(a) General Rule. Whenever the tax imposed by this chapter is measured by gross receipts, the gross receipts included in the taxable measure shall be only those gross receipts attributed to the exercise of a privilege, subject to licensure at a definite place of business within this jurisdiction, for the preceding calendar year. In the case of activities conducted outside of a definite place of business, such as during a visit to a customer location, the gross receipts shall be attributed to the definite place of business from which such activities are initiated, directed or controlled. The situs of gross receipts for different classifications shall be attributed to one or more definite places of business or offices as follows:
(1) The gross receipts of a contractor shall be attributed to the definite place of business at which services are performed, or, if the services are not performed at any definite place of business, then the definite place of business from which the services are directed or controlled, unless the contractor is subject to the provisions of section 58.1-3715 of the Code of Virginia, as amended.
(2) The gross receipts of any contractor who conducts business in the County for less than thirty days without a definite place of business in the Commonwealth of Virginia, where the amount of business done by such person in the County exceeds or will exceed the sum of twenty-five thousand dollars ($25,000) for the license year, shall be attributable to the place within the County where the contractor's services are performed.
(3) The gross receipts of a retailer or wholesaler shall be attributed to the definite place of business at which sales solicitation activities occur, or, if sales solicitation activities do not occur at any definite place of business, then the definite place of business from which sales solicitation activities are directed or controlled. However, a wholesaler or distribution house subject to a license tax measured by purchases shall determine the situs of its purchases by the definite place of business at which or from which deliveries of the purchased goods, wares and merchandise are made to customers. Any wholesaler who is subject to a license tax in two or more localities and who is subject to multiple taxation because the localities use different measurers, may apply to the Department of Taxation for a determination as to the proper measure of purchases and gross receipts subject to license tax in each locality.
(4) The gross receipts of a business renting tangible personal property shall be attributed to the definite place of business from which the tangible personal property is rented, or, if the property is not rented from any definite place of business, then to the definite place of business at which the rental of such property is managed; and
(5) The gross receipts from the performance of services shall be attributed to the definite place of business at which the services are performed, or, if not performed at any definite place of business, then to the definite place of business from which the services are directed or controlled.
(b) Apportionment. If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts are to be attributed, gross receipts of the business shall be apportioned between the definite places of business on the basis of payroll. Gross receipts shall not be apportioned to a definite place of business, unless some activities under the applicable general rule occurred at, or were controlled from, such definite place of business. Gross receipts attributable to a definite place of business in another jurisdiction shall not be attributed to this jurisdiction solely because the other jurisdiction does not impose a tax on the gross receipts attributable to the definite place of business in such other jurisdiction.
(c) Apportionment Agreements. The Commissioner of the Revenue may enter into agreements with any other political subdivision of Virginia concerning the manner in which gross receipts shall be apportioned among the definite places of business. However, the sum of gross receipts apportioned by the agreement shall not exceed the total gross receipts attributable to all of the definite places of business affected by the agreement. Upon being notified by a taxpayer that its method of attributing gross receipts is fundamentally inconsistent with the method of one or more of the political subdivisions in which the taxpayer is licensed to engage in business and that the difference has, or is likely to, result in taxes on more than 100 percent of its gross receipts from all locations in the affected jurisdictions, the assessor shall make a good faith effort to reach an apportionment agreement with the other political subdivisions involved. If an agreement cannot be reached, either the Commissioner or the taxpayer may seek an advisory opinion from the Department of Taxation pursuant to Section 58.1-3701 of the Code of Virginia, as amended. Notice of the request shall be given to the other party. Notwithstanding the provisions of Section 58.1-3993 of the Code of Virginia, as amended, when a taxpayer has demonstrated to a court that two or more political subdivisions of Virginia have assessed taxes on gross receipts that may create a double assessment within the meaning of section 58.1-3986 of the Code of Virginia, as amended, the court shall enter such orders pending resolution of the litigation as may be necessary to ensure the taxpayer is not required to pay multiple assessments, even though it is not then known which assessment is correct and which is erroneous.
(Ord. 96-08. Passed 10-16-96; Ord. 99-16. Passed 12-1-99; Ord. 22-16. Passed 10-12-22.)