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Ellen
Ellen, Tax Attorney
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Is a non-profit exempt under IRC Section501(c)(2) exempt from

Resolved Question:

Is a non-profit exempt under IRC Section501(c)(2) exempt from Virginia BPOL license Tax?
Submitted: 5 years ago.
Category: Tax
Expert:  Ellen replied 5 years ago.

WebLaw :

*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

WebLaw :

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WebLaw :

Receipts of 501(c) organizations, except for unrelated business income taxable under the Internal Revenue Code which exceeds $10,000, are excluded from BPOL taxation. See Code of Virginia, § 58.1-3703.C.18.

WebLaw :

Here is a link to the statute:DANGEROUS URL REMOVED?000+cod+58.1-3703

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Customer:

The organization's exempt purpose is to hold title and collect rental income, pay expenses, and distribute net income to another non-profit. The organization owns real estate and collects rental income. This is the sole activity and there is no unrelated business taxable income.

WebLaw :

The nonprofit would be exempt under the statute

Customer:

The local jurisdiction is taking the position that the the organization is subject to the BPOL tax and attempting collection.

WebLaw :

You will want to retain legal counsel as their position appears to clearly contradict the statute.Here is a link to a free legal referral site that may assist you in locating competent local counsel: www.Martindale.com

Customer:

Thank you!

WebLaw :

It has been my pleasure to work with you

Please let me know if I can assist you in the future by requesting me directly.

WebLaw :

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