Tax Type
Retail Sales and Use Tax
Description
Validity of County Vendor's License Tax in a Town Imposing Similar Tax
Topic
Local Taxes Discussion
Date Issued
03-30-1965
This opinion was given in response to the following inquiry:
"The Board of Supervisors of Essex County is considering the possibility of imposing a vendor's tax based on gross receipts on all merchants doing business within the county. * * *
"Essex County has only one incorporated town, being the Town of Tappahannock, within its limits, and this town has a license tax on all persons, firms and companies engaged in business within the Town of Tappahannock, which tax is also based on gross receipts, and is payable to the town.
"I notice that paragraph 7 of § 58-266.1 of the Code of Virginia indicates that where a town imposes a town license tax, a similar license tax imposed by the county would not be applicable within the town. I would appreciate very much your advising me whether this means that Essex County, in effect, could not impose a vendor's tax which would be applicable to the merchants located in Tappahannock. * * *'
In a telephone conversation today you stated that the tax under consideration by the board of supervisors is the license tax permitted under § 58-266.1 of the Code. The terminal paragraph of this section is as follows:
- "(7) Any county license tax imposed hereunder shall not apply within the limits of any town located in such county, where such town now, or hereafter, imposes a town license tax on the same privilege.'
This paragraph prevents the county license tax from being imposed on merchants who have a business located within the limits of a town in the county if the town imposes a town license tax on the same privilege.
Attorney General's Opinion