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The Virginia Department of Taxation has issued a ruling that addresses the question “does the receipt of a PPP loan and its possible forgiveness constitute gross receipts for purposes of the Business, Professional, and Occupational License (BPOL) tax?”
Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed in March 2020, loans were made to taxpayers under the Payroll Protection Program (PPP). Under certain circumstances, the loan proceeds would not have to be repaid, and the loan would be forgiven.
Generally, loan forgiveness would be considered income under Internal Revenue Code Sec. 61(a)(11). The Ruling notes that, while the CARES Act specifically created an exclusion from the definition of income for purposes of income tax, that determination under the CARES Act is not dipositive for purposes of BPOL. Va. Code Sec. 58.1-3700 et seq. and the BPOL regulations provide the only authori
Lynchburg s commissioner of the revenue said he will share with fellow elected tax officials what he knows about processing internet sales tax data during a Zoom conference later in February.
$100,000 in revenue, or
200 separate transactions.
However, there’s an issue regarding whether or not Virginia’s current laws would allow out-of-state sellers to register in Virginia. Because none of them have physical operations in Virginia, none of them have possession of untaxed product in Virginia. Furthermore, Virginia’s codes regarding distributors don’t seem to apply or even allow remote sellers to get a distributor’s permit.
Because remote sellers don’t have a way to register their businesses with Virginia, there is no channel for them to pay the state’s taxes.
The change would mean that catalog retailers will no longer have an inherent pricing advantage compared to the brick-and mortar retailers. Previously, catalog retailers could offer a cigar at MSRP to customers in Virginia with no requirements to pay the 20 percent tax, now they will likely need to have the tax added.
King George County wants to be ready on July 1 to impose a tax on cigarettes, and the deadline is lighting a fire under county officials.
The King George Board of Supervisors last week appointed a committee of county officials to research, review and report back to the board March 16 on whatâs needed to implement a cigarette tax by the first of July. Even though thereâs not much time to learn all the ropes involved with taxing what County Attorney Matt Britton described as a âhighly regulated industry,â supervisors stressed thereâs too much money at stake not to be ready.