Section 98-18 BUSINESSES EXEMPT FROM LICENSE TAX.
No license fee or license tax is imposed or levied on any of the following businesses:
1. On any public service corporation except as provided in Virginia Code Section 58.1-3731 or as permitted by other provisions of law;
2. For selling farm or domestic products or nursery products, ornamental or otherwise, or for the planting of nursery products, as an incident to the sale thereof, outside of the regular market houses and sheds of this Town; provided, such products are grown or produced by the person offering such products for sale;
3. Upon the privilege or right of printing or publishing any newspaper, magazine, newsletter or other publication issued daily or regularly at average intervals not exceeding three months, provided the publication's subscription sales are exempt from state sales tax, or for the privilege or right of operating or conducting any radio or television broadcasting station or service;
4. On a manufacturer for the privilege of manufacturing and selling goods, wares and merchandise at wholesale at the place of manufacture;
5. On a person engaged in the business of severing minerals from the earth for the privilege of selling the severed mineral at wholesale at the place of severance, except as provided in Virginia Code Section 58.1-3712 and Section 58.1-3713;
6. Upon a wholesaler for the privilege of selling goods, wares and merchandise to other persons for resale unless such wholesaler has a definite place of business or store in the Town. This subdivision shall not be construed as prohibiting the Town from imposing a local license tax on a peddler at wholesale pursuant to Virginia Code Section 58.1-3718;
7. Upon any person, firm or corporation for engaging in the business of renting, as the owner of such property, real property other than hotels, motels, motor lodges, auto courts, tourist courts, travel trailer parks, lodging houses, rooming houses and boardinghouses; however, if the Town was imposing such a license tax on January 1, 1974, the Town shall not be precluded from the levy of such tax by the provisions of this subdivision;
8. Upon a wholesaler or retailer for the privilege of selling bicentennial medals on a nonprofit basis for the benefit of the Virginia Independence Bicentennial Commission or any local bicentennial commission;
9. On or measured by receipts for management, accounting, or administrative services provided on a group basis under a nonprofit cost-sharing agreement by a corporation which is an agricultural cooperative association under the provisions of Chapter 3, Article 2 (Section 13.1-312, et seq.), Title 13.1, of the Code of Virginia or a member or subsidiary or affiliated association thereof, to other members of the same group. This exemption shall not exempt any such corporation from such license or other tax measured by receipts from outside the group;
10. On or measured by receipts or purchases by a corporation which is a member of an affiliated group of corporations from other members of the same affiliated group. This exclusion shall not exempt affiliated corporations from such license or other tax measured by receipts or purchases from outside the affiliated group. This exclusion also shall not preclude the Town from levying a wholesale merchant's license tax on an affiliated corporation on those sales by the affiliated corporation to a non-affiliated person, company, or corporation, notwithstanding the fact that the wholesale merchant's license tax would be based upon purchases from an affiliated corporation. Such tax shall be based on the purchase price of the goods sold to the non- affiliated person, company, or corporation. As used in this subdivision the term "sales by the affiliated corporation to a non-affiliated person, company or corporation" shall mean sales by the affiliated corporation to a non- affiliated person, company or corporation where goods sold by the affiliated corporation or its agent are manufactured or stored in the Commonwealth prior to their delivery to the non-affiliated person, company or corporation;
11. On any insurance company subject to taxation under Chapter 25 (Section 58.1-2500, et seq.) of Title 58.1 of the Code of Virginia or on any agent of such company;
12. On any bank or trust company subject to taxation in Chapter 12 (Section 58.1-1200, et seq.) of Title 58.1 of the Code of Virginia;
13. Upon a taxicab driver, if the Town has imposed a license tax upon the taxicab company for which the taxicab driver operates;
14. On any blind person operating a vending stand or other business enterprise under the jurisdiction of the Department for the Visually Handicapped, or a nominee of the Department, as set forth in Virginia Code Section 63.1-164;
15. On any hospital, college, university, or other institution of learning not organized or conducted for pecuniary profit which by reason of its purposes or activities is exempt from income tax under the laws of the United States unless such tax was enacted by the Town prior to January 15, 1991. The provisions of this subdivision shall expire on July 1, 1997;
16. On an accredited religious practitioner in the practice of the religious tenets of any church or religious denomination. "Accredited religious practitioner" shall be defined as one who is engaged solely in praying for others upon accreditation by such church or religious denomination;
17. a. On or measured by receipts of a charitable nonprofit organization except to the extent the organization has receipts from an unrelated trade or business the income of which is taxable under Internal Revenue Code Section 511, et seq. For the purpose of this subdivision, "charitable nonprofit organization" means an organization which is described in Internal Revenue Code Section 501 (c) (3) and to which contributions are deductible by the contributor under Internal Revenue Code Section 170, except that educational institutions shall be limited to schools, colleges and other similar institutions of learning.
b. On or measured by gifts, contributions, and membership dues of a nonprofit organization. Activities conducted for consideration which are similar to activities conducted for consideration by for-profit businesses shall be presumed to be activities that are part of a business subject to licensure. For the purpose of this subdivision, "nonprofit organization" means an organization exempt from federal income tax under Internal Revenue Code Section 501 other than charitable nonprofit organizations; or
18. On any venture capital fund or other investment fund, except commissions and fees of such funds. Gross receipts from the sale and rental of real estate and buildings located in the Town remain taxable by the Town provided the Town is otherwise authorized to tax such businesses and rental of real estate.
(Ord. No. 2-96 Amended by Reserving Section 2-12-96-Effective Upon Passage)
(Ord. No. 13-96 Added Entire Section 12-16-96-Effective Upon Passage)