19961126 1996-18 ORDINANCE NO. 1996 - 18
AN ORDINANCE AMENDING CHAPTER 12 OF THE CODE
OF THE CITY OF FAIRFAX, VIRGINIA CONCERNING LICENSES
1. BE IT ORDAINED by the City Council of the City of Fairfax,
Virginia, that Chapter 12 of the Code of the City of Fairfax,
Virginia is hereby amended to read, in its entirety, as follows:
Chapter 12
LICENSES
Article I. In General
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:
Affiliated group. "Affiliated group" means:
(a) One or more chains of corporations subject to inclusion
connected through stock ownership with a common parent corporation
which is a corporation subject to inclusion if:
(1) stock possessing at least eighty percent of the
voting power of all classes of stock and at least eighty percent of
each class of the nonvoting stock of each of the corporations
subject to inclusion, except the common parent corporation, is
owned directly by one or more of the other corporations subject to
inclusion; and
(2) the common parent corporation directly owns stock
possessing at least eighty percent of the voting power of all
classes of stock and at least eighty percent of each class of the
nonvoting stock of at least one of the other subject to inclusion
corporations. As used in this subdivision, the term "stock" does
not include nonvoting stock which is limited and preferred as to
dividends; the phrase "corporation subject to inclusion,, means any
corporation within the affiliated group irrespective of the state
or country of its incorporation; and the term "receipts" includes
gross receipts and gross income.
(b) Two or more corporations if five or fewer persons who are
individuals, estates or trusts own stock possessing:
(1) at least eighty percent of the total combined voting
power of all classes of stock entitled to vote or at least eighty
percent of the total value of shares of all classes of the stock of
each corporation; and
(2) more than fifty percent of the total combined voting
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.
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When one or more of the corporations subject to inclusion,
including the common parent corporation is a nonstock corporation,
the term "stock" as used in this subdivision shall refer to the
nonstock corporation membership or membership voting rights, as is
appropriate to the context.
Amusement operator. "Amusement operator', means any person,
leasing, renting or otherwise furnishing or providing a coin-
operated amusement machine in the city; however, the term
"amusement operator,' shall not include a person owning less than
three such machines and operating such machines on property owned
or leased by such person.
Assessment. "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 commissioner of the revenue 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 commissioner of the revenue when a written notice of
assessment is delivered to the taxpayer by the commissioner of the
revenue or an employee of the commissioner of the revenue, or
mailed to the taxpayer at his last known address. Self-assessments
shall be deemed made when a return is filed, or if no return is
required, when the tax is paid. A return filed or tax paid before
the last day prescribed by ordinance for the filing or payment
thereof shall be deemed to be filed or paid on the last day
specified for the filing of a return or the payment of tax, as the
case may be.
Base year. "Base year" means the calendar year immediately
preceding the license year, except for contractors subject to the
provisions of section 58.1-3715 of the Code of Virginia.
Bondsman. "Bondsman" means any person who shall, for
compensation, enter into any bond or bonds for others, whether as
a principal or surety.
Business. "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.
The following acts shall create a rebuttable presumption that a
person is engaged in a business: (a) advertising or otherwise
holding oneself out to the public as being engaged in a particular
business or (b) filing tax returns, schedules and documents that
are required only of persons engaged in a trade or business.
Business service. "Business service" means any service
rendered for compensation to any business, trade, occupation or
governmental agency, unless the service is specifically provided
for under another section of this chapter.
City. "City" or "city" means the City of Fairfax, Virginia.
Carnival. "Carnival" means an aggregation of shows,
amusements, concessions, eating places and riding devices or any of
them, operated together on one lot or street or on contiguous lots
or streets, moving from place to place, whether or not the same are
owned and actually operated by separate persons, firms or
corporations. The term includes, but is not limited to, sideshows,
dog and pony shows, trained animal shows, circuses and menageries.
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Commission merchant. "Commission merchant,, means any person
engaged in the business of selling merchandise on commission by
sample, circular, or catalogue for a regularly established
retailer, who has no stock or inventory under his control other
than floor samples held for demonstration or sale and owned by the
principal retailer. For purposes of this chapter, a commission
merchant is engaged in a business service.
Commonwealth.
Virginia.
"Commonwealth,, means the Commonwealth of
Contractor. "Contractor,, means any person:
(a)
accepting or offering to accept orders or contracts for
doing any work on or in any building or structure,
requiring the use of paint, stone, brick, mortar, wood,
cement, structural iron or steel, sheet iron, galvanized
iron, metallic piping, tin, lead, or other metal or any
other building material;
(b)
accepting or offering to accept contracts to do any
paving, curbing or other work on sidewalks, streets,
alleys or highways, or public or private property, using
asphalt, brick, stone, cement, concrete, wood or any
composition;
(c)
accepting or offering to accept an order for or contract
to excavate earth, rock or other material for foundation
or any other purpose or for cutting, trimming or
maintaining rights-of-way;
(d)
accepting or offering to accept an order or contract to
construct any sewer of stone, brick, terra-cotta or other
material;
(e)
accepting or offering to accept orders or contracts for
doing any work on or in any building or premises
involving the erecting, installing, altering, repairing,
servicing, or maintaining electric wiring, devices or
appliances permanently connected to such wiring, or the
erecting, repairing or maintaining of lines for the
transmission or distribution of electric light and power;
or
(f) engaging in the business of plumbing and steam fitting.
Definite place of business. "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 not subject to licensure as
a peddler or itinerant merchant.
Department. "Department" means the Virginia Department of
Taxation.
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Direct seller. "Direct seller" means any person who engages
in the trade or business of selling or soliciting the sale of
consumer products primarily in private residences and maintains no
public location for the conduct of such business; and receives
remuneration for such activities, with substantially all of such
remuneration being directly related to sales or other sales-
oriented services, rather than to the number of hours worked; and
performs such activities pursuant to a written contract between
such person and the person for whom the activities are performed
and such contract provides that such person will not be treated as
an employee with respect to such activities for federal tax
purposes.
Federally aDpropriated funds. "Federally appropriated funds"
means identifiable federal appropriations for research and
development services as defined in § 31.205-18(a) of the Federal
Acquisition Regulation in the areas of (i) computer and electronic
systems, (ii) computer software, (iii) applied sciences, (iv)
economic and social sciences, and (v) electronic and physical
sciences.
Federal research and development contract. "Federal researck
and development contract" means a contract for research and
development services as defined in § 31.205-18(a) of the Federal
Acquisition Regulation in the areas of (i) computer and electronic
systems, (ii) computer software, (iii) applied sciences, (iv)
economic and social sciences, and (v) electronic and physical
sciences.
Federal research and development contractor. "Federal
research and development contractor" means any person designated as
the principal or prime contractor receiving identifiable federal
appropriations for research and development services as defined in
§ 31.205-18(a) of the Federal Acquisition Regulation in the areas
of (i) computer and electronic systems, (ii) computer software,
(iii) applied sciences, (iv) economic and social sciences, and (v)
electronic and physical sciences.
Financial services. "Financial services" means the buying,
selling, handling, managing, investing, and providing of advice
regarding money, credit, securities, or other investments.
Fortune-teller. "Fortune-teller" means any person who, for
compensation, shall pretend to tell fortunes, assume to act as a
clairvoyant, or to practice palmistry or phrenology.
Gross receipts. "Gross receipts" means the whole, entire,
total receipts without deduction, 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 kind, 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 or interest 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.
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The term "gross receipts,, shall include the total gross
receipts from all sales made, services rendered or activities
conducted by any business at a definite place of business in the
City, both to persons residing within the City and to persons
residing outside the City.
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 at a definite place of business within the City, irre-
spective of the location in which such gross receipts are actually
or constructively received.
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 ($100.00).
Gross receipts 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. The following items
shall be excluded from gross receipts:
(a) 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, for any federal or state excise taxes on motor
fuels;
(b) 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);
(c) any amount representing returns and allowances
granted by the business to its customer;
(d) receipts which are the proceeds
transaction in which the licensee is the obligor;
of a loan
(e) 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;
(f) 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 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;
(g) 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;
1996-18
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(h) investment income not directly related to the
privilege exercised by a business subject to licensure not
classified as rendering financial services. This exc '
ap~ly to interest on bank accoun~ ~ ..... luslon shall
' · - ~o ~ ~ne 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;
(i) the license and admission taxes established under
sections 59.1-392 and 59.1-393 respectively, of the Code of
Virginia; '
(J) pari-mutual wagering pools as established under
section 59.1-392 of the Code of Virginia;
(k) with respect to real estate brokers, amounts
received by any such 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 to which the
agent is subject to business license taxes;
(1) with respect to a motor vehicle dealer who accepts
a trade-in as part of a sale of a motor vehicle, the amount of the
trade-in;
(m) dues collected by trade, business, professional,
service'or civic associations or other similar organizations;
(n) income which is exempt from the federal income tax
pursuant to Internal Revenue Code section 501(c) (6). The preceding
exclusion pertaining to organizations which are exempt from the
federal income tax pursuant to Internal Revenue Code sectic
501(c) (6) shall not exempt unrelated business income received by
those organizations which is taxable pursuant to Internal Revenue
Code section 501(b); and
(o) with respect to wholesale and retail dealers in
petroleum products on which the Commonwealth levies a motor fuel
tax, tax payments to the Commonwealth.
The following shall be deducted from gross receipts or gross
ss 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;
1996-18
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; and
3. in the case of licenses under section 12-32, 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.
Health club. "Health club" means and includes any person,
firm, corporation, organization, club or association engaged in the
sale of memberships in a program of physical exercise, which
includes the use of one or more of a sauna, whirlpool, weight-
lifting room, massage, steam room, or exercising machine or device,
or engaged in the sale of the right or privilege to use exercise
equipment or facilities, such as a sauna, whirlpool, weight-lifting
room, massage, steam room or exercising machine or device.
Itinerant merchant. "Itinerant Merchant" means any person who
engages in, does, or transacts any temporary or transient business
in any county, city or town and who, for the purpose of carrying on
such business, occupies any location for a period of less than one
year. The term "itinerant merchant" shall not apply to a peddler
at wholesale or to those who sell or offer for-sale in person or by
their employees ice, wood, charcoal, meats, milk, butter, eggs,
poultry, game, vegetables, fruits or other family supplies of a
perishable nature or farm products grown or produced by them and
not purchased by them for sale.
License year.
which a license is
business.
"License year" means the calendar year for
issued for the privilege of engaging in
Peddler. "Peddler" means any person who shall carry from
place to place any goods, wares or merchandise and offer to sell or
barter the same, or actually sells or barters the same. The term
"peddler" shall not apply to a peddler at wholesale or to those who
sell or offer for-sale in person or by their employees ice, wood,
charcoal, meats, milk, butter, eggs, poultry, game, vegetables,
fruits or other family supplies of a perishable nature or farm
products grown or produced by them and not purchased by them for
sale.
Peddler at wholesale. "Peddler at wholesale" means any
person, firm or corporation who or which sells or offers to sell
goods, wares or merchandise to licensed dealers, other than at a
definite place of business operated by the seller, and at the time
of such sale or exposure for sale delivers or offers to deliver,
the goods, wares or merchandise to the buyer. For this purpose,
any delivery made on the day of sale shall be construed as a
delivery at the time of sale.
Person. "Person" includes individuals, firms, partnerships,
corporations, companies, limited liability companies, associations,
joint stock associations, and combinations of the foregoing of
whatever form or character, and it shall include any trustee,
receiver, assignee or personal representative thereof carrying on
or continuing a business, profession, trade or occupation, but
shall not include a trustee, receiver or other representative duly
appointed by a court to liquidate assets for immediate distribu-
tion, or a sergeant or a sheriff, or any deputy, selling under
authority of process or writ of a court of competent jurisdiction.
1996-18
Personal service. "Personal service" means any service
rendered for compensation either upon or for persons, animals or
personal effects, unless the service is specifically provided for
under another section of this chapter.
Photographer. "Photographer" means any person having no
regularly established place of business in the Commonwealth who
provides services consisting of the taking of pictures or the
making of pictorial reproductions in the Commonwealth.
"Photographer" shall also include every employee, agent or
canvasser for such photographer. The term "photographer" shall not
apply to (a) amateur photographers who expose, develop and finish
their own work and who do not receive compensation for such work or
receive compensation for performing any of the processes of photog-
raphy; (b) coin-operated photography machines; or (c) photographers
providing service in the course of their employment by newspapers,
magazines or television stations.
Professional services. "Professional services" means 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 Department of Taxation may list in the Guidelines for
Business, Professional, and Occupational License Tax promulgated
pursuant to section 58.1-3701 of the Code of Virginia. The word
"profession" implies attainments in professional knowledge as
distinguished from mere skill, and the application of knowledge to
uses for others rather than for personal profit.
Purchases. "Purchases" means all goods, wares and merchandise
received for sale at each definite place of business of a wholesale
merchant. The term shall also include the cost of manufacture of
all goods, wares and merchandise manufactured by any wholesale
merchant and sold or offered for sale. A wholesale merchant may
elect to report the gross receipts from the sale of manufactured
goods, wares and merchandise if it cannot determine the cost of
manufacture or chooses not to disclose the cost of manufacture.
Real estate services. "Real estate services" means providing
a service with respect to the purchase, sale, lease, rental, or
appraisal of real property.
Repair service. "Repair service" means the repairing,
renovating, cleaning or servicing of some article or item of
personal property for compensation, unless the service is
specifically provided for under another section of this chapter.
Any person conducting a repair service occupation in conjunction
with a retail merchant's business may combine gross receipts for
such repair occupation with the gross receipts from the retail
merchant's business.
Retail merchant or retailer. "Retail merchant" or "retailer"
means any person who makes retail sales. The fact that a person
sells goods, wares or merchandise at wholesale prices, at cost or
at less than cost, does not prevent the person from being
classified as a retail merchant if the sales fall within the
definition of a retail sale. Any person engaged in the short-term
rental business as defined in section 58.1-3510 of the Code of
Virginia shall be classified in the category of retail merchant for
license tax rate purposes.
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Retail sale. "Retail sale" means a sale of 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 which are classified as wholesale sales. The sales price
alone is not determinative of whether a sale is at retail or
wholesale.
Tax commissioner. "Tax commissioner" means the chief
executive officer of the Virginia Department of Taxation.
Wholesale merchant or wholesaler. "Wholesale merchant" or
"wholesaler" means any person who makes wholesale sales.
Wholesale sale. "Wholesale sale" means a sale of goods, wares
and merchandise for resale by the purchaser, including sales when
the goods, wares and merchandise will be incorporated into goods
for sale, and also includes sales to institutional, commercial,
industrial and governmental users which, because of the facts and
circumstances surrounding the sales, such as the quantity, price,
or other terms, indicate that they are consistent with sales at
wholesale.
Within the city; in the city. "Within the city" or "in the
city" means within the corporate limits of the city.
Sec. 12-2.
License taxes; levied; classification
waiver for receipts applied to
charitable or civic purposes.
conflicts;
religious,
(a) For each license year, there are hereby levied and there
shall be assessed and collected the annual license taxes set forth
in this chapter, except as otherwise specifically provided in this
chapter, on persons conducting or engaging in any business, trade,
profession, occupation or calling in the city set forth in this
chapter.
(b) Wherever specific classifications are licensed under
article II, division 2, the general classifications under article
II, division 1 shall not apply.
(c) Ail of the taxes imposed by this chapter are in all cases
imposed for the privilege of doing business or pursuing a trade,
employment, profession, occupation or calling in the city,
including all phases of the business, trade, employment,
profession, occupation or calling conducted in the city.
(d) The license tax which might be imposed upon any activity,
the net receipts of which are applied or donated to a religious,
charitable or civic purpose, may be waived by the city council or
by such other city official as the City council may designate.
Sec. 12-3.
Reserved.
Sec. 12-4.
License taxes not applicable to person having gross
receipts of eighteen hundred dollars or less per
year.
Except as specifically provided in section 58.1-3706 of the
Code of Virginia, no license tax shall be imposed on any person
whose gross receipts for the immediately preceding year from a
business, profession or occupation subject to licensure are less
than eighteen hundred dollars ($1,800.00.)
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Sec. 12-5. Proration of license taxes.
In the event a person ceases to engage in a business,
trade, profession, or calling within the city during a year for
which a license tax based on gross receipts has been paid, the
taxpayer shall be entitled upon application to a refund for that
portion of the license tax already paid, prorated on a monthly
basis so as to ensure that the licensed privilege is taxed only for
that fraction of the year during which it is exercised within the
city. The commissioner of revenue may remit any refunds in the
ensuing fiscal year, and may offset against such refund any amount
of past-due taxes owed by the same person. In no event shall the
city be required to refund any part of a flat fee or minimum flat
tax.
Sec. 12-6.
License required; application for license;
extensions of time to file application for license;
corrections to application for license.
(a) Every person shall apply for and obtain a license for
each business, trade, profession, occupation or calling when
engaging in a business in the city if (i) the person has a definite
place of business in the city; (ii) the person has no definite
place of business anywhere and the person resides in the city; or
(iii) the persona has no definite place of business in the city but
the person operates amusement machines or is classified as an
itinerant merchant, peddler, carnival, circus, contractor subject
to section 58.1-3715 of the Code of Virginia, or public service
corporation.
(b) Each person subject to a license tax shall apply for a
license prior to beginning business if such person was not subject
to licensure in the City on or before January 1 of the license
year, or no later than January 31 of the license year if such
person had been issued a license for the preceding year. The
application shall be on forms prescribed and furnished in duplicate
by the commissioner of the revenue. Such forms shall be accurately
and fully completed and executed by the applicant and shall contain
such information as may be required by the commissioner of the
revenue.
(c) The commissioner of the revenue 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 license tax; the license
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
ten percent of the portion paid after the due date.
(d) Persons renewing licenses based on gross receipts, as
herein provided, shall be allowed to correct, without penalty, any
application for license originally submitted within the prescribed
time; provided, that any increase in tax due under this chapter is
paid prior to May 1 of the year involved; and provided, further,
that the correction does not involve an increase in tax due under
this chapter in excess of ten percent of the tax originally paid.
Sec. 12-7.
Each location to be separately licensed; multiple
licenses may be combined.
m
1996-18 -1 1
(a) A separate license shall be required, and a separate and
license tax, if applicable, shall be paid, for each definite place
of business and for each business.
(b) A person engaged in two or more businesses, trades,
employments, professions, occupations or callings carried on at the
same place of business may elect to obtain one license for all such
businesses, trades, employments, professions, occupations and
callings if all of the following criteria are satisfied: (i) each
business, trade, employment, profession, occupation or calling is
subject to licensure at the location and has satisfied any
requirements imposed by state law or other provisions of the
ordinances of the city; (ii) all of the businesses, trades,
employments, professions, occupations and callings are subject to
the same tax rate, or, if subject to different tax rates, the
licensee agrees to be taxed on all businesses, trades, employments,
professions, occupations and callings at the highest rate
applicable to any of them; and (iii) the taxpayer agrees to supply
such information as the commissioner of the revenue may require
concerning the nature of the several businesses, trades,
employments, professions, occupations and callings and their gross
receipts.
Sec. 12-8.
Payment of certain delinquent taxes before issuance
of business license.
No license under this chapter shall be issued until the
applicant has produced satisfactory evidence that all delinquent
business license, personal property, meals, transient occupancy,
and admissions taxes owed by the business to the city have been
paid which have been properly assessed against the applicant by the
city.
Sec. 12-9.
Failure to obtain license unlawful; penalties.
(a) It shall be unlawful for any person to conduct or engage
in any business, trade, employment, profession, occupation or
calling in the city for which a license is required by this chapter
without first obtaining from the city the license required by this
chapter. Except as otherwise provided herein, any person violating
this section shall, upon conviction thereof, be guilty of a class
1 misdemeanor. Any person who engages in a business in the city
without obtaining a license, or after being refused a license,
shall not be relieved of the tax imposed by this chapter.
(b) It shall be unlawful for any person to engage in business
in the city as a fortune-teller without the license required by
this chapter. Any person violating this subsection shall, upon
conviction thereof, be guilty of a class 3 misdemeanor.
(c) It shall be unlawful for any person to exhibit or give a
performance or exhibition in the city of any show, carnival or
circus without the license required by this chapter. Any person
violating this subsection shall, upon conviction thereof, be
subject to a fine of not less than $50 nor more than $500 for each
offense.
Sec. 12-10. Assessment of license tax.
(a) The commissioner of the revenue shall assess such
applicant or other person of whom a license is required with the
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license tax required by this chapter, and any penalty in connection
therewith, and shall retain one copy of the license applicatior
form.
(b) Computation of annual license taxes based upon gross
receipts for persons continuing the operation of a business,
profession, trade or occupation which has existed within the city
for at least one full calendar year shall be based upon the gross
receipts from the preceding calendar year except as otherwise
provided herein.
Sec. 12-11. Omitted license taxes.
If the commissioner of the revenue ascertains that any person
subject to a license tax under this chapter has not been assessed
with such tax for any license tax year of the three (3) immediately
preceding, or that such tax has been assessed at less than the law
required for any one or more of such years, so that such tax for
any cause has not been collected by the city, it shall be the duty
of the commissioner of the revenue to assess such person with the
proper license tax for the year or years omitted, adding thereto
penalty and interest in accordance with section 12-22 of this
chapter.
Sec. 12-12. Erroneous assessments; refund.
The commissioner of the revenue is empowered to certify to the
city treasurer any instances of erroneous assessments. Upon
receipt of such certificate, the city treasurer is directed to make
a refund based upon the certification of the commissioner of the
revenue.
Sec. 12-13. Licenses to be signed by commissioner of the
revenue.
No license shall be valid unless payment of the license fee
and tax have been received by the city and the license has been
signed by the commissioner of the revenue.
Sec. 12-14. Nontransferability of licenses.
Licenses issued under this chapter shall not be transferable.
Sec. 12-15.
When license taxes payable.
(a) The license tax shall be paid with the application in the
case of any license not based on gross receipts. If the license
tax is measured by the gross receipts of the business, the tax
shall be paid on or before January 31 or, in the case of a person
first beginning business in the city, within thirty days after
beginning business.
(b) In the case of omitted license taxes assessed under
section 12-11, such taxes, together with penalty and interest
thereon, shall be due and payable thirty (30) days after the day of
assessment. If not paid by such date, interest shall accrue
thereon at the maximum rate permitted by applicable law.
1996-18
-13
Sec. 12-16. Additional charges for returned check.
A fee of ten dollars ($10.00) shall be charged for the
uttering, publishing or passing of any check or draft for payment
of taxes or any other sums due which is subsequently returned for
insufficient funds or because there is no account or the account
has been closed. Such fee shall be collected by the city
treasurer.
Sec. 12-17.
Computation of tax for persons beginning business;
residents.
(a) Every person beginning a business, profession, trade,
occupation or calling which is subject to a license tax under the
provisions of this chapter and is based in whole or in part on
gross receipts shall estimate the amount of the gross receipts the
person will incur between the date of beginning business and the
end of the then current license year, and the person's license tax
for the then current year shall be computed on such estimate.
(b) Whenever a license tax is so computed on the estimated
gross receipts, any inaccurate estimate shall be subject to
correction and the commissioner of the revenue shall assess such
person with any additional license tax found to be due after the
end of that license year, adding thereto any penalty that may be
applicable as provided for in section 12-22; and shall, at the same
time, correct the estimate for the then current license year until
a full year of operation shall have been completed. In case of an
overestimate, the taxpayer shall be entitled to a credit upon his
license tax payable the following year.
Sec. 12-18. Calculation of gross receipts.
The calculation of gross receipts for license tax purposes
shall be on either the cash or accrual method; provided, however,
that the method used must coincide with the method of accounting
used for federal and state income tax purposes. The base year's
gross receipts may be either the calendar year immediately
preceding the license year or the immediately preceding fiscal year
used by the business, provided that the year employed must coincide
with the year used for federal and state income tax purposes.
Sec. 12-19. Situs of gross receipts; apportionment; agreements.
(a) Except as otherwise provided by law and except as to
public service corporations, the situs for the local license
taxation for any business, profession, trade, occupation or calling
subject to licensure, shall be the county, city or town in which
the person so engaged has a definite place of business. If any
such person has a definite place of business in any other locality,
then such other locality may impose a license tax on him, provided
such other locality is otherwise authorized to impose a local
license tax with respect thereto.
(b) Where a local license tax imposed by the city is measured
by volume, the volume on which the tax may be computed shall be the
volume attributable to all definite places of business of the
business, profession, trade, occupation or calling in the city.
All volume attributable to any definite places of business of the
business, profession, trade, occupation or calling in any other
locality shall be deductible from the base in computing any local
1996-18 -14
license tax measured by volume imposed by the city. The word
"volume," as used in this subsection, means gross receipts, sales,
purchases, or other base for measuring a license tax which is
related to the amount of business done.
(c) 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 city. In the case of activities conducted outside of a
definite place of business, such as during a visit to a customer
location, the gross receipts shall be attributed to the definite
place of business from which such activities are initiated,
directed, or controlled. The situs of gross receipts for different
classifications of business shall be attributed to one or more
definite places of business or offices as follows:
(1) 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 section 58.1-3715 of the Code of
Virginia;
(2) 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 Department of Taxation for a determination as to
the proper measure of purchases and gross receipts subject to
license tax in each locality;
(3) 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;
(4) 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; and
(5) the gross receipts of a direct seller shall be
attributed to the county, city or town in which such person
maintains his place of abode.
(d) 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
1996-18
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 the
city solely because the other jurisdiction does not impose a tax on
the gross receipts attributable to the definite place of business
in such other jurisdiction.
(e) The commissioner of the revenue 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 percent of its gross receipts from all locations in the
affected jurisdictions, the commissioner of the revenue 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 commissioner of the revenue or taxpayer may
seek an advisory opinion from the Department of Taxation pursuant
to section 58.1-3701 of the Code of Virginia; notice of the request
shall be given to the other party. Notwithstanding the provisions
of section 58.1-3993 of the Code of Virginia, 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 section 58.1-3986 of the
Code of Virginia, 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.
Sec. 12-20. Display of license.
Each license issued pursuant to the provisions of this chapter
shall be displayed in a conspicuous place at the regular place of
business, trade, profession, occupation or calling of the licensee,
in order that any authorized representative of the city may inspect
the same at all reasonable times. All licensees who have or
maintain no regular place of business in the city shall either
carry with them on their person or have affixed or attached to
their truck, automobile or other vehicle the license and promptly
display the same when called upon by any authorized representative
of the city to do so.
Sec. 12-21.
Failure to display or exhibit license; injunction;
violations.
(a) It shall be unlawful for any person licensed under this
chapter to fail to display or exhibit properly the person's license
or to refuse to show the same to any authorized officer of the city
upon request.
1996-18
-16
(b) The commissioner of the revenue may institute an action
in the appropriate court of record to obtain an injunction for the
continuing violation of any provision of this chapter, including,
but not limited to, prohibiting any person from continuing to
conduct or engage in a business, profession, trade, occupation or.
calling unless and until the appropriate license has been obtained
and the license tax therefor has been paid.
(c) The commissioner of the revenue shall cause appropriate
summons to be issued and prosecuted for violations of this chapter.
Sec. 12-22 Penalty and interest.
(a) A penalty of ten percent (10%) of the license tax is
hereby 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 commissioner of the revenue
if both the application and payment are late; however, both
penalties may be assessed if the commissioner of the revenue
determines that the taxpayer has a history of noncompliance. In
the case of an assessment of additional tax made by the
commissioner of the revenue, 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
commissioner of the revenue is not paid within thirty days, the
treasurer or other collecting official 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 commissioner of the revenue. A
request for waiver or abatement of penalty shall be in writing; the
commissioner of the revenue shall make and retain for three years
a written determination of that request. 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.
"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 rectifying 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 commissioner of the
revenue who was aware of the relevant facts relating to the
taxpayer's business when he provided the erroneous information.
(b) 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 commissioner of the revenue is
1996-18
-17
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 from the date of
payment or due date, whichever is later, whether attributable to ar
amended return or other reason. Interest on any refund shall be
paid at the same rate charged under section 58.1-3916 of the Code
of Virginia. 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 the refund or the late payment is made not
more than thirty days from the date of the payment that created the
refund or the due date of the tax, whichever is later.
Sec. 12-23. Record-keeping and audits.
Every person who is assessable with a license tax shall keep
sufficient records to enable the commissioner of the revenue to
verify the correctness of the tax paid for the license years
assessable and to enable the commissioner of the revenue to
ascertain what is the correct amount of tax that was assessable for
each of those years. All such records, books of accounts and other
information shall be open to inspection and examination by the
commissioner of the revenue in order to allow the commissioner of
the revenue to establish whether a particular receipt is directly
attributable to the taxable privilege exercised within the city.
The commissioner of the revenue shall provide the taxpayer with the
option to conduct the audit in the taxpayer's local business
office, if the records are maintained there. In the event the
records are maintained outside the city, copies of the appropriate
books and records shall be sent to the commissioner of the
revenue's office upon demand.
Sec. 12-24. Appeals and rulings.
(a) Any person assessed with a license tax as a result of an
audit may apply within ninety days from the date of such assessment
to the commissioner of the revenue 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 commissioner of the revenue 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 commissioner of the revenue
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) Provided a timely and complete application is made,
collection activity shall be suspended until a final determination
is issued by the commissioner of the revenue, unless the treasurer
determines that collection would be jeopardized by delay or that
the taxpayer has not responded to a request for relevant
1996-18
-18
information after a reasonable time. Interest shall accrue in
accordance with the provisions of section 12-22(b), 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 (i) depart quickly from~
the city, (ii) remove his property therefrom, (iii) conceal himself
or his property therein, or (iv) do any other act tending to
prejudice, or to render wholly or partially ineffectual,
proceedings to collect the tax for the period in question.
(c) Any person assessed with a local license tax as a result
of an audit may apply within ninety days of the determination by
the commissioner of the revenue on an application pursuant to
section 12-24(a) 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 commissioner of the
revenue are notified that a longer period will be required. The
application shall be treated as an application pursuant to section
58.1-1821 of the Code of Virginia, and the Tax Commissioner may
issue an order correcting such assessment pursuant to section
58.1-1822 of the Code of Virginia. Following such an order, either
the taxpayer or the commissioner of the revenue may apply to the
appropriate circuit court pursuant to section 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 section 12-24(c), the treasurer shall
further suspend collection activity until a final determination is
issued by the Tax Commissioner, unless the treasurer 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 section 12-22(b), 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
section 12-24(b) above.
(e) Any taxpayer may request a written ruling regarding the
application of a local license tax to a specific situation from the
commissioner of the revenue. 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 the guidelines issued by
the Department of Taxation upon which the ruling was based or (ii)
the commissioner of the revenue 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. 12-25. Limitations and extensions.
(a) Where, before the expiration of the time prescribed for the
assessment of any license tax imposed pursuant to this chapter,
1996-18
-19
both the commissioner of the revenue 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 subsection (a) above or section 58.1-3903
of the Code of Virginia, the commissioner of the revenue shall
assess the license tax omitted because of fraud or failure to apply
for a license for the current license year and the six preceding
license years.
(c) The period for collecting any license tax shall not
expire prior to the period specified in section 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 section,
two years after the final determination of an appeal for which
collection has been stayed pursuant to subsection 12-24(b) or 12-
24(d) of this ordinance, or two years after the final decision in
a court application pursuant to section 58.1-3984 of the Code of
Virginia or similar law for which collection has been stayed,
whichever is later.
sec. 12-26 through 12-29. Reserved.
Article II. Schedule of License Taxes.
Division 1. Classification of Certain Businesses.
Sec. 12-30.
Contractors and persons constructing in their own
behalf for sale.
(a) Every contractor and persons contracting in their own
behalf for sale shall pay for the privilege an annual license tax
equal to the greater of thirty dollars ($30.00) or sixteen cents
($0.16) per one hundred dollars ($100.00) of gross receipts. The
tax shall be based upon the gross receipts from such occupation or
business conducted in the city in the next preceding calendar year.
No license shall be required under this section of any contractor
not having a principal or branch office within the city but having
an office in another locality in the Commonwealth and licensed by
such other locality in the Commonwealth unless the amount of
business done by such contractor in the city exceeds twenty-five
thousand dollars ($25,000.00) in any year, in which event such
person shall file an application for license and pay the license
tax imposed by this section on its gross receipts from business
done in the city.
(b) Contracting generally includes, but is not limited to,
persons engaged in the following occupations, businesses or trades:
Air-conditioning contracting.
Brick contracting and other masonry.
Building.
Cementing.
Dredging.
1996-18
Electrical contracting.
Elevator installation.
Erecting signs which are assessed as realty.
Floor scraping or finishing.
Foundation work.
House moving.
Paint and paper decorating.
Plastering.
Plumbing, heating or steamfitting.
Refrigeration work.
Road, street,
construction.
bridge,
sidewalk or
curb and gutter
Roofing and tinning.
Sewer drilling and well digging.
Sign painting.
Structural metal work.
Tile, glass, flooring and floor covering installation.
Wrecking, moving or excavating.
Sec. 12-31. Retail sales.
(a) Every retailer, including amusement operators, shall pay
for the privilege an annual license tax equal to the greater of
thirty dollars ($30.00) or twenty cents ($0.20) per one hundred
dollars ($100.00) of gross receipts based upon the gross receipts
from such retail sales in the next preceding calendar year.
(b) Any person engaged in repair service who sells parts in
addition to or as a part of the repair service, is engaged in
retail or wholesale sales as to the sales of the repair parts.
(c) Banks and savings and loan associations that sell
promotional items are engaged in retail sales as to the sales of
the promotional items and are not exempt from the city license
taxation as to those sales. However, no license tax levied on a
savings and loan association shall exceed fifty dollars ($50.00)
and shall be levied only where the main office of such association
is located.
(d) A bank is not engaged in retail sales as to the sales of
blank checks if the customer places an order for the checks
directly with the printer and authorizes the bank to collect for
the printer by charging his account, and the bank is not obligated
to pay for the checks except insofar as it honors the customer's
authorization. If, however, the customer places his order with the
1996-18
-21
bank and the bank contracts with the printer and is liable to the
printer, whether or not the bank actually collects from the
customer, then the bank is engaged in retail sales.
(e) A charitable institution or other not-for-profit
organization that engages in the business of buying and selling
merchandise may be subject to the city license tax as a retail or
wholesale merchant, even though the proceeds are subsequently used
for charitable purposes.
(f) A lunch counter operated by an organization open to
members only, the proceeds from which are used to maintain the
organization, may be subject to the city license tax.
(g) Any hotel, motel, boardinghouse or lodging house which!
also furnishes or sells food or merchandise for compensation is
engaged in retail sales as to the sales of the food or merchandise.
(h) A person is not subject to license tax if his business
the Commonwealth is limited solely to the solicitation of orders by
catalogs mailed from outside the Commonwealth to mail-order buyers
in the Commonwealth and who fills orders from outside the
Commonwealth. However, if the catalogs are distributed by a
resident of the Commonwealth by mail or in person or if the person
engaged in the mail-order business has a definite place of business
in the Commonwealth at which mail orders are received or filled,
the mail-order business may be treated the same as any other retail
or wholesale business for purposes of the city license taxes.
(i) Any person who merely fills prescriptions for or fits
corrective lenses and eyeglass frames is a retail merchant.
However, any practitioner who examines eyes is engaged in rendering
a professional service.
(j) Any practitioner of a profession who sells goods, wares
or merchandise in connection with the practice of the profession
may be engaged in making retail sales depending on the nature of
the products sold and the service performed.
Examples in this area are as follows:
(1)
A medical doctor who engages in the sale of drugs
or other goods, wares or merchandise as well as the
practice of medicine is a merchant as to those
sales. However, a medical doctor is not a merchant
as to the drugs used in giving an immunization to a
patient.
(2)
A chiropodist who sells shoes in connection with
his practice is a retail merchant as to such sales.
(k) A job printer is a manufacturer and is engaged in either
retail or wholesale sales as to the sales of the items printed.
(1) Any person who purchases rough stone already cut and who
then polishes, glazes and cuts lettering in the stone is not a
manufacturer and is engaged in either retail or wholesale sales.
(m) Any person who sells goods at retail through a commission
merchant may be held liable for the city license tax as to such
sales.
1996-18
-22
(n) Any person subject to taxation as an operator of coin-
operated machines or devices who is also engaged in other retail
sales under this section may file a single return combining the
taxable receipts.
Sec. 12-32. Financial, real estate and professional services.
(a) Generally. Every person engaged in financial services,
real estate services or professional services shall pay for the
privilege an annual license tax equal to the greater of thirty
dollars ($30.00) or forty cents ($0.40) per one hundred dollars
($100.00) of gross receipts based upon the gross receipts from such
services in the next preceding calendar year. However, for persons
engaged in the business of leasing real property, the tax rate
shall be as follows: For the lessors of commercial and industrial
real property and the lessors of dwelling units in apartment
houses, the tax shall be the greater of thirty dollars ($30.00) or
twenty-three cents ($0.23) per one hundred dollars ($100.00) of
gross receipts from the rental in the next preceding calendar year;
for lessors of all other residential real property, including
single-family detached and semidetached dwellings, townhouses and
condominium units, the tax shall be the greater of thirty dollars
($30.00) or fifty cents ($0.50) per one hundred dollars ($100.00)
of gross receipts from the rental in the next preceding calendar
year. The definitions of uses of real property in section 26-4
shall apply to this section. It is the intent of this section to
tax individually all persons practicing a profession, occupation or
calling including persons who practice a profession as members or
employees of a partnership, firm, company or corporation. In the
case of employees, gross receipts shall be measured by salary or
commission received. As to the members of partnerships or firms,
they shall be measured by salary or commission received. As to the
members of partnerships or firms, they shall be taxed only in the
proportion that their respective share in the partnership or firm
bears to the total gross receipts. In lieu of additional licenses
such members may file jointly for a single license and pay a
collective license tax upon the total gross receipts. A joint
filing must include a complete list of all members for whom the
license tax is being paid.
(b) Financial services. Persons engaged in rendering
financial services include, but are not limited to, the following:
Buying installment receivables.
Chattel mortgage financing.
Consumer financing.
Credit card services.
Credit unions.
Factors.
Financing accounts receivable.
Industrial loan companies.
Installment financing.
1996-18
-23
Inventory financing.
Loan or mortgage brokers.
Loan or mortgage companies.
Safety deposit box companies.
Security and commodity brokers and services.
Stockbroker.
Working capital financing.
Any person other than a national bank or bank or trust company
organized under the laws of the Commonwealth, or a duly licensed
and practicing attorney-at-law, that engages in the business of
buying or selling for others on commission or for other
compensation, shares in any corporation, bonds, notes or other
evidences of debt is a stockbroker. The fact that orders are taken
subject to approval by a main office does not relieve the broker
from city license taxation. Also, an insurance company engaged in
selling mutual funds is a broker as to that portion of its
business.
(c) Real estate service. Persons engaged in rendering real
estate services include, but are not limited to, the following:
Appraisers of real estate.
Escrow agents, real estate.
Fiduciaries, real estate.
Lessors of real property.
Real estate agents, brokers and managers.
Real estate selling agents.
Rental agents for real estate.
(d) Professional service.
professional service include,
following:
Persons engaged in rendering a
but are not limited to, the
Architects.
Attorneys-at-law.
Certified public accountants.
Dentists.
Engineers.
Land surveyors.
Pharmacists.
Practitioners of the healing arts.
1996-18
Surgeons.
Veterinarians.
Sec. 12-33. Repair, personal, business and other services.
(a) ~ Every person engaged in a repair service,
personal service, business service or any other business, trade,
profession, occupation or calling not specifically listed or
excepted from license taxation according to the provisions of this
chapter, shall pay for the privilege an annual license tax equal to
the greater of thirty dollars ($30.00) or twenty-seven cents
($0.27) per one hundred dollars ($100.00) of gross receipts base
upon the gross receipts from such services in the next preceding
calendar year. However, such tax shall be thirty dollars ($30.00)
for transportation services including bus and taxi services.
(b) Enumerated______= Those rendering a repair, personal or
business service or other service as provided in subsection (a)
above include, but are not limited to, the following:
Advertising agencies.
Airports.
Ambulance services.
Amusements and recreation services (all types).
Animal hospitals, grooming services, kennels or stables.
Auctioneers and common criers.
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.
Booking agents or concert manager.
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.
1996-18
-25
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.
Engraving.
Erecting, installing, removing or storing awnings.
Extermination services.
Freight traffic bureaus.
Fumigating or disinfecting.
Funeral services and crematories.
Golf courses, driving ranges and miniature golf courses.
Hauling of sand, gravel or dirt.
Hotels, motels, tourist courts, boarding and rooming houses.
House cleaning services.
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.
1996-18
-26
goods
Packing, crating, shipping, hauling or moving
chattels for others.
Parcel delivery services.
Parking lots, public garages and valet parking.
Pawnbrokers (see subsection (c) of this section).
Personnel 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 relations services.
Realty multiple listing services.
Renting or leasing any items of tangible personal property.
Reproduction services.
Secretarial services.
Septic tank cleaning.
Shoe repair, shoe shine 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.
Trailer parks and campsites.
Transportation services including buses and taxis.
mmmmmmmm
or
1996-19
Travel bureaus.
-27
Tree surgeons, trimmers and removal services.
Turkish, Roman or other like baths or parlors.
Wake-up services.
Washing, cleaning or polishing automobiles.
(c) No license shall be issued to a pawnbroker until a permit
shall have been obtained as required by this Code.
Sec. 12-34. Persons and organizations sponsoring shows or sales.
Every person or organization, certified as exempt from
taxation pursuant to the United States Internal Revenue Code, which
sponsors a show or sale in the city shall obtain from the
commissioner of the revenue, for each show or sale, a business
license as required by this section and shall pay to the city for
each show or sale a tax in the amount of two hundred dollars
($200.00). The sponsor of the show or sale shall provide to the
commissioner with the license tax application a current list of the
names and addresses of each promotional agent, agency and each
itinerant merchant which will participate in each such show or
sale. A license issued to a sponsor under this section shall be in
lieu of the personal, business or other service license required
under section 12-33 for each promotional agent or agency which
promotes the show or sale. Such license shall also be in lieu of
the retail sales license required under section 12-31 for each
itinerant merchant which participates in such show or sale.
Sec. 12-35 through 12-39. Reserved.
Division 2. Other License Taxes
Sec. 12-40. Federal research and development contractors.
Every federal research and development contractor shall pay
for the privilege an annual license tax equal to the greater of
thirty dollars ($30.00) or three cents per $100 of federally
appropriated funds received in payment of federal research and
development contracts upon documentation provided by such person to
the commissioner of revenue confirming the applicability of
subsection 58.1-3706.D.1 of the Code of Virginia. If a federal
research and development contractor does not provide such
documentation to the commissioner of revenue, then he or she shall
be pay an annual license tax as a business service provider.
Sec. 12-41. Wholesale merchants.
Every person engaged in the business of a wholesale merchant
shall pay for the privilege an annual license tax of five cents
($0.05) per one hundred dollars ($100.00) of purchases based upon
purchases in the immediately preceding calendar year.
Sec. 12-42. Peddlers; itinerant merchants.
(a) Every person engaged in the business of a peddler or
itinerant merchant who sells goods, wares or merchandise at retail
1996-18
'28
shall pay for the privilege an annual license tax of thirty dollars
($30.00) per year, which tax shall not be prorated.
(b) The license tax imposed by this section shall not apply
to any peddler at wholesale nor to:
(1)
a licensed wholesale dealer who sells and, at the
time of such sale, delivers merchandise to retail
merchants;
(2)
a distributor or vendor
petroleum products;
of motor fuels and
(3)
a distributor or vendor of seafood who catches
seafood and sells only the seafood caught by him;
(4)
a farmer or producer of agricultural products who
sells only the farm or agricultural products
produced or grown by him;
(5) a farmers' cooperative association; or
(6)
a manufacturer who is subject to Virginia tax or
intangible personal property who peddles at
wholesale, only the goods, wares or merchandise
manufactured by him at a plant, whose intangible
personal property is taxed by the Commonwealth.
Sec. 12-43. Peddlers at wholesale.
(a) Every person engaged in the business of a peddler at
wholesale shall pay for the privilege an annual license tax as a
wholesale merchant.
to:
(b)
The license tax imposed by this section shall not apply
(1)
a licensed wholesale dealer who sells and, at the
time of such sale, delivers merchandise to retail
merchants;
(2)
a distributor or vendor
petroleum products;
of motor fuels and
(3)
a distributor or vendor of seafood who catches
seafood and sells only the seafood caught by him;
(4)
a farmer or producer of agricultural products who
sells only the farm or agricultural products
produced or grown by him;
(5) a farmers' cooperative association; or
(6)
a manufacturer who is subject to Virginia tax on
intangible personal property who peddles at
wholesale, only the goods, wares or merchandise
manufactured by him at a plant, whose intangible
personal property is taxed by the Commonwealth.
Sec. 12-44. Direct sellers.
Every person engaged in the business of a direct seller shall
pay for the privilege an annual license tax equal to the greater of
1996-18
-29
thirty dollars ($30.00) or the sum of twenty cents ($0.20) per one
hundred dollars ($100.00) of retail sales and five cents ($0.05)
per one hundred dollars ($100.00) of wholesale sales; provided,
however, that no license tax shall be imposed upon a direct seller
unless the total sales of such direct seller exceed four thousand
dollars ($4,000.00) per year.
Sec. 12-45. Amusement operators.
(a) Every person engaged in the business of an amusement
operator shall pay for the privilege an annual tax as a personal
service provider on the share of the receipts actually received by
such operator from coin machines operated within the city.
(b) Every person engaged in the business of an amusement
operator shall furnish to the commissioner of the revenue a
complete list of all machines on location and the address of each
location on or before January 31 of each year.
(c) Each machine shall have conspicuously located
thereon a decal, sticker or other adhesive label, no less than 1 ×
2 inches in size, clearly denoting the operator's name and address.
Sec. 12-46. Bondsmen.
Every person engaged in the business of a bondsman shall
pay for the privilege an annual license tax as a personal service
provider. No such person shall enter into any such bond or bonds
in the city until he shall have obtained such license. With the
exception of any bondsman or his agent who has heretofore obtained
a certificate and license under this section and whose certificate,
license and right to act as a bondsman continues to remain in full
force and effect, no such license shall be issued unless and until
the applicant shall have first obtained a certificate from the
judge of the Fairfax County Circuit Court as required by law.
The commissioner of the revenue may revoke any license issued
under this section for failure of the licensee to comply with the
terms hereof.
Sec. 12-47.
Fortune-tellers, clairvoyants, and practitioners of
palmistry.
Every person engaged in the business of a fortune-teller shall
pay for the privilege an annual license tax of one thousand dollars
($1,000.00) per year, which tax shall not be prorated.
Sec. 12-48.
Photographers with no readily established place of
business.
Every person engaged in the business of a photographer shall
pay for the privilege an annual license tax as a personal service
provided, that the tax shall not exceed thirty dollars ($30.00),
which tax shall not be prorated.
Sec. 12-49. Carnivals, circuses, and speedways.
No show, circus, carnival or other like performance shall be
exhibited within the city unless a license has first been obtained
therefor, for which privilege a license tax of one hundred fifty
1996-18
-30
dollars ($150.00) per day shall be charged, and no rebate shall be
allowed for rainy days. For the privilege of using the streets and
highways of the city for a carnival street parade a license tax of
one hundred dollars ($100.00) shall be charged and no such license
shall be issued except after a permit for such parade has been
obtained from the city manager.
Sec. 12-50.
Savings and loan
credit unions.
association;
state-chartered
Every savings and loan association and state-chartered credit
union whose main office is located in the city shall pay for the
privilege an annual license tax in the amount of fifty dollars
($50.00), which tax shall not be prorated.
Sec. 12-51. Certain public service corporations.
Every person engaged in the business of conducting a telephone
or telegraph company, water company, heat, light, gas or power
company shall pay for the privilege an annual license tax equal to
one-half (1/2) of one (1) per cent of the gross receipts of s~
company accruing from sales to the ultimate consumer in the city.
In the case of telephone companies, charges for long-distance
telephone calls shall not be included in gross receipts for the
purposes of this section.
Sec. 12-52.
Commission Merchants.
Every person engaged in the business of a commission merchant
shall pay for the privilege an annual license tax as an other
business under section 12-33 of this chapter only on commission
income. Such person shall not be subject to tax on total gross
receipts from sales.
Sec. 12-53. Alcoholic beverages.
(a) Generally. Every person engaged in the manufacture,
bottling or selling of alcoholic beverages within the city shall
pay for the privilege an annual license tax as follows:
(1)
For each distiller's license, one thousand dollars
($1,000.00); no such license shall be required for any
person who manufactures not more than five thousand
(5,000) gallons of alcohol or spirits, or both, during
such license year.
(2)
For each winery license, one
($1,000.00); for each wholesale
license, fifty dollars ($50.00).
thousand dollars
wine distributor's
(3)
For each brewery license, one thousand dollars
($1,000.00).
(4)
For each bottler's license, five hundred dollars
($500.00).
(5)
For each wholesale beer license, one hundred twenty-five
dollars ($125.00).
(6)
For each wholesale druggist license, ten dollars
($10.00).
1996-18
-31
(7)
For each retail on-premises wine and beer license for a
hotel, restaurant or club and for each retail off-
premises wine and beer license, including each gift shop,
gourmet shop and convenience store license, seventy-five
dollars ($75.00).
(8)
For each retail on-premises beer license for a hotel,
restaurant or club, for each retail off-premises beer
license and for each druggist license, fifty dollars
($50.00).
(9) For each banquet license, five dollars ($5.00).
(10) For each fruit distiller's license, one thousand five
hundred dollars ($1,500.00).
(11) For each hospital license, ten dollars ($10.00).
(12) For each mixed beverage license as follows:
so
For each restaurant, including restaurants located
on the premises of and operated by hotels and
motels or other persons:
With a seating capacity at tables for fifty
(50) to one hundred (100) persons, two hundred
dollars ($200.00).
With a seating capacity at tables for more
than one hundred (100) but not more than one
hundred fifty (150) persons, three hundred
fifty dollars ($350.00).
With a seating capacity at tables for more
than one hundred fifty (150) persons, five
hundred dollars ($500.00).
For each private, nonprofit club operating a
restaurant on the premises of such club, three
hundred fifty dollars ($350.00).
c. For each caterer, five hundred dollars ($500.00).
(b) State license required. No such license shall be issued
to any person unless such person shall hold or shall secure
simultaneously therewith the proper state license provided for in
chapter 1, title 4.1 of the Code of Virginia, as amended.
(c) Delivery. Nothing herein shall be construed so as to
require any person to obtain a city license where such person is a
wholesaler or distributor who maintains no place of business within
the city, but merely delivers alcoholic beverages in the city.
(d) License in addition to other license requirements. No
alcoholic beverage license authorized by this chapter shall be
construed as exempting any licensee from any merchants' or restau-
rants' licenses and no such license shall be transferable.
Sec. 12-54. Canvassers and soliciting agents.
Canvassers or soliciting agents, unless covered by another
section in this chapter, shall pay a license tax equal to the
lesser of thirty dollars ($30.00) per annum or five dollars ($5.00)
1996-18
-32
per day, except when such tax is waived under section 12-4. Ail
canvassers and soliciting agents shall register with the chief of
city police.
Sec. 12-55. Health clubs.
Every person conducting or engaging in the business of a
health club shall be classified as a personal service and pay for
the privilege an annual license tax provided in this chapter for
such classification.
Sec. 12-56. Junk dealers.
Every person trading in any kind of junk, old metal, rags or
other like commodities shall pay for the privilege an annual
license tax of one hundred twenty-five dollars ($125.00); and for
each canvasser or agent canvassing the city for the purpose of
buying junk or other secondhand materials, for a principal or for
themselves, an annual license tax of one hundred twenty-five
dollars ($125.00) shall be paid for the privilege, neither of which
taxes shall be prorated. A person doing business under this
section shall give bond in the amount of one thousand dollars
($1,000.00) for his faithful compliance with the law, the bond to
be delivered to the city clerk upon the issuance of the license.
The city commissioner of the revenue shall immediately notify
the chief of city police in writing of any license issued under the
terms of this section.
Sec. 12-57. Wall signs and billboards.
Every person engaged in the business of wall sign or billboard
painting or posting or the rental of space or facilities for such
signs or billboards shall pay for the privilege an annual license
tax of fifty dollars ($50.00) for each such wall sign or billboard,
which tax shall not be prorated. Wall signs or billboards shall be
as defined in Chapter 26 of this Code.
2. BE IT FURTHER ORDAINED that it is the intention of the city
council that the sections, paragraphs, sentences, clauses, and
phrases of this Ordinance are severable, and if any phrase, clause,
sentence, paragraph, or section of this Ordinance shall be declared
invalid by the valid judgement or decree of a court of competent
jurisdiction, such invalidation shall not affect any of the
remaining phrases, clauses, sentences, paragraphs and sections of
this Ordinance.
3. BE IT FURTHER ORDAINED that this Ordinance shall become
effective on January 1, 1997.
INTRODUCED:
PUBLIC HEARING:
ENACTED:
November 12, 1996
November 26, 1996
November 26, 1996
DATE