Restaurants
How to Obtain a City of Norfolk Business License for Restaurants from the Commissioner of the Revenue.
Contact the Health Department for a Letter of Authorization
Before any Business License can be issued in the City of Norfolk, a full inspection of the business location must be preformed by the Norfolk Health Department to make sure the equipment in which the food is being prepared conforms to the city's health codes. Once this is completed, the Health Department will issue you a Letter of Authorization. You will need to bring this document with you at the time you apply for the Business License. Fees vary, but for more information on Health Inspections, contact The Norfolk Department of Public Health at 757-683-2712.
Post a Bond for the Collection of the Food and Beverage Tax
In the City of Norfolk there is a 6.5% Food and Beverage Tax that is charged to customers on all prepared food and beverages, over and above the 6% State Sales Tax. The City of Norfolk requires, according to Section 24-258 of the Norfolk City Code, that a bond be posted to secure this account. The amount of the bond to post is determined by an estimate of your sales for a three month period multiplied by the city's 6.5% rate. This bond may be posted in three forms:
- Cash or check
- An irrevocable letter of credit from your bank
- A surety bond issued by an insurance agency
If you wish to post a surety bond, forms are available from our office or online. If you wish to have an irrevocable letter of credit issued by your bank, our office will be happy to assist your financial institution with the format of the letter.
Based on your estimate of $__________________ for your gross sales, our office has determined your bond amount to be $_____________.
Business Address Must Be Approved by the City Planning Department
In the City of Norfolk, you must have your place of business in the city to obtain a Norfolk Business License and all new applications for restaurants and food establishments must be approved through The City Planning Office before a license can be issued. A copy of your lease or written documentation showing the address of the business must be presented for this approval. If you are attempting to obtain a Business License as a Mobile Food Peddler, please contact the City Planning Office in advance in order to determine if there are any special requirements you may need to get this approval. There is a $15 fee for this approval. Special Exceptions may be needed for your business, but for more information, please contact the City Planning Department at 757-664-4752.
Register a Trade Name, Fictitious Name, DBA, etc
Any person, partnership, corporation or limited liability corporation (LLC) using a name which does not identify the owner of the business must register that name in the Norfolk Circuit Court. The Circuit Court will charge a fee of $10 to register this name. For more information, contact the Norfolk Circuit Court at 757-664-4580
Cost of The Business License
The cost of the Business License is based on your estimate of total gross receipts from the day the business opens, through December 31 of the current year.
- If the estimate is greater than $100,000 the license will cost $0.20 per $100 on the full amount of the estimate
- If the estimate is less than $100,000 the license will cost $50
- Mobile Food Peddlers License is $50 flat regardless of the estimate
Business Tangible Property Tax
All property such as the following are used in the operation of your business, and is located in Norfolk as of January 1 of each year, is taxed by the City of Norfolk as business tangible property:
- Computers
- Equipment
- Fixtures
- Machinery
- Office Furniture
- Tools, etc.
A form will be mailed to your business which will ask you to send in a list of all your property, informing us of its description, its purchase date, and its original cost.
Property Assessment
The City of Norfolk will assess the property at 40% of the original cost and the assessment will be taxed at the rate of 4.33%. The payment for the tax is due by June 5th of each year.
If we do not receive a list of your equipment, our office is required by law to statutorily assess the property by using the best information we have available to us (such as prior lists submitted and/or industry standards).
What You Need to Bring with You if You Apply in Person
When applying in person, please allow at least one hour to complete the application process. To help your application process go faster, be sure to bring these important documents with you:
- Estimate of gross receipts through December 31st
- Federal Tax ID number from the IRS (visit the Internal Renevue Service website to obtain online)
- If your business is a corporation, LLC, LLP, etc, please bring a copy of your certificate issued by the Virginia State Corporation Commission. For more information, go to the SCC website.
- Lease of business location or other written documentation
- Identification (Picture ID)
Methods of payment accepted by the Norfolk City Treasurer
- Cash
- Check (advisable to bring separate checks for each step mentioned above)
- Credit Card (most major card companies accepted)
- Debit Card (card must display either a MasterCard or Visa logo)
Additional Questions
If you have any further questions, please feel free to contact the Business Tax Team at 757-664-7886.