Tax Type
BPOL Tax
Description
In general; Contractors; Use of sealers
Topic
Local Power to Tax
Date Issued
04-15-1997
April 15, 1997
Re: Request for Advisory Opinion: BPOL
Dear*****************
This will respond to your letter of March 31, 1997 requesting an advisory opinion.
The license tax is a local tax which is imposed and administered by local officials. The Code of Virginia limits the involvement of the Department of Taxation to promulgating guidelines and issuing advisory opinions. However, the department shall not be required to interpret any local ordinance.
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.
FACTS
You have inquired as to whether a individual who power washes buildings and decks and applies sealer to decks should be considered a contractor for local license tax purposes as defined in § 58.1-3714 B Code of Virginia.
OPINION
The above referenced code section specifically defines contractors in terms of the materials they use to perform their work. Under the criteria set forth in this section, an individual who merely power washes decks, and other structures using water and cleaning chemicals would not be considered a contractor because he uses none of the materials listed in the statute.
The BPOL statute does, however, include individuals who work with paint in the definition of contractors. Other than the fact that paint has color, I find paint indistinguishable from sealer for purposes of the BPOL tax. I would therefore conclude that individuals who apply sealer to decks may be treated as contractors. Furthermore, power washing activity prior to the application of sealer would be ancillary to the contracting activity of applying sealer. In this situation, the gross receipts from power washing and sealing, not just the application of the sealer would be subject to the BPOL tax.
I hope that the above information will be beneficial to you. Although I believe this letter conform with the law, it is written only for your guidance. If you have any further questions or comments, please do not hesitate to let me know.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12384
Rulings of the Tax Commissioner