Lynchburg, VA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Exemption threshold
- $150,000 or less gross receipts
- Above threshold
- Must obtain a business license
- Retail tax rate
- $0.19 per $100 gross receipts
- Wholesale tax rate
- $20 flat plus $0.26 per $100
- Professional/financial rate
- $0.55 per $100 gross receipts
- Violation penalty
- Class 1 misdemeanor, Sec. 36-1
- Administering official
- Commissioner of the Revenue
Summary
Lynchburg exempts any business or profession with $150,000.00 or less in prior-year gross receipts, wholesale sales, purchases, or commission sales from the city's business and professional license tax entirely. Above that threshold, the business must obtain a license and is then classified and taxed under one of several rate schedules in Chapter 36, Article II, Division 2 of the City Code.
In order to promote and encourage the development and growth of small businesses and professions within the city, effective on January 1, 2023, for the calendar year beginning January 1, 2023 and ending December 31, 2023, and for each calendar year thereafter, unless otherwise changed by the city council, the following provisions shall apply to small businesses and professions. (1)Any business or profession whose gross receipts, wholesale sales, purchases for the business or commission sales for the preceding calendar year are $150,000.00 or less is not subject to the business and professional licensing requirements of this chapter.(2)Any business or profession whose gross receipts, wholesale sales, purchases for the business or commission sales for the preceding calendar year are in excess of $150,000.00 shall obtain a business license in accordance with the provisions of this article.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 10).
Full Breakdown
Chapter 36's Division 2, "Classified Business and Professional Licenses," sets the threshold and the categories the City uses to tax local businesses. Sec. 00 or less from the licensing requirement altogether; above that figure, the business shall obtain a business license in accordance with the provisions of this article. Once a business crosses the threshold, its tax rate depends on which classification it falls into. Retail merchants, hucksters, peddlers, and direct sellers are taxed under Sec. 00, and that classification expressly covers antique shows, flea markets, gasoline and petroleum sales, restaurants, and short-term rentals.
Wholesale merchants pay under Sec. 00 of gross purchases above the same threshold. Financial, real estate, and professional service providers, defined in Sec. 27 to include accountants, attorneys, architects, engineers, and physicians among others, are taxed under Sec. 00 of gross receipts. Flea market and craft show vendors get a separate carve-out under Sec. 23: an individual vendor owes no license tax on sales made through an event if the promoter or organizer holds the license and the vendor reports gross receipts from the show to that promoter.
The commissioner of the revenue administers the classification and rate schedule and can examine a promoter's or organizer's sales records to verify the reported totals.
Violations & Fines
Operating a business above the $150,000.00 gross-receipts threshold without obtaining the required license is a violation of Chapter 36 and is punishable as a class 1 misdemeanor under Sec. 36-1. The commissioner of the revenue administers assessment and can examine a business's records, including a flea-market or craft-show promoter's sales logs under Sec. 36-126.23, to verify whether the license and correct tax classification were applied.
Frequently Asked Questions
Do small businesses need a license in Lynchburg?
How is my business classified for Lynchburg's license tax?
Do flea market vendors need their own license?
What happens if I operate without the required license?
Sources & Official References
Other rules in Lynchburg
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