§ 23-7. Situs of gross receipts.

(a)

General rule. Whenever the tax or fee imposed by this chapter is measured by total gross receipts, the total gross receipts included in the taxable measure shall be only those total gross receipts attributed to the exercise of a licensable privilege at a definite place of business within the city. In the case of activities conducted outside of a definite place of business, such as during a visit to a customer location, the total gross receipts shall be attributed to the definite place of business within the city from which such activities are initiated, directed or controlled, except as otherwise provided in this chapter. The situs of total gross receipts for different classifications of business shall be attributed to one (1) or more definite places of business as follows:

(1)

The total gross receipts of a contractor shall be attributed to the definite place of business at which his services are performed, or if his services are not performed at any definite place of business, then the definite place of business from which his services are directed or controlled, unless the contractor is subject to the provisions of Section 58.1-3715 of the Code of Virginia, 1950, as amended.

(2)

The total 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 or fee 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 or fee in two (2) or more localities and who is subject to multiple taxation because the localities use different measures, may apply to the department of taxation for a determination as to the proper measure of purchases and total gross receipts subject to license tax or fee in each locality.

(3)

The total 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 the definite place of business at which the rental of such property is managed.

(4)

The total gross receipts from the performance of services by a business 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 the definite place of business from which the services are directed or controlled.

(b)

Apportionment. If the licensee has more than one (1) definite place of business and it is impractical or impossible to determine to which definite place of business total gross receipts should be attributed under the general rule, and the affected jurisdictions are unable to reach an apportionment agreement, the total gross receipts of the business shall be apportioned between the definite places of businesses 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 the city in the event the other jurisdiction does not impose a tax or fee on the total gross receipts attributable to the definite place of business in such other jurisdiction.

(c)

Agreements. The assessor may enter into agreements with any other political subdivision of Virginia concerning the manner in which total gross receipts shall be apportioned among definite places of business. However, the sum of the total 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. In the event the commissioner is notified or becomes aware that its method of attributing total gross receipts is fundamentally inconsistent with the method of one (1) or more political subdivisions in which the taxpayer is licensed to engage in business and that the difference has, or is likely to, result in taxes or fees on more than one hundred (100) percent of its total 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 assessor or taxpayer may seek an advisory opinion from the department of taxation pursuant to Section 58.1-3701; notice of the request shall be given to the other party. Notwithstanding the provisions of Section 58.1-3993, when a taxpayer has demonstrated to a court that two (2) or more political subdivisions of Virginia have assessed taxes or fees on total gross receipts that may create a double assessment within the meaning of Section 58.1-3986, the court shall enter such orders pending resolution of the litigation as may be necessary to ensure that 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. No. 4969-96, § 1)

(Ord. No. 4969-96, § 1)