Rockingham County VA Business License: No BPOL, Merchants' Capital Tax and the May 1 Inventory Return

If you are opening a business in unincorporated Rockingham County, Virginia, you do not buy a county business license. The county does not levy a Business, Professional and Occupational License (BPOL) tax. What it taxes instead is the Merchants' Capital Tax, which means reporting your year-end inventory on a return due no later than May 1 each year.

Many Virginia localities levy a BPOL license, so business owners often assume Rockingham County does too. It does not, and that surprise is the first thing to understand before you file anything. This guide covers Rockingham County, Virginia only, not Rockingham County, North Carolina or Rockingham County, New Hampshire.

What the County Says

The Commissioner of the Revenue's page for Rockingham County states that the county does not have a Business, Professional and Occupational License tax and currently imposes the Merchants' Capital Tax on businesses. That is the county's own wording, and it is the starting point for everything else in this guide.

Virginia law explains why this is allowed. Va. Code 58.1-3704 provides that no locality is required to levy a merchant license tax or a tax on merchants' capital. The same section provides that a locality that licenses merchants cannot also tax merchants' capital on the same merchants. Rockingham County uses the capital tax rather than a general license.

Virginia has no general state business license. The State Corporation Commission (SCC) forms business entities and registers names, but it issues no business license. Any local license is a local matter, and in Rockingham County the local obligation is the merchants' capital return described below.

What the Merchants' Capital Tax Covers

Merchants' capital includes:

• Inventory of stock on hand
• Daily rental vehicles and other daily rental property
• All other taxable personal property of any kind, except tangible personal property not offered for sale as merchandise

For most retailers, wholesalers and other businesses that keep stock, inventory is the item that matters. If you hold merchandise for sale on the year-end date, you have something to report even if you have no other business property in the county.

The May 1 Inventory Return

A business operating in the county reports its year-end inventory of stock on hand on the Business Return of Tangible Personal Property, in the merchants' capital section. The return is due no later than May 1 each year.

To complete it:

1. Determine your inventory of stock on hand as of your year-end date. Ask the Commissioner of the Revenue which date and valuation method the county expects.
2. Get the Business Return of Tangible Personal Property from the county. Confirm you have the current version before you fill it in.
3. Report the figure in the merchants' capital section.
4. File by May 1.

This guide does not state the tax rate. Ask the Commissioner of the Revenue for the current rate and how it applies to your inventory. The office is located at 20 East Gay Street, Harrisonburg, VA 22802, and the phone number is 540-564-3067. Verify both the phone number and address on the county website before you rely on them.

If you start a business partway through the year, ask the Commissioner whether you need to file a return for that first year and what the county expects. If you have questions about a late filing, ask the same office what applies before the deadline passes, not after.

Zoning Comes Before You Open

Zoning requirements and any authorization you need for a location in unincorporated Rockingham County come from the county's Community Development office. Contact that office before you sign a lease, buy equipment or invite customers. A zoning problem found during site selection costs far less to solve than one found after you have opened.

Zoning is separate from the Commissioner's merchants' capital return. Clearing one does not clear the other.

State Filings That Still Apply

County rules do not replace state paperwork. Depending on how you organize your business, you may need to file with the SCC:

• Assumed name (DBA): If you operate under a name other than your legal name, file an Assumed Name Certificate with the State Corporation Commission, Clerk's Office, for $10. Assumed names are filed with the SCC, not the circuit court, and there is no newspaper publication requirement.
• LLC: Articles of Organization (Form LLC1011) cost $100. Virginia LLCs file no annual report. They pay a $50 annual registration fee to the SCC instead.
• Corporation: Articles of Incorporation (Form SCC619) cost $75. The annual report and annual registration fee depend on authorized shares. Check the SCC annual fee schedule, since the fee is $100 for up to 5,000 authorized shares plus $30 for each additional 5,000 shares.
• Name reservation: You can reserve a name for $10 for 120 days.

You can search and file through the SCC Clerk's Information System at cis.scc.virginia.gov, and the general business page is at scc.virginia.gov/businesses.

Some trades need a state license regardless of county rules. Regulated professions are licensed by state boards such as the Department of Professional and Occupational Regulation (DPOR), the Department of Health Professions, VDACS and ABC. Contractor license classes since July 1, 2025 are Class C for work over $1,000 to under $30,000, Class B for $30,000 to under $150,000, and Class A for $150,000 or more. Confirm the requirements for your trade with the relevant board before you take on work.

If Your Business Is Inside a Town

Six towns sit inside Rockingham County: Bridgewater, Broadway, Dayton, Elkton, Grottoes and Timberville. A business inside one of these town limits should contact the town for its license and zoning rules. Town rules are separate from the county's, and a town can displace the county tax within its limits.

A business inside a town also reports its inventory to the county. Filing with the county does not replace the town's requirements, and the town's requirements do not replace the county return.

Bridgewater levies its own town business license. This guide does not state Bridgewater's rates or filing dates, so ask the town for both before your county return is due. Do not assume a business in Bridgewater or any other town is exempt from licensing because it is inside the county.

The City of Harrisonburg

The City of Harrisonburg sits inside Rockingham County's geography, but it is a separate jurisdiction with its own license structure. The city's tiers are $0, $25 and $50, and the city sets its own rates. Confirm the current tiers and rates with the city before you file.

The rule depends on where your business is located:

• A business inside Harrisonburg city limits follows the city's business license rules.
• A business just outside the city, in the county, owes the city no license. It still follows the county rules described above.

Other Taxes to Check

The county's website has forms for meals and transient occupancy taxes. This guide does not state those rates, so check them with the Commissioner of the Revenue before you begin collecting either tax.

For machinery and tools and business personal property, ask the Commissioner how these items are assessed and reported. Do not assume they are covered by the merchants' capital return just because you file that return.

If you sell taxable goods, check with the Virginia Department of Taxation (Virginia Tax) about registering to collect sales tax. The base state sales tax is 5.3%, which combines the state and local shares, but the rate that applies depends on your location. Confirm it at tax.virginia.gov/sales-and-use-tax before you set prices or file.

Rockingham County Checklist

1. Confirm where your business will be located: unincorporated county, one of the six towns, or the City of Harrisonburg.
2. Contact the county Community Development office for zoning requirements before you open.
3. If you use a trade name, file an Assumed Name Certificate with the SCC for $10.
4. If you form an LLC, file Articles of Organization for $100 and plan for the $50 annual registration fee.
5. Ask the Commissioner of the Revenue for the current Merchants' Capital Tax rate and how your first return works.
6. Calendar May 1 for the Business Return of Tangible Personal Property.
7. If you are inside a town or the city, contact that jurisdiction for its license and filing dates.
8. If you sell taxable goods, register for sales tax with Virginia Tax.

For a list of other Virginia localities that do not levy a general business license tax, see the statewide guide to localities without a business license tax. Each locality sets its own rules, so do not apply Rockingham's answer to any other county.

Disclaimer

This guide is informational content, not legal or tax advice. Rates, forms and deadlines change, and the county, towns and city set their own rules. Confirm current requirements with the Commissioner of the Revenue, the county Community Development office, or the relevant town or city. For complex situations, including entity formation, a large inventory or questions about how the merchants' capital tax applies to your business, consult a qualified attorney or certified public accountant.