Except as may be otherwise provided by the laws of the Commonwealth
of Virginia, and notwithstanding any other current ordinances or resolutions
enacted by the City, whether or not compiled in the Code of the City, to the
extent of any conflict, the following provisions shall be applicable to the
levy, assessment and collection of licenses required and taxes imposed on
businesses, trades, professions and callings and upon the persons, firms and
corporations engaged therein within the City of Galax.
For the purposes of this chapter, unless otherwise required by the context,
the following terms shall have the meanings indicated:
AFFILIATED GROUP:
A.
One or more chains of includable corporations connected through stock
ownership with a common parent corporation which is an includable corporation
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
includable corporations, except the common parent corporation, is owned directly
by one or more of the other includable corporations; 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 includable corporations.
As used in this subdivision, the term "stock" does not include nonvoting stock
which is limited and preferred as to dividends. The term "includable corporation"
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 that such stock ownership is identical with
respect to each such corporation.
C.
When one or more of the includable corporations, 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.
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.
BASE YEAR
The calendar year preceding the license year, except for contractors
subject to the provisions of § 58.1-3715, Code of Virginia.
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.
CONTRACTOR
The meaning prescribed in § 58.1-3714, Subsection B, of
the Code of Virginia, as amended, whether such work is done or offered to
be done by day labor, general contract or subcontract.
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 licensable as a peddler or itinerant merchant.
FINANCIAL SERVICES:
A.
The buying, selling, handling, managing, investing and providing of
advice regarding money, credit, securities and other investments and shall
include the service for compensation by a credit agency, an investment company,
a broker or dealer in securities and commodities or a security or commodity
exchange, unless such service is otherwise provided for in this chapter.
(1)
BROKERAn agent of a buyer or a seller who buys or sells stocks, bonds, commodities or services, usually on a commission basis.
(2)
COMMODITYStaples such as wool, cotton, etc. which are traded on a commodity exchange and on which there is trading in futures.
(3)
DEALERAny 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.
(4)
SECURITYShall have the same meaning as in the Securities Act (§ 13.1-501 et seq.) of the Code of Virginia, or in similar laws of the United States regulating the sale of securities.
B.
Those engaged in rendering financial services include, but without limitation,
the following:
(1)
Buying installment receivables.
(2)
Chattel mortgage financing.
(7)
Financing accounts receivable.
(8)
Industrial loan companies.
(11)
Loan or mortgage brokers.
(12)
Loan or mortgage companies.
(13)
Safety deposit box companies.
(14)
Security and commodity brokers and services.
(16)
Working capital financing.
GROSS RECEIPTS
The whole, entire, total receipts attributable to the licensed privilege, without deduction, except as may be limited by the provisions of Chapter
37 of Title 58.1 of the Code of Virginia.
LICENSE YEAR
The calendar year for which a license is issued for the privilege
of engaging in business.
PERSONAL SERVICES
Rendering for compensation any repair, personal, business or other
services not specifically classified as "financial, real estate or professional
service" under this chapter or rendered in any other business or occupation
not specifically classified in this chapter unless exempted from local license
tax by Title 58.1 of the Code of Virginia.
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 Virginia Department of Taxation may list in the BPOL
guidelines promulgated pursuant to § 58.1-3701 of the Code of Virginia.
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 by 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 manufacturing of all goods, wares and merchandise manufactured by
any wholesaler or wholesale merchant and sold or offered for sale. Such merchant
may elect to report the gross receipts from the sale of manufactured goods,
wares and merchandise if it cannot determine 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 in this chapter, and such services include, but
are not limited to, the following:
A.
Appraisers of real estate.
B.
Escrow agents, real estate.
C.
Fiduciaries, real estate.
D.
Lessors of real property.
E.
Real estate agents, brokers and managers.
F.
Real estate selling agents.
G.
Rental agents for real estate.
RETAILER OR RETAIL MERCHANT
Any persons or merchant who sells goods, wares and 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
and industrial users.
SERVICES
Things purchased by a customer which do not have physical characteristics
or which are not goods, wares or merchandise.
WHOLESALER OR 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, government and industrial users which, because
of the quantity, price or other terms, indicate that they are consistent with
sales at wholesale.
Every person who is assessed with a license tax shall keep sufficient
records to enable the assessor to verify the correctness of the tax paid for
the license years assessable and to enable the assessor 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 assessor in order to allow the assessor
to establish whether a particular receipt is directly attributable to the
taxable privilege exercised within the City. The assessor shall provide the
taxpayer with the option to conduct the audit in the taxpayer's local
business office, if the records are maintained there. In the event the records
are maintained outside the City, copies of the appropriate books and records
shall be sent to the assessor's office upon demand.