§ 26-992. Same—First and second mortgage companies.

(a)

Every person engaged in the business of operating a first and second mortgage company or mortgage banking company 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 $0.29 per $100.00 of gross receipts of such business, as provided in Section 26-871.

(b)

For the purpose of computing the license tax levied by Subsection (a) of this section, the following shall be excluded from the gross receipts of such businesses:

(1)

Repayments of loan principal and proceeds from the sale of mortgages to investors;

(2)

Interest income, other than from mortgage loans secured by property in the City;

(3)

For mortgage loans originated outside of the City, gross origination fees, gross appraisal fees, gross commitment fees and other gross receipts associated with the origination of such loans; and

(4)

Gross mortgage interest with respect to loans secured by property outside the City.

(c)

Notwithstanding Subsection (b) of this section, taxable gross receipts shall include gross fees from loan servicing activities conducted in the City and gains, net of annual losses, from the sale of mortgage loans to investors, in both cases regardless of the origin of the loan.

(Code 1993, § 27-433; Code 2004, § 98-766)

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

(Code 1993, § 27-433; Code 2004, § 98-766)

State law reference

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