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Frequently Asked Questions (FAQ)

Do all cities and counties require business tax receipts?
Not all cities and counties require business tax receipts, but it’s far more common than uncommon. For those that do not require a business tax receipt, they likely require a similar business license, permit or certificate.
Are some business types exempt from business tax receipts?
Exemptions vary across jurisdictions. Many local governments exempt charitable, religious, fraternal, youth, civic service and other community-focused organizations.
Do business tax receipts expire?
Most business tax receipts are good for a one-year period and must be renewed on an annual basis. Check with the appropriate governing bodies to see if your terms differ.
Do I need a new business tax receipt if my business moves?
A mailing address change within the same jurisdiction doesn’t usually require a new business tax receipt. However, a move to a new jurisdiction will most likely necessitate a new business tax receipt. Consult with the appropriate governing bodies for definitive guidance.
Do I need multiple business tax receipts if I own multiple businesses in the same city?
Generally, a business tax receipt is required for each distinct business you own. As noted above, certain types of businesses may qualify for exemption.
How do the fees for business tax receipts affect my federal and state income taxes?
Generally, the fees paid for business tax receipts are deductible as business expenses on your federal and state tax returns. While these fees represent an upfront outflow of cash, they can be partially recovered via a reduction in your income tax obligations.

Sources:

City of Lompoc. (n.d.). Business Taxes and Permits. Retrieved from CityOfLompoc.com


City of Orlando. (n.d.). Get a Business Tax Receipt. Retrieved from https://www.orlando.gov/Building-Development/Permits-Inspections/Other/Get-a-Permit-for-Your-Business/Get-a-Business-Tax-Receipt


Fairfax County. (n.d.). BPOL Flat Fees and Rates. Retrieved from FairfaxCounty.gov


Miami Dade County. (n.d.). Local Business Tax Categories. Retrieved from Miamidade.gov


Tax Foundation. (n.d.). Gross Receipts Tax. Retrieved from https://taxfoundation.org/tax-basics/gross-receipts-tax/

About the Author

Thomas J. Brock

Thomas J. Brock

Chartered Financial Analyst and a Certified Public Accountant

Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. He currently oversees the investment operation for a $4 billion super-regional insurance carrier, maintaining a dynamic investment policy designed to preserve capital, enhance profitability, and support growth.

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