Legislation # 15-0111 Enactment Number none
Type Resolution Effective Date none
Introduction Date 3/25/2015
Title Resolution Authorizing the Appropriation of $765,000.00 from Committed Fund Balance – Departmental Savings to the Tax Refund Account to cover a Business and Professional License Tax Refund
 
Legislation History 15-0111
DateNotice Of ActionDescription
3/25/2015 Approved items 2 through 4 on the consent agenda.
3/20/2015 Received By Clerk's Office
 
View Attachments 15-0111
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Legislation Text 15-0111

 

City of Hampton, Virginia

Resolution

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 15-0111

 

Enactment Number: -

 

Resolution Authorizing the Appropriation of $765,000.00 from Committed Fund Balance Departmental Savings to the Tax Refund Account to cover a Business and Professional License Tax Refund

 

WHEREAS, West Telemarketing, LP has disputed methodology used by the Commissioner of the Revenue for the City of Hampton (the Commissioner) to assess the Business and Professional License (BPOL) tax and appealed the Commissioners determination to the State Tax Commissioner;

 

WHEREAS, notwithstanding the fact that the methodology used by the Commissioner was used by most Virginia localities to assess the BPOL tax on companies that conduct business outside the Commonwealth and previous state tax commissioners did not identify the method to calculate the deduction thus upholding the localities calculation of the BPOL tax, the current State Tax Commissioner issued a determination in favor of West Telemarketing, LP;

 

WHEREAS, the Commissioner and the City of Hampton, Virginia (the City) filed an Application for Judicial Review of the State Tax Commissioners Determination (Application for Review) in the Circuit Court for the City of Hampton;

 

WHEREAS, prior to the trial on the merits of the Application for Review, on January 8, 2015, the Supreme Court of Virginia in The Nielson Company (US), LLC, v. County Board of Arlington County, et al. held that the Nielsen Company, LLC could use the methodology for calculating BPOL tax (deduction of a portion of its out-of-state- gross receipts using an estimate without proving these receipts were included before taking the deduction) that was contrary to the methodology used by the Arlington County Commissioner of the Revenue; and

 

WHEREAS, given the decision of the Virginia Supreme Court, which is binding upon all localities in the Commonwealth of Virginia, the City and the Commissioner have agreed to settle the dispute with West Telemarketing, LP in the amount of $765,000.00.

 

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hampton authorizes the appropriation of seven hundred, sixty five thousand dollars and zero cents ($765,000.00) from Committed Fund Balance Departmental Savings to the Tax Refund Account to cover tax settlement with West Telemarketing, LP.

 

This resolution will take effect immediately upon adoption.

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on March 25, 2015.

 

 

 

Signed by ____________________________ Date _________________

George E. Wallace, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass, CMC

Clerk of the Council