Tax Type
BPOL Tax
Local Taxes
Description
Business type; Gross receipts from merchandise
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
03-13-1984
- March 13, 1984
Re: Business, Professional and Occupational Licenses
Dear ****
This acknowledges your letter dated December 12, 1983. Your letter sets forth five types of businesses and you ask if the gross receipts received for merchandise used in each specific business should qualify the taxpayer as a merchant or if such gross receipts should be included in another category. In addition, you enclosed a copy of an opinion of the Attorney General issued to the Honorable Charles T. Sturgill, dated June 25, 1982, which addresses the casket inventory of an undertaker.
I must take a similar position to the position taken by the Attorney General in the opinion captioned above. In each business situation you set forth, the manner by which the items are taxable will depend upon the manner in which each business is conducted. On a case by case basis, you must determine if the taxpayer includes the merchandise as a part of the complete service or whether the taxpayer sells such merchandise independently of the service performed. If you determine that a taxpayer is conducting more than one type of business, each may be taxed separately.
In addition, as pointed out by the Attorney General, the mere itemizing of merchandise does not result in the taxpayer being treated as a merchant.
I trust this information will be beneficial to you. This letter is written only for your guidance and I believe it conforms to the requirements of the statute.
Sincerely,
Raymond E. Dobyns
Deputy Tax Commissioner
Rulings of the Tax Commissioner