58.1-3732.2 - Limitation on gross receipts. - Virginia Statutes

§ 58.1-3732.2. Limitation on gross receipts.

Gross receipts of real estate brokers for license tax purposes under Chapter37 (§ 58.1-3700 et seq.) of this title shall not include amounts received byany broker that arise from real estate sales transactions to the extent thatsuch amounts are paid to a real estate agent as a commission on any realestate sales transaction and the agent is subject to the business license taxon such receipts. The broker claiming the exclusion shall identify on itslicense application each agent to whom the excluded receipts have been paid,and the jurisdiction in the Commonwealth of Virginia to which the agent issubject to business license taxes.

In the event that a real estate agent receives the full commission from thebroker less an adjustment for the business license tax paid by the broker onsuch commissions and the agent pays a desk fee to the broker, the desk feeand other overhead costs paid by the agent to a broker shall not be includedin the broker's gross receipts. If the agent files separately, the agent mustidentify on its license application the broker to whom such excluded receiptshave been paid, and the amount of such receipts that were included in thebroker's license application.

(1994, c. 397; 2002, c. 532.)