Tax Type
BPOL Tax
Description
Peddlers
Topic
Local Power to Tax
Date Issued
02-11-1997
February 11, 1997
Re: Request for advisory Opinion: BPOL
Dear*****************
This will respond to your letter transmitted by fax on January 19, 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. This response is intended to provide guidance only and does not constitute a formal or binding ruling.
FACTS
*********** is in the business of selling ice cream and a variety of other frozen foods to residents of ***** county. Sales are made by a fleet of 3 trucks that sell from door to door. Each business day, before departing for their assigned territory in the county, the trucks load up with product from a central location. Although the trucks may travel a regular route and call on regular customers, no orders are taken prior to delivery. The drivers market the goods loaded in their trucks as they travel their routes.
OPINION
The term "peddler" for BPOL purposes is defined in § 58.1-3717 Code of Virginia as a person who carries goods from place to place in order to offer them for sale. A peddler is distinguished from other types of retailers by two features; he moves from place to place and he carries the inventory he offers for sale with him. Based on this two pronged test, it is clear that this business activity qualifies as a peddler.
The remaining question is whether there should be one license or three. Although the three trucks that sell in ***** are owned by ****they operate independently. Thus, the licensable privilege of peddling is being conducted at three different places at any one time in******* In general, the uniform ordinance provides for one license for each instance of a business exercising a licensable privilege. It is therefore consistent to require that each truck be licensed separately to peddle goods in the County.
Although, the maximum fee for each license is $500, the County has the authority to impose a lower fee in its discretion.
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/12110
Rulings of the Tax Commissioner