HomeMy Public PortalAbout1996_12_11_O032 BPOL TaxThe Town of
Leesburg,
Virginia
PRESENTED December 11, 1996
ORDINANCE NO. 9 6- 0- 3 2
ADOPTED December 11, 1996
AN ORDINANCE:
TO RECODIFY ALL OF ARTICLE II, CHAPTER 17, LICENSES,
EFFECTIVE JANUARY 1, 1997, INTO A NEW ARTICLE VIII OF
CHAPTER 17 OF THE LEESBURG TOWN CODE, RELATING TO THE
BUSINESS, PROFESSIONAL, AND OCCUPATIONAL LICENSE TAX
An Ordinance to amend the Leesburg Town Code by recodifying Sections 17-19 through 17-94
into new sections numbered 17-161 through 17-213, relating to the imposition and administration of the
business, professional, and occupational license tax as is required under Chapter 720 of the 1996 Acts of
the General Assembly of the Commonwealth of Virginia.
Be it ordained by the Town Council of the Town of Leesburg, Virginia that Sections 17-19
through 17-94 of the Town Code are recodified as Sections 17-161 through 17-213 as follows:
Uniform BPOL Ordinance
Sec. 17-161. Overriding Conflicting Ordinances.
Except as may be otherwise provided by the laws of the Commonwealth of Virginia, and
notwithstanding any other current ordinances or resolutions enacted by this governing body, whether or
not compiled in the Code of the Town of Leesburg, 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 town.
Sec. 17-162. Definitions.
For the purposes of this A~icle, unless othet~vise required by the context:
"Affiliated group" means:
(a) One or more chains of includable corporations connected through stock ownership with
a common parent corporation which is an includable corporation if:
(i) Stock possessing at least eighty percent of the voting power of all classes of stock
and at least eighty percent of each class of the non-voting stock of each of the includable corporations;
except the common parent corporation is owned directly by one or more of the other includable
cmq)orations; and
ORDINANCE- BPOL
-2-
(ii) The common parent corporation directly owns stock possessing at least eighty
percent of the voting power of all classes of stock and at least eigh _ty percent of each class of the
non-voting stock of at least one of the other includable corporations. As used in this subdivision,
the term "stock" does not include non-voting 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 ov 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:
At least eigh .ty percent of the total combined voting power of all classes of
stock entitled to vote or at least eigh _ty percent of the total value of shares of all classes of the stock
of each corporation, and
(ii) More than fifty percent of the total combined voting power of all classes of
stock entitled to vote or more than fifty percent 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 subdivision shall refer to the
nonstock corporation membership or membership voting rights, as is appropriate to the context.
"Assessment" means 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
director 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 the director when a written notice of
assessment is delivered to the taxpayer by the director or an employee of the director, 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 this article 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" or "assessing official" means the Director of Finance of the Town of
Leesburg.
"Base year" means the calendar year preceding the license year, except for contractors
subject to the provisions of §58.1-3715 or for a different period of measuring the gross receipts of
a business such as for beginning businesses filing estimated license applications pursuant to §17-197
of this article.
ORDINANCE- BPOL
-3-
"Business" means 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, q-!,e tbllowing acts shall create a rebuttable presumption that a person
is engaged in a business: (i) advertising or otherwise holding oneself out to the public as being
engaged in a particular business; or (ii) filing tax returns, schedules and documents that are required
only of persons engaged in a trade or business.
"Calendar yea~" means the period beginning on January_ 1 of each year and ending
December 31 of each year.
"Contractor" shall have the meaning prescribed in §58.1-3714.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" means an office or a location at which occurs a regular
and continuous course of dealing for thirty 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 n.qt licensable as a peddler or itinerant merchant.
"Financial services" means 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 article.
"Broker" shall mean an agent of a buyer or a seller who buys or sells stocks,bonds,
commodities, or services, usually on a commission basis.
"Director" shall mean the Director of Finance of the Town of Leesburg.
"Commodity" shall mean staples such as wool, cotton, etc. which are traded on a
commodity exchange and on which there is trading in futures.
"Dealer" for purposes of this article shall mean 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.
"Security" for purposes of this article shall 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.
ORDINANCE- BPOL
-4-
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
Factor,.
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
Working capital financing
"Gross receipts" means 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" means the calendar year for which a license is issued for the privilege
of engaging in busim~, s.
"Personal services" shall mean rendering for compensation 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 in this
article unless exempted from local license tax by Title 58.1 of the Code of Virginia.
The term "persons or individuals" shall be construed to include corporations or
businesses to which a license is issued.
"Professional services" means services pertbrmed 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 identi .fy 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
ORDINANCE- BPOL
-5-
them, and in serving their interests or welfare in the practice of an art or science founded on it. The
word "profession" iml'.fies attainments in professional knowledge as distinguished from mere skill,
and the application of knowledge to uses for others rather than for personal profit.
"Purchases" shall mean 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 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" shall mean 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 article, and such services include, but are not limited to the following:
Appraisers of real estate
Escrow agents, real estate
Fiduciaries, real estate
Lessor,, of real property
Real estate agents, brokers and managers
Real estate selling agents
Rental agents for real estate
"Retailer" or "Retail Merchant" shall mean 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.
"Services" shall mean things purchased by a customer which do not have physical
characteristics, or which are not goods, wares, or merchandise.
"Wholesaler" or "Wholesale Merchant" shall mean 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 quanti _ty, price, or
other terms indicate that they are consistent with sales at wholesale.
Sec. 17-163. License Requirement.
(a) Every_ person engaging in the town in any business, trade, profession, occupation or
calling (collectively hereinafter "a business") as defined in this article, unless otherwise exempted by
law, shall apply for a license for each such business if (i) such person maintains a definite place of
business in the Town of Leesburg, (ii) such person does not maintain a definite office anywhere but
does maintain an abode in the Town of Leesburg, which abode for the purposes of this article shall
ORDINANCE- BPOL
-6-
be deemed a definite place of business, or (iii) 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 §58.1-3717, 3718, or 3728, respectively of the Code of Virginia, or is a contractor subject
to §58.1-3715 of the Code of Virginia, or is a public service corporation subject to §58.1-3731 of the
Code of Virginia. A separate license shall be required for each definite place of 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: (i) each business or profession is licensable at the location and has satisfied any
requirements imposed by state law or other provisions of the articles of the Town of Leesburg; (.ii)
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 (iii)
the taxpayer agrees t(, supply such information as the assessor may require concerning the nature
of the several businesses and their gross receipts.
(b) Each person subject to a license tax shall apply for a license prior to beginning
business if he was not subject to licensing in the town 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. The application shall be on forms prescribed by the Director of Finance.
~ 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 April 15 of each year.
(d) The Director of Finance 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 pena.l _ty of ten percent of the portion paid after the due date.
(e) A penalty of ten percent 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 penal _ty
shall be imposed by the Director of Finance if both the application and payment are late; however,
both penalties may be assessed if the Director of Finance determines that the taxpayer has a history_
of non-compliance. In the case of an assessment of additional tax made by the Director of Finance,
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
Director of Finance is not paid within thirty days the Director of Finance may impose a ten percent
late payment penalty. The penalties 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.
ORDINANCE - BPOL
-7-
"Acted responsibly" means that: (i) 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 (ii) 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 recti _fying a failure
once the impediment was removed or the failure discovered.
"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 Director of Finance, who was aware of
the relevant facts relating to the taxpayer's business when he provided the erroneous information.
L-Q Interest at the rate of ten percent per annum 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 Director 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 §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, in
event of such adjustment, provided the refund or the late payment is made not more than thirty days
from (i) the date of the payment that created the refund, or (ii) the due date of the tax whichever
is later.
Sec. 17-164. Situs of Gross Receipts.
(a) General rule. Whenever the tax imposed by this article 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 licensable privilege at a definite place of business within the town. 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:
~ 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 §58.1-3715 of the Code of Virginia.
ORDINANCE - BPOL
-8-
L~I 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 subiect 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.
3L~ The gross receipts of a business renting tangible personal proper _ty 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.
~ 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 the definite place of business from which the services are directed or
controlled.
(b) 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 and the affected iurisdictions are unable to reach an
apportioned agreement except as to circumstances set tbrth in §58.1-3709 of the Code of Virginia,
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 iurisdiction
shall not be attributed to the town solely because the other iurisdiction does not impose a tax on
the gross receipts attributable to the definite place of business in such other jurisdiction.
Lc) Agreements. The Director 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 Director
shall make a good faith effort to reach an apportionment agreement with the other political
subdivisions involved.
ORDINANCE- BPOL
-9-
Sec. 17-165. Limitations and extensions.
(a) Where, before the expiration of the time prescribed for the assessment of any license
tax imposed pursuant to this article, both the Director 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 §58.1-3903 of the Code of Virginia, the Director 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 years.
Lq.l The period for collecting any local license tax shall not expire prior to the period
specified in §58.1-3940 of the Code of Virginia, two years after the date of assessment if the
period for assessment has been extended pursuant to this subdivision, two years after the final
determination of an appeal for which collection has been stayed pursuant to the following subsection
17-166(b) or 17-166(d) of this article, or two years after the final decision in a court application
pursuant to §58.1-3984 of the Code of Virginia or similar law for which collection has been stayed,
whichever is later.
Sec. 17-166. Appeals and Rulings.
(a) Any person assessed with a licensing tax under this article as the result of any audit
may apply within 90 days from the date of the assessment to the Director for a correction of the
assessment. The apphcation must be filed in good faith and sufficiently identi _fy 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 Director may hold a
conference with the taxpayer if requested by the taxpayer, or require submission of additional
information and documents, further audit, or other evidence deemed necessary_ for a proper and
equitable determination of the applications. The assessment shall be deemed prima facie correct.
The Director 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 in the jurisdiction (e.g., the name and address to which an application should be directed).
b~l Provided an application is made within 90 days of an assessment, collection activi _ty
shall be suspended until a final determination is issued by the Director, unless the Director
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 17-163(f) of this article, 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 (i) to depart quickly from the town, (ii) to remove
his property therefrom, (iii) to conceal himself or his property therein, or (iv) to do any other act
ORDINANCE- BPOL
-10-
tending to prejudice, or to render wholly or partially ineffectual, proceedings to collect the tax for
the period in question.
Any person assessed with a license tax under this article as a result of an audit may
apply within nine _ty days of the determination by the Director on an application pursuant to
subsection 17-166(a) above to the Tax Commissioner for a correction of such assessment. The Tax
Commissioner shall issue a determination to the taxpayer within ninety 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 §58.1-1821 of the
Code of Virginia, awl the Tax Commissioner may issue an order correcting such assessment
pursuant to §58.1-1822 of the Code of Virginia. Following such an order, either the taxpayer or the
Director may apply to the appropriate circuit court pursuant to §58.1-3984 of the Code of Virginia.
However, the burden shall be on the party making the application to show that the ruling of the Tax
Commissioner is erroneous. Neither the Tax Commissioner nor the Department of Taxation shall
be made a party to an application to correct an assessment merely because the Tax Commissioner
has ruled on it.
(d) On receipt of a notice of intent to file an appeal to the Tax Commissioner under
subsection 17-166(c) above, the Director shall further suspend collection activity until a final
determination is issued by the Tax Commissioner, unless the Director 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
subjection 17-163(f), 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 17-166(b)
above.
LC_} Any t~xpayer may request a written ruling regarding the application of the tax to a
specific situation from the Director. 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 (i) there is a change in the law, a court decision,
or (ii) the Director 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.
Sec. 17-167. Recordkeeping and audits.
Every_ person who is assessable with a license tax shall keep sufficient records to enable the
Director to veri .fy the correctness of the tax paid for the license years assessable and to enable the
Director 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 Director in order to allow the Director to establish whether a particular receipt
is directly attributable to the taxable privilege exercised within the town. The Director shall provide
ORDINANCE ~ BPOL
-11-
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 town, copies of
the appropriate books and records shall be sent to the assessor's office upon demand.
Sec. 17-168. Exclusions and deductions from "gross receipts".
~ 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) The following items shall be excluded from gross receipts:
~ Amounts received and paid to the United States, the Commonwealth or any
county, city or town for the Virginia retail sales or use tax, or for any local sales tax or any local
excise tax on cigarettes, for any federal or state excise taxes on motor fuels.
~.l 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 oe such debt and factoring are a regular part of its business).
its customer.
Any amount representing returns and allowances granted by the business to
is the obligor.
Receipts which are the proceeds of a loan transaction in which the licensee
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.
~ 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.
~.l 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
ORDINANCE - BPOL
-12-
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.
(b) The following shall be deducted from gross receipts or gross purchases that would
otherwise be taxable:
(1) 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) 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.
Sec. 17-169. License Fee and Tax.
Every person or business subject to licensure under this article shall be assessed and required
to pay annually:
(a) A fee for the issuance of such license in the amount of $20.00; and
(b) In addition to the license fee specified in subsection (a) above, and except as may
be otherwise provided in §58.1-3712, 58.1-3712.1 and 58.1-3713 of the Code of Virginia, every such
person or business shall be assessed and required to pay annually a license tax on all the gross
receipts of such persons includable as provided in this article at a rate set forth below for the class
of enterprise listed:
Sec. 17-170. Unspecified businesses, trades and occupations.
On every person engaged in a business, trade or occupation not specifically enumerated in
the following sections of this article, who is subject to a license tax under the laws of the state, there
shall be assessed by the Director the same license as is assessed by the state.
-13-
ORDINANCE - BPOL
Sec. 17-171. Alcoholic beverages.
~ Every_ person who shall engage in the business of manufacturing, bottling, wholesaling
or retailing alcoholic beverages shall obtain a license therefore and shall pay the license tax
hereinafter provided:
1L~ Distiller's license. For each distiller's license, $500.00 per annum;
provided that, no license shall be required of any distiller manufacturing not
more than 5,000 gallons of alcohol or spirits or both during such license year.
(4)
(5)
(6)
Winery_ license. For each winery_ license, $500.00 per annum.
Brewery_ license. For each brewery_ license, $500.00 per annum.
Bottler's license. For each bottler's license, $200.00 per annum.
Wholesale beer license. For each wholesale beer license, $25.00 per
annum.
Wholesale wine distributor's license. For each wholesale wine
(7)
(8)
(9)
distributor's license, $25.00 per annum.
Retail on-premises wine and beer license for hotel, motel, restaurant
or club. For each retail on-premises wine and beer license for a hotel, motel,
restaurant or club, $37.50 per annum.
Retail off-premises wine and beer license. For each retail off-premises
wine and beer license, $37.50 per annum.
Retail on-premises beer license for hotel, motel, restaurant or club.
For each retail on-premises beer license for a hotel, motel, restaurant or club,
$25.00 per annum.
Banquet license. For each banquet license, $5.00 per day.
Fruit distiller's license. For each fruit distiller's license, $100.00 per
annum.
ORDINANCE- BPOL
-14-
.1(.!_~ Mixed beverage license. Any person in the town who holds
a mixed beverage restaurant license from the state shall obtain
from the town a mixed beverage license and pay the following
license tax:
~ Persons operating restaurants, including restaurants located
on the premises of, and operated by, hotels or motels:
1_ $200.00 per annum for each restaurant with a seating
capacity at tables for 50 to 100 persons.
2_ $350.00 per annum for each restaurant with a seating
capacity at tables for more than 100 but not more than 150
persons.
3_. $500.00 per annum for each restaurant with a seating
capacity at tables for more than 150 persons.
A private, non-profit club operating a restaurant located on
the premises of such club, $350.00 per annum.
(b) The aforesaid licenses shall be as respectively defined by the act of the
General Assembly, as herebefore and hereafter amended, known as "The Alcoholic Beverage
Control Act," and the terms "alcoholic beverages, .... alcohol, .... spirits," "beer" and "wine" wherever
used in this section shall have the meaning respectively ascribed to them by such act.
~ No license shall be issued under this section to any person unless such person
shall hold or secure simultaneously therewith the proper state license required by The Alcoholic
Beverage Control Act, which state license shall be exhibited to the Director of Finance, and all
dining rooms, restaurants, lunchrooms and club-rooms wherein the beverages herein defined are sold
for consumption on tire premises shall at all times be open to inspection to the state police and the
police authorities of the town. Any violation of the terms of this provision shall be sufficient
grounds for the revocation of the license issued in accordance with this article.
Sec. 17-172. Amusements-Generally.
In addition to any other amusement tax that may be imposed by the town, every_ person
conducting, operating or engaging regularly in any of the following businesses, trades or occupations
in the town shall pay an annual license tax of $0.25 per $100 of gross receipts in such business, trade
or occupation for the preceding calendar year:
1LLI Amusement park.
ORDINANCE - BPOL
-15-
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
Amusement rides.
Arcade or building dedicated to general amusement or entertaining.
Billiards or pool.
Bowling alley.
Drive-in theaters.
Golf courses.
Golf driving range.
Miniature golf.
Movie theaters.
Parks, athletic fields.
Rifle range, shooting gallery_.
Skating rink.
Tennis courts.
Theaters.
Other amusements and entertainments.
Sec. 17-173. Same-coin operated amusement machines.
Any operator, as defined in §58.1-3720 of the Code of Virginia, selling, leasing, renting or
otherwise furnishing or providing a coin-operated machine or device for amusement shall pay an
annual license tax of $100.00 on five or less machines, $150.00 on six to nine machines and $200.00
on ten or more machines, plus $0.10 per $100 on the gross receipts actually received from all such
coin-operated machines or devices.
Sec. 17-174. Builders and developers.
Any person conducting any of the businesses, trades or occupations under this article, in
connection with the improvement or development for sale or rent of any property or structure
owned or leased by or otherwise in the control of such builder and developer, shall pay an annual
license tax of $0.10 for each $100 of gross receipts on the business done within the town.
Sec. 17-175. Building and loan associations; savings and loan associations.
(a) Every building and loan association or savings and loan association having a
principal office in the town shall pay an annual license tax of $50.00.
(b) A building and loan association or savings and loan association which does
business on a purely mutual plan, and makes loans only to its stockholders, organized in the town
and confining its business solely to the town and surrounding political subdivisions, shall pay a
license tax of $25.00.
ORDINANCE- BPOL
-16-
Lc~ A building and loan association or savings and loan association or company
organized under the laws of a state other than Virginia shall pay the license tax herein imposed
upon the capital invested in the town.
Sec. 17-176. Business service occupations.
Every person conducting, operating or engaging in any of the following businesses, trades
or occupations in the town shall pay an annual license tax of $0.20 per $100 of gross receipts in such
business, trade or occupation for the preceding calendar year:
(2)
(3)
(4)
(6)
(7)
(8)
(9)
(10)
(~)
(12)
(13)
(14)
06)
(17)
08)
(19)
(20)
(2~)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
(29)
(30)
(3~)
(32)
(33)
Actuary. -
Advertising agent, firm.
Airports.
Appraiser, evaluator of real estate for others for compensation.
Artist representative.
Assayer.
Auto damage appraisal service.
Bid or building reporting service.
Blueprinter.
Book binder.
Bookeeper.
Consultant, business.
Consultant, computer hardware, software or systems.
Collection agent or agency_.
Commission merchant.
Counselor, family or marriage.
Data processing, computer service.
Dental laboratories.
Drafting service.
Employment agent or agency.
Erecting, installing, removing or storing awnings.
Freight traffic bureau or agency.
Hauling or transfer, not in connection with a taxicab business.
Impounding lot.
Investment advisory service.
Job printing, printing shops, duplicating processes.
Landscape designer.
Laundry, cleaning, pressing, dyeing establishment.
Leasing of automobiles, trucks, and trailers.
Leasing films for compensation.
Letter writing.
Livery. stables.
Marine or salvage work.
-17-
ORDINANCE- BPOL
(34)
05)
(36)
(37)
(38)
(39)
(40)
(41)
(42)
(43)
(44)
(45)
(46)
(47)
(48)
(49)
(50)
(51)
(52)
(53)
(54)
(55)
(56)
(57)
(58)
(59)
(60)
(61)
(62)
(63)
(64)
(65)
(66)
(67)
(68)
(69)
(70)
(71)
Manufacturer's agent.
Motion picture film producers, laboratories.
Nickel plating or chromiumizing.
Operating analytical or engineering laboratories.
Packing, crating, shipping, hauling or moving goods or chattels for others.
Parking lots.
Photogrammetric engineering.
Photostater.
Plating metals or other materials.
Private detectives.
Promotional agents or agency_.
Protective agent or agency_.
Public garage.
Public relations counselor.
Real estate brokers.
Realty multiple listing service.
Recorder of court proceedings.
Renting or leasing airplanes.
Renting or leasing bicycles.
Riding schools.
Royalty and/or franchise firm.
Surveyor
Septic tank cleaning.
Sign painting, window lettering, vehicle lettering.
Storage, all types.
Swimming pool maintenance and management.
Tabulating service.
Tax consultant.
Title, abstract company.
Towel, linen, coat, apron, uniform laundering service, including the leasing
thereof.
Travel bureau.
Towing services.
Trade associations.
Tree surgery, trimming, removal.
U-drive-it firm, business.
Vehicular advertising, electric advertising, business advertising, commercial
advertising.
Washing, cleaning, polishing automobiles.
Other business service occupations.
ORDINANCE- BPOL
-18-
Sec. 17-177. Contractors and contracting.
Every_ person conducting or engaging in any of the following contracting occupations,
businesses or trades i:, the town shall pay an annual license tax of $0.10 per $100 of gross receipts
in such business trade or occupation for the preceding calendar year:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(lO)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
08)
(19)
Air conditioning.
Brick contracting, stone and other masonry_.
Building.
Carpenters.
Cement.
Dredging, sand and gravel.
Electrical.
Floor scraping or finishing.
Foundations.
Paint and paper decorating.
Plastering.
Plumbing, heating, steam fitting or gas fitting.
Road, street,bridge, sidewalk or curb and gutter.
Roofing.
Sewer drilling and well digging.
Structural metal.
Tile, glass, flooring and floor covering.
Wrecking, moving or excavating.
Other contractors and contracting.
Sec. 17-178. Heat, light, power and gas companies.
All persons furnishing heat, light, power and gas for domestic, commercial and industrial
consumption in the town shall pay for the privilege an annual license tax equal to $0.50 per $100
of the gross receipts of such business derived from within the town during the preceding calendar
or fiscal year.
Sec. 17-179. Hotels, motels, motor lodges, auto courts, tourist courts, lodging houses,
rooming houses and boarding houses.
Every person operating a hotel, motel, motor lodge, auto court, tourist court, lodging house,
rooming house and boarding house, renting in excess of two bedrooms, shall pa'/an annual license
tax of $0.23 for each $100.00 of gross receipts of the preceding calendar year.
Sec. 17-180. Merchants placing vending machines.
(a) Every_ person engaged in the business of selling goods, wares and merchandise
through the use of coin-operated vending machines in the town, shall be classified as a retail
ORDINANCE- BPOL
-19-
merchant on that phase or part of the business done through such machines, and shall pay an annual
license tax for the privilege of doing business in this town of $0.10 per $100 of gross receipts.
(b) The term, "engaged in the business of selling goods, wares and merchandise
through the use of coin-operated vending machines," as used in this section, shall be construed to
include the use of such machines by a soft drink manufacturer or bottler and a manufacturer or
packager of nuts, candy and sandwiches who leases, rents or otherwise furnishes vending machines
to his customers for their use in selling at retail soft drinks or packaged nuts, candy or sandwiches,
as well as a soft drink manufacturer or bottler or a manufacturer or packager of nuts, candy and
sandwiches who himself sells his products at retail through the use of such machines.
Lq~ Every_ soft drink manufacturer or bottler and manufacturer or packager of
nuts, candy and sandwiches quali _fying under this section as a merchant placing vending machines
shall report, at retail s :lling prices, all sales made through such vending machines, and shall pay the
tax thereon, under this article, accordingly. A soft drink manufacturer or bottler and a manufacturer
or packager of nuts, candy and sandwiches qualifying under this section shall be deemed to have
qualified as to all vending machines placed and in any way serviced by him, whether the sales at
retail through the use of such machines are made by the manufacturer, packager or bottler himself
or by his customers.
(d) Regularly licensed retail merchants paying a retail merchant's license tax on
their sales at retail shall not be required to have any separate vending machine license on such coin-
operated machines which are located on the premises of their place of business.
Sec. 17-181. Money lenders.
(a) Every person who operates under the applicable laws and regulations and
conducts or engages in any of the following money lending occupations, businesses or trades, shall
pay an annual license tax of $0.16 per $100.00 of gross receipts of the preceding calendar year:
(10)
(11)
A factor.
An industrial loan company.
A loan or mortgage broker.
A loan or mortgage company.
A money lender.
Buying installments receivable.
Chattel mortgage financing.
Consumer financing.
Financing accounts receivable.
Installment financing.
Inventory financing.
(b) This section shall not apply to a building and loan association or a savings and
loan association licensed under §17-175.
ORDINANCE- BPOL
-20-
Sec. 17-182. Peddlers and itinerant vendors.
Every_ person conducting, operating or engaging in the business of itinerant merchant or
peddler shall pay an annual license tax of $250.00. An "itinerant vendor" is defined as a person, firm
or corporation who engages in any temporary_ or transient business, either within the town or passing
through town, who fo.r the purpose of carrying on such business shall hire, lease, use or occupy any
building or structure or any street, alley or other public place within the town for a period of less
than one year.
A "peddler" is defined as any person who shall carry_ from place to place any goods, wares
or merchandise and offer to sell or barter the same, or actually sell or barter the same.
Sec. 17-183. Personal service occupations.
Every_ person conducting, operating or engaging in any of the following businesses, trades
or occupations in the town shall pay an annual license tax of $0.20 per $100 of gross receipts in such
business, trade or occupation for the preceding calendar year:
The business of operating:
Barber shops.
Beau _ty parlors.
Cemeteries (except non-profit).
Chartered clubs.
Convalescent homes (except non-profit corporations).
Hair dressing establishments.
Information bureaus, booths.
Nursing homes (except non-profit corporations).
Private hospitals (except non-profit corporations).
Turkish, roman or other like bath or bath parlor.
(b) The business of:
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
00)
Addressing letters or envelopes.
Auctioneering.
Babysitting and child-care service.
Bottle exchange.
Cleaning windows, shades, chimneys, furnaces.
Clinical laboratory.
Common criers.
Correspondent establishment or bureau.
Dance, music, ceramic, art, sewing instruction or tutoring.
Day nursery (other than foster homes).
Dental laboratory.
-21-
ORDINANCE - BPOL
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
(29)
(30)
(31)
(32)
(33)
(34)
(35)
(36)
(37)
(38)
(39)
(40)
(41)
(42)
(43)
(44)
Exterminating rats, vermin, termites, etc.
Famigating or disinfecting.
Funeral directors, services.
Furnishing ambulance service.
Furnishing clean diapers.
Furnishing house-cleaning services.
Furnishing janitor service.
Furnishing labor service.
Furnishing messenger service, except telephone or telegraph messenger
service.
Furnishing statistical service.
Interior decorating.
Interior decorating service and/or consultant.
Kennels, dog and cat.
Lawn development and maintenance.
Nurses registry..
Operating reducing salons, health clubs.
Operating scalp treating establishment.
Photographer.
Physicians registry_.
Piano tuning.
Picture framing, gilding.
Press clipping service.
Private school (other than religious, non-profit).
Renting any kind of tangible personal property.
Renting or furnishing automatic washing.
Sale of money orders.
Secretarial service.
Small animal grooming.
Taxidermists.
Telephone answering service.
Vehicle title service.
Wake-up service.
Other personal service occupations.
Sec. 17-184. Professional, specialized occupations and businesses.
Every_ person conducting or engaging in any of the following professional, specialized
occupations and businesses in the town shall pay an annual license tax of $0.20 per $100 of gross
receipts in such occupation for the preceding calendar year:
(1) Anatomists.
(2) Archeologists.
(3) Architects.
ORDINANCE- BPOL
-22-
(4)
(6)
(7)
(8)
9~
(10)
(11)
(12)
(13)
(14)
(15)
(16)
07)
(18)
(19)
(20)
(21)
(22)
(23)
Attorneys-at-law.
Biologists.
Botanists.
Certified public accountants.
Chemists.
Dentists.
Economists.
Engineers.
Geologists.
Historians.
Land surveyors.
Mathematicians.
Metallurgists.
Meteorologists.
Morticians.
Physicists.
Surgeons.
Veterinarians.
Practitioners of the healing arts (the arts and sciences dealing with
the prevention, diagnosis, treatment and cure of alleviation of human
physical or mental ailments, conditions, diseases, pain or infirmities),
including pharmacists and occupational and physical therapists;
chiropractors; dieticians; and such occupations as listed herein, and
no others.
Zoologists.
Sec. 17-185. Professional corporations.
Any person conducting or engaging in a professional specialized business and calling itself
a professional corporation according to the Code of Virginia, §13.1-543, shall pay a license tax for
each stockholder as a professional in such corporation, or on the gross receipts of the entire
professional corporation, as provided in §17-184.
Sec. 17-186. Repair service occupations.
Every. person conducting, operating or engaging in any of the following businesses, trades
or occupations in the town shall pay an annual license tax of $0.15 per $100 of gross receipts in such
business, trade or occupation for the preceding calendar year:
(1)
(2)
(3)
(4)
Airplane repair.
Auto repair, engine repairs of any type.
Bicycle repair.
Business and office machine repair.
ORDINANCE - BPOL
-23-
(5)
(6)
(7)
(8)
(9)
(lO)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
Clothes, hats, carpets or rugs, repair of.
Dress making, slip covers, drapery_ and/or curtain making.
_Furniture, upholstery_, repair of.
Gunsmith, gun repairing.
Industrial, commercial machinery_.
Lawnmowers.
Locksmith and lock repairing.
Machine shop, boiler shop.
Mattresses, repair of.
Paint shop, other than contractor.
Radio, television, refrigerators, electrical appliances, home appliances,
repair of.
Reweaving.
Road machinery, farm machinery_, repair of.
Saw, tools, repair of.
Scales, repair of.
Shades, repair of.
Shoes, repair of.
Tire, repair of.
Toys, repair of.
Typewriters, repair of.
Umbrellas, harness, leather goods, repair of.
Watches, clocks, repair of.
Welding shop.
Other repair service occupations.
Sec. 17-187. Retail merchants.
Every_ person conducting, operating or engaging, as a retail merchant, in any of the following
businesses, trades or occupations in the municipality shall pay an annual license tax of $0.10 per
$100 of gross receipts in such business, trade or occupation for the preceding calendar year:
3~
(10)
(11)
Aircraft or aircraft parts.
Antiques.
Automobile, accessory, tire, battery_.
Auto sales, motor vehicle dealers.
Bakeries, caterers.
Reserved.
Bicycles.
Boats, motors.
Books, stationery_.
Building materials.
Candy, nut store.
-24-
ORDINANCE - BPOL
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(2,4)
(25)
(26)
(27)
(28)
(29)
(3o)
(31)
(32)
(33)
(34)
(35)
(36)
(37)
(38)
(39)
(40)
(41)
(42)
(43)
(44)
(45)
(46)
(47)
(48)
(49)
(50)
(51)
(52)
(53)
(54)
(55)
Cigar, tobacco stands, newsstands.
Cleaning equipment, supplies.
Clothing, any and all.
Confectionery_.
Custom tailor.
Dairy products.
Delicatessen.
Department stores.
Drapery_, custom upholstery_.
Drug stores.
Dry_ goods stores.
Eggs, poultry_.
Export and import firms.
Farm equipment.
Filling stations.
Fish, seafood market.
Floor covering.
Florists.
Fruit stores, vegetable markets.
Fuel.
Furniture.
Furriers.
Garden supplies.
General stores.
Gift, novelty, souvenir.
Grocery..
Hardware.
Heating, plumbing, electrical equipment.
Hog, grain, feed, seed.
Hosiery.
Ice.
Reserved.
Jewelry..
Livestock dealer.
Luggage.
Lumber goods.
Machinery_ and equipment.
Meat market.
Men's and boy's clothing.
Millinery.
Motorcycles.
Musical instruments.
Office, store, appliance supply.
Optical.
ORDINANCE- BPOL
-25 -
(56)
(57)
(58)
(59)
(60)
(62)
(63)
(64)
(65)
(66)
(67)
(68)
(69)
(70)
Paint, glass, wallpaper
Pawnbrokers.
Reserved.
Photographic, supply, equipment.
Radio or household appliances.
Restaurants.
Scientific, medical supplies.
Secondhand stores, other than junk.
Shoes.
Soda fountain.
Sporting goods.
Used cars.
Variety stores.
Workmen's clothing.
Other retail stores and retail merchants.
Sec. 17-188. Telephone companies.
All persons engaged in the business of providing telephonic communications in the
municipality shall pay for the privilege an annual license tax equal to $0.50 per $100 of the gross
receipts during the preceding year from local telephone exchange service, including flat rate service
and message rate se~,,ice.
Sec. 17-189. Wholesale merchants.
Excepting those who pay a merchants' capital tax, the proceeds of which are received by the
town, every person conducting, operating or engaging, as a wholesale merchant, in any of the
following businesses, trades or occupations shall pay an annual license tax equal to $0.075 per $100
of the gross receipts in such business, trade or occupation for the preceding calendar year:
(lO)
(11)
(12)
(13)
(14)
Automotive.
Chemicals.
Clothing, furnishings.
Coal, coke.
Commission merchants (who take title, others classed as brokers).
Drugs.
Dry goods.
Electrical, plumbing goods.
Farm products or supplies.
Furniture and house furnishings.
Groceries and foods.
Hardware.
Jewelry.
Lumber, paint and construction materials.
ORDINANCE - BPOL
-26-
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
Machinery_, equipment and supplies.
Metals and metalwork.
Paper and paper products.
Petroleum and petroleum products.
Sandwiches.
Seafood.
Soft drinks.
Sporting goods.
Tobacco and tobacco products, except leaf tobacco.
Waste materials.
Other wholesale merchants.
Sec. 17-190. Massage therapy locations.
Any person conducting, operating or engaging in business as a massage technician at a
massage therapy location, as defined in §11-62 of the Town Code, shall pay an annual license tax
of $0.20 per $100 of gross receipts, per location.
Sec. 17-191. Cable television companies.
Every_ person engaged in the business of providing cable television service within the town
shall pay an annual flat rate license tax of $25.00.
Sec. 17-192. Procedure for amending article.
The Council may, from time to time, after public hearing thereon, amend any section,
paragraph, phrase or other part of this article or may add any specific type of business to the _types
shown in the various classifications in this article, or may transfer a specific _type of business from
one classification to another.
Sec. 17-193. Responsibili_ty for enforcement of article.
The Director of Finance shall be responsible for the enforcement of the provisions of this
article.
Sec. 17-194. Violations of article.
Any person or business found guilty of violating any provision of this article, or any written
order of the town, in pursuance thereof, shall be deemed guilty of a Class I misdemeanor. Each day
upon which a violation of the provisions of this ordinance shall occur shall be deemed a separate
and additional violation for the purposes of this article.
ORDINANCE- BPOL
-27-
Sec. 17-195. General requirements.
(a) It shall be unlawful and constitute a misdemeanor for any person to conduct a
business, or to engage in a p_rofession, trade or occupation within the municipali _ty, without first
procuring a license as required under the provisions of this article.
(b) Every iicense granted under this article shall be the same as defined in Title 58.1 of
the Code of Virginia, as far as applicable. Such licenses shall confer the same privileges and shall
be subject to the same conditions and limitations as provided in such title, as applicable to similar
licenses in the state.
Sec. 17-196. Calculation of gross receipts.
The calculation of gross receipts, for the purposes of this article, shall be on either a cash
or accrual basis, determined by the accounting system of the taxpayer.
Sec. 17-197. Estimate of gross receipts for beginners.
(a) Every person beginning a business, profession, trade or occupation, which is subject
to a license tax based in whole or in part on gross receipts shall estimate the amount of gross
receipts that will be received from the date of the beginning of the business through the end of the
current calendar year (December 31st).
(b) Whenever a license tax is computed on the estimated gross receipts any erroneous
estimate shall be subizct to correction; and the Director of Finance shall assess such person after
the end of that license year with any additional license tax determined to be due. Also, he shall, at
the same time, correct the estimate for the then current year until a full year of operation shall have
been completed. In case of an overestimation, the taxpayer shall be entitled to a refund of the
amount of tax in excess of his assessed liability. The refund shall be computed according to the
formula set forth in §17-163.
Sec. 17-198. Responsibility for obtaining license, assessment of tax and penalty in the event
of intentional or fraudulent evasion.
L~ Each business, profession, trade or occupation required by the provisions of this
article to purchase a license for the privilege of doing business within the town shall be responsible
for obtaining such license. Failure of such business, profession, trade or occupation to purchase the
required license can be considered as prima facie evidence of an intent to evade the payment of the
license taxes imposed by this article.
bL~ If the Director of Finance shall ascertain that any person has fraudulently or
intentionally evaded ~he payment of the proper license taxes, or failed or refused to obtain the
proper license, as required by the provisions of this article, for the current license tax year or any
one or more of the three (3) immediately past license tax years for license tax years prior to January_
ORDINANCE- BPOL
-28-
1, 1997, and beginning January_ 1, 1997, and later for any of the six (6) immediately past license tax
years for any one or more of the six (6) immediately past license tax years, he shall assess such
license taxes, with interest computed at the rate of ten percent per annum from the date on which
such license tax first became due, for the current license tax year and each of the three immediately
past license tax years for which such tax and interest are assessable, together with an additional
penal _t¥ of fifty_ percent on such unpaid license tax for the license tax years prior to January_ 1, 1997,
and beginning January 1, 1997, and later for the current license tax year and each of the six
immediately past license tax years for which such tax and interest are assessable, together with an
additional penal .ty of fifty, percent on such unpaid license tax.
Sec. 17-199. Assessment of tax in cases of nonfraudulent failure to pay tax.
If the Director of Finance ascertains that any person has not been assessed a license tax
applicable under this article for the current license tax year, or any one or more of the three (3)
immediately past license tax years for license tax years prior to January 1, 1997, and beginning
January 1, 1997, and later for any one or more of the six (6) immediately past license tax years, and
the absence of such assessment is not due to the fraudulent or intentional intent to evade the taxes
on the part of such person, it shall be the du_ty of the Director to assess such person with the proper
license tax, without penal _ty, for any of the three (3) immediately preceding license tax years omitted
prior to January 1, 1997, or six (6) immediately preceding license tax years omitted for the years
beginning January 1, 1997, and later. He shall assess such proper license tax for the current license
tax _year and add thereto the penalties set forth in this article.
Sec. 17-200. Proration of tax.
Every fiat-rate license, except as otherwise specifically provided,for the unexpired portion of
a license tax year shall be charged on a pro rata basis from the first day of the month in which the
license is issued. In no case shall proration reduce the cost of the license below the minimum tax
as prescribed by this article.
Sec. 17-201. Computation of tax.
The Director of Finance shall compute the amount of the license tax to be paid by each
applicant for a license under this article.
Sec. 17-202. Assessment of additional tax.
Whenever the Director of Finance shall ascertain that any person shall be assessed with any
additional license tax pursuant to the provisions of this article, it shall be his du_ty to assess such
person, in writing, by registered or certified mail, return receipt requested, with such additional
license tax as may be due. If such additional assessment shall be paid within 30 days from the date
such person shall have received notice of the additional assessment, no penalty, shall accrue. If such
additional assessment shall not be paid within such 30 days, interest at the rate of ten percent per
annum shall accrue thereon, from the date of the additional assessment until the time of payment.
ORDINANCE- BPOL
-29-
Sec. 17-203. Discharge of tax liability of corporate officers, partners and employees.
When a business, trade or occupation taxed under this article is conducted by a corporation
or partnership, excepting therefrom a professional corporation as defined in the Code of Virginia,
the license tax shall be imposed upon the gross receipts of the corporation or partnership and paid
by it. When so paid, and also when paid by an individual employing persons who otherwise would
be required to obtain a license, it shall be deemed to discharge the license tax liability of the officers
or partners of such corporation or partnership and of such persons employed who otherwise would
be liable for such tax, insofar as the licensed business is concerned.
Sec. 17-204. Issuance generally.
After full payment of the license tax imposed by this article has been received by the
Director of Finance, and there has been successful fulfillment of all other requirements provided
in this article, the license shall be issued.
Sec. 17-205. Deposit prerequisite to licensing of itinerant amusement.
Any person applying for any itinerant amusement license under this article shall, in addition
to the regular license application requirements, be required to deposit the sum of three hundred
($300.00) with the Director of Finance before the license is issued.
Sec. 17-206. Compliance with zoning regulations, prerequisite to issuance; noncompliance
as grounds for revocation.
The Director of Finance shall not issue a license for conducting any business, profession,
trade or occupation at a location where the conduct of such business, profession, trade or occupation
is prohibited by the zening regulations of the town. All such licenses shall be subiect to verification
to ascertain compliance with the zoning regulations. Failure to comply shall be iust cause for
immediate revocation by the Director of Finance.
Sec. 17-207. License to be personal privilege; suspension.
Every license issued under this article shall be deemed to confer a personal privilege to
transact, carry on or conduct the business, profession, trade or occupation in the town, and such
privilege shall not be exercised except by the person licensed. If it is determined that such individual
to whom the license has been issued shall have transferred such license, except as hereinafter
authorized, or if the Director of Finance has cause to believe that such person is otherwise abusing
the privilege for which the license was issued, the Director may suspend such license. Such
suspension shall remain in effect until the causes are removed. The Director shall report any such
suspension to the Council at its next regular business meeting after the effective date of the
suspension.
ORDINANCE- BPOL
-30-
Sec. 17-208. Display or carrying of license.
(a) The license form or sign issued to show payment of the license taxes imposed by any
section of this article shall be displayed in a conspicuous place at the regular place of business of
the licensee and shall be produced by the licensee on the request of any authorized enforcement
officer of the town.
(b) Any licensee who maintains no regular place of business shall carry, on or about his
person, the license form or sign issued to show payment of the license tax, which license form shall
be produced by the licensee on request of any authorized enforcement officer of the town.
L~ No license measured by volume of business shall be required to be displayed publicly.
Sec. 17-209. Transfer of license.
Licenses may not be transferred from one person or enti _ty to another. Licenses may be
transferred from one location to another~ provided, that no such transfer shall be valid unless and
until notice in writing is provided to the Director, which notice shall contain the name, trade name,
if any, and the proposed new location, if any, as well as the time of the proposed transfer. The
Director may approve the transfer upon being satisfied of the good faith thereof. Failure to noti _fy
the Director of Finance of the transfer of the license within thirty (30) days of such transfer shall
invalidate such license.
Sec. 17-210. Severabili _ty.
If any section, phase, or part of this article should for any reason be held invalid by a court
of competent jurisdiction, such decision shall not affect the remainder of the article, and every
remaining section, clause, phase or part thereof shall continue in full force and effect.
ORDINANCE- BPOL
-31-
Sec. 17-211. Payment of delinquent taxes as prerequisite to issuance of license.
In accordance with §58.1-3700 of the Code of Virginia, as amended, the Director shall not
grant any license to any person until such person shall have paid and, when required by the Director,
produced satisfactory_ evidence of payment of all delinquent business license, personal property,
meals and transient occupan~ taxes which that person owes to the town.
This ordinance shall be effective January 1, 1997.
PASSED this llth day of December ., 1996.
· Clem, Mayor
Leesburg
ATTEST:
Clerk of Council
O:BPOL