Tax Type
BPOL Tax
Description
Specific Types of Local License Taxes
Topic
Local Power to Tax
Date Issued
10-08-1998
October 8, 1998
Re: Request for Advisory Opinion: BPOL
Dear *****
This will respond to your letter of August 21, 1998, in which you ask whether you must pay interest on a pro-rated refund of BPOL tax to a business which has permanently ceased operations in your locality.
FACTS
You frequently receive requests from businesses, which have discontinued operations, for a pro-rated refund of BPOL tax pursuant to Code of Virginia §58.1-3710. You ask whether interest must still be paid on these refunds if a refund check is issued within thirty days of the taxpayer's refund request.
OPINION
In P.D. 97-129 (copy enclosed), the department opined that "since interest must be paid on the refund of any BPOL tax, whether attributable to an amended return or other reason, your locality must include interest from the due date on the pro-rated refund of BPOL taxes where a business discontinues operations and surrenders its BPOL license.' This result was based upon Code of Virginia §58.1-3703.1 A2e (copy enclosed) which provides that interest shall be paid on the refund of any BPOL tax from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. § 58.1-3703.1 A2e requires that interest be paid on a refund of BPOL taxes no matter what the reason for the refund. This, of course, includes pro-rated refunds of BPOL tax.
Although interest must be paid on BPOL refunds regardless of the reason for the refund, interest need not be paid by a locality if it issues the refund not more than thirty days from the date of the payment that created the refund or the due date of the tax, whichever is later. Code of Virginia §58.1-3703.1 A2e. As a result, interest is not required on a pro-rated refund of BPOL tax only in those cases where the refund is issued to the taxpayer thirty days or less after the taxpayer has paid its license taxes for the particular year or the due date of the tax, whichever is later.
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/17169C
Re: Request for Advisory Opinion: BPOL
Dear *****
This will respond to your letter of August 21, 1998, in which you ask whether you must pay interest on a pro-rated refund of BPOL tax to a business which has permanently ceased operations in your locality.
FACTS
You frequently receive requests from businesses, which have discontinued operations, for a pro-rated refund of BPOL tax pursuant to Code of Virginia §58.1-3710. You ask whether interest must still be paid on these refunds if a refund check is issued within thirty days of the taxpayer's refund request.
OPINION
In P.D. 97-129 (copy enclosed), the department opined that "since interest must be paid on the refund of any BPOL tax, whether attributable to an amended return or other reason, your locality must include interest from the due date on the pro-rated refund of BPOL taxes where a business discontinues operations and surrenders its BPOL license.' This result was based upon Code of Virginia §58.1-3703.1 A2e (copy enclosed) which provides that interest shall be paid on the refund of any BPOL tax from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. § 58.1-3703.1 A2e requires that interest be paid on a refund of BPOL taxes no matter what the reason for the refund. This, of course, includes pro-rated refunds of BPOL tax.
Although interest must be paid on BPOL refunds regardless of the reason for the refund, interest need not be paid by a locality if it issues the refund not more than thirty days from the date of the payment that created the refund or the due date of the tax, whichever is later. Code of Virginia §58.1-3703.1 A2e. As a result, interest is not required on a pro-rated refund of BPOL tax only in those cases where the refund is issued to the taxpayer thirty days or less after the taxpayer has paid its license taxes for the particular year or the due date of the tax, whichever is later.
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/17169C
Rulings of the Tax Commissioner