Tax Type
General Provisions
Local Taxes
Description
Secrecy of returns; Local licensing information
Topic
Returns/Payments/Records
Date Issued
04-15-1997
April 15, 1997
Re: Request for Advisory Opinion: BPOL
Dear**************
This will respond to your letter of February 27, 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
A number of requests for business licenses information have been made to your office. You have asked if there are any privacy issues that should be considered before you release information to the public on business licenses issued to individuals. You have further concerns on how this information should be furnished, i.e. upon oral request or must the request be in writing.
OPINION
Generally § 58.1-3 Code of Virginia prohibits a commissioner of the revenue from divulging any information acquired by him in the performance of his duties with respect to the transactions, property, income or business of any person, firm or corporation, unless there is a specific exception that would allow such a disclosure.
Subsection B of § 58.1-3 provides a specific exception that allows a local tax official to disclose whether a person, firm or corporation is licensed to do business in that locality. Additionally, he may divulge, upon written request, the name and address of any person, firm or corporation transacting business under a fictitious name. In previous opinions the Department has determined that the release of lists of new business licenses issued was tantamount to the disclosure permitted under the Virginia Code. In light of this determination, a number of localities including the City of Richmond and Henrico County, regularly release such lists for publication in the local newspaper. The release of these license lists is not required and thus the decision to issue them is purely within the discretion of the commissioner of the revenue. A request as to the license status of a specific entity or a fictitious name should be responded to as provided in § 58.1-3. If the information on a specific entity is not provided, the requesting party could compel disclosure through a Freedom of Information Act (FOIA) Request. Other tax information, however, is specifically exempted and thus, beyond the reach of a FOIA request.
Virtually all business license information you maintain is gathered from license applications in the performance of your duties. Based on the limitations imposed by § 58.1-3, I would advise against releasing any information on business licensing other than that which is referenced above.
I hope that the above information will be beneficial to you. Although I believe this letter conforms 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/12243
Rulings of the Tax Commissioner