Public Comments for: HB1743 - License tax, local; work group to review deduction for receipts attributable to out-of-state.
Last Name: Reynolds
Organization: Council On State Taxation
Locality: Fairfax County
Will be available for any questions.
Last Name: REYNOLDS
Organization: Council On State Taxation
Locality: Fairfax County
On behalf of the Council On State Taxation (COST), I respectfully submit these comments in support of H.B. 1743. Virginia’s current business, professional, occupation, and license tax (BPOL) is a gross receipts tax imposed at the local level. Currently, the tax allows a deduction from gross receipts for any receipts attributable to business conducted in another state or foreign country in which the taxpayer is liable for an income tax but not in states where the taxpayer is liable for a gross receipts tax or taxes imposed in lieu of an income tax. H.B. 1743 would correct that discrepancy
End of Comments
Newport News is opposed to any legislation that results in the elimination or reduction of local revenue streams. This bill, if enacted, will have a negative fiscal impact to the locality. BPOL accounts for about $23 million in city revenue, about two-thirds of which comes from a flat fee. However, a third of city businesses pay BPOL based on their business activity. This proposal needs to be studied more closely before this is implemented.