Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 500. Business, Professional and Occupational License Tax Regulations

23VAC10-500-40. Exemptions from the BPOL tax.

A. Section 58.1-3703 C of the Code of Virginia prohibits local taxation of certain privileges that would otherwise be taxable. Those privileges are detailed in § 58.1-3703 C of the Code of Virginia. Localities may not impose a license tax or fee on certain persons and privileges that include, but are not limited to, the following:

1. Certain public service corporations and motor carriers, common carriers, and other carriers of passengers or property formerly certified by the Interstate Commerce Commission or presently registered for insurance purposes with the Surface Transportation Board of the United States Department of Transportation, Federal Highway Administration;

2. The privilege of selling farm or domestic products or nursery products, or the planting of nursery products, as an incident to the sale thereof, outside of the regular market houses and sheds of such county, city or town, provided such products are grown or produced by the person offering them for sale;

3. The privilege of printing or publishing any newspaper, magazine, newsletter or other publication issued daily or regularly at average intervals not exceeding three months, provided the publication's subscription sales are exempt from state sales tax, or the privilege or right of operating or conducting any radio or television broadcasting station or service;

4. Manufacturers for the privilege of manufacturing and selling goods, wares and merchandise at wholesale at the place of manufacture;

5. Persons severing minerals from the earth for the privilege of selling the severed mineral at wholesale at the place of severance, except as provided in §§ 58.1-3712 and 58.1-3713 of the Code of Virginia;

6. A wholesaler for the privilege of selling goods, wares and merchandise to other persons for resale unless such wholesaler has a definite place of business or store in such county, city or town;

7. The privilege of renting, as the owner of such property, real property (except in certain grandfathered localities) other than hotels, motels, motor lodges, auto courts, tourist courts, travel trailer parks, lodging houses, rooming houses and boardinghouses;

8. Certain transactions of an entity that is a member of an affiliated group of entities with other members of the same affiliated group (See 23VAC10-500-10 and 23VAC10-500-50);

9. Any insurance company subject to taxation under Chapter 25 (§ 58.1-2500 et seq.) of Title 58.1 of the Code of Virginia or on any agent of such company;

10. Any bank or trust company subject to taxation under Chapter 12 (§ 58.1-1200 et seq.) of Title 58.1 of the Code of Virginia;

11. Certain nonprofit and charitable nonprofit organizations, which are defined separately in 23VAC10-500-10. As the kinds and sources of funds flowing to either nonprofit or charitable nonprofit organizations are different for purposes of the exemption from the BPOL tax;

12. Any venture capital fund or other investment fund, except commissions and fees of such funds;

13. On total assessments paid by condominium unit owners for common expenses; and

14. On or measured by receipts of a qualifying transportation facility directly or indirectly owned or title to which is held by the Commonwealth or any political subdivision thereof or by the United States as described in § 58.1-3606.1 of the Code of Virginia and developed and/or operated pursuant to a concession under the Public-Private Transportation Act of 1995 (§ 56-556 et seq. of the Code of Virginia) or similar federal law.

B. See also, e.g., §§ 58.1-3703 B, 58.1-3712 through 58.1-3713.4, 58.1-3717 through 58.1-3721, and 58.1-3724 through 58.1-3730 of the Code of Virginia, which discuss specific types of businesses that are exempt from the local license tax. See also §§ 58.1-3714, 58.1-3715, and 58.1-3716 of the Code of Virginia. Also § 58.1-3731 of the Code of Virginia discusses BPOL taxes on specific types of public service companies.

Statutory Authority

§ 58.1-3701 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 24, Issue 23, eff. October 6, 2008.

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