Virginia Tax Commissioner Issues Ruling on Application of BPOL Tax to Related Entities

The Virginia Tax Commissioner issued a ruling on the application of the Business, Professional and Occupational License (BPOL) tax to a parent holding company headquartered in Virginia, and its related entities, which are treated as disregarded entities for federal income tax purposes. The taxpayer requested a ruling concerning whether a subsidiary, which owns and operates a manufacturing plant and export facility located in another state, would be subject to BPOL tax in the Virginia locality in which the parent is based. The subsidiary does not have an office, employees, or other connections in Virginia. The ruling concluded that since the ...