Subject:
Title
Consider a refund for a portion of the 2021 Business Professional and Occupational License (BPOL) tax for one business.
Body
Presented By: Chris Brown, City Attorney
Recommendation and Review
§ 58.1-3981 of the Code of Virginia requires City Council approval of any refunds in excess of $5,000. To provide Council with adequate information to determine approval while also maintaining confidentiality pursuant to Code of Virginia §58.1-3, the business name has been redacted on the Certificate of the Commissioner of the Revenue. The original version of the Commissioner’s certification is on file in the Commissioner’s office, protected by attorney-client privilege, and signed by the City Attorney and will be provided to the Treasurer following Council approval.
TAXPAYER A filed a 2021 business license renewal form with their prior year gross receipts as the basis. TAXPAYER A opened an operations support office in another jurisdiction in 2020 and was audited by that jurisdiction. Based on the Virginia Supreme Court case Ford Motor Credit v. Chesterfield County, the licensee had to use the payroll apportionment method to determine the amount of gross receipts reported in each jurisdiction and therefore reduce the gross receipts reported to Harrisonburg. The license basis was reduced to the gross receipts after apportionment and a refund is due. Amount of refund: $ 6,193.56.