Tax Type
BPOL Tax
Description
Exceptions; Taxicabs
Topic
Local Power to Tax
Date Issued
08-28-1997
August 28, 1997
Re: Request for Advisory Opinion: BPOL
Dear***********
This will respond to your letter of July 23, 1997, requesting a review of P.D. 97--282.
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 requested a review of the above referenced opinion dealing with local licensure of taxis and taxi companies. My advisory opinion was based on the facts set forth in the opinion request which suggested that the taxi company merely rented the taxis and had no other control, contact, or business relationship with the drivers. I stated that the statutory provision exempting drivers operating for a licensed taxi company would not apply to drivers that were truly independent and unrelated to the company providing the vehicles.
I understand that P.D. 97-282 requires amplification because of the clarification you have provided regarding the legal relationship between drivers and taxi cab companies. Most taxi drivers are not completely independent in terms of routes, company name, etc. From your experience, all the taxi's in your locality are operated under an arrangement where the taxi is leased from the taxi company. Although, the taxi driver is an independent contractor, he drives a cab bearing markings identical to other taxi's rented by the company and there is considerable oversight of his operation and scheduling on the part of the taxi company. Your experience further indicates that the taxicab lease arrangement described above is employed virtually universally throughout the Commonwealth. You have no knowledge of any taxi companies that have their taxi's operated by employees.
OPINION
Given that taxicab drivers operating in the Commonwealth typically maintain close connections with the taxi company from which they lease their vehicle, my construction of the concept of "drivers operating for" a taxicab company, as used in Code of Virginia § 58.1-3703 C 13, would include taxi drivers who work as independent contractors under the standard arrangement detailed above. Thus, I conclude that taxicab drivers that operate for a taxi company as independent contractors would not be subject to local BPOL licensure if the taxi company from which they lease their taxi's has been licensed by the locality.
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/12771D
Rulings of the Tax Commissioner