Chesapeake Business License: Zoning Approval First, $50 Per Line, Two-Year Incentive and 10% Penalty
Getting a business license in Chesapeake is straightforward once you know the order of operations. The step people miss is the Application for Zoning Approval. Since November 6, 2023, every new application with a Chesapeake trade location must include it. This guide walks through the steps, documents, rates, deadlines and penalties for the business license that the Chesapeake Commissioner of the Revenue issues.
This page is informational content, not legal or tax advice. Rates, ordinance sections and deadlines can change. Confirm anything marked “(verify)” with the Commissioner of the Revenue before you rely on it. If your situation is complex, such as multiple locations, a mixed entity structure or a regulated trade, talk to a qualified attorney or CPA.
Start With Zoning Approval
Every new business application with a Chesapeake trade location must include an Application for Zoning Approval. Send zoning questions to zoninginquiries@cityofchesapeake.net or call 757-382-8454. That number belongs to the zoning office. It is not the Commissioner’s main line, so don’t use it for license questions.
The requirement does not apply to contractors or mobile food units based in another locality. If you are one of those, confirm with the Commissioner whether you need the zoning application.
What the License Is
Virginia has no general statewide business license. The State Corporation Commission (SCC) forms your entity and handles name filings, but it issues no business license. Chesapeake’s license is a local Business, Professional and Occupational License (BPOL) tax under Va. Code 58.1-3700 and following. Each locality sets its own rates and filing deadlines, and some localities levy no general license at all. Don’t assume the rules of a neighboring city or county apply to you.
Documents to Gather
- Trade name: If you operate under a name other than your legal name, register it with the SCC first. An assumed name certificate costs $10 and is filed with the SCC, not the circuit court.
- Federal tax ID: Required for an LLC or corporation.
- DMV address: Your vehicle registration address should match the business address on the license.
- Forms: The license application, the addendum, the zoning application, the Important Notice form and the Qualified Notice form.
- Photo ID.
Some businesses need additional paperwork:
- Contractors add proof of workers’ compensation coverage and either a Virginia contractor license or an exemption affidavit.
- Prepared-food sellers file a Special Tax Application, post a bond and contact the Health Department at 757-382-8600.
- Anyone with delinquent business personal property tax must pay it before a license is issued.
Where to Apply
We did not find an online business license portal for Chesapeake. Forms are signed and scanned and then emailed, faxed, mailed or brought in person.
| Contact | Details |
|---|---|
| Commissioner of the Revenue (street address) | 306 Cedar Road, Chesapeake, VA 23322 |
| Mailing address | P.O. Box 15285, Chesapeake, VA 23328 |
| Main line | 757-382-6455 |
| Business Tax | 757-382-6738, 757-382-6739 or 757-382-6740 |
| Fax | 757-382-8822 |
| bustax@cityofchesapeake.net |
The Commissioner also operates three branch offices:
- Deep Creek: 824 Old George Washington Highway North, 757-382-3650
- South Norfolk: 1205 20th Street, 757-382-3675
- Western Branch: 2808 Taylor Road, 757-382-3663
Fees and Rates
The city’s new-business notice describes a $50 annual license fee for each separate line of business. If you run two distinct lines, expect a fee for each. Confirm with the Commissioner how the city classifies your lines before you file.
The license tax is also based on gross receipts. The city-affiliated economic development site publishes the following rates per $100. We could not read City Code Chapter 18 itself, so every rate below needs confirmation.
| Business category | Rate (verify) |
|---|---|
| Retail | $0.20 per $100 of gross receipts (verify) |
| Wholesale and distributors | $0.12 per $100 of purchases (verify) |
| Financial and professional | $0.58 per $100 of gross receipts (verify) |
| Business services | $0.36 per $100 of gross receipts (verify) |
| Contractor, personal and repair | Confirm with the Commissioner of the Revenue, including any recent change |
The Two-Year New-Business Incentive
Under City Code 18-2 and 18-3, a business that first locates in Chesapeake on or after January 1, 2012 pays only the $50 per line fee in its first license year and the next. The incentive excludes:
- Peddlers and itinerant merchants
- Alcohol sellers
- Contractors licensed under Va. Code 58.1-3715(B)
- Anyone who is delinquent
If your business qualifies, ask the Commissioner to confirm the incentive applies before you file.
Renewal, Deadlines and the Late Penalty
Renewal and full payment are due March 1. If you pay late, the penalty under City Code 18-4 works like this:
- Base penalty: 10% of the tax or $10, whichever is greater
- Interest: 10% a year on the unpaid amount
- Repeat noncompliance: A business with a history of noncompliance faces an additional 10% (minimum $10), for 20% combined
As an example, a $1,000 tax bill paid late carries a $100 penalty plus interest. On a $50 bill, 10% is only $5, so the $10 minimum applies.
Two other rules matter:
- Each day of unlicensed operation is a separate offense.
- You need one license per definite place of business.
Other City Taxes to Plan For
The license is only one of several city taxes that may apply to your business:
| Tax | Rate or amount | Notes |
|---|---|---|
| Business tangible personal property | $4.08 per $100 | Return due March 1; tax due June 5 |
| Machinery and tools | $3.20 per $100 | Same filing schedule as business personal property |
| Motor carrier | $3.20 per $100 | Same filing schedule as business personal property |
| Meals | 6% | Raised from 5.5% on July 1, 2022 |
| Lodging | 8% plus a flat room tax of $2.00 per room per night | Room tax effective July 1, 2025. The city’s special tax application still prints $1, which is out of date. |
| Admissions | 10% | |
| Equipment rental | 1% (heavy equipment 1.5%) | |
| Excavation | $0.25 per cubic yard |
Sales tax in Chesapeake is 6.0%, made up of 4.3% state, 1.0% local and 0.7% regional. The Virginia Department of Taxation publishes sales tax guidance at tax.virginia.gov.
Home Occupations, Short-Term Rentals and Mobile Vending
Home occupations fall under Zoning Ordinance 14-301 and 6-2003. Ask the city what applies to your home business, and don’t assume a standard fee applies. We did not find a fee to state here.
Check with the city about the short-term rental registry and mobile vending rules before you open. Also, be careful with the term “short-term rental.” In BPOL law it refers to equipment rental, not a vacation rental. The equipment rental tax above applies to that activity.
Checklist
- Register your trade name with the SCC if you use one
- Submit the Application for Zoning Approval (not required for contractors or mobile food units based in another locality)
- Complete the license application, addendum, Important Notice form and Qualified Notice form
- Pay the $50 annual fee for each separate line of business
- Calendar March 1 for renewal and full payment
For questions about your specific rates, classifications or exemptions, contact the Chesapeake Commissioner of the Revenue at 757-382-6455 or bustax@cityofchesapeake.net.