Minutes 02/23/1999 - Laserfiche WebLink

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ORDINANCE NO. 99-3 SUGGESTED AI~!ENDMENTS TO SEC. 11-3 I, SEC. I 1-34, AND SEC. 11-36 OF THE CITY CODE (BPOL ORDINANCE) TO CLARIFY AND TO CONFORM TO 1998 STATE LAW CHANGES: Sec. 11-31. Exclusions and deductions from "gross receipts". (a) General Rule. Gross receipts for license tax purposes shall not include any amount not derived from the exercise of the licensed privilege to engage in a business or in the ordinar3, course of the business. (b) The following items shall be excluded from gross receipts: (1) Amounts received and paid to the United States, the Commonwealth or any county, city ortown for the Virginia retail sales or use tax, for any local sales tax, meals tax, for any local excise tax on cigarettes, or for any Federal or state excise tax on motor fuels. (2) Any amount representing the liquidation of a debt or conversion of another asset to the extent that the amount is attributable to a transaction previously taxed (e.g., the factoring of accounts receivable created by sales which have been included in taxable receipts even though the creation of such debt and f-~ctoring are a regular part of its business). (3) Any amount representing returns and allowances granted by the business to its customer. (4) Receipts which are the proceeds of a loan transaction in which the licensee is the obligor. (5) Receipts representing the remm of principal of a loan-transaction · in which the licensee is the creditor, or the proceeds from the sale of a capital asset not part of the inventory of the business. (6) Rebates and discounts taken or received on account of purchases by the licensee. A rebate or other incentive offered to induce the recipient to purchase cd~tain goods or services ~'om a person other than the offeror, and which the redpient assigns to the .licerisen in consideration of the sale of goods and services .shall not be · considered a rebate or discount to the !icensee, but shall be included in the licensee's gross receipts together with any handling or other fees related to the incentive. (7) Withdrawals from inventory for purposes other than sale or distribution and for which no consideration is received and the occasional sale or exchange of assets other than inventory, whether or not a gain or loss is recognized for Federal income tax purposes. (8) Investment income not directly related to the privilege exercised by a licensable business not classified as madering financial services. This exclusion shall apply to interest on bank accounts of the business, and to interest, dividends and other income derived from the investment of its own funds in securities and other types of investments unrelated to the licensed privilege. This exclusion shall not apply to interest, late fees and similar income attributable to an installment sale or other transaction that occurred in the regular course of business. (9) Gross receipts for license tax purposes shall not include the license and admission taxes established under §§59.1-392 and 59.1-393 of the Code of Virginia, respectively, nor shall it include pari-mutual wagering pools as established under §59.1 - 392 of the Code of Virginia. (10) Gross receipts of real estate brokers for license tax purposes shall not include amounts received by such broker which arise from real estate sales transactions to the extent that such amounts are paid to a real estate agent as a commission on any real estate transaction and the agent is subject to a business license tax on such receipts. The broker claiming this exclusion shall identify to the assessor each agent to whom the excluded receipts have been paid, and the jurisdiction in the Commonwealth to which the agent is subject to business license taxes. (11) Whenever a motor vddcle deder accepts a trade-in as part of a sale of a motor vehicle, the dealer's gross receipts for license tax purposd shall not include the atnount of the trade-ill (12) Gross.receipts of J~roviders of funeral services fq~r lic .eCtse tax purposes shall not include amounts collec(ed by any prorider of funeral services on behalf of, and paid to, another person provi&.'ng goods or services in connection with a funeral This exc~n shall apply if the goods or services were. contracted for by the provider of funeral services or his customer. A prorider of funeral services claiming this exclusion shall klenti~ each pi~son to .whom the excluded receipts hove been paid and the amount of the excludqd. receipts pa~l. by the provlder of funeral services to such person. A "prorider of funeral services' means any person engaged in .the funeral service profession, operating a funeral service estabF~hment, or acting as a funeral director or embalmer. (13) Gross receipts for license tax purposes shall not include employee benefits paid by a staffing firm to, or for the benefit of, any contract eknployee for the period of time that the contract employee is ac~..;al.t.V employed f or the use of the client company p.ursuapt. to the terms of a PE.O services contract .or t~mporary help.services contract The taxable gross receipts of a staffing firm shall include any admluistratlve fee~. received by such firms frora a client company, whether on a fee.for. services basis or as a percentage of total receipts from the client company. For the purpose of this provisiqn, "client company" means any individ4t. a~ corporation, partnership, asso ' .clt.ttion, company, business, trus~ joint v .eqture, or other legal entity that elilets into a contract with a staffing firm by wMch the staj~ng firm, for a fe~