19930914 1993-34ORDINANCE NO. 1993-34
AN ORDINANCE AMENDING SECTION 12-1, ARTICLE I, CHAPTER 12
OF THE CODE OF THE CITY OF FAIRFAX, VIRGINIA, REGARDING THE
DEFINITION OF GROSS RECEIPTS FOR LICENSE TAX PURPOSES AND
PROVIDING CERTAIN EXCLUSIONS THEREFROM.
BE IT ORDAINED by the City Council of the City of Fairfax,
Virginia, that Section 12-1, Article I, Chapter 12 of the Code of
the City of Fairfax, Virginia, is hereby amended to read, in
pertinent part, as follows:
Sec. 12-1.
Definitions.
For the purposes of this chapter, the following words and
phrases shall have the meanings respectively ascribed to them by
this section:
Gross receipts: The gross receipts, irrespective of their
source, received from or attributable to any business, profession,
trade, occupation, vocation, calling or activity including cash,
credits, fees, commissions, brokerage charges and rentals, and
property of any kinds, nature or description from either sales made
or services rendered at any location without any deduction
therefrom on account of cost of the property sold, the cost of
materials, labor or services, rentals, royalties, taxes, interest
or discounts paid or any expense whatsoever, and shall include in
the case of merchants the amount of the sale price of supplies and
goods furnished to or used by the licensee or his family or other
person for which no charge is made or for which a charge less than
the prevailing sale price is made; provided, however, that the term
"gross receipts" with respect to manufacturers and wholesale
merchants manufacturing or dealing in articles upon which there is
levied a direct excise tax by the United States shall exclude such
excise tax payments to the United States government; provided,
further, that wholesale and retail dealers in petroleum products
on which the state levies a motor vehicle fuel tax shall exclude
such tax payments to the state from gross receipts; provided,
further, that in computing the gross receipts of licenses under
section 12-25, the licensees shall be permitted to claim as a
deduction the amount of salaries paid to any person employed by
them who is duly licensed in the same profession, under such
section.
The term "gross receipts" shall include the total gross
receipts from all sales made, services rendered or activities
conducted by any business and received through its principal place
of business or branch office located within the city, both to
persons residing within the city and to persons residing outside
the city, without regard to where the sales, services rendered or
activities conducted were actually performed.
The term "gross receipts" shall include in every instance,
regardless of whether the liable person or business is a resident
or nonresident of the city, an amount not less than that
attributable to the sales, services or activities performed or
conducted within the city, irrespective of the location in which
such gross receipts are actually or constructively received.
The term "gross receipts" shall not include dues collected by
trade, business, professional, service or civic associations or
other similar organizations.
The term "gross receipts" shall not include income which is
exempt from the federal income tax pursuant to Internal Revenue
Code Section 501(c) (6). The preceding exclusion pertaining to
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organizations which are exempt from the federal income tax pursuant
to Internal Revenue Code Section 501(c)(6) shall not exempt
unrelated business income received by those organizations which is
taxable pursuant to Internal Revenue Code Section 501(b).
The calculation of "gross receipts,, for license tax purposes
shall be on either a cash or accrual basis; provided, however, that
the basis used must coincide with the system of accounts used by
the taxpayer and the method employed by the taxpayer for federal
and state income tax purposes. For the purposes of computing tax
under this chapter, gross receipts may be reported to the nearest
one hundred dollars.
BE IT FURTHER ORDAINED that the remaining subsections of the
section hereby amended shall continue to read as previously
enacted.
This ordinance shall become effective as provided by law.
Introduced:
Public hearing:
Adopted:
July 27, 1993
September 14, 1993
September 14, 1993
Date