Bulletin Number
VTB 81-10
Tax Type
BPOL Tax
Description
Peddlers and Commission Merchants
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
05-30-1981
H. B. 1695, of the 1981 General Assembly [Ch. 419] amends § 58-266.1 of the Code of Virginia to exclude itinerant merchants or certain peddlers from current state limitations on local license rates, and imposes a ceiling of $50 for the local tax on itinerant merchants or certain peddlers other than dealers in precious metals. The new $50 ceiling applies to all itinerant merchants other than dealers in precious metals. The amendment does not apply to 1) peddlers of ice, wood, charcoal or perishable family supplies or products grown or produced by them, 2) dairymen selling and delivering dairy products, 3) manufacturers peddling at wholesale, only merchandise manufactured in this state, or 4) licensed wholesale merchants who also sell and at the same time deliver merchandise to retailers.
The current state limitation on the local license rate of a $30 flat fee or a percentage not exceeding twenty cents per one hundred dollars of gross receipts remains on the peddlers listed above. All other peddlers, except dealers in precious metals, are subject to the amendment. The dealers in precious metals are subject to the provisions of § 58-266.1 prior to the amendment. The effective date of the bill is July 1, 1981.
The 1981 General Assembly passed H. B. 1722 [Ch. 636] which amends § 58-266.1 by specifying that any person engaged in the business of selling merchandise on commission by sample, circular or catalogue for an established retailer, and who has no stock or inventory under his control, will be classified as a commission merchant for local business license taxation purposes. The local license tax for commission merchants will be computed only on commission income at a rate no higher than a flat fee of $30 or a percentage not exceeding thirty-six cents per one hundred dollars of commission income. The person engaged in such commission merchant's business shall not be subject to tax on total gross receipts from merchandise sales. The effective date of the bill is July 1, 1981.
If a locality's current rate exceeds the ceiling rate as imposed by § 58-266.1 the rate will be subject to the rollback provisions in § 58-266.1C.
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