AGENDA #4L

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Amendment to Privilege License Ordinance

DATE:                        September 26, 2005

 

The attached ordinance amendment would alter the rate schedule for privilege licenses under the gross receipts provision of State law as authorized by the Council.

 

BACKGROUND AND DISCUSSION

 

On September 12, 2005, the Council amended the rate schedule for privilege licenses based on gross receipts to establish the rates shown below. 

 

 

In addition to adopting the rate schedule revisions, we need to make a technical correction to Section 10-5.1 of the municipal code which discusses Schedule A businesses.  The code currently is written as “The following are types of businesses that exempted from paying town privilege licenses taxes…” and should be written as “The following are types of businesses that are exempted from paying town privilege licenses taxes….”

 

RECOMMENDATION

 

That the Council enact the attached ordinance amendment.

 

ATTACHMENT

 

  1. Memorandum of September 12, 2005 (p. 3).

AN ORDINANCE AMENDING CHAPTER 10 OF THE CODE OF ORDINANCES CONCERNING PRIVILEGE LICENSE FEES BASED ON GROSS RECEIPTS (2005-09-26/O-6)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:

 

Section 1. Section 10-5.1 of the Town Code is hereby amended to read as follows:

 

“Sec. 10-5.1. Schedule A businesses.

 

(a)  The following are types of businesses that are exempted from paying town privilege licenses taxes by the North Carolina General Statutes:”

 

Section 2. Section 10-5.4 of the Town Code is hereby amended to read as follows:

 

“Sec. 10-5.4. Schedule D businesses.

 

All businesses not specifically listed in Schedules A, B, or C of this section will fall under the miscellaneous category of Schedule D. The rate for the privilege license tax for any Schedule D business will be based on the gross receipts of the business. The privilege license tax for a particular Schedule D business is based on the following table:

 

Gross receipts

Charge Amount

$0-25,000.00

$25.00

$25,000.01—50,000.00

$50.00

$50,00.01--10075,000.00

$75.00

$75,000.01—100,000.00

$100.00

$100,000.01—5300,000.00

$10250.00

$5300,000.01—1,0500,000.00

$125500.00

$1,000,000.01-$2,000,000

$150.00

$2,000,000.01-$3,000,000

$225.00

over $3,0500,000

$30750.00

                                                                                                                     “

Section 3. This ordinance shall be effective July 1, 2005.

The Finance Department is hereby authorized to make refunds on payments made before the ordinance revisions were established.

This the 26th day of September, 2005.