Tax Type
BPOL Tax
Description
License application due date; Seasonal businesses
Topic
Local Power to Tax
Date Issued
01-14-1997
January 14, 1997
Re: Request for Advisory Opinion: Local License Tax
Dear**********
This will reply to your facsimile of December 30, 1996, requesting an advisory opinion, pursuant to Code of Virginia § 58.1-3701, on the application dates of seasonal businesses.
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.
I will address the question raised in your letter. The response is intended to provide guidance only and does not constitute a formal or binding ruling.
Facts
In your letter you ask when seasonal businesses, for example Christmas tree sellers, should apply for a license, as these businesses may not know whether they will operate during the license year at the March 1 application deadline.
Determination
Code of Virginia § 58.1-3703.1 A 2 a states that:
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- Each person subject to a license tax shall apply for a license prior to beginning business if he was not subject to licensure in the jurisdiction on or before January 1 of the license year, or no later than March 1 of the license year if he had been issued a license for the preceding year.
A seasonal business must apply for a license prior to beginning business, if that business was not subject to licensure in the locality during the prior year. If the business was subject to licensure in the previous year, then the business must apply for the license prior to March 1. However, Code of Virginia § 58.1-3703.1 A 2 c allows an assessing official to grant an extension of time to file a business license application for reasonable cause. The governing body must decide whether it is reasonable for a seasonal business to file a business license application after the March 1 deadline. If it is reasonable for a seasonal business to file an application after the March 1 deadline, the governing body may grant a filing extension.
I hope that the above information will be beneficial to you. If you have any questions, please do not hesitate to let me know.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP11997B
Rulings of the Tax Commissioner