Tax Type
BPOL Tax
Description
Gross Receipts;Situs;Interstate Commerce;Apportionment
Topic
Local Power to Tax
Date Issued
12-01-1978
Loudoun County may not constitutionally impose a business license tax upon all the gross receipts of a maintenance contractor deriving its receipts from maintenance activities in Arlington County and in Maryland. The corporation's business involves servicing various hospitals and office buildings in Arlington County and in Maryland, with only a few employees in Loudoun performing administrative or clerical functions. Thus, a Loudoun County business license tax based on all gross receipts of this contractor would be an unapportioned tax on activities in interstate commerce. Such a tax would not bear a reasonable relationship to the benefits conferred by Loudoun County and would violate the interstate commerce clause.
If the tax is apportioned, §§ 58-266.5(a), (b) and (f) provide the apportionment formulas which local governments may adopt by ordinance.
If there are contracts serviced in Arlington County but no business office there, Loudoun County nevertheless must allow the taxpayer to deduct the gross receipts actually and legally taxed by Arlington County from the base which Loudoun County seeks to tax.
Attorney General's Opinion