Tax Type
BPOL Tax
Local Taxes
Description
Exceptions; Sales of beef at producer's farm
Topic
Local Power to Tax
Date Issued
06-05-2000
June 5, 2000
Re: Request for Advisory Opinion
Business, Professional, and Occupational License (BPOL) Tax
Dear ****
This will respond to your letter requesting an advisory opinion regarding the local license taxation of a business (the "Taxpayer") that raises cattle and sells beef on its farm.
While addressing the questions raised in your letter, this response is intended to provide advisory guidance only, and does not constitute a formal or binding ruling. I have enclosed copies of cited material for your review.
FACTS
You inform me that the Taxpayer raises cattle on its farm. The cattle are slaughtered and butchered for the Taxpayer at another location by another business. The Taxpayer sells the beef at its farm. You ask whether or not the sale of beef in these circumstances is exempt from license taxation under Code of Virginia § 58.1-3703(C)(2).
OPINION
Code of Virginia '§58.1-3703 (C)(2) provides that no Virginia locality shall impose a license fee or levy any license tax:
for selling farm or domestic products or nursery products, ornamental or otherwise . . . outside of the regular market houses and sheds of such county, city or town, provided such products are grown or produced by the person offering them for sale.
In my opinion, the activity described above is exempt from local license taxation under Code of Virginia § 58.1-3703 (C)(2). I am enclosing a copy of 1984-85 Report of the Attorney General 347 (April 9, 1985), which discusses this exemption in detail.
I hope that the above information will be beneficial to you. Although I believe this letter conforms with the requirements of the law, it is written only for your guidance. If you have other questions, please do not hesitate to contact *****, Tax Policy Analyst, in my Office of Tax Policy at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP27777D
Re: Request for Advisory Opinion
Business, Professional, and Occupational License (BPOL) Tax
Dear ****
This will respond to your letter requesting an advisory opinion regarding the local license taxation of a business (the "Taxpayer") that raises cattle and sells beef on its farm.
While addressing the questions raised in your letter, this response is intended to provide advisory guidance only, and does not constitute a formal or binding ruling. I have enclosed copies of cited material for your review.
FACTS
You inform me that the Taxpayer raises cattle on its farm. The cattle are slaughtered and butchered for the Taxpayer at another location by another business. The Taxpayer sells the beef at its farm. You ask whether or not the sale of beef in these circumstances is exempt from license taxation under Code of Virginia § 58.1-3703(C)(2).
OPINION
Code of Virginia '§58.1-3703 (C)(2) provides that no Virginia locality shall impose a license fee or levy any license tax:
for selling farm or domestic products or nursery products, ornamental or otherwise . . . outside of the regular market houses and sheds of such county, city or town, provided such products are grown or produced by the person offering them for sale.
In my opinion, the activity described above is exempt from local license taxation under Code of Virginia § 58.1-3703 (C)(2). I am enclosing a copy of 1984-85 Report of the Attorney General 347 (April 9, 1985), which discusses this exemption in detail.
I hope that the above information will be beneficial to you. Although I believe this letter conforms with the requirements of the law, it is written only for your guidance. If you have other questions, please do not hesitate to contact *****, Tax Policy Analyst, in my Office of Tax Policy at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP27777D
Rulings of the Tax Commissioner