reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-50 - Construction loan deeds of trust or mortgages

Current through Register Vol. 40, No. 24, July 15, 2024
When a construction loan deed of trust or mortgage is
				  converted to a permanent loan deed of trust or mortgage, no tax shall be
				  imposed under § 58.1-804 of the Code of Virginia if the persons are the
				  same who made the instrument which the construction loan deed of trust or
				  mortgage secured, if there is no additional amount and the tax was paid on the
				  construction loan deed of trust or mortgage.
Statutory Authority
§§ 58.1-203 and 58.1-804 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-60 - Deeds of release

Current through Register Vol. 40, No. 24, July 15, 2024
A deed of release is "[a deed] releasing property from the
				  encumbrance of a mortgage or similar pledge upon payment or performance of the
				  conditions. More specifically, where a deed of trust to one or more trustees
				  has been executed, pledging real property for the payment of a debt or the
				  performance of other conditions, substantially as in the case of a mortgage, a
				  deed of release is the conveyance executed by the trustees, after payment or
				  performance, for the purpose of divesting themselves of the legal title and
				  revesting it in the original owner." [Black's Law Dictionary, Fifth
				  Edition.]
Statutory Authority
§§ 58.1-203 and 58.1-805 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-70 - Deeds of partition; transfers pursuant to decree of divorce or separate maintenance, etc

Current through Register Vol. 40, No. 24, July 15, 2024
When a deed is offered for recordation under § 58.1-806
				  of the Code of Virginia pursuant to a divorce, since this section does not
				  provide that the deed refer to a divorce or decree of separate maintenance, the
				  clerk must be satisfied that the deed does qualify for the fifty cents
				  taxation. The clerk may require evidence such as an affidavit of the parties, a
				  copy of the decree of divorce, or separate maintenance, and other extrinsic
				  evidence sufficient to satisfy the clerk that the fifty cents taxation is
				  proper.
Statutory Authority
§§ 58.1-203 and 58.1-806 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-80 - Contracts generally; leases

Current through Register Vol. 40, No. 24, July 15, 2024
A. Examples of contracts and leases taxable
				under § 58.1-807 of the Code of Virginia:
1. The assignment of an overriding royalty
				interest. The term "royalty interest" generally refers to a right to share in
				the production of oil and gas at severance; it is personal property and relates
				to the proceeds from oil and gas leases if and when there is production. A
				"royalty" is not realty but personalty and a contract entirely separate and
				distinct from the oil and gas lease, which contract requires the owner of the
				interest in realty to share a portion of the royalty with another. The royalty
				interest does not run with the land.
2. The recordation tax under § 58.1-807
				of the Code of Virginia on options is measured by the consideration given for
				the option and not by the value of the property involved.
3. An agreement not to encumber or transfer
				property is a contract relating to real property. The tax would be imposed upon
				the unpaid principal and interest of the note or notes.
4. An amended lease which increases the
				original monthly payments. The tax is based on the difference or the increase
				in the monthly payments.
5. A lease
				and a contract of sale when both agreements are contained in a single document.
				This type of document contains more than one type of contract, and the
				recordation tax is imposed upon each contract; i.e., the lease and the contract
				of sale.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-90 - When supplemental writings not taxable

Current through Register Vol. 40, No. 24, July 15, 2024
A. A deed of assumption by which the
				purchaser assumes the deed of trust or mortgage of the grantor (seller) is not
				taxable.
Example:
Real estate sold for
$100,000
Cash payment for equity
30,000
Assumption of Deed of Trust (No tax)
70,000
Tax under § 58.1-802 computed on the consideration
						  of $100,000
150.00
Tax under § 58.1-803 computed on consideration
						  ($100,000) less value of lien or encumbrance ($70,000) remaining on real estate
						  at time of sale
30.00
Tax under § 58.1-814 by county or city
50.00
TOTAL TAX (state & local)
$230.00
Statutory Authority
§§ 58.1-203 and 58.1-809 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-100 - What other deeds not taxable; definitions

Current through Register Vol. 40, No. 24, July 15, 2024
A. A "deed of confirmation" is a conveyance
				which may be utilized in order to accomplish many purposes. It may be utilized
				in order to remove doubts as to effectiveness or operativeness of a prior deed;
				to ratify a prior deed executed by an agent or a deed executed by one under
				disability. A deed of confirmation is one which affirms, corrects, ratifies or
				adds effectiveness or legality to an earlier deed, which is essential to make
				the earlier deed effective. As between the parties, a confirming deed relates
				back to the date of the original instrument.
B. A "deed of correction" corrects defects
				appearing in the original instruments, such as misnomers, errors in the
				property description, or omissions of the names of the grantees.
Statutory Authority
§§ 58.1-203 and 58.1-810 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-110 - Exemptions

Current through Register Vol. 40, No. 24, July 15, 2024
A. The exemption
				set forth in § 58.1-811A(A)(2) of the Code of Virginia does not apply if
				the conveyance is made to any corporation, a separate entity of a church or
				religious body, and not to the trustee or trustees of a church or religious
				body. This also applies under § 58.1-811B(B)(2) of the Code of Virginia
				where the conveyance is made by any corporation, a separate entity of a church
				or religious body, rather than trustees of the religious organization conveying
				to trustees under a deed of trust.
B. A conveyance to a health clinic is not
				exempt under § 58.1-811A(A)(5) of the Code of Virginia unless the clinic
				is an integral part of a hospital conducted not for profit.
C. To qualify for the exemption under §
				58.1-811A(A)(6) of the Code of Virginia:
1.
				The transfer must take place upon organization of the corporation. The transfer
				must be made within a period of time sufficiently close to the inception of the
				corporation so that it can be reasonably concluded that the transfer is an
				integral part of the formation of the corporation;
2. The transferor(s) must be in control of
				the transferee corporation immediately after the transfer. The transferor(s)
				must own:
a. at least 80% of the total
				combined voting power of all classes of stock entitled to vote;
b. at least 80% of the total number of shares
				of all other classes of stock of the corporation; and
3. The transaction must qualify in all other
				respects with § 351 of the Internal Revenue Code, as it exists at the time
				of the transfer.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 320 - RECORDATION TAX REGULATIONS › Section 23VAC10-320-120 - Taxation of instruments relating to property located in more than one jurisdiction

Current through Register Vol. 40, No. 24, July 15, 2024
A. When
				a deed conveys real estate located in two separate jurisdictions, the formula
				for prorating the local tax is:
$1,000,000 (Property in jurisdiction #1)
x $1,575.00 (State recordation tax) ÷
						  1/3
$1,050,000 (Total property conveyed)
= $500 (Local tax for jurisdiction #1)
$50,000 (Property in jurisdiction #2)
x $1,575.00 (State recordation tax) ÷
						  1/3
$1,050,000 (Total property conveyed)
= $25 (Local tax for jurisdiction #2)
B. The formula for the local tax on a deed of
				trust conveying property located in two jurisdictions is:
Value of property in jurisdiction #1
x Total debt x Rate of tax = State
						  recordation tax ÷ 1/3
Total value of all property
= Local tax for jurisdiction #1
Value of property in jurisdiction #2
x Total debt x Rate of tax = State
						  recordation tax ÷ 1/3
Total value of all property
= Local tax for jurisdiction #2
Statutory Authority
§§ 58.1-203, 58.1-814 and 58.1-3800 of the Code
					 of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 330 - BANK FRANCHISE TAX › Section 23VAC10-330-20 - Computation of net capital

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. The net capital of a bank is computed as follows:
1. Compute gross capital by adding the
				following accounts as reported on the report of condition:
(i) preferred stock,
(ii) common stock,
(iii) surplus,
(iv) undivided profits and reserve for
				contingencies and other capital reserves, and
(v) one half of any reserve for loan losses
				net of applicable deferred tax.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 330 - BANK FRANCHISE TAX › Section 23VAC10-330-30 - Deductions from gross capital

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. In addition to items explained in
				23VAC10-330-20 B, deductions from
				gross capital include the (i) assessed value of real estate, (ii) book value of
				certain tangible personal property, (iii) capital attributable to qualifying
				U.S. government obligations, and (iv) amount of capital accounts of certain
				bank subsidiaries. These items are regulated in this section.
B. Assessed value of real estate.
1. Deductible assessed value of real estate
				for bank franchise tax purposes is limited to the assessed value of real estate
				:
a. If otherwise taxed in this Commonwealth
				that is (i) owned by such bank or (ii) used or occupied by such bank if held in
				the name of (a) a majority-owned subsidiary of the bank , (b) a bank holding
				company that owns a majority of the capital stock of such bank, or (c) any
				wholly owned subsidiary of the bank holding company that owns a majority of the
				capital stock of such bank.
b. If
				real estate is in the nature of improvements to real estate owned by and
				assessed in the name of another person (the underlying land owner) and such
				improvements are (i) owned by the bank or (ii) used or occupied by the bank and
				owned by a majority-owned subsidiary or by a wholly owned subsidiary of a bank
				holding company, the assessed value up to the amount of unencumbered equity is
				deductible. The unencumbered equity shall be deemed to mean the assessed value
				of such improvements less the unpaid balance of all encumbrances thereto.
Example: Bank F constructs a bank building on land owned by
				  and leased from Corporation C. While the total value is assessed in the name of
				  Corporation C, the land owner, Bank F may deduct the portion of the total real
				  estate tax assessment attributable to the value of the building to the extent
				  not encumbered.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 330 - BANK FRANCHISE TAX › Form - FORMS (23VAC10-330)

Current through Register Vol. 40, No. 24, July 15, 2024
Virginia Bank Franchise Tax 2008, Form 64, Schedules and
				  Instructions (rev. 12/07).
Enterprise Zone Credit, State Bank Franchise Tax, Form 301
				  (rev. 10/06).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 340 - INTANGIBLE PERSONAL PROPERTY TAX REGULATIONS › Section 23VAC10-340-20 - Classification; rate of tax

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. The statutory definition of intangible personal property, which is
				segregated for state taxation, only, includes:
(a) inventory,
(b) personal property, tangible in fact, used
				in manufacturing, mining, radio or television broadcasting, dairy, dry cleaning
				or laundry businesses, and also cable television businesses which were added by
				1983 legislation with specific property exceptions,
(c) money,
(d) bonds, notes and other evidences of debt,
				demands and claims,
(e) shares of
				stock,
(f) accounts receivable,
(g) all other property which has
				been defined as capital pursuant to §§ 58-411 and 58-412 prior to
				repeal, and
(h) by 1983
				legislation, effective July 1, 1983, imported merchandise located in foreign
				trade zones in Virginia and merchandise in such zones which is destined for
				export. All property defined as Intangible Personal Property is exempt from
				local property taxation whether or not State Intangible Personal Property Tax
				is imposed on such property.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 340 - INTANGIBLE PERSONAL PROPERTY TAX REGULATIONS › Section 23VAC10-340-30 - Intangible personal property of certain poultry and livestock producers

Current through Register Vol. 40, No. 24, July 15, 2024
Farmers raising poultry and livestock are exempt from state
				  intangible personal property tax. This exemption does not apply to businesses
				  which enter into contracts with farmers for the production of poultry or
				  livestock when such businesses (a) furnish the poultry or livestock, feed and
				  supplies to the farmers and (b) assume all financial risks, including all
				  losses in the growing and marketing of such poultry or livestock. These
				  businesses are subject to state intangible personal property tax except that
				  poultry and livestock, while under production contract with farmers, are
				  assessable locally as tangible personal property and not as a part of
				  intangible personal property. Inventory of poultry processors is subject to
				  intangible personal property tax and exempt from local taxation if (1) the
				  processing significantly utilizes machinery or mechanical devices, (2) the
				  processed poultry is ready for human consumption, except for cooking and (3)
				  the poultry is sold to customers who are subject to wholesale merchants'
				  license taxation.
Statutory Authority
§§ 58.1-203 and 58.1-1102 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 340 - INTANGIBLE PERSONAL PROPERTY TAX REGULATIONS › Section 23VAC10-340-40 - Exempt professions and businesses: how property used therein taxable

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally.
				Professions regulated by state law, industrial development corporations
				organized pursuant to the terms of §§ 13.1-140 through 13.1-155 of
				the Code of Virginia and farming businesses are exempt from state intangible
				personal property.
B. Exempt trades
				or businesses. Trades or businesses specifically exempt from intangible
				personal property tax, with references to the code sections providing the
				exemptions, are listed below:
1. Banks and
				trust companies (§ 58.1-1202 of the Code of Virginia).
2. Farming business and business of growing
				nursery products.
3. Insurance
				companies (§ 58.1-2508 of the Code of Virginia). The exemption applies
				only to insurance companies subject to state license tax on gross premium
				income.
4. Merchants (§§
				58.1-3000, 58.1-3509, and 58.1-3510 of the Code of Virginia).
5. Oyster packers (§ 28.1-119 of the
				Code of Virginia).
6. Professional
				associations and professional corporations (§ 13.1-554.1 of the Code of
				Virginia) regulated by law which render personal services to the public.
				Professional services, for purposes of this exemption are the personal services
				rendered by architects, attorneys-at-law, certified public accountants,
				dentists, engineers, medical doctors and veterinary surgeons. Other businesses
				and occupations rendering personal services, even if regulated by state law,
				are taxable on inventory as defined in
				23VAC10-340-20.
7. Public service corporations (Chapter 26 of
				Title 58.1 of the Code of Virginia). The exemption applies to telegraph and
				telephone companies and water or heat, light and power companies.
8. Restaurant keepers and caterers (§
				58.1-3000 of the Code of Virginia). Restaurant keepers and caterers are
				classified as merchants for purposes of this tax.
9. Repair shops of automobile and truck
				dealers (§ 58.1-3510 of the Code of Virginia). The service departments of
				motor vehicle dealerships are subject to local merchants' capital tax and are
				exempt from state tax on capital not otherwise taxed. This is applicable only
				to dealers in motor vehicles subject to Virginia Motor Vehicle Sales and Use
				Tax.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 350 - FOREST PRODUCTS TAX REGULATIONS › Form - FORMS (23VAC10-350)

Current through Register Vol. 40, No. 24, July 15, 2024
Virginia Forest Products Tax Return, Form 1034 (rev.
				  8/05).
Forest Products Tax Return, Small Manufacturers and Certain
				  Small Severers, Form 1035 (rev. 3/05).
Business Registration Application, Form R-1 (rev.
				  3/08).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 370 - CIGARETTE TAX REGULATIONS › Section 23VAC10-370-20 - Tax levied; rate

Current through Register Vol. 40, No. 24, July 15, 2024
The Virginia cigarette excise tax is required to be paid by
				  every person within the Commonwealth who sells, stores, or receives cigarettes
				  for the purpose of distribution within this state except a retail dealer or
				  other person who sells, stores, or receives cigarettes with Virginia tax stamps
				  affixed thereto.
Statutory Authority: §
											58.1-203
					 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 370 - CIGARETTE TAX REGULATIONS › Section 23VAC10-370-40 - How paid; affixing of stamps

Current through Register Vol. 40, No. 24, July 15, 2024
A. Payment of the tax shall be represented by
				a stamp affixed to each package of cigarettes. The stamp value shall evidence
				the amount of tax imposed upon the individual package to which it is
				affixed.
B. Cigarettes destined for
				sale outside Virginia and in the inventory of a wholesale dealer engaged in
				interstate business may be set aside and remain unstamped. Such tax exempt
				interstate stock shall be kept entirely separate from taxable stock in a manner
				to prevent the commingling of the interstate stock with the taxable
				stock.
Statutory Authority: §
											58.1-203
					 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 370 - CIGARETTE TAX REGULATIONS › Section 23VAC10-370-70 - Forms and kinds of containers, methods of breaking packages, and methods of affixing stamps

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally.
				The Department of Taxation requires each package of cigarettes to have a stamp
				conspicuously affixed, showing that the proper Virginia cigarette tax has been
				paid.
B. Methods of affixing
				stamps. Each stamping agent may affix such stamp by using heat stamps attached
				to the cellophane wrappers and applied by a fusion stamping machine or by
				hand.
Statutory Authority: §
											58.1-203
					 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 370 - CIGARETTE TAX REGULATIONS › Section 23VAC10-370-90 - Cigarette tax credit certificates

Current through Register Vol. 40, No. 24, July 15, 2024
Any qualified stamping agent who erroneously applies
				  Virginia revenue stamps to cigarettes or applies Virginia stamps to unsalable
				  cigarettes that are returned to the manufacturer may apply to the Department of
				  Taxation for a cigarette tax credit certificate.
1. Application for a cigarette tax credit
				certificate should be accompanied by substantiating evidence showing the
				circumstances surrounding the erroneously applied stamps, the quantity of
				stamps erroneously applied, and resolution of the situation. Application for
				credit certificate for unsalable cigarettes that are returned to the
				manufacturer should be accompanied by a manufacturer's affidavit or
				manufacturer's statement that such quantity and package size of cigarettes were
				actually returned.
2. If the
				wholesaler has reasonably satisfied the Department of Taxation that the credit
				is due, the department shall issue a tobacco tax credit certificate.
3. The tobacco tax credit certificate may be
				utilized for subsequent tax stamp purchases.
4. If cigarettes are destroyed by fire or
				other disaster prior to stamping, application for a credit against
				accountability may be made with the department. If cigarettes are destroyed by
				fire or other disaster after cigarette stamps are applied, application for a
				tobacco tax credit certificate or tax refund may be made with the department.
				The application should be made as set out in subdivision 1 of this
				section.
Statutory Authority: §
											58.1-203
					 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 370 - CIGARETTE TAX REGULATIONS › Section 23VAC10-370-100 - Preparation, design and sale of stamps; unlawful sale of stamps a felony

Current through Register Vol. 40, No. 24, July 15, 2024
Virginia revenue stamps (cigarette tax stamps) will be
				  prepared and offered for sale by the Department of Taxation. It shall be
				  unlawful for any person other than the Department of Taxation to sell tobacco
				  revenue stamps not affixed to cigarettes sold.
1. State cigarette tax stamps may be
				purchased only from the Department of Taxation or authorized city or county
				officers. Specific information on current locations will be provided by the
				Department of Taxation upon request.
2. Any purchase of Virginia revenue stamps
				must be made with cash, money order, cashier's check, or certified check unless
				bonding arrangements have been previously made with the Department of
				Taxation.
3. The wholesale dealer
				will be required to bear the burden for any postage and shipping charges for
				any Virginia revenue stamps shipped or mailed.
Statutory Authority: §
											58.1-203
					 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 370 - CIGARETTE TAX REGULATIONS › Form - FORMS (23VAC10-370)

Current through Register Vol. 40, No. 24, July 15, 2024
Application for Cigarette Stamping Permit and Tobacco
				  Products Tax Distributor's License, Form TT-1 (rev. 9/07).
Order for Virginia Cigarette Tax Stamps, Form TT-2 (rev.
				  8/06).
Virginia Consumer Cigarette Tax Return, Form TT-7 (rev.
				  9/06).
Virginia Application for Tobacco Tax Credit Certificate, Form
				  TT-12 (rev. 8/06).
Monthly Report of Cigarette Stamping Agent, Form TT-13 (rev.
				  2/07).
Monthly Report of Non-Resident Cigarette Stamping Agent, Form
				  TT-14 (rev. 2/07).
Monthly Report of Cigarette Manufacturer, TT-18 (rev.
				  11/05).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 390 - VIRGINIA SOFT DRINK EXCISE TAX REGULATIONS › Section 23VAC10-390-20 - Definition

Current through Register Vol. 40, No. 24, July 15, 2024
"Wholesaler or distributor" is defined as any person, firm
				  or corporation who manufactures, purchases or otherwise obtains and sells
				  carbonated soft drinks to retail dealers for resale or who sells direct to
				  retail consumers or users or to institutional, commercial or industrial users
				  or who distributes such soft drinks to chain stores, for use or consumption in
				  this Commonwealth.
1. The definition
				of wholesaler or distributor includes a manufacturer, located either within or
				without Virginia, who sells carbonated soft drinks to anyone other than a
				"wholesaler or distributor" as defined above. Such manufacturer is subject to
				the excise tax even though the activity of the manufacturer may be limited to
				the delivery of soft drinks to a chain store's warehouse in Virginia for
				ultimate resale through the chain store's various retail outlets in Virginia.
a. The manufacturer, located either within or
				without Virginia, who sells soft drinks to a wholesaler or distributor for
				resale to Virginia retailers would not be subject to the tax. The wholesaler or
				distributor who purchased the soft drinks from the manufacturer would be
				subject to the tax.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 390 - VIRGINIA SOFT DRINK EXCISE TAX REGULATIONS › Section 23VAC10-390-40 - Collection

Current through Register Vol. 40, No. 24, July 15, 2024
A. The soft drink
				excise tax is collected annually by the Department of Taxation. A payment for
				the amount of tax shall be made to the Department of Taxation no later than the
				due date prescribed in subsection B of this section.
B. Returns shall be filed with the Department
				of Taxation on or before the original due date for filing Virginia individual
				income tax returns under §
									58.1-341
				of the Code of Virginia, or if the taxpayer is a corporation, for filing
				Virginia corporate income tax returns under §
									58.1-441
				of the Code of Virginia.
C. A
				taxpayer may elect an extension of time within which to file the soft drink
				excise tax return to the extended due date set forth and in the manner
				prescribed for filing Virginia individual income tax returns on extension under
				§
									58.1-344
				of the Code of Virginia, or if the taxpayer is a corporation, for filing
				Virginia corporate income tax returns on extension under §
									58.1-453
				of the Code of Virginia.
1. If the full amount
				is not paid on or before the original due date, the penalty imposed by
				subsection D of this section for failure to pay when due the full amount shall
				apply regardless of whether the taxpayer properly elected to utilize an
				extension. Interest at the rate established pursuant to §
										58.1-15 of the
				Code of Virginia accrues from the date the return was originally due to be
				filed to the date of payment.
2. If
				the return is not filed or the full amount of the tax due is not paid on or
				before the extended due date elected pursuant to this subsection, the penalty
				imposed by subsection D of this section for failure to file a return and for
				late filing shall apply as if no extension had been elected.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-10 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this regulation
				  shall have the following meanings unless the context clearly indicates
				  otherwise:
"Affiliated group" means:
1. One or more chains of corporations subject
				to inclusion connected through stock ownership with a common parent corporation
				that is a corporation subject to inclusion if:
a. Stock possessing at least 80% of the
				voting power of all classes of stock and at least 80% of each class of the
				nonvoting stock of each of the corporations subject to inclusion, except the
				common parent corporation, is owned directly by one or more of the other
				corporations subject to inclusion; and
b. The common parent corporation directly
				owns stock possessing at least 80% of the voting power of all classes of stock
				and at least 80% of each class of the nonvoting stock of at least one of the
				other corporations subject to inclusion. As used in this subdivision, the term
				"stock" does not include nonvoting stock that is limited and preferred as to
				dividends; the phrase "corporation subject to inclusion" means any corporation
				within the affiliated group irrespective of the state or country of its
				incorporation; and the term "receipts" includes gross receipts and gross
				income.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-30 - Activities subject to license taxation

Current through Register Vol. 40, No. 24, July 15, 2024
Where a Virginia locality has adopted a BPOL ordinance that
				  requires a license, every person engaged in a licensable activity at a definite
				  place of business in such locality must apply for a license. Whether or not a
				  particular activity is in fact subject to license taxation depends upon the
				  local ordinance. What constitutes a definite place of business is discussed in
				  23VAC10-500-10. See Uniform
				  Ordinance provisions, § 58.1-3703.1 of the Code of Virginia. Where a
				  locality has adopted a BPOL ordinance requiring a license, a license is also
				  required if a person has no definite place of business in a particular locality
				  in Virginia but the person operates amusement machines in a locality or is
				  classified as an itinerant merchant, peddler, carnival, circus, contractor
				  subject to § 58.1-3715 of the Code of Virginia, or a public service
				  corporation as defined in § 58.1-3731 of the Code of
				  Virginia.
Statutory Authority
§ 58.1-3701 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-50 - Exemption for affiliated groups

Current through Register Vol. 40, No. 24, July 15, 2024
A. An affiliated group is composed of two or
				more corporations or chains of corporations. An affiliated group may be
				composed of two or more other types of entities if such entities satisfy the
				requirements to be an affiliated group as if they were corporations and the
				ownership interests therein were stock. The terms "entity" and "affiliated
				group" are defined in
				23VAC10-500-10. The filing of a
				consolidated income tax return is presumptive of an affiliated group, but not
				conclusive.
B. No locality shall
				impose a license fee or levy a license tax on gross receipts or purchases
				derived from transactions that occur between members of the affiliated group.
				Affiliated corporations are not exempt from the license tax or fee from gross
				receipts or purchases conducted with nonaffiliated entities. Localities may
				also levy a wholesale license tax on an affiliated corporation for sales to
				nonaffiliated entities, even if the tax would be based on purchases from an
				affiliated corporation. Sales by the affiliated corporation to a nonaffiliated
				entity means sales by the affiliated corporation to the nonaffiliated entity
				where goods sold by the affiliated corporation or its agent are manufactured or
				stored in the Commonwealth prior to their delivery to the nonaffiliated
				entity.
C. Affiliated groups are
				one of two types, either parent-subsidiary or brother-sister.
1. Parent-subsidiary control group. A
				parent-subsidiary affiliated group consists of one or more chains of
				corporations in which a parent corporation directly owns at least 80% of the
				stock of at least one of the corporations subject to inclusion in the
				affiliated group, and at least 80% of the stock of any corporations subject to
				inclusion in the affiliated group, other than the parent corporation, are owned
				directly by one or more of the corporations subject to inclusion in the
				affiliated group. The percentages of stock throughout this section refer to the
				voting power of all classes of stock and each class of nonvoting stock subject
				to inclusion. Stock does not include nonvoting stock that is limited and
				preferred as to dividends in § 58.1-3700.1 1(b) of the Code of Virginia.
				For example:
a. Corp. A owns 80% of Corp. B.
				Corp. B owns 80% of Corp. C.
Corp. A
-->
80%
-->
Corp. B
[DOWNWARD ARROW]
80%
[DOWNWARD ARROW]
Corp C
Corp. A is the common parent of a parent-subsidiary
				  affiliated group of A, B and C corporations.
b. Corp. B owns 80% of Corp. C and 80% of
				Corp. D. Corp. C owns 50% of Corp. F. Corp. D owns 30% of Corp. F.
Corp. B
-->
80%
-->
Corp. C
[DOWNWARD ARROW]
[DOWNWARD ARROW]
80%
50%
[DOWNWARD ARROW]
[DOWNWARD ARROW]
Corp D
-->
30%
-->
Corp. F
Corp. B is the common parent of the B, C, D, and F affiliated
				  group.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-60 - Gross receipts

Current through Register Vol. 40, No. 24, July 15, 2024
The definition of "gross receipts" is discussed in
				  23VAC10-500-10. Income that is not
				  derived from the exercise of the privilege for which the taxpayer is licensed
				  by the locality do not constitute gross receipts for purposes of BPOL taxation.
				  Activities of a taxpayer that serve only the taxpayer's interest, and no other,
				  do not give rise to gross receipts. Other exclusions and deductions from gross
				  receipts are discussed in
				  23VAC10-500-70 through
				  23VAC10-500-90.
Statutory Authority
§ 58.1-3701 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-70 - Exclusions from gross receipts

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally, gross receipts for license tax
				purposes exclude any amount not derived from the exercise of the licensed
				privilege to engage in a business or profession in the ordinary course of
				business. The following is a partial list for illustrative purposes:
1. Amounts received and paid to the United
				States, the Commonwealth or any county, city or town for the Virginia retail
				sales or use tax, for any local sales tax or any local excise tax on
				cigarettes, or amounts received for any federal or state excise taxes on motor
				fuels;
2. Amounts representing the
				liquidation of debt or the sale of a capital asset;
3. Amounts allowed by a business to its
				customers for returns and allowances;
4. Receipt of loan proceeds by a licensee
				where it is the obligor;
5. Return
				of principal either on a loan to a licensee-creditor or where a licensee sells
				a capital asset;
6. Rebates or
				discounts taken or received on account of purchases by the licensee;
7. Certain withdrawals from inventory;
				or
8. Investment income not
				directly related to an entity's exercise of its licensed privilege, unless the
				entity's licensable activity is that of financial services.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-80 - Deductions from gross receipts

Current through Register Vol. 40, No. 24, July 15, 2024
A. The following shall be deducted from gross
				receipts:
1. Any amount paid for computer
				hardware or software sold to the U.S. or a state government provided certain
				holding and contractual requirements are met; and
2. Any receipts attributable to a business
				conducted in another state or foreign country in which the taxpayer, or its
				shareholders, partners or members in lieu of the taxpayer, is liable for an
				income or other tax based upon income. A Virginia taxpayer is liable for an
				income or other tax based upon income if the taxpayer files a return for an
				income or income-like tax in that state or foreign country. The Virginia
				taxpayer, however, need not actually pay any tax to take the
				deduction.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-90 - Other exclusions and deductions from gross receipts

Current through Register Vol. 40, No. 24, July 15, 2024
Examples of items deemed not to be receipts derived from the
				  licensable business include, but are not limited to, the following:
1. Certain adjustments that may be required
				by reason of the accounting method or system or otherwise to reflect events
				subsequent to the sale, such as the return of merchandise for credit or refund.
				If the local ordinance requires gross receipts to be reported using the same
				method of accounting as used for federal income tax purposes, and the accrual
				method is used, sales will often be accrued, reported and taxed before actual
				payment is received. Adjustments may then be required to prevent the taxation
				of items accrued but never received. For example:
a. A business may record a customer's
				exchange of merchandise as a refund and new sale. If so, the refund of the
				previously taxed sale would be deductible because there would have been only
				one sale -- the first sale would have been rescinded when the refund/exchange
				was made.
b. A business that offers
				customers a discount for volume purchases, prompt payment, or other reason, may
				record the sale at full value and deduct the discount at the time of payment.
				If so, the discount from the previously taxed full sales price would be
				deductible from gross receipts since the amount was not and never will be
				received.
c. A business that makes
				sales on credit may accrue the full sales price and set up a receivable account
				for the installment payment or revolving charge account agreement. If the
				business subsequently determines that all or a portion of the receivable is
				worthless, entitling the business to a bad debt deduction for federal income
				tax purposes, the portion of the previously taxed sale that is determined to be
				worthless would be deductible because it was not received. The subsequent
				collection of a debt deducted from gross receipts as worthless would be
				includible in gross receipts when received, and considered ancillary to the
				business activity that created the debt.
d. A business that reports its receipts on
				the cash method of accounting would include all customer payments on
				installment contracts and revolving charge accounts when received since none of
				the receipts would be attributable to previously taxed sales.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-100 - Rates and fees

Current through Register Vol. 40, No. 24, July 15, 2024
A. The
				uniform ordinance provisions establish two thresholds; one for license fees and
				another for license taxes. The following chart gives an overview of the
				thresholds' application to the exemption based on gross receipts and the
				limitation on the license fee based on a locality's population:
Population
Maximum License Fee Amount
Gross Receipts Threshold Amounts
0-24,999
$30
No dollar threshold amount
25,000-50,000
$50
$50,000
50,001+
$50
$100,000
B.
				The thresholds indicate that, except as specifically provided in §
				58.1-3706 of the Code of Virginia and except for the fee authorized in §
				58.1-3703 of the Code of Virginia, no local license tax imposed pursuant to the
				provisions of Chapter 37 (§ 58.1-3700 et seq.) of Title 58.1 of the Code
				of Virginia, except those specified in §§ 58.1-3712, 58.1-3712.1 and
				58.1-3713, or any other provision of Title 58.1 of the Code of Virginia or any
				charter, shall be imposed on any person whose gross receipts from a business,
				profession or occupation subject to licensure are less than:
1. $100,000 in any locality with a population
				greater than 50,000; or
2. $50,000
				in any locality with a population of 25,000 but no more than 50,000.
The license tax = equals $0 if the threshold is not met. Some
				  localities may be grandfathered with respect to applicable license tax rates
				  once thresholds have been met. See Appendix D.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-110 - Multiple businesses

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Multiple businesses conducted by a person at a single location are required to
				obtain a separate license for each business. If an entity has multiple
				businesses at one location with each separate business licensed, it would then
				count each separate licensed business for purposes of the threshold in order to
				trigger the BPOL tax under § 58.1-3706 of the Code of Virginia. For
				purposes of the license fee imposed under § 58.1-3703 of the Code of
				Virginia, it is within the locality's discretion whether or not to assess
				multiple fees for the issuance of multiple licenses where one entity exercises
				several licensable privileges at one location; however, every license issued
				carries with it a separate rate threshold. Examples:
1. XYZ Co. operates a business at one
				location in City A at which automobiles are repaired and auto parts are sold.
				City A requires XYZ to obtain a retail business license and also a repair
				services license, charging a $100 fee for each license. XYZ Co. has two
				thresholds for purposes of establishing gross receipts for the applicability of
				the BPOL tax, one for the repair business and one for the retail
				business.
2. Same facts as in
				Example 1, except that XYZ Co. operates several business locations in City A at
				which automobiles are repaired and auto parts are sold. XYZ will be required to
				obtain two licenses for each location in City A and each licensable business
				will have a separate threshold for purposes of establishing gross receipts for
				the applicability of the BPOL tax.
3. Same facts as in Example 1, except that
				the locality chooses to charge the business only one fee for the issuance of
				two licenses. As in Example 1, XYZ Co. would have two thresholds for purposes
				of establishing gross receipts for the applicability of the BPOL tax, one for
				the repair business and one for the retail business.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-120 - Multiple locations

Current through Register Vol. 40, No. 24, July 15, 2024
The classification of a business generally depends on the
				  nature of the goods or services offered to the customers of the business for
				  consideration. In the case of a business that conducts different activities at
				  multiple locations, proper classification of the business may require
				  consideration of its activities at locations in addition to the licensed
				  location, i.e., the overall nature of the business. For example:
1. A complex product is manufactured in
				stages at different locations. It is undisputed that the overall process is
				manufacturing. However, final assembly and processing occur at a separate
				location and, viewed in isolation, the activities at this location may not
				cause sufficient transformation to be considered manufacturing. The location
				will be considered a "place of manufacture" for purposes of classifying the
				gross receipts or purchases as arising from sales at wholesale at the place of
				manufacture.
2. A contractor
				maintains a staff of architects and engineers and bids on "design-build"
				contracts. The bids are for a lump sum and do not segregate design costs from
				building costs. The entire gross receipts are subject to license tax as a
				contractor in the locality in which the building is constructed. The design
				activities are ancillary to the contracting activities and the contractor will
				not be required to obtain a professional license for the architects and
				engineers.
Statutory Authority
§ 58.1-3701 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-130 - Employees and independent contractors

Current through Register Vol. 40, No. 24, July 15, 2024
A. Employees are generally not engaged in a
				licensable business separate from that of their employer. Therefore, a license
				obtained by the employer generally covers the activities of any
				employees.
B. An independent
				contractor is engaged in a business separate from that of the person who
				contracts for the independent contractor's services. Therefore, if one
				licensable business subcontracts some of its business to an independent
				contractor, the primary business may not deduct from its taxable gross receipts
				any payments to an independent contractor even though the independent
				contractor or subcontractor is also taxable on its gross receipts.
C. The determination as to whether a person
				is an employee or an independent contractor is based on common law principles
				and is affected by factors such as control, who furnishes materials, and other
				factors.
D. Localities are entitled
				to rely upon the classification of a person as an employee or independent
				contractor for federal payroll tax purposes unless the taxpayer demonstrates
				that the classification for federal payroll tax purposes is erroneous or
				inapplicable.
Statutory Authority
§ 58.1-3701 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-140 - NAICS Codes

Current through Register Vol. 40, No. 24, July 15, 2024
The federal government publishes a manual of North American
				  Industry Classification System (NAICS) codes. A locality may use the NAICS
				  codes in the course of classifying a business for BPOL tax purposes; however,
				  the NAICS code of a business does not control, or even create a presumption, as
				  to the correct classification for BPOL purposes for the following
				  reasons:
1. The NAICS codes group
				manufacturers and processors together, while processors are generally excluded
				when using the term manufacturer for BPOL tax purposes.
2. Only one NAICS code is assigned to an
				enterprise or establishment, while a separate BPOL license may be required for
				each identifiable business.
3. A
				classification, exemption, or deduction under state law or local ordinance may
				require consideration of factors not relevant to NAICS code
				selection.
Statutory Authority
§ 58.1-3701 of the Code of
					 Virginia.