Tax Type
BPOL Tax
Description
Undertakers operating a dual business,
Topic
Local Power to Tax
Taxability of Persons and Transactions
Taxable Income
Date Issued
03-25-1982
March 25, 1982
Re: Local business, professional, and occupational license
Undertakers
In your letter of January 18, 1982 you request an interpretation of § 58-403 and how it relates to the local business, professional, and occupational license taxes.
§ 58-403 of the Code of Virginia provides for a state revenue license on undertakers. This particular license is a privilege license on undertakers for the privilege of doing business within the Commonwealth and is based upon the number of inhabitants within a locality.
§ 58-266.1 of the Code of Virginia provides the authority for the localities to license at the local level the businesses, professions and occupations within the locality. Under the Guidelines for Local Business, Professional and Occupational License Taxes funeral services and crematories are classified in the repair, personal, business and other services category. The undertaker is in a regulated business, but for purposes of BPOL he is not considered a professional for license tax classification and is taxed in the business service category.
It is possible that an undertaker may be operating a dual business, one in which he performs a service and furnishes items with that service such as caskets, vaults, etc. and a retail business selling such items as shrouds, flowers, etc. In the case of a dual operation each portion of the business should be taxed at the applicable rates.
In conclusion, the undertaker is required to obtain a state revenue license as imposed by § 58-403 and a local revenue license if imposed by the locality under § 58-266.1 of the Code of Virginia.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner