Tax Type
Local Taxes
Description
Local Revenue License - Excludible Excise Taxes
Topic
Local Power to Tax
Date Issued
08-16-1982
DATE: August 16, 1982
SUBJECT: Local Revenue License - Excludible Excise Taxes
The 1982 Session of the Virginia General Assembly enacted H.B. 467 which amended subparagraph A(9) of §58-266.1 regarding taxes excludible from gross receipts for local license tax purposes.
Prior to amendment, subparagraph A(9) provided for the exclusion of amounts paid to the State or any city, town or county for State and local sales and use tax and for any local excise tax on cigarettes.
The 1982 amendment additionally excludes from gross receipts amounts paid to the United States or the Commonwealth for any federal or state excise tax on motor fuels. Accordingly, the federal excise tax on motor fuels and the State excise tax on motor fuels is excludible from the gross receipts of any merchant of motor fuels who is subject to a local business license based on gross receipts.
H.B. 5329 also enacted by the 19&2 Session of the General Assembly, imposed an oil company excise tax for highway maintenance and construction. The tax is imposed at the rate of three percent of petroleum revenue on all oil companies doing business in Virginia.
Since the oil company excise tax is imposed upon an oil company's petroleum revenue and not as an excise tax on motor fuel products, it does not meet the requirements for exclusion provided by subparagraph A(9) of §58-266.1.
Rulings of the Tax Commissioner