STAFFORD COUNTY, Va. — Stafford County officials are considering a significant change to the county’s business tax structure that could affect thousands of companies operating in one of Virginia’s fastest-growing communities.
The county is examining whether to establish a Business, Professional and Occupational License tax, commonly known as the BPOL tax.
Stafford is currently the largest Virginia county that does not impose the tax, according to Commissioner of the Revenue Scott Mayausky.
Unlike a traditional corporate income tax, BPOL taxes are generally calculated using a company’s gross receipts rather than profits.
That distinction has made the tax controversial among business owners because a company could potentially owe BPOL taxes even during a year when expenses significantly reduce its profitability.
Stafford’s absence of a BPOL tax has also been promoted as an economic-development advantage when competing with neighboring jurisdictions for companies and investment.
Introducing the tax could generate additional revenue as Stafford continues dealing with population growth and increased demand for schools, public safety, transportation and other government services.
However, county leaders would also have to consider whether additional business taxation could weaken Stafford’s competitive position.
For small businesses in particular, the proposal will likely receive close attention as officials continue examining possible revenue options.
Any decision could have broader consequences for Stafford’s economic-development strategy and its efforts to attract new employers to the Fredericksburg region.