Tax Type
Bank Franchise Tax
BPOL Tax
Local Taxes
Description
Bank operating a parking garage
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
09-26-1985
September 26, 1985
Dear ****************
This will reply to your letter of July 24, 1985, concerning the applicability of the local license tax on a bank for operating a parking garage.
As you note, § 58.1-1202 of the Code of Virginia provides that the bank franchise tax is in lieu of all other taxes except, among other things, local license taxes in connection with the sale of tangible personal property sold by banks in connection with promotions or otherwise. You indicate that the parking facilities in question are owned by the bank and included in net capital and are operated to provide adequate parking for customers, employees and tenants as part of its overall banking operation.
Renting or leasing parking space is not deemed to be the sale of tangible personal property within the meaning of Virginia Code § 58.1-1202. Accordingly, a local business license tax should not be imposed on the gross receipts received from such a parking operation.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner