Business Taxes

Fairfax County, Virginia

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12000 Government Center Parkway, Suite 223
Fairfax, VA 22035

Juan Rengel,
Division Director

BPOL Gross Receipts Exclusions

Business, Professional and Occupational License (BPOL) taxes are based upon the gross receipts as defined in Fairfax County Code, Section 4-7.2-1(a). Exclusions from gross receipts are set out in Fairfax County Code, Section 4-7.2-1(b) and Code of Virginia, Title 58.1.

Exclusions from gross receipts:

A sample list of exclusions is listed below. A complete listing of exclusions from gross receipts can be found on the county’s BPOL Exclusion Worksheet (Form 8TA-EX) or by contacting our office. All exclusion requests must be attached to the BPOL Exclusion Worksheet along with the required documentation.

  • Receipts excluded by Virginia law pursuant to Code of Virginia Section 58.1-3703(C).
  • Revenues attributable to taxable business activity conducted in another jurisdiction within the Commonwealth of Virginia and the volume attributable to that business activity is deductible pursuant to Code of Virginia Sections 58.1-3708 and 58.1-3709.
  • Pursuant to Code of Virginia Section 58.1-3732, those amounts not derived from the exercise of the licensed privilege to engage in a business or profession in the ordinary course of business.
  • Revenues attributable to business activity with a taxable situs in another jurisdiction not within the Commonwealth of Virginia which shall include any amount attributable to business conducted in another state or foreign country in which the taxpayer is liable for an income or other tax based upon income.
  • Receipts subject to a license tax on the same business activity imposed by a town government in accordance with Code of Virginia Section 58.1-3711.
  • Amounts received and paid to the United States, the Commonwealth or any county, city or town for the Virginia retail sales or use tax, for any local sales tax or any local excise tax on cigarettes, for any federal or state excise taxes on motor fuels.
  • Any amount paid for computer hardware and software that are sold to a United States federal or state government entity provided that such property was purchased within two years of the sale to said entity by the original purchaser who shall have been contractually obligated at the time of purchase to resell such property to a state or federal government entity. This deduction shall not occur until the time of resale and shall apply to only the original cost of the property and not to its resale price, and the deduction shall not apply to any of the tangible personal property which was the subject of the original resale contract if it is not resold to a state or federal government entity in accordance with the original contract obligation.
  • Membership dues collected by trade, business, professional, service or civic associations, or other similar nonprofit organizations.
  • Amounts paid by advertising agents and agencies for any customer for advertising space, radio time, television time, electrical transcription, pressing, art work, engraving, plate, mats, printing stock and postage.
  • Income of a charitable nonprofit organization except to the extent an organization has receipts from an unrelated trade or business the income of which is taxable under Internal Revenue Code § 511 et seq.
  • Donations, gifts or contributions made without consideration to a nonprofit organization described in Internal Revenue Code § 501.
  • Amounts received from withdrawals from inventory for purposes other than sale or distribution and for which no consideration is received and the occasional sale of assets other than inventory whether or not a gain or loss is recognized for federal purposes.
  • Investment income not directly related to the privilege exercised by a business subject to licensure not classified as rendering financial services such as interest on bank accounts of the business, and to interest, dividends and other income derived from the investment of its own funds in securities and other types of investments unrelated to the licensed privilege. This exclusion shall not apply to interest, late fees and similar income attributable to an installment sale or other transaction that occurred in the regular course of business.
  • Receipts derived solely from the design, development or other creation of computer software for lease, sale or license shall be subject to an exclusion in the amount set forth in the table below. This exclusion shall apply only to those receipts attributed to computer software design, development or creation activities actually performed at a definite place of business within Fairfax County as specified by Section 4-7.2-6 of this Article.
The amount of gross receipts excluded by this section shall be determined as follows:
Tax Year Beginning Percentage Exclusion
January 1, 1999 33 1/3% of software receipts
January 1, 2000

66 2/3% of software receipts

January 1, 2001 100% of software receipts

 

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