23 Va. Admin. Code § 10-500-290 - Retail sales; banks
A. Banks
are generally exempt from local license tax, but § 58.1-1202 of the Code
of Virginia specifically authorizes localities to subject banks to local
license tax on the sale of blank checks, repossessed automobiles, and any other
tangible personal property sold by banks in connection with promotions or
otherwise. In connection with the sale of blank checks:
1. A bank is not engaged in retail sales if
the customer places an order for the checks directly with the printer and
authorizes the bank to collect for the printer by charging his account, and the
bank is not obligated to pay for the checks except insofar as it honors the
customer's authorization.
2. A bank
is engaged in retail sales if the customer places his order with the bank, and
the bank contracts with the printer and is liable to the printer, whether or
not the bank actually collects from the customer.
B. Section 58.1-1202 of the Code of Virginia
does not authorize the imposition of a BPOL tax on banks. It merely indicates
that banks are not exempt as to the sale of tangible personal property. A BPOL
tax can be imposed on such sales by a bank when authorized by § 58.1-3703
of the Code of Virginia. In other words, such sales must be a separate
business . If they are ancillary to the banking business, and classified as
financial services, they would be exempt from the BPOL tax.
Notes
Statutory Authority
§ 58.1-3701 of the Code of Virginia.
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