Business Taxes
Retail Sales
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 $0.12 per $100 of Gross Receipts with a minimum fee of $50.00.
Wholesale Merchants
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.
View/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 CompaniesThe license tax imposed on telephone and power companies is 0.5% of gross receipts.
Decals & License Fees
Town Decals/Vehicle License Fees
Effective November 8, 2010, the Grottoes Town Council voted to eliminate the Town decal. Decals will no longer be issued or required for display on motor vehicles, motorcycles, trailers or semi-trailers.
To replace the decal a Motor Vehicle License Fee will be assessed each calendar year. This fee will be assessed on all motor vehicles, motorcycles, trailers and semi-trailers licensed in the Town of Grottoes as of January 1st of each year.
The license fee will be billed with the personal property bill that is due December 5th of each year. The Vehicle License Fee is levied on each motor vehicle, motorcycle, trailer and semi-trailer for which a state license plate is required and which is normally garaged, stored or parked in the Town of Grottoes. A Vehicle License Fee is assessed each calendar year based on January 1st ownership/garage jurisdiction.
For calendar year 2011 and subsequent years the license fee is due December 5th of the preceding year and will be billed by the Treasurer at the same time as personal property taxes. Along with the Personal Property taxes, the Vehicle License Fee can be paid in person by cash, check or money order at the Town Office at 601 Dogwood Avenue, Grottoes, Virginia or by mail at P. O. Box 146, Grottoes, Virginia 24441.
Please make checks payable to Town of Grottoes.
Golf Cart Registration
Pursuant to § 46.2-916.2 of the Code of Virginia (1950) as amended, the Town of Grottoes has by ordinance, authorized the operation of golf carts and utility vehicles on designated public roadways within its boundaries, and imposed limitations and restrictions on the operation of golf carts and utility vehicles upon public roadways within the Town. Any public roadway with a speed limit of 25 MPH or less is designated for golf cart and utility vehicle use.
Once the form is complete, call (540) 249-5707 to schedule a safety inspection by our Town Police Department. Proof of insurance and a $25 registration fee can then be paid to the Town, at which time a decal, good for one year (4/16-4/15), will be issued.
