Tax Type
BPOL Tax
Description
Interstate transportation services
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
04-23-2002
April 23, 2002
Re: Request for Advisory Opinion
Business, Professional and Occupational License (BPOL) Tax
Dear *****:
This is in response to your letter requesting an advisory opinion on the eligibility of your client, ***** (the "Taxpayer"), for exempt status with regard to the BPOL tax. Specifically, you ask if the Taxpayer qualifies for the BPOL tax exemption in Code of Virginia § 58.1-3703(C)(1) for certain common carriers formerly certified by the Interstate Commerce Commission.
The local license fee and tax are imposed and administered by local officials. §58.1-3701 of the Code of Virginia authorizes the department to promulgate guidelines and issue advisory opinions on local license tax issues. The following opinion has been made subject to the facts presented to the department as summarized below. Any change in these facts or the introduction of facts by another party may lead to a different result.
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.
Copies of the Code of Virginia cited are included for reference purposes. These and other reference documents are also available online in the Tax Policy Library section of the Department of Taxation's web site located at www.tax.state.va.us.
FACTS
The Taxpayer provides interstate transportation services *****. It was formerly certified by the Interstate Commerce Commission as a contract carrier in 1994. The Taxpayer asks if it is exempt from BPOL taxation, and if it is due a refund for BPOL taxes paid in 1998, 1999 and 2000.
OPINION
Numerous classes of motor vehicle carriers are exempt from local license taxation. Specifically, Code of Virginia § 58.1-3703(C)(1) provides that no county, city, or town shall impose a license fee or levy any license tax on "any motor carrier, common carrier, or other carrier of passengers or property formerly certified by the Interstate Commerce Commission."
A "motor carrier" is defined in Code of Virginia § 46.2-2000 as "any person who undertakes, whether directly or by lease, to transport passengers for compensation over the highways of the Commonwealth. Similarly, a "common carrier" is defined in Code of Virginia § 46.2-2000 as:
-
- any person who undertakes, whether directly or by a lease or any the arrangement, to transport passengers for the general public by motor vehicle for compensation over the highways of the Commonwealth, whether over regular or irregular routes, including such motor vehicle operations of carriers by rail or water under this chapter. [Emphasis added].
The Taxpayer, by contract, carries passengers over the highways of the Commonwealth for compensation. It, therefore, meets the definition of "common carrier." The Taxpayer also was formerly registered with the ICC. Therefore, it is my opinion that, pursuant to Code of Virginia § 58.1-3703(C)(1), the Taxpayer is exempt from local license taxation and has been exempt throughout the period in question.
If you have any questions regarding this opinion, you may contact ***** in the Office of Policy and Administration, Appeals and Rulings, at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
AR/38252H
Rulings of the Tax Commissioner