A Comprehensive Guide to the Virginia Local License Tax
Tax Notes State
Published as a cover article in Tax Notes State, “A Comprehensive Guide to the Virginia Local License Tax” is a guide to Virginia’s business, professional, and occupational license (BPOL) tax and examines an important but often misunderstood component of Virginia’s state and local tax system. The article traces the history and statutory framework of the BPOL tax and examines its application to businesses operating throughout the Commonwealth. It addresses key considerations for taxpayers, including business classifications, the situs and allocation of gross receipts, deductions and exclusions, and significant differences in how Virginia localities administer the tax. It also highlights practical considerations for businesses evaluating their operations, organizational structures, and compliance obligations in Virginia.
The full article was published in Tax Notes State on August 14, 2026.
