Where applicable, content Copyright 2007,
City of Martinsville
55 W. Church St.,
Martinsville, VA 24114

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Business License

The City of Martinsville's business license calendar year begins January 1 and ends December 31 of each year.  All Business License Applications shall be filed on or before March 1 of each year with the Office of the Commissioner of the Revenue, P.O. Box 1222, Martinsville, VA  24114-1222. 

All gross receipts, or purchases, or amounts given on the Business License Application will be considered estimated unless verified by a federal IRS Schedule C (if an individual), or IRS Form 1065 (if a partnership), or IRS Form 1120 (if a corporation) or other records that will coincide with Federal IRS Schedules and Forms mentioned. 

If the federal IRS Schedules or Forms are not available by March 1, please send such verification by April 15 (if calendar year filer) or within three (3) months and fifteen (15) days from the close of your taxable year (if a fiscal year filer).  If you file a consolidated federal tax return, please have your CPA, tax accountant or tax director, etc., send the Commissioner’s office a notarized letter stating gross receipts, or purchases, or amounts, whichever is applicable, on all business done through the Martinsville business location.

All applicants for business licenses are counseled regarding business license requirements prior to the license being issued by the Commissioner of the Revenue.  Business entities are classified by industry type and assessed at a tax rate set by the City Council.  (See rates below.)

Specific information is required of new business license applicants and existing licensees that wish to change the status of a business license.

Certain Information Required to Apply for a Business License

• Social Security Number for individuals and/or Federal I.D.

• Beginning date of business

• Business location and mailing address for renewals. 

• Proof of residence required for home business locations.  Applicants may operate from their residence upon prior approval from the Zoning Division of the Community Development Office (276-403-5169).

• Phone number, fax number and e-mail address

• Actual or estimated gross receipts

• Signature (notarized if not signed before a Commissioner's Deputy)

• Assumed name -- must be registered with the Martinsville Clerk of Court.  The fee is $10 and is payable to the Martinsville Clerk of Court.  Each assumed name constitutes a separate business and business license.

• Completed Certificate of Insurance for Contractors

• Business license tax payable to:  Treasurer -- City of Martinsville.  Please mail license application and check(s) to Commissioner of the Revenue, P.O. Box 1222, Martinsville, VA  24114-1222.

City of Martinsville Business License Categories and Rates

Sole Proprietor

The individual must apply in person.

Partnership

One of the partners may apply for a Limited Partnership with a registered copy of the Certificate of Limited Partnership filed with the State Corporation Commission.  Without this documentation, all partners must apply.

Corporation

An officer must apply for domestic corporations with a registered copy of the Certificate of Corporate Charter filed with the State Corporation Commission.  A list of officers and Federal I.D. number must be attached to the certificate.  Foreign corporations must instead provide a registered copy of a Certificate of Authority to Transact Business in Virginia filed with the State Corporation Commission.

Limited Liability Company

A member must apply for domestic companies with a registered copy of the Articles of Organization filed with the State Corporation Commission.  A list of all partners must be attached to the certificate.  Foreign companies must instead provide a Certificate of Registration of a Foreign Limited Liability Company filed with the State Corporation Commission.  Professional companies must provide a registered copy of the Articles of Organization for a Professional Limited Liability Company filed with the Corporation Commission State.

License Basis and Term

Deputies of the Commissioner of the Revenue interview all applicants for a business license.  Every person engaged in any business trade, profession, occupation or calling within the City of Martinsville is required to apply for a business license and pay the license tax prior to beginning business.

Tax rates are set by City Council and vary by industrial classification.  All businesses must be licensed yearly from the date they begin business and the license is good until the end of the calendar.  Three (3) general business license terms apply:

New Business -- A new business is required to make application for a business license and pay such license tax prior to beginning business.  The business license is based on the business’ estimated gross receipts from the beginning date of business through the next December 31.  The estimate shall be subject to correction based upon the actual gross receipts for this initial license year.

First Renewal License  -- The first renewal business license is based on an estimate of gross receipts from the next January 1 through December 31.  The estimate shall be corrected upon completion of the first base year which reflects a full twelve (12) months of operation and actual gross receipts for that period.

Annual Renewal License -- After a business has been licensed to operate for an entire business license year (January 1 through December 31), the next business license is based on the gross receipts of the prior calendar year (January 1 through December 31).

Application and Payment

The license tax shall be paid with the Business License Application(s) by March 1 in the case of any license not based on gross receipts or purchases.  (Examples: ABC licenses, amusement operator licenses, saving institutions and state chartered credit unions which have their main office in the City of Martinsville, businesses that are issued a flat fee license, etc.)

If the tax is measured by the gross receipts or purchases of the business, the tax shall be paid on or before May 1.  (Deadline for the Business License Application(s) is March 1.)

ABC Business License Applications

A separate business license is required of all businesses licensed by the Virginia Alcoholic Beverage Control Commission.  The Commissioner of the Revenue office will calculate all ABC license tax liabilities each year.  Then the office will forward the license applications to the City of Martinsville Treasurer who will send a bill for the amount due to the business.  Failure to receive such bill does not relieve the business of its obligation to pay on or before March 1 of the current license year.

Extensions

Any extension granted by the IRS for your federal tax return may be used to justify a waiver of the penalty and interest required by the ordinance.  However, to receive such waiver, you must have obtained and paid your current calendar year estimated license on March 1^st or May 1^st, depending on which due and payable date is applicable to you.  The Commissioner of the Revenue office must receive a copy of any extension received from the IRS.

Late Filing Penalty, Late Payment Penalty and Interest

A penalty of ten (10) percent of the tax may be imposed upon failure to file an application or the failure to pay the tax by the appropriate due dates.  Only the late filing penalty shall be imposed by the Commissioner of the Revenue.  Interest shall be charged on the late payment of the tax from the due date until the date paid without regard to fault or other reason for the late payment.

Contact Business License Auditors

Phone:  (276) 403-5133 or (276) 403-5131

Fax:  (276) 403-5337

E-mail