[Code 1991, § 17-141; 2-27-2024 by Ord. No. 24-01]
The following words, terms and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning or there is an express
provision to the contrary:
One or more chains of corporations subject to inclusion connected
through stock ownership with a common parent corporation which is
a corporation subject to inclusion if:
Stock possessing at least 80% of the voting power of all classes
of stock and at least 80% of each class of the nonvoting stock of
each of the corporations subject to inclusion, except the common parent
corporation, is owned directly by one or more of the other corporations
subject to inclusion; and
The common parent corporation directly owns stock possessing
at least 80% of the voting power of all classes of stock and at least
80% of each class of the nonvoting stock of at least one of the other
subject to inclusion corporations.
|
As used in this subsection, the term "stock" does not include
nonvoting stock which is limited and preferred as to dividends, the
phrase "corporation subject to inclusion" means any corporation within
the affiliated group irrespective of the state or country of its incorporation,
and the term "receipts" includes gross receipts and gross income.
|
Two or more corporations if five or fewer persons who are individuals,
estates or trusts own stock possessing:
At least 80% of the total combined voting power of all classes
of stock entitled to vote or at least 80% of the total value of shares
of all classes of the stock of each corporation; and
More than 50% of the total combined voting power of all classes
of stock entitled to vote or more than 50% of the total value of shares
of all classes of stock of each corporation, taking into account the
stock ownership of each such person only to the extent such stock
ownership is identical with respect to each such corporation.
|
When one or more of the corporations subject to inclusion, including
the common parent corporation, is a nonstock corporation, the term
"stock" as used in this subsection shall refer to the nonstock corporation
membership or membership voting rights, as is appropriate to the context.
|
An increase in the assessment of a local license tax payable
by a taxpayer, the denial of a refund, or the assessment of a local
license tax where none previously was assessed, arising out of the
local assessing official's: (i) examination of records, financial
statements, books of account, or other information for the purpose
of determining the correctness of an assessment; (ii) determination
regarding the rate or classification applicable to the licensable
business; (iii) assessment of a local license tax when no return has
been filed by the taxpayer; or (iv) denial of an application for correction
of erroneous assessment attendant to the filing of an amended application
for license.
An appealable event shall include a taxpayer's appeal of
the classification applicable to a business, including whether the
business properly falls within a business license subclassification
established by the locality, regardless of whether the taxpayer's
appeal is in conjunction with an assessment, examination, audit, or
any other action taken by the locality.
A determination as to the proper rate of tax, the measure
to which the tax rate is applied, and ultimately the amount of tax,
including additional or omitted tax, that is due. An assessment shall
include a written assessment made pursuant to notice by the assessing
official or a self-assessment made by a taxpayer upon the filing of
a return or otherwise not pursuant to notice. Assessments shall be
deemed made by an assessing official when a written notice of assessment
is delivered to the taxpayer by the assessing official or an employee
of the assessing official, or mailed to the taxpayer at his last known
address. Self-assessments shall be deemed made when a return is filed,
or, if no return is required, when the tax is paid. A return filed
or tax paid before the last day prescribed by ordinance for the filing
or payment thereof shall be deemed to be filed or paid on the last
day specified for the filing of a return or the payment of tax, as
the case may be.
The Commissioner of the Revenue of the City.
The calendar year preceding the license year, except for
contractors subject to the provisions of Code of Virginia, § 58.1-3715
or unless this article provides for a different period for measuring
the gross receipts of a business, such as for beginning businesses
or to allow an option to use the same fiscal year as for federal income
tax purposes.
An agent of a buyer or seller who buys or sells stocks, bonds,
commodities, or services, usually on a commission basis.
A course of dealing which requires the time, attention and
labor of the person so engaged for the purpose of earning a livelihood
or profit. It implies a continuous and regular course of dealing,
rather than an irregular or isolated transaction. A person may be
engaged in more than one business. The following acts shall create
a rebuttable presumption that a person is engaged in a business:
The Commissioner of the Revenue for the City.
Staples such as wool, cotton, etc., which are traded on a
commodity exchange and on which there is trading in futures.
Shall have the meaning prescribed in Code of Virginia, § 58.1-3714B,
whether such work is done or offered to be done by day labor, general
contract, or subcontract.
Any person engaged in the business of buying and selling
securities for his own account, but does not include a bank or any
person insofar as he buys or sells securities for his own account,
either individually or in some fiduciary capacity, but not as part
of a regular business.
An office or a location at which occurs a regular and continuous
course of dealing for 30 consecutive days or more. A definite place
of business for a person engaged in business may include a location
leased or otherwise obtained from another person on a temporary or
seasonal basis and real property leased to another. A person's residence
shall be deemed to be a definite place of business if there is no
definite place of business maintained elsewhere and the person is
not subject to licensure as a peddler or itinerant merchant.
A business organization, other than a sole proprietorship,
that is a corporation, limited liability company, limited partnership,
or limited liability partnership duly organized under the laws of
the commonwealth or another state.
The buying, selling, handling, managing, investing, and providing
of advice regarding money, credit, securities or other investments
and shall include the service for compensation by a credit agency,
investment company, broker or dealer in securities and commodities,
or a security or commodity exchange, unless such service is otherwise
provided for under this article. Those engaged in rendering financial
services shall include, but not be limited to, the following:
Buying installment receivables.
Chattel mortgage financing.
Consumer financing.
Credit card services.
Credit unions.
Factors.
Financing accounts receivable.
Industrial loan companies.
Installment financing.
Inventory financing.
Loan or mortgage brokers.
Loan or mortgage companies.
Safety deposit box companies.
Security and commodity brokers and services.
Stockbrokers.
Working capital financing.
A finding, based on specific facts, that the party asserting
the appeal is unlikely to prevail upon the merits because the appeal
is: (i) not well grounded in fact; (ii) not warranted by existing
law or a good faith argument for the extension, modification, or reversal
of existing law; (iii) interposed for an improper purpose, such as
to harass, to cause unnecessary delay in the payment of tax or a refund,
or to create needless cost from the litigation; or (iv) otherwise
frivolous.
The whole, entire, total receipts attributable to the licensed
privilege, without deduction, except as may be otherwise provided
under this article.
A finding, based upon specific facts, that a taxpayer designs
to: (i) depart quickly from the locality; (ii) remove his or her property
therefrom; (iii) conceal him or herself or his or her property therein;
or (iv) do any other act tending to prejudice, or to render wholly
or partially ineffectual, proceedings to collect the tax for the period
in question.
The calendar year for which a license is issued for the privilege
of engaging in business.
The rendering for compensation of any repair, personal, business
or other services not specifically classified as "financial, real
estate or professional service" under this article, or rendered in
any other business or occupation not specifically classified under
this article, unless exempted from local license tax by Code of Virginia,
Title 58.1.
Services performed by architects, attorneys at law, certified
public accountants, dentists, engineers, land surveyors, surgeons,
veterinarians, and practitioners of the healing arts (the arts and
sciences dealing with the prevention, diagnosis, treatment and cure
or alleviation of human physical or mental ailments, conditions, diseases,
pain or infirmities) and such occupations, and no others, as the state
department of taxation may list in the BPOL guidelines promulgated
pursuant to Code of Virginia, § 58.1-3701. The department
shall identify and list each occupation or vocation in which a professed
knowledge of some department of science or learning, gained by a prolonged
course of specialized instruction and study, is used in its practical
application to the affairs of others, either advising, guiding, or
teaching them, and in serving their interests or welfare in the practice
of an art or science founded on it. The word "profession" implies
attainments in professional knowledge as distinguished from mere skill,
and the application of knowledge to uses for others rather than for
personal profit.
All goods, wares and merchandise received for sale at each
definite place of business of a wholesale merchant. The term shall
also include the cost of manufacture of all goods, wares and merchandise
manufactured by any wholesale merchant and sold or offered for sale.
A wholesale merchant may elect to report the gross receipts from the
sale of manufactured goods, wares and merchandise if it cannot determine
the cost of manufacture or chooses not to disclose the cost of manufacture.
Rendering a service for compensation as lessor, buyer, seller,
agent or broker and providing a real estate service, unless the service
is otherwise specifically provided for under this article. Such services
shall include, but not be limited to, the following:
Any person or merchant who sells goods, wares or merchandise
for use or consumption by the purchaser or for any purpose other than
resale by the purchaser, but does not include sales at wholesale to
institutional, commercial or industrial users.
The same as that term is defined in the Securities Act, Code
of Virginia, § 13.1-501 et seq., or in similar laws of the
United States regulating the sale of securities.
Things purchased by a customer which do not have physical
characteristics, or which are not goods, wares, or merchandise.
Any person or merchant who sells wares and merchandise for
resale by the purchaser, including sales when the goods, wares and
merchandise will be incorporated into goods and services for sale,
and also includes sales to institutional, commercial, industrial,
or governmental users which, because of the quantity, price, or other
terms, indicate that they are consistent with sales at wholesale.
[Code 1991, § 17-142]
For each and every year, beginning on January 1 and ending December
31, there is hereby levied and there shall be collected an annual
license tax as set forth in this article, except as otherwise specifically
provided in this article, on all persons conducting or engaged in
any business, trade, profession, occupation, or calling in the City.
[Code 1991, § 17-143(a)]
Every person in the City engaging in any business, trade, profession,
occupation or calling (collectively referred to in this section as
"a business") as defined in this article, unless otherwise exempted
by law, shall apply for a license for each such business if:
A.
Such person maintains a definite place of business in the City;
B.
Such person does not maintain a definite office anywhere but resides
in the City, which abode for the purposes of this article shall be
deemed a definite place of business; or
C.
There is no definite place of business but such person operates amusement
machines, is engaged as a peddler or itinerant merchant, carnival
or circus as specified in Code of Virginia, § 58.1-3717,
58.1-3718, or 58.1-3728, respectively, or is a contractor subject
to Code of Virginia, § 58.1-3715, or is a public service
corporation subject to Code of Virginia, § 58.1-3731.
[Ord. No. 08-10, 5-13-2008]
Any person engaging in a business, trade, profession, occupation, or calling without obtaining the required license shall be deemed in violation of § 70-303 of the Fredericksburg City Code. Such violation is a Class 1 misdemeanor punishable by a fine not to exceed $2,500 and/or 12 months in jail.
[Code 1991, § 17-143(b), 17-155]
A.
A separate license is required for each definite place of business.
Any person doing business at more than one place, stall, or stand
shall be required to take out a separate license for each of such
places, stalls or stands, unless such places, stalls or stands communicate
directly and continuously with an opening to each other.
B.
A separate license shall be required for each business. A person
engaged in two or more businesses or professions carried on at the
same place of business may elect to obtain one license for all such
businesses and professions if all of the following criteria are satisfied:
(1)
Each business or profession is subject to licensure at the location
and has satisfied any requirements imposed by state law or City ordinances;
(2)
All of the businesses or professions are subject to the same tax
rate, or, if subject to different tax rates, the licensee agrees to
be taxed on all businesses and professions at the highest rate; and
(3)
The taxpayer agrees to supply such information as the assessor may
require concerning the nature of the several businesses and their
gross receipts.
[Ord. No. 02-21, 8-13-2002; amended 8-9-2016 by Ord. No. 16-20]
A.
No license shall be issued under this article until the applicant
has produced satisfactory evidence to the commissioner that all delinquent
business license, personal property, meals, transient occupancy, and
admissions taxes properly assessed against the applicant and owed
by the business to the City have been paid.
B.
No license shall be issued under this article until the applicant
has produced satisfactory evidence to the commissioner that all applicable
zoning and building code approvals have been obtained for any new
business or existing business in a new or expanded location.
C.
Any person who engages in a business without obtaining a license
required by this article, or after having been refused a license,
shall not be relieved of the tax imposed by this article.
[Code 1991, § 17-144]
A.
Each person subject to a license tax pursuant to this article shall
apply for a license prior to beginning business if he was not subject
to licensing in the City on or before January 1 of the license year,
or no later than March 1 of the current license year if he had been
issued a license for the preceding license year.
B.
The application shall be on forms prescribed by the commissioner.
[Code 1991, § 17-145]
A.
The tax shall be paid with the application in the case of any license
not based on gross receipts. If the tax is measured by the gross receipts
of the business, the tax shall be paid on or before March 15 of each
year.
B.
The commissioner may grant an extension of time, not to exceed 90
days, in which to file an application for a license, for reasonable
cause. The extension shall be conditioned upon the timely payment
of a reasonable estimate of the appropriate tax, subject to adjustment
to the correct tax at the end of the extension, together with interest
from the due date until the date paid and, if the estimate submitted
with the extension is found to be unreasonable under the circumstances,
a penalty of 10% of the portion paid after the due date.
[Code 1991, § 17-146]
When any person shall, by use of signs, circulars, cards or
use of City newspapers, advertise any business, it shall be considered
prima facie evidence of liability under this article and such person
shall be required to take out a license for such business.
[Code 1991, § 17-149]
Every person subject to the license tax under this article,
based upon the amount of his actual or probable purchases, his actual
or probable commissions, his gross receipts from his business or profession,
or as graded in any other way, shall state the amount of his actual
or probable purchases, or of his gross receipts from his business
or profession, or any other matter that may be pertinent to the assessment
of the tax on such license; provided that, in case of an incorporated
company, such oath shall be made by the chief officer or agent resident
of the City or in charge of the business of the company. A duplicate
of his application for a license, including his statement, under oath,
shall form a part of the license.
[Code 1991, § 17-150]
A.
For the purpose of ascertaining the tax to be paid by a wholesale
merchant beginning business, his purchases shall be considered to
be the amount of goods, wares and merchandise bought to commence business
with, including goods, wares, and merchandise manufactured by him
to be offered for sale at the price of which he conducts his business
as a merchant, provided such place is not the place of manufacture,
also including an estimate of purchases which the merchant will make
between the date of the issuance of his license and December 31 following,
and including an estimate of the amount of goods, wares, and merchandise
manufactured by him to be offered for sale at the place at which he
conducts his business as a merchant, provided such place is not the
place of manufacture. For retail merchants and restaurants, the basis
shall be the gross sales.
B.
For the purpose of ascertaining the tax to be paid by a license applicant
beginning business, the license applicant shall estimate the gross
receipts which he will receive between the date of the issuance of
his license and December 31 following.
C.
Every underestimate under this subsection shall be subject to correction
by the Commissioner of the Revenue, whose duty it shall be to assess
such licensee with such additional taxes as may be found to be due
after the close of the license year on the basis of the true sales.
(1)
The tax of every licensee who was licensed at a definite place of
business for only a part of the next preceding license year shall
be computed for the then current license year on the basis of an estimate
which the licensee will receive through the then current license year.
(2)
If, after the close of the year for which the license is issued,
the retail merchant should elect not to renew the license, but desires
the privilege of selling whatever goods, wares and merchandise he
may have on hand at the time, he may do so upon the payment of a license
tax measured by the retail sales value of such goods, wares and merchandise,
which value shall be estimated by the Commissioner of the Revenue.
[Code 1991, § 17-152]
All licenses issued pursuant to this article shall be assessed
as of the first day of the month in which issued, and shall cover
the period from the date of issuance until December 31 next succeeding.
[1]
Editor's Note: Former § 70-311, Separate license
required for each member of certain firms, derived from § 17-154,
Code 1991, was repealed 2-27-2024 by Ord. No. 24-01.
[Code 1991, § 17-156]
If a person ceases to engage in a business, trade, profession
or calling within the City during a year for which a license tax based
upon gross receipts has already been paid, the taxpayer shall be entitled
upon application to a refund for that portion of the license tax already
paid, prorated on a monthly basis so as to ensure that the license
privilege is taxed only for that portion of the year during which
it is exercised within the City. The treasurer shall have the authority
to remit any refunds in the ensuring fiscal year, and may offset against
such refund any amount of past due taxes owed by the same taxpayer.
In no event shall the City refund any part of a flat fee or minimum
flat tax.
[Code 1991, § 17-157]
Each person required to pay a license tax under the provisions
of this article shall post and keep posted his license in a conspicuous
place. If the tax is graduated, as provided in this article, the license
and the application therefor shall not be separated, detached, mutilated,
or defaced in any way. Any person violating the provisions of this
section in any way shall be subject to a fine of not less than $10
and not more than $100. Each day that any person violates the provisions
of this section shall constitute a separate offense.
[Code 1991, § 17-158]
A.
No City license shall be transferred from one person to another except
for the continuation of the same business for which the license was
originally issued.
B.
No City license shall be transferred from one location or stand to
another except for the continuation of the same business for which
the license was originally issued.
[Code 1991, § 17-160]
A.
It shall be the duty of the Commissioner of the Revenue to keep a
book in which he shall classify all the branches of business and occupations
upon which a license tax is imposed by this article, commencing with
that ending on December 31. The book must be kept in full conformity
with the requirements of Code of Virginia, § 58.1-3, regarding
secrecy of such information.
B.
The Commissioner of the Revenue shall, before January 1 of each year,
ascertain the names of persons and firms who are engaged in any of
the occupations, professions or businesses named or referred to in
this article. He shall make a list of such names and keep such list
in his office. He shall, upon request of the City Council or City
Manager, give an annual report indicating the taxes paid for the last
fiscal year by category insofar as is possible without violating Code
of Virginia, § 58.1-3.
[Code 1991, § 17-163]
A.
Permit required. It shall be unlawful for any person to advertise
or conduct a sale for the purpose of discontinuing a retail business,
or to modify the word "sale" in any advertisement with the words "going
out of business" or any other words which tend to insinuate that the
retail business is to be discontinued and the merchandise liquidated,
unless such person obtains a permit from the Commissioner of the Revenue
to conduct such sale in the City.
B.
Penalty. A violation of the provisions of this section shall be punishable
as a Class 1 misdemeanor.
C.
Enforcement. The Commissioner of the Revenue shall inspect the advertisement
and conducting of such sale to ensure that it is being advertised
and conducted in conformity with the required permit.
D.
Submission of inventory of goods. All applications for special sale
permits shall be accompanied by an inventory, including the kind and
quantity of all goods which are to be offered for sale during the
sale, and only the goods specified in the inventory list may be advertised
at a reduced price or sold at a reduced price during the sale period.
Goods not included on the inventory of special sale goods shall not
be commingled with or added to the special sale goods.
E.
Term of permit; information to be included in advertisements. Each
special sale permit shall be valid for a period of no longer than
60 days, and any extension of that time shall constitute a new special
sale and shall require an additional permit and inventory. An additional
permit beyond the initial sixty-day permit may be granted solely for
the purpose of liquidating only those goods contained in the initial
inventory list and which remain unsold. Any person who advertises
such sale shall conspicuously include in the advertisement the permit
number assigned for the sale by the Commissioner of the Revenue and
the effective dates of the sale as authorized in the permit.
F.
Permit fee. A fee of $50 shall be required for the issuance of special
sale permits.
[Code 1991, § 17-164]
Whenever the tax imposed pursuant to this article is measured
by gross receipts, the gross receipts included in the taxable measure
shall be only those attributed to the exercise of a licensable privilege
at a definite place of business within the City. In the case of activities
conducted outside of a definite place of business, such as during
a visit to a customer location, the gross receipts shall be attributed
to the definite place of business from which such activities are initiated,
directed, or controlled. The situs of gross receipts for different
classifications of business shall be attributed to one or more definite
places of business or offices, as follows:
A.
The gross receipts of a contractor shall be attributed to the definite
place of business at which his services are performed, or, if his
services are not performed at any definite place of business, then
the definite place of business from which his services are directed
or controlled, unless the contractor is subject to the provisions
of Code of Virginia, § 58.1-3715;
B.
The gross receipts of a retailer or wholesaler shall be attributed
to the definite place of business at which sales solicitation activities
occur, or, if sales solicitation activities do not occur at any definite
place of business, then the definite place of business from which
sales solicitation activities are directed or controlled; however,
a wholesaler or distribution house subject to a license tax measured
by purchases shall determine the situs of its purchases by the definite
place of business at which or from which deliveries of the purchased
goods, wares and merchandise are made to customers. Any whole-saler
who is subject to license tax in two or more localities and who is
subject to multiple taxation because the localities use different
measures, may apply to the state department of taxation for a determination
as to the proper measure of purchases and gross receipts subject to
license tax in each locality;
C.
The gross receipts of a business renting tangible personal property
shall be attributed to the definite place of business from which the
tangible personal property is rented, or, if the property is not rented
from any definite place of business, then the definite place of business
at which the rental of such property is managed; and
D.
The gross receipts from the performance of services shall be attributed
to the definite place of business at which the services are performed,
or, if not performed at any definite place of business, then to the
definite place of business from which the services are directed or
controlled.
[Code 1991, § 17-165]
If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts should be attributed under the general rule and the affected jurisdictions are unable to reach an apportionment agreement under § 70-319, except as to circumstances set forth in Code of Virginia, § 58.1-3709, as amended, the gross receipts of the business shall be apportioned between the definite places of businesses on the basis of payroll. Gross receipts shall not be apportioned to a definite place of business unless some activities under the applicable general rule occurred at, or were controlled from, such definite place of business. Gross receipts attributable to a definite place of business in another jurisdiction shall not be attributed to the City solely because the other jurisdiction does not impose a tax on the gross receipts attributable to the definite place of business in such other jurisdiction.
[Code 1991, § 17-166; 2-27-2024 by Ord. No. 24-01]
A.
The commissioner may enter into agreements with any other political
subdivision of the state concerning the manner in which gross receipts
shall be apportioned among definite places of business. However, the
sum of the gross receipts apportioned by any such agreement shall
not exceed the total gross receipts attributable to all of the definite
places of business affected thereby. Upon being notified by a taxpayer
that its method of attributing gross receipts is fundamentally inconsistent
with the method of one or more political subdivisions in which the
taxpayer is licensed to engage in business and that the difference
has, or is likely to, result in taxes on more than 100% of its gross
receipts from all locations in the affected jurisdictions, the commissioner
shall make a good faith effort to reach an apportionment agreement
with the other political subdivisions involved.
B.
If an agreement cannot be reached, either the commissioner or taxpayer
may seek an advisory opinion from the Department of Taxation pursuant
to Code of Virginia, § 58.1-3701; notice of the request
shall be given to the other party. Notwithstanding the provisions
of Code of Virginia, § 58.1-3993, when a taxpayer has demonstrated
to a court that two or more political subdivisions of Virginia have
assessed taxes on gross receipts that may create a double assessment
within the meaning of Code of Virginia, § 58.1-3986, the
court shall enter such orders pending resolution of the litigation
as may be necessary to ensure that the taxpayer is not required to
pay multiple assessments even though it is not then known which assessment
is correct and which is erroneous.
[Code 1991, § 17-167]
A.
Where, before the expiration of the time prescribed for the assessment
of any license tax imposed pursuant to this article, both the commissioner
and the taxpayer have consented in writing to its assessment after
such time, the tax may be assessed at any time prior to the expiration
of the period agreed upon. The period so agreed upon may be extended
by subsequent agreements in writing made before the expiration of
the period previously agreed upon.
B.
Notwithstanding Code of Virginia, § 58.1-3903, the commissioner
shall assess the local license tax omitted because of fraud or failure
to apply for a license for the current license year and the six preceding
license years.
C.
The period for collecting any local license tax shall not expire prior to the period specified in Code of Virginia, § 58.1-3940, two years after the date of assessment if the period for assessment has been extended pursuant to this section, two years after the final determination of an appeal for which collection has been stayed pursuant to § 70-321B or D, or two years after the final decision in a court application pursuant to Code of Virginia, § 58.1-3984, or similar law for which collection has been stayed, whichever is later.
[Code 1991, § 17-168; 2-27-2024 by Ord. No. 24-01]
A.
Any person assessed with a license tax under this article as the
result of an appealable event may file an administrative appeal of
the assessment within one year from the last day of the tax year for
which such assessment is made, or within one year from the date of
the appealable event, whichever is later, with the commissioner. The
appeal must be filed in good faith and sufficiently identify the taxpayer,
the tax periods covered by the challenged assessments, the amount
in dispute, the remedy sought, each alleged error in the assessment,
the grounds upon which the taxpayer relies, and any other facts relevant
to the taxpayer's contention. The commissioner may hold a conference
with the taxpayer, if requested by the taxpayer, or require the submission
of additional information and documents, an audit or further audit,
or other evidence deemed necessary for a proper and equitable determination
of the appeal. The assessment placed at issue shall be deemed prima
facie correct. The commissioner shall undertake a full review of the
taxpayer's claims and issue a determination to the taxpayer setting
forth the facts and arguments in support of his or her decision.
The taxpayer may at any time also file an administrative appeal
of the classification applicable to the taxpayer's business,
including whether the business properly falls within a business license
subclassification established by the City. However, the appeal of
the classification of a business shall not apply to any license year
for which the Tax Commissioner has previously issued a final determination
relating to any license fee or license tax imposed upon the taxpayer's
business for the year. In addition, any appeal of the classification
of a business shall in no way affect or change any limitations period
prescribed by law for appealing an assessment.
B.
Every assessment made by the commissioner pursuant to an appealable
event shall include or be accompanied by a written explanation of
the taxpayer's right to file an administrative appeal and the
specific procedures to be followed, the name and address to which
the appeal should be directed, an explanation of the required content
of the appeal, and the deadline for filing the appeal. These procedures
shall be posted on the City's website.
C.
Provided timely and complete administrative appeal is filed, collection
activity with respect to the amount in dispute shall be suspended
until a final determination is issued by the commissioner, unless
the commissioner determines:
D.
Any taxpayer whose administrative appeal to the commissioner has
been pending for more than one year without the issuance of a final
determination may, upon not less than 30 days' written notice
to the commissioner, elect to treat the appeal as denied and appeal
the assessment or classification of the taxpayer's business to
the Tax Commissioner as provided below. The Tax Commissioner shall
not consider an appeal filed pursuant to the provisions of this subsection
if he or she finds that the absence of a final determination on the
part of the commissioner was caused by the willful failure or refusal
of the taxpayer to provide information requested and reasonably needed
by the commissioner to make his or her determination.
E.
Any person assessed with a license tax as a result of a determination
or that has received a determination with regard to the person's
appeal of the license classification or subclassification applicable
to the person's business, that is adverse to the position asserted
by the taxpayer in such appeal may appeal within 90 days of the determination
by the commissioner to the state Tax Commissioner. The appeal shall
be in such form as the Tax Commissioner may prescribe and the taxpayer
shall serve a copy of the appeal upon the commissioner. The Tax Commissioner
shall permit the commissioner to participate in the proceedings, and
shall issue a determination to the taxpayer within 90 days of receipt
of the taxpayer's application, unless the taxpayer and the commissioner
are notified that a longer period will be required. The application
shall be treated as an application pursuant to Code of Virginia, § 58.1-1821,
and the Tax Commissioner may issue an order correcting such assessment
or correcting the license classification or subclassification pursuant
to Code of Virginia, § 58.1-1822.
F.
Upon receipt of a notice of intent to file an appeal to the Tax Commissioner under Subsection E of this section, the commissioner shall further suspend collection activity until a final determination is issued by the Tax Commissioner, unless the commissioner determines:
(i)
That collection would be jeopardized by delay;
(ii)
That the taxpayer has not responded to a request for relevant
information after a reasonable time; or
(iii)
That the appeal is frivolous. Interest shall accrue in accordance with the provisions of § 70-325, but no further penalty shall be imposed while collection action is suspended. The requirement that collection activity be suspended shall cease unless an appeal is filed and served on the necessary parties within 30 days of the service of notice of intent to file such an appeal.
G.
Promptly upon receipt of the final
determination of the Tax Commissioner with respect to an appeal, the
commissioner shall take those steps necessary to calculate the amount
of tax owed by or refund due to the taxpayer consistent with the Tax
Commissioner's determination and shall provide that information
to the taxpayer.
(1)
If the determination of the Tax Commissioner sets forth a specific
amount of tax due, the commissioner shall issue a bill to the taxpayer
for such amount due, together with interest accrued and penalty, if
any is authorized by this section, within 30 days of the date of the
determination of the Tax Commissioner.
(2)
If the determination of the Tax Commissioner sets forth a specific
amount of refund due, the commissioner shall issue a payment to the
taxpayer for such amount due, together with interest accrued pursuant
to this section, within 30 days of the date of the determination of
the Tax Commissioner.
(3)
If the determination of the Tax Commissioner does not set forth a
specific amount of tax due, or otherwise requires the commissioner
to undertake a new or revised assessment that will result in an obligation
to pay a tax that has not previously been paid in full, the commissioner
shall promptly commence the steps necessary to undertake such new
or revised assessment, and provide the same to the taxpayer within
60 days of the date of the determination of the Tax Commissioner,
or within 60 days after receipt from the taxpayer of any additional
information requested or reasonably required under the determination
of the Tax Commissioner, whichever is later. The commissioner shall
issue a bill to the taxpayer for the amount due, together with interest
accrued and penalty, if any is authorized by this section, within
30 days of the date of the new assessment.
(4)
If the determination of the Tax Commissioner does not set forth a
specific amount of refund due, or otherwise requires the commissioner
of revenue to undertake a new or revised assessment that will result
in an obligation on the part of the locality to make a refund of taxes
previously paid, the commissioner shall promptly commence the steps
necessary to undertake such new or revised assessment or to determine
the amount of refund due in the case of a correction to the license
classification or subclassification of the business, and provide the
same to the taxpayer within 60 days of the date of the determination
of the Tax Commissioner, or within 60 days after receipt from the
taxpayer of any additional information requested or reasonably required
under the determination of the Tax Commissioner, whichever is later.
The commissioner shall issue a refund to the taxpayer for the amount
of tax due, together with interest accrued, within 30 days of the
date of the new assessment or determination of the amount of the refund.
H.
The provisions of Code of Virginia, § 58.1-3703.1(7), governing
judicial review of a determination of the Tax Commissioner, as they
may be amended from time to time, are incorporated herein by reference.
I.
Any taxpayer or authorized representative may request a written ruling
regarding the application of the tax to a specific situation from
the commissioner. Any person requesting such a ruling must provide
all the relevant facts for the situation and may present a rationale
for the basis of an interpretation of the law most favorable to the
taxpayer. In addition, the taxpayer or authorized representative may
request a written ruling with regard to the classification applicable
to the taxpayer's business, including whether the business properly
falls within a business license subclassification established by the
City. Any misrepresentation or change in the applicable law or the
factual situation as presented in the ruling request shall invalidate
any such ruling issued. A written ruling may be revoked or amended
prospectively if: (i) there is a change in the law, a court decision,
or the guidelines issued by the Department of Taxation upon which
the ruling was based; or (ii) the commissioner notifies the taxpayer
of a change in the policy or interpretation upon which the ruling
was based. However, any person who acts on a written ruling which
later becomes invalid shall be deemed to have acted in good faith
during the period in which such ruling was in effect.
[Code 1991, § 17-169]
Every person who is assessable with a license tax shall keep
sufficient records to enable the commissioner to verify the correctness
of the tax paid for the license years assessable and to enable the
commissioner to ascertain what is the correct amount of tax that was
assessable for each of those years. All such records, books of accounts
and other information shall be open to inspection and examination
by the commissioner in order to allow the commissioner to establish
whether a particular receipt is directly attributable to the taxable
privilege exercised within the City. The commissioner shall provide
the taxpayer with the option to conduct the audit in the taxpayer's
local business office, if the records are maintained there. If the
records are maintained outside the City, copies of the appropriate
books and records shall be sent to the commissioner's office upon
demand.
[Code 1991, § 17-170]
A.
General rule. Gross receipts for license tax purposes shall not include
any amount not derived from the exercise of the licensed privilege
to engage in a business or profession in the ordinary course of the
business or profession.
B.
Items excluded. The following items shall be excluded from gross
receipts:
(1)
Amounts received and paid to the United States, the commonwealth,
or any county, City or town for the state retail sales or use tax,
for any local sales tax or any local excise tax on cigarettes, or
for any federal or state excise taxes on motor fuels.
(2)
Any amount representing the liquidation of a debt or conversion of
another asset to the extent that the amount is attributable to a transaction
previously taxed (e.g., the factoring of accounts receivable created
by sales which have been included in taxable receipts even though
the creation of such debt and factoring are a regular part of its
business).
(3)
Any amount representing returns and allowances granted by the business
to its customer.
(4)
Receipts which are the proceeds of a loan transaction in which the
licensee is the obligor.
(5)
Receipts representing the return of principal of a loan transaction
in which the licensee is the creditor, or the return of principal
or basis upon the sale of a capital asset.
(6)
Rebates and discounts taken or received on account of purchases by
the licensee. A rebate or other incentive offered to induce the recipient
to purchase certain goods or services from a person other than the
offeror, and which the recipient assigns to the licensee in consideration
of the sale of goods and services, shall not be considered a rebate
or discount to the licensee, but shall be included in the licensee's
gross receipts together with any handling or other fees related to
the incentive.
(7)
Withdrawals from inventory for purposes other than sale or distribution
and for which no consideration is received and the occasional sale
or exchange of assets other than inventory, whether or not a gain
or loss is recognized for federal income tax purposes.
(8)
Investment income not directly related to the privilege exercised
by a licensable business not classified as rendering financial services.
This exclusion shall apply to interest on bank accounts of the business,
and to interest, dividends, and other income derived from the investment
of its own funds in securities and other types of investments unrelated
to the licensed privilege. This exclusion shall not apply to interest,
late fees, and similar income attributable to an installment sale
or other transaction that occurred in the regular course of business.
[Code 1991, § 17-171]
The following shall be deducted from gross receipts or gross
purchases that would otherwise be taxable:
A.
Any amount paid for computer hardware and software that are sold
to a United States federal or state government entity provided that
such property was purchased within two years of the sale to such entity
by the original purchaser, who shall have been contractually obligated
at the time of purchase to resell such property to a state or federal
government entity. This deduction shall not occur until the time of
resale and shall apply to only the original cost of the property and
not to its resale price, and the deduction shall not apply to any
of the tangible personal property which was the subject of the original
resale contract if it is not resold to a state or federal government
entity in accordance with the original contract obligation.
B.
Any receipts attributable to business conducted in another state
or foreign country in which the taxpayer is liable for an income or
other tax based upon income.
[Code 1991, § 17-172; 2-27-2024 by Ord. No. 24-01]
A.
If any person remains in a business, employment, or profession after
the expiration of a license previously issued pursuant to this article
without obtaining a new license, such person shall be subject to a
penalty of 10% of the tax due. If any person begins any business,
employment, or profession without a license and continues in business
for one month, such person shall also be subject to a penalty of 10%
of the tax due.
B.
Any person who fails to pay any license tax by the due date shall
also be subject to a penalty of 10% of the tax due.
C.
Only the late filing penalty shall be imposed by the commissioner
if both the application and the payment are late; however, both penalties
may be assessed if the commissioner determines that the taxpayer has
a history of noncompliance. In the case of an assessment of additional
tax made by the commissioner, if the application and, if applicable,
the return were made in good faith and the understatement of the tax
was not due to any fraud, reckless or intentional disregard of the
law by the taxpayer, there shall be no late payment penalty assessed
with the additional tax. If any assessment of additional tax by the
commissioner is not paid within 30 days, the treasurer shall impose
a 10% late payment penalty.
D.
Notwithstanding any other provision of law to the contrary, penalties
authorized pursuant to this section shall not be imposed, or, if imposed,
shall be abated by the official who assessed them, if the failure
to file or pay was not the fault of the taxpayer. In order to demonstrate
lack of fault, the taxpayer must show that he acted responsibly and
that the failure was due to events beyond his control. For purposes
of this section:
(1)
Acted responsibly means that:
(a)
The taxpayer exercised the level of reasonable care that a prudent
person would exercise under the circumstances in determining the filing
obligations for the business; and
(b)
The taxpayer undertook significant steps to avoid or mitigate
the failure, such as requesting appropriate extensions (where applicable),
attempting to prevent a foreseeable impediment, acting to remove an
impediment once it occurred, or promptly rectifying a failure once
the impediment was removed or the failure discovered.
(2)
Events beyond the taxpayer's control include, but are not limited
to, the unavailability of records due to fire or other casualty; the
unavoidable absence (e.g., due to death or serious illness) of the
person with the sole responsibility for tax compliance; or the taxpayer's
reasonable reliance in good faith upon erroneous written information
from the commissioner, who was aware of the relevant facts relating
to the taxpayer's business when he provided the erroneous information.
E.
Interest shall be charged on any late payment of the tax from the
due date until the date paid, without regard to fault or other reason
for the late payment. Whenever an assessment of additional or omitted
tax by the commissioner is found to be erroneous, all interest and
penalty charged and collected on the amount of the assessment found
to be erroneous shall be refunded, together with interest on the refund
from the date of payment or the due date, whichever is later. Interest
shall be paid on the refund of any tax paid under this article from
the date of payment or due date, whichever is later, whether attributable
to an amended return or other reason. Interest on any refund shall
be paid at the same rate charged under Code of Virginia, § 58.1-3916.
F.
No interest shall accrue on an adjustment of estimated tax liability
to actual liability at the conclusion of a base year. No interest
shall be paid on a refund or charged on a late payment, in event of
such adjustment, provided the refund or the late payment is made not
more than 30 days from the date of the payment that created the refund,
or the due date of the tax, whichever is later.
G.
Any bill
issued by commissioner that includes, and any communication from the
commissioner that imposes, a penalty or interest shall separately
state the total amount of tax owed, the amount of any interest assessed,
and the amount of the penalty imposed.
