Roanoke, VA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Small-business floor
- $100,000 gross receipts before tax applies
- Retail rate
- $0.20 per $100 of gross receipts
- Contractor rate
- $0.16 per $100 of gross receipts
- Financial/professional rate
- $0.58 per $100 of gross receipts
- Repair/personal services rate
- $0.36 per $100 of gross receipts
- Enforcing office
- Commissioner of Revenue
- Unlicensed penalty
- Up to $1,000 fine, misdemeanor
Summary
Businesses grossing over $100,000 a year owe Roanoke's BPOL license tax at rates set by classification: contractors pay $0.16 per $100 of gross receipts, retailers $0.20, financial and professional services $0.58, and repair, personal and other business services $0.36, all assessed by the Commissioner of Revenue.
(a)Except for the license issuance fee imposed by section 19-1.1 of this chapter, no license fee or tax shall be imposed pursuant to the provisions of this chapter on any person whose gross receipts from a business, profession or occupation subject to licensure are one hundred thousand dollars ($100,000.00) or less.(b)Except as otherwise provided in this chapter, any business with gross receipts of more than one hundred thousand dollars ($100,000.00) shall be subject to a license tax based on the prior calendar year's gross receipts...at the rate set forth below for each class of enterprise:(1)For contracting...sixteen cents ($0.16) per one hundred dollars ($100.00) of gross receipts;...b.All other retail sales, twenty cents ($0.20) per one hundred dollars ($100.00) of gross receipts.(3)For financial, real estate...and professional services, fifty-eight cents ($0.58) per one hundred dollars ($100.00) of gross receipts...(4)For repair, personal and business services...thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 94 Update 1).
Full Breakdown
Roanoke's BPOL (Business, Professional and Occupational License) tax is set out in City Code Chapter 19, Article II. Sec. 1 sets the small-business floor: businesses grossing $100,000 or less pay only a flat $50 annual license issuance fee, no percentage-of-receipts tax. Once gross receipts exceed $100,000, Sec. 36 per $100. The Commissioner of Revenue classifies each applicant into one of these categories using guidelines from the Virginia Department of Taxation under Sec. 19-45(c)-(e), and may issue further classification rules for situations the guidelines don't cover.
A business with more than one location apportions receipts between locations by payroll, under Sec. 3, when the general attribution rule can't clearly assign them to one office.
Violations & Fines
Operating without the required BPOL license is a misdemeanor under Sec. 19-1.2(d), punishable by a fine of up to $1,000, and conviction does not excuse payment of the license tax owed. If the violation continues for a full month, the business also owes a 10 percent penalty on the license tax due at the start of that month, on top of the tax itself.
Frequently Asked Questions
Do I owe Roanoke's business license tax if my gross receipts are under $100,000?
How does the city decide which tax rate applies to my business?
What happens if I operate without getting a Roanoke business license?
Sources & Official References
Other rules in Roanoke
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