Tax Type
BPOL Tax
Description
Exemptions;Carriers certified as public service corporations
Topic
Local Power to Tax
Date Issued
09-22-1997
| The Honorable N. Everette Carmichael Commissioner of the Revenue for Chesterfield County |
You ask whether, in view of recent changes in the federal and state regulation of trucking companies, the public service corporation exemption1 from local business, professional and occupational license taxation provided pursuant to § 58.1-3703(C)(1) of the Code of Virginia remains applicable to certain intrastate motor vehicle carriers. Assuming such exemption remains applicable, you also ask whether a locality may impose a license tax on an interstate motor vehicle carrier when a competing intrastate motor vehicle carrier is exempt.
You advise that certain trucking companies have received the benefit of the § 58.1-3703(C)(1) exemption2 because they were deemed public service corporations after obtaining a State Corporation Commission (the "Commission') certificate of public convenience and necessity as a common carrier. You also state that the Commission no longer issues such certificates, and the certificates that previously were issued are no longer valid. Therefore, you first inquire regarding whether such companies remain public service corporations entitled to the exemption.
Section 58.1-3703(C)(1) prohibits a locality from imposing a license tax on any "public service corporation.' Although the term "public service corporation' is not defined in Title 58.1, prior opinions of the Attorney General have relied on the definition provided in § 56-1 when addressing local license taxation issues concerning motor vehicle carriers.3 "The words `public service corporation' or `public service company' shall include 1/4 all persons authorized to transport passengers or property as a common carrier.'4 Historically, the authorizing entity has been the Commission. Pursuant to its former powers and duties under Title 565 to regulate "all public service companies,'6 the Commission determined whether a motor vehicle carrier received a certificate of public convenience and necessity.7 The certificated carrier thereby received the § 58.1-3703(C)(1) public service corporation exemption.8
In 1995, however, the regulation of motor vehicle carriers was removed from the purview of the Commission and delegated to the Department of Motor Vehicles (the "Department').9 The responsibility for determining when a particular motor vehicle carrier may receive a certificate of public convenience and necessity as a common carrier now lies with the Department.10 Such certificates, therefore, continue to be issued, but by a different agency of the Commonwealth. The authorization process has been transferred, but not eliminated. Accordingly, the exemption for a public service corporation remains intact for motor vehicle carriers certificated by the Department.11
Your second inquiry arises from recent federal regulatory changes including the abolishment of the Interstate Commerce Commission ("ICC').12 You cite a 1989 opinion of the Attorney General for its conclusion that a local business license tax that exempts a trucking company holding both a Commission certificate of convenience and necessity and ICC interstate authority, while taxing a competing, exclusively interstate trucking company, violates the Commerce Clause of the United States Constitution.13 Noting that there is no longer ICC interstate authority, you ask whether a locality may impose a license tax on an interstate carrier even though a competing certificated intrastate carrier is exempt as a public service corporation.
Section 58.1-3703(C)(1) exempts "any motor carrier, common carrier, or other carrier of passengers or property formerly certified by the Interstate Commerce Commission or presently registered for insurance purposes with the Surface Transportation Board.' § 58.1-3703(C)(1) contemplates the situation you present and effectively eliminates the Commerce Clause considerations at issue in the 1989 opinion.14 Accordingly, an interstate motor carrier, common carrier, or other carrier falling within the purview of § 58.1-3703(C)(1) is exempt from local license taxation.
1 There are several exceptions to the exemption for public service corporations which are not applicable here.
2 Your letter refers to § 58.1-3703(B)(1); however, this section was amended in 1996 and redesignated as § 58.1-3703(C)(1). See 1996 Va. Acts: ch. 715, at 1233, 1236; ch. 720, at 1247, 1249.
3 See Op. Va. Att'y Gen.: 1989, at 313, 314; 1987-1988, at 511, 512 n.1; 1985-1986, at 285, 285.
4 Section 56-1.
5 See former tit. 56, ch. 12 (Michie 1995). Chapter 12 was repealed effective January 1, 1996. See 1995 Va. Acts: ch. 744, cl. 3, 7, at 1243, 1280; ch. 803, cl. 3, 7, at 1530, 1567.
6 Section 56-35.
7 See repealed § 56-278 (Michie 1986).
8 See Op. Va. Att'y Gen., supra note 3: 1989, at 314, 1987-1988, at 511; 1985-1986, at 285; see also 1986-1987 Op. Va. Att'y Gen. 287, 287.
9 See tit. 46.2, subtit. 5, chs. 20-26, § 46.2-2000 passim.
10 See § 46.2-2004.
11 As to those motor vehicle carriers currently holding the former Commission certification, the General Assembly, in its revision of motor vehicle regulations, specifically has provided that all such certificates issued before July 1, 1995, shall remain in full force and effect. See 1995 Va. Acts, supra note 5: ch. 744, cl. 5, at 1280; ch. 803, cl. 5, at 1567.
12 See ICC Termination Act of 1995, Pub. L. No. 104-88, 109 Stat. 803.
13 See 1989 Op. Va. Att'y Gen., supra note 3, at 315.
14 See 1995 Op. Va. Att'y Gen. 123, 125 (in amending statute, General Assembly had full knowledge of existing law and construction placed upon it by Attorney General).
Related Documents
Attorney General's Opinion