Forms & Filing Procedures Payment Information Business Professional and Occupational License (BPOL) Tax Transient Occupancy Tax Answers to Business Tax Frequently Asked Questions Forms and Filing Procedures I did not get my filing form; what do I do? You may contact staff in our Business Tax Division by e-mail at btcor@loudoun.gov or by phone at 703-777-0260 to request that another filing form be mailed. Alternatively, you may renew your business license and report your business property online beginning January 6, 2009. You will need your account number and the business owner name on the respective accounts to file online.
If you do not wish to renew online, you may still file by mail or by visiting one of the Commissioner of the Revenue’s offices in Leesburg or Sterling. It is the responsibility of the business owner to ensure that receipts and property are reported by the respective due date even if a filing form has not been received by the taxpayer. When does the Commissioner of the Revenue mail out renewal/filing forms? Business Professional and Occupational License (BPOL) Renewal Forms are mailed at the end of January and are due March 1. Business Personal Property Tax (BPPT) filing forms are mailed in March and are due April 15. When the filing deadline falls on a weekend the filing date is extended until the next business day. You must file either online or complete and return the renewal forms by the respective filing deadline. Failure to do so may result in the assessment of penalties and interest. May I send someone to the office of the Commissioner of the Revenue to fill out my renewal for me? If you have a business representative visiting our offices to file in person, please make sure that individual is authorized to act on behalf of the company. If that person is not the owner, an officer, or member listed on paperwork previously filed with our office, he or she will be unable to file without written documentation signed by the owner/officer/member of the company authorizing such action on behalf of the company. I would like to send my renewal information overnight, but UPS, FedEx, etc. will not use a Post Office Box for the address. What address do I use? Overnight packages for the Commissioner of the Revenue may be sent to:
Commissioner of the Revenue
Attn: Business Tax
1 Harrison St, S.E. , 1st Floor
Mailstop #32
Leesburg, VA 20175 In reviewing the information I supplied to your office, I realized that I filled out the form(s) incorrectly. How do I make necessary changes? If you have submitted a form and later realize it contained errors, you must correct the information in writing. The corrected version must include the original information, a statement as to what was incorrect, and the "new" corrected information. Please make sure to include a contact name and phone number in order for us to make contact if we need clarification or further documentation. This information can be either mailed or faxed to the office. Our mailing address is: Commissioner of the Revenue, P.O. Box 8000, Mailstop #32, Leesburg, VA 20177-9804 and the office fax number is 703-777-0263. What do I need to do to get my name corrected on the bill? If this is strictly a name change and your tax identification number has not changed, fax or email us the new name. If the name change involves a new Federal Employer Identification Number (FEIN), you will need to complete a new Business Tax Declaration as this is a new entity for tax purposes. Also, please do not forget to supply a written statement closing the original entity if it is appropriate. The office fax number is 703-777-0263 and the business tax division e-mail is btcor@loudoun.gov. How do I change or correct my address on my Business Tax Accounts? All renewal/filing forms have a section to assist taxpayers with address changes. When completing the forms, please do not use stamps or stickers as the scanning equipment will not correctly read these changes. If you move before or after the renewal cycle, it is still important to notify us of any address changes. You may do so by fax, 703-777-0263, or e-mail btcor@loudoun.gov. Please be sure to include the account numbers. You must also indicate whether the change is for only the mailing address or also for the physical address. What do I need to do to close my business? In order to close your business and thus end your tax liability for a specific business account, you must notify the Office of the Commissioner of the Revenue in writing. Fax, mail, or email and supply the following information: Name of the Business Owner, Trade Name of the Business, Federal Employer Identification Number (FEIN) or Social Security Number (SSN) associated with the accounts, and the account numbers, along with the exact date the business closed. This statement must be signed by the owner or an officer listed with our office. I am a manufacturer with idle equipment. How do I report idle machinery and tools (M&T)? To report idle M&T, please complete an Idle Machinery and Tools Declaration. If a manufacturer has M&T that was idle before January 1 of the prior tax year, the manufacture must notify the Commissioner of the Revenue’s office in writing by April 1 of the current tax year so that it may be exempted from local property taxes. The M&T must have been idle on January 1 of the current tax year and there is no prospect that such M&T will be returned to use during the current tax year. Manufacturers intending to withdraw M&T from service prior to January 1 of the next tax year must notify the Commissioner of the Revenue’s office in writing by April 1 of the current tax year. The M&T may not be in use on January 1 of the next tax year and there is no prospect that such M&T will be returned to use during the next tax year. For each piece of idle M&T, the manufacturer must provide the original purchase price, a brief description, the year of purchase, and the date the M&T became idle. Payment Information When will my taxes be due if I am appealing my assessment? Taxes must be filed on the due date regardless of whether or not an appeal is taking place. Taxes not paid by the due date will result in a 10% penalty plus a monthly interest charge. If you pay your taxes in full and there is an assessment change, overpayments will be refunded or underpayments assessed. Assessment appeals do not relieve businesses of paying taxes by the due date. Business Professional and Occupational License (BPOL) Tax When does my business license expire? Although the license period is for the calendar year, your 2008 business license is valid until March 1, 2009, the business license renewal deadline. Business license renewal forms will be mailed at the end of January, however, you may file online at www.loudoun.gov/bpol-file beginning January 6, 2009. I am starting a small home-based business. Do I need a business license? Businesses located in Loudoun County, including those that are home-based, are subject to a gross receipts tax. Gross receipts are the income of a business before any deductions are made. You are required to register your business with the Commissioner of the Revenue within 30 days of commencing operations. Forms and step-by- step instructions are available on the county website here. Are there any exclusions or deductions from Business Professional Occupational License (BPOL) taxes? Yes. See the pertinent section of the state code here. What if I don't know what my gross receipts were by the March 1 business license filing and payment deadline? Virginia Code § 58.1-3703.1 A 2 c authorizes the Commissioner of the Revenue to grant a business license filing extension prior to the due date for reasonable cause. Reasonable cause being a failure to file despite the exercise of ordinary business care and prudence. The reason for failing to file must be such that a prudent businessperson would have acted similarly under the circumstances. The extension may be granted upon payment of a reasonable estimate of the license tax due. Please contact the office by phone or e-mail should you require a BPOL filing extension. Can I obtain a listing of Loudoun County businesses, including address and telephone number, from the Commissioner of the Revenue? Information is maintained by the Commissioner of the Revenue for the purposes of tax administration and most of that information is protected from disclosure by law. The Code of Virginia, § 58.1-3 is very specific with regard to privacy of tax information and only allows local tax officials to disclose "whether a person, firm or corporation is licensed to do business in that locality." Due to the volume of requests for information maintained by the Commissioner of the Revenue and the Commissioner's authority under Va. Code, the Commissioner has available a list of persons, firms and corporations licensed to do business in Loudoun County. This list contains only the owner name of all currently licensed businesses. If you would like a copy of the list, please contact the Business Tax Division in the Commissioner of the Revenue’s office by e-mail btcor@loudoun.gov or by phone at 703-777-0260. A list of businesses whose owners have opted to have their information released is available upon request. If you would like a copy of the list, please contact the Business Tax Division in the Commissioner of the Revenue’s office by e-mail btcor@loudoun.gov or by phone at 703-777-0260. You should be aware that the Commissioner of the Revenue's office licenses building trades contractors with projects in Loudoun County, regardless of where the business is physically located. In addition, the office only licenses businesses that are located in Loudoun County, but outside the incorporated limits of Hamilton, Hillsboro, Lovettsville, Leesburg, Middleburg, Purcellville and Round Hill. You may wish to contact each of these incorporated towns to obtain information regarding businesses that are licensed and physically located within each town's respective corporate limits. Transient Occupancy Tax What is Transient Occupancy Tax (TOT)? Transient Occupancy Tax is a tax paid by transients and is collected by operators of hotels, motels, boarding houses, and other lodging places which can accommodate four or more persons at one time and travel campgrounds that offer guest rooms or other accommodations rented out for continuous occupancy for fewer than 30 consecutive days. The tax is five percent of the total amount paid for room rental. If the room rental charge is not separately stated on the bill, the tax must be calculated on the entire room charge. Where do transient occupancy tax dollars go? Of the five cents per dollar charged, two cents goes to the county's General Fund and three cents is to be spent promoting tourism, travel or business that generates tourism or travel in Loudoun County. For more information regarding the county’s budget, please visit the Loudoun County Budget webpage. If I collect TOT, do I have to have a business license as well? Operators of hotels or motels renting eight or more guestrooms are subject to the Business Professional and Occupational License tax. Should the transient occupancy tax be imposed on meeting rooms? TOT does not apply to meeting rooms. It is to be imposed only for the occupancy of any room or space that is suitable or intended for occupancy by transients for dwelling, lodging, or sleeping purposes. How do I calculate TOT if the hotel charges include fees in addition to that of room rental? If the charge made by any hotel to a transient includes an additional charge, then the portion of the total charge representing only room rental should be distinctly set out and billed to such transient as a separate item. If the room rental charge is not separately stated on the bill, then the tax must be calculated on the entire charge. Who is exempt from TOT? Transients who stay 30 consecutive nights or more are exempt from Loudoun County TOT. Transients who stay 90 consecutive nights or more are exempt from Virginia retail sales and use tax on the room charge, as well. For further guidance on Virginia State retail sales and use tax regulations, please visit the Virginia Department of Taxation website at www.tax.virginia.gov.
Room charges paid directly by the Federal Government or a Federal Agency, whether direct-billed or paid with a qualified exempt government-issued credit card, are not subject to TOT. Most qualified exempt government-issued credit cards will have the statement "Exempt" printed on the card. If room charges are paid for by a government employee, TOT is applied to the room charge even if the employee is later reimbursed for such charges by the Federal Government or a Federal Agency. If a company rents a room for 30 consecutive days or more and different employees occupy it during that period, is the company exempt from TOT? Yes. It is not necessary that the same transient occupy the room for 30 consecutive days or more. A company may rent the room and have different employees occupy it during the 30 consecutive day period. What are the due dates for the reporting and remittance of transient occupancy taxes collected? The taxes collected from transients are held in trust by operators of lodging establishments until remitted to the county. On a quarterly basis, hotel operators report room charges and tax amount calculated and remit TOT collected to the Commissioner of the Revenue. TOT report and payment deadlines are as follows: | Report and Payment Deadline | TOT Collection Period | | January 31 | October – December | | April 30 | January – March | | July 31 | April – June | | October 31 | July – September | What do I do if TOT was collected from a transient in error? If a tax was collected in error, it should be returned to the transient who was improperly charged. If the hotel, motel, boarding house, travel campground, or other facility cannot return the improperly collected tax to the rightful payer, the law requires that it must be remitted to the county with other TOT collections and not retained by the operators of lodging establishments as additional income. Property Tax Exemption for Nonprofit Organizations Is the property owned by a nonprofit organization automatically exempt from local property taxes? Non-profit organizations are not automatically exempt from local property taxes in Virginia. Organizations that wish to be exempt from local real or personal property taxes or both must submit a one-time application to the Office of the County Administrator by the April 1 filing deadline. The exemption, if granted, would be effective on January 1 of the following year. Note: The Board of Supervisors has enacted a moratorium on the granting of property tax exemptions by designation until after December 31, 2011. Information regarding the local property tax exemption application process (including a form that can either be viewed online or downloaded) can be found at www.loudoun.gov/taxexemption-forms. Online Form |