(A) The Clerk/Treasurer is empowered to certify, after an audit of the gross receipts or expenditure records of the taxpayer, any refund that may be due either because of an overassessment of license taxes against the individual; because the person overestimated anticipated gross receipts or gross expenditures; or because the person, prior to the end of the expiration of the license tax year, has ceased to engage in the business for which the license tax was paid. Upon this certification, the Clerk/Treasurer shall make the required refund.
(B) Refunds allowable under this section shall be calculated according to the following formulae:
(1) Overassessment of license taxes. Any overassessment shall be refunded.
(2) Overestimation of anticipated gross receipts or gross expenditures. The taxes shall be recomputed, payable on the basis of actual gross receipts or actual gross expenditures. The resulting amount shall be subtracted from the original assessed amount. The difference shall equal the amount to be refunded.
(3) Persons ceasing to engage in business prior to the end of the license tax year. For persons who cease to engage in business prior to the end of the license tax year, divide the assessed amount of the license tax by 12 months. The resulting amount shall be multiplied by the number of months remaining in the license tax year. This shall be the amount to be refunded, provided that when the license is based on estimated gross receipts or gross expenditures, the tax due for the current year shall be computed on the actual gross receipts or gross expenditures to the date of the cessation of business. The difference shall equal the amount to be refunded or assessed, but in no case shall the refund reduce the tax below the minimum annual tax in the appropriate license tax schedule.
(C) No refund shall be allowable until all debts owed to the town are paid.
(1997 Code, § 18-52) (Ord. passed 5-31-1983)
Statutory reference:
Proration of license taxes, see VA Code, § 58.1-3710