As stated in Chapter 11 of the Arlington County Code, “Every year, beginning January 1 of each year and ending on the following December 31, there are hereby levied and there shall be assessed and collected the annual business license taxes and fees…on persons engaged in any business in the County, which license taxes and fees shall be for the support of the County government, the payment of the County debt, and for other County purposes.”
When a new business files a business license tax for the first time, the business declares an estimate for the gross receipts the owner anticipates receiving from the date the business opens until December 31 of the then-current calendar year. The Commissioner of Revenue’s Business Tax Division then computes the license tax or flat fee owed based on the information provided. The taxes and fees levied on existing businesses are generally based on the gross receipts of the business’s previous year.
For example, businesses with gross receipts:
- less than $10,000 or less owe no tax.
- between $10,001 and $50,000 pay a flat fee of $30.00.
- between $50,001 and $100,000 pay a flat fee of $50.00.
- more than $100,000 will utilize a tax rate dependent on their business activities to determine the tax due.
In January, the Commissioner of Revenue’s Office mailed Business License Tax Renewal Returns. These are unique for each business and each has a barcode for fast and accurate processing. If you lost or did not receive your return, you will not be able to download a new form from the Commissioner of Revenue’s website. Instead, you will either need to file online or call our office at (703) 228-3060 to request a new form.
This year, the due date to file a “Business License Tax Return” and to avoid late filing penalties and interest is Friday, March 1. by 11:59 p.m. EST. Ingrid and her staff encourage all businesses to file and pay online, via CAPP, the Customer Assessment and Payment Portal. Once the return and payment are processed and everything is in order, the customer will be able to print the Business License Certificate via their CAPP account after March 15.
If you have any questions about the Business License Tax, please call the Business Tax Division at (703) 228-3060 or email [email protected].
Please be advised that beginning in Tax Year 2020, paper returns will no longer be printed and mailed due to the rising costs of printing and postage to current CAPP customers. All CAPP customers will be required to file and pay online using our convenient Customer and Assessment Payment Portal (CAPP).
Thank you for operating a business in Arlington County!