58.1-3719.1 - Direct sellers; rate limitation. - Virginia Statutes

§ 58.1-3719.1. Direct sellers; rate limitation.

A. Notwithstanding any other provision of this chapter, no county, city ortown shall levy any license tax on a direct seller, as defined herein, unlessthe total sales of such seller exceed $4,000 per year. The rate of tax leviedon a direct seller whose total sales exceed $4,000 per year shall not begreater than 20 cents per $100 of retail sales or 5 cents per $100 ofwholesale sales, whichever is applicable. The situs for the local licensetaxation of such direct seller shall be the county, city or town in whichsuch person maintains his place of abode.

B. As used in this section the term "direct seller" means any person who:

1. Engages in the trade or business of selling or soliciting the sale ofconsumer products primarily in private residences and maintains no publiclocation for the conduct of such business; and

2. Receives remuneration for such activities, with substantially all of suchremuneration being directly related to sales or other sales-orientedservices, rather than to the number of hours worked; and

3. Performs such activities pursuant to a written contract between suchperson and the person for whom the activities are performed and such contractprovides that such person will not be treated as an employee with respect tosuch activities for federal tax purposes.

(Code 1950, § 58-266.11; 1984, c. 247.)