BUSINESS MATTERSSTAY ON THE RIGHT SIDE OF THE LAW

Business Taxation and Licensing

Commissioner of Revenue OfficeDanville, Virginia

Business License

Business Licenses: The First Step

If you are receiving monetary compensation for products sold or services rendered, you need a Danville City Business License.

This License is renewed yearly. Due March 1st.

Failure to renew can lead to an appearance in court!

Business License tax rates for the City are based on the business’s gross receipts for the

entire calendar year.

All City of Danville Business Licenses (with the exception of taxi services and junkyards) are based on the calendar year (Jan-Dec).

We do not pro rate the license fee.

The following criteria that apply to your business must be met before you apply for a City of Danville business license.

All businesses located in the City of Danville must have zoning approval for the business location from the Planning Division, located at 427 Patton Street, room 207 434-799-5261.

All businesses (except for corporations that are registered with the State of Virginia) must register the business name with the City of Danville at the Clerk of Court's Office, located in the James F. Ingram Justice Center, 401 Patton Street, room 222B 434-799-5168.

All businesses dealing with food must have a health permit. Restaurants and all other businesses serving prepared food need to contact the local Virginia State Health Department 434-799-5190. Grocery & convenience stores not serving prepared food should contact Virginia Department of Agriculture

All businesses dealing with alcoholic beverages must have an ABC permit from the ABC Board 800-552-3200.

All businesses selling retail must register with the Virginia Department of Taxation 804-367-8037.

All contracting businesses with individual job costs of $1,001 or more must also have a Virginia State Contractors License and be bonded for $5,000 (Class A State License does not need the $5,000 bond). A Virginia State Contractors License can be obtained from the Department of Professional and Occupational Regulation 804-367-8511.

The following criteria that apply to your business must be met before you apply for a City of

Danville Business License. (continued) Incorporated businesses require proof of State

Corporation from the State Corporation Commission. Operating a day care center for children (5 or more) you

will need to contact Vicki Stauffer, Roanoke Social Services Office (540) 857-7946.

Operating an adult home (4 or more) you will need to contact Chris Austin, Roanoke Social Services Office (540) 857-7868

Owners of barbershops and beauty salons must have a shop or salon license, which can be obtained from the Department of Cosmetology (804) 367-8509. ALL stylists must have their state license with them when applying for their city business license.

Business License Office Contacts

Bryan Gibson, Business License Inspector

James Gillie, Commissioner of Revenue

Located in:Charles Harris Financial Building311 Memorial Drive, 2nd Floor

Business Personal Property Tax

Business Personal Property Returns

What is business personal property tax?

Business personal property tax is a tax on the furniture, fixtures, machinery, and tools used in a business, trade, or profession. The Code of Virginia (§58.1-3503) states that all tangible business personal property is taxable for the physical life of the property regardless of age (1 day or 1,000 years old). Taxable assets include items that have been received free of charge, as a gift, or personal items that have been brought from home to use in the business. Taxable property also includes items that have been partially or fully depreciated for income tax purposes. This tax is assessed annually and is based on all assets owned, or in the possession of, the business on January 1.

Business Personal Property Form

DUE MARCH 1 All assessments are

by percentage of original cost.

City of Danville tax rate is $3.00 per $100.00.

This includes furniture, fixtures, computers, peripheral, and equipment.

Machinery and Tools Tax

Machinery and Tools Personal Property Form

DUE MARCH 1 City of Danville tax rate for

machinery and tools is $1.50 per $100.00.

This return should include only machinery and tools used in manufacturing, mining, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning or laundry business.

DO NOT INCLUDE OFFICE EQUIPMENT, FURNITURE, OR FIXTURES.

Meals Tax

Meals Tax New Business Registration

What is considered a “meal” that is subject to the Meals Tax? A meal is any prepared food or drink

offered or held out for sale by a food establishment for the purpose of being consumed by any person to satisfy the appetite and that is ready for immediate consumption.

Does the meal, or prepared food, have to be consumed on the premises of the business where it is purchased to be taxable? No. The meal, or prepared food, is

subject to the Meals Tax whether it is intended to be consumed on the seller’s premises or elsewhere and without regard to the manner, time or place of service.

Meals Tax Collection and Reporting

The meals tax for the City of Danville is 6% of the cost of meals and/or drinks (including alcohol). This tax is due and payable by the customer at the time such items are purchased.

It is the duty of the proprietor of the establishment to keep accurate records of all meals tax monies collected. The proprietor must deliver these monies along with a meals tax return to the Commissioner of the Revenue on/or before the last day of the calendar month following the month for which taxes were collected. 

Records must be maintained for 5 years.

Meals Tax Return When said taxes are

reported and paid by the due date, the proprietor may deduct 3% of the tax amount due.

If said taxes are not received in a timely manner, they are considered past due, and the 3% discount does not apply and a 10% penalty for late filing is added to taxes due. 

Lisa W. FordMeals Tax Inspector

Transient Lodging

Transient Lodging Tax Transient: a person who is staying or

working in a place for only a short time. According to the Danville City Code,

Article VI, sec 37-97., hereby levied and imposed upon each transient, in addition to any and all other taxes and fees of every kind imposed by law, a tax equivalent to six (6) percent of the total amount paid by or for such transient for the rental of any room in any hotel. 

Transient Tax Reporting Those collecting

transient tax shall make out a monthly report (pictured) and deliver to the City Collector with a remittance of tax due.

Due before or on the 20th day following the close of each month covering the amount of tax collected during the preceding month.

Short Term Rental Tax

Short Term Rental: Definition

A person is engaged in the short-term rental business if not less than eighty percent of the gross rental receipts of such business in any year are from transactions involving rental periods of ninety-two consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lesser 

Short-Term Rental Tax  Every person, individual,

partnership, or corporation engaged in the short-term rental business must file an application with the Commissioner of the Revenue for a certificate of registration.

If your business qualifies as a short-term rental business, you will be issued a certificate and your license tax and personal property will be reclassified.

Short Term Rental (con’t) Every person engaged

in the short-term rental business shall collect a 1% daily rental property tax from the lessee of the daily rental property at the time of the rental. 

This tax shall be in addition to all other taxes levied pursuant to section 58.1-605 of the Code of Virginia.

Compliance Review (Audit)

Compliance Review Businesses in the

City of Danville are responsible for following set guidelines for taxes and reporting.

Our office randomly selects businesses throughout the City for compliance review audits.

Compliance Review-What you need to know.

The purpose of our review is to ensure a business is operating within the guidelines set by the City Code and the State of Virginia.

We are here to help businesses comply with the City and State’s regulations for business reporting.

Our goal in this office is to help your business succeed!!

What We Look At… Sales Records Documentation for Sales and Purchases Adequate Records (cash register summaries,

computer summaries, tax records, bank statements) Business Property Records (purchase receipts,

depreciation schedules, lease agreements, disposal records)

Financial Statements Physical Review of Establishment (equipment,

records, business operations)

Note: Maintain all records for at least 5 years.

Contact Our Office Physical Address

311 Memorial DriveDanville, VA 24541

Mailing AddressP.O. Box 480Danville, VA 24543

Website: http://www.danville-va.gov/524/Commissioner-of-Revenue Phone: 434-799-5145

Fax: 434-799-5148 Hours

Monday - Friday8:30 am - 5 pm

Useful Websites for New and Current Businesses in Danville

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Starting-a-Business

http://www.tax.virginia.gov/content/business-home

https://www.municode.com/library/va/danville/codes/code_of_ordinances