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City of Alexandria, VA

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  • Live

    Make the most of Alexandria's outstanding quality of life with information and services of interest to residents.

    • Be Prepared

      Are you ready? Find resources and information to help residents, businesses and visitors to prepare for all types of emergencies, and to stay safe.

      • Flooding Preparedness
      • Snow and Ice Control
      • Hurricane Preparedness
      • Emergency Preparedness
      • Public Health Emergency
    • Community Life

      Learn more about pets and animals, schools and libraries, parks and farmers' markets, community gardens, and more.

      • Community Gardens
      • Farmers' Markets
      • Parks
      • Pets
      • Recreation
    • Get Involved

      There are many opportunities to get involved to help better the City of Alexandria. Opportunities include serving on a Board, Commission or Committee, providing input on a new City project or speaking at a City Council meeting.

      • Boards and Commissions
      • Civic Engagement Policy
      • City Academies
      • Community Emergency Response Team (CERT)
      • Speak at a Meeting
      • Volunteering
    • Getting Around

      Information on how to get to and through the City of Alexandria, including walking, biking, bus, rail, air, ridesharing, and more.

      • Bicycling in Alexandria
      • Bus and Rail
      • King Street Trolley
      • Parking in Alexandria
      • Street Maps
      • Taxis
      • Water Taxis
    • Historic Preservation

      Historic Alexandria is a treasure trove of early structures, artifacts, and records that creates a unique way of life for its citizens and provides enjoyment for thousands of people who visit this special community every year. The City continues to add resources to its collection of local and nationally designated historic districts.

      • Alexandria History
      • Board of Architectural Review
      • Historic Alexandria
      • Historic Districts
    • Licenses & Permits

      Find out whether a permit is required, the type of permit needed, fees involved, and what requirements are necessary for the activity you want to engage in Alexandria.

      • Building & Construction
      • Business Licenses
      • Health Permits
      • Marriage Licenses
      • Virginia Department of Motor Vehicles (DMV)
    • Parking

      Information about parking in the City of Alexandria, including parking options, enforcement, districts and permits.

      • Contest a Parking Ticket
      • Guest Parking Permits
      • Parking Permits
      • Parking Studies
      • Parking in Old Town
      • Pay a Parking Ticket
    • Public Health & Wellness

      Alexandria is committed to ensuring our residents thrive through physical, mental, and social health.

      • Aging & Adult Services
      • Domestic Violence
      • Environmental Health
      • Environmental Quality
      • Health Department
      • Health Clinics
      • Sexual Assault
      • Substance Abuse Prevention
      • Substance Abuse Services
      • Teen Pregnancy Prevention
      • Teen Wellness Center
    • Public Safety & Courts

      Agencies and programs that help maintain our safety and overall quality of life. These links contain information about the City of Alexandria's law enforcement agencies and public safety organizations, courts and judicial system.

      • Fire Department
      • Police Department
      • Sheriff's Office
      • Circuit Court
      • Clerk of Circuit Court
      • General District Court
      • J&DR Court
      • Court Service Unit
    • Public Works

      Learn more about how the City maintains streets, sidewalks, bridges, and other infrastructure in the City.

      • Bridge Maintenance
      • Paving and Potholes
      • Sewer Maintenance
      • Street Sweeping
    • Real Estate & Taxes

      The City collects car and real estate taxes, maintains tax relief programs and assesses property values. Taxes can be paid in a variety of ways including online, by phone and by mail.

      • Payments
      • Personal Property/Car Tax
      • Real Estate Assessments
      • Real Estate Tax
      • Tax Guide
      • Tax Relief
    • Schools & Libraries

      Did you know that ACPS is one of the most diverse school systems in the country? Our students come from more than 80 different countries, speak more than 60 languages, and represent a myriad of ethnic and cultural groups. The Alexandria Library is an educational, user-oriented service institution providing free public access to recorded knowledge and ideas.

      • Alexandria City Public Schools (ACPS)
      • Alexandria Library
      • Child Care
      • Higher Learning
      • Out of School Time Programs
    • Social Services

      The City provides public assistance as a safety net for individuals and families, including help with homelessness prevention, food, rent, utilities, medical coverage and prescriptions, job training and placement assistance, and much more.

      • Aging & Adult Services
      • Child Care Assistance
      • Homeless Services
      • Housing Resources
      • Mentoring Programs
      • Military & Veteran Services
    • Trash & Recycling

      Find information on the City's refuse, recycling and yard waste collection programs.

      • Recycling
      • Refuse Collection
      • Yard Waste
    • Utilities

      The City of Alexandria does not operate any public utilities. The following companies are the primary providers of their respective service:

      • Cable TV (Comcast / Xfinity)
      • Drinking Water (Virginia American Water)
      • Electricity (Dominion Energy)
      • Natural Gas (Washington Gas)
      • Sewage/Water Treatment (Alex Renew)
      • Wired Telephone (Verizon)
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  • Play

    Whether you live here or are just visiting, Alexandria is a great place to shop, dine, take in the arts, get outdoors, and just have fun.

    • About Alexandria

      If you are looking for small-town charm and big-city amenities, Alexandria is the place to find them. Alexandria has a fascinating history, and many of its historic buildings are still preserved today. The City's many historic homes, churches, businesses, and museums allow residents and visitors alike to experience the past that makes it the charming town it is today.

      • Alexandria's History
      • Demographics & Statistics
      • Maps & GIS
      • Visit Alexandria
    • Arts & Culture

      Through engaging the community, encouraging participation, and facilitating access to arts and culture, the City builds a vibrant community for its residents, workers, and visitors.

      • City Concerts
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      • Historic Property Rentals
      • Museums & Historic Sites
      • Office of Historic Alexandria
      • Office of the Arts
    • Entertainment

      Find events and activities, shops and restaurants, concerts and performances, arts and culture, historic attractions, parks and libraries, farmers' markets, and more.

      • City Concerts
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      • Office of the Arts
      • Visit Alexandria: Things to Do
    • Getting Around

      Information on how to get to and through the City of Alexandria, including walking, biking, bus, rail, air, ridesharing, and more.

      • Bicycling in Alexandria
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      • King Street Trolley
      • Parking in Alexandria
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    • Museums & Historic Sites

      Alexandria is a desirable location to live, work and play. The City owns many of the premier historic sites in Alexandria and it is charged with the conservation, interpretation and promotion of these links to the past.

      • City Museums
      • Historic Sites & Attractions
      • Office of Historic Alexandria
    • Parks & Recreation

      Alexandria is an active community that offers more than 900 acres of parks and dedicated public space, and a wide variety of neighborhood and recreation centers, pools, dog parks, farmers' markets, waterfront activities and more.

      • Classes & Camps
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      • Facility & Park Rentals
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      • Marina & Waterfront Parks
      • ParkLink Interactive Map
      • Parks & Trails
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    • Visit Alexandria

      Information about visiting Alexandria, including shopping, dining, attractions, accommodations, events listings and more. Plan your visit with an itinerary builder, interactive maps, hotel booking, online restaurant reservations and much more.

      • Group Tours
      • Meet in Alexandria
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  • Services

    We are here to serve you. Browse the topics to the right to learn more about the programs and services we offer.

    • Alex311

      Connect with professional and knowledgeable staff for City service and information requests from every City department.

      • Missed Collection
      • Parking
      • Potholes
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    • Animals

      What you need to know about animals, pets and wildlife in Alexandria.

      • Animal Adoption
      • Animal Control
      • Dog Parks
    • Buildings & Construction

      The City provides services to residents, businesses, contractors, and visitors needing permits for constructions and other developments.

      • Building Codes
      • City Code
      • Code Administration
      • Green Building
      • Land Use & Zoning
      • Permit Center
      • Permits & Land Use Applications
    • Environment

      "Green" initiatives, air quality, noise, water conservation, mosquito and rodent control.

      • Air Quality
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      • Climate Change
      • Eco-City Alexandria
      • Green Building
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    • Jobs
      • City Government Jobs
      • Alexandria City Public Schools
      • Job Search Assistance (Workforce Development Center)
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    • Maps & GIS

      Geographic Information Systems (GIS) centrally manages, shares and analyzes information about locations through specialized mapping technology. This information increases transparency, improves many City technology applications and provides critical data to decision makers and the public.

      • Interactive Maps
      • Open Data
      • Standard Maps
    • Parks & Recreation

      Alexandria is an active community that offers more than 900 acres of parks and dedicated public space, and a wide variety of neighborhood and recreation centers, pools, dog parks, farmers' markets, waterfront activities and more.

      • Classes & Camps
      • Dog Parks
      • Facility & Park Rentals
      • Farmers' Markets
      • Marina & Waterfront
      • Parks & Trails
      • Pools & Aquatics
      • Recreation Centers
      • Sports Leagues & Programs
    • Property & Housing

      The City administers various housing-related programs and services.

      • Housing Master Plan
      • Landlord & Property Manager Resources
      • Maps & GIS
      • Office of Housing
      • Parcel Viewer
      • Real Estate Assessments
    • Public Health & Wellness

      Alexandria is committed to ensuring our residents thrive through physical, mental, and social health.

      • Aging & Adult Services
      • Emergency Mental Health Services
      • Environmental Health
      • Environmental Quality
      • Health Department
      • Health Clinics
      • Sexual and Domestic Violence Services
      • Substance Abuse Services
      • Teen Pregnancy Prevention
      • Teen Wellness Center
    • Public Safety & Courts

      Agencies and programs that help maintain our safety and overall quality of life. These links contain information about the City of Alexandria's law enforcement agencies and public safety organizations, courts and judicial system.

      • Fire Department
      • Police Department
      • Sheriff's Office
      • Circuit Court
      • Clerk of Circuit Court
      • General District Court
      • J&DR Court
      • Court Service Unit
    • Public Works

      Learn more about how the City maintains streets, sidewalks, bridges, and other infrastructure in the City.

      • Bridge Maintenance
      • Paving & Potholes
      • Sewer Maintenance
      • Street Sweeping
    • Real Estate & Taxes

      The City collects car and real estate taxes, maintains tax relief programs and assesses property values. Taxes can be paid in a variety of ways including online, by phone and by mail.

      • Payments
      • Personal Property/Car Tax
      • Real Estate Assessments
      • Real Estate Tax
      • Tax Guide
      • Tax Relief
    • Social Services

      The City provides public assistance as a safety net for individuals and families, including help with homelessness prevention, food, rent, utilities, medical coverage and prescriptions, job training and placement assistance, and much more.

      • Aging & Adult Services
      • Child Care
      • Children & Families
      • Discrimination & Disabilities
      • Gang & Youth Violence Prevention
      • Homeless Services
      • Housing Assistance
      • Human Rights
      • Job Search Assistance (Workforce Development Center)
      • Mentoring Programs
      • Military & Veteran Services
    • Trash & Recycling

      Find information on the City's refuse, recycling and yard waste collection programs.

      • Recycling
      • Refuse Collection
      • Yard Waste
    • Transportation

      Information on how to get to and through the City of Alexandria, including walking, biking, bus, rail, air, ridesharing, and more.

      • Bicycling in Alexandria
      • Bus & Rail
      • King Street Trolley
      • Parking in Alexandria
      • Street Maps
      • Taxis
      • Transportation Planning
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  • Business

    Ideally located just across the Potomac River from Washington, D.C., Alexandria is nationally recognized as one of the best places to live and do business on the east coast. Learn how we can help you start or relocate your business in Alexandria, and access resources for existing businesses and commuters.

    • Business Resources

      The City provides services and resources to help existing businesses expand within the City and promotes recruiting new businesses in Alexandria.

      • Alexandria Economic Development Partnership (AEDP)
      • Alexandria Small Business Development Center (SBDC)
      • BIPOC Small Business Program
      • Doing Business with the City
      • New Business Guide
      • Public-Private Partnerships
    • Jobs

      Alexandria offers wide range of job opportunities and services. Work for City government or City Public Schools, find out about an internship opportunity or learn about workforce development and career training options.

      • City Government Jobs
      • Job Search Assistance (Workforce Development Center)
      • Collective Bargaining
    • Licenses & Permits

      Find out whether a permit is required, the type of permit needed, fees involved, and what requirements are necessary for the activity you want to engage in Alexandria.

      • APEX Permitting & Land Use System
      • Business Licenses
      • Business Outdoor Program & Permits
      • Health Permits
      • Permit Center
      • Zoning Information
    • Real Estate & Taxes

      The City collects car and real estate taxes, maintains tax relief programs and assesses property values. Taxes can be paid in a variety of ways including online, by phone and by mail.

      • Business License Tax
      • Business Personal Property Tax
      • Lodging Tax
      • Meal Tax
      • Payments
      • Real Estate Assessment Search
      • Real Estate Assessments
      • Sales Tax
    • Transportation

      Information on how to get to and through the City of Alexandria, including walking, biking, bus, rail, air, ridesharing, and more.

      • Getting Around
      • Vehicle Registration
      • GO Alex Commuter Resources
      • Parking in Alexandria
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  • Government

    Learn more about Alexandria's accountable, effective, and well-managed government.

    • City Council

      The Alexandria City Council is composed of a Mayor and six Council members who are elected at-large for three-year terms. The Mayor, who is chosen on a separate ballot, presides over meetings of the Council and serves as the ceremonial head of government.

      • City Council Calendar
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    • Boards & Commissions

      The City of Alexandria has a strong commitment to citizen participation as evidenced by the number of citizen boards and commissions established by City Council. These bodies compose a formal system through which citizens can advise City Council on all major issues affecting the City.

      • Meeting Dockets & Video
      • Apply for a Board or Commission
      • Boards & Commission Calendar
      • Boards & Commission Vacancies
      • Board of Architectural Review
      • Board of Zoning Appeals
      • Planning Commission
      • Park & Recreation Commission
      • Transportation Commission
    • Departments & Agencies

      View a list of City departments, offices and other agencies, and learn about their role in the organization.

      • City Government Departments & Offices
      • Virginia Department of Motor Vehicles (DMV)
      • Washington Metropolitan Area Transit Authority (WMATA)
      • Alexandria City Public Schools (ACPS)
      • Alexandria Economic Development Partnership (AEDP)
      • Alexandria Redevelopment and Housing Authority (ARHA)
      • Alexandria Transit Company (DASH)
      • Animal Welfare League of Alexandria (AWLA)
      • Small Business Development Center (SBDC)
      • Visit Alexandria (Official Tourism Site)
    • Public Safety & Courts

      Information about the City of Alexandria's law enforcement agencies and public safety organizations, courts and judicial system.

      • Police Department
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    • Elected Officials

      Alexandria voters elect a Mayor and City Council and three local officers, as well as state and federal representatives.

      • City Council
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      • Voting in Alexandria
    • Get Involved

      There are many opportunities to get involved to help better the City of Alexandria. Opportunities include serving on a Board, Commission or Committee, providing input on a new City project or speaking at a City Council meeting.

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      The City government acts with integrity in an open process, and provides timely access to clear, trustworthy information, presented and employed by all parties from the beginning to the end of the process, including the reasoning that leads to and supports the policy conclusion.

      • Operating Budget & Capital Improvement Program
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  • Projects & Plans

    Much of our work involves creating and improving infrastructure and planning for the future. Learn more about major projects and plans here, and how you can get involved!

    • Arts & Culture

      Information about arts, culture and historic projects in the City.

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      Information about commercial and residential development projects in the City.

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      Information about environmental and "green" projects in the City.

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How Business Tax is Calculated

The City of Alexandria welcomes you and appreciates your interest in conducting business in the City. The City extends this privilege to all qualified corporations, partnerships, and individuals who wish to engage in business here.
Page updated on November 29, 2021 at 4:13 PM

Business Resources

  • Business Resources Home
  • New Business Guide
  • Small Business Development Center (SBDC)
  • SBDC Events Calendar
  • BIPOC Small Business Program
  • Virginia SWaM Certification
  • Doing Business with the City - Vendor Guide
  • Land Use and Zoning Services

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Overview

The City extends the privilege of conducting business in the City to all qualified corporations, partnerships, and individuals. In order to further the City's strong commitment to providing efficient and responsive services to the community, this document has been designed to assist new businesses in the preparation of their annual business license applications and with the calculation of the yearly business license tax.

The following is a detailed explanation of the calculation method used in computing the business license tax for a new business, a business undergoing a business license base adjustment, and a business that has moved into the regular yearly business license renewal cycle. Each of these phases of the license calculation process will be explained and an example will be provided to illustrate the calculation process.

For questions about doing business in the City, contact:

Business Tax
301 King Street, Room 1700
Alexandria, VA 22314
703.746.4800
Email: businesstax@alexandriava.gov

Tax Calculation for a New Business

Note: The tax rate structure below does not apply to the following business tax categories: regulatory activities, contractors, wholesalers, rents commercial and residential property, amusements and utility companies. 

A new business license tax is based on an estimate for its first year of operation. The amount of tax a new business will pay is determined by the estimated gross receipts the business anticipates earning, from the beginning date of operation to the end of the calendar year (December 31 of each year). The amount of tax for new businesses with estimated receipts of $2 million or greater is determined by multiplying the tax rate by the estimated gross receipts. Whenever a license tax is computed upon estimated gross receipts of $2 million or greater, the business license tax will be adjusted for any underpayment or overpayment at the end of that calendar year.

In the first year of operation, the license tax for new businesses is calculated as follows: 

Estimated Gross Receipts License Tax Calculation
$0 - $99,999 $0
$100,000 - $1,999,999 $50 Flat Fee
$2,000,000 and above Gross Receipts X Tax Rate

For the second year of operation, the amount of tax the business pays for all prospective annual licenses will be based on the previous year's actual gross receipts, unless the actual gross receipts for the first license year of the business were $2 million or greater.

If the actual gross receipts were $2 million or greater for the first license year of operation and business start date is after January 1, a business must estimate gross receipts for its second license year of operation. However, if the actual gross receipts were $2 million or greater for the first license year of operation and the business start date is January 1, the amount of tax will no longer be based on an estimate of gross receipts. The amount of tax the business will pay will be based on the prior year's actual gross receipts with an adjustment made for any underpayment or overpayment from the prior year's estimate.

After the first year, the license tax for all businesses is calculated as follows: 

Estimated or Actual
Gross Receipts
License Tax Calculation
$0 - $9,999 $0
$10,000 - $99,999 $50 Flat Fee
$100,000 and above Gross Receipts X Tax Rate

Example 1 (First year estimated gross receipts below $2 million): 

On March 1, 2011 (year 1), ABC Corporation, a building maintenance firm, commenced business in the City and estimated its gross receipts for the calendar year at $56,000. When ABC Corporation obtained its original business license (March 2011) the company paid no tax because its estimated gross receipts were below $100,000.

On its 2012 business license renewal application (year 2), ABC Corporation reported that its actual gross receipts for 2011 (year 1) were $196,000. This will be the basis for the business license tax in 2012 (year 2). The business license tax due on March 1, 2012, for the 2012 business license (year 2) is $686.00 ($196,000 x .0035 = $686.00).

ABC Corporation's annual business license tax for all subsequent years will be based on the prior year's actual gross receipts.

Example 2 (First year estimated gross receipts $2 million or greater and start date after January 1):

On March 1, 2011 (year 1), Building, Inc., a building maintenance firm, commenced business in the City and estimated its gross receipts for the calendar year at $2 million. When Building, Inc. obtained its original business license (March 2011), the company paid $7,000 in business license tax ($2 million X tax rate of .0035 = $7,000).

On its 2012 business license renewal application (year 2), Building, Inc. reported that its actual gross receipts for 2011 (year 1) were $2.5 million. The business license taxes (paid by March 1, 2012) for the 2012 business license is calculated as follows:

  1. Since Building, Inc.'s actual 2011 gross receipts were greater than the estimated $2 million, it must pay an adjusted tax, which is calculated by subtracting the estimated gross receipts of $2 million from the actual gross receipts of $2.5 million to arrive at a license base adjustment of $500,000. ($2,500,000 - $2,000,000 = $500,000). Building, Inc. would owe the City an additional $1,750 for the underpayment of 2011 taxes ($500,000 X .0035 = $1,750).
  2. On its 2012 business license application, Building, Inc. estimated that it would earn $3 million during calendar 2012 (year 2). The business license tax due on March 1, 2012, for the 2012 business license (year 2) would be $10,500. ($3 million x .0035 = $10,500).
  3. Building, Inc.'s total tax due on March 1, 2012, would be $12,250: $1,750 for the adjustment of the year 1 estimate and $10,500 for the year 2 license ($10,500 + $1,750 = $12,250).

As of January 2013, Building, Inc. will have been in operation for one full calendar year. When the company applies for its 2013 (year 3) business license, the company will no longer pay based on an estimate. On its 2013 business license renewal application, Building, Inc. will report 2012 (year 2) actual gross receipts of $3.5 million. The business license taxes due by March 1, 2013 with the 2013(year 3) business license application are calculated as follows:

  1. Since Building, Inc. earned more in 2012 (year 2) than it estimated, the company must pay an adjusted tax, which is calculated by subtracting the estimated gross receipts of $3 million from the actual gross receipts of $3.5 million to arrive at a license base adjustment of $500,000 ($3,500,000 - $3,000,000 = $500,000). Building, Inc. would owe the City an additional $1,750 for the underpayment of 2012 taxes ($500,000 X .0035 = $1,750).
  2. Also, Building, Inc. must pay a tax for the 2013 (year 3) business license of $12, 250. ($3.5 million x .0035 = $12,250).
  3. Building, Inc.'s total tax due on March 1, 2013, would be $14,000: $1,750 for the adjustment of the year 2 estimate and $12,250 for the year 3 license ($1,750 + $12,250 = $14,000).

Building, Inc.'s annual business license tax for all subsequent years will be based on the prior year's actual gross receipts.

Example 3 (First year estimated gross receipts $2 million or greater but actual gross receipts less than $2 million):

On March 1, 2011 (year 1), Building, Inc., a building maintenance firm, commenced business in the City and estimated its gross receipts for the calendar year at $2 million. When Building, Inc. obtained its original business license (March 2011), the company paid $7,000 in business license tax ($2 million X tax rate of .0035 = $7,000).

On its 2012 business license renewal application (year 2), Building, Inc. reported that its actual gross receipts for 2011 (year 1) were $1.5 million. The business license taxes (paid by March 1, 2012) for the 2012 business license is calculated as follows:

  1. Since Building, Inc.'s actual 2011 gross receipts were less than the estimated $2 million, it is due a refund, which is calculated by subtracting the $50 minimum tax from the tax paid for 2011. The City would owe Building, Inc. $6,950 for the overpayment of 2011 taxes ($7,000 - $50 = $6,950).
  2. On its 2012 business license application, Building, Inc. would calculate its tax based on 2011 actual gross receipts of $1.5 million, yielding a tax of $5,250 ($1,500,000 X .0035 = $5,250).
  3. Since the tax due of $5,250 for 2012 is less than the overpayment of $6,050 on 2011 taxes, Building, Inc. would be owed a refund of $1,700 ($6,950 - $5,250 = $1,700).

Building, Inc.'s annual business license tax for all subsequent years will be based on the prior year's actual gross receipts.

Tax Calculation for an Existing Business

There is no estimation of gross receipts for existing businesses. Instead, the business license tax is based solely on the previous year's actual gross receipts. The license tax for existing businesses is calculated as follows:

Estimated or Actual
Gross Receipts
License Tax Calculation
$0 - $9,999 $0
$10,000 - $99,999 $50 Flat Fee
$100,000 and above Gross Receipts X Tax Rate

Example:  As of January 2012, CR Business Services had been in operation for ten years. On its 2012 business license renewal application (due March 1, 2012), CR Business Services reported 2011 actual gross receipts of $140,000. The business license taxes paid by March 1, 2012 are calculated as follows:

  • CR Business Services must pay a tax for the 2012 business license of $490.00. The tax for the 2012 license is based on the previous year's actual gross receipts. The 2012 business license tax of $490.00 is calculated by multiplying the 2011 actual gross receipts ($140,000) by the tax rate of .0035
    ($140,000 x .0035 = $490.00).
  • City Government
  • Taxes
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