Tax Type
BPOL Tax
Description
Exceptions; Growth and sale of farm products
Topic
Local Power to Tax
Date Issued
01-27-1997
January 27, 1997
Re: Request for Advisory Opinion: BPOL
Dear*****************
This will respond to your facsimile dated January 10, 1997, regarding the necessity of a BPOL license for taxpayers engaged in raising catfish and edible flowers which are sold directly to the public.
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 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 regarding the necessity of a BPOL license for persons engaged in raising catfish and edible flowers which are sold directly to the public.
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.
No locality may impose a license fee or levy any license tax for selling farm or domestic products or nursery products, ornamental or otherwise, or for the planting of nursery products, as an incident to the sale thereof, outside of the regular market houses and sheds of such county, city or town; provided, such products are grown or produced by the person offering such products for sale. Code of Virginia § 58.1-3703 C 2.
As the above provisions indicate, persons selling farm or nursery products, which they have also grown, are not required to obtain a BPOL license.
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, and the final determination is with the locality.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12040H
Rulings of the Tax Commissioner