Proposed repeal of Virginia's gross receipts tax.

• Position: Tax Executives Institute State and Local Tax Committee

On January 12, 1995, Tax Executives Institute filed the following comments with the finance committees of both houses of the Virginia legislature, supporting the proposed repeal of Virginia's business, professional, and occupational license tax, which is a form of gross receipts tax imposed at the local level. The Institute's comments, which took the form of a letter from TEI President Linda B. Burke, were prepared under the aegis of its State and Local Tax Committee, whose chair is Christopher W. Baldwin of the Gannett Co. Representatives of the Virginia Chapter and the Baltimore-Washington Chapter (whose membership encompasses Northern Virginia) participated in the development of the comments.

I am writing today in my capacity as President of Tax Executives Institute (TEI) to support the repeal of Virginia's Business, Professional, and Occupational License (BPOL) Tax. Because TEI is the principal association of corporate tax officials in North America, these comments are submitted on behalf of the tax executives of nearly 3,000 U.S. and Canadian businesses, including our 100-plus members who live and work in Virginia.

What Is TEI?

Tax Executives Institute is a volunteer, professional association of nearly 5,000 accountants, lawyers, and other professionals who are responsible for managing the tax affairs of their companies. TEI members must contend daily with business tax laws, including the BPOL tax, from both tax planning (including site location) and tax compliance perspectives. TEI represents a cross-section of the business community, and is dedicated to the development and effective implementation of sound tax policy, to promoting the uniform and equitable enforcement of the tax laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayers and the government alike.

The Institute is firmly committed to maintaining a tax system that works-both for taxpayers and tax administrators. We believe the diversity and training of our members enable us to bring a uniquely balanced and practical perspective to your attention.

The BPOL Tax

Should Be Repealed

TEI strongly recommends that the Virginia General Assembly act favorably on proposals to repeal the BPOL tax and work with the Allen Administration in crafting and enacting a repeal initiative that properly balances the legitimate needs of taxpayers, localities, and the Commonwealth. Stated simply, the Institute believes the BPOL tax in its current form...