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LICENSES § 11-31 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 ordinary 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 or town 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 factoring 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 return 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 incen-tive offered to induce the recipient to purchase certain goods or services.. from a person other than the offeror, and which the recipient assigns to the licensee in consideration of the sale of goods and services shah not be considered a rebate or discount to the licensee, but shah 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 rendering 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-sections 59.1-392 and 59.1-393 of the Code of Virginia, respectively, nor shall it include pari-mutual wagering pools as established under section 59.1-392 of the Code of Virginia. Supp. No. 41, Rev. 675