Tax Type
BPOL Tax
Description
Contractor Performing Work for the Commonwealth or an Exempt Organization
Topic
Local Power to Tax
Date Issued
03-12-1968
A contractor's license tax is a privilege tax and not affected by the provisions of § 183 of the Constitution or § 58-12 of the Code which exempts property owned directly or indirectly by the Commonwealth from taxation. Therefore, a county can impose a contractor's license tax on a contractor performing work for the Commonwealth. Such a license tax can also be imposed on a contractor doing work for any tax-exempt organization since the provisions of the above-named sections cannot be extended to include a contractor's license tax. Exemptions from taxation are strictly construed. The words ``rights, privileges and franchises' are not to be construed to include an exemption from taxation unless all doubt of the intention of the legislature to include it is removed by other provisions.
Attorney General's Opinion