Tax Type
BPOL Tax
Description
Specific types of local licenses tax; Public service corporations; Consumer utility taxes
Topic
Local Power to Tax
Date Issued
01-27-1997
January 27, 1997
Re: Request for Advisory Opinion: BPOL
Dear***********
This will response to your facsimile dated January 8, 1997, regarding the ability of localities to assess BPOL license fees, in addition to the BPOL tax, upon heat, power and light companies.
The license tax is, of course, 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 on the new state BPOL law and issuing advisory written opinions in specific cases to interpret those provisions and the guidelines issued thereunder. 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 request an advisory written opinion on localities authority to impose certain BPOL license fees in addition to the BPOL license tax authorized under Code of Virginia § 58.1-3731. Such fees may include processing fees, administrative fees, handling fees, clerk's fees, and other miscellaneous fees.
DETERMINATION
Subject to limits in Code of Virginia § 58.1-3703 C, localities may charge a fee for issuing BPOL licenses and may levy, assess and collect BPOL license taxes on businesses, trades, professions, occupations and callings, and upon the persons, firms and corporations engaged therein within the locality. The amount of the fee varies depending upon the locality's population, and has a maximum of $100 in the most populated localities. Code of Virginia § 58.1-3703 A.
Except as provided in § 58.1-3731, or as permitted by other provisions of law, no locality may impose a license fee or levy any license tax on any public service corporation. Code of Virginia § 58.1-3703 C 1. In addition to the taxes levied under Code of Virginia § 58.1-2600, et seq., localities may impose BPOL license taxes on heat, light and power companies up to one-half of one percent of the companies' gross receipts, which accrue from sales to consumers in such localities. Code of Virginia § 58.1-3731.
As the above provisions indicate, localities may only impose a BPOL tax upon heat, light and power companies. For BPOL purposes, localities may not impose upon such companies any license processing fee, administrative fee, handling fee, clerk's fee, or any other miscellaneous fee.
I hope that the above information will be beneficial to you. Although letter conforms with the law, it is written only for your guidance, and the final determination is with the locality.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12033H
Rulings of the Tax Commissioner