Instructions for Town of Grottoes Business License
Chapter 144 of the Grottoes Town Code establishes License Requirements to conduct business within the Town. If you have any questions contact the Town Office at (540) 249-5896.
Every person shall apply for a license for each business or profession when engaging in a business in this jurisdiction
All license taxes become due and payable on or before July 1 of the license tax year. (For license taxes based on gross receipts, penalty for late payment will begin July 2.)
A penalty of ten percent, or ten dollars, whichever is greater, shall be added to all license taxes which are delinquent and unpaid on the due date.
Unless otherwise specifically provided, no license tax imposed under this Title shall be less than twenty-five dollars ($25.00).
Applications for existing businesses are mailed out during the month of April. If you have not received your Application for Town Business License, you may download it here or contact the Town Hall at (540) 249-5896.
The License tax imposed on a person engaged in retail sales is based upon gross receipts from the business during the preceding calendar year. The fee schedule is $0.15 per $100 of Gross Receipts with a minimum fee of $50.00.
All wholesale merchants and peddlers at wholesale shall pay an annual license based upon gross purchases from the business during the preceding calendar year. The fee schedule is $0.05 per $100 of Gross Receipts with a minimum fee of $25.00.
Contractors whose principal office is located within the Town limits
The state code requires contractors to provide Certification of Workers Compensation coverage when applying for a business license. The license tax imposed upon contractors is based upon gross receipts from the business during the preceding calendar year. The fee schedule is $0.12 per $100 of Gross Receipts with a minimum fee of $25.00.
Contractors whose principal office is located outside the Town
When a contractor has paid a local license tax in the city, town or county of his principal office other than this Town, no further license shall be required by the Town for conducting business herein except where the amount of business done in the Town exceeds the sum of $25,000.00 in one year, in which case the excess shall be subject to tax as provided under this Part.
Section 65.2-801 of the Code of Virginia requires each Virginia locality issuing Business Licenses to provide a notice to employers regarding the State’s requirements for Contractors to provide Certification of Workers Compensation coverage. Section 58.1-3714 of the Code states that no locality may issue or reissue a business license to any contractor who has not obtained or is not maintaining workers’ compensation coverage for his employees.
The following Virginia Worker’s Compensation Commission Form No. 61A, Contractor’s Certification of Insuring Liability for Worker’s Compensation in Virginia, must be completed and returned with any contractor’s business license application. This completed 61A form must be on file at the Town Office in order to issue a license.
Should you have any questions concerning this, please do not hesitate to contact the Town Office at (540) 249-5896.
Click here to download the Contractor's Certification of Insuring Liability for Workers' Compensation in Virginia.
Financial, Real Estate and Professional Services
The license tax imposed on a person engaged in a financial, real estate, or professional service is $0.30 per $100.00 of gross receipts from the business during the preceding calendar year (with a minimum of $25.00).
Repair, Personal, Business, and Other Services
The license tax imposed on a person engaged in repair, personal, or business service is based upon gross receipts from the business during the preceding calendar year. The fee schedule is $0.20 per $100 of Gross Receipts with a minimum fee of $25.00. For direct sellers whose total sales are less than $4000 per year; such seller shall still be required to obtain a license for such business, but the tax rate will not be assessed. For amounts exceeding $4000 per year, the tax shall be charged at the same rate of $0.20 per $100 with a minimum fee of $25.00.
Peddlers and Vendors Selling Door to Door
For the privilege of peddling or selling products door to door, the Town imposes a license tax of $500.00. Prior to the issuance of a Peddlers License, a Background Check must first be performed by the Town of Grottoes Police Department.
Click here to download a Request for Background Check for Issuance of Peddlers Business License.
Coin Operated Machines
There is a fee of $10.00 per machine plus $0.12 per $100 of gross receipts.
Telephone and Power Companies
The license tax imposed on telephone and power companies is 0.5% of gross receipts.
The information contained on this page is for general purposes only and may not contain the most current information. For answers to more specific questions or concerns, or to receive the latest information possible, please contact the Town office at 540-249-5896.