reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-150 - Situs of gross receipts

Current through Register Vol. 40, No. 24, July 15, 2024
A. Except as otherwise provided by law, situs
				refers to the locality in which a person subject to local license taxation for
				any business, profession, trade, occupation or calling has a definite place of
				business. If the person has a definite place of business in any other locality,
				then the other locality may impose a license tax on him, provided such other
				locality is otherwise authorized to impose a local license tax upon his
				business.
B. If a local license tax
				imposed by any locality is measured by volume, the volume on which the tax may
				be computed will be the volume attributable to all definite places of business
				of the business, profession, trade, occupation or calling in such locality. See
				23VAC10-500-10 for the definition
				of the term "volume." All volume attributable to any definite places of
				business of the business, profession, trade, occupation or calling in any other
				locality will be deductible from the base in computing any local license tax
				measured by volume imposed on the taxpayer by the locality in which the
				first-mentioned definite place is located. This may not be construed as
				prohibiting any locality from requiring a separate license for each definite
				place of business located in such locality. (§ 58.1-3708 of the Code of
				Virginia.)
C. When a BPOL tax is
				measured by gross receipts, the gross receipts included in the taxable measure
				are only those gross receipts attributed to the exercise of a privilege subject
				to licensure at a definite place of business within Virginia. Where activities
				are conducted outside of a definite place of business, such as during a visit
				to a customer location, gross receipts are attributed to the definite place of
				business from which such activities are initiated, directed, or controlled. The
				situs of gross receipts for different classifications of business are
				attributed to one or more definite places of business or offices as detailed in
				23VAC10-500-160 through
				23VAC10-500-200.
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 23VAC10-500-180 - Situs of purchases for wholesaler subject to tax based on purchases

Current through Register Vol. 40, No. 24, July 15, 2024
A. The gross
				receipts of a wholesaler or distribution house subject to the tax based on
				purchases are attributed to the definite place of business from where the goods
				are physically delivered to customers or at the shipping point to customers.
				Examples:
1. A wholesaler has its sales office
				in Town B and maintains a warehouse in County C from which it ships goods by
				truck to customers in Virginia. Wholesaler is subject to license tax measured
				by purchases. Wholesaler's warehouse is a definite place of business subject to
				taxation in County C.
2. A
				wholesaler has facilities in North Carolina and has a distribution center in A
				Town A, Virginia, which assesses a BPOL tax on wholesalers based upon
				purchases. Merchandise shipped from the wholesaler in Town A is subject to the
				license tax measured by purchases and the situs of the wholesaler's purchases,
				of goods shipped from Town A is Town A because it is the shipping point from
				the distribution center.
3. A
				wholesaler, whose BPOL tax is measured based upon purchases, has a warehouse in
				County A from where it delivers goods to customers. The situs of its purchases
				is County A.
4. Company A
				manufactures equipment for industrial, governmental and commercial use at its
				plant outside Virginia. It has an office in City B, Virginia, where sales
				solicitations take place. Company A's sales office is taxable as a wholesale
				merchant based on purchases. The purchases of a wholesaler subject to the tax
				on purchases are attributed to the definite place of business where the goods
				are physically delivered to customers or at the shipping point to customers.
				Company A has no taxable purchases in City B since the goods are not delivered
				or shipped from the sales office in that locality.
5. Company A sells petroleum products at
				retail in its own retail stores. It also sells petroleum products at wholesale
				to retail dealers at City A in Virginia. Company A exchanges a shipload of
				petroleum products for a shipload of oil with Company A. The exchange occurs
				outside of Virginia. The exchange is not taxable. The sale is not a retail sale
				nor attributable to the exercise of the privilege of selling at retail at
				Company A's retail stores. There is no purchase at any place of business in
				Virginia that is subject to a wholesale merchant's tax in Virginia because
				delivery occurred outside Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-190 - Situs of a business renting tangible personal property

Current through Register Vol. 40, No. 24, July 15, 2024
The gross receipts of a business renting tangible personal
				  property are attributed to the definite place of business where the property is
				  rented, or if there is no definite rental place, then to the locality where the
				  rental of the property is managed. For example:
A car rental agency located in County B, stores its cars in a
				  lot in Town C. The car rental contract is signed in the main office in County B
				  and then an employee drives the customer out to the lot to pick up the car. The
				  situs of gross receipts is County B since that is the locality where the rental
				  took place.
A business located in City A rents home electronics. Orders
				  are placed by phone to the main warehouse in City A where the goods are then
				  transported by truck to customers' homes in various localities. The rental
				  contract is filled out by a customer at her home and given to the driver at
				  which time the goods are released. Situs of gross receipts is City A. Although
				  the place of rental is in a number of localities, the rental is managed in City
				  A.
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 23VAC10-500-220 - Apportionment; agreement to apportion among localities

Current through Register Vol. 40, No. 24, July 15, 2024
A. Local assessors may enter into agreements
				with each other regarding the manner in which gross receipts shall be
				apportioned among definite places of business. The sum of the gross receipts
				apportioned by the agreement shall not exceed the total gross receipts
				attributable to all definite places of business affected by the agreement. Upon
				notification from a taxpayer that a method attributing gross receipts is
				inconsistent with the method of one or more other localities in which the
				taxpayer is licensed, and that the difference has, or is likely to, result in
				taxes on more than 100% of its gross receipts from all locations in which the
				taxpayer is licensed, the assessor shall make a good faith effort to reach an
				apportionment agreement with the other localities involved. If an agreement
				cannot be reached, either the assessor or taxpayer may seek an advisory opinion
				from the Department of Taxation pursuant to § 58.1-3701 of the Code of
				Virginia. Notice of the request must be given to the other party.
B. Notwithstanding the provisions of §
				58.1-3993 of the Code of Virginia, when a taxpayer has demonstrated to a court
				that two or more political subdivisions of Virginia have assessed taxes on
				gross receipts that may create a double assessment within the meaning of §
				58.1-3986 of the Code of Virginia, the court may enter such orders pending
				resolution of the litigation as may be necessary to ensure that the taxpayer is
				not required to pay multiple assessments even though it is not then known which
				assessment is correct and which is erroneous.
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 23VAC10-500-230 - Contractors; maximum rate

Current through Register Vol. 40, No. 24, July 15, 2024
The maximum rate for local license taxes imposed upon a
				  person engaged in contracting and persons constructing for their own account
				  for sale is 16 cents per $100 of gross receipts. In lieu of the tax, a license
				  fee may be charged by the locality. The amount of the fee depends upon the
				  locality's population. See
				  23VAC10-500-100.
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 23VAC10-500-240 - Contractors; classification

Current through Register Vol. 40, No. 24, July 15, 2024
A. A
				person shall be classified as a contractor if he accepts contracts to perform,
				or regularly performs, or engages others to perform, any of the work described
				in subsection B of § 58.1-3714 of the Code of Virginia on buildings,
				structures or real estate owned by him when the buildings, structures or real
				estate are sold upon completion of such work; or, if he regularly performs, or
				engages others to perform, any of the work described in subsection B of §
				58.1-3714 of the Code of Virginia on buildings, structures or real estate owned
				by others.
B. Contractors include
				persons who subdivide and improve real estate, and speculative builders who
				build houses or other buildings with the intention to offer the subdivided lots
				or completed buildings for sale. A person who would otherwise be classified as
				a contractor shall not lose such classification because real estate is
				temporarily leased until it can be sold, or leased with an option to purchase
				instead of sold, unless the leasing activity constitutes a separate licensable
				business. Any gross receipts from such leases shall be considered ancillary to
				the business of contracting.
C. The
				mere subdivision of land into lots, without more, is not contracting. However,
				a person who installs water or sewer systems, roads, or engages in any other
				activity described in subsection B of § 58.1-3714 of the Code of Virginia
				on his own land with the intent to offer the land for sale is a contractor
				regardless of whether the land is subdivided.
D. A person shall not be deemed to be engaged
				in the business of contracting solely because he acts as his own prime
				contractor to build or improve a building which he intends to occupy as his
				residence, office or other place of business, or actually so occupied within a
				reasonable time prior to the sale of the premises.
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 23VAC10-500-250 - Contractors; list of occupations

Current through Register Vol. 40, No. 24, July 15, 2024
Contracting generally includes, but is not limited to,
				  persons engaged in the following occupations, businesses or trades:
1. Air conditioning
2. Brick contracting and other
				masonry
3. Building
4. Cementing
5. Dredging
6. Electrical contracting
7. Elevator installation
8. Erecting signs that are assessed as
				realty
9. Floor scraping or
				finishing
10. Foundations
11. House moving
12. Paint and paper decorating
13. Plastering
14. Plumbing, heating, steam
				fitting
15. Refrigeration
16. Road, street, bridge, tunnel, sidewalk or
				curb and gutter construction
17.
				Roofing and tinning
18. Sewer
				drilling and well digging
19. Sign
				painting
20. Structural metal
				work
21. Tile, glass, flooring and
				floor covering installation
22.
				Wrecking, moving or excavating.
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 23VAC10-500-260 - Installation by merchant

Current through Register Vol. 40, No. 24, July 15, 2024
A. An
				installation by a merchant is not considered contracting where he delivers and
				installs an appliance or other merchandise he sells when the installation uses
				existing openings and connections. If, however, the installation requires
				making openings in a wall, running ductwork, wires or plumbing, or any other
				work described in subsection D of § 58.1-3714 of the Code of Virginia,
				then the installation work may be deemed contracting. This factor may turn upon
				the difficulty involved in making way for the goods to be installed. Other
				factors that may be considered in making the determination of whether or not a
				merchant's installation of goods constitutes contracting are as follows:
(i) whether the installation is merely
				ancillary to the retail sales of a merchant, as opposed to constituting a
				substantial portion of what is sold in the transaction;
(ii) does the merchant hold himself out as
				able to perform contractor's activities; and
(iii) does the merchant install his own
				merchandise only, or does he also install the goods of others. Ultimately,
				however, the determination of whether or not a merchant's installation of goods
				constitutes contracting for purposes of the BPOL tax will depend upon the facts
				and circumstances in each case.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-270 - Retail sales; maximum rate

Current through Register Vol. 40, No. 24, July 15, 2024
The maximum rate for local license taxes imposed on a person
				  engaged in retail sales is 20 cents per $100 of gross receipts. In lieu of a
				  tax, a license fee may be charged by the locality. The amount of the fee
				  depends upon the locality's population. (23VAC10-500-100.)
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 23VAC10-500-280 - Retail sales; retail and wholesale distinguished

Current through Register Vol. 40, No. 24, July 15, 2024
The sales price alone is not determinative of whether the
				  sale is at retail or wholesale. The fact that a person sells goods, wares or
				  merchandise at wholesale prices, at cost, or at less than cost does not prevent
				  the person from being classified as a retail merchant if the sales fall within
				  the definition of a retail sale. (23VAC10-500-350.)
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 23VAC10-500-290 - Retail sales; banks

Current through Register Vol. 40, No. 24, July 15, 2024
A. Banks
				are generally exempt from local license tax, but § 58.1-1202 of the Code
				of Virginia specifically authorizes localities to subject banks to local
				license tax on the sale of blank checks, repossessed automobiles, and any other
				tangible personal property sold by banks in connection with promotions or
				otherwise. In connection with the sale of blank checks:
1. A bank is not engaged in retail sales if
				the customer places an order for the checks directly with the printer and
				authorizes the bank to collect for the printer by charging his account, and the
				bank is not obligated to pay for the checks except insofar as it honors the
				customer's authorization.
2. A bank
				is engaged in retail sales if the customer places his order with the bank, and
				the bank contracts with the printer and is liable to the printer, whether or
				not the bank actually collects from the customer.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-300 - Retail sales; solicitation

Current through Register Vol. 40, No. 24, July 15, 2024
A person is not subject to a local license tax if his
				  business in this state is limited solely to the solicitation of orders by
				  catalogs mailed from outside this state to mail order buyers in this state and
				  who fills orders from outside this state. However, if the catalogs are
				  distributed by a Virginia resident by mail or in person or if the person
				  engaged in the mail order business has a definite place of business in this
				  state at which mail orders are received or filled, the mail order business may
				  be treated the same as any other retail or wholesale business for purposes of
				  local license taxes.
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 23VAC10-500-310 - Retail sales through a commission merchant

Current through Register Vol. 40, No. 24, July 15, 2024
Any person who sells goods at retail through a commission
				  merchant, as defined in § 58.1-3733 of the Code of Virginia, may be held
				  liable for a local license tax as to such sales even though the commission
				  merchant may also be taxable with respect to a commission on such
				  sales.
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 23VAC10-500-320 - Nonmercantile businesses

Current through Register Vol. 40, No. 24, July 15, 2024
A job printer is a manufacturer and is engaged in either
				  retail or wholesale sales as to the sales of the items printed. The term "job
				  printer" does not lend itself to rigid definition.
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 23VAC10-500-330 - Motor vehicle dealers

Current through Register Vol. 40, No. 24, July 15, 2024
Any locality imposing a license tax on motor vehicle dealers
				  may, by ordinance, require any dealer who separately states the amount of local
				  license tax applicable to a sale and collects it from the customer to treat
				  such taxes collected as held in trust for the locality and require that all
				  such sums collected be paid over to the locality quarterly during the license
				  year. Gross receipts on which the tax has been separately stated, collected and
				  paid over shall be excluded from other taxable gross receipts when the annual
				  license is obtained. During the three-year period following overassessments on
				  the part of the motor vehicle dealers, the locality will refund the amounts due
				  to the purchasers who produce verification that the overpayments were
				  made.
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 23VAC10-500-340 - Wholesale sales; maximum rate

Current through Register Vol. 40, No. 24, July 15, 2024
In general, the maximum rate for local license taxes imposed
				  on a person engaged in wholesale selling is five cents per $100 of purchases of
				  goods for sale. In lieu of a tax, a license fee also be charged by the
				  locality. The amount of the fee depends upon the locality's population.
				  (23VAC10-500-100.) Some localities
				  are grandfathered to assess a BPOL tax on wholesalers based upon gross
				  receipts.
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 23VAC10-500-350 - The licensable privilege of wholesale selling

Current through Register Vol. 40, No. 24, July 15, 2024
A. Whether or not a sale of tangible personal
				property is properly classified as wholesale selling depends on the facts and
				circumstances of the particular transaction under consideration. Wholesale
				trade is generally recognized as the selling at such prices and in such
				quantities to others who will then resell such goods either to ultimate
				consumers or further down the normal distribution chain. Wholesale trade may
				also include sales to industrial, commercial, or governmental users where goods
				sold will be used by the buyer in its productive processes.
B. Although no single factor such as price,
				purpose, or place of sale may always distinguish between wholesale and other
				types of sales, the following inquiries may be helpful:
1. Is the sale to an individual consumer for
				the consumer's own personal use This type of transaction is never considered a
				wholesale sale for BPOL purposes regardless of whether the taxpayer sells the
				item at a purported "wholesale price" or sells the item from a business
				facility that appears to be a wholesale establishment.
2. Is the sale to another merchant for resale
				Transactions in which the taxpayer is selling new "in the box" items to a
				merchant for retail or distribution to other retailers or wholesalers are
				wholesale sales for BPOL purposes. Sales of used goods for resale may be
				wholesale depending upon the facts and circumstances of the
				transaction.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-360 - Wholesale activities ancillary to manufacturing

Current through Register Vol. 40, No. 24, July 15, 2024
A. In bringing their goods to market most
				manufacturers engage in a wholesale function. So long as this function is
				ancillary to the manufacturing function, i.e., it does not rise to the level of
				becoming a separate business activity, the manufacturer is not licensable as a
				wholesaler or subject to the wholesaler BPOL tax. The following wholesale
				functions are ancillary to a manufacture's privilege of manufacturing and
				selling goods at wholesale at the place of manufacture and not subject to BPOL
				tax:
1. All facilities of manufacturer at same
				location. In this case, the wholesale function and the related sales personnel
				are located at the place of manufacture. The wholesale function is ancillary to
				the principal business of manufacturing and thus not licensable or taxable as a
				wholesale operation for BPOL purposes.
2. Manufactured goods distributed from place
				of manufacture - sales function performed in several separate jurisdictions.
				Even though in this case sales activity is taking place in other jurisdictions,
				the activity does not rise to the level of a separate wholesale business
				because the goods to be sold remain at the place of manufacture. All sales
				activity is directed towards delivery of the goods from the place of
				manufacture to the customer and thus within the statutory exemption for
				manufacturing.
3. All facilities of
				manufacturer at same location except completed goods warehoused in separate
				jurisdiction. The result in this example is the same as in the previous two.
				Assuming the warehouse is a storage facility that conducts no other business
				functions, its existence in another jurisdiction does not provide this other
				jurisdiction with grounds to levy a license tax on the facility. Mere storage
				of completed goods is ancillary to manufacturing regardless of where the
				storage takes place.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-370 - Financial, real estate and professional services; maximum rate

Current through Register Vol. 40, No. 24, July 15, 2024
The maximum rate for local license taxes imposed on a person
				  engaged in a financial, real estate or professional service is 58 cents per
				  $100 of gross receipts. In lieu of a tax, a locality may charge a license fee.
				  The amount of the fee depends upon the locality's population. (23VAC10-500-100.)
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 23VAC10-500-380 - Financial services; definitions

Current through Register Vol. 40, No. 24, July 15, 2024
Any person rendering a service for compensation in the form
				  of a credit agency, an investment company, a broker or dealer in securities and
				  commodities, or a security or commodity exchange is providing a financial
				  service, unless such service is specifically provided for under another section
				  of the BPOL Regulations (23VAC10-500-10 et seq.). For
				  purposes of this classification, the term:
1. "Broker" means an agent of a buyer or a
				seller who buys or sells stocks, bonds, commodities, or services, usually on a
				commission basis.
2. "Commodity"
				means staples such as wool, cotton, etc. that are traded on a commodity
				exchange and on which there is trading in futures.
3. "Dealer" means any person engaged in the
				business of buying and selling securities for his own account, but does not
				include a bank, or any person insofar as he buys or sells securities for his
				own account, either individually or in some fiduciary capacity, but not as part
				of a regular business.
4.
				"Security" shall have the same meaning as in the Securities Act (§
				13.1-501 et seq. of the Code of Virginia) or in similar laws of the United
				States regulating the sale of securities.
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 23VAC10-500-390 - Financial services; list of occupations

Current through Register Vol. 40, No. 24, July 15, 2024
A. Those engaged in rendering financial
				services include, but are not limited to, the following:
1. Buying installment receivables
2. Chattel mortgage financing
3. Consumer financing
4. Credit card services
5. Factors
6. Financing accounts receivable
7. Industrial loan companies
8. Installment financing
9. Inventory financing
10. Loan or mortgage brokers
11. Loan or mortgage companies
12. Safety deposit box companies
13. Security and commodity brokers and
				services
14. Stockbroker
15. Working capital financing.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-400 - Financial services; buying for another

Current through Register Vol. 40, No. 24, July 15, 2024
Any person other than a national bank or bank or trust
				  company organized under the laws of this state, or a duly licensed or
				  practicing attorney-at-law, that engages in the business of buying or selling
				  for others on commission or for other compensation, shares in any corporation,
				  bonds, notes or other evidences of debt is a stockbroker. The fact that orders
				  are taken subject to approval by a main office does not relieve the broker from
				  local license taxation.
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 23VAC10-500-410 - Financial services; banks

Current through Register Vol. 40, No. 24, July 15, 2024
Although they render financial services:
1. Banks and trust companies subject to the
				Virginia bank franchise tax are exempt from local license tax by §
				58.1-1202 of the Code of Virginia except as to sales of tangible personal
				property;
2. Savings institutions
				(including those whose name includes "savings bank") and state chartered credit
				unions are limited to a local license tax of $50 by § 58.1-3730 of the
				Code of Virginia; and
3. Federal
				credit unions are exempt under the Federal Credit Union Act, 12 USC §
				1768.
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 23VAC10-500-420 - Real estate services

Current through Register Vol. 40, No. 24, July 15, 2024
Any person rendering a service for compensation as lessor,
				  buyer, seller, agent or broker is providing a real estate service, unless the
				  service is specifically provided for under another section of the BPOL
				  Regulations (23VAC10-500).
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 23VAC10-500-430 - Real estate services; list of occupations

Current through Register Vol. 40, No. 24, July 15, 2024
Those rendering real estate services include, but are not
				  limited to, the following:
1.
				Appraisers of real estate
2. Escrow
				agents, real estate
3. Fiduciaries,
				real estate
4. Lessors of real
				property
5. Real estate agents,
				brokers and managers
6. Real estate
				selling agents
7. Rental agents for
				real estate
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 23VAC10-500-440 - Professional services; generally

Current through Register Vol. 40, No. 24, July 15, 2024
The BPOL tax applies to the rendering of professional
				  services for a fee and does not apply to professional classifications, per se.
				  For example, lawyers or accountants employed by a corporation and compensated
				  in wages as employees are not subject to the BPOL tax as
				  professionals.
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 23VAC10-500-450 - Professional services; list of occupations

Current through Register Vol. 40, No. 24, July 15, 2024
A. The BPOL statute requires the Department
				of Taxation to list those occupations that may be classified as "professionals"
				by the localities. The BPOL statute limits the term "professional" to those
				occupations or vocations in which a professed knowledge of some department of
				science or learning, gained by a prolonged course of specialized instruction
				and study, is used in its practical application to the affairs of others,
				either advising, guiding, or teaching others, and serving their interests or
				welfare in the practice of an art or a science founded upon it. The statute
				also states that the word "profession" implies attainments in professional
				knowledge as distinguished from mere skill, and the application of knowledge to
				uses for others rather than for personal profit. The following is an all
				encompassing list. Unless otherwise specifically excluded, all professional
				titles listed include the specialties and subspecialties included within that
				title in the U.S. Department of Labor's Dictionary of Occupational titles. For
				instance, "dentist" includes orthodontist, periodontist, oral pathologist,
				endodontist, oral surgeon, and prosthodontist. Further, the term "engineer"
				includes, petroleum engineer, mechanical engineer, chemical engineer, civil
				engineer, industrial engineer, electrical engineer, nuclear engineer, and
				agricultural engineer. A "professional" means a person rendering services as:
1. Architects
2. Attorneys-at-law
3. Certified public accountants
4. Dentists
5. Engineers
6. Land surveyors
7. Surgeons
8. Veterinarians
9. Practitioners of the healing arts (the
				arts and sciences dealing with the prevention, diagnosis, treatment and cure or
				alleviation of human physical or mental ailments, conditions, diseases, pain or
				infirmities), including pharmacists and occupational and physical therapists,
				chiropractors, dieticians, and such occupations as listed in this section, and
				no others.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-460 - Professional services; consulting

Current through Register Vol. 40, No. 24, July 15, 2024
The terms "consultants" and "consulting" imply that the
				  person possesses education, experience, and expertise in the subject matter of
				  the service offered. However, whether a consultant renders a professional
				  service also depends on the nature of the service offered. While consulting
				  involves the rendering of an expert opinion, as opposed to the mere conveyance
				  of data or the giving of general advice, the activity of consulting will not
				  fall into the definition of "professional services" unless some professional
				  service is rendered with the consulting advice and the rendering of such
				  professional service is listed on the list contained in
				  23VAC10-500-450. For
				  example:
1. An inexperienced lawyer
				offering legal services to the public is classified as a professional because
				qualifying as a lawyer requires a prolonged course of specialized instruction
				and study, and legal services are generally considered professional
				services.
2. A "professional
				exterminator" is classified as personal and other services because he is
				offering an exterminating service even though he may be very experienced,
				expert and knowledgeable in the subject. On the other hand, a biologist or
				sanitarian who does not provide extermination services but advises as to
				procedures (among which may be extermination services), equipment, and other
				measures to avoid contamination by viruses, bacteria, chemicals, insects,
				rodents, and the like may be considered a professional.
3. Services that are not considered
				professional services may be offered in connection with professional services
				and be considered ancillary. For example, tax preparation services generally
				are not professional services, while rendering advice concerning the tax
				consequences of completed or contemplated transactions would be a professional
				service. Professionals who specialize in tax matters may prepare returns as
				well as render advice, and the tax preparation service would be ancillary to
				the professional service.
4. The
				term "management consulting" does not convey enough information about the
				service offered to determine the proper classification. Services that assist
				the business in the conduct of its day-to-day operations would generally not be
				considered professional. For example, payroll services, marketing surveys, and
				cash management are all services that would not properly be classified as
				professional services.
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 23VAC10-500-470 - Professional services; services for compensation

Current through Register Vol. 40, No. 24, July 15, 2024
A. Certification as a professional by itself
				is not sufficient to establish liability for local license taxation because
				many individuals may maintain their professional certification even though they
				are not practicing their profession. The business may not be classified as
				professional unless it is offering professional services to the public for
				compensation.
B. Gross receipts for
				purposes of local license taxation as a professional include only those gross
				receipts obtained from the practice of that profession as a business (including
				any ancillary receipts), whether the practice be on a full- or part-time basis,
				and without regard to the legal form of the business entity.
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 23VAC10-500-480 - Repair, personal, business and other services; other businesses

Current through Register Vol. 40, No. 24, July 15, 2024
Other services not clearly identified as financial, real
				  estate or professional are classified as "repair, personal, business and other
				  services" under
				  23VAC10-500-490 to
				  23VAC10-500-510.
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 23VAC10-500-490 - Repair, personal, business and other services; maximum rate

Current through Register Vol. 40, No. 24, July 15, 2024
The maximum rate for local license taxes imposed upon a
				  person engaged in providing for compensation any repair, personal, business or
				  other services not specifically otherwise classified in the BPOL Regulations
				  (23VAC10-500) or exempted from local license tax is 36 cents per $100 of gross
				  receipts. In lieu of a tax, a locality may impose a license fee upon the
				  service. The amount of the fee charged is limited by the locality's population.
				  (23VAC10-500-100.)
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 23VAC10-500-510 - Commission merchants

Current through Register Vol. 40, No. 24, July 15, 2024
A commission merchant as defined in § 58.1-3733 of the
				  Code of Virginia is deemed to be providing a service to the manufacturer or
				  merchant for whom he sells. The commission merchant's commission income may be
				  subject to a license tax of up to 36 cents per $100 of gross receipts under
				  this classification.
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 23VAC10-500-520 - Manufacturing

Current through Register Vol. 40, No. 24, July 15, 2024
A. Manufacturers
				are not listed as a classification for which § 58.1-3706 of the Code of
				Virginia specifies the maximum tax rate. The taxation of wholesalers, however,
				is affected by whether the business is also classified as a manufacturer, and
				whether activities at a definite place of business from which sales are made
				are considered to be part of the manufacturing process. Questions also arise as
				to whether a business is a manufacturer or properly classified as another type
				of business.
B. The Code of
				Virginia does not define the term "manufacturer" for purposes of the local
				business license tax. The courts, however, have developed a liberally applied
				test involving three essential elements in determining when a person is a
				manufacturer:
1. The original
				material;
2. A process whereby the
				original material is changed; and
3. A resulting product which, by reason of
				being subjected to processing, is different from the original material.
(See the Virginia Supreme Court's discussion in County of
				  Chesterfield v. BBC Brown Boveri, 238 Va. 64 (1989) of the term "manufacturer"
				  for purposes of the BPOL law.)
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 500 - BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX REGULATIONS › Section 23VAC10-500-530 - Due dates

Current through Register Vol. 40, No. 24, July 15, 2024
A. If not
				previously licensed, a person must apply for a license prior to beginning
				business. If licensed the previous year, a person must apply for a license
				prior to the application due date adopted by the locality. Applications are on
				forms prescribed by the local tax officials.
B. For reasonable cause, the local official
				may allow an extension for the filing of the application and such extension may
				be conditioned on the timely payment of an estimate of the tax due. Taxes paid
				based upon an estimate will be subject to correction, with interest and
				penalties, if the estimate is unreasonable.
C. For taxes based on gross receipts, the
				locality has the option of requiring payment of the tax on or before the
				locality's fixed due date for filing license applications or a later date, or
				30 or more days after the person begins business.
D. Every locality must adopt a March 1 due
				date for applications or a later application date that is on or before May 1st
				of the license year no later than the 2007 license year.
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 23VAC10-500-540 - Interest and penalties

Current through Register Vol. 40, No. 24, July 15, 2024
The provisions of § 58.1-3703.1 of the Code of Virginia
				  relating to interest and penalties apply to assessments made on and after
				  January 1, 1997, even if for an earlier license year. Interest is charged on
				  all late payments regardless of reason. A locality may impose a 10% penalty on
				  an entity that fails to file a license application or return on time or on an
				  entity that makes late payments. The 10% penalty and interest for late payment
				  apply to license fees as well as the license tax.
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 23VAC10-500-550 - Interest

Current through Register Vol. 40, No. 24, July 15, 2024
A. For assessments
				made on or after January 1, 1997, if a payment of tax is late, interest will be
				charged on the late payment from the due date until the date paid without
				regard to fault or other reason.
B.
				For tax years prior to January 1, 1997, localities may charge interest upon
				delinquent taxes pursuant to § 58.1-3916 of the Code of
				Virginia.
C. If an assessment of
				additional or omitted tax is found to be erroneous, the interest and penalty
				charged and collected on the amount of such assessment must be refunded with
				interest on the refund from the date of payment or the due date, whichever is
				later. Interest on any refund must be paid at the same rate charged under
				§ 58.1-3916 of the Code of Virginia.
D. Taxes paid by first-year taxpayers based
				upon estimates will be subject to correction with interest and penalties if
				estimates prove to be unreasonable. Unless otherwise provided by a locality,
				estimates of the tax due will be deemed unreasonable if they are less than 80%
				of the actual taxes ultimately due.
E. If a refund is made within than 30 days
				from the date of the payment that created the refund, or the due date of the
				tax, whichever is later, interest will not be paid.
F. If a late payment is made within than 30
				days from the due date of the tax, whichever is later, interest on the payment
				will not be due.
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 23VAC10-500-560 - Penalties

Current through Register Vol. 40, No. 24, July 15, 2024
A. Upon a failure
				to file or a failure to pay a tax due, a penalty of 10% may be imposed. If both
				the application and payment are late, only one penalty may be imposed, unless
				the local official determines the taxpayer has a history of noncompliance, then
				both penalties may be assessed. Where an assessment of additional tax is made,
				but the application or the return, or both were made in good faith by the
				taxpayer and there is no fraud, recklessness or intentional disregard of the
				law on the part of the taxpayer, there will be no penalty on the additional
				tax.
B. A 10% late penalty may be
				imposed on any assessed tax that is not paid within 30 days. If the failure to
				file or pay is not the fault of the taxpayer, the penalty will not be imposed,
				or if imposed, shall be abated. Lack of fault must be demonstrated by the
				taxpayer showing that he acted responsibly and that the failure was due to
				events beyond his control. "Acted responsibly" means that the taxpayer
				exercised the reasonable care that a prudent person would exercise under the
				circumstances, and that the taxpayer took significant steps to avoid or
				mitigate the failure. Examples of such steps include requesting appropriate
				extensions (where applicable), attempting to prevent a foreseeable impediment,
				acting to remove an impediment once it occurred, and promptly rectifying a
				failure once the impediment was removed or the failure discovered. "Events
				beyond the taxpayer's control" include, but are not limited to, unavailability
				of records due to fire or other casualty; unavoidable absence (e.g., due to
				death or serious illness) of the person with sole responsibility for tax
				compliance; or the taxpayer's reasonable reliance in good faith upon erroneous
				written information from the assessing official who was aware of the relevant
				facts relating to the taxpayer's business when he provided the erroneous
				information.
Statutory Authority
§ 58.1-3701 of the Code of
					 Virginia.