Alexandria has an ordinance (No. 4408) that provides business license tax relief, reform, and simplification for small and medium-sized businesses during their first two years of operation in the city. The initiative reduces the tax burden to $50 in the first year for businesses whose estimated gross receipts are between $100,000 and $2 million.
In the second year, the tax burden on average is cut in half as businesses pay the license tax based on the first year's actual gross receipts instead of the second year estimated gross receipts. The businesses pay the license tax in the third year based on the second year's actual gross receipts. These reforms leave start-up businesses with more money in the initial years and serve as an incentive for businesses to locate in Alexandria. (A Report from the National League of Cities)