{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3703.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3703.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3703.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3703.1.html"}],"law_id":73408,"edition_id":1,"section_id":73408,"structure_id":13305,"section_number":"58.1-3703.1","catch_line":"Uniform ordinance provisions","history":"1996, cc. 715, 720; 1997, c. 732; 2002, c. 364; 2005, c. 927; 2006, cc. 119, 181, 611; 2014, c. 27; 2020, c. 242; 2023, c. 14.","full_text":"A\n\nEvery ordinance levying a license tax pursuant to this chapter shall include provisions substantially similar to this subsection. As they apply to license taxes, the provisions required by this section shall override any limitations or requirements in Chapter 39 (\u00a7 58.1-3900 et seq.) to the extent that they are in conflict.1\n\nLicense requirement. Every person shall apply for a license for each business or profession when engaging in a business in this jurisdiction if (i) the person has a definite place of business in this jurisdiction; (ii) there is no definite place of business anywhere and the person resides in this jurisdiction; or (iii) there is no definite place of business in this jurisdiction but the person operates amusement machines or is classified as an itinerant merchant, peddler, carnival, circus, contractor subject to § 58.1-3715, or public service corporation. A separate license shall be required for each definite place of business and for each business. A person engaged in two or more businesses or professions carried on at the same place of business may elect to obtain one license for all such businesses and professions if all of the following criteria are satisfied: (a) each business or profession is subject to licensure at the location and has satisfied any requirements imposed by state law or other provisions of the ordinances of this jurisdiction; (b) all of the businesses or professions are subject to the same tax rate, or, if subject to different tax rates, the licensee agrees to be taxed on all businesses and professions at the highest rate; and (c) the taxpayer agrees to supply such information as the assessor may require concerning the nature of the several businesses and their gross receipts.\n\t\t\t\tNotwithstanding the foregoing, the governing body of any county, city, or town with a population greater than 50,000 may waive the license requirements provided herein for businesses with gross receipts of $200,000 or less.2\n\nDue dates and penalties.\n\t\t\t\ta. Each person subject to a license tax shall apply for a license prior to beginning business if he was not subject to licensure in this jurisdiction on or before January 1 of the license year, or no later than March 1 of the license year if he had been issued a license for the preceding year. Any locality is authorized to adopt a later application date that is on or before May 1 of the license year. The application shall be on forms prescribed by the assessing official, which forms and accompanying communications shall clearly set out the due date for the application and the amount of any penalty to be charged for late filing of the application, the underpayment of estimated tax, and late payment of tax.\n\t\t\t\tb. The tax shall be paid with the application in the case of any license not based on gross receipts. If the tax is measured by the gross receipts of the business, the tax shall be paid on or before the locality’s fixed due date for filing license applications or a later date, including installment payment dates, or 30 or more days after beginning business, at the locality’s option.\n\t\t\t\tc. The assessing official 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 tax; the 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 10 percent of the portion paid after the due date.\n\t\t\t\td. A penalty of 10 percent of the tax may be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due date. Only the late filing penalty shall be imposed by the assessing official if both the application and payment are late; however, both penalties may be assessed if the assessing official determines that the taxpayer has a history of noncompliance. In the case of an assessment of additional tax made by the assessing official, 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 assessing official is not paid within 30 days, the treasurer or other collecting official may impose a 10 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 official who assessed them. 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.\n\t\t\t\t“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.\n\t\t\t\t“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 assessing official who was aware of the relevant facts relating to the taxpayer’s business when he provided the erroneous information.\n\t\t\t\te. 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 assessing official is found to be erroneous, all interest and any penalties 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 BPOL tax from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at the same rate charged under § 58.1-3916.\n\t\t\t\tNo 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 30 days from the date of the payment that created the refund or the due date of the tax, whichever is later.\n\t\t\t\tf. Any bill issued by the treasurer or other collecting official that includes, and any communication from the assessing official that imposes, a penalty pursuant to subdivision c or d or interest pursuant to subdivision e shall separately state the total amount of tax owed, the amount of any interest assessed, and the amount of the penalty imposed.3\n\nSitus of gross receipts.\n\t\t\t\ta. General rule. Whenever the tax imposed by this ordinance 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 this jurisdiction. 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\n\nThe gross receipts of a contractor shall be attributed to the definite place of business at which his services are performed, or if his services are not performed at any definite place of business, then the definite place of business from which his services are directed or controlled, unless the contractor is subject to the provisions of § 58.1-3715;2\n\nThe 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\n\nThe 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; and4\n\nThe 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.\n\t\t\t\t\tb. Apportionment. If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts should be attributed under the general rule, 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 this jurisdiction 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.\n\t\t\t\t\tc. Agreements. The assessor 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 assessor 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 assessor or taxpayer may seek an advisory opinion from the Department of Taxation pursuant to § 58.1-3701; notice of the request shall be given to the other party. Notwithstanding the provisions of § 58.1-3993, 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 § 58.1-3986, 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.4\n\nLimitations and extensions.\n\t\t\t\ta. Where, before the expiration of the time prescribed for the assessment of any license tax imposed pursuant to this ordinance, both the assessing official 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.\n\t\t\t\tb. Notwithstanding § 58.1-3903, the assessing official shall assess the local license tax omitted because of fraud or failure to apply for a license for the current license year and the six preceding license years.\n\t\t\t\tc. The period for collecting any local license tax shall not expire prior to the period specified in § 58.1-3940, two years after the date of assessment if the period for assessment has been extended pursuant to this subdivision, two years after the final determination of an appeal for which collection has been stayed pursuant to subdivision 5 b or d, or two years after the final decision in a court application pursuant to § 58.1-3984 or a similar law for which collection has been stayed, whichever is later.5\n\nAdministrative appeals to commissioner of the revenue or other assessing official.\n\t\t\t\ta. Definitions. For purposes of this section:\n\t\t\t\t“Amount in dispute,” when used with respect to taxes due or assessed, means the amount specifically identified in the administrative appeal or application for judicial review as disputed by the party filing such appeal or application.\n\t\t\t\t“Appealable event” means an increase in the assessment of a local license tax payable by a taxpayer, the denial of a refund, or the assessment of a local license tax where none previously was assessed, arising out of the local assessing official’s (i) examination of records, financial statements, books of account, or other information for the purpose of determining the correctness of an assessment; (ii) determination regarding the rate or classification applicable to the licensable business; (iii) assessment of a local license tax when no return has been filed by the taxpayer; or (iv) denial of an application for correction of erroneous assessment attendant to the filing of an amended application for license.\n\t\t\t\tAn appealable event shall include a taxpayer’s appeal of the classification applicable to a business, including whether the business properly falls within a business license subclassification established by the locality, regardless of whether the taxpayer’s appeal is in conjunction with an assessment, examination, audit, or any other action taken by the locality.\n\t\t\t\t“Frivolous” means a finding, based on specific facts, that the party asserting the appeal is unlikely to prevail upon the merits because the appeal is (i) not well grounded in fact; (ii) not warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; (iii) interposed for an improper purpose, such as to harass, to cause unnecessary delay in the payment of tax or a refund, or to create needless cost from the litigation; or (iv) otherwise frivolous.\n\t\t\t\t“Jeopardized by delay” means a finding, based upon specific facts, that a taxpayer designs to (i) depart quickly from the locality; (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.\n\t\t\t\tb. Filing and contents of administrative appeal. Any person assessed with a local license tax as a result of an appealable event as defined in this section may file an administrative appeal of the assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of the appealable event, whichever is later, with the commissioner of the revenue or other local assessing official. The appeal must be filed in good faith and sufficiently identify the taxpayer, the tax periods covered by the challenged assessments, the amount in dispute, the 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 assessor may hold a conference with the taxpayer if requested by the taxpayer, or require submission of additional information and documents, an audit or further audit, or other evidence deemed necessary for a proper and equitable determination of the appeal. The assessment placed at issue in the appeal shall be deemed prima facie correct. The assessor shall undertake a full review of the taxpayer’s claims and issue a written determination to the taxpayer setting forth the facts and arguments in support of his decision.\n\t\t\t\tThe taxpayer may at any time also file an administrative appeal of the classification applicable to the taxpayer’s business, including whether the business properly falls within a business license subclassification established by the locality. However, the appeal of the classification of the business shall not apply to any license year for which the Tax Commissioner has previously issued a final determination relating to any license fee or license tax imposed upon the taxpayer’s business for the year. In addition, any appeal of the classification of a business shall in no way affect or change any limitations period prescribed by law for appealing an assessment.\n\t\t\t\tc. Notice of right of appeal and procedures. Every assessment made by a commissioner of the revenue or other assessing official pursuant to an appealable event shall include or be accompanied by a written explanation of the taxpayer’s right to file an administrative appeal and the specific procedures to be followed in the jurisdiction, the name and address to which the appeal should be directed, an explanation of the required content of the appeal, and the deadline for filing the appeal.\n\t\t\t\tFor purposes of facilitating an administrative appeal of the classification applicable to a taxpayer’s business, each locality imposing a tax or fee under this chapter shall maintain on its website the specific procedures to be followed in the jurisdiction with regard to such appeal and the name and address to which the appeal should be directed.\n\t\t\t\td. Suspension of collection activity during appeal. Provided a timely and complete administrative appeal is filed, collection activity with respect to the amount in dispute relating to any assessment by the commissioner of the revenue or other assessing official shall be suspended until a final determination is issued by the commissioner of the revenue or other assessing official, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official that the taxpayer has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal is frivolous as defined in this section. Interest shall accrue in accordance with the provisions of subdivision e, but no further penalty shall be imposed while collection action is suspended.\n\t\t\t\te. Procedure in event of nondecision. Any taxpayer whose administrative appeal to the commissioner of the revenue or other assessing official pursuant to the provisions of this subdivision 5 has been pending for more than one year without the issuance of a final determination may, upon not less than 30 days’ written notice to the commissioner of the revenue or other assessing official, elect to treat the appeal as denied and appeal the assessment or classification of the taxpayer’s business to the Tax Commissioner in accordance with the provisions of subdivision 6. The Tax Commissioner shall not consider an appeal filed pursuant to the provisions of this subsection if he finds that the absence of a final determination on the part of the commissioner of the revenue or other assessing official was caused by the willful failure or refusal of the taxpayer to provide information requested and reasonably needed by the commissioner or other assessing official to make his determination.6\n\nAdministrative appeal to the Tax Commissioner.\n\t\t\t\ta. Any person assessed with a local license tax as a result of a determination or that has received a determination with regard to the person’s appeal of the license classification or subclassification applicable to the person’s business, upon an administrative appeal to the commissioner of the revenue or other assessing official pursuant to subdivision 5, that is adverse to the position asserted by the taxpayer in such appeal may appeal such assessment or determination to the Tax Commissioner within 90 days of the date of the determination by the commissioner of the revenue or other assessing official. The appeal shall be in such form as the Tax Commissioner may prescribe and the taxpayer shall serve a copy of the appeal upon the commissioner of the revenue or other assessing official. The Tax Commissioner shall permit the commissioner of the revenue or other assessing official to participate in the proceedings, and shall issue a determination to the taxpayer within 90 days of receipt of the taxpayer’s application, unless the taxpayer and the assessing official are notified that a longer period will be required. The appeal shall proceed in the same manner as an application pursuant to \u00a7 58.1-1821, and the Tax Commissioner pursuant to \u00a7 58.1-1822 may issue an order correcting such assessment or correcting the license classification or subclassification of the business and the related license tax or fee liability.\n\t\t\t\tb. Suspension of collection activity during appeal. On receipt of a notice of intent to file an appeal to the Tax Commissioner under subdivision a, collection activity with respect to the amount in dispute relating to any assessment by the commissioner of the revenue or other assessing official shall be suspended until a final determination is issued by the Tax Commissioner, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official, or the Tax Commissioner, that the taxpayer has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal is frivolous as defined in this section. Interest shall accrue in accordance with the provisions of subdivision 2 e, but no further penalty shall be imposed while collection action is suspended. The requirement that collection activity be suspended shall cease unless an appeal pursuant to subdivision a is filed and served on the necessary parties within 30 days of the service of notice of intent to file such appeal.\n\t\t\t\tc. Implementation of determination of Tax Commissioner. Promptly upon receipt of the final determination of the Tax Commissioner with respect to an appeal pursuant to subdivision a, the commissioner of the revenue or other assessing official shall take those steps necessary to calculate the amount of tax owed by or refund due to the taxpayer consistent with the Tax Commissioner’s determination and shall provide that information to the taxpayer and to the treasurer or other official responsible for collection in accordance with the provisions of this subdivision.1\n\nIf the determination of the Tax Commissioner sets forth a specific amount of tax due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a bill to the taxpayer for such amount due, together with interest accrued and penalty, if any is authorized by this section, within 30 days of the date of the determination of the Tax Commissioner.2\n\nIf the determination of the Tax Commissioner sets forth a specific amount of refund due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a payment to the taxpayer for such amount due, together with interest accrued pursuant to this section, within 30 days of the date of the determination of the Tax Commissioner.3\n\nIf the determination of the Tax Commissioner does not set forth a specific amount of tax due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment that will result in an obligation to pay a tax that has not previously been paid in full, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment, and provide the same to the taxpayer within 60 days of the date of the determination of the Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional information requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a bill to the taxpayer for the amount due, together with interest accrued and penalty, if any is authorized by this section, within 30 days of the date of the new assessment.4\n\nIf the determination of the Tax Commissioner does not set forth a specific amount of refund due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment that will result in an obligation on the part of the locality to make a refund of taxes previously paid, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment or to determine the amount of refund due in the case of a correction to the license classification or subclassification of the business, and provide the same to the taxpayer within 60 days of the date of the determination of the Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional information requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment or refund amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a refund to the taxpayer for the amount of tax due, together with interest accrued, within 30 days of the date of the new assessment or determination of the amount of the refund.7\n\nJudicial review of determination of Tax Commissioner.\n\t\t\t\ta. Judicial review. Following the issuance of a final determination of the Tax Commissioner pursuant to subdivision 6 a, the taxpayer or commissioner of the revenue or other assessing official may apply to the appropriate circuit court for judicial review of the determination, or any part thereof, pursuant to \u00a7 58.1-3984. In any such proceeding for judicial review of a determination of the Tax Commissioner, the burden shall be on the party challenging the determination of the Tax Commissioner, or any part thereof, to show that the ruling of the Tax Commissioner is erroneous with respect to the part challenged. 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.\n\t\t\t\tb. Suspension of payment of disputed amount of tax due upon taxpayer’s notice of intent to initiate judicial review.1\n\nOn receipt of a notice of intent to file an application for judicial review, pursuant to § 58.1-3984, of a determination of the Tax Commissioner pursuant to subdivision 6 a, and upon payment of the amount of the tax relating to any assessment by the commissioner of the revenue or other assessing official that is not in dispute together with any penalty and interest then due with respect to such undisputed portion of the tax, the treasurer or other collection official shall further suspend collection activity while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that (i) the taxpayer’s application for judicial review is frivolous, as defined in this section; (ii) collection would be jeopardized by delay, as defined in this section; or (iii) suspension of collection would cause substantial economic hardship to the locality. For purposes of determining whether substantial economic hardship to the locality would arise from a suspension of collection activity, the court shall consider the cumulative effect of then-pending appeals filed within the locality by different taxpayers that allege common claims or theories of relief.2\n\nUpon a determination that the appeal is frivolous, that collection may be jeopardized by delay, or that suspension of collection would result in substantial economic hardship to the locality, the court may require the taxpayer to pay the amount in dispute or a portion thereof, or to provide surety for payment of the amount in dispute in a form acceptable to the court.3\n\nNo suspension of collection activity shall be required if the application for judicial review fails to identify with particularity the amount in dispute or the application does not relate to any assessment by the commissioner of the revenue or other assessing official.4\n\nThe requirement that collection activity be suspended shall cease unless an application for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days of the service of the notice of intent to file such application.5\n\nThe suspension of collection activity authorized by this subdivision shall not be applicable to any appeal of a local license tax that is initiated by the direct filing of an action pursuant to § 58.1-3984 without prior exhaustion of the appeals provided by subdivisions 5 and 6.\n\t\t\t\t\tc. Suspension of payment of disputed amount of refund due upon locality’s notice of intent to initiate judicial review.1\n\nPayment of any refund determined to be due pursuant to the determination of the Tax Commissioner of an appeal pursuant to subdivision 6 a shall be suspended if the locality assessing the tax serves upon the taxpayer, within 60 days of the date of the determination of the Tax Commissioner, a notice of intent to file an application for judicial review of the Tax Commissioner’s determination pursuant to § 58.1-3984 and pays the amount of the refund not in dispute, including tax and accrued interest. Payment of such refund shall remain suspended while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that the locality’s application for judicial review is frivolous, as defined in this section.2\n\nNo suspension of refund activity shall be permitted if the locality’s application for judicial review fails to identify with particularity the amount in dispute.3\n\nThe suspension of the obligation to make a refund shall cease unless an application for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days of the service of the notice of intent to file such application.\n\t\t\t\t\td. Accrual of interest on unpaid amount of tax. Interest shall accrue in accordance with the provisions of subdivision 2 e, but no further penalty shall be imposed while collection action is suspended.8\n\nRulings.\n\t\t\t\tAny taxpayer or authorized representative of a taxpayer may request a written ruling regarding the application of a local license tax to a specific situation from the commissioner of the revenue or other assessing official. Any person requesting such a ruling must provide all facts relevant to the situation placed at issue and may present a rationale for the basis of an interpretation of the law most favorable to the taxpayer. In addition, the taxpayer or authorized representative may request a written ruling with regard to the classification applicable to the taxpayer’s business, including whether the business properly falls within a business license subclassification established by the locality.\n\t\t\t\tAny 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 assessor 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.9\n\nRecordkeeping and audits. Every person who is assessable with a local license tax shall keep sufficient records to enable the assessor to verify the correctness of the tax paid for the license years assessable and to enable the assessor 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 assessor in order to allow the assessor to establish whether a particular receipt is directly attributable to the taxable privilege exercised within this jurisdiction. The assessor 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 this jurisdiction, copies of the appropriate books and records shall be sent to the assessor’s office upon demand.B\n\nTransitional provisions.1\n\nA locality which changes its license year from a fiscal year to a calendar year and adopts a due date for license applications between March 1 and May 1, inclusive, shall not be required to prorate any license tax to reflect a license year of less than 12 months, whether the tax is a flat amount or measured by gross receipts, provided that no change is made in the taxable year for measuring gross receipts.2\n\nThe provisions of this section relating to penalties, interest, and administrative and judicial review of an assessment shall be applicable to assessments made on and after January 1, 1997, even if for an earlier license year. The provisions relating to agreements extending the period for assessing tax shall be effective for agreements entered into on and after July 1, 1996. The provisions permitting an assessment of a license tax for up to six preceding years in certain circumstances shall not be construed to permit the assessment of tax for a license year beginning before January 1, 1997.3\n\nEvery locality shall adopt a fixed due date for license applications between March 1 and May 1, inclusive, no later than the 2007 license year.","order_by":null,"text":{"0":{"id":264163,"text":"Every ordinance levying a license tax pursuant to this chapter shall include provisions substantially similar to this subsection. As they apply to license taxes, the provisions required by this section shall override any limitations or requirements in Chapter 39 (\u00a7 58.1-3900 et seq.) to the extent that they are in conflict.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":264164,"text":"License requirement. Every person shall apply for a license for each business or profession when engaging in a business in this jurisdiction if (i) the person has a definite place of business in this jurisdiction; (ii) there is no definite place of business anywhere and the person resides in this jurisdiction; or (iii) there is no definite place of business in this jurisdiction but the person operates amusement machines or is classified as an itinerant merchant, peddler, carnival, circus, contractor subject to § 58.1-3715, or public service corporation. A separate license shall be required for each definite place of business and for each business. A person engaged in two or more businesses or professions carried on at the same place of business may elect to obtain one license for all such businesses and professions if all of the following criteria are satisfied: (a) each business or profession is subject to licensure at the location and has satisfied any requirements imposed by state law or other provisions of the ordinances of this jurisdiction; (b) all of the businesses or professions are subject to the same tax rate, or, if subject to different tax rates, the licensee agrees to be taxed on all businesses and professions at the highest rate; and (c) the taxpayer agrees to supply such information as the assessor may require concerning the nature of the several businesses and their gross receipts.\n\t\t\t\tNotwithstanding the foregoing, the governing body of any county, city, or town with a population greater than 50,000 may waive the license requirements provided herein for businesses with gross receipts of $200,000 or less.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":264165,"text":"Due dates and penalties.\n\t\t\t\ta. Each person subject to a license tax shall apply for a license prior to beginning business if he was not subject to licensure in this jurisdiction on or before January 1 of the license year, or no later than March 1 of the license year if he had been issued a license for the preceding year. Any locality is authorized to adopt a later application date that is on or before May 1 of the license year. The application shall be on forms prescribed by the assessing official, which forms and accompanying communications shall clearly set out the due date for the application and the amount of any penalty to be charged for late filing of the application, the underpayment of estimated tax, and late payment of tax.\n\t\t\t\tb. The tax shall be paid with the application in the case of any license not based on gross receipts. If the tax is measured by the gross receipts of the business, the tax shall be paid on or before the locality’s fixed due date for filing license applications or a later date, including installment payment dates, or 30 or more days after beginning business, at the locality’s option.\n\t\t\t\tc. The assessing official 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 tax; the 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 10 percent of the portion paid after the due date.\n\t\t\t\td. A penalty of 10 percent of the tax may be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due date. Only the late filing penalty shall be imposed by the assessing official if both the application and payment are late; however, both penalties may be assessed if the assessing official determines that the taxpayer has a history of noncompliance. In the case of an assessment of additional tax made by the assessing official, 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 assessing official is not paid within 30 days, the treasurer or other collecting official may impose a 10 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 official who assessed them. 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.\n\t\t\t\t“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.\n\t\t\t\t“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 assessing official who was aware of the relevant facts relating to the taxpayer’s business when he provided the erroneous information.\n\t\t\t\te. 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 assessing official is found to be erroneous, all interest and any penalties 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 BPOL tax from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at the same rate charged under § 58.1-3916.\n\t\t\t\tNo 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 30 days from the date of the payment that created the refund or the due date of the tax, whichever is later.\n\t\t\t\tf. Any bill issued by the treasurer or other collecting official that includes, and any communication from the assessing official that imposes, a penalty pursuant to subdivision c or d or interest pursuant to subdivision e shall separately state the total amount of tax owed, the amount of any interest assessed, and the amount of the penalty imposed.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":264166,"text":"Situs of gross receipts.\n\t\t\t\ta. General rule. Whenever the tax imposed by this ordinance 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 this jurisdiction. 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:","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A31"},"4":{"id":264167,"text":"The gross receipts of a contractor shall be attributed to the definite place of business at which his services are performed, or if his services are not performed at any definite place of business, then the definite place of business from which his services are directed or controlled, unless the contractor is subject to the provisions of § 58.1-3715;","type":"section","prefixes":["A","3","1"],"prefix":"1","entire_prefix":"A31","prefix_anchor":"A31","level":3,"prior_prefix":"A3","next_prefix":"A32"},"5":{"id":264168,"text":"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;","type":"section","prefixes":["A","3","2"],"prefix":"2","entire_prefix":"A32","prefix_anchor":"A32","level":3,"prior_prefix":"A31","next_prefix":"A33"},"6":{"id":264169,"text":"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; and","type":"section","prefixes":["A","3","3"],"prefix":"3","entire_prefix":"A33","prefix_anchor":"A33","level":3,"prior_prefix":"A32","next_prefix":"A34"},"7":{"id":264170,"text":"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.\n\t\t\t\t\tb. Apportionment. If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts should be attributed under the general rule, 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 this jurisdiction 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.\n\t\t\t\t\tc. Agreements. The assessor 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 assessor 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 assessor or taxpayer may seek an advisory opinion from the Department of Taxation pursuant to § 58.1-3701; notice of the request shall be given to the other party. Notwithstanding the provisions of § 58.1-3993, 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 § 58.1-3986, 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.","type":"section","prefixes":["A","3","4"],"prefix":"4","entire_prefix":"A34","prefix_anchor":"A34","level":3,"prior_prefix":"A33","next_prefix":"A4"},"8":{"id":264171,"text":"Limitations and extensions.\n\t\t\t\ta. Where, before the expiration of the time prescribed for the assessment of any license tax imposed pursuant to this ordinance, both the assessing official 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.\n\t\t\t\tb. Notwithstanding § 58.1-3903, the assessing official shall assess the local license tax omitted because of fraud or failure to apply for a license for the current license year and the six preceding license years.\n\t\t\t\tc. The period for collecting any local license tax shall not expire prior to the period specified in § 58.1-3940, two years after the date of assessment if the period for assessment has been extended pursuant to this subdivision, two years after the final determination of an appeal for which collection has been stayed pursuant to subdivision 5 b or d, or two years after the final decision in a court application pursuant to § 58.1-3984 or a similar law for which collection has been stayed, whichever is later.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A34","next_prefix":"A5"},"9":{"id":264172,"text":"Administrative appeals to commissioner of the revenue or other assessing official.\n\t\t\t\ta. Definitions. For purposes of this section:\n\t\t\t\t“Amount in dispute,” when used with respect to taxes due or assessed, means the amount specifically identified in the administrative appeal or application for judicial review as disputed by the party filing such appeal or application.\n\t\t\t\t“Appealable event” means an increase in the assessment of a local license tax payable by a taxpayer, the denial of a refund, or the assessment of a local license tax where none previously was assessed, arising out of the local assessing official’s (i) examination of records, financial statements, books of account, or other information for the purpose of determining the correctness of an assessment; (ii) determination regarding the rate or classification applicable to the licensable business; (iii) assessment of a local license tax when no return has been filed by the taxpayer; or (iv) denial of an application for correction of erroneous assessment attendant to the filing of an amended application for license.\n\t\t\t\tAn appealable event shall include a taxpayer’s appeal of the classification applicable to a business, including whether the business properly falls within a business license subclassification established by the locality, regardless of whether the taxpayer’s appeal is in conjunction with an assessment, examination, audit, or any other action taken by the locality.\n\t\t\t\t“Frivolous” means a finding, based on specific facts, that the party asserting the appeal is unlikely to prevail upon the merits because the appeal is (i) not well grounded in fact; (ii) not warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; (iii) interposed for an improper purpose, such as to harass, to cause unnecessary delay in the payment of tax or a refund, or to create needless cost from the litigation; or (iv) otherwise frivolous.\n\t\t\t\t“Jeopardized by delay” means a finding, based upon specific facts, that a taxpayer designs to (i) depart quickly from the locality; (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.\n\t\t\t\tb. Filing and contents of administrative appeal. Any person assessed with a local license tax as a result of an appealable event as defined in this section may file an administrative appeal of the assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of the appealable event, whichever is later, with the commissioner of the revenue or other local assessing official. The appeal must be filed in good faith and sufficiently identify the taxpayer, the tax periods covered by the challenged assessments, the amount in dispute, the 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 assessor may hold a conference with the taxpayer if requested by the taxpayer, or require submission of additional information and documents, an audit or further audit, or other evidence deemed necessary for a proper and equitable determination of the appeal. The assessment placed at issue in the appeal shall be deemed prima facie correct. The assessor shall undertake a full review of the taxpayer’s claims and issue a written determination to the taxpayer setting forth the facts and arguments in support of his decision.\n\t\t\t\tThe taxpayer may at any time also file an administrative appeal of the classification applicable to the taxpayer’s business, including whether the business properly falls within a business license subclassification established by the locality. However, the appeal of the classification of the business shall not apply to any license year for which the Tax Commissioner has previously issued a final determination relating to any license fee or license tax imposed upon the taxpayer’s business for the year. In addition, any appeal of the classification of a business shall in no way affect or change any limitations period prescribed by law for appealing an assessment.\n\t\t\t\tc. Notice of right of appeal and procedures. Every assessment made by a commissioner of the revenue or other assessing official pursuant to an appealable event shall include or be accompanied by a written explanation of the taxpayer’s right to file an administrative appeal and the specific procedures to be followed in the jurisdiction, the name and address to which the appeal should be directed, an explanation of the required content of the appeal, and the deadline for filing the appeal.\n\t\t\t\tFor purposes of facilitating an administrative appeal of the classification applicable to a taxpayer’s business, each locality imposing a tax or fee under this chapter shall maintain on its website the specific procedures to be followed in the jurisdiction with regard to such appeal and the name and address to which the appeal should be directed.\n\t\t\t\td. Suspension of collection activity during appeal. Provided a timely and complete administrative appeal is filed, collection activity with respect to the amount in dispute relating to any assessment by the commissioner of the revenue or other assessing official shall be suspended until a final determination is issued by the commissioner of the revenue or other assessing official, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official that the taxpayer has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal is frivolous as defined in this section. Interest shall accrue in accordance with the provisions of subdivision e, but no further penalty shall be imposed while collection action is suspended.\n\t\t\t\te. Procedure in event of nondecision. Any taxpayer whose administrative appeal to the commissioner of the revenue or other assessing official pursuant to the provisions of this subdivision 5 has been pending for more than one year without the issuance of a final determination may, upon not less than 30 days’ written notice to the commissioner of the revenue or other assessing official, elect to treat the appeal as denied and appeal the assessment or classification of the taxpayer’s business to the Tax Commissioner in accordance with the provisions of subdivision 6. The Tax Commissioner shall not consider an appeal filed pursuant to the provisions of this subsection if he finds that the absence of a final determination on the part of the commissioner of the revenue or other assessing official was caused by the willful failure or refusal of the taxpayer to provide information requested and reasonably needed by the commissioner or other assessing official to make his determination.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"10":{"id":264173,"text":"Administrative appeal to the Tax Commissioner.\n\t\t\t\ta. Any person assessed with a local license tax as a result of a determination or that has received a determination with regard to the person’s appeal of the license classification or subclassification applicable to the person’s business, upon an administrative appeal to the commissioner of the revenue or other assessing official pursuant to subdivision 5, that is adverse to the position asserted by the taxpayer in such appeal may appeal such assessment or determination to the Tax Commissioner within 90 days of the date of the determination by the commissioner of the revenue or other assessing official. The appeal shall be in such form as the Tax Commissioner may prescribe and the taxpayer shall serve a copy of the appeal upon the commissioner of the revenue or other assessing official. The Tax Commissioner shall permit the commissioner of the revenue or other assessing official to participate in the proceedings, and shall issue a determination to the taxpayer within 90 days of receipt of the taxpayer’s application, unless the taxpayer and the assessing official are notified that a longer period will be required. The appeal shall proceed in the same manner as an application pursuant to \u00a7 58.1-1821, and the Tax Commissioner pursuant to \u00a7 58.1-1822 may issue an order correcting such assessment or correcting the license classification or subclassification of the business and the related license tax or fee liability.\n\t\t\t\tb. Suspension of collection activity during appeal. On receipt of a notice of intent to file an appeal to the Tax Commissioner under subdivision a, collection activity with respect to the amount in dispute relating to any assessment by the commissioner of the revenue or other assessing official shall be suspended until a final determination is issued by the Tax Commissioner, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official, or the Tax Commissioner, that the taxpayer has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal is frivolous as defined in this section. Interest shall accrue in accordance with the provisions of subdivision 2 e, but no further penalty shall be imposed while collection action is suspended. The requirement that collection activity be suspended shall cease unless an appeal pursuant to subdivision a is filed and served on the necessary parties within 30 days of the service of notice of intent to file such appeal.\n\t\t\t\tc. Implementation of determination of Tax Commissioner. Promptly upon receipt of the final determination of the Tax Commissioner with respect to an appeal pursuant to subdivision a, the commissioner of the revenue or other assessing official shall take those steps necessary to calculate the amount of tax owed by or refund due to the taxpayer consistent with the Tax Commissioner’s determination and shall provide that information to the taxpayer and to the treasurer or other official responsible for collection in accordance with the provisions of this subdivision.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A61"},"11":{"id":264174,"text":"If the determination of the Tax Commissioner sets forth a specific amount of tax due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a bill to the taxpayer for such amount due, together with interest accrued and penalty, if any is authorized by this section, within 30 days of the date of the determination of the Tax Commissioner.","type":"section","prefixes":["A","6","1"],"prefix":"1","entire_prefix":"A61","prefix_anchor":"A61","level":3,"prior_prefix":"A6","next_prefix":"A62"},"12":{"id":264175,"text":"If the determination of the Tax Commissioner sets forth a specific amount of refund due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a payment to the taxpayer for such amount due, together with interest accrued pursuant to this section, within 30 days of the date of the determination of the Tax Commissioner.","type":"section","prefixes":["A","6","2"],"prefix":"2","entire_prefix":"A62","prefix_anchor":"A62","level":3,"prior_prefix":"A61","next_prefix":"A63"},"13":{"id":264176,"text":"If the determination of the Tax Commissioner does not set forth a specific amount of tax due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment that will result in an obligation to pay a tax that has not previously been paid in full, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment, and provide the same to the taxpayer within 60 days of the date of the determination of the Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional information requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a bill to the taxpayer for the amount due, together with interest accrued and penalty, if any is authorized by this section, within 30 days of the date of the new assessment.","type":"section","prefixes":["A","6","3"],"prefix":"3","entire_prefix":"A63","prefix_anchor":"A63","level":3,"prior_prefix":"A62","next_prefix":"A64"},"14":{"id":264177,"text":"If the determination of the Tax Commissioner does not set forth a specific amount of refund due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment that will result in an obligation on the part of the locality to make a refund of taxes previously paid, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment or to determine the amount of refund due in the case of a correction to the license classification or subclassification of the business, and provide the same to the taxpayer within 60 days of the date of the determination of the Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional information requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment or refund amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a refund to the taxpayer for the amount of tax due, together with interest accrued, within 30 days of the date of the new assessment or determination of the amount of the refund.","type":"section","prefixes":["A","6","4"],"prefix":"4","entire_prefix":"A64","prefix_anchor":"A64","level":3,"prior_prefix":"A63","next_prefix":"A7"},"15":{"id":264178,"text":"Judicial review of determination of Tax Commissioner.\n\t\t\t\ta. Judicial review. Following the issuance of a final determination of the Tax Commissioner pursuant to subdivision 6 a, the taxpayer or commissioner of the revenue or other assessing official may apply to the appropriate circuit court for judicial review of the determination, or any part thereof, pursuant to \u00a7 58.1-3984. In any such proceeding for judicial review of a determination of the Tax Commissioner, the burden shall be on the party challenging the determination of the Tax Commissioner, or any part thereof, to show that the ruling of the Tax Commissioner is erroneous with respect to the part challenged. 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.\n\t\t\t\tb. Suspension of payment of disputed amount of tax due upon taxpayer’s notice of intent to initiate judicial review.","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A64","next_prefix":"A71"},"16":{"id":264179,"text":"On receipt of a notice of intent to file an application for judicial review, pursuant to § 58.1-3984, of a determination of the Tax Commissioner pursuant to subdivision 6 a, and upon payment of the amount of the tax relating to any assessment by the commissioner of the revenue or other assessing official that is not in dispute together with any penalty and interest then due with respect to such undisputed portion of the tax, the treasurer or other collection official shall further suspend collection activity while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that (i) the taxpayer’s application for judicial review is frivolous, as defined in this section; (ii) collection would be jeopardized by delay, as defined in this section; or (iii) suspension of collection would cause substantial economic hardship to the locality. For purposes of determining whether substantial economic hardship to the locality would arise from a suspension of collection activity, the court shall consider the cumulative effect of then-pending appeals filed within the locality by different taxpayers that allege common claims or theories of relief.","type":"section","prefixes":["A","7","1"],"prefix":"1","entire_prefix":"A71","prefix_anchor":"A71","level":3,"prior_prefix":"A7","next_prefix":"A72"},"17":{"id":264180,"text":"Upon a determination that the appeal is frivolous, that collection may be jeopardized by delay, or that suspension of collection would result in substantial economic hardship to the locality, the court may require the taxpayer to pay the amount in dispute or a portion thereof, or to provide surety for payment of the amount in dispute in a form acceptable to the court.","type":"section","prefixes":["A","7","2"],"prefix":"2","entire_prefix":"A72","prefix_anchor":"A72","level":3,"prior_prefix":"A71","next_prefix":"A73"},"18":{"id":264181,"text":"No suspension of collection activity shall be required if the application for judicial review fails to identify with particularity the amount in dispute or the application does not relate to any assessment by the commissioner of the revenue or other assessing official.","type":"section","prefixes":["A","7","3"],"prefix":"3","entire_prefix":"A73","prefix_anchor":"A73","level":3,"prior_prefix":"A72","next_prefix":"A74"},"19":{"id":264182,"text":"The requirement that collection activity be suspended shall cease unless an application for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days of the service of the notice of intent to file such application.","type":"section","prefixes":["A","7","4"],"prefix":"4","entire_prefix":"A74","prefix_anchor":"A74","level":3,"prior_prefix":"A73","next_prefix":"A75"},"20":{"id":264183,"text":"The suspension of collection activity authorized by this subdivision shall not be applicable to any appeal of a local license tax that is initiated by the direct filing of an action pursuant to § 58.1-3984 without prior exhaustion of the appeals provided by subdivisions 5 and 6.\n\t\t\t\t\tc. Suspension of payment of disputed amount of refund due upon locality’s notice of intent to initiate judicial review.","type":"section","prefixes":["A","7","5"],"prefix":"5","entire_prefix":"A75","prefix_anchor":"A75","level":3,"prior_prefix":"A74","next_prefix":"A71"},"21":{"id":264184,"text":"Payment of any refund determined to be due pursuant to the determination of the Tax Commissioner of an appeal pursuant to subdivision 6 a shall be suspended if the locality assessing the tax serves upon the taxpayer, within 60 days of the date of the determination of the Tax Commissioner, a notice of intent to file an application for judicial review of the Tax Commissioner’s determination pursuant to § 58.1-3984 and pays the amount of the refund not in dispute, including tax and accrued interest. Payment of such refund shall remain suspended while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that the locality’s application for judicial review is frivolous, as defined in this section.","type":"section","prefixes":["A","7","1"],"prefix":"1","entire_prefix":"A71","prefix_anchor":"A71","level":3,"prior_prefix":"A75","next_prefix":"A72"},"22":{"id":264185,"text":"No suspension of refund activity shall be permitted if the locality’s application for judicial review fails to identify with particularity the amount in dispute.","type":"section","prefixes":["A","7","2"],"prefix":"2","entire_prefix":"A72","prefix_anchor":"A72","level":3,"prior_prefix":"A71","next_prefix":"A73"},"23":{"id":264186,"text":"The suspension of the obligation to make a refund shall cease unless an application for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days of the service of the notice of intent to file such application.\n\t\t\t\t\td. Accrual of interest on unpaid amount of tax. Interest shall accrue in accordance with the provisions of subdivision 2 e, but no further penalty shall be imposed while collection action is suspended.","type":"section","prefixes":["A","7","3"],"prefix":"3","entire_prefix":"A73","prefix_anchor":"A73","level":3,"prior_prefix":"A72","next_prefix":"A8"},"24":{"id":264187,"text":"Rulings.\n\t\t\t\tAny taxpayer or authorized representative of a taxpayer may request a written ruling regarding the application of a local license tax to a specific situation from the commissioner of the revenue or other assessing official. Any person requesting such a ruling must provide all facts relevant to the situation placed at issue and may present a rationale for the basis of an interpretation of the law most favorable to the taxpayer. In addition, the taxpayer or authorized representative may request a written ruling with regard to the classification applicable to the taxpayer’s business, including whether the business properly falls within a business license subclassification established by the locality.\n\t\t\t\tAny 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 assessor 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.","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A73","next_prefix":"A9"},"25":{"id":264188,"text":"Recordkeeping and audits. Every person who is assessable with a local license tax shall keep sufficient records to enable the assessor to verify the correctness of the tax paid for the license years assessable and to enable the assessor 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 assessor in order to allow the assessor to establish whether a particular receipt is directly attributable to the taxable privilege exercised within this jurisdiction. The assessor 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 this jurisdiction, copies of the appropriate books and records shall be sent to the assessor’s office upon demand.","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"B"},"26":{"id":264189,"text":"Transitional provisions.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A9","next_prefix":"B1"},"27":{"id":264190,"text":"A locality which changes its license year from a fiscal year to a calendar year and adopts a due date for license applications between March 1 and May 1, inclusive, shall not be required to prorate any license tax to reflect a license year of less than 12 months, whether the tax is a flat amount or measured by gross receipts, provided that no change is made in the taxable year for measuring gross receipts.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"28":{"id":264191,"text":"The provisions of this section relating to penalties, interest, and administrative and judicial review of an assessment shall be applicable to assessments made on and after January 1, 1997, even if for an earlier license year. The provisions relating to agreements extending the period for assessing tax shall be effective for agreements entered into on and after July 1, 1996. The provisions permitting an assessment of a license tax for up to six preceding years in certain circumstances shall not be construed to permit the assessment of tax for a license year beginning before January 1, 1997.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"29":{"id":264192,"text":"Every locality shall adopt a fixed due date for license applications between March 1 and May 1, inclusive, no later than the 2007 license year.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2"}},"ancestry":[{"id":13305,"edition_id":1,"name":"License Taxes","identifier":"37","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:44:36","date_modified":"2026-06-26 03:44:36","permalink":{"id":258139,"object_type":"structure","relational_id":13305,"identifier":"37","token":"58.1\/III\/37","url":"\/58.1\/III\/37\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":71581,"structure_id":13305,"section_number":"58.1-3700","catch_line":"License requirement; requiring evidence of payment of business license, business personal property, meals and admissions taxes","url":"\/58.1-3700\/","token":"58.1\/III\/37\/58.1-3700","metadata":false},{"id":58225,"structure_id":13305,"section_number":"58.1-3700.1","catch_line":"Definitions","url":"\/58.1-3700.1\/","token":"58.1\/III\/37\/58.1-3700.1","metadata":false},{"id":59692,"structure_id":13305,"section_number":"58.1-3701","catch_line":"Department to promulgate guidelines","url":"\/58.1-3701\/","token":"58.1\/III\/37\/58.1-3701","metadata":false},{"id":86624,"structure_id":13305,"section_number":"58.1-3702","catch_line":"Authority of counties, cities and towns","url":"\/58.1-3702\/","token":"58.1\/III\/37\/58.1-3702","metadata":false},{"id":81897,"structure_id":13305,"section_number":"58.1-3703","catch_line":"Counties, cities and towns may impose local license taxes and fees; limitation of authority","url":"\/58.1-3703\/","token":"58.1\/III\/37\/58.1-3703","metadata":false},{"id":73408,"structure_id":13305,"section_number":"58.1-3703.1","catch_line":"Uniform ordinance provisions","url":"\/58.1-3703.1\/","token":"58.1\/III\/37\/58.1-3703.1","metadata":false},{"id":56587,"structure_id":13305,"section_number":"58.1-3703.2","catch_line":"Acceptable identification for business licenses","url":"\/58.1-3703.2\/","token":"58.1\/III\/37\/58.1-3703.2","metadata":false},{"id":70783,"structure_id":13305,"section_number":"58.1-3704","catch_line":"License tax on merchants in lieu of merchants' capital tax","url":"\/58.1-3704\/","token":"58.1\/III\/37\/58.1-3704","metadata":false},{"id":58290,"structure_id":13305,"section_number":"58.1-3705","catch_line":"License tax shall be uniform","url":"\/58.1-3705\/","token":"58.1\/III\/37\/58.1-3705","metadata":false},{"id":56062,"structure_id":13305,"section_number":"58.1-3706","catch_line":" Limitation on rate of license taxes","url":"\/58.1-3706\/","token":"58.1\/III\/37\/58.1-3706","metadata":false},{"id":82151,"structure_id":13305,"section_number":"58.1-3707","catch_line":"Repealed","url":"\/58.1-3707\/","token":"58.1\/III\/37\/58.1-3707","metadata":false},{"id":82296,"structure_id":13305,"section_number":"58.1-3708","catch_line":"Situs for local license taxation of businesses, professions, occupations, etc","url":"\/58.1-3708\/","token":"58.1\/III\/37\/58.1-3708","metadata":false},{"id":64479,"structure_id":13305,"section_number":"58.1-3709","catch_line":"Business located in more than one jurisdiction","url":"\/58.1-3709\/","token":"58.1\/III\/37\/58.1-3709","metadata":false},{"id":69680,"structure_id":13305,"section_number":"58.1-3710","catch_line":"Proration of license taxes","url":"\/58.1-3710\/","token":"58.1\/III\/37\/58.1-3710","metadata":false},{"id":83231,"structure_id":13305,"section_number":"58.1-3711","catch_line":"Limitation on county license tax within boundary of a town","url":"\/58.1-3711\/","token":"58.1\/III\/37\/58.1-3711","metadata":false},{"id":70681,"structure_id":13305,"section_number":"58.1-3712","catch_line":"Counties and cities authorized to levy severance tax on gases","url":"\/58.1-3712\/","token":"58.1\/III\/37\/58.1-3712","metadata":false},{"id":57218,"structure_id":13305,"section_number":"58.1-3712.1","catch_line":"Repealed","url":"\/58.1-3712.1\/","token":"58.1\/III\/37\/58.1-3712.1","metadata":false},{"id":85271,"structure_id":13305,"section_number":"58.1-3713","catch_line":"Local gas road improvement and Virginia Coalfield Economic Development Authority tax","url":"\/58.1-3713\/","token":"58.1\/III\/37\/58.1-3713","metadata":false},{"id":83244,"structure_id":13305,"section_number":"58.1-3713.01","catch_line":"Distribution of local coal and gas road improvement taxes for water and sewer projects applicable to the additional one-fourth allocation","url":"\/58.1-3713.01\/","token":"58.1\/III\/37\/58.1-3713.01","metadata":false},{"id":75681,"structure_id":13305,"section_number":"58.1-3713.1","catch_line":"Repealed","url":"\/58.1-3713.1\/","token":"58.1\/III\/37\/58.1-3713.1","metadata":false},{"id":82194,"structure_id":13305,"section_number":"58.1-3713.3","catch_line":"Validation of local coal and gas severance tax ordinances and local coal and gas road improvement tax ordinances","url":"\/58.1-3713.3\/","token":"58.1\/III\/37\/58.1-3713.3","metadata":false},{"id":71813,"structure_id":13305,"section_number":"58.1-3713.4","catch_line":"Additional one percent tax on gas","url":"\/58.1-3713.4\/","token":"58.1\/III\/37\/58.1-3713.4","metadata":false},{"id":66910,"structure_id":13305,"section_number":"58.1-3713.5","catch_line":"Repealed","url":"\/58.1-3713.5\/","token":"58.1\/III\/37\/58.1-3713.5","metadata":false},{"id":79513,"structure_id":13305,"section_number":"58.1-3714","catch_line":"Contractors; credits against tax; effect upon authority of towns; workers' compensation requirements; penalty","url":"\/58.1-3714\/","token":"58.1\/III\/37\/58.1-3714","metadata":false},{"id":68702,"structure_id":13305,"section_number":"58.1-3715","catch_line":"License requirements for contractors","url":"\/58.1-3715\/","token":"58.1\/III\/37\/58.1-3715","metadata":false},{"id":82041,"structure_id":13305,"section_number":"58.1-3715.1","catch_line":"License requirements for mobile food units","url":"\/58.1-3715.1\/","token":"58.1\/III\/37\/58.1-3715.1","metadata":false},{"id":80440,"structure_id":13305,"section_number":"58.1-3716","catch_line":"Wholesale merchants","url":"\/58.1-3716\/","token":"58.1\/III\/37\/58.1-3716","metadata":false},{"id":68328,"structure_id":13305,"section_number":"58.1-3717","catch_line":"Peddlers; itinerant merchants","url":"\/58.1-3717\/","token":"58.1\/III\/37\/58.1-3717","metadata":false},{"id":59851,"structure_id":13305,"section_number":"58.1-3718","catch_line":"Counties, cities and towns authorized to levy a license tax on peddlers at wholesale","url":"\/58.1-3718\/","token":"58.1\/III\/37\/58.1-3718","metadata":false},{"id":71435,"structure_id":13305,"section_number":"58.1-3719","catch_line":"Limitations on license taxes imposed on peddlers, itinerant merchants and peddlers at wholesale","url":"\/58.1-3719\/","token":"58.1\/III\/37\/58.1-3719","metadata":false},{"id":74267,"structure_id":13305,"section_number":"58.1-3719.1","catch_line":"Direct sellers; rate limitation","url":"\/58.1-3719.1\/","token":"58.1\/III\/37\/58.1-3719.1","metadata":false},{"id":82352,"structure_id":13305,"section_number":"58.1-3720","catch_line":"Amusement machines; gross receipts tax on amusement operators","url":"\/58.1-3720\/","token":"58.1\/III\/37\/58.1-3720","metadata":false},{"id":58872,"structure_id":13305,"section_number":"58.1-3721","catch_line":"License exemptions for coin machine operators","url":"\/58.1-3721\/","token":"58.1\/III\/37\/58.1-3721","metadata":false},{"id":67702,"structure_id":13305,"section_number":"58.1-3722","catch_line":"Stickers to evidence payment of tax","url":"\/58.1-3722\/","token":"58.1\/III\/37\/58.1-3722","metadata":false},{"id":59910,"structure_id":13305,"section_number":"58.1-3723","catch_line":"Penalty","url":"\/58.1-3723\/","token":"58.1\/III\/37\/58.1-3723","metadata":false},{"id":61774,"structure_id":13305,"section_number":"58.1-3724","catch_line":"Bondsmen","url":"\/58.1-3724\/","token":"58.1\/III\/37\/58.1-3724","metadata":false},{"id":66968,"structure_id":13305,"section_number":"58.1-3725","catch_line":"Repealed","url":"\/58.1-3725\/","token":"58.1\/III\/37\/58.1-3725","metadata":false},{"id":70272,"structure_id":13305,"section_number":"58.1-3726","catch_line":"Fortune-tellers, clairvoyants and practitioners of palmistry","url":"\/58.1-3726\/","token":"58.1\/III\/37\/58.1-3726","metadata":false},{"id":55644,"structure_id":13305,"section_number":"58.1-3727","catch_line":"Photographers with no regularly established place of business in the Commonwealth; rate limitations","url":"\/58.1-3727\/","token":"58.1\/III\/37\/58.1-3727","metadata":false},{"id":66687,"structure_id":13305,"section_number":"58.1-3728","catch_line":"Carnivals, circuses, speedways; penalties; certain restrictions","url":"\/58.1-3728\/","token":"58.1\/III\/37\/58.1-3728","metadata":false},{"id":77252,"structure_id":13305,"section_number":"58.1-3729","catch_line":"Permanent coliseums, arenas or auditoriums; limitations","url":"\/58.1-3729\/","token":"58.1\/III\/37\/58.1-3729","metadata":false},{"id":70044,"structure_id":13305,"section_number":"58.1-3730","catch_line":"Savings institutions and credit unions; limitations","url":"\/58.1-3730\/","token":"58.1\/III\/37\/58.1-3730","metadata":false},{"id":62410,"structure_id":13305,"section_number":"58.1-3730.1","catch_line":"Industrial loan associations and agricultural credit associations; limitations","url":"\/58.1-3730.1\/","token":"58.1\/III\/37\/58.1-3730.1","metadata":false},{"id":54294,"structure_id":13305,"section_number":"58.1-3731","catch_line":"Certain public service corporations; rate limitation","url":"\/58.1-3731\/","token":"58.1\/III\/37\/58.1-3731","metadata":false},{"id":58738,"structure_id":13305,"section_number":"58.1-3732","catch_line":"Exclusions and deductions from \"gross receipts.\"","url":"\/58.1-3732\/","token":"58.1\/III\/37\/58.1-3732","metadata":false},{"id":66276,"structure_id":13305,"section_number":"58.1-3732.1","catch_line":"Limitation on gross receipts; pari-mutuel wagering","url":"\/58.1-3732.1\/","token":"58.1\/III\/37\/58.1-3732.1","metadata":false},{"id":84233,"structure_id":13305,"section_number":"58.1-3732.2","catch_line":"Limitation on gross receipts","url":"\/58.1-3732.2\/","token":"58.1\/III\/37\/58.1-3732.2","metadata":false},{"id":72849,"structure_id":13305,"section_number":"58.1-3732.3","catch_line":"Limitation on gross receipts of providers of funeral services","url":"\/58.1-3732.3\/","token":"58.1\/III\/37\/58.1-3732.3","metadata":false},{"id":57213,"structure_id":13305,"section_number":"58.1-3732.4","catch_line":"Limitation on gross receipts; staffing firms","url":"\/58.1-3732.4\/","token":"58.1\/III\/37\/58.1-3732.4","metadata":false},{"id":83140,"structure_id":13305,"section_number":"58.1-3732.5","catch_line":"Limitation on gross receipts of security brokers and dealers","url":"\/58.1-3732.5\/","token":"58.1\/III\/37\/58.1-3732.5","metadata":false},{"id":76010,"structure_id":13305,"section_number":"58.1-3733","catch_line":"License tax on commission merchants","url":"\/58.1-3733\/","token":"58.1\/III\/37\/58.1-3733","metadata":false},{"id":69381,"structure_id":13305,"section_number":"58.1-3734","catch_line":"License tax on motor vehicle dealers","url":"\/58.1-3734\/","token":"58.1\/III\/37\/58.1-3734","metadata":false},{"id":83040,"structure_id":13305,"section_number":"58.1-3734.1","catch_line":"Sales involving trade-ins","url":"\/58.1-3734.1\/","token":"58.1\/III\/37\/58.1-3734.1","metadata":false},{"id":75517,"structure_id":13305,"section_number":"58.1-3735","catch_line":"Departments of license inspection in certain counties","url":"\/58.1-3735\/","token":"58.1\/III\/37\/58.1-3735","metadata":false}],"previous_section":{"id":81897,"structure_id":13305,"section_number":"58.1-3703","catch_line":"Counties, cities and towns may impose local license taxes and fees; limitation of authority","url":"\/58.1-3703\/","token":"58.1\/III\/37\/58.1-3703","metadata":false},"next_section":{"id":56587,"structure_id":13305,"section_number":"58.1-3703.2","catch_line":"Acceptable identification for business licenses","url":"\/58.1-3703.2\/","token":"58.1\/III\/37\/58.1-3703.2","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3703.1\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapters 715<\/a> and 720<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 7 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1997, chapter 732<\/a>; in 2002, chapter 364<\/a>; in 2005, chapter 927<\/a>; in 2006, chapters 119<\/a>, 181<\/a>, and 611<\/a>; in 2014, chapter 27<\/a>; in 2020, chapter 242<\/a>; in 2023, chapter 14<\/a>.<\/p>","references":[{"id":82194,"section_number":"58.1-3713.3","catch_line":"Validation of local coal and gas severance tax ordinances and local coal and gas road improvement tax ordinances","order_by":null,"url":"\/58.1-3713.3\/"},{"id":67917,"section_number":"58.1-3744","catch_line":"Uniform ordinance provisions","order_by":null,"url":"\/58.1-3744\/"},{"id":61894,"section_number":"58.1-3983.1","catch_line":"Appeals and rulings of local taxes","order_by":null,"url":"\/58.1-3983.1\/"},{"id":66459,"section_number":"58.1-3984","catch_line":"Application to court to correct erroneous assessments of local levies generally","order_by":null,"url":"\/58.1-3984\/"},{"id":84655,"section_number":"58.1-3994","catch_line":"Offers in compromise with respect to local taxes","order_by":null,"url":"\/58.1-3994\/"},{"id":84149,"section_number":"58.1-3995","catch_line":"Effect of application for correction of assessment or appeal upon applications for local permits and licenses","order_by":null,"url":"\/58.1-3995\/"}],"refers_to":[{"id":76759,"section_number":"58.1-1821","catch_line":"Application to Tax Commissioner for correction","order_by":null,"url":"\/58.1-1821\/"},{"id":55503,"section_number":"58.1-1822","catch_line":"Action of Tax Commissioner on application for correction","order_by":null,"url":"\/58.1-1822\/"},{"id":59692,"section_number":"58.1-3701","catch_line":"Department to promulgate guidelines","order_by":null,"url":"\/58.1-3701\/"},{"id":68702,"section_number":"58.1-3715","catch_line":"License requirements for contractors","order_by":null,"url":"\/58.1-3715\/"},{"id":75560,"section_number":"58.1-3900","catch_line":"Filing of returns","order_by":null,"url":"\/58.1-3900\/"},{"id":75357,"section_number":"58.1-3903","catch_line":"Omitted local taxes or levies","order_by":null,"url":"\/58.1-3903\/"},{"id":73325,"section_number":"58.1-3916","catch_line":"Counties, cities, and towns may provide dates for filing returns and set penalties, interest, etc","order_by":null,"url":"\/58.1-3916\/"},{"id":72311,"section_number":"58.1-3940","catch_line":"Limitation on collection of local taxes","order_by":null,"url":"\/58.1-3940\/"},{"id":66459,"section_number":"58.1-3984","catch_line":"Application to court to correct erroneous assessments of local levies generally","order_by":null,"url":"\/58.1-3984\/"},{"id":75690,"section_number":"58.1-3986","catch_line":"Correction of double assessments; time for filing","order_by":null,"url":"\/58.1-3986\/"},{"id":81500,"section_number":"58.1-3993","catch_line":"No injunctions against assessment or collection of taxes","order_by":null,"url":"\/58.1-3993\/"}],"permalink":{"id":258161,"object_type":"law","relational_id":73408,"identifier":"58.1-3703.1","token":"58.1\/III\/37\/58.1-3703.1","url":"\/58.1-3703.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3703.1\/","token":"58.1\/III\/37\/58.1-3703.1","dublin_core":{"Title":"Uniform ordinance provisions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3703.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Every ordinance<\/span> levying a license tax pursuant to this chapter shall include provisions substantially similar to this subsection. As they apply to license taxes, the provisions required by this section shall override any limitations or requirements in Chapter 39 (\u00a7 58.1-3900<\/a> et seq.) to the extent that they are in conflict. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> License requirement. Every person shall apply for a license for each business or profession<\/span> when engaging in a business in this jurisdiction<\/span> if (i) the person has a definite place of business<\/span> in this jurisdiction<\/span>; (ii) there is no definite place of business<\/span> anywhere and the person resides in this jurisdiction<\/span>; or (iii) there is no definite place of business<\/span> in this jurisdiction<\/span> but the person operates amusement machines or is classified as an itinerant merchant, peddler, carnival, circus, contractor subject to § 58.1-3715<\/a>, or public service corporation. A separate license shall be required for each definite place of business<\/span> and for each business. A person engaged in two or more businesses or professions<\/span> carried on at the same place of business may elect to obtain one license for all such businesses and professions<\/span> if all of the following criteria are satisfied: (a) each business or profession<\/span> is subject to licensure at the location and has satisfied any requirements imposed by state law<\/span> or other provisions of the ordinances<\/span> of this jurisdiction<\/span>; (b) all of the businesses or professions<\/span> are subject to the same tax rate, or, if subject to different tax rates, the licensee agrees to be taxed on all businesses and professions<\/span> at the highest rate; and (c) the taxpayer<\/span> agrees to supply such information as the assessor may require concerning the nature of the several businesses and their gross receipts<\/span>.\n\t\t\t\tNotwithstanding the foregoing, the governing body of any county, city, or town with a population greater than 50,000 may waive<\/span> the license requirements provided herein for businesses with gross receipts<\/span> of $200,000 or less. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Due dates and penalties.\n\t\t\t\ta. Each person subject to a license tax shall apply for a license prior to beginning business if he was not subject to licensure in this jurisdiction<\/span> on or before January 1 of the license year<\/span>, or no later than March 1 of the license year<\/span> if he had been issued a license for the preceding year. Any locality is authorized to adopt a later application date that is on or before May 1 of the license year<\/span>. The application shall be on forms prescribed by the assessing official, which forms and accompanying communications shall clearly set out the due date for the application and the amount of any penalty<\/span> to be charged for late filing of the application, the underpayment of estimated tax, and late payment of tax.\n\t\t\t\tb. The tax shall be paid with the application in the case of any license not based on gross receipts<\/span>. If the tax is measured by the gross receipts<\/span> of the business, the tax shall be paid on or before the locality’s fixed due date for filing license applications or a later date, including installment payment dates, or 30 or more days after beginning business, at the locality’s option.\n\t\t\t\tc. The assessing official 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 tax; the 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<\/span> of 10 percent of the portion paid after the due date.\n\t\t\t\td. A penalty<\/span> of 10 percent of the tax may be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due date. Only the late filing penalty<\/span> shall be imposed by the assessing official if both the application and payment are late; however, both penalties may be assessed if the assessing official determines that the taxpayer<\/span> has a history of noncompliance. In the case of an assessment<\/span> of additional tax made by the assessing official, 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<\/span>, reckless or intentional disregard of the law<\/span> by the taxpayer<\/span>, there shall be no late payment penalty<\/span> assessed with the additional tax. If any assessment<\/span> of tax by the assessing official is not paid within 30 days, the treasurer or other collecting official may impose a 10 percent late payment penalty<\/span>. If the failure to file or pay was not the fault of the taxpayer<\/span>, the penalties shall not be imposed, or if imposed, shall be abated by the official who assessed them. In order<\/span> to demonstrate lack of fault, the taxpayer<\/span> must show that he acted responsibly<\/span> and that the failure was due to events beyond his control.\n\t\t\t\t“Acted responsibly<\/span>” means that (i) the taxpayer<\/span> 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<\/span> 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.\n\t\t\t\t“Events beyond the taxpayer<\/span>’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<\/span>’s reasonable reliance in good faith upon erroneous written information from the assessing official who was aware of the relevant facts<\/span> relating to the taxpayer<\/span>’s business when he provided the erroneous information.\n\t\t\t\te. 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<\/span> of additional or omitted tax by the assessing official is found to be erroneous, all interest and any penalties charged and collected on the amount of the assessment<\/span> 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 BPOL tax from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at the same rate charged under § 58.1-3916<\/a>.\n\t\t\t\tNo interest shall accrue on an adjustment of estimated tax liability to actual liability at the conclusion of a base year<\/span>. 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 30 days from the date of the payment that created the refund or the due date of the tax, whichever is later.\n\t\t\t\tf. Any bill issued by the treasurer or other collecting official that includes, and any communication from the assessing official that imposes, a penalty<\/span> pursuant to subdivision c or d or interest pursuant to subdivision e shall separately state the total amount of tax owed, the amount of any interest assessed, and the amount of the penalty<\/span> imposed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Situs of gross receipts<\/span>.\n\t\t\t\ta. General rule. Whenever the tax imposed by this ordinance<\/span> is measured by gross receipts<\/span>, the gross receipts<\/span> included in the taxable measure shall be only those gross receipts<\/span> attributed to the exercise of a privilege<\/span> subject to licensure at a definite place of business<\/span> within this jurisdiction<\/span>. In the case of activities conducted outside of a definite place of business<\/span>, such as during a visit to a customer location, the gross receipts<\/span> shall be attributed to the definite place of business<\/span> from which such activities are initiated, directed, or controlled. The situs of gross receipts<\/span> for different classifications of business shall be attributed to one or more definite places of business or offices as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The gross receipts<\/span> of a contractor shall be attributed to the definite place of business<\/span> at which his services are performed, or if his services are not performed at any definite place of business<\/span>, then the definite place of business<\/span> from which his services are directed or controlled, unless the contractor is subject to the provisions of § 58.1-3715<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The gross receipts<\/span> of a retailer or wholesaler shall be attributed to the definite place of business<\/span> at which sales solicitation activities occur, or if sales solicitation activities do not occur at any definite place of business<\/span>, then the definite place of business<\/span> from which sales solicitation activities are directed or controlled; however, a wholesaler or distribution house subject to a license tax measured by purchases<\/span> shall determine the situs of its purchases<\/span> by the definite place of business<\/span> 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<\/span> of Taxation for a determination as to the proper measure of purchases<\/span> and gross receipts<\/span> subject to license tax in each locality; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The gross receipts<\/span> of a business renting tangible personal property shall be attributed to the definite place of business<\/span> from which the tangible personal property is rented or, if the property is not rented from any definite place of business<\/span>, then to the definite place of business<\/span> at which the rental of such property is managed; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The gross receipts<\/span> from the performance of services shall be attributed to the definite place of business<\/span> at which the services are performed or, if not performed at any definite place of business<\/span>, then to the definite place of business<\/span> from which the services are directed or controlled.\n\t\t\t\t\tb. Apportionment. If the licensee has more than one definite place of business<\/span> and it is impractical or impossible to determine to which definite place of business<\/span> gross receipts<\/span> should be attributed under the general rule, the gross receipts<\/span> of the business shall be apportioned between the definite places of businesses on the basis of payroll. Gross receipts<\/span> shall not be apportioned to a definite place of business<\/span> unless some activities under the applicable general rule occurred at, or were controlled from, such definite place of business<\/span>. Gross receipts<\/span> attributable to a definite place of business<\/span> in another jurisdiction<\/span> shall not be attributed to this jurisdiction<\/span> solely because the other jurisdiction<\/span> does not impose a tax on the gross receipts<\/span> attributable to the definite place of business<\/span> in such other jurisdiction<\/span>.\n\t\t\t\t\tc. Agreements. The assessor may enter into agreements with any other political subdivision of Virginia concerning the manner in which gross receipts<\/span> shall be apportioned among definite places of business. However, the sum of the gross receipts<\/span> apportioned by the agreement shall not exceed the total gross receipts<\/span> attributable to all of the definite places of business affected by the agreement. Upon being notified by a taxpayer<\/span> that its method of attributing gross receipts<\/span> is fundamentally inconsistent with the method of one or more political subdivisions in which the taxpayer<\/span> 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<\/span> from all locations in the affected jurisdictions<\/span>, the assessor 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 assessor or taxpayer<\/span> may seek an advisory opinion<\/span> from the Department<\/span> of Taxation pursuant to § 58.1-3701<\/a>; notice of the request shall be given to the other party<\/span>. Notwithstanding the provisions of § 58.1-3993<\/a>, when a taxpayer<\/span> has demonstrated to a court<\/span> that two or more political subdivisions of Virginia have assessed taxes on gross receipts<\/span> that may create a double assessment<\/span> within the meaning of § 58.1-3986<\/a>, the court<\/span> shall enter such orders<\/span> pending resolution of the litigation<\/span> as may be necessary to ensure that the taxpayer<\/span> is not required to pay multiple assessments<\/span> even though it is not then known which assessment<\/span> is correct and which is erroneous. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Limitations and extensions.\n\t\t\t\ta. Where, before the expiration of the time prescribed for the assessment<\/span> of any license tax imposed pursuant to this ordinance<\/span>, both the assessing official and the taxpayer<\/span> have consented in writing to its assessment<\/span> 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.\n\t\t\t\tb. Notwithstanding § 58.1-3903<\/a>, the assessing official shall assess the local license tax omitted because of fraud<\/span> or failure to apply for a license for the current license year<\/span> and the six preceding license years<\/span>.\n\t\t\t\tc. The period for collecting any local license tax shall not expire prior to the period specified in § 58.1-3940<\/a>, two years after the date of assessment<\/span> if the period for assessment<\/span> has been extended pursuant to this subdivision, two years after the final determination of an appeal<\/span> for which collection has been stayed pursuant to subdivision 5 b or d, or two years after the final decision in a court<\/span> application pursuant to § 58.1-3984<\/a> or a similar law<\/span> for which collection has been stayed, whichever is later. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Administrative appeals<\/span> to commissioner of the revenue or other assessing official.\n\t\t\t\ta. Definitions. For purposes of this section:\n\t\t\t\t“Amount in dispute,” when used with respect to taxes due or assessed, means the amount specifically identified in the administrative appeal<\/span> or application for judicial review as disputed by the party<\/span> filing such appeal<\/span> or application.\n\t\t\t\t“Appealable event<\/span>” means an increase in the assessment<\/span> of a local license tax payable by a taxpayer<\/span>, the denial of a refund, or the assessment<\/span> of a local license tax where none previously was assessed, arising out of the local assessing official’s (i) examination of records, financial statements, books of account, or other information for the purpose of determining the correctness of an assessment<\/span>; (ii) determination regarding the rate or classification applicable to the licensable business; (iii) assessment<\/span> of a local license tax when no return has been filed by the taxpayer<\/span>; or (iv) denial of an application for correction of erroneous assessment<\/span> attendant to the filing of an amended application for license.\n\t\t\t\tAn appealable event<\/span> shall include a taxpayer<\/span>’s appeal<\/span> of the classification applicable to a business, including whether the business properly falls within a business license subclassification established by the locality, regardless of whether the taxpayer<\/span>’s appeal<\/span> is in conjunction with an assessment<\/span>, examination, audit, or any other action taken by the locality.\n\t\t\t\t“Frivolous<\/span>” means a finding<\/span>, based on specific facts<\/span>, that the party<\/span> asserting the appeal<\/span> is unlikely to prevail upon the merits because the appeal<\/span> is (i) not well grounded in fact<\/span>; (ii) not warranted by existing law<\/span> or a good faith argument for the extension, modification, or reversal of existing law<\/span>; (iii) interposed for an improper purpose, such as to harass, to cause unnecessary delay in the payment of tax or a refund, or to create needless cost from the litigation<\/span>; or (iv) otherwise frivolous<\/span>.\n\t\t\t\t“Jeopardized by delay<\/span>” means a finding<\/span>, based upon specific facts<\/span>, that a taxpayer<\/span> designs to (i) depart quickly from the locality; (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.\n\t\t\t\tb. Filing and contents of administrative appeal<\/span>. Any person assessed with a local license tax as a result of an appealable event<\/span> as defined in this section may file an administrative appeal<\/span> of the assessment<\/span> within one year from the last day of the tax year for which such assessment<\/span> is made, or within one year from the date of the appealable event<\/span>, whichever is later, with the commissioner of the revenue or other local assessing official. The appeal<\/span> must be filed in good faith and sufficiently identify the taxpayer<\/span>, the tax periods covered by the challenged assessments<\/span>, the amount in dispute, the remedy sought, each alleged error in the assessment<\/span>, the grounds upon which the taxpayer<\/span> relies, and any other facts<\/span> relevant to the taxpayer<\/span>’s contention. The assessor may hold a conference with the taxpayer<\/span> if requested by the taxpayer<\/span>, or require submission of additional information and documents, an audit or further audit, or other evidence<\/span> deemed necessary for a proper and equitable<\/span> determination of the appeal<\/span>. The assessment<\/span> placed at issue<\/span> in the appeal<\/span> shall be deemed prima facie correct. The assessor shall undertake a full review of the taxpayer<\/span>’s claims and issue<\/span> a written determination to the taxpayer<\/span> setting forth the facts<\/span> and arguments in support of his decision.\n\t\t\t\tThe taxpayer<\/span> may at any time also file an administrative appeal<\/span> of the classification applicable to the taxpayer<\/span>’s business, including whether the business properly falls within a business license subclassification established by the locality. However, the appeal<\/span> of the classification of the business shall not apply to any license year<\/span> for which the Tax Commissioner<\/span> has previously issued a final determination relating to any license fee or license tax imposed upon the taxpayer<\/span>’s business for the year. In addition, any appeal<\/span> of the classification of a business shall in no way affect or change any limitations period prescribed by law<\/span> for appealing an assessment<\/span>.\n\t\t\t\tc. Notice of right of appeal<\/span> and procedures. Every assessment<\/span> made by a commissioner of the revenue or other assessing official pursuant to an appealable event<\/span> shall include or be accompanied by a written explanation of the taxpayer<\/span>’s right to file an administrative appeal<\/span> and the specific procedures to be followed in the jurisdiction<\/span>, the name and address to which the appeal<\/span> should be directed, an explanation of the required content of the appeal<\/span>, and the deadline for filing the appeal<\/span>.\n\t\t\t\tFor purposes of facilitating an administrative appeal<\/span> of the classification applicable to a taxpayer<\/span>’s business, each locality imposing a tax or fee under this chapter shall maintain on its website the specific procedures to be followed in the jurisdiction<\/span> with regard to such appeal<\/span> and the name and address to which the appeal<\/span> should be directed.\n\t\t\t\td. Suspension of collection activity during appeal<\/span>. Provided a timely and complete administrative appeal<\/span> is filed, collection activity with respect to the amount in dispute relating to any assessment<\/span> by the commissioner of the revenue or other assessing official shall be suspended until a final determination is issued by the commissioner of the revenue or other assessing official, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay<\/span> as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official that the taxpayer<\/span> has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal<\/span> is frivolous<\/span> as defined in this section. Interest shall accrue in accordance with the provisions of subdivision e, but no further penalty<\/span> shall be imposed while collection action is suspended.\n\t\t\t\te. Procedure in event of nondecision. Any taxpayer<\/span> whose administrative appeal<\/span> to the commissioner of the revenue or other assessing official pursuant to the provisions of this subdivision 5 has been pending for more than one year without the issuance of a final determination may, upon not less than 30 days’ written notice to the commissioner of the revenue or other assessing official, elect to treat the appeal<\/span> as denied and appeal<\/span> the assessment<\/span> or classification of the taxpayer<\/span>’s business to the Tax Commissioner<\/span> in accordance with the provisions of subdivision 6. The Tax Commissioner<\/span> shall not consider an appeal<\/span> filed pursuant to the provisions of this subsection if he finds that the absence of a final determination on the part of the commissioner of the revenue or other assessing official was caused by the willful failure or refusal of the taxpayer<\/span> to provide information requested and reasonably needed by the commissioner or other assessing official to make his determination. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Administrative appeal<\/span> to the Tax Commissioner<\/span>.\n\t\t\t\ta. Any person assessed with a local license tax as a result of a determination or that has received a determination with regard to the person’s appeal<\/span> of the license classification or subclassification applicable to the person’s business, upon an administrative appeal<\/span> to the commissioner of the revenue or other assessing official pursuant to subdivision 5, that is adverse to the position asserted by the taxpayer<\/span> in such appeal<\/span> may appeal<\/span> such assessment<\/span> or determination to the Tax Commissioner<\/span> within 90 days of the date of the determination by the commissioner of the revenue or other assessing official. The appeal<\/span> shall be in such form as the Tax Commissioner<\/span> may prescribe and the taxpayer<\/span> shall serve a copy of the appeal<\/span> upon the commissioner of the revenue or other assessing official. The Tax Commissioner<\/span> shall permit the commissioner of the revenue or other assessing official to participate in the proceedings, and shall issue<\/span> a determination to the taxpayer<\/span> within 90 days of receipt of the taxpayer<\/span>’s application, unless the taxpayer<\/span> and the assessing official are notified that a longer period will be required. The appeal<\/span> shall proceed in the same manner as an application pursuant to \u00a7 58.1-1821<\/a>, and the Tax Commissioner<\/span> pursuant to \u00a7 58.1-1822<\/a> may issue<\/span> an order<\/span> correcting such assessment<\/span> or correcting the license classification or subclassification of the business and the related license tax or fee liability.\n\t\t\t\tb. Suspension of collection activity during appeal<\/span>. On receipt of a notice of intent<\/span> to file an appeal<\/span> to the Tax Commissioner<\/span> under subdivision a, collection activity with respect to the amount in dispute relating to any assessment<\/span> by the commissioner of the revenue or other assessing official shall be suspended until a final determination is issued by the Tax Commissioner<\/span>, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay<\/span> as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official, or the Tax Commissioner<\/span>, that the taxpayer<\/span> has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal<\/span> is frivolous<\/span> as defined in this section. Interest shall accrue in accordance with the provisions of subdivision 2 e, but no further penalty<\/span> shall be imposed while collection action is suspended. The requirement that collection activity be suspended shall cease unless an appeal<\/span> pursuant to subdivision a is filed and served on the necessary parties within 30 days of the service of notice of intent<\/span> to file such appeal<\/span>.\n\t\t\t\tc. Implementation of determination of Tax Commissioner<\/span>. Promptly upon receipt of the final determination of the Tax Commissioner<\/span> with respect to an appeal<\/span> pursuant to subdivision a, the commissioner of the revenue or other assessing official shall take those steps necessary to calculate the amount of tax owed by or refund due to the taxpayer<\/span> consistent with the Tax Commissioner<\/span>’s determination and shall provide that information to the taxpayer<\/span> and to the treasurer or other official responsible for collection in accordance with the provisions of this subdivision. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the determination of the Tax Commissioner<\/span> sets forth a specific amount of tax due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue<\/span> a bill to the taxpayer<\/span> for such amount due, together with interest accrued and penalty<\/span>, if any is authorized by this section, within 30 days of the date of the determination of the Tax Commissioner<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the determination of the Tax Commissioner<\/span> sets forth a specific amount of refund due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue<\/span> a payment to the taxpayer<\/span> for such amount due, together with interest accrued pursuant to this section, within 30 days of the date of the determination of the Tax Commissioner<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the determination of the Tax Commissioner<\/span> does not set forth a specific amount of tax due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment<\/span> that will result in an obligation to pay a tax that has not previously been paid in full, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment<\/span>, and provide the same to the taxpayer<\/span> within 60 days of the date of the determination of the Tax Commissioner<\/span>, or within 60 days after receipt from the taxpayer<\/span> of any additional information requested or reasonably required under the determination of the Tax Commissioner<\/span>, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment<\/span> to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue<\/span> a bill to the taxpayer<\/span> for the amount due, together with interest accrued and penalty<\/span>, if any is authorized by this section, within 30 days of the date of the new assessment<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> If the determination of the Tax Commissioner<\/span> does not set forth a specific amount of refund due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment<\/span> that will result in an obligation on the part of the locality to make a refund of taxes previously paid, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment<\/span> or to determine the amount of refund due in the case of a correction to the license classification or subclassification of the business, and provide the same to the taxpayer<\/span> within 60 days of the date of the determination of the Tax Commissioner<\/span>, or within 60 days after receipt from the taxpayer<\/span> of any additional information requested or reasonably required under the determination of the Tax Commissioner<\/span>, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment<\/span> or refund amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue<\/span> a refund to the taxpayer<\/span> for the amount of tax due, together with interest accrued, within 30 days of the date of the new assessment<\/span> or determination of the amount of the refund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Judicial review of determination of Tax Commissioner<\/span>.\n\t\t\t\ta. Judicial review. Following the issuance of a final determination of the Tax Commissioner<\/span> pursuant to subdivision 6 a, the taxpayer<\/span> or commissioner of the revenue or other assessing official may apply to the appropriate circuit<\/span> court<\/span> for judicial review of the determination, or any part thereof, pursuant to \u00a7 58.1-3984<\/a>. In any such proceeding for judicial review of a determination of the Tax Commissioner<\/span>, the burden shall be on the party<\/span> challenging the determination of the Tax Commissioner<\/span>, or any part thereof, to show that the ruling of the Tax Commissioner<\/span> is erroneous with respect to the part challenged. Neither the Tax Commissioner<\/span> nor the Department<\/span> of Taxation shall be made a party<\/span> to an application to correct an assessment<\/span> merely because the Tax Commissioner<\/span> has ruled on it.\n\t\t\t\tb. Suspension of payment of disputed amount of tax due upon taxpayer<\/span>’s notice of intent<\/span> to initiate judicial review. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> On receipt of a notice of intent<\/span> to file an application for judicial review, pursuant to § 58.1-3984<\/a>, of a determination of the Tax Commissioner<\/span> pursuant to subdivision 6 a, and upon payment of the amount of the tax relating to any assessment<\/span> by the commissioner of the revenue or other assessing official that is not in dispute together with any penalty<\/span> and interest then due with respect to such undisputed portion of the tax, the treasurer or other collection official shall further suspend collection activity while the court<\/span> retains jurisdiction<\/span> unless the court<\/span>, upon appropriate motion<\/span> after notice and an opportunity to be heard, determines that (i) the taxpayer<\/span>’s application for judicial review is frivolous<\/span>, as defined in this section; (ii) collection would be jeopardized by delay<\/span>, as defined in this section; or (iii) suspension of collection would cause substantial economic hardship to the locality. For purposes of determining whether substantial economic hardship to the locality would arise from a suspension of collection activity, the court<\/span> shall consider the cumulative effect of then-pending appeals<\/span> filed within the locality by different taxpayers<\/span> that allege common claims or theories of relief. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Upon a determination that the appeal<\/span> is frivolous<\/span>, that collection may be jeopardized by delay<\/span>, or that suspension of collection would result in substantial economic hardship to the locality, the court<\/span> may require the taxpayer<\/span> to pay the amount in dispute or a portion thereof, or to provide surety<\/span> for payment of the amount in dispute in a form acceptable to the court<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No suspension of collection activity shall be required if the application for judicial review fails to identify with particularity the amount in dispute or the application does not relate to any assessment<\/span> by the commissioner of the revenue or other assessing official. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The requirement that collection activity be suspended shall cease unless an application for judicial review pursuant to § 58.1-3984<\/a> is filed and served on the necessary parties within 30 days of the service of the notice of intent<\/span> to file such application. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The suspension of collection activity authorized by this subdivision shall not be applicable to any appeal<\/span> of a local license tax that is initiated by the direct filing of an action pursuant to § 58.1-3984<\/a> without prior exhaustion of the appeals<\/span> provided by subdivisions 5 and 6.\n\t\t\t\t\tc. Suspension of payment of disputed amount of refund due upon locality’s notice of intent<\/span> to initiate judicial review. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Payment of any refund determined to be due pursuant to the determination of the Tax Commissioner<\/span> of an appeal<\/span> pursuant to subdivision 6 a shall be suspended if the locality assessing the tax serves upon the taxpayer<\/span>, within 60 days of the date of the determination of the Tax Commissioner<\/span>, a notice of intent<\/span> to file an application for judicial review of the Tax Commissioner<\/span>’s determination pursuant to § 58.1-3984<\/a> and pays the amount of the refund not in dispute, including tax and accrued interest. Payment of such refund shall remain suspended while the court<\/span> retains jurisdiction<\/span> unless the court<\/span>, upon appropriate motion<\/span> after notice and an opportunity to be heard, determines that the locality’s application for judicial review is frivolous<\/span>, as defined in this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> No suspension of refund activity shall be permitted if the locality’s application for judicial review fails to identify with particularity the amount in dispute. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The suspension of the obligation to make a refund shall cease unless an application for judicial review pursuant to § 58.1-3984<\/a> is filed and served on the necessary parties within 30 days of the service of the notice of intent<\/span> to file such application.\n\t\t\t\t\td. Accrual of interest on unpaid amount of tax. Interest shall accrue in accordance with the provisions of subdivision 2 e, but no further penalty<\/span> shall be imposed while collection action is suspended. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Rulings.\n\t\t\t\tAny taxpayer<\/span> or authorized representative of a taxpayer<\/span> may request a written ruling regarding the application of a local license tax to a specific situation from the commissioner of the revenue or other assessing official. Any person requesting such a ruling must provide all facts<\/span> relevant to the situation placed at issue<\/span> and may present a rationale for the basis of an interpretation of the law<\/span> most favorable to the taxpayer<\/span>. In addition, the taxpayer<\/span> or authorized representative may request a written ruling with regard to the classification applicable to the taxpayer<\/span>’s business, including whether the business properly falls within a business license subclassification established by the locality.\n\t\t\t\tAny misrepresentation or change in the applicable law<\/span> 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<\/span>, a court<\/span> decision, or the guidelines issued by the Department<\/span> of Taxation upon which the ruling was based or (ii) the assessor notifies the taxpayer<\/span> 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Recordkeeping and audits. Every person who is assessable with a local license tax shall keep sufficient records to enable the assessor to verify the correctness of the tax paid for the license years<\/span> assessable and to enable the assessor 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 assessor in order<\/span> to allow the assessor to establish whether a particular receipt is directly attributable to the taxable privilege<\/span> exercised within this jurisdiction<\/span>. The assessor shall provide the taxpayer<\/span> with the option to conduct the audit in the taxpayer<\/span>’s local business office, if the records are maintained there. In the event the records are maintained outside this jurisdiction<\/span>, copies of the appropriate books and records shall be sent to the assessor’s office upon demand. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Transitional provisions. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A locality which changes its license year<\/span> from a fiscal year to a calendar year and adopts a due date for license applications between March 1 and May 1, inclusive, shall not be required to prorate any license tax to reflect a license year<\/span> of less than 12 months, whether the tax is a flat amount or measured by gross receipts<\/span>, provided that no change is made in the taxable year for measuring gross receipts<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The provisions of this section relating to penalties, interest, and administrative and judicial review of an assessment<\/span> shall be applicable to assessments<\/span> made on and after January 1, 1997, even if for an earlier license year<\/span>. The provisions relating to agreements extending the period for assessing tax shall be effective for agreements entered into on and after July 1, 1996. The provisions permitting an assessment<\/span> of a license tax for up to six preceding years in certain circumstances shall not be construed to permit the assessment<\/span> of tax for a license year<\/span> beginning before January 1, 1997. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Every locality shall adopt a fixed due date for license applications between March 1 and May 1, inclusive, no later than the 2007 license year<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nUNIFORM ORDINANCE PROVISIONS (\u00a7 58.1-3703.1)\n\nA. Every ordinance levying a license tax pursuant to this chapter shall include\nprovisions substantially similar to this subsection. As they apply to license\ntaxes, the provisions required by this section shall override any limitations or\nrequirements in Chapter 39 (\u00a7 58.1-3900 et seq.) to the extent that they are in\nconflict.\n\n 1. License requirement. Every person shall apply for a license for each\n business or profession when engaging in a business in this jurisdiction if (i)\n the person has a definite place of business in this jurisdiction; (ii) there\n is no definite place of business anywhere and the person resides in this\n jurisdiction; or (iii) there is no definite place of business in this\n jurisdiction but the person operates amusement machines or is classified as an\n itinerant merchant, peddler, carnival, circus, contractor subject to §\n 58.1-3715, or public service corporation. A separate license shall be required\n for each definite place of business and for each business. A person engaged in\n two or more businesses or professions carried on at the same place of business\n may elect to obtain one license for all such businesses and professions if all\n of the following criteria are satisfied: (a) each business or profession is\n subject to licensure at the location and has satisfied any requirements\n imposed by state law or other provisions of the ordinances of this\n jurisdiction; (b) all of the businesses or professions are subject to the same\n tax rate, or, if subject to different tax rates, the licensee agrees to be\n taxed on all businesses and professions at the highest rate; and (c) the\n taxpayer agrees to supply such information as the assessor may require\n concerning the nature of the several businesses and their gross receipts.\n \t\t\t\tNotwithstanding the foregoing, the governing body of any county, city, or\n town with a population greater than 50,000 may waive the license requirements\n provided herein for businesses with gross receipts of $200,000 or less.\n\n 2. Due dates and penalties.\n \t\t\t\ta. Each person subject to a license tax shall apply for a license prior to\n beginning business if he was not subject to licensure in this jurisdiction on\n or before January 1 of the license year, or no later than March 1 of the\n license year if he had been issued a license for the preceding year. Any\n locality is authorized to adopt a later application date that is on or before\n May 1 of the license year. The application shall be on forms prescribed by the\n assessing official, which forms and accompanying communications shall clearly\n set out the due date for the application and the amount of any penalty to be\n charged for late filing of the application, the underpayment of estimated tax,\n and late payment of tax.\n \t\t\t\tb. The tax shall be paid with the application in the case of any license\n not based on gross receipts. If the tax is measured by the gross receipts of\n the business, the tax shall be paid on or before the locality’s fixed\n due date for filing license applications or a later date, including\n installment payment dates, or 30 or more days after beginning business, at the\n locality’s option.\n \t\t\t\tc. The assessing official may grant an extension of time in which to file\n an application for a license, for reasonable cause. The extension may be\n conditioned upon the timely payment of a reasonable estimate of the\n appropriate tax; the tax is then subject to adjustment to the correct tax at\n the end of the extension, together with interest from the due date until the\n date paid and, if the estimate submitted with the extension is found to be\n unreasonable under the circumstances, with a penalty of 10 percent of the\n portion paid after the due date.\n \t\t\t\td. A penalty of 10 percent of the tax may be imposed upon the failure to\n file an application or the failure to pay the tax by the appropriate due date.\n Only the late filing penalty shall be imposed by the assessing official if\n both the application and payment are late; however, both penalties may be\n assessed if the assessing official determines that the taxpayer has a history\n of noncompliance. In the case of an assessment of additional tax made by the\n assessing official, if the application and, if applicable, the return were\n made in good faith and the understatement of the tax was not due to any fraud,\n reckless or intentional disregard of the law by the taxpayer, there shall be\n no late payment penalty assessed with the additional tax. If any assessment of\n tax by the assessing official is not paid within 30 days, the treasurer or\n other collecting official may impose a 10 percent late payment penalty. If the\n failure to file or pay was not the fault of the taxpayer, the penalties shall\n not be imposed, or if imposed, shall be abated by the official who assessed\n them. In order to demonstrate lack of fault, the taxpayer must show that he\n acted responsibly and that the failure was due to events beyond his control.\n \t\t\t\t“Acted responsibly” means that (i) the taxpayer exercised the\n level of reasonable care that a prudent person would exercise under the\n circumstances in determining the filing obligations for the business and (ii)\n the taxpayer undertook significant steps to avoid or mitigate the failure,\n such as requesting appropriate extensions (where applicable), attempting to\n prevent a foreseeable impediment, acting to remove an impediment once it\n occurred, and promptly rectifying a failure once the impediment was removed or\n the failure discovered.\n \t\t\t\t“Events beyond the taxpayer’s control” include, but are\n not limited to, the unavailability of records due to fire or other casualty;\n the unavoidable absence (e.g., due to death or serious illness) of the person\n with the sole responsibility for tax compliance; or the taxpayer’s\n reasonable reliance in good faith upon erroneous written information from the\n assessing official who was aware of the relevant facts relating to the\n taxpayer’s business when he provided the erroneous information.\n \t\t\t\te. Interest shall be charged on the late payment of the tax from the due\n date until the date paid without regard to fault or other reason for the late\n payment. Whenever an assessment of additional or omitted tax by the assessing\n official is found to be erroneous, all interest and any penalties charged and\n collected on the amount of the assessment found to be erroneous shall be\n refunded together with interest on the refund from the date of payment or the\n due date, whichever is later. Interest shall be paid on the refund of any BPOL\n tax from the date of payment or due date, whichever is later, whether\n attributable to an amended return or other reason. Interest on any refund\n shall be paid at the same rate charged under § 58.1-3916.\n \t\t\t\tNo interest shall accrue on an adjustment of estimated tax liability to\n actual liability at the conclusion of a base year. No interest shall be paid\n on a refund or charged on a late payment, provided the refund or the late\n payment is made not more than 30 days from the date of the payment that\n created the refund or the due date of the tax, whichever is later.\n \t\t\t\tf. Any bill issued by the treasurer or other collecting official that\n includes, and any communication from the assessing official that imposes, a\n penalty pursuant to subdivision c or d or interest pursuant to subdivision e\n shall separately state the total amount of tax owed, the amount of any\n interest assessed, and the amount of the penalty imposed.\n\n 3. Situs of gross receipts.\n \t\t\t\ta. General rule. Whenever the tax imposed by this ordinance is measured by\n gross receipts, the gross receipts included in the taxable measure shall be\n only those gross receipts attributed to the exercise of a privilege subject to\n licensure at a definite place of business within this jurisdiction. In the\n case of activities conducted outside of a definite place of business, such as\n during a visit to a customer location, the gross receipts shall be attributed\n to the definite place of business from which such activities are initiated,\n directed, or controlled. The situs of gross receipts for different\n classifications of business shall be attributed to one or more definite places\n of business or offices as follows:\n\n 1. The gross receipts of a contractor shall be attributed to the definite\n place of business at which his services are performed, or if his services\n are not performed at any definite place of business, then the definite place\n of business from which his services are directed or controlled, unless the\n contractor is subject to the provisions of § 58.1-3715;\n\n 2. The gross receipts of a retailer or wholesaler shall be attributed to the\n definite place of business at which sales solicitation activities occur, or\n if sales solicitation activities do not occur at any definite place of\n business, then the definite place of business from which sales solicitation\n activities are directed or controlled; however, a wholesaler or distribution\n house subject to a license tax measured by purchases shall determine the\n situs of its purchases by the definite place of business at which or from\n which deliveries of the purchased goods, wares and merchandise are made to\n customers. Any wholesaler who is subject to license tax in two or more\n localities and who is subject to multiple taxation because the localities\n use different measures, may apply to the Department of Taxation for a\n determination as to the proper measure of purchases and gross receipts\n subject to license tax in each locality;\n\n 3. The gross receipts of a business renting tangible personal property shall\n be attributed to the definite place of business from which the tangible\n personal property is rented or, if the property is not rented from any\n definite place of business, then to the definite place of business at which\n the rental of such property is managed; and\n\n 4. The gross receipts from the performance of services shall be attributed\n to the definite place of business at which the services are performed or, if\n not performed at any definite place of business, then to the definite place\n of business from which the services are directed or controlled.\n \t\t\t\t\tb. Apportionment. If the licensee has more than one definite place of\n business and it is impractical or impossible to determine to which definite\n place of business gross receipts should be attributed under the general\n rule, the gross receipts of the business shall be apportioned between the\n definite places of businesses on the basis of payroll. Gross receipts shall\n not be apportioned to a definite place of business unless some activities\n under the applicable general rule occurred at, or were controlled from, such\n definite place of business. Gross receipts attributable to a definite place\n of business in another jurisdiction shall not be attributed to this\n jurisdiction solely because the other jurisdiction does not impose a tax on\n the gross receipts attributable to the definite place of business in such\n other jurisdiction.\n \t\t\t\t\tc. Agreements. The assessor may enter into agreements with any other\n political subdivision of Virginia concerning the manner in which gross\n receipts shall be apportioned among definite places of business. However,\n the sum of the gross receipts apportioned by the agreement shall not exceed\n the total gross receipts attributable to all of the definite places of\n business affected by the agreement. Upon being notified by a taxpayer that\n its method of attributing gross receipts is fundamentally inconsistent with\n the method of one or more political subdivisions in which the taxpayer is\n licensed to engage in business and that the difference has, or is likely to,\n result in taxes on more than 100 percent of its gross receipts from all\n locations in the affected jurisdictions, the assessor shall make a good\n faith effort to reach an apportionment agreement with the other political\n subdivisions involved. If an agreement cannot be reached, either the\n assessor or taxpayer may seek an advisory opinion from the Department of\n Taxation pursuant to § 58.1-3701; notice of the request shall be given\n to the other party. Notwithstanding the provisions of § 58.1-3993, when\n a taxpayer has demonstrated to a court that two or more political\n subdivisions of Virginia have assessed taxes on gross receipts that may\n create a double assessment within the meaning of § 58.1-3986, the court\n shall enter such orders pending resolution of the litigation as may be\n necessary to ensure that the taxpayer is not required to pay multiple\n assessments even though it is not then known which assessment is correct and\n which is erroneous.\n\n 4. Limitations and extensions.\n \t\t\t\ta. Where, before the expiration of the time prescribed for the assessment\n of any license tax imposed pursuant to this ordinance, both the assessing\n official and the taxpayer have consented in writing to its assessment after\n such time, the tax may be assessed at any time prior to the expiration of the\n period agreed upon. The period so agreed upon may be extended by subsequent\n agreements in writing made before the expiration of the period previously\n agreed upon.\n \t\t\t\tb. Notwithstanding § 58.1-3903, the assessing official shall assess\n the local license tax omitted because of fraud or failure to apply for a\n license for the current license year and the six preceding license years.\n \t\t\t\tc. The period for collecting any local license tax shall not expire prior\n to the period specified in § 58.1-3940, two years after the date of\n assessment if the period for assessment has been extended pursuant to this\n subdivision, two years after the final determination of an appeal for which\n collection has been stayed pursuant to subdivision 5 b or d, or two years\n after the final decision in a court application pursuant to § 58.1-3984\n or a similar law for which collection has been stayed, whichever is later.\n\n 5. Administrative appeals to commissioner of the revenue or other assessing\n official.\n \t\t\t\ta. Definitions. For purposes of this section:\n \t\t\t\t“Amount in dispute,” when used with respect to taxes due or\n assessed, means the amount specifically identified in the administrative\n appeal or application for judicial review as disputed by the party filing such\n appeal or application.\n \t\t\t\t“Appealable event” means an increase in the assessment of a\n local license tax payable by a taxpayer, the denial of a refund, or the\n assessment of a local license tax where none previously was assessed, arising\n out of the local assessing official’s (i) examination of records,\n financial statements, books of account, or other information for the purpose\n of determining the correctness of an assessment; (ii) determination regarding\n the rate or classification applicable to the licensable business; (iii)\n assessment of a local license tax when no return has been filed by the\n taxpayer; or (iv) denial of an application for correction of erroneous\n assessment attendant to the filing of an amended application for license.\n \t\t\t\tAn appealable event shall include a taxpayer’s appeal of the\n classification applicable to a business, including whether the business\n properly falls within a business license subclassification established by the\n locality, regardless of whether the taxpayer’s appeal is in conjunction\n with an assessment, examination, audit, or any other action taken by the\n locality.\n \t\t\t\t“Frivolous” means a finding, based on specific facts, that the\n party asserting the appeal is unlikely to prevail upon the merits because the\n appeal is (i) not well grounded in fact; (ii) not warranted by existing law or\n a good faith argument for the extension, modification, or reversal of existing\n law; (iii) interposed for an improper purpose, such as to harass, to cause\n unnecessary delay in the payment of tax or a refund, or to create needless\n cost from the litigation; or (iv) otherwise frivolous.\n \t\t\t\t“Jeopardized by delay” means a finding, based upon specific\n facts, that a taxpayer designs to (i) depart quickly from the locality; (ii)\n remove his property therefrom; (iii) conceal himself or his property therein;\n or (iv) do any other act tending to prejudice, or to render wholly or\n partially ineffectual, proceedings to collect the tax for the period in\n question.\n \t\t\t\tb. Filing and contents of administrative appeal. Any person assessed with\n a local license tax as a result of an appealable event as defined in this\n section may file an administrative appeal of the assessment within one year\n from the last day of the tax year for which such assessment is made, or within\n one year from the date of the appealable event, whichever is later, with the\n commissioner of the revenue or other local assessing official. The appeal must\n be filed in good faith and sufficiently identify the taxpayer, the tax periods\n covered by the challenged assessments, the amount in dispute, the remedy\n sought, each alleged error in the assessment, the grounds upon which the\n taxpayer relies, and any other facts relevant to the taxpayer’s\n contention. The assessor may hold a conference with the taxpayer if requested\n by the taxpayer, or require submission of additional information and\n documents, an audit or further audit, or other evidence deemed necessary for a\n proper and equitable determination of the appeal. The assessment placed at\n issue in the appeal shall be deemed prima facie correct. The assessor shall\n undertake a full review of the taxpayer’s claims and issue a written\n determination to the taxpayer setting forth the facts and arguments in support\n of his decision.\n \t\t\t\tThe taxpayer may at any time also file an administrative appeal of the\n classification applicable to the taxpayer’s business, including whether\n the business properly falls within a business license subclassification\n established by the locality. However, the appeal of the classification of the\n business shall not apply to any license year for which the Tax Commissioner\n has previously issued a final determination relating to any license fee or\n license tax imposed upon the taxpayer’s business for the year. In\n addition, any appeal of the classification of a business shall in no way\n affect or change any limitations period prescribed by law for appealing an\n assessment.\n \t\t\t\tc. Notice of right of appeal and procedures. Every assessment made by a\n commissioner of the revenue or other assessing official pursuant to an\n appealable event shall include or be accompanied by a written explanation of\n the taxpayer’s right to file an administrative appeal and the specific\n procedures to be followed in the jurisdiction, the name and address to which\n the appeal should be directed, an explanation of the required content of the\n appeal, and the deadline for filing the appeal.\n \t\t\t\tFor purposes of facilitating an administrative appeal of the\n classification applicable to a taxpayer’s business, each locality\n imposing a tax or fee under this chapter shall maintain on its website the\n specific procedures to be followed in the jurisdiction with regard to such\n appeal and the name and address to which the appeal should be directed.\n \t\t\t\td. Suspension of collection activity during appeal. Provided a timely and\n complete administrative appeal is filed, collection activity with respect to\n the amount in dispute relating to any assessment by the commissioner of the\n revenue or other assessing official shall be suspended until a final\n determination is issued by the commissioner of the revenue or other assessing\n official, unless the treasurer or other official responsible for the\n collection of such tax (i) determines that collection would be jeopardized by\n delay as defined in this section; (ii) is advised by the commissioner of the\n revenue or other assessing official that the taxpayer has not responded to a\n request for relevant information after a reasonable time; or (iii) is advised\n by the commissioner of the revenue or other assessing official that the appeal\n is frivolous as defined in this section. Interest shall accrue in accordance\n with the provisions of subdivision e, but no further penalty shall be imposed\n while collection action is suspended.\n \t\t\t\te. Procedure in event of nondecision. Any taxpayer whose administrative\n appeal to the commissioner of the revenue or other assessing official pursuant\n to the provisions of this subdivision 5 has been pending for more than one\n year without the issuance of a final determination may, upon not less than 30\n days’ written notice to the commissioner of the revenue or other\n assessing official, elect to treat the appeal as denied and appeal the\n assessment or classification of the taxpayer’s business to the Tax\n Commissioner in accordance with the provisions of subdivision 6. The Tax\n Commissioner shall not consider an appeal filed pursuant to the provisions of\n this subsection if he finds that the absence of a final determination on the\n part of the commissioner of the revenue or other assessing official was caused\n by the willful failure or refusal of the taxpayer to provide information\n requested and reasonably needed by the commissioner or other assessing\n official to make his determination.\n\n 6. Administrative appeal to the Tax Commissioner.\n \t\t\t\ta. Any person assessed with a local license tax as a result of a\n determination or that has received a determination with regard to the\n person’s appeal of the license classification or subclassification\n applicable to the person’s business, upon an administrative appeal to\n the commissioner of the revenue or other assessing official pursuant to\n subdivision 5, that is adverse to the position asserted by the taxpayer in\n such appeal may appeal such assessment or determination to the Tax\n Commissioner within 90 days of the date of the determination by the\n commissioner of the revenue or other assessing official. The appeal shall be\n in such form as the Tax Commissioner may prescribe and the taxpayer shall\n serve a copy of the appeal upon the commissioner of the revenue or other\n assessing official. The Tax Commissioner shall permit the commissioner of the\n revenue or other assessing official to participate in the proceedings, and\n shall issue a determination to the taxpayer within 90 days of receipt of the\n taxpayer’s application, unless the taxpayer and the assessing official\n are notified that a longer period will be required. The appeal shall proceed\n in the same manner as an application pursuant to \u00a7 58.1-1821, and the Tax\n Commissioner pursuant to \u00a7 58.1-1822 may issue an order correcting such\n assessment or correcting the license classification or subclassification of\n the business and the related license tax or fee liability.\n \t\t\t\tb. Suspension of collection activity during appeal. On receipt of a notice\n of intent to file an appeal to the Tax Commissioner under subdivision a,\n collection activity with respect to the amount in dispute relating to any\n assessment by the commissioner of the revenue or other assessing official\n shall be suspended until a final determination is issued by the Tax\n Commissioner, unless the treasurer or other official responsible for the\n collection of such tax (i) determines that collection would be jeopardized by\n delay as defined in this section; (ii) is advised by the commissioner of the\n revenue or other assessing official, or the Tax Commissioner, that the\n taxpayer has not responded to a request for relevant information after a\n reasonable time; or (iii) is advised by the commissioner of the revenue or\n other assessing official that the appeal is frivolous as defined in this\n section. Interest shall accrue in accordance with the provisions of\n subdivision 2 e, but no further penalty shall be imposed while collection\n action is suspended. The requirement that collection activity be suspended\n shall cease unless an appeal pursuant to subdivision a is filed and served on\n the necessary parties within 30 days of the service of notice of intent to\n file such appeal.\n \t\t\t\tc. Implementation of determination of Tax Commissioner. Promptly upon\n receipt of the final determination of the Tax Commissioner with respect to an\n appeal pursuant to subdivision a, the commissioner of the revenue or other\n assessing official shall take those steps necessary to calculate the amount of\n tax owed by or refund due to the taxpayer consistent with the Tax\n Commissioner’s determination and shall provide that information to the\n taxpayer and to the treasurer or other official responsible for collection in\n accordance with the provisions of this subdivision.\n\n 1. If the determination of the Tax Commissioner sets forth a specific amount\n of tax due, the commissioner of the revenue or other assessing official\n shall certify the amount to the treasurer or other official responsible for\n collection, and the treasurer or other official responsible for collection\n shall issue a bill to the taxpayer for such amount due, together with\n interest accrued and penalty, if any is authorized by this section, within\n 30 days of the date of the determination of the Tax Commissioner.\n\n 2. If the determination of the Tax Commissioner sets forth a specific amount\n of refund due, the commissioner of the revenue or other assessing official\n shall certify the amount to the treasurer or other official responsible for\n collection, and the treasurer or other official responsible for collection\n shall issue a payment to the taxpayer for such amount due, together with\n interest accrued pursuant to this section, within 30 days of the date of the\n determination of the Tax Commissioner.\n\n 3. If the determination of the Tax Commissioner does not set forth a\n specific amount of tax due, or otherwise requires the commissioner of the\n revenue or other assessing official to undertake a new or revised assessment\n that will result in an obligation to pay a tax that has not previously been\n paid in full, the commissioner of the revenue or other assessing official\n shall promptly commence the steps necessary to undertake such new or revised\n assessment, and provide the same to the taxpayer within 60 days of the date\n of the determination of the Tax Commissioner, or within 60 days after\n receipt from the taxpayer of any additional information requested or\n reasonably required under the determination of the Tax Commissioner,\n whichever is later. The commissioner of the revenue or other assessing\n official shall certify the new assessment to the treasurer or other official\n responsible for collection, and the treasurer or other official responsible\n for collection shall issue a bill to the taxpayer for the amount due,\n together with interest accrued and penalty, if any is authorized by this\n section, within 30 days of the date of the new assessment.\n\n 4. If the determination of the Tax Commissioner does not set forth a\n specific amount of refund due, or otherwise requires the commissioner of the\n revenue or other assessing official to undertake a new or revised assessment\n that will result in an obligation on the part of the locality to make a\n refund of taxes previously paid, the commissioner of the revenue or other\n assessing official shall promptly commence the steps necessary to undertake\n such new or revised assessment or to determine the amount of refund due in\n the case of a correction to the license classification or subclassification\n of the business, and provide the same to the taxpayer within 60 days of the\n date of the determination of the Tax Commissioner, or within 60 days after\n receipt from the taxpayer of any additional information requested or\n reasonably required under the determination of the Tax Commissioner,\n whichever is later. The commissioner of the revenue or other assessing\n official shall certify the new assessment or refund amount to the treasurer\n or other official responsible for collection, and the treasurer or other\n official responsible for collection shall issue a refund to the taxpayer for\n the amount of tax due, together with interest accrued, within 30 days of the\n date of the new assessment or determination of the amount of the refund.\n\n 7. Judicial review of determination of Tax Commissioner.\n \t\t\t\ta. Judicial review. Following the issuance of a final determination of the\n Tax Commissioner pursuant to subdivision 6 a, the taxpayer or commissioner of\n the revenue or other assessing official may apply to the appropriate circuit\n court for judicial review of the determination, or any part thereof, pursuant\n to \u00a7 58.1-3984. In any such proceeding for judicial review of a determination\n of the Tax Commissioner, the burden shall be on the party challenging the\n determination of the Tax Commissioner, or any part thereof, to show that the\n ruling of the Tax Commissioner is erroneous with respect to the part\n challenged. Neither the Tax Commissioner nor the Department of Taxation shall\n be made a party to an application to correct an assessment merely because the\n Tax Commissioner has ruled on it.\n \t\t\t\tb. Suspension of payment of disputed amount of tax due upon\n taxpayer’s notice of intent to initiate judicial review.\n\n 1. On receipt of a notice of intent to file an application for judicial\n review, pursuant to § 58.1-3984, of a determination of the Tax\n Commissioner pursuant to subdivision 6 a, and upon payment of the amount of\n the tax relating to any assessment by the commissioner of the revenue or\n other assessing official that is not in dispute together with any penalty\n and interest then due with respect to such undisputed portion of the tax,\n the treasurer or other collection official shall further suspend collection\n activity while the court retains jurisdiction unless the court, upon\n appropriate motion after notice and an opportunity to be heard, determines\n that (i) the taxpayer’s application for judicial review is frivolous,\n as defined in this section; (ii) collection would be jeopardized by delay,\n as defined in this section; or (iii) suspension of collection would cause\n substantial economic hardship to the locality. For purposes of determining\n whether substantial economic hardship to the locality would arise from a\n suspension of collection activity, the court shall consider the cumulative\n effect of then-pending appeals filed within the locality by different\n taxpayers that allege common claims or theories of relief.\n\n 2. Upon a determination that the appeal is frivolous, that collection may be\n jeopardized by delay, or that suspension of collection would result in\n substantial economic hardship to the locality, the court may require the\n taxpayer to pay the amount in dispute or a portion thereof, or to provide\n surety for payment of the amount in dispute in a form acceptable to the\n court.\n\n 3. No suspension of collection activity shall be required if the application\n for judicial review fails to identify with particularity the amount in\n dispute or the application does not relate to any assessment by the\n commissioner of the revenue or other assessing official.\n\n 4. The requirement that collection activity be suspended shall cease unless\n an application for judicial review pursuant to § 58.1-3984 is filed and\n served on the necessary parties within 30 days of the service of the notice\n of intent to file such application.\n\n 5. The suspension of collection activity authorized by this subdivision\n shall not be applicable to any appeal of a local license tax that is\n initiated by the direct filing of an action pursuant to § 58.1-3984\n without prior exhaustion of the appeals provided by subdivisions 5 and 6.\n \t\t\t\t\tc. Suspension of payment of disputed amount of refund due upon\n locality’s notice of intent to initiate judicial review.\n\n 1. Payment of any refund determined to be due pursuant to the determination\n of the Tax Commissioner of an appeal pursuant to subdivision 6 a shall be\n suspended if the locality assessing the tax serves upon the taxpayer, within\n 60 days of the date of the determination of the Tax Commissioner, a notice\n of intent to file an application for judicial review of the Tax\n Commissioner’s determination pursuant to § 58.1-3984 and pays the\n amount of the refund not in dispute, including tax and accrued interest.\n Payment of such refund shall remain suspended while the court retains\n jurisdiction unless the court, upon appropriate motion after notice and an\n opportunity to be heard, determines that the locality’s application\n for judicial review is frivolous, as defined in this section.\n\n 2. No suspension of refund activity shall be permitted if the\n locality’s application for judicial review fails to identify with\n particularity the amount in dispute.\n\n 3. The suspension of the obligation to make a refund shall cease unless an\n application for judicial review pursuant to § 58.1-3984 is filed and\n served on the necessary parties within 30 days of the service of the notice\n of intent to file such application.\n \t\t\t\t\td. Accrual of interest on unpaid amount of tax. Interest shall accrue\n in accordance with the provisions of subdivision 2 e, but no further penalty\n shall be imposed while collection action is suspended.\n\n 8. Rulings.\n \t\t\t\tAny taxpayer or authorized representative of a taxpayer may request a\n written ruling regarding the application of a local license tax to a specific\n situation from the commissioner of the revenue or other assessing official.\n Any person requesting such a ruling must provide all facts relevant to the\n situation placed at issue and may present a rationale for the basis of an\n interpretation of the law most favorable to the taxpayer. In addition, the\n taxpayer or authorized representative may request a written ruling with regard\n to the classification applicable to the taxpayer’s business, including\n whether the business properly falls within a business license\n subclassification established by the locality.\n \t\t\t\tAny misrepresentation or change in the applicable law or the factual\n situation as presented in the ruling request shall invalidate any such ruling\n issued. A written ruling may be revoked or amended prospectively if (i) there\n is a change in the law, a court decision, or the guidelines issued by the\n Department of Taxation upon which the ruling was based or (ii) the assessor\n notifies the taxpayer of a change in the policy or interpretation upon which\n the ruling was based. However, any person who acts on a written ruling which\n later becomes invalid shall be deemed to have acted in good faith during the\n period in which such ruling was in effect.\n\n 9. Recordkeeping and audits. Every person who is assessable with a local\n license tax shall keep sufficient records to enable the assessor to verify the\n correctness of the tax paid for the license years assessable and to enable the\n assessor to ascertain what is the correct amount of tax that was assessable\n for each of those years. All such records, books of accounts and other\n information shall be open to inspection and examination by the assessor in\n order to allow the assessor to establish whether a particular receipt is\n directly attributable to the taxable privilege exercised within this\n jurisdiction. The assessor shall provide the taxpayer with the option to\n conduct the audit in the taxpayer’s local business office, if the\n records are maintained there. In the event the records are maintained outside\n this jurisdiction, copies of the appropriate books and records shall be sent\n to the assessor’s office upon demand.\n\nB. Transitional provisions.\n\n 1. A locality which changes its license year from a fiscal year to a calendar\n year and adopts a due date for license applications between March 1 and May 1,\n inclusive, shall not be required to prorate any license tax to reflect a\n license year of less than 12 months, whether the tax is a flat amount or\n measured by gross receipts, provided that no change is made in the taxable\n year for measuring gross receipts.\n\n 2. The provisions of this section relating to penalties, interest, and\n administrative and judicial review of an assessment shall be applicable to\n assessments made on and after January 1, 1997, even if for an earlier license\n year. The provisions relating to agreements extending the period for assessing\n tax shall be effective for agreements entered into on and after July 1, 1996.\n The provisions permitting an assessment of a license tax for up to six\n preceding years in certain circumstances shall not be construed to permit the\n assessment of tax for a license year beginning before January 1, 1997.\n\n 3. Every locality shall adopt a fixed due date for license applications\n between March 1 and May 1, inclusive, no later than the 2007 license year.\n\nHISTORY: 1996, cc. 715, 720; 1997, c. 732; 2002, c. 364; 2005, c. 927; 2006, cc.\n119, 181, 611; 2014, c. 27; 2020, c. 242; 2023, c. 14.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}