, entire, total receipts without deduction."] Business licenses are assessed on a calendar year, January 1 through December 31 and are renewed annually by March 1. The cost of a business license is determined by the following factors:
- The gross receipts (gross purchases for wholesale merchants)
- The rate applied for the business industrial category
Electronic filling of the Contractor Certification Form 61A is now available. Click here to complete the form and receive your acknowledgement of compliance.
RatesBusinesses are assessed at the following rates:
- Professional Services - $0.58/$100 of gross receipts (Virginia State Code § 2.2-4301 states "Professional services" means work performed by an independent contractor within the scope of the practice of accounting, actuarial services, architecture, land surveying, landscape architecture, law, dentistry, medicine, optometry, pharmacy or professional engineering.)
- Services - $0.36/$100 of gross receipts
- Retail Merchants - $0.20/$100 of gross receipts
- Contractors - $0.16/$100 of gross receipts (Virginia State code 58.1-3715 states that contractors based outside of Poquoson require a Poquoson business license only if calendar year gross receipts exceed $25,000)
- Wholesale Merchant - $0.05/$100 of gross purchases
RequirementsRequirements for a business license include:
- Beginning date of business
- Social Security number for individuals and/or Federal ID number
- Business location and mailing address for renewals to be sent. Proof of residence may be required for home based locations. Applicants may operate from their residence upon approval of the home business permit.
- Phone number(s) and fax number(s)
- Actual or estimated gross receipts
- Business license fee paid by check made payable to City of Poquoson or credit card
Business Property§ 58.1-3518 of the Code of Virginia requires: All tangible personal property owned as of January 1, of any year, must be filed on a personal property return. Every taxpayer who owns, leases, rents, or borrows tangible personal property which was used or available for use in a business or profession and which was located in the City of Poquoson is required to report such property to the Commissioner of the Revenue.
- A complete filing must be submitted annually.
- Taxpayers who do not own, lease, rent, or borrow business tangible personal property must still file a return. Enter none and provide an explanation as to how the business is operated without the use of tangible property.
- The original cost of the business tangible personal property must be reported. 30% of the original cost is multiplied by the current personal property tax rate (which is subject to change each year - currently $4.15 per $100 of assessed value).
- Items used to conduct business such as furnishings, office machines, equipment, tools, fixed and portable signs, computers, printers, faxes, etc., must be reported.
- Do not include DMV vehicles on this form as they are billed separately.
- All forms must be signed, dated and returned by the filing deadline of March 1.
- Business Equipment bills are sent out and payments are due - half by June 5 and half by December 5 (non-prorated tax).