Bulletin Number
VTB 84-9
Tax Type
Local Taxes
Description
1984 Legislative Changes Regarding Local Revenue Licenses
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
06-11-1984
1984 Legislative Changes Regarding Local Revenue Licenses
The 1984 Session of the General Assembly enacted H.B. 288 which creates a separate local license tax classification for direct sellers of consumer products who conduct business primarily in private residences and maintain no public locations for business. The bill defines direct seller and prohibits the locality from taxing such person when his total sales do not exceed $4,000 per year. The bill provides that a locality may tax all of a direct seller's gross receipts if the total exceeds $4,000 and also provides rate limitations of 20 cents per $100 of retail sales and 5 cents per $100 of wholesale gales. The situs for licensing a direct seller is the locality in which such person maintains his place of abode.
House Bill 502, enacted by the 1984 Session of the General Assembly, amends § 58-266.5:1 of the Code of Virginia in regard to license proration upon permanent cessation of businesses. The bill limits the proration requirement to licenses based upon gross receipts and provides authority for the locality to offset any local license refund by any past due taxes owed by the same taxpayer.
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