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ORDINANCE NO. 99-3 <br /> <br />SUGGESTED AMENDMENTS TO SEC. 11-31, SEC. 11-34, AND SEC. <br />11-36 OF THE CITY CODE (BPOL ORDINANCE) TO CLARIFY <br />AND TO CONFORM TO 1998 STATE LAW CHANGES: <br /> <br />Sec. 11~31. Exclusions and deductions from "gross receipts". <br /> <br /> (a) General Rule. Gross receipts for license tax purposes shall not include <br />any amount not derived from the exercise of the licensed privilege to engage in a <br />business or in the ordinary course of the business. <br /> <br />(b) The following items shall be excluded from gross receipts: <br /> <br /> ( 1 ) Amounts received and paid to the United States, the <br />Commonwealth or any county, city ortown for the Virginia retail sales or use tax, for any <br />local sales tax, meals tax, for any local excise tax on cigarettes, or for any Federal or state <br />excise tax on motor fuels. <br /> <br /> (2) Any amount representing the liquidation of a debt or conversion of <br />another asset to the extent that the amount is attributable to a transaction previously taxed <br />(e.g., the factoring of accounts receivable created by sales which have been included in <br />taxable receipts even though the creation of such debt and faztoring are a regular part of <br />its business). <br /> <br /> (3) Any amount representing returns and allowances granted by the <br />business to its customer. <br /> <br /> (4) Receipts which are the proceeds of a loan transaction in which the <br />licensee is the obligor. <br /> <br /> (5) Receipts representing the return of principal of a loan transaction <br />in which the licensee is the creditor, or the proceeds from the sale of a capital asset not <br />pan of the inventory of the business. <br /> <br /> (6) Rebates and discounts taken or received on account of purchases <br />by the licensee. A rebate or other incentive offered to induce the recipient to purchase <br />certain goods or services from a person other than the offeror, and which the recipient <br />assigns to the licensee in consideration of the sale of goods and services shall not be <br />considered a rebate or discount to the license, e, but shall be included in the licensee's <br />gross receipts together with any handling or other fees related to the incentive. <br /> <br /> (7) Withdrawals from inventory for purposes other than sale or <br />distribution and for which no consideration is received and the occasional sale or <br />exchange of assets other than inventory, whether or not a gain or loss is recognized for <br />Federal income tax purposes. <br /> <br /> <br />