Tax Type
BPOL Tax
Description
Sales of Mutual Fund Shares
Topic
Local Power to Tax
Date Issued
08-10-1973
Shares of a mutual fund are shares of a corporation for purposes of § 58-290, which imposes a municipal license tax on persons, firms and corporations engaging in the business of buying and selling shares for others. Under the wording of the statute and Tax Department policy, the tax is imposed on the person, firm or corporation which actually consummates the sale; employees and salesmen need not be licensed. Therefore, a brokerage house or a mutual fund itself (but not the fund's registered representative) is generally a licensee. If an insurance sales agency sells mutual fund shares, the funds it represents should be licensed, but the agency is not required to obtain a license.
Attorney General's Opinion