Chapter 54 - TAXATION#

Footnotes: --- (1) ---

Cross reference— Administration, ch. 2; buildings and building regulations, ch. 18; secondhand goods, ch. 42; privilege or use tax on vehicles for hire, § 66-26.

State Law reference— Vote for tax levy by town council, Code of Virginia, § 15.1-826; amount of municipal taxes and assessments to be collected, Code of Virginia, § 15.1-841; taxation generally, Code of Virginia, § 58-1 et seq.; priority of taxes in distribution of assets of person or corporation, Code of Virginia, § 58.1-6 et seq.; Setoff Debt Collection Act, Code of Virginia, § 58.1-520 et seq.; local sales and use taxes, Code of Virginia, § 58.1-605 et seq.; local bank franchise tax, Code of Virginia, § 58.1-1208 et seq.; local taxes generally, Code of Virginia, § 58.1-3000 et seq.; enforcement, collection, refunds, remedies and review of local taxes, Code of Virginia, § 58.1-3900 et seq.

Sec. 54-1. - Tax year; date assessments made.#

The tax year for all purposes shall begin on January 1 of each year and shall end on December 31 of each year. All assessments for town taxes and levies shall be made as of January 1 of such year.

(Code 1971, § 18-1)

Charter reference— Fiscal year, § 4.1.

State Law reference— "Tax year" defined, Code of Virginia, § 58.1-1.

Sec. 54-2. - Accounting for taxes collected and tax tickets.#

The town manager shall annually, at the first regular meeting of the council in September, furnish the council a detailed account of all the taxes placed in his hands for collection, and shall deliver to the council all unpaid tax accounts. The council shall audit the accounts and shall charge the manager with any tickets not accounted for and with any taxes lost by his negligence or carelessness. The council shall return to the manager or any other officer they may see fit the tax accounts thus turned in, or formerly turned in, or such part thereof as they may see fit, and shall charge the manager or other officer with such tickets as may be delivered to him for collection.

(Code 1971, § 18-7)

ARTICLE II. - PROPERTY TAXES#

Footnotes: --- (2) ---

State Law reference— Real property tax, Code of Virginia, § 58.1-3200 et seq.; tangible personal property tax, Code of Virginia, § 58.1-3500 et seq.

Sec. 54-26. - Levy and rates of certain taxes.#

The following taxes shall be levied and collected for each fiscal year:

(1) Real estate and tangible personal property. Upon all real estate and tangible personal property in the town not specifically exempt from municipal taxation by the laws of this state. Tangible personal property actually located beyond the corporate limits of the town and actually used in connection with farming or other business conducted beyond the corporate limits shall not be subject to this tax:

a. Real estate: $0.20/$100.00 of value.

b. Personal property: $0.65/$100.00 of value.

(2) Intangible personal property. Upon all intangible personal property in the town, not expressly exempt from municipal taxation by the laws of this state (i.e., merchants' capital), at the rate prescribed by the council.

(Code 1971, § 18-2; Ord. of 6-28-90(1))

State Law reference— Intangible personal property tax, Code of Virginia, § 58.1-1100 et seq.; merchants' capital tax, Code of Virginia, § 58.1-3509 et seq.

Sec. 54-27. - Date taxes due and payable; penalty and interest on unpaid taxes.#

The real estate and tangible personal property tax and the intangible personal property tax shall be due and payable on December 15 of the year for which levied, and after December 15 of the year in which levied there shall be added to all unpaid levies a penalty of ten percent of the amount thereof; and to the sum total of such levies and penalties unpaid on December 15 there shall be added interest at ten percent per annum.

(Code 1971, § 18-5; Ord. of 6-28-90(1); Ord. of 5-15-95)

State Law reference— Authority for above section, Code of Virginia, § 58.1-3916.

Sec. 54-28. - [Set-off debt collection program administrative fee.]#

The Town of Blackstone may collect from the debtor an administrative fee of up to $25.00 in addition to the amount of delinquent debt collected pursuant to its participation in any program created under the Set-off Debt Collection Act, as set forth in Article 21 (§ 58.1-520 et seq.) of the Code of Virginia.

(Ord. of 6-18-18(2))

ARTICLE III. - MEALS TAX#

Footnotes: --- (3) ---

State Law reference— Municipal excise taxes on meals, Code of Virginia, § 58.1-3840.

Sec. 54-51. - Definitions.#

The following words and phrases, when used in this article, shall have, for the purposes of this article, the following respective meanings except where the context clearly indicates a different meaning:

Cater means the furnishing of food, beverages, or both on the premises of another, for compensation.

Collector means the treasurer or designee.

Food means all food, beverages or both, including alcoholic beverages, purchased in or from a food establishment, whether prepared in such food establishment or not, and whether consumed on the premises or not, and without regard to manner, time or place of service.

Food establishment means any place in or from which food or food products are prepared, packaged, sold or distributed in the town, including but not limited to, any restaurant, dining room, grill, coffee shop, cafeteria, cafe, snack bar, lunch counter, convenience store, movie theater, delicatessen, confectionery, bakery, eating house, eatery, drugstore, ice cream/yogurt shops, lunch wagon or truck, pushcart or other mobile facility from which food is sold, public or private club, resort, bar, lounge, or other similar establishment, public or private, and shall include private property outside of and contiguous to a building or structure operated as a food establishment at which food or food products are sold for immediate consumption.

Meal means any prepared food or drink offered or held out for sale by a food establishment for the purpose of being consumed by any person to satisfy the appetite and is ready for immediate consumption. All such food and beverage, unless otherwise specifically exempted or excluded herein shall be included, whether intended to be consumed on the seller's premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper or by some other name, and without regard to the manner, time or place of service.

Treasurer means the treasurer and any duly designated deputies, assistants, inspector or other employees.

(Ord. of 6-28-90(2) § 8-32; Ord. of 6-21-00, § I; Ord. of 9-15-03(1), § I)

Sec. 54-52. - Enforcement.#

It shall be the duty of the treasurer to ascertain the name of every seller in the town, liable for the collection of the tax imposed by this article, who fails, refuses or neglects to collect such tax or to make the reports and remittances required by this article. The treasurer may have criminal process issued for such person, pursuant to sections 54-54 or 54-60, as is appropriate, in the manner provided by law and the treasurer may seek conviction or other civil remedy including injunction against such person.

In the event the purchaser of any meal refuses to pay the tax imposed by this article, the seller may call upon the police department to have criminal process issued pursuant to section 54-54.

(Ord. of 6-28-90(2) § 8-39B)

Sec. 54-53. - Treasurer/other power and duties.#

(a) It shall be the duty of the treasurer to ascertain the name of every person operating a restaurant in the town liable for the collection of the tax levied under section 54-55.

(b) The treasurer shall have the power to issue rules and regulations and develop forms for the administration and enforcement of this article. A copy of such rules and regulations shall be on file and available for public examination in the town office. Failure or refusal to comply with any rules and regulations issued under this section shall be deemed a violation of this article.

(Ord. of 6-28-90(2) § 8-46)

Sec. 54-54. - Penalty for violation of article.#

(a) Any person willfully failing or refusing to file a return as required under this article shall, upon conviction thereof, be guilty of a class 1 misdemeanor except that any person failing to file such a return shall be guilty of a Class 3 misdemeanor if the amount of tax lawfully assessed in connection with the return is $1,000.00 or less. Any person violating or failing to comply with any other provision of this article shall be guilty of a class 1 misdemeanor.

(b) Except as provided in subsection (a) above, any corporate or partnership officer, as defined in Virginia Code § 58.1-3906, or any other person required to collect, account for, or pay over the meals tax imposed under this article, who willfully fails to collect or truthfully account for or pay over such tax, or who willfully evades or attempts to evade such tax or payment thereof, shall, in addition to any other penalties imposed by law, be guilty of a class 1 misdemeanor.

(c) Each violation of or failure to comply with this article shall constitute a separate offense. Conviction of any such violation shall not relieve any person from the payment, collection or remittance of the tax as provided in this article.

(Ord. of 6-28-90(2) § 8-40; Ord. of 6-21-00, § VII; Ord. of 9-15-03(1), § VII)

Sec. 54-55. - Levy.#

There is hereby imposed and levied by the town on each person a tax at the rate of six and one-half percent on the amount paid for meals purchased from any food establishment, whether prepared in such food establishment or not, and whether consumed on the premises or not.

(Ord. of 6-28-90(2), § 8-33; Ord. of 6-21-00, § II; Ord. of 9-15-03(1), § II)

Editor's note— An increase in the meal's tax rate was adopted during the June 30, 2008 council meeting, and will take effect August 2008.

Sec. 54-56. - Collection of tax by seller.#

Every person receiving any payment for food with respect to which a tax is levied hereunder shall collect and remit the amount of the tax imposed by this article from the person on whom the same is levied or from the person paying for such food at the time payment for such food is made, provided, however, no blind person operating a vending stand or other business enterprise under the jurisdiction of the department of the visually handicapped and located on property acquired and used by the United States for a military or naval purpose shall be required to collect or remit such taxes.

All tax collection shall be deemed to be held in trust for the town.

(Ord of 6-21-00, § III; Ord. of 9-15-03(1), § III)

Editor's note— Section II of an ordinance adopted June 21, 2000, set out a provision repealing §§ 54-56 and 54-57 with a new § 54-56 as set out herein. Former §§ 54-56 and 54-57 pertained to similar subject matter, and derived from an ordinance adopted June 28, 1990(2), §§ 8-34 and 8-35.

Sec. 54-57. - Reserved.#

Editor's note— See note to § 54-56.

Sec. 54-58. - Report of taxes collected; remittance; preservation of records.#

It shall be the duty of every person required by this article to pay to the town the taxes imposed by this article to make a report thereof setting forth such information as the treasurer may prescribe and require, including all purchases taxable under this article, the amount charged the purchaser for each such purchase, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. Such records shall be kept and preserved for a period of five years. The treasurer or his duly authorized agents shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such person, for the purpose of administering and enforcing the provisions of this article, and to make transcripts of all or any parts thereof. The monthly reports shall be made on forms prescribed by the treasurer on or before the twentieth day of the calendar month following the month being reported. Each report shall be accompanied by a remittance of the amount of the tax due, made payable to the town.

(Ord. of 6-21-00, § VI; Ord. of 9-15-03(1), § VI)

Editor's note— Section VI of an ordinance adopted June 21, 2000, set out a provision repealing §§ 54-58 and 54-63 with a new § 54-56 as set out herein. Former §§ 54-58 and 54-63 pertained to reports and remittances and preservation of records, and derived from an ordinance adopted June 28, 1990(2), §§ 8-36 and 8-42.

Sec. 54-59. - Discount.#

For the purpose of compensating sellers for the collection of the tax imposed by this article, every seller shall be allowed two percent of the amount of the tax due and accounted for in the form of a deduction on his or her monthly return; provided, the amount due is not delinquent at the time of payment.

(Ord. of 6-28-90(2) § 8-37)

Sec. 54-60. - Penalty and interest for failure to remit taxes when due.#

(a) If any person whose duty is to do so shall fail or refuse to make the report or remit the tax required by this article to the treasurer within the time and in the amount required, there shall be added to the tax by the treasurer a penalty in the amount of ten percent of the tax due or the sum of $10.00, whichever is greater. In addition, there shall be added to such unpaid tax interest at the rate of ten percent per year, which equals .0274 percent interest charged per day on the amount past due (including tax and penalty). Such interest will commence on the twenty-first day of the month following the month for which such taxes are due.

(b) In the case of a false or fraudulent return with intent to defraud the town of any tax due under this article, a penalty of 50 percent of the tax shall be assessed against the person required to collect such tax. In addition, such person shall be guilty of a class 1 misdemeanor as defined by section 1-5 of the Town Code if convicted thereof.

(Ord. of 6-28-90(2), § 8-38)

Sec. 54-61. - Procedure when tax not reported or collected. If any person whose duty it is to do so shall fail or refuse to collect the tax imposed under this article and make timely report and remittance thereof, the treasurer shall proceed in such manner as is practicable to obtain facts and information on which to base an estimate of the tax due. As soon as the treasurer has procured whatever facts and information may be obtainable, upon which to base the assessment of any tax payable by any person who has failed to collect, report or remit such tax, the treasurer shall proceed to determine and assess against such person the tax, penalty and interest provided in this article, and shall notify the person by registered mail sent to his or her last known address, of the amount of such tax, penalty and interest. The total amount thereof shall be payable ten days after the date such notice is sent.

(Ord. of 6-28-90(2), § 8-39A)

Sec. 54-62. - Exemptions; limits on application. (a) The tax imposed under this article shall not be levied on the following items when served exclusively for off-premises consumption:

(1) Factory-prepackaged candy, gum, nuts and other items of essentially the same nature.

(2) Factory-prepackaged donuts, ice cream, crackers, nabs, chips, cookies and items of essentially the same nature.

(3) Food sold in bulk. For the purposes of this provision, a bulk sale shall mean the sale of any item that would exceed the normal, customary and usual portion sold for on premises consumption (e.g., a whole cake, a gallon of ice cream); a bulk sale shall not include any food or beverage that is catered or delivered by a food establishment for off-premises consumption.

(4) Alcoholic and non-alcoholic beverages sold in factory sealed containers.

(5) Any food or food product purchased with food coupons issued by the United States Department of Agriculture under the Food Stamp Program or drafts issued through the Virginia Special Supplemental Food Program for Women, Infants, and Children.

(6) Any food or food product purchased for home consumption as defined in the Federal Food Stamp Act of 1977, 7 U.S.C. § 2012, as amended except hot food or hot food products ready for immediate consumption. For the purposes of administering the tax levied hereunder, the following items whether or not purchased for immediate consumption are excluded from the said definition of food in the Federal Food Stamp Act: sandwiches, salad bar items sold from a salad bar, prepackaged single-serving salads consisting primarily of an assortment of vegetables, and non-factory sealed beverages. This subsection shall not effect provisions set forth in subparagraphs (c)(3), (4) and (5) herein below.

(b) A grocery store, supermarket or convenience store shall not be subject to the tax except for any portion or section therein designated as a delicatessen or designated for the sale of prepared food and beverages.

(1) Food and beverages furnished for food establishments to employees as part of their compensation when no charge is made to the employee.

(2) Food and beverages sold by day care centers, public or private elementary or secondary schools or food sold by any college or university to its students or employees.

(3) Food and beverages for use or consumption and which are paid for directly by the commonwealth, any political subdivision of the commonwealth or the United States.

(4) Food or beverages furnished by a hospital, medical clinic, convalescent home, nursing home, home for the aged, inform, handicapped, battered women, narcotic addicts or alcoholics, or other extended care facility to patients or residents thereof.

(5) Food and beverages furnished by a public or private non-profit charitable organization or establishment or a private establishment that contracts with the appropriate agency of the commonwealth to offer meals at concession prices to elderly, infirm, blind, handicapped or needy persons in their homes or at central locations.

(6) Food and beverages sold on an occasional basis, (not exceeding four times per calendar year), by a non-profit educational, charitable or benevolent organization, church or religious body as a fund raising activity, the gross proceeds of which are to be used by such organization exclusively for non-profit educational, charitable, benevolent or religious purposes.

(7) Food and beverages sold through vending machines.

(8) Meals prepared either in town or outside town limits which are served exclusively outside town limits.

((Ord. of 6-28-90(2) § 8-41; Ord. of 6-21-00, § IV; Ord. of 9-15-03(1), § IV; Ord. of 4-16-12(2))

Sec. 54-63. - Reserved. Editor's note— See note to § 54-58.

Sec. 54-64. - Duty of person going out of business. Whenever any person required to collect and remit to the town any tax imposed by this article shall cease to operate or otherwise dispose of his or her business, the tax shall immediately become due and payable, and the person shall immediately make to the treasurer a report and remittance thereof.

((Ord. of 6-28-90(2), § 8-43)

Sec. 54-65. - Advertising payment of absorption of tax prohibited. No seller shall advertise or hold out to the public in any manner, directly or indirectly, that all or any part of a tax imposed under this article will be paid or absorbed by the seller or by anyone else, or that the seller or anyone else will relieve any purchaser of the payment of all or any part of the tax.

((Ord. of 6-28-90(2), § 8-44)

Sec. 54-66. - Gratuities and service charges. Where a purchaser provides a gratuity for an employee of a seller, and the amount of the gratuity is wholly in the discretion of the purchaser, the gratuity is not subject to the tax imposed by this article, whether paid in cash to the employee or added to the bill and charged to the purchaser's account, provided in the latter case, the full amount of the gratuity is turned over to the employee by the seller.

An amount or percent, whether designated as a gratuity, tip or service charge, that is added to the price of the food and beverages by the seller, and required to be paid by the purchaser, as part of the selling price of the food and beverages is subject to the tax the imposed by this article.

(Ord. of 6-28-90(2), § 8-45; Ord. of 6-21-00, § V; Ord. of 9-15-03(1), § V)

Sec. 54-67. - Regulations. The provisions of this article are hereby declared to be severable. If any clause, sentence, section or part of this article shall for any reason be adjudged to be invalid, such invalidity shall not affect the parts which are not adjudfed to be invalid.

(Ord. of 6-28-90(2), § 8-47)

ARTICLE IIIB. - CIGARETTE TAX Footnotes: --- (4) --- Editor's note— An ordinance adopted April 16, 2012, amended art. IIIB in its entirety to read as herein set out. Former art. IIIB pertained to similar subject matter and derived from an ordinance adopted June 30, 2008.

Secs. 54-69. - Reserved. Editor's note— At the editor's discretion, § 54-69, entitled "Monitoring tax payments" has been redesignated as § 54-152.

Sec. 54-70. - Definitions. Except where the context clearly indicates a different meaning, the following words and phrases shall, for purposes of this article, have the meanings respectively ascribed to them in this section:

Cigarette shall have the meaning set forth in Virginia Code, § 58.1-1000 as in effect on the date of adoption of this article.

Dealer means every manufacturer, manufacturer's representative, selfwholesaler, wholesaler, public warehouser or other person who supplies a seller within the town with cigarettes.

Package means any container, regardless of the material used in its construction in which separate cigarettes are placed without such cigarettes being placed into any container within the package. Packages are those containers of cigarettes from which individual cigarettes are ordinarily taken when they are consumed by their ultimate user. A package contains 25 or fewer cigarettes. More than 25 cigarettes in the same container shall constitute additional packages depending on the number of additional cigarettes therein.

Person means any individual, firm, unincorporated association, company, corporation, joint stock company, group, agency, syndicate, trust or trustee, receiver, fiduciary, partnership and conservator. The word "person" as applied to a partnership, unincorporated association or other joint venture means the partners or members thereof, and as applied to a corporation shall include all the officers and directors thereof.

Sale means every act or transaction, regardless of the method or means employed, including the use of vending machines and other mechanical devices, whereby title to any cigarettes shall be transferred from the seller to any other person within the corporate limits of the town.

Seller means every person who transfers title to any cigarettes, or in whose place of business title to any cigarettes is transferred, within the corporate limits of the town, for any purpose other than resale.

Stamp means any insignia or symbol affixed as a small gummed piece of paper or decalcomania or affixed by heat transfer to be sold by or charged for by the town treasurer and to be affixed, manually or by heat transfer or by machine, to every package of cigarettes sold at retail in the town, under the authorization of the town treasurer.

Town means the Town of Blackstone, Virginia.

Treasurer means the treasurer for the Town of Blackstone, Virginia, or his or her designee. The town treasurer may approve the same stamp as or a combined stamp with the Commonwealth of Virginia and may approve a stamp with less than 100 percent visibility but no less than 50 percent visibility.

(Ord. of 4-16-12(3))

Sec. 54-71. - Levied; amount; tax additional to other taxes. In addition to all other taxes of every kind now or hereafter imposed by law, there is hereby levied and imposed by the town an excise tax on the sale of cigarettes equivalent to $0.22 on each package containing 25 or fewer cigarettes. The tax shall be paid by the seller, if not previously paid, and collected in the manner and at the time provided for in this article, provided that the tax payable for each package of cigarettes sold within the town shall be paid but once. The tax hereby levied shall not apply to free distribution of sample cigarettes in packages containing five or fewer cigarettes.

(Ord. of 4-16-12(3))

Sec. 54-72. - Methods of payment. The tax imposed by this article shall be evidenced by the use of a stamp, purchased from the town treasurer and affixed by the dealer or seller to every package of cigarettes to be sold within the town. The tax shall be paid at the time the stamps are purchased from the treasurer. Every dealer and every seller shall have the right to buy such stamps from the treasurer and to affix the same to packages of cigarettes as provided in this article.

(Ord. of 4-16-12(3))

Sec. 54-73. - Preparation and sale of stamps generally; discounts. For the purpose of making stamps available for use, the treasurer shall sell stamps of such denomination and in such quantities as may be necessary for the payment of the taxes imposed by this article. In the sale of such stamps, the treasurer shall allow a discount of two percent of the denominational or face value of the stamps to cover the costs incurred in affixing the stamps to packages of cigarettes.

(Ord. of 4-16-12(3))

Sec. 54-74. - Duties of dealers and sellers. (a) Every dealer in cigarettes is hereby required and it shall be his duty to purchase such stamps at the office of the treasurer as shall be necessary to pay the tax levied and imposed by this article, and to affix or cause to be affixed, a stamp or stamps of the prescribed monetary value to each package of cigarettes prior to delivering or furnishing such cigarettes to any seller.

(b) Every seller is hereby required to examine each package of cigarettes, prior to exposing the same for sale, for the purpose of ascertaining whether such package has the proper stamps affixed thereto or imprinted thereon as required by this article. If upon such examination unstamped or improperly stamped packages of cigarettes are discovered, the seller shall either:

(1) Purchase and affix to such packages of cigarettes the proper stamps covering the tax imposed by this article; or

(2) Immediately notify the dealer who provided the cigarettes, and upon such notification such dealer shall forthwith either affix to the unstamped or improperly stamped packages the proper amount of stamps, or shall replace such packages with others to which stamps have been properly fixed thereon.

(c) In the event any seller elects to purchase and affix stamps before offering cigarettes for sale, the dealer delivering and furnishing such cigarettes shall not be required to purchase and affix stamps to such cigarettes so sold or furnished; provided, that any such dealer shall, on the day following the day of such delivery, file with the treasurer a copy of the delivery memorandum showing the name and address of such seller and the quantity and type of cigarettes so delivered and furnished.

(Ord. of 4-16-12(3))

Sec. 54-75. - Monthly reports and recordkeeping. (a) It shall be the duty of each dealer to report monthly to the treasurer separately the following information:

(1) The quantity of stamped cigarettes sold or delivered during the period requested by the treasurer to:

a. Each dealer;

b. Each seller; and

c. Each separate person or place of business within the town.

(2) The quantity of stamps on hand, both affixed and unaffixed on the first day of the period of request and the quantity of stamps or stamped cigarettes received during the period; and

(3) Such further information as the treasurer may require for the proper administration and enforcement of this article for the determination of the exact number of cigarettes in the possession of each dealer or user.

(b) Upon request by the treasurer, any seller shall provide the treasurer, in writing, with the name and address of the dealer who provides the seller with cigarettes.

(c) It shall be the duty of every dealer and seller in the town to maintain and keep, for a period of two years, complete records of the number of packages of cigarettes delivered or sold by such dealer or seller and to make all such records available for examination by the treasurer, upon demand, at any and all reasonable times.

(Ord. of 4-16-12(3))

ARTICLE III. - CIGARETTE TAX (Continued)#

Sec. 54-76. - Assessment of unpaid taxes.#

(a) When, upon examination and audit of any invoices, records, books, canceled checks or other memoranda touching on the purchase, sale, receipt, storage or possession of tobacco products taxed herein, any dealer or other person liable for the tax is unable to furnish evidence to the treasurer of sufficient tax payments and stamp purchases to cover cigarettes which were sold, used, stored, received, purchased or possessed by him, the prima facie presumption shall arise that such cigarettes were received, sold, used, stored, purchased or possessed by him without the proper tax having been paid. The treasurer shall, from the results of such examination and audit based upon such direct or indirect information available, assess the tax due and unpaid.

(b) The dealer or other person liable for the tax shall be notified by certified mail or hand delivery of such deficiency and such tax, penalty and interest assessed shall be due and payable within ten days after notice of such deficiency has been issued.

(Ord. of 4-16-12(3))

Sec. 54-77. - Display of stamps; seizure.#

(a) Stamps shall be placed upon each package of cigarettes in such manner as to be readily visible to the purchaser and shall be affixed to each package of cigarettes in such a manner that their removal will require continued application of water or steam.

(b) Any seller found to possess, prior to being offered for sale, more than 60 packages of cigarettes without the tax paid stamp affixed who is not in the process of affixing such stamps thereto, shall be presumed to be in possession of untaxed cigarettes in violation of this article. If such person has received the cigarettes within the preceding 48 hours, and has not offered them for sale, such presumption shall not apply.

(c) Any vending machine located within the town containing cigarettes upon which the stamp has not been affixed or containing cigarettes placed so as to not allow visual inspection of the stamp through the viewing area as provided for by the vending machine manufacturer shall be presumed to contain untaxed cigarettes in violation of this article. If a vending machine does not allow for visual inspection of the stamp, the treasurer is hereby authorized to direct the owner to open the machine in order to determine whether the cigarettes contained therein are stamped.

(d) Any cigarettes, coin operated vending machines, counterfeit stamps, or other property found in violation of this article shall be declared contraband goods and may be seized by the treasurer. In addition to any tax due, the dealer or other person liable for the tax possessing such untaxed cigarettes shall be subject to civil and criminal penalties herein provided.

(e) In lieu of seizure, the treasurer may seal such vending machines to prevent continued illegal sale or removal of such cigarettes. The removal of such seal from a vending machine by any unauthorized person shall be a violation of this article. Nothing in this article shall prevent the seizure of any vending machine at any time after it is sealed.

(f) All cigarette vending machines shall be plainly marked with the name, address and telephone number of the owner of said machine.

(g) Any seized and confiscated cigarettes, vending machines or other property used in the furtherance of any illegal evasion of the tax may be disposed of by sale or other method deemed appropriate by the treasurer 30 days after notice to the person from whom the items were seized, and any other known holder of a property interest in the property. The notice shall state that the owner or holder of a property interest may challenge the proposed sale and forfeiture by written appeal to the Blackstone Town Manager at least five days prior to the date of the proposed sale. The appellant shall have the right to personally appear before the town manager, or his or her designee, and to present any relevant evidence or witnesses, to question any witness for the town, and to assert any available affirmative defense. The town manager shall render a written decision on the appeal within ten working days. If a timely appeal is filed, no sale and forfeiture shall occur unless and until the town manager renders a decision rejecting the appeal.

(h) No credit from any sale of cigarettes, vending machines or other property seized shall be allowed toward any tax, penalties or interest assessed.

(Ord. of 4-16-12(3))

Sec. 54-78. - Rules and regulations.#

The town manager and treasurer are hereby authorized and empowered to jointly prescribe, adopt, promulgate and enforce rules and regulations relating to the methods and means of cancellation of the stamps provided for in this article and to any and all other matters pertaining to the administration and enforcement of the provisions of this article. The treasurer is further authorized and empowered to examine the books, records, invoices, papers and any and all cigarettes in and upon any premises where the same are placed, stored, sold, offered for sale, or displayed for sale by a seller. The town manager and treasurer are each authorized to delegate any of the powers and duties set out in this article to one or more deputies or assistants, except as may be prohibited by law.

(Ord. of 4-16-12(3))

Sec. 54-79. - Violations of article generally.#

(a) Any person violating any of the provisions of this article shall be guilty of a class 1 misdemeanor. Conviction and punishment for such violation shall not relieve any person from the payment of any tax, interest or penalty imposed by this article.

(b) Any person who fails to pay any cigarette tax at the time it is due shall pay a late payment penalty in the amount of ten percent of the unpaid tax per month.

(c) Any person who fails to pay any cigarette tax at the time it is due shall pay interest on the tax found to be overdue and unpaid at the rate of three-quarters of one percent per month.

(d) In addition, any person who shall perform any fraudulent act or fail to perform any act for the purpose of evading the payment of any tax imposed by this article shall be required to pay a penalty in the amount of 50 percent of any tax found to be overdue and unpaid.

(e) Each day's violation of, or noncompliance with, any of the provisions of this article shall be and constitute a separate offense.

(Ord. of 4-16-12(3))

Sec. 54-80. - Violations of article prohibited; acts enumerated.#

(a) It shall be unlawful and a violation of this article for any person:

(1) To perform any act or fail to perform any act for the purpose of evading the payment of any tax imposed by this article or of any part thereof, or for any dealer or seller, with intent to violate any provision of this article, to fail or refuse to perform any of the duties imposed upon him under the provisions of this article, or to fail or refuse to obey any lawful order which the treasurer may issue under this article.

(2) To falsely or fraudulently make, forge, alter or counterfeit any stamp, invoice or reports, to procure or cause to be made, forged, altered or counterfeited any such stamp, or knowingly and willfully to alter, publish, pass or tender as true any false, altered, forged or counterfeited stamp or stamps.

(3) To sell any cigarettes upon which the tax imposed by this article has not been paid and upon which evidence of payment thereof is not shown on each package of cigarettes.

(4) To reuse or refill with cigarettes any package from which the cigarettes have been removed, for which the tax has been paid.

(5) To remove from any package any stamp with intent to use or cause the same to be used after the same have already been used, or to buy, sell or offer for sale or give away any used, removed, altered or restored stamps, to any person, or to reuse any stamp which has theretofore been used for evidence of the payment of any tax prescribed this article, or, except as to the treasurer, to sell or offer to sell any stamp provided for herein.

(6) To possess, store, use, authorize or approve the possession, storage or use for sale or resale of any cigarettes in quantities of more than 60 packages upon which the stamp has not been affixed; or

(7) To transport, authorize or approve the transportation of any cigarettes, in quantities of more than 60 packages into or within the town upon which the stamp has not been affixed, if they are:

a. Not accompanied by a bill of lading or other document indicating the true name and address of the consignor or seller and the consignee or purchaser and the brands and quantity of cigarettes transported; or

b. Accompanied by a bill of lading or other document which is false or fraudulent in whole or part; or

c. Accompanied by a bill of lading or other document indicating:

A consignee or purchaser in another state or the District of Columbia who is not authorized by the law of such other jurisdiction to receive or possess such cigarettes on which the taxes imposed by such other jurisdiction have not been paid, unless the tax of the state or district of destination has been paid and the said cigarettes bear the tax stamps of that state or district; or
A consignee or purchaser in the Commonwealth of Virginia but outside the town who does not possess a Virginia Sales and Use Tax Certificate, a Virginia Retail Tobacco License and, where applicable, both a business license and a retail tobacco license issued by the local jurisdiction of destination.

(Ord. of 4-16-12(3))

ARTICLE IV. - BANK FRANCHISE TAX#

Footnotes: --- (5) ---

State Law reference— Bank franchise tax, Code of Virginia, § 58.1-1200 et seq.; town tax, Code of Virginia, § 58.1-1209; branch offices in town deemed to be not within county, Code of Virginia, § 58.1-1211.

Sec. 54-86. - Definitions.#

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Bank means as provided in Code of Virginia, § 58.1-1201.

Net capital means a bank's net capital computed pursuant to Code of Virginia, § 58.1-1205.

(Ord. of 4-7-80(2), § I)

Cross reference— Definitions generally, § 1-2.

Sec. 54-87. - Tax imposed.#

(a) Pursuant to the provisions of Code of Virginia, § 58.1-1200 et seq., there is hereby imposed upon each bank located within the boundaries of this town a tax on net capital equaling 80 percent of the state rate of franchise tax set forth in Code of Virginia, § 58.1-1204.

(b) If any bank located within the boundaries of this town also has offices that are located outside the corporate limits hereof, the tax upon such branch shall be apportioned as provided by Code of Virginia, § 58.1-1211.

(Ord. of 4-7-80(2), § II)

State Law reference— Similar provisions, Code of Virginia, § 58.1-1209.

Sec. 54-88. - Filing of return and payment of tax.#

(a) On or after January 1 of each year, but not later than March 1 of any such year, all banks whose principal offices are located within this town shall prepare and file with the treasurer or comparable local assessing officer a return as provided by Code of Virginia, § 58.1-1207 in duplicate which shall set forth the tax on net capital computed pursuant to Code of Virginia, § 58.1-1200 et seq. The treasurer shall certify a copy of the bank's return and schedules and shall forthwith transmit such certified copy to the state department of taxation.

(b) If the principal office of a bank is located outside the corporate boundaries of this town and such bank has branch offices located within this town, in addition to the filing requirements set forth in subsection (a) of this section, any bank conducting such branch business shall file with the commissioner of the revenue or appropriate assessing officer of this county a copy of the real estate deduction schedule, apportionment and other items which are required by Code of Virginia, §§ 58.1-1207, 58.1-1211 and 58.1-1212.

(c) Each bank, on or before June 1 of each year, shall pay into the treasurer's office or other appropriate official of this town all taxes imposed pursuant to this article.

(Ord. of 4-7-80(2), § III)

Sec. 54-89. - Penalty upon bank for failure to comply with article.#

Any bank which fails to file a return or pay the tax required by this article or fails to comply with any other provision of this article shall be subject to a penalty of five percent of the tax due. If the town manager is satisfied that such failure is due to providential or other good cause, such return and payment of tax shall be accepted exclusive of such penalty, but with interest determined in accordance with Code of Virginia, § 58.1-15.

(Ord. of 4-7-80(2), § V)

State Law reference— Similar provisions, Code of Virginia, § 58.1-1216.

ARTICLE V. - BUSINESS AND PROFESSIONAL LICENSES#

Footnotes: --- (6) ---

Editor's note— An ordinance adopted December 16, 1996, repealed former §§ 54-111, 54-112, relative to business and professional licenses, and re-enacted §§ 54-111—54-119 to read as herein set out. The provisions of former §§ 54-111, 54-112 derived from Ord. of 12-2-82; Ord. of 1-3-83; Ord. of 6-28-90(1); Min. of 6-6-91; and Ord. of 9-20-03.

Sec. 54-111. - Overriding conflicting ordinance.#

Except as may be otherwise provided by the laws of the Commonwealth of Virginia, and notwithstanding any other current ordinances or resolutions enacted by this governing body, whether or not compiled in the Blackstone Town Code, to the extent of any conflict, the following provisions shall be applicable to the levy, assessment, and collection of licenses required and taxes imposed on businesses, trades, professions and callings and upon the persons, firms and corporations engaged therein within the town.

(Ord. of 12-16-96)

Sec. 54-112. - Definitions.#

For the purposes of this article, unless otherwise required by the context:

Affiliated group means:

(1) One or more chains of includible corporations connected through stock ownership with a common parent corporation which is an includible corporation if:

a. Stock possessing at least 80 percent of the voting power of all classes of stock and at least 80 percent of each class of the nonvoting stock of each of the includible corporations, except the common parent corporation, is owned directly by one or more of the other includible corporations; and

b. The common parent corporation directly owns stock possessing at least 80 percent of the voting power of all classes of stock and at least 80 percent of each class of the nonvoting stock of least one of the other includible corporations. As used in this subdivision, the term "stock" does not include nonvoting stock which is limited and preferred as to dividends. The term "includible corporation" means any corporation within the affiliated group irrespective of the state or country of its corporation; and the term "receipts" includes gross receipts and gross income.

(2) Two or more corporations if five or fewer persons who are individuals, estates or trusts own stock possessing:

a. At least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of the stock of each corporation, and

b. More than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each such person only to the extent such stock ownership is identical with respect to each such corporation.

When one or more of the includible corporations, including the common parent corporations a nonstock corporation, the term "stock" as used in this subdivision shall refer to the nonstock corporation membership or membership voting rights, as is appropriate to the context.

Assessment means a determination as to the proper rate of tax, the measure to which the tax rate is applied, and ultimately the amount of tax, including additional or omitted tax, that is due. An assessment shall include a written assessment made pursuant to notice by the assessing official or a self-assessment made by a taxpayer upon the filing of a return or otherwise not pursuant to notice. Assessments shall be deemed made by an assessing official when a written notice of assessment is delivered to the taxpayer by the assessing official or an employee of the assessing official, or mailed to the taxpayer at his last known address. Self-assessments shall be deemed made when a return is filed, or if no return is required, when the tax is paid. A return filed or tax paid before the last day prescribed by ordinance for the filing or payment thereof shall be deemed to be filed or paid on the last day specified for the filing of a return or the payment of tax, as the case may be.

Assessor means the treasurer of the town.

Base year means the calendar year preceding the license year, except for contractors subject to the provision of section 58.13715.

Broker shall mean an agent of a buyer or a seller who buys or sells stocks, bonds, commodities, or services, usually on a commission basis.

Business means a course of dealing which requires the time, attention and labor of the person so engaged for the purpose of earning a livelihood or profit. It implies a continuous and regular course of dealing, rather than an irregular or isolated transaction. A person may be engaged in more than one business. The following acts shall create a rebuttable presumption that a person is engaged in a business: 1) advertising or otherwise holding oneself out to the public as being engaged in a particular business; or 2) filing tax returns, schedules and documents that are required only of persons engaged in a trade or business.

Commodity shall mean staples such as wool, cotton, etc., which are traded on a commodity exchange and on which there is trading in futures.

Contractor shall have the meaning prescribed in Code of Virginia, § 58.13714.B, as amended, whether such work is done or offered to be done by day labor, general contract or subcontract.

Dealer for purposes of this article shall mean any person engaged in the business of buying and selling securities for his own account, but does not include a bank, or any person insofar as he buys or sells securities for his own account, either individually or in some fiduciary capacity, but not as part of a regular business.

Definite place of business means an office or a location at which occurs a regular and continuous course of dealing for 30 consecutive days or more. A definite place of business for a person engaged in business may include a location leased or otherwise obtained from another person on a temporary or seasonal basis; and real property leased to another. A person's residence shall be deemed to be a definite place of business if there is no definite place of business maintained elsewhere and the person is not licensable as a peddler or itinerant merchant.

Financial services means the buying, selling, handling, managing, investing, and providing of advice regarding money, credit, securities and other investments and shall include the service for compensation by a credit agency, an investment company, a broker or dealer in securities and commodities or a security or commodity exchange, unless such service is otherwise provided for in this article.

Gross receipts means the whole, entire, total receipts attributable to the licensed privilege, without deduction, except as may be limited by the provisions of the Code of Virginia, Chapter 37 of Title 58.1.

License year means the calendar year for which a license is issued for the privilege of engaging in business.

Personal services shall mean rendering for compensation any repair, personal, business or other services not specifically classified as "financial, real estate or professional service" under this article, or rendered in any other business or occupation not specifically classified in this article unless exempted from local license tax by the Code of Virginia, Title 58.1.

Professional services means services performed by architects, attorneys-at-law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations, and no others, as the Virginia Department of Taxation may list in the BPOL Guidelines promulgated pursuant to the Code of Virginia, § 58.1-3701. The department shall identify and list each occupation or vocation in which a professed knowledge of some department of science or learning, gained by a prolonged course of specialized instruction and study is used by its practical application to the affairs of others, either advising, guiding, or teaching them, and in serving their interests or welfare in the practice of an art or science founded on it. The word "profession" implies attainments in professional knowledge as distinguished from mere skill, and the application of knowledge to uses for others rather than for personal profit.

Purchases shall mean all goods, wares and merchandise received for sale at each definite place of business of a wholesale merchant. The term shall also include the cost of manufacture of all goods, wares, and merchandise manufactured by any wholesaler or wholesale merchant and sold or offered for sale. Such merchant may elect to report the gross receipts from the sale of manufactured goods, wares, and merchandise if it cannot determine or chooses not to disclose the cost of manufacture.

Real estate services shall mean rendering a service for compensation as lessor, buyer, seller, agent or broker and providing a real estate service, unless the service is otherwise specifically provided for in this article, and such services include, but are not limited to the following:

Appraisers of real estate
Escrow agents, real estate
Fiduciaries, real estate
Lessors of real property
Real estate agents, brokers and managers
Real estate selling agents
Rental agents for real estate

Retailer or retail merchant shall mean any person or merchant who sells goods, wares, merchandise for use or consumption by the purchaser or for any purpose other than resale by the purchaser, but does not include sales at wholesale to institutional, commercial and industrial users.

Security for purposes or this article shall have the same meaning as in the Securities Act (13.1-501 et seq.) of the Code of Virginia, or in similar laws of the United States regulating the sale of securities.

Those engaged in rendering financial services include, but without limitation, the following:

Buying installment receivables
Chattel mortgage financing
Consumer financing
Credit card services
Credit Unions
Factors
Financing accounts receivable
Industrial loan companies
Installment financing
Inventory financing
Loan or mortgage brokers
Loan or mortgage companies
Safety deposit box companies
Security and commodity brokers and services
Stockbroker
Working capital financing

Services shall mean things purchased by a customer which do not have physical characteristics, or which are not goods, wares, or merchandise.

Wholesaler or Wholesale merchant shall mean any person or merchant who sells wares and merchandise for resale by the purchaser, including sales when the goods, wares and merchandise will be incorporated into goods and services for sale, and also includes sales to institutional, commercial, government and industrial users which because of the quantity, price, or other terms indicate that they are consistent with sales at wholesale.

(Ord. of 12-16-96)

Sec. 54-113. - License requirement.#

(a) Every person engaging in the town in any business, trade, profession, occupation or calling (collectively hereinafter "a business") as defined in this article, unless otherwise exempted by law, shall apply for a license for each such business if 1) such person maintains a definitive place of business in the town 2) such person does not maintain a definitive office anywhere but does maintain an abode in the town, which abode for the purposes of this article shall be deemed a definite place of business, or 3) there is no definitive place of business but such person operates amusement machines, is engaged as a peddler or itinerant merchant, carnival or circus as specified in the Code of Virginia, § 58.1-3717, 3718, or 3728 respectively, or is a contractor subject to the Code of Virginia, § 58.1-3715 or is a public service corporation subject to the Code of Virginia, § 58.1-3731. A separate license shall be required for each definite place of business. A person engaged in two or more businesses or professions carried on at the same place of business may elect to obtain one license for all such businesses and professions if all of the following criteria are satisfied: 1) each business or profession is licensable at the location and has satisfied any requirements imposed by state law or other provisions of the articles of this jurisdiction; 2) all of the businesses or professions are subject to the same tax rate, or, if subject to different tax rates, the licensee agrees to be taxed on all businesses and professions at the highest rate; and 3) the taxpayer agrees to supply such information as the assessor may require concerning the nature of the several businesses and their gross receipts.

(b) Each person subject to a license tax shall apply for a license prior to beginning business, if he was not subject to licensing in the town on or before January 1 of the license year, or no later than March 1 of the current license year if he had been issued a license for the preceding license year. The application shall be on forms prescribed by the assessing official.

(c) The tax shall be paid with the application in the case of any license not based on gross receipts. If the tax is measured by the gross receipts of the business, the tax shall be paid on or before March 1.

(d) The assessing official may grant an extension of time, not to exceed 90 days, in which to file an application for a license, for reasonable cause. The extension shall be conditioned upon the timely payment of a reasonable estimate of the appropriate tax, subject to adjustment to the correct tax at the end of the extension together with interest from the due date until the date paid and, if the estimate submitted with the extension is found to be unreasonable under the circumstances, a penalty of ten percent of the portion paid after the due date.

(e) A penalty of ten dollars or ten percent of the tax whichever is greater will be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due date. Only the late filing penalty shall be imposed by the assessing official if both the application and payment are late; however, both penalties may be assessed if the assessing official determines that the taxpayer has a history of noncompliance. In the case of an assessment of additional tax made by the assessing official, if the application and, if applicable, the return were made in good faith and the understatement of the tax was not due to any fraud, reckless or intentional disregard of the law by the taxpayer, there shall be no late payment penalty assessed with the additional tax. If any assessment of tax by the assessing official is not paid within 30 days the treasurer may impose a ten percent late payment penalty. The penalties shall not be imposed, or if imposed, shall be abated by the official who assessed them, if the failure to file or pay was not the fault of the taxpayer. In order to demonstrate lack of fault, the taxpayer must show that he acted responsibly and that the failure was due to events beyond his control.

Acted responsibly means that 1) the taxpayer exercised the level of reasonable care that a prudent person would exercise under the circumstances in determining the filing obligations for the business and 2) the taxpayer undertook significant steps to avoid or mitigate the failure, such as requesting appropriate extension, (where applicable) attempting to prevent a foreseeable impediment, acting to remove an impediment once it occurred, and promptly rectifying a failure once the impediment was removed or the failure discovered.

Events beyond the taxpayer's control include, but are not limited to, the unavailability of records due to fire or other casualty; the unavoidable absence (e.g., due to death or serious illness) of the person with the sole responsibility for tax compliance; or the taxpayer's reasonable reliance in good faith upon erroneous written information from the assessing official, who was aware of the relevant facts relating to the taxpayer's business when he provided the erroneous information.

(f) Interest shall be charged at ten percent per annum on the late payment of the tax from the due date until the date paid without regard to fault or other reason for the late payment. Whenever an assessment of additional or omitted tax by the assessing official is found to be erroneous, all interest and penalty charged and collected on the amount of the assessment found to be erroneous shall be refunded together with interest on the refund from the date of payment or the due date, whichever is later. Interest shall be paid on the refund of any tax paid under this article from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at ten percent.

No interest shall accrue on an adjustment of estimated tax liability to actual liability at the conclusion of a base year. No interest shall be paid on a refund or charged on a late payment, in event of such adjustment, provided the refund or the late payment is made not more than 30 days from the date of the payment that created the refund, or the due date of the tax, whichever is later.

(Ord. of 12-16-96)

Sec. 54-114. - Situs of gross receipts.#

(a) General rule.#

Whenever the tax imposed by this article is measured by gross receipts, the gross receipts included in the taxable measure shall be only those gross receipts attributed to the exercise of a licensable privilege at a definite place of business within the town. In the case of activities conducted outside of a definite place of business, such as during a visit to a customer location, the gross receipts shall be attributed to the definite place of business from which such activities are initiated, directed, or controlled. The situs of gross receipts for different classifications of business shall be attributed to one or more definite places of business or offices as follows:

(1)#

The gross receipts of a contractor shall be attributed to the definite place of business at which his services are performed, or if his services are not performed at any definite place of business, then the definite place of business from which his services are directed or controlled, unless the contractor is subject to the provision of the Code of Virginia, § 58.1-3715.

(2)#

The gross receipts of a retailer or wholesaler shall be attributed to the definite place of business at which sales solicitation activities occur, or if sales solicitation activities do not occur at any definite place of business, then the definite place of business from which sales solicitation activities are directed or controlled; however, a wholesaler or distribution house subject to a license tax measured by purchases shall determine the situs of its purchases by the definite place of business at which or from which deliveries of the purchased goods, wares and merchandise are made to customers. Any wholesaler who is subject to license tax in two or more localities and who is subject to multiple taxation because the localities use different measures, may apply to the department of taxation for a determination as to the proper measure of purchases and gross receipts subject to license tax in each locality.

(3)#

The gross receipts of a business renting tangible personal property shall be attributed to the definite place of business from which the tangible personal property is rented or, if the property is not rented from any definite place of business, then the definite place of business at which the rental of such property is managed.

(4)#

The gross receipts from the performance of services shall be attributed to the definite place of business at which the services are performed or, if not performed at any definite place of business, then the definite place of business from which the services are directed or controlled.

(b) Apportionment.#

If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts should be attributed under the general rule. Except as to circumstances set forth in the Code of Virginia, § 58.1-3709, the gross receipts of the business shall be apportioned between the definite places of business on the basis of payroll. Gross receipts shall not be apportioned to a definite place of business unless some activities under the applicable general rule occurred at, or were controlled from, such definite place of business. Gross receipts attributable to a definite place of business in another jurisdiction shall not be attributed to the town solely because the other jurisdiction does not impose a tax on the gross receipts attributable to the definite place of business in such other jurisdiction.

(c) Agreements.#

The assessor may enter into agreements with any other political subdivision of Virginia concerning the manner in which gross receipts shall be apportioned among definite places of business. However, the sum of the gross receipts apportioned by the agreement shall not exceed the total gross receipts attributable to all of the definite places of business affected by the agreement, that its method of attributing gross receipts is fundamentally inconsistent with the method of one or more political subdivisions in which the taxpayer is licensed to engage in business and that the difference has, or is likely to, result in taxes on more than 100 percent of its gross receipts from all locations in the affected jurisdictions, the assessor shall make a good faith effort to reach an apportionment agreement with the other political subdivisions involved.

(Ord. of 12-16-96)

Sec. 54-115. - Limitations and extensions.#

(a)#

Where, before the expiration of the time prescribed for the assessment of any license tax imposed pursuant to this article, both the assessing official and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

(b)#

Notwithstanding the Code of Virginia, § 58.1-3903, the assessing official shall assess the local license tax omitted because of fraud or failure to apply for a license for the current license year and the six preceding years. This applies only to 1997 and later. Prior to 1977 is current plus three preceding years.

(c)#

The period for collecting any local license tax shall not expire prior to the period specified in the Code of Virginia, § 58.1-3940, two years after the date of assessment if the period for assessment has been extended pursuant to this subdivision, two years after the final determination of an appeal for which collection has been stayed pursuant to the following subsection 54-116 B or D of this article, or two years after the final decision in a court application pursuant to the Code of Virginia, § 58.1-3984, or similar law for which collection has been stayed, whichever is later.

(Ord. of 12-16-96)

Sec. 54-116. - Appeals and rulings.#

(a)#

Any person assessed with a licensing tax under this article as the result of an audit may apply within 90 days from the date of the assessment to the assessing official for a correction of the assessment. The application must be filed in good faith and sufficiently identify the taxpayer, audit period, remedy sought, each alleged error in the assessment, the grounds upon which the taxpayer relies, and any other facts relevant to the taxpayer's contention. The assessor may hold a conference with the taxpayer if requested by the taxpayer, or require submission of additional information and documents, further audit, or other evidence deemed necessary for a proper and equitable determination of the applications. The assessment shall be deemed prima facia correct. The assessor shall undertake a full review of the taxpayer's claims and issue a determination to the taxpayer setting forth its position. Every assessment pursuant to an audit shall be accompanied by a written explanation of the taxpayer's right to seek correction and the specific procedure to be followed in the town (e.g., the name and address to which an application should be directed).

(b)#

Provided an application is made within 90 days of an assessment, collection activity shall be suspended until a final determination is issued by the assessor, unless the assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of subsection (f) of Section 54-113 of this article, but no further penalty shall be imposed while collection is suspended. The term "jeopardized by delay" includes a finding that the application is frivolous, or that taxpayer desires 1) to depart quickly from the locality, 2) to remove his property therefrom, 3) to conceal himself or his property therein, or 4) to do any other act tending to prejudice, or to render wholly or partially ineffectual, proceedings to collect the tax for the period in question.

(c)#

Any person assessed with a license tax under this article as a result of an audit may apply within 90 days of the determination by the assessing official on an application pursuant to subsection A [of] section 54-1116 above to the tax commissioner for a correction of such assessment. The tax commissioner shall issue a determination to the taxpayer within 90 days of receipt of the taxpayers application, unless the taxpayer and the assessing official are notified that a longer period will be required. The application shall be treated as an application pursuant to the Code of Virginia, § 58.1-1821, and the tax commissioner may issue an order correcting such assessment pursuant to the Code of Virginia, § 58.1-1822. Following such an order, either the taxpayer of the assessing official may apply to the appropriate circuit court pursuant to the Code of Virginia, § 58.1-3984. However, the burden shall be on the party making the application to show the ruling of the tax commissioner is erroneous. Neither the tax commissioner nor the department of taxation shall be made a party to an application to correct an assessment merely because the tax commissioner has ruled on it.

(d)#

On receipt of a notice of intent to file an appeal to the tax commissioner under the above subsection the assessing official shall further suspend collection activity until a final determination is issued by the tax commissioner, unless the assessor determines the collection would be jeopardized by delay or the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of subsection (f) of section 54-113, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" shall have the same meaning as set forth in subsection (b) section 54-116.

(e)#

Any taxpayer may request a written ruling regarding the application of the tax to a specific situation from the assessor. Any person requesting such a ruling must provide all the relevant facts for the situation and may present a rationale for the basis of an interpretation of the law most favorable to the taxpayer. Any misrepresentation of change in the applicable law or the factual situation as presented in the ruling request shall invalidate any such ruling issued. A written ruling may be revoked or amended prospectively if 1) there is a change in the law, a court decision, or 2) the assessor notifies the taxpayer of a change in the policy or interpretation upon which the ruling was based. However, any person who acts on a written ruling which later becomes invalid shall be deemed to have acted in good faith during the period in which such ruling was in effect.

(Ord. of 12-16-96)

Sec. 54-117. - Recordkeeping and audits.#

Every person who is assessable with a license tax shall keep sufficient records to enable the assessor to verify the correctness of the tax paid for the license years assessable and to enable the assessor to ascertain what is the correct amount of tax that was assessable for each of those years. All such records, books of accounts and other information shall be open to inspection and examination by the assessor in order to allow the assessor to establish whether a particular receipt is directly attributable to the taxable privilege exercised within the town. The assessor shall provide the taxpayer with the option to conduct the audit in the taxpayer's local business office, if the records are maintained there. In the event the records are kept outside the town, copies of the appropriate books and records shall be sent to the assessor's office upon demand.

(Ord. of 12-16-96)

Sec. 54-118. - 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 profession in the ordinary course of business or profession.

(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, or for any local sales tax or any local excise tax on cigarettes for any federal or state excise taxes 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 return of principal or basis upon the sale of a capital asset.

(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 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 shall not be considered a rebate or discount to the licensee, 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 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.

(c)#

The following shall be deducted from gross receipts or gross purchases that would otherwise be taxable:

(1)#

Any amount paid for computer hardware and software that are sold to a United States federal or state government entity provided that such property was purchased within two years of the sale to said entity by the original purchaser who shall have been contractually obligated at the time of purchase to resell such property to a state or federal government entity. This deduction shall not occur until the time of resale and shall apply to only the original cost of the property and not to its resale price, and the deduction shall not apply to any of the tangible personal property which was the subject of the original resale contract if it is not resold to a state or federal government entity in accordance with the original contract obligation.

(2)#

Any receipts attributable to business conducted in another state or foreign country in which the taxpayer is liable for an income or other tax based upon income.

(Ord. of 12-16-96)

Sec. 54-119. - Rates of license taxes.#

Every person or business subject to licensure under the article shall be assessed and required to pay annually:

(1) Every such person or business with annual gross receipts shall be assessed and required to pay annually a license tax on all the gross receipts of such persons includible as provided in this article at a rate set forth below for the class of enterprise listed:

a. For contractors and persons constructing for their own account for sale, $0.11 per $100.00 of gross receipts;

b. For retailers, $0.11 per $100.00 of gross receipts;

c. For financial, real estate and professional services, $0.20 per $100.00 of gross receipts;

d. For repair, personal and business services and all other businesses and occupations not specifically listed or exempted in this article or otherwise by law, $0.20 per $100.00 of gross receipts;

e. For wholesalers, $0.05 per $100.00 of purchases (see the Code of Virginia, § 58.1-3716 for limitations);

f. The license tax on telephone and telegraph companies shall be one-half of one per centum of the gross receipts of such corporation from businesses in the town, provided however, that charges for long distance calls shall not be considered receipts of business in the town.

g. The license tax on corporations doing business of furnishing water or heat, light and power in the town, whether by means of electricity or gas, shall be one-half of one per centum of the gross receipts of such business accruing to such corporation from such business in the town.

h. For fortune tellers, clairvoyants and practitioners of palmistry, $1,000.00 per year;

i. For massage parlors, $5,000.00 per year;

j. For itinerant merchants or peddlers, $500.00 per year. Each person licensed as a peddler in the town shall be required to give a bond with surety approved by the town manager in the amount of $5,000.00; said bond to be for a period of the license to peddle issued, hereunder; said bond to be a fund for the citizens of this town who have claims against any peddler for defective goods sold and who cannot locate or serve with process said peddler in the State of Virginia. (See limitation in the Code of Virginia § 58.1-3717);

Licensed peddlers and itinerant merchants may not sell or offer their goods, wares or merchandise on any street in the historic Business District in the Town of Blackstone nor may they sell or offer their goods, wares or merchandise in or on any public place owned by the Town of Blackstone. Code of Virginia, § 58.1-3717(E).

k. The license tax on an amusement operator shall be (1) $200.00 per year regardless of the number of coin-operated amusement machines and (2) $0.20 per $100.00 of gross receipts only on the share of receipts actually received by such operator from coin machines operated within the Town. Amusement operator and amusement machine shall have the meaning as set forth in the Code of Virginia, § 58-266.

l. Any person engaged in the business of selling merchandise on commission by sample, circular or catalog for a regularly established retailer who has no stock or inventory under his control other than floor samples held for demonstration or sale and owned by the principal retailer shall be classified as a commission merchant and taxed only on commission income at $0.20 per $100.00.

No license tax assessed hereunder shall be prorated.

(Ord. of 12-16-96; Ord. of 4-18-05(2); Ord. of 4-25-05; Ord. of 12-18-17)

Sec. 54-120. - Minimum tax.#

The amount of license tax imposed under this article shall, in no event, be less than $10.00.

(Ord. of 10-15-12(2))

ARTICLE VI. - TRANSIENT OCCUPANCY TAX#

Footnotes: --- (7) ---

Editor's note— An ordinance adopted June 30, 2008, set out provisions intended for use as a new Art. IIIA, §§ 54-58—54-69. Inasmuch as sections so numbered already exist, to avoid duplication and at the editor's discretion, these provisions have been redesignated as a new Art. VI, §§ 54-141—54-152.

Sec. 54-141. - Definitions.#

The following words and phrases, when used in this article, shall have the following respective meanings, except where the context clearly indicates a different meaning:

Lodging place. Any public or private hotel, inn, hostelry, tourist home or house, motel, roominghouse, bed and breakfast or other lodging place within the town offering lodging for one or more persons at any one time for compensation to any transient.

Room rental. The total charge made by any lodging place for lodging or space furnished any transient. If the charge made by such lodging place to such transient includes any charge for services or accommodations in addition to that of lodging or the use of space, then such portion of the total charge as represents only room or space rental shall be distinctly set out and billed to such transient by such lodging place as a separate item.

Transient. Any person who, for any period of not more than 90 consecutive days, either at his own expense or at the expense of another, obtains lodging or the use of any space in any lodging place, for which lodging or use of space a charge is made.

(Ord. of 6-30-08(1))

Sec. 54-142. - Levied; rate.#

There is hereby imposed and levied on each and every transient a tax equivalent to six percent of the total amount paid for room rental by or for such transient to any lodging place.

(Ord. of 6-30-08(1))

Sec. 54-143. - Exceptions.#

No tax shall be payable under this article in any of the following instances:

(1) On room rental paid by any federal, State of Virginia or Town of Blackstone official or employee when on official business.

(2) On room rental paid to any hospital, medical clinic, nursing home, convalescent home or home for aged people.

(Ord. of 6-30-08(1))

Sec. 54-144. - Collection.#

Every person receiving any payment for room rental with respect to which a tax is levied under this article shall collect the amount of tax hereby imposed from the transient on whom the same is levied or from the person paying for such room rental, at the time payment for such room rental is made. The taxes required to be collected hereunder shall be deemed to be held in trust by the person required to collect the same until remitted as required by this article.

(Ord. of 6-30-08(1))

Sec. 54-145. - Report and remittance.#

(a) The person collecting any tax levied by this article shall make out a report, upon such forms and setting forth such information as the treasurer may prescribe and require, showing the amount of room rental charges collected, and the tax required to be collected, and shall sign and deliver the same to the treasurer, with a remittance of the tax. Such reports and remittances shall be made on or before the twentieth day of each month covering the amount of tax collected during the preceding month.

(b) Any person operating a lodging place regularly throughout the year may, upon written application to, and with the written consent of the treasurer, make reports and remittances on a quarterly basis in lieu of the monthly basis provided for in subsection (a) above. Such quarterly reports and remittances shall be made on the 20th day of April, July, October and January in each year, and shall cover the amounts collected during the three months immediately preceding the months in which reports and remittances are required.

(Ord. of 6-30-08(1))

Sec. 54-146. - Failure to collect, report or remit.#

(a) If any person shall fail or refuse to remit to the treasurer the tax required to be collected and paid under this article within the time and in the amount specified in this article, there shall be added to such tax by the treasurer, interest at the maximum yearly rates authorized by general law of the commonwealth, as provided for in Code of Virginia § 58.1-15, as amended, on the amount of the tax for each year or portion thereof from the first day following the day upon which the tax is due.

(b) If any person shall fail or refuse to collect the tax levied by this article and to make, within the time provided in this article, any report and remittance required by this article, the treasurer shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the treasurer shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such person the tax and penalties provided for by this article and shall notify such person by registered mail sent to his last known place of address of the total amount of such tax and interest and penalties, and the total amount thereof shall be payable within ten days from the date of such notice.

(Ord. of 6-30-08(1))

Sec. 54-147. - Records to be kept.#

It shall be the duty of every person liable for the collection and payment to the town of any tax imposed by this article to keep and preserve, for a period of three years, such suitable records as may be necessary to determine the amount of such tax, which records the treasurer or his designee shall have the right to inspect at all reasonable times.

(Ord. of 6-30-08(1))

Sec. 54-148. - Cessation of business.#

Whenever any person required to collect and pay to the town a tax under this article shall cease to operate or otherwise disposes of his business, any tax payable hereunder to the town shall become immediately due and payable and such person shall immediately make a report and pay the tax due.

(Ord. of 6-30-08(1))

Sec. 54-149. - Violations of article.#

Any person violating or failing to comply with any of the provisions of this article shall be guilty of a Class 1 misdemeanor. Conviction of such violation shall not relieve such person from the payment, collection or remittance of the tax provided for in this article.

(Ord. of 6-30-08(1))

Sec. 56-150. - Penalty for late remittance or false return.#

If any person whose duty it is to do so shall fail or refuse to file any report required by this article or to remit to the treasurer the tax required to be collected and paid under this article within the time and in the amount specified in this article, there shall be added to such tax by the treasurer a penalty in the amount of ten percent if the failure is not for more than 30 days, with an additional ten percent of the total amount of tax owed for each additional 30 days or fraction thereof during which the failure continues, not to exceed 25 percent in the aggregate, with a minimum penalty of $2.00.

(Ord. of 6-30-08(1))

Sec. 54-151. - Powers and duties of treasurer under article.#

It shall be the duty of the treasurer or his designee to ascertain the name of every person operating a lodging place in the town, liable for the collection of the tax levied by this article, who fails, refuses or neglects to collect the tax or to make, within the time provided by this article, the reports or remittances required herein. The treasurer and his designee may have a summons issued for such person, and may serve a copy of such summons upon such person in the manner provided by law and shall make one return of the original to the general district court of the county. Police powers are hereby conferred upon the treasurer and his designee while engaged in performing their duties as such under the provisions of this section and they shall exercise all the powers and authority of police officers in performing such duties.

(Ord. of 6-30-08(1))

Sec. 54-152. - Monitoring tax payments.#

The treasurer shall monitor and oversee the accuracy, timeliness and completeness of the payment of taxes levied under this article to the town. The treasurer shall adopt and promulgate such rules and regulations not inconsistent with the provisions of this article as deemed necessary for the effective administration of this section.

(Ord. of 6-30-08(1))