Bulletin Number
VTB 83-8
Tax Type
BPOL Tax
Description
1983 Legislative Changes
Topic
Local Power to Tax
Date Issued
05-20-1983
Virginia Department of Taxation
83-8
DATE: May 20, 1983 SUBJECT: Local Revenue Licenses and Fees:1983 Legislative Changes
The 1983 Session of the General Assembly enacted several laws effective July 1, 1983, affecting local revenue licenses and fees. The purpose of this bulletin is to announce those changes.
Local regulatory fee for door to door salesman: § 15.1-37.3:2 was amended by increasing from $10.00 to $20.00 the maximum regulatory fee that a county, city or town may collect from each person granted a permit as a door to door vendor. The local governing body must adopt an ordinance authorized by § 15.1-37.3:1 to regulate such door to door vendors before the regulatory fee may be collected. (Chapter 383, House Bill 20).
Itinerant merchants or retail Peddlers: § 58-266.8 was amended by increasing from $50. to $500. the maximum ceiling rate for the local business revenue license tax on itinerant merchants or retail peddlers. The amendments also broaden the exemption from such tax currently provided for dairymen selling in cities to include dairymen selling in counties and towns. In addition, the amendments clarify the current statutory language exempting a manufacturer from the itinerant merchant's or retail peddler's license with respect to the sale of goods manufactured by him at a plant subject to Virginia intangible personal property tax. (Chapter 550, House Bill 39).
Oil company excise tax excluded from gross receipts: § 58.266.1A(9) was amended to exclude from gross receipts for local license tax purposes any amount paid to or by oil companies resulting from the oil company excise tax imposed by § 58-730.9, Code of Virginia. (Chapter 554, House Bill 418).
Proration of local business revenue licenses: § 58-266.5:1 was added to the Code of Virginia to prohibit a locality from imposing a local business license tax for any fraction of a year during which a licensee has ceased to conduct business in such locality. No proration will be required for beginning licenses based on gross receipts since the license is only imposed on gross receipts for the portion of year in business.
Upon application, licenses for licensees ceasing to conduct business during the license year must be prorated on the basis of months in business. This proration results in a refund of tax paid for any months the licensee is not in business in the locality. The locality may elect to remit any refunds in the ensuing fiscal year. (Chapter 252, House Bill 423).
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