23VAC10-500-140: NAICS Codes

The federal government publishes a manual of North American Industry Classification System (NAICS) codes. A locality may use the NAICS codes in the course of classifying a business for BPOL tax purposes; however, the NAICS code of a business does not control, or even create a presumption, as to the correct classification for BPOL purposes for the following reasons:

1. The NAICS codes group manufacturers and processors together, while processors are generally excluded when using the term manufacturer for BPOL tax purposes.

2. Only one NAICS code is assigned to an enterprise or establishment, while a separate BPOL license may be required for each identifiable business.

3. A classification, exemption, or deduction under state law or local ordinance may require consideration of factors not relevant to NAICS code selection.