Only certain types of businesses are required to purchase a business license. License taxes are assessed on selected categories of businesses operating in Hanover County. The following businesses require a license in order to operate:
Every contractor, electric contractor, plumber and steam fitter who has gross receipts over $100,000 and who meets the following requirements shall apply for a license for each business operating in the county:
If the person has a definite place of business in the county
If there is no definite place of business anywhere and the person resides in the county
If there is no definite place of business in the county but the person is a contractor subject to Virginia State Code 58.1-3715
If you are based and licensed in another locality, you may be exempt from obtaining a license until your gross receipts generated within Hanover County reach $25,000. You must file a license application if the gross receipts exceed $25,000.
If you are not state registered as a Class A, B or C Contractor, you must sign an affidavit stating that the Commissioner's Office has informed you that you must be state registered if you undertake or bid any job of $1,000 or more.
Licenses must be renewed annually by March 1 unless stated otherwise. A new business requiring a license must obtain the license prior to conducting any business in the county. Save time and postage by filing online through the customer portal at https://taxes.hanovercounty.gov.
A license tax based on prior year gross receipts is applied when the receipt total is above $100,000. The tax rate is $0.10 per $100 of receipt total. To calculate the tax, multiply the gross receipt total by 0.001 ($100,000 multiplied by 0.001 = $100).