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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 340. Intangible Personal Property Tax Regulations
11/23/2024

23VAC10-340-40. Exempt professions and businesses: how property used therein taxable.

A. Generally. Professions regulated by state law, industrial development corporations organized pursuant to the terms of §§ 13.1-140 through 13.1-155 of the Code of Virginia and farming businesses are exempt from state intangible personal property.

B. Exempt trades or businesses. Trades or businesses specifically exempt from intangible personal property tax, with references to the code sections providing the exemptions, are listed below:

1. Banks and trust companies (§ 58.1-1202 of the Code of Virginia).

2. Farming business and business of growing nursery products.

3. Insurance companies (§ 58.1-2508 of the Code of Virginia). The exemption applies only to insurance companies subject to state license tax on gross premium income.

4. Merchants (§§ 58.1-3000, 58.1-3509, and 58.1-3510 of the Code of Virginia).

5. Oyster packers (§ 28.1-119 of the Code of Virginia).

6. Professional associations and professional corporations (§ 13.1-554.1 of the Code of Virginia) regulated by law which render personal services to the public. Professional services, for purposes of this exemption are the personal services rendered by architects, attorneys-at-law, certified public accountants, dentists, engineers, medical doctors and veterinary surgeons. Other businesses and occupations rendering personal services, even if regulated by state law, are taxable on inventory as defined in 23VAC10-340-20.

7. Public service corporations (Chapter 26 of Title 58.1 of the Code of Virginia). The exemption applies to telegraph and telephone companies and water or heat, light and power companies.

8. Restaurant keepers and caterers (§ 58.1-3000 of the Code of Virginia). Restaurant keepers and caterers are classified as merchants for purposes of this tax.

9. Repair shops of automobile and truck dealers (§ 58.1-3510 of the Code of Virginia). The service departments of motor vehicle dealerships are subject to local merchants' capital tax and are exempt from state tax on capital not otherwise taxed. This is applicable only to dealers in motor vehicles subject to Virginia Motor Vehicle Sales and Use Tax.

Statutory Authority

§§ 58.1-203 and 58.1-1103 of the Code of Virginia.

Historical Notes

Derived from VR630-16-1103, eff. January 1, 1985.

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