Frequently Asked Questions

All businesses and professional operations must obtain a Salem business license before commencing operation in the City. This includes home businesses, special events, and those persons paid on a 1099. Contractors having a definite place of business in a locality other than Salem, but performing work within City limits must also obtain a Salem license. Please Email Sidney C Kuzmich for any clarification as to whether you are subject to being licensed.

License tax for the first year of operation will be based on an estimate of your gross receipts from the date you begin operation until the end of the current year. Each subsequent year's license costs will be determined by your actual gross receipts from the prior year. Businesses are subject to supplemental billing for the first two years of operation. Tax rates vary by classification depending on the nature of your business and businesses may have multiple classifications. 

All businesses making less than $50,000 in gross receipts will pay a flat $50 fee per classification. For businesses with gross receipts of $50,000 or greater please refer to the rate chart below:

• Contractors - $.16 per $100 gross receipts
• Retail and Short-Term Rental - $.20 per $100 gross receipts
• Repair, Personal, Amusement, and Business Services - $.36 per $100 gross receipts
• Real Estate, Financial, and Professional Services - $.58 per $100 gross receipts
• Wholesale Business- $.13 per $100 gross receipts or purchases

Home-based businesses must first be approved for a Home Occupation Permit through the Zoning Department. A new home-based business application must be submitted any time the location of the business/applicant changes.

Look for a Business License decal at all local businesses to know they have obtained their annual license, Email Commissioner of the Revenue, or contact our office by phone at 540-375-3019.

Food and Beverage (Meals) Tax filings and payment can be made online, by mail, or in the Commissioner’s office. For questions please contact businesstax@salemva.gov

Transient Occupancy (Lodging) Tax filings and payments can be made online, by mail, or in the Commissioner’s office. For questions please contact businesstax@salemva.gov