HB 293 BPOL tax uniform ordinance.
David G. Brickley | all patrons    ...    notes
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Summary:
BPOL uniform ordinance. Provides a uniform ordinance for the business, professional and occupational license tax to be used by local governments. The bill:

1. Establishes, for the first time, a mandatory administrative appeals procedure for the BPOL tax. The appeals procedure includes (i) an initial appeal to local assessing official, (ii) a subsequent appeal to Tax Commissioner, and (iii) the stay of tax collections while appeals are pending. If reenacted by the General Assembly, the appeals procedures will apply by January 1, 2000, to all other local business taxes.

2. Changes the penalty and interest rules to (i) require the payment of interest on all refunds at the same rate charged on assessments; (ii) treat interest as a charge for the use of funds, regardless of fault; and (iii) standardize and liberalize the rules for waiving penalties.

3. Establishes thresholds for BPOL tax liability. In jurisdictions with a population of over 50,000, a business must have $100,000 in gross receipts before any tax is paid; in jurisdictions with a population of more than 25,000 but less than 50,000, the threshold amount is $50,000. In jurisdictions with a population of less than 25,000, there is no threshold amount.

4. Authorizes localities to charge a fee for issuing a license, without regard to the amount of the business' gross receipts. In localities with a population of more than 50,000, the maximum fee is $100; in localities with a population of between 25,000 and 50,000, the maximum fee is $50; and in localities with a population of less than 25,000, the maximum fee is $30.

5. Establishes rules for determining the situs of gross receipts for businesses that have multiple offices, including (i) apportionment or receipts among localities when data does not permit the general rules to be applied, (ii) double taxation of receipts is prevented, (iii) agreements between localities are permitted, (iv) appeals to the Tax Commissioner are authorized if localities cannot agree on apportionment, and (v) authorization for temporary court action to prevent multiple payments while a determination is made about which locality's assessment is correct.

6. Provides that a uniform March 1 due date for license applications shall be put into effect no later than 2001.

7. Allows taxpayers and assessing officials to extend the time for assessment which (i) prevents estimated assessments because period about to expire, (ii) reduces appeals and corrections of estimates, and (iii) is similar to authority for taxes administered by Department of Taxation.

8. Clarifies that certain moneys received by a licensable business are excluded from its taxable gross receipts. These include (i) sales and other taxes collected from customers, (ii) previously taxed receipts, such as factoring accounts receivable, (iii) returns and allowances, (iv) loan proceeds, (v) returns of principal, (vi) rebates and discounts by the seller (not manufacturer's coupons), (vii) withdrawals from inventory and occasional sales, and (viii) investment income. The bill also establishes a new deduction for receipts from business conducted in another state or foreign country which is subject to income tax in the other state or foreign country.

9. Allows any locality to exempt the design, development or other creation of computer software from the license tax.

10. Adds a new exemption for venture capital funds. This exemption includes investment assets and income of investors in investment arrangements, but does not apply to fees and investment returns earned by an investment firm on its own account. It also clarifies that gross receipts from the sale or lease of real estate are taxable by the locality where the property is located.

11. Exempts Henrico County's BPOL ordinance provisions dealing with thresholds and fees in effect on January 1, 1996, from the same provisions in bill.

Full text:
01/10/96  House: Presented & ordered printed 961935136  pdf
02/10/96  House: Committee substitute printed 966603136-H1  pdf
02/12/96  House: Printed as engrossed 966603136-EH1  pdf
02/28/96  Senate: Committee substitute printed 966609136-S1  pdf
03/09/96  House: Conference substitute printed 964733136-H2  pdf
03/20/96  House: Bill text as passed House and Senate (HB293ER)  pdf
04/15/96  Governor: Acts of Assembly Chapter text (CHAP0720)  pdf

Amendments:
House amendments
Senate amendments
Conference amendments

Status:
01/10/96  House: Presented & ordered printed 961935136
01/10/96  House: Referred to Committee on Finance
01/16/96  House: Assigned to Finance sub-committee: 2
02/10/96  House: Reported from Finance with sub. (21-Y 1-N)
02/10/96  House: Committee substitute printed 966603136-H1
02/10/96  House: Read first time
02/12/96  House: Read second time
02/12/96  House: Committee substitute agreed to 966603136-H1
02/12/96  House: Amendments by Mr. Brickley agreed to
02/12/96  House: Engrossed by House - com. sub. w/amds. 966603136-EH1
02/12/96  House: Printed as engrossed 966603136-EH1
02/13/96  House: Read third time and passed House (98-Y 2-N)
02/13/96  House: VOTE: PASSAGE (98-Y 2-N)
02/13/96  House: Communicated to Senate
02/14/96  Senate: Read first time
02/14/96  Senate: Referred to Committee on Finance
02/28/96  Senate: Reported from Finance with substitute (14-Y 2-N 1-A)
02/28/96  Senate: Committee substitute printed 966609136-S1
02/29/96  Senate: Constitutional reading dispensed (39-Y 0-N)
02/29/96  Senate: VOTE: CONST. READING DISPENSED (39-Y 0-N)
03/01/96  Senate: Read third time
03/01/96  Senate: Reading of substitute waived
03/01/96  Senate: Committee substitute agreed to 966609136-S1
03/01/96  Senate: Reading of amendments waived
03/01/96  Senate: Amendments by Mr. Stosch agreed to
03/01/96  Senate: Passed by for the day
03/04/96  Senate: Read third time
03/04/96  Senate: Reading of amendment waived
03/04/96  Senate: Amendment by Mr. Stosch agreed to
03/04/96  Senate: Passed by for the day
03/05/96  Senate: Read third time
03/05/96  Senate: Reading of amendment waived
03/05/96  Senate: Amendment by Mr. Hanger agreed to
03/05/96  Senate: Engrossed by Senate - comm. sub. w.amds. 966609136-ES1
03/05/96  Senate: Passed Senate with sub. w/amds. (27-Y 13-N)
03/05/96  Senate: VOTE: PASSAGE (27-Y 13-N)
03/06/96  House: Placed on Calendar
03/07/96  House: Senate sub. w/amds. rejected by House (5-Y 87-N)
03/07/96  House: VOTE: ADOPTION (5-Y 87-N)
03/07/96  Senate: Senate insisted on sub. w/amds. (37-Y 1-N)
03/07/96  Senate: VOTE: INSIST & REQUEST (37-Y 1-N)
03/07/96  Senate: Senate requested conference committee
03/07/96  House: House acceded to request
03/07/96  Senate: Conferees appointed by Senate
03/07/96  Senate: Senators: Stosch, Holland, Barry
03/07/96  House: Conferees appointed by House
03/07/96  House: Delegates: Brickley, Watkins, Scott
03/08/96  Senate: Reading of conference report waived
03/08/96  Senate: Conference report agreed to by Senate (32-Y 8-N)
03/08/96  Senate: VOTE: ADOPT CONFERENCE REPORT (32-Y 8-N)
03/08/96  Senate: Rec. of conf. report agreed to by Senate (40-Y 0-N)
03/08/96  Senate: VOTE: RECONSIDER (40-Y 0-N)
03/08/96  Senate: Conference report agreed to by Senate (30-Y 10-N)
03/08/96  Senate: VOTE: ADOPT CONFERENCE REPORT (30-Y 10-N)
03/08/96  Conference: House and Senate sub. rej. by conference comm.
03/08/96  Conference: Sub. recommended by conference comm. 964733136-H2
03/08/96  House: Conference report agreed to by House (99-Y 1-N)
03/08/96  House: VOTE: ADOPTION (99-Y 1-N)
03/09/96  House: Conference substitute printed 964733136-H2
03/20/96  House: Bill text as passed House and Senate (HB293ER)
03/25/96  House: Enrolled
03/26/96  House: Signed by Speaker
03/28/96  Senate: Signed by President
04/06/96  Governor: Approved by Governor-Chapter 720 (effective-see bill)
04/15/96  Governor: Acts of Assembly Chapter text (CHAP0720)