Tax Type
BPOL Tax
Local Taxes
Description
Corporation leasing tractor trailer
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
05-30-2001
May 30, 2001
Re: Request for Advisory Opinion
Business, Professional, & Occupational License (BPOL) Tax
Dear ****
This advisory opinion is issued in response to your request for guidance concerning the local license taxation of **** (the "Taxpayer"). I apologize for the delay in responding to your request.
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 state that the Taxpayer is a corporation that leases a tractor truck to a trucking company (the "Trucking Company") and operates the vehicle for the Trucking Company. The Taxpayer is treated as an independent contractor for federal income tax purposes. The Trucking Company is the holder of a certificate issued by the Interstate Commerce Commission (the "I.C.C."). The Taxpayer does not hold a certificate issued by the I.C.C.
You ask whether or not the Taxpayer is exempt from local license taxation because the Trucking Company is the holder of a certificate issued by the I.C.C.
OPINION
Code of Virginia § 58.1-3703(C)(1) provides that no locality shall impose a license fee or levy any license tax:
[o]n any public service corporation or 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 of the United States Department of Transportation, Federal Highway Administration, except as provided in § 58.1-3731 or as permitted by other provisions of law.
The application of this exemption to a motor carrier formerly certified by the I.C.C. is addressed in Public Document 97-324 (8/14/97). A carrier formerly certified by the I.C.C. is exempt from license taxation under Code of Virginia § 58.1-3703(C)(1). However, it is my opinion that the plain language of the statute precludes the extension of the exemption to a corporation that leases a tractor truck to an exempt carrier and operates the vehicle for the exempt carrier as an independent contractor.
CONCLUSION
I hope that the above information will be of assistance 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
OTP/31703D
Re: Request for Advisory Opinion
Business, Professional, & Occupational License (BPOL) Tax
Dear ****
This advisory opinion is issued in response to your request for guidance concerning the local license taxation of **** (the "Taxpayer"). I apologize for the delay in responding to your request.
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 state that the Taxpayer is a corporation that leases a tractor truck to a trucking company (the "Trucking Company") and operates the vehicle for the Trucking Company. The Taxpayer is treated as an independent contractor for federal income tax purposes. The Trucking Company is the holder of a certificate issued by the Interstate Commerce Commission (the "I.C.C."). The Taxpayer does not hold a certificate issued by the I.C.C.
You ask whether or not the Taxpayer is exempt from local license taxation because the Trucking Company is the holder of a certificate issued by the I.C.C.
OPINION
Code of Virginia § 58.1-3703(C)(1) provides that no locality shall impose a license fee or levy any license tax:
[o]n any public service corporation or 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 of the United States Department of Transportation, Federal Highway Administration, except as provided in § 58.1-3731 or as permitted by other provisions of law.
The application of this exemption to a motor carrier formerly certified by the I.C.C. is addressed in Public Document 97-324 (8/14/97). A carrier formerly certified by the I.C.C. is exempt from license taxation under Code of Virginia § 58.1-3703(C)(1). However, it is my opinion that the plain language of the statute precludes the extension of the exemption to a corporation that leases a tractor truck to an exempt carrier and operates the vehicle for the exempt carrier as an independent contractor.
CONCLUSION
I hope that the above information will be of assistance 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
OTP/31703D
Related Documents
Rulings of the Tax Commissioner