
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 12, 1990                   TAG: 9004130576
SECTION: NEIGHBORS                    PAGE: S-13   EDITION: METRO 
SOURCE: Sarah Cox
DATELINE:                                 LENGTH: Medium

BEWARE, HOME WORKERS

Roanoke County Commissioner of Revenue envelopes will land in unsuspecting mailboxes this year. The letters on the inside will lay down the law to those small, home industries whose owners never thought they needed a license.

"Nowadays, at least one-third of business licenses are home occupations, said Marsha Compton, an employee of the commissioner's office. Crafts - just about everyone makes earrings. And baby sitters - `I just keep one child after school,' they'll say. There is no minimum of gross receipts in the ordinance of business licenses."

The only exemptions, according to Compton, who cited Title 58.1 of the Code of Virginia taxation, are insurance agents and insurance companies.

"And if it's direct sales, like Mary Kay or Avon, they're allowed to gross $4,000 before being liable for a license."

The rest, beware. If a Schedule C is filed with your tax return, the Virginia Department of Taxation will send a copy of it to your county or city of residence. These Schedule C's are then checked against existing business licenses.

"We are allowed to go back three years," said Compton, "but we usually pick them up currently and go forward."

In 1989, she said, the commissioner's office limited the Schedule C's. It checked on those declaring more than $2,000 gross income because of time restraints. Still, several hundred were caught.

"Everyone is getting [a notice] this year. We've already started," Compton said. At first, a letter is sent out. If that's ignored, a second letter arrives. Then, a bill is automatically sent. If the bill is not paid, legal action is taken." This is not a new law, said Compton, who is used to fielding the resulting protests. "Roanoke County has had this since around 1972. Of course, it was in the state of Virginia before that."

by CNB