[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:
AFFILIATED GROUP
A. 
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:
(1) 
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
(2) 
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.
B. 
Two or more corporations if five or fewer persons who are individuals, estates or trusts own stock possessing:
(1) 
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
(2) 
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.
C. 
Two or more entities if such entities satisfy the requirements in Subsection A or B of this definition as if they were corporations and the ownership interests therein were stock.
APPEALABLE EVENT
A. 
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.
B. 
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.
ASSESSMENT
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.
ASSESSOR
The Commissioner of the Revenue of the City.
BASE YEAR
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.
BROKER
An agent of a buyer or seller who buys or sells stocks, bonds, commodities, or services, usually on a commission basis.
BUSINESS
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:
A. 
Advertising or otherwise holding oneself out to the public as being engaged in a particular business; or
B. 
Filing tax returns, schedules and documents that are required only of persons engaged in a trade or business.
COMMISSIONER
The Commissioner of the Revenue for the City.
COMMODITY
Staples such as wool, cotton, etc., which are traded on a commodity exchange and on which there is trading in futures.
CONTRACTOR
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.
DEALER
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.
DEFINITE PLACE OF 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.
ENTITY
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.
FINANCIAL SERVICES
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:
A. 
Buying installment receivables.
B. 
Chattel mortgage financing.
C. 
Consumer financing.
D. 
Credit card services.
E. 
Credit unions.
F. 
Factors.
G. 
Financing accounts receivable.
H. 
Industrial loan companies.
I. 
Installment financing.
J. 
Inventory financing.
K. 
Loan or mortgage brokers.
L. 
Loan or mortgage companies.
M. 
Safety deposit box companies.
N. 
Security and commodity brokers and services.
O. 
Stockbrokers.
P. 
Working capital financing.
FRIVOLOUS
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.
GROSS RECEIPTS
The whole, entire, total receipts attributable to the licensed privilege, without deduction, except as may be otherwise provided under this article.
JEOPARDIZED BY DELAY
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.
LICENSE YEAR
The calendar year for which a license is issued for the privilege of engaging in business.
PERSONAL SERVICES
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.
PROFESSIONAL SERVICES
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.
PURCHASES
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.
REAL ESTATE SERVICES
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:
A. 
Appraisers of real estate.
B. 
Escrow agents, real estate.
C. 
Real estate fiduciaries.
D. 
Lessors of real property.
E. 
Real estate agents, brokers and managers.
F. 
Real estate selling agents.
G. 
Rental agents for real estate.
RETAILER and RETAIL MERCHANT
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.
SECURITY
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.
SERVICES
Things purchased by a customer which do not have physical characteristics, or which are not goods, wares, or merchandise.
WHOLESALER and WHOLESALE MERCHANT
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:
(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.
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.