§ 26-933. Real estate agents, brokers, developers and subdividers.

(a)

Except as provided in Code of Virginia, § 58.1-3732.2, every person engaged in the business of a real estate agent, a real estate broker, a real estate developer or a subdivider of real estate in the City and having an office or place of business in the City shall pay a license fee as set forth in Appendix A to this Code or a license tax equal to $0.58 per $100.00 of the gross receipts of the business, as provided in Section 26-871, but excluding commissions on insurance premiums. However, real estate agents whose receipts have been derived from real estate brokers shall not be subject to a business license.

(b)

The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning:

Developer means one who improves and converts a tract of land into an area suitable for residential or business uses. The developer may perform or have performed some or all of the following functions: testing, design, construction, supervision, financing, marketing, etc.

Gross receipts means all earnings, fees, commissions, etc., arising from or growing out of the conduct of the business of a real estate agent, real estate broker, real estate developer or real estate subdivider. Gross receipts shall exclude commissions on insurance premiums and noncommission revenue derived from the sale of a real estate agent's or real estate broker's real property, unless the real estate agent or real estate broker also acts as the developer or subdivider, as defined in this subsection, of such property. Gross receipts of real estate developers and subdividers of real estate shall exclude the cost of land.

Subdivider means one who converts one parcel or tract of land into three or more lots, tracts or parcels of land for the purpose, whether immediate or in the future, or transferring ownership of one or more of such lots, tracts or parcels of land or for the purpose of the erection of buildings or other structures on any one or more of such lots, tracts or parcels of land.

(Code 1993, § 27-373; Code 2004, § 98-705)

State Law reference— Limitation on tax rate on financial, real estate and professional services, Code of Virginia, § 58.1-3706.

(Code 1993, § 27-373; Code 2004, § 98-705)

State law reference

Limitation on tax rate on financial, real estate and professional services, Code of Virginia, § 58.1-3706.