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Business Tax
Business Licenses
The Commissioner of the Revenue issues Business Professional Occupational License taxes on businesses operating within the City of Salem. Every person or corporate entity engaging in business in Salem must obtain a business license per Salem Code SEC. 22-4.1 Most of the City license taxes are levied on the basis of gross receipts. Annual licenses are valid for each calendar year and must be renewed by March 1st of each year.
New businesses must obtain a license within 30 days of commencing operation in the City. Solicitors, Itinerant Merchants, and Peddlers must obtain a Salem License immediately and prominently display this license.
For a complete list of requirements to secure a City of Salem Business License please review the New Business Checklist at the top of our New Business License Application.
All delinquent taxes must be paid before the business license can be issued.
Check the License Status of a Business or Report an Unlicensed Business
To report an unlicensed business or check to see if a business has a current business license use the Reporting an Unlicensed Business form.
Please Email Business Tax for any questions.
Consumer beware!
Call before you hire. Before you hire a contractor to do a renovation or home repair take the time to call the Commissioner of the Revenue's office to see if the contractor is licensed to do business in this locality. Protect your investment in your home.
Online File and Pay is Now Available for Business Taxes
The City of Salem is now offering the option to file and pay for Business License, Business Tangible Property, Monthly Fiduciary Taxes and Out of Area Contractor Licenses. Filings can be made using the Online Registration & Filing Portal and entering the 5 or 6-digit account number and the last 4 digits of the federal ID/social security number associated with the business account. Account numbers can be found at the top of the filing form for each tax type that was mailed to you. Please note the business account number is not the same as your business license number.
Renewals may be filed online with or without paying at the time of submission. If paying online, the payment must be made with a credit/debit card. The application with any required attachments and payment are due by Midnight on the respective due dates to be considered on time.
Salem Welcomes Its New Businesses
View the New Business Listing (PDF) for businesses beginning operation in Salem City last month.
- Virginia State Corporation Commission
- Virginia Dept. of Professional and Occupational Regulation (DPOR)
- Virginia Alcoholic Beverage Control Authority
- Virginia Department of Taxation
- Virginia Department of Health
- Internal Revenue Service
- Virginia Department of Social Services
- Virginia Workers’ Compensation Commission
- Virginia Employment Commission
- Dept. of Treasury Financial Crimes Enforcement Network (FINCEN)
- Who needs a business license?
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All businesses and professional operations must obtain a Salem business license before commencing operation in the City. This includes home businesses, special events, and those persons paid on a 1099. Contractors having a definite place of business in a locality other than Salem, but performing work within City limits must also obtain a Salem license. Please Email Sidney C Kuzmich for any clarification as to whether you are subject to being licensed.
- What will my license cost?
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License tax for the first year of operation will be based on an estimate of your gross receipts from the date you begin operation until the end of the current year. Each subsequent year's license costs will be determined by your actual gross receipts from the prior year. Businesses are subject to supplemental billing for the first two years of operation. Tax rates vary by classification depending on the nature of your business and businesses may have multiple classifications.
All businesses making less than $50,000 in gross receipts will pay a flat $50 fee per classification. For businesses with gross receipts of $50,000 or greater please refer to the rate chart below:
- Contractors - $.16 per $100 gross receipts
- Retail and Short-Term Rental - $.20 per $100 gross receipts
- Repair, Personal, Amusement, and Business Services - $.36 per $100 gross receipts
- Real Estate, Financial, and Professional Services - $.58 per $100 gross receipts
- Wholesale Business- $.13 per $100 gross receipts or purchases
- What do I do to operate a business out of my home?
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Home-based businesses must first be approved for a Home Occupation Permit through the Zoning Department. A new home-based business application must be submitted any time the location of the business/applicant changes.
- How do I know if a local business has a license?
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Look for a Business License decal at all local businesses to know they have obtained their annual license, Email Commissioner of the Revenue, or contact our office by phone at 540-375-3019.
- Where do I file for Meals Tax?
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Food and Beverage (Meals) Tax filings and payment can be made online, by mail, or in the Commissioner’s office. For questions please contact businesstax@salemva.gov
- Where do I file the Lodging Tax?
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Transient Occupancy (Lodging) Tax filings and payments can be made online, by mail, or in the Commissioner’s office. For questions please contact businesstax@salemva.gov