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 Board of Supervisors of Warren
County, Virginia, whether or not compiled in the Code of this jurisdiction,
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 County
of Warren, Virginia.
For the purposes of this chapter, unless otherwise
required by the context, the following words and phrases shall have
the meanings respectively ascribed to them by this section:
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, and the term "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 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.
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. Assessment 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 Warren County, Virginia.
The calendar year preceding the license year, except for
contractors subject to the provisions of § 58.1-3715 of
the Code of Virginia, as amended. For the purpose of ascertaining
the tax to be paid by any person beginning a new business and whose
license tax shall be based on gross receipts, the licensee shall estimate
the basis for measuring the license tax between the date of issuance
of the license and the 31st day of December following. The license
tax of every person who was licensed for 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 of
the amount of gross receipts which the licensee will make through
the then current year.
An agent of a buyer or a 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: advertising
or otherwise holding oneself out to the public as being engaged in
a particular business; or filing tax returns, schedules and documents
that are required only of persons engaged in a trade or business.
"Business" shall not be deemed to include a volunteer fire department
or rescue squad, a church or religious organization, a civic or fraternal
organization, a nonprofit charitable organization or any other nonprofit
organization as defined herein; nor any other enterprise with gross
receipts or gross whole purchases (as applicable) of less than $4,000
in a calendar year.
Staples such as wool, cotton, etc., which are traded on a
commodity exchange and on which there is trading in futures.
The meaning prescribed in Virginia Code § 58.1-3714(D),
whether such work is done or offered to be done by day labor, general
contract or subcontract.
[Amended 7-15-2008]
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 licensable as a peddler or itinerant merchant.
The buying, selling, handling, managing, investing and providing
of advice regarding money, credit, securities or other investments.
Those engaged in rendering financial services include, but without
limitation, 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; stockbroker; and working capital
financing.
The whole, entire, total receipts, without deduction.
Any person who engages in, does or transacts any temporary
or transient business in Warren County, except for the sale of farm,
domestic or nursery products, and who, for the purpose of carrying
on such business, occupies any location for a period of less than
one year.
The calendar year for which a license is issued for the privilege
of engaging in business.
An organization that is, in fact, a bona fide nonprofit organization
and is prohibited from distributing its income or profits to its members
or shareholders by constitution, bylaws, charter or other means and
that is organized for the purpose of promoting or providing education,
health (care), culture, recreation or community service to the residents
of the area or any business, person, organization, itinerant merchant
or peddler who provides goods and services on a temporary basis in
direct connection with and in furtherance of a bona fide activity
of such nonprofit organization.
Any person who shall carry from place to place any goods,
wares or merchandise, except for farm, domestic or necessary products,
and contemporaneously offer to sell or barter the same or actually
contemporaneously sell or barter the same within Warren County.
Rendering for compensation any repair, personal, business
or other services not specifically classified as a 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.
The term "personal services" shall include all
the following:
REPAIR SERVICEA service rendered by a person for compensation involving the repairing, renovating, cleaning or servicing of some article or item of personal property.
PERSONAL SERVICEAny service rendered by a person for compensation, either upon or for persons, animals or personal effects.
BUSINESS SERVICEAny service rendered by a person for compensation to any business, trade, occupation or governmental agency.
Those deemed to be engaged in the business of
rendering a repair, personal or business service or other service
not otherwise defined shall include but not be limited to the following:
advertising agencies, services and representatives; airports; ambulance
services; amusements and recreation services (all types); animal hospitals,
grooming services, kennels or stables; auctioneers and common criers;
auditoriums; automobile driving schools; barbershops, beauty parlors
and hairdressing establishments, schools and services; bid or building
reporting service; billiard or pool establishments or parlors; blacksmith
or wheelwright; bondsman; bookbinder; booking agents or concert managers;
bottle exchanges; bowling alleys; brokers and commission merchants,
other than real estate or financial brokers; business research and
consulting services; chartered clubs; child-care attendants or schools;
coliseums; collection agents or agencies; commercial photography,
art and graphics; commercial sports; dance halls, studios and schools;
data processing, computer and systems development services; developing
or enlarging photographs; detective agency and protective services;
drafting services; engraver; erecting, installing, removing or storing
awnings; extermination services; freight traffic bureaus; fumigating
or disinfecting; funeral services and crematories; golf services,
driving ranges and miniature golf courses; hauling of sand, gravel
or dirt; hotels, motels, tourist courts, boardinghouses and rooming
houses and trailer parks and campsites; house cleaning services; impounding
lots; information bureaus; instructors, tutors, schools and studios
of music, ceramics, art, sewing, sports and the like; interior decorating;
janitorial services; laundry cleaning and garment services, including
laundries, dry cleaners, linen supply, diaper service, coin-operated
laundries and carpet and upholstery cleaning; mailing, messenger and
correspondent services; marinas and boat landings; movie theaters
and drive-in theaters; nickel plating, chromizing and electroplating;
nurse and physician registries; nursing and personal care facilities,
including nursing homes, convalescent homes, homes for the retarded,
old age homes and rest homes; packing, crating, shipping, hauling
or moving goods or chattels for others; parcel delivery services;
parking lots, public garages and valet parking; pawnbrokers; personnel
supply services, labor agents and employment bureaus; photographers
and photographic services; piano tuning; picture framing and gilding;
porter services; press clipping services; private hospitals; promotional
agents or agencies; public address systems; public relations services;
realty multiple listing services; renting, leasing or servicing billboards;
renting or leasing any items of tangible personal property; reproduction
services; royalty and franchise firm; secretarial services; septic
tank cleaning; shoe repair, shoeshine and hat repair shops; sign painting;
storage, all types; swimming pool maintenance and management; tabulation
services; taxidermist; telephone answering services; theaters; theatrical
performers, bands and orchestras; towing services; trade associations;
transportation services, including buses and taxis; travel bureaus;
tree surgeons, trimmers and removal services; Turkish, Roman or other
like baths or parlors; wake-up services; and washing, cleaning or
polishing automobiles.
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 Virginia Code §§ 58.1-3700.1 and 58.1-3701.
A "professional service" shall include a service rendered by a person
for compensation 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
servicing their interests or welfare in the practice of an art or
science founded upon it. Those deemed to be engaged in rendering personal
services shall include but not be limited to the following: accountants;
architects; attorneys-at-law; certified public accountants; dentists;
engineers; land surveyors; pharmacists; surgeons; veterinarians; and
practitioners of the healing arts (the art or science or group of
arts or sciences dealing with the prevention, diagnosis, treatment
and cure or alleviation of human physical or mental ailments, conditions,
diseases, pain or infirmities) as defined in §§ 54.1-2900
through 54.1-2901 of the Code of Virginia, or its successor law.
[Amended 7-15-2008]
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.
Providing a service with respect to the purchase, sale, lease,
rental or appraisal of real property. Unless the service is otherwise
specifically provided for in this chapter, such services include,
but are not limited to, the following: appraisers of real estate;
escrow agents, real estate; fiduciaries, real estate; lessors of real
property; operators of residential mobile home units; real estate
agents, brokers and managers; real estate selling agents; rental agents
for real estate; title abstractors; and those engaged in subdividing
real property into lots, including cemetery lots, and developing or
using such lots for resale on their own account or for others
Any person 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. The term includes,
but is not limited to, the following: aircraft or aircraft parts;
antiques; auto accessories, tire and batteries; automobile sales and
motor vehicle dealers; bakeries and caterers; bicycles; boats and
motors therefor; books and stationery; building materials; candy or
nut stores; cigar or tobacco stands and newsstands; clothing not specified
elsewhere; confectioneries; custom tailors; dairy products; delicatessens;
department stores; draperies, curtains and upholstery; drugs; dry
goods stores; eggs and poultry; family clothing; farm equipment; filling
stations; fish and seafood markets; floor covering; florists; fruit
stores and vegetable markets; fuel, including bottles gas; furniture;
furriers; garden supplies; general stores; gifts, novelties and souvenirs;
groceries; hardware; heating, plumbing and electrical equipment; hog
feed, grain and seed; hosiery; ice; jewelry; livestock dealers; luggage;
lumber goods; meat markets; mens and boys clothing; millinery; motorcycles;
musical instruments; office and store appliance supply; optical goods
and supplies; paint, glass and wallpaper; photographic supplies and
equipment; radio, television or household appliances; restaurants,
eating places and night clubs; scientific and medical supplies; secondhand
stores; shoes; soda fountains; sporting goods; used cars; variety
stores; workmen's clothing; and other retail stores and retail merchants.
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.
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 sale to institutional, commercial and industrial
users which because of the quantity, price or other terms indicate
that they are consistent with sales at wholesale. The term wholesaler
or wholesale merchant shall include, but not be limited to, the following:
automotive parts and supplies; chemicals; clothing and furnishings;
coal and coke; commission merchants who take title (others are classed
as brokers); drugs; dry goods; electrical and plumbing goods; farm
products or supplies; furniture and house furnishings; groceries and
foods; hardware; jewelry; lumber, paint and construction materials;
machinery, equipment and supplies; metals and metal work; other goods,
wares and merchandise; paper and paper products; petroleum and petroleum
products; seafood; soft drinks; sporting goods; tobacco and tobacco
products, except leaf tobacco; waste materials; and other wholesale
merchants.
[Amended 8-17-2010]
A.Â
Requirements.
Every person shall apply for a license for each business, trade, profession,
occupation or calling (collectively hereinafter "a business"), unless
otherwise exempted by law, when engaging in a business in the County
of Warren if the person has a definite place of business in this jurisdiction;
there is no definite place of business anywhere and the person resides
in this jurisdiction; or there is no definite place of business in
this jurisdiction but the person operates amusement machines or is
classified as an itinerant merchant, peddler, carnival or circus,
as specified in §§ 58.1-3717, -3718 or -3728, respectively,
of the Code of Virginia, a contractor subject to Virginia Code § 58.1-3715
or is a public service corporation. A separate license shall be required
for each definite place of business and 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:
each business or profession is subject to licensure at the location
and has satisfied any requirements imposed by state law or other provisions
of the ordinances of the County of Warren; 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 the taxpayer agrees to supply such information
as the assessor may require concerning the nature of the several businesses
and their gross receipts.
[Amended 1-17-2017]
B.Â
Prerequisite
for contractors obtaining a business license. Any contractor applying
for or renewing a business license in any locality in accordance with
Chapter 37 of Title 58 shall furnish prior to the issuance or renewal
of such license either:
C.Â
Prerequisite
for architects or engineers obtaining a business license. Any architect
or professional engineer applying for or renewing a business license
in Warren County shall furnish prior to the issuance or renewal of
such license either:
D.Â
No business
license shall be issued or renewed until the applicant has paid all
delinquent business license, personal property, meals, and transient
occupancy taxes owed by the business to Warren County.
[Added 1-17-2017[1]]
[1]
Editor’s Note: This ordinance also provided an effective
date of 7-1-2017.
A.Â
Each person subject to a license tax shall apply for
a license prior to beginning business if he was not subject to licensure
in this jurisdiction on or before January 1 of the license year, or
no later than March 1 of the license year if he has been issued a
license for the preceding year. The application shall be on forms
prescribed by the assessing official.
B.Â
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 1; or 30 days after beginning business; or such installment payment dates as the assessing official may establish for reasonable cause, interest shall accrue in accordance with the provisions of Subsection E of this section.
C.Â
The assessing official may grant an extension of time
in which to file an application for a license, for reasonable cause.
The extension may be conditioned upon the timely payment of a reasonable
estimate of the appropriate tax; the tax is then 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,
with a penalty of 10% of the portion paid after the due date.
D.Â
A penalty of 10% of the tax may be imposed upon the
failure to file an application or the failure to pay the tax by the
appropriate due date. Only the late filing penalty shall be imposed
by the assessing official if both the application and payment are
late; however, both penalties may be assessed if the assessing official
determines that the taxpayer has a history of noncompliance. In the
case of an assessment of additional tax made by the assessing official,
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 tax by the assessing official is not paid within
30 days, the Treasurer or Finance Director may impose a ten-percent
late payment penalty. If the failure to file or pay was not the fault
of the taxpayer, the penalties shall not be imposed or, if imposed,
shall be abated by the official who assessed them. 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.
(1)Â
"Acted responsibly" means that 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 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 and promptly rectifying
a failure once the impediment was removed or the failure discovered.
(2)Â
"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 assessing official who was aware of the relevant
facts relating to the taxpayer's business when he provided the erroneous
information.
E.Â
Interest shall be charged on the 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 assessing official 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 license tax,
assessed pursuant to this chapter, 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 Virginia Code § 58.1-3916. 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, provided that 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.
A.Â
General rule. Whenever the tax imposed by this chapter
is measured by gross receipts, the gross receipts included in the
taxable measure shall be only those gross receipts attributed to the
exercise of a privilege subject to licensure at a definite place of
business within the County of Warren. 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:
(1)Â
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 Virginia Code § 58.1-3715;
(2)Â
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 wholesaler 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 Virginia Department of Taxation
for a determination as to the proper measure of purchases and gross
receipts subject to license tax in each locality;
(3)Â
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 to the definite
place of business at which the rental of such property is managed;
and
(4)Â
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.
B.Â
Apportionment. 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, 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 this jurisdiction
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.
C.Â
Agreements. The Assessor may enter into agreements
with any other political subdivision of Virginia concerning the manner
in which gross receipts shall be apportioned among definite places
of business. However, the sum of the gross receipts apportioned by
the agreement shall not exceed the total gross receipts attributable
to all of the definite places of business affected by the agreement.
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 Assessor shall make a good faith effort
to reach an apportionment agreement with the other political subdivisions
involved. If an agreement cannot be reached, either the Assessor or
taxpayer may seek an advisory opinion from the Virginia Department
of Taxation pursuant to Virginia Code § 58.1-3701; notice
of the request shall be given to the other party. Notwithstanding
the provisions of Virginia Code § 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 Virginia Code § 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.
A.Â
Limitations and extensions.
(1)Â
Where, before the expiration of the time prescribed
for the assessment of any license tax imposed pursuant to this chapter,
both the assessing official 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.
(2)Â
Notwithstanding Virginia Code § 58.1-3903,
the assessing official 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.
(3)Â
The period for collecting any local license tax shall not expire prior to the period specified in Virginia Code § 58.1-3940, two years after the date of assessment if the period for assessment has been extended pursuant to this subsection of thie chapter, two years after the final determination of an appeal for which collection has been stayed pursuant to Subsection B(2) or (4) of § 117-6 of this chapter, or two years after the final decision in a court application pursuant to Virginia Code § 58.1-3984 or similar law for which collection has been stayed, whichever is later.
B.Â
Appeals and rulings.
(1)Â
Any person assessed with a local license tax as a
result of an audit may apply within 90 days from the date of such
assessment to the Assessor for a correction of the assessment. The
application must be filed in good faith and sufficiently identify
the taxpayer, audit period, 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 Assessor may hold
a conference with the taxpayer if requested by the taxpayer or require
submission of additional information and documents, a further audit
or other evidence deemed necessary for a proper and equitable determination
of the application. The assessment shall be deemed prima facie correct.
The Assessor shall undertake a full review of the taxpayer's claims
and issue a determination to the taxpayer setting forth its position.
Every assessment pursuant to an audit shall be accompanied by a written
explanation of the taxpayer's right to seek correction and the specific
procedure to be followed (e.g., the name and address to which an application
should be directed).
(2)Â
Provided that a complete application is made within 90 days of an assessment, collection activity shall be suspended until a final determination is issued by the Assessor, unless the Assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of Subsection E of § 117-4, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" includes a finding that the application is frivolous or that a taxpayer desires to depart quickly from the locality; remove his property therefrom; conceal himself or his property therein; or do any other act tending to prejudice, or to render wholly or partially ineffectual, proceedings to collect the tax for the period in question.
(3)Â
Any person assessed with a license tax, pursuant to this chapter, as a result of an audit may apply within 90 days of the determination by the assessing official on an application pursuant to Subsection B(1) of § 117-6 to the Virginia Tax Commissioner for a correction of such assessment. The Virginia Tax Commissioner shall issue a determination to the taxpayer within 90 days of receipt of the taxpayer's application, unless the taxpayer and the assessing official are notified that a longer period will be required. The application shall be treated as an application pursuant to Virginia Code § 58.1-1821, and the Virginia Tax Commissioner may issue an order correcting such assessment pursuant to Virginia Code § 58.1-1822. Following such an order, either the taxpayer or the assessing official may apply to the appropriate circuit court pursuant to Virginia Code § 58.1-3984. However, the burden shall be on the party making the application to show that the ruling of the Virginia Tax Commissioner is erroneous. Neither the Virginia Tax Commissioner nor the Virginia Department of Taxation shall be made a party to an application to correct an assessment merely because the Virginia Tax Commissioner has ruled on it.
(4)Â
On receipt of a notice of intent to file an appeal to the Virginia Tax Commissioner under Subsection B(3) of § 117-6, the assessing official shall further suspend collection activity until a final determination is issued by the Virginia Tax Commissioner, unless the Assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of Subsection E of § 117-4, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" shall have the same meaning as set forth in Subsection B(2) of § 117-6 above.
(5)Â
Any taxpayer may request a written ruling regarding
the application of a license tax to a specific situation from the
Assessor. 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.
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 there is a change in the law, a court decision or the guidelines
issued by the Virginia Department of Taxation upon which the ruling
was based or the Assessor 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.
C.Â
Recordkeeping and audits. Every person who is assessable
with a local 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 this jurisdiction.
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 that the records are maintained
outside this jurisdiction, copies of the appropriate books and records
shall be sent to the Assessor's office upon demand.
A.Â
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 business or profession.
B.Â
The following items shall be excluded from gross receipts:
(1)Â
Amounts received and paid to the United States, the
Commonwealth or any county, city or town for the Virginia 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)Â
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)Â
Any amount representing returns and allowances granted
by the business to its customer.
(4)Â
Receipts which are the proceeds of a loan transaction
in which the licensee is the obligor.
(5)Â
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)Â
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)Â
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)Â
Investment income not directly related to the privilege
exercised by a business subject to licensure 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.
C.Â
The following shall be deducted from gross receipts
or gross purchases that would otherwise be taxable:
(1)Â
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 said 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.
(2)Â
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.
A.Â
March 1
of the calendar year is adopted as the due date for license applications.
[Amended 7-17-2018]
B.Â
The provisions
of this section relating to penalties, interest and administrative
and judicial review of an assessment shall be applicable to assessments
made on and after January 1, 1997, even if for an earlier license
year. The provisions relating to agreements extending the period for
assessing tax shall be effective for agreements entered into on and
after July 1, 1996. The provisions permitting an assessment of license
tax for up to six preceding years in certain circumstances shall not
be construed to permit the assessment of tax for a license year beginning
before January 1, 1997.
C.Â
When a
license tax is based on gross receipts, a taxpayer who permanently
ceases to engage in business within the County before the end of the
license year shall be entitled upon application to a refund for that
portion of the license tax already paid, prorated on a monthly basis,
for the months the taxpayer ceased to engage in business within the
County. There shall be no refund of a license tax based on a flat
fee or minimum flat tax when the license year is less than 12 months.
[Added 7-17-2018]
A.Â
Any person who shall refuse to permit the assessing
official or his authorized agent to examine and audit his or its records,
books and papers pertaining to the gross receipts of such person shall
be guilty of a Class 3 misdemeanor.
B.Â
Any person who shall fail to appear before the proper
enforcement officer of the county and produce his records, books and
papers pertinent to license tax assessments, when duly summoned, or
shall refuse to permit such proper enforcement officer to make or
cause to be made such other and further investigation and audit of
such books and papers shall be guilty of a Class 3 misdemeanor.
Any person doing business at more than one place,
stall or stand shall be required to take out a separate license for
each place, stall or stand; and each place, stall or stand shall constitute
a separate and distinct place of business and shall pay a license
tax as provided for under this chapter; except that any persons prosecuting
a business in more than one definite place of business and keeping
one set of records for the accumulated transactions may take out a
minimum license on each location other than the main place of business
and may enter as a deductible item on an application for license for
the main branch of business the amount of sales for which a license
or licenses have been issued for any other place or places of business.
A.Â
Every person required to pay a license tax under the
provisions of this chapter shall keep the license in a convenient
place and, whenever required to do so, shall exhibit the same to any
member of the Sheriff's Office when detailed or authorized to inspect
such license or to the Commissioner of Revenue or his deputy. Any
person violating the provisions of this section shall be guilty of
a misdemeanor and fined not to exceed $25.
B.Â
The Commissioner of Revenue shall, upon payment of
the license tax under the provisions of this chapter, issue in addition
to such license a decal, sticker or other adhesive label not less
than two inches by four inches in size, clearly denoting the licensee's
name and that the license tax has been paid. Such decal, sticker or
other adhesive label showing issuance of a license under this chapter
shall be displayed in a conspicuous place at the regular place of
business or profession of the licensee in order that the Assessor
or his authorized agent or any law enforcement officer may inspect
the same at any and all reasonable times. All licensees who have or
maintain no regular place of business shall either carry with them
on their person or have affixed or attached to their truck, car or
other vehicle the license or certificate and promptly displace the
same when called upon by any law enforcement officer to do so. Failure
of such person to obtain such decal, sticker or other adhesive label
shall be considered a failure to obtain a license and shall be punishable
as failure to obtain a license as heretofore set forth in this chapter.
A.Â
Licenses issued under this chapter shall be transferable,
but in no case shall any transfer of the license be legal or valid
unless and until notice, in writing, of such transfer shall have been
given to the Commissioner of Revenue and he shall have approved said
transfer, in writing, on the license; and such notice shall state
the time of the transfer and the place of the business and the name
of the person to whom transferred.
B.Â
Only that part of a license based on gross receipts,
that is, in excess of gross receipts of the transferor for that part
of the year he has prosecuted business under such license, shall be
transferable. The person to whom such license is being transferred
shall pay the additional estimated license to the end of the license
year, or an amount sufficient to make the minimum cost of license
as provided in this chapter, whichever is the greater.
C.Â
The Commissioner of Revenue shall keep a record of
such transfers. Any person transferring or attempting to transfer
any license contrary to the provisions of this section shall be fined
not less than $10 nor more than $50.
A.Â
Should any officer of the county charged in any manner
with the duty of assessing or collecting license taxes have reason
to believe, in any case, that the amount of actual or probable sales,
or any other matters that may be pertinent to the assessment of such
license tax, has been incorrectly reported or returned, he shall make
a report thereof to the Commissioner of Revenue. Thereupon, or in
any case in which the Commissioner of Revenue shall deem it advisable,
he shall investigate and ascertain whether such person has made a
correct return, and, to that end, the Commissioner of Revenue is authorized
and empowered to summon such person before him and require the production
of any and all of his records, books and papers likely to throw any
light upon the matter under investigation and shall also be authorized
and empowered to make or cause to be made such other and further investigations,
examinations and audits of the records and papers of such person as
he shall deem proper and in order to accurately determine the proper
return to be made by such person.
B.Â
If it shall appear that such sales or other matters
pertinent to said assessment have been incorrectly reported or returned,
the Commissioner of Revenue shall assess such person with the proper
county license tax.
C.Â
If it shall appear that such sales or other matters
pertinent to said assessment have been willfully incorrectly reported
or returned, such person shall pay, in addition to such increased
license tax assessed, a penalty of 50% of such increased assessment.
Any incorrect report of return shall be deemed prima facie willful.
D.Â
Any person who shall fail to appear before the Commissioner
of Revenue and produce such records, books and papers when duly summoned
or who shall refuse to permit the Commissioner of Revenue to make
or cause to be made such other and further investigation and audit
of said books and papers shall, upon conviction thereof, be guilty
of a Class 3 misdemeanor. Each day's failure by the taxpayer to abide
by this subsection shall constitute a separate offense.
If any person subject to the payment of a license
tax required under this chapter should willfully fail or refuse to
file the statements, applications or returns at the time or times
required herein or should make false statements with intent to defraud
in such statements, applications or returns, he shall, upon conviction,
be punished by a penalty prescribed by general law for a Class 3 misdemeanor
if the amount of the tax lawfully assessed in connection with the
statement, application or return is $1,000 or less or a Class 1 misdemeanor
if the amount of the tax lawfully assessed in connection with the
statement, application or return is more than $1,000.
A.Â
Nothing contained in this chapter shall be construed
to repeal any tax imposed by any other ordinance of the county upon
motor vehicles, personal property, admissions, charges for utility
services or any subject not herein mentioned, unless otherwise specified.
B.Â
Nothing contained in this chapter shall be construed
as imposing any license tax on any business or on any part thereof
on which the county is prohibited by federal or state law from imposing
the same.
A.Â
As one of the means of ascertaining the amount of
any license tax, the assessing official may propound interrogatories
of an applicant for a license under this chapter and may use such
other evidence as he may procure. Such interrogatories shall be answered
under oath.
The assessing official shall not issue, under the provisions of this chapter, a license for conducting any business, trade or occupation at a location where the conduct of such business, trade or occupation at such location is prohibited by Chapter 180, relative to zoning.
If a business, trade, profession, occupation
or calling for which a license is required is one which can be granted
only on the certificate of a court or other official, or the granting
of a permit, then such license shall not be valid or effective until
such certificate or permit shall be obtained. It is the responsibility
of the person applying for such license to determine if any such certificate
or permit is otherwise required by law.
Gross receipts of real estate brokers for license
tax purposes, under Chapter 37 (§ 58.1-3700 et seq.) of
Title 58.1 of the Code of Virginia and this chapter, shall not include
amounts received by any broker which arise from real estate sales
transactions to the extent that such amounts are paid to a real estate
agent as a commission on any real estate sales transaction and the
agent is subject to the business license tax on such receipts. The
broker claiming the exclusion shall identify on its license application
each agent to whom the excluded receipts have been paid and the jurisdiction
in the Commonwealth of Virginia to which the agent is subject to business
license taxes.
[Amended 3-4-1997]
A.Â
No license fee or license tax shall be imposed or
levied on any of the businesses or persons listed in § 58.1-3703(C)
of the Code of Virginia, 1950, as amended, or its successor statute.
B.Â
Neither an affiliated distributor nor the operation
of an affiliated distribution facility shall be included in the term
"wholesale merchant," and both shall be exempt from taxation under
this chapter. "Affiliated distributor" shall mean a person (including
a corporation) operating an affiliated distribution facility. An "affiliated
distribution facility" shall mean a corporation's facility which receives
goods, wares or merchandise solely as a result of purchasing or other
corporate operations outside of Warren County and which in turn distributes,
transfers or sells such goods, wares or merchandise solely to either
that corporation's retail stores or to other members of its affiliated
group of corporations as described in Virginia Code §§ 58.1-3700.1
and 58.1-3703C.10.
Any person conducting a business, profession,
trade, calling or occupation or doing other things for which a license
tax is required under this chapter without first having obtained the
requisite license or without having obtained any tag or sign required
under this chapter shall be guilty of a misdemeanor. Such conviction
shall not relieve any such person from the payment of any license
tax imposed by this chapter.
