Council raises small-business BPOL exemption from $250,000 to $500,000

Richmond City Council on July 28 adopted an ordinance increasing the city’s BPOL exemption threshold from $250,000 to $500,000 in annual gross receipts, a change proponents said will help retain and attract small businesses.

Councilmember Stephanie Lynch, floor sponsor of the ordinance, framed the change as the result of several years of discussion. Lynch said Richmond’s exemption level lagged neighboring counties — which have higher thresholds — and that the low exemption contributed to small businesses relocating outside the city.

Why it matters: The change raises the income level at which a business may qualify for an exemption from the city’s BPOL tax. Council members said the measure is intended to make Richmond more competitive for small businesses and reduce tax burdens on local entrepreneurs.

Council debate and vote: Lynch noted the item had been under discussion for years and credited predecessors and stakeholders, including the Chamber of Commerce, for participation in the policy conversations. There were no public speakers in opposition or support during the public hearing. The ordinance passed in a roll-call vote; all council members present were recorded as voting in favor.

Implementation notes: Councilmembers said the administration has indicated willingness to work with council on measures to offset lost tax revenue and to coordinate implementation; no specific budget offsets were described during the hearing.

Ending: Council members added their names as co-patrons in support. The ordinance is now adopted; the clerk confirmed the paper has been adopted and will be implemented according to the city code amendment.