By Josh Brown

VIRGINIA BEACH

Tax-preparation chain Liberty Tax Service is set to build a 30,000-square-foot expansion to house its recently acquired online tax business.

The company will break ground in October if it receives approval today from the Virginia Beach Development Authority.

John T. Hewitt, chief executive officer of Virginia Beach-based Liberty, said the company plans to purchase from the city just less than an acre next to its location in the Corporate Landing Business Park to build the $6.46 million expansion.

The company already occupies a 31,000-square-foot building at the park off Dam Neck Road.

The Development Authority also will consider granting Liberty a $350,000 economic development grant for the expansion.

Liberty acquired eSmartTax from C&S Technologies in San Jose, Calif., in 2006 with plans to eventually move the online tax preparation and filing company to Hampton Roads.

ESmartTax employs about 50 workers in Virginia Beach and will employ a total of 144 workers once construction is complete and the company is up and running next year, Hewitt said.

He said none of the workers from San Jose will relocate to Virginia Beach.

The company plans to hire management, tax and legal advisers and technical support workers in the coming months.

Warren Harris, Virginia Beach's economic development director, said he is delighted to keep Liberty in the city. Hewitt said Liberty had considered moving the entire company to another city in the region but decided to stay at its current location.

"Clearly this is a reaffirmation that Corporate Landing is a great corporate headquarters park," Harris said.

Liberty, founded in 1997, has about 3,000 offices throughout the United States and Canada.

ESmartTax is a participant in the Free File Alliance, an industry partnership that allows certain taxpayers to file their returns electronically at no cost.

Josh Brown, (757) 446-2318, josh.brown@pilotonline.com