AGENDA #11
TO: Mayor and Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposals for Adjustment of the Privilege License Tax
DATE: April 9, 2001
INTRODUCTION
The purpose of this memorandum is to present proposals for adjustment of the privilege license tax. The Manager’s revised recommendation would be for a flat rate proposal with a gross receipts option for small businesses. This proposal would base privilege license taxes (for those businesses not limited by State law) on the following calculation:
For Gross Receipts totaling: The tax would be:
$0 – 50,000 $25.00
$50,001 –100,000 $50.00
Over $100,000 $75.00
Any business that did not wish to report gross receipts could simply pay the maximum tax of $75.
The attached Ordinance would make the following changes to the current privilege license tax ordinance:
· Improve administrative procedures;
· Make minor clarifications and corrections for a few of the businesses for which privilege license taxes are established and limited by State statute (known as Schedule B)
March 28, 2001: The Council held a public forum on proposed proposals for adjustment of the privilege license tax (Attachment 1).
Comments received at the public forum are summarized in Attachment 2 along with staff comments.
Many businesses pay privilege licenses based on a tax schedule established and limited in amount by State law (known as Schedule B businesses). Aside from certain, mostly minor clarifications and corrections, these businesses would be unaffected by any proposed changes in the tax structure for privilege licenses. The remaining, non-exempt organizations doing business in the Town are classified under State law as miscellaneous businesses for which privilege license taxes are not limited by State law.
1. Several citizens raised questions about the equity of the privilege license taxes regulated by State law in comparison with privilege license taxes based on gross receipts.
Staff Comment: A number of businesses have privilege license taxes limited by State law. The Town has no control over the maximum taxable amounts under these State laws. In general, the privilege license taxes limited by State law are less than $100.
2. Several citizens expressed concern over reporting gross receipts. Specifically, they mentioned the time it would take to prepare gross receipts information and concern over the privacy of gross receipts information.
Staff Comment: Gross receipts information would come from the business’ North Carolina tax return for the business’ tax year preceding the invoicing date. Information would not need to be adjusted for revenues earned inside Chapel Hill, because all revenues earned by the business would be subject to the gross receipts calculation if the business’ headquarters were located in Chapel Hill. If it were not, the gross receipts calculation would be based on those elements of the business physically located in Chapel Hill (generally a store or stores.)
Some businesses do have revenue streams that could be taxed under the State law that specifies the specific amount of the tax and have other revenue streams that could be subject to gross receipts. An example would be a service station with a full service convenience store. The service station, auto supplies, and sundries would all be taxed under the State law that specifies the specific amount of the tax. Remaining convenience store revenues could be subject to a gross receipts tax. The Town would determine on a case-by-case basis whether a business’ revenue streams were sufficiently large and distinct to permit gross receipts reporting without imposing an undue burden on the business.
Information about the gross receipts of a business is protected by State law and may not be disclosed by the Town.
3. Several citizens expressed concern over the unequal treatment of businesses when a tax is based on gross receipts rather than net revenues.
Staff Comment: We are aware of the possible inequities inherent in a tax on gross receipts. State law does not offer the option of using net revenues as the basis for privilege license taxes.
4. Several citizens raised the concern that a gross receipts tax would deter new businesses from locating in Chapel Hill.
Staff Comment: It would be difficult to know how any business decides to locate in one area or another. Nonetheless, many of the Town’s neighboring jurisdictions already use gross receipts, for example, Carrboro, Durham, Cary and Raleigh.
5. A citizen questioned the Town’s ability to enforce privilege license taxes for businesses located outside of Chapel Hill.
Staff Comment: In general the Town would not collect privilege license taxes for businesses that are not located in Chapel Hill. There is an exception to this rule for contractors. If a contractor does business in Chapel Hill that contractor must get a privilege license. Contractor privilege license taxes are specified by State law and would not be subject to gross receipts.
Options
Based on the comments received during the public forum, the Manager has offered a number of options. Options I and II below are flat tax options. The remaining options are based on gross receipts with a maximum. Businesses may elect to pay the maximum tax under any gross receipts option if they do not wish to report gross receipts.
Option I: Retain current privilege license tax.
Retaining the current privilege license tax would require no adjustments for invoicing procedures by either businesses or staff. The advantage of this approach is that it does not require businesses to do calculations of gross receipts and offers the lowest tax alternative for businesses. A disadvantage is that it would provide less revenue than budgeted for the 2000-2001 budget and for the 2001-2002 budget. A further disadvantage is the high administrative cost in comparison with the amounts collected.
Option II: Charge a flat tax of $50.
A flat tax of $50 would be easy to administer and would not require businesses to do calculations of gross receipts. The tax is roughly in line with the charges for businesses where the specific tax is specified by State law. This proposal would not require a change in the privilege license tax receipts budget for the current year or in the preliminary budget proposal for 2001-2002. The disadvantage of a flat tax is that it is regressive; that is, smaller businesses pay more proportionally than large businesses.
Option III: Use gross receipts based on the following table:
For Gross Receipts totaling: The tax would be:
$0 – 50,000 $25.00
$50,001 –100,000 $50.00
Over $100,000 $75.00
Any business could pay the maximum $75 tax and would not be required to report on gross receipts.
This is the Manger’s revised recommended option. The primary advantage of Option III is that we believe it would bring in at least the same revenue as Option II, while allowing smaller businesses to pay a lower tax if they choose to report gross receipts. Because some smaller businesses may elect to pay the maximum tax; however, we anticipate that the option would bring in slightly more revenue than Option II. It is less regressive than Option II, offering a combination of equity for smaller businesses and clerical ease for larger businesses. This proposal would not require a change in the privilege license tax receipts budget for the current year or in the preliminary budget proposal for 2001-2002. The disadvantages of this option are that it brings in less revenue than the other gross receipts alternatives, and that it is only progressive up to gross receipts of $100,000.
Option IV: Use the gross receipts schedule used by Carrboro, but with a $1,000 maximum as follows:
For Gross Receipts totaling: The tax would be:
$0 – 100,000 $50.00
$100,001 –500,000 $100.00
$500,001– 1,000,000 $200.00
+ $50.00 per each million or portion thereof in excess of $1,000,000.to a maximum tax of $1,000
Any business could pay the maximum $1,000 tax and would not be required to report on gross receipts.
Option IV uses the same gross receipts schedule as Carrboro. It offers higher taxes than Option III for all businesses and brings in $7,000 more than Option III. Because it has more brackets, it is more progressive than the first three proposals. It has the advantage of offering businesses the same reporting requirements as currently required by Carrboro. This option would bring in more revenue than Option III. A disadvantage to businesses of this option is the businesses would pay higher taxes than in the previous proposals. In addition, more businesses would have to consider the trade-off between reporting on gross receipts and paying the maximum tax which is higher by $925 than the maximum in Option III.
Option V: Use gross receipts based on the following table:
For Gross Receipts totaling: The tax would be:
$0 – 25,000 $25.00
$25,001 –50,000 $50.00
$50,001– 100,000 $75.00
$100,001 – 500,000 $100.00
$500,001 – 1,000,000 $200.00
over $1,000,000 $200.00
+ $100.00 per each million or portion thereof in excess of $1,000,000 to a maximum tax of $1,000
Any business could pay the maximum $1,000 tax and would not be required to report on gross receipts.
Option V was originally presented to the Council on March 5, 2001. Based on the public forum on March 28, the original option has been modified to offer a maximum tax of $1,000. This option offers a lower tax than Option IV for businesses under $100,000 in gross receipts. After $100,000 in gross receipts, the tax rate increases more quickly than Option IV. Option V has more levels than Option IV and is a more progressive schedule. It is less costly for smaller businesses and more costly for larger businesses. Because the scale is more refined, it makes more distinctions between businesses based on their gross receipts. The disadvantage of this option is that, as in Option III, businesses would have to consider the trade-off between reporting on gross receipts and paying the maximum tax, which is higher by $925 than the maximum in Option III. Option V would bring in higher receipts than Option IV by approximately $30,000.
Option VI: Use gross receipts based on the following:
Taxes would be based on gross receipts at the rate of $.50/$1,000, rounded to the nearest dollar, with a $25 minimum and $1,000 maximum.
Any business could pay the maximum $1,000 tax and would not be required to report on gross receipts.
Option VI was prepared in response to the Council request on March 5, 2001, for an even more finely refined scale for using the gross receipts method of calculating the privilege license tax. This is the same scale used by a large number of North Carolina municipalities including Greensboro, Durham and Raleigh, each with its own modifications for minimum and maximum taxes. This option would bring in more revenue than Option V by $37,000. The disadvantage of this option is that more businesses would have to pay a higher tax and would need to calculate gross receipts. As in Option III, businesses would have to consider the trade-off between reporting on gross receipts and paying the maximum tax, which is higher by $925 than the maximum in Option III.
Any business that paid the maximum tax under any of the proposals would not be required to report on gross receipts.
SUMMARY OF REVENUE ESTIMATES
Gross receipts revenues were calculated based on estimated gross receipts for businesses currently paying for privilege licenses in Chapel Hill in the miscellaneous category. The City of Asheville was able to share with us gross receipts data by type of business in Asheville. We based our gross receipts estimates on Asheville’s data, modified by our best estimates of where businesses would likely vary in size from Asheville and Chapel Hill. We have consistently used conservative estimates.
At this time, we are also investigating where there appear to be businesses operating in the Town, which do not currently pay for privilege licenses.
Estimated Revenues
Under Alternative Options
|
OPTION |
Schedule B Revenue * |
Miscellaneous Business Revenue |
Total Revenue |
Flat tax to Achieve the Same Revenue |
|
I. Current Tax |
35,000 |
10,000 |
45,000 |
$10 |
|
II. $50 Flat Tax |
35,000 |
34,000 |
69,000 |
$50 |
|
III. Gross Receipts – New Schedule with $75 maximum |
35,000 |
45,000 |
80,000 |
$65 |
|
IV. Gross Receipts – Carrboro model with $1,000 maximum |
35,000 |
52,000 |
87,000 |
$75 |
|
V. Gross Receipts – Original Option with $1,000 maximum |
35,000 |
65,000 |
100,000 |
$95 |
|
VI. Gross Receipts - $1,000 increments with $1,000 maximum |
35,000 |
102,000 |
137,000 |
$150 |
* State law establishes specific limits on the amount that many businesses can be taxed. These businesses are referred to as “Schedule B businesses.”
Any changes adopted by the Council could go into effect for the 2001-2002 privilege licenses. Invoicing for those license taxes would occur in late May to early June of 2001.
The Manager’s revised recommendation is Option III, which would base privilege license taxes (for those businesses not limited by State law) on gross receipts with limited brackets and a $75 maximum. Any business that paid the $75 maximum tax would not be required to report gross receipts.
We recommend that the Council approve the attached Ordinance.
ATTACHMENTS
1. March 28, 2001, Memorandum (begin new page 1).
2. Comments and Responses from Public Forum, March 28, 2001 (p. 61).
3. Letter received from Michael Cumin on March 21, 2001 in response to the invitation for comment (p. 65).
4. Letter received from Elizabeth Lindquist Mann on March 26, 2001 in response to the invitation for comment (p. 67).
5. Letter received from Linda Mews on March 26, 2001 in response to the invitation for comment (p. 68).
6. Letter received from Deborah Deel Clayton on March 27, 2001 in response to the invitation for comment (p. 69).
7. Letter received from Daniel R. Shefte on March 27, 2001 in response to the invitation for comment (p. 71).
8. Letter received from William Reed Wood III on March 28, 2001 in response to the invitation for comment (p. 72).
9. Letter received from C. J. (Joe) Coates on March 28, 2001 in response to the invitation for comment (p. 73).
10. Letter received from Aaron Nelson on March 28, 2001 in response to the invitation for comment (p. 74).
11. Letter received from Vergie H. Arrington on April 2, 2001 in response to the invitation for comment (p. 78).
AN ORDINANCE AMENDING CHAPTER 10 OF THE TOWN CODE OF ORDINANCES INCORPORATING ADJUSTMENTS (underlined) TO PRIVILEGE LICENSE TAXES (2001-04-09/O-5)
BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:
Section I. Chapter 10, Article I, is hereby revised to read as follows:
“ARTICLE I. IN
GENERAL
__________
Sec. 10-1. Definitions.
Wherever in this chapter, the words defined or construed in this section are used, they shall, unless the context requires otherwise, be deemed to have the following meanings:
Agent. The person having the agency for the manufacturer, producer or distributor.
Business. Any business, trade, occupation, profession, avocation or calling of any kind, subject, by the provisions of this chapter to a license tax.
Engaged in the business. Engaged in the business as owner or operator.
Fiscal year. The period beginning with the first day of July and ending with the thirtieth day of June next following.
Gross Receipts. All earnings, receipts, fees, commissions, broker's charges, rentals and income whatsoever arising from or growing out of the conduct of the business, occupation or profession licensed under this chapter during the license tax year immediately preceding the license tax year for which the tax is being computed, without any deduction whatsoever, unless otherwise expressly provided.
Person. Any person, firm, partnership, company or corporation.
Quarter. Any three (3) consecutive months.
Sec. 10-2. Exemptions from chapter—Generally.
The license taxes levied by this chapter shall not apply to any business operated by any strictly religious or charitable organization when the gross income or proceeds of such business are for the exclusive benefit of such organization.
Except as herein provided or as provided by state law or in the schedule of license taxes hereinafter set forth, there shall be no exemption of any person from the payment of the license taxes levied by this chapter.
Sec. 10-3. Same--Exempted persons must secure license.
Every person engaging in any business upon which there is levied a license tax by this chapter, but which person is, by some provisions of this chapter exempt from the payment of such license tax, shall, nevertheless, secure from the town revenue collector a license to engage in such business, which license shall show upon its face that the licensee is exempt from the payment of the license tax and shall cite the section of this chapter which is the authority therefore.
Sec. 10-4. Effect of chapter on authority of council.
Nothing contained in this chapter shall be construed to prevent the mayor and council from imposing from time to time, as they may see fit, such license taxes as are not specifically herein defined, or from increasing or decreasing the amount of any special license tax, or from prohibiting or regulating the business or acts licensed, and all licenses are granted subject to the provisions of existing ordinances and those hereafter enacted.
The adoption of the schedule of license taxes shall not limit the power of the mayor and council to increase or decrease any of such license taxes, to levy a license tax upon any business not included therein, nor to make any other change with respect to such license taxes.
Sec. 10-5. License tax levied.
In addition to the tax on property, as otherwise provided for, and under the power and authority conferred in the laws of North Carolina, there shall be levied and collected annually, or oftener, where provided for, a privilegelicensetax on trades, professions, agencies, business operations, exhibitions, circuses and all subjects authorized to be licensed. Such tax applies to all businesses performing significant business activity within the town, including businesses that have an office outside the town but whose agents enter the town for business activity. Such tax shall be levied by ordinance adopted by the town council from year to year, and nothing in this Code or the ordinance adopting this Code shall be deemed to affect the validity of any such ordinance, and all such ordinances are hereby recognized as continuing in force to the same extent as if set out at length herein.
Sec. 10-5.1. Schedule A Businesses – businesses exempt from paying privilege license taxes
The following are types of businesses that exempted from paying Town privilege license taxes by the North Carolina General Statutes:
Alcoholic Beverage Businesses: Malt beverage, brewery; Unfortified wines, winery; Fortified wines, winery
Amusements - Motion pictures: manufacture, sale, lease, furnishing, and distribution
Dealers in Various Types of Merchandise: Automatic machines; Burglar alarms, dealers; Household appliances dealers (those involved in the sale of refrigerators, washing machines, and vacuum cleaners); Office equipment dealers (those involved in the sale of cash registers, typewriters, adding or bookkeeping machines, billing machines, check protectors, addressograph machines, duplicating machines, card punching, assorting, and tabulating machines)
Occupations and Professions Subject to Licensing Boards: Accountants; Architects; Attorneys; Auctioneers; Chiropodists; Chiropractors; Dentists; Embalmers; Engineers, professional; Healers, professional (this includes all licenses, doctors, nurses, physical therapists, licensed massage therapists, and all other LICENSED health professionals); Land surveyors; Landscape architects; Massage therapists; Morticians; Ophthalmologists; Opticians; Optometrists; Osteopaths; Pest control applicators; Photographers; Physicians; Private detectives; Real estate agents; Real estate appraisers; Surgeons; Veterinarians
Utilities: Bus companies; Telephone companies; Trucking companies licensed by the state
Other Businesses and Occupations: Banks; Bondsmen; Cooperative-marketing associations Corporations (domestic and foreign, that are separate legal entities from the companies that they run); Insurance companies; Motor fuel, wholesale sale or distribution; Productions credit associations; Savings and loan associations; Soft drinks (manufacture, production, bottling, and/or distribution); Vending machines, including weighing machines
The following are additional types of businesses that are exempt from paying Town of Chapel Hill privilege license taxes:
Camps (residential and/or day) of a religious, educational, civic, or athletic nature – any business operating a youth residential and/or day camp of a religious, educational, civic, or athletic nature is exempt from paying Town of Chapel Hill privilege license taxes for this aspect of the business;
Day Care Centers – any business or non-profit agency administering or managing a day care, nursery, after-school care, or kindergarten is exempt from paying Town of Chapel Hill privilege license taxes for this aspect of the business.
Companies involved in multiple types of businesses must pay a privilege license for each type of business the company conducts. A company may be exempt for one aspect of their business but have to pay the tax for another aspect of their business.
Sec. 10-5.2. Schedule B Businesses – privilege license tax limits mandated by the state
Schedule B Businesses are businesses for which the taxes towns can collect from privilege licenses are limited by the State of North Carolina. These businesses include: ABC off-site beer Sales, ABC off-site wine sales, ABC on-site beer Sales, ABC on-site wine sales, automobile dealers, barber shops, beauty salons, bicycle dealers, bowling alleys, campgrounds, chain stores, check-cashing businesses, circus/ animal shows, collection agencies, contractors, dances, dry cleaners, electricians, electronic sales, elevator/ sprinkler installers, emigrant agents, employment agents, entertainments, firearms dealers, flea market operators, flea market vendors, funeral homes, heating contractors, hotels, ice cream manufacturers, ice cream retailers, itinerant merchants, laundries/ laundromats, loan agencies, motorcycle dealers, movie rentals/sales, movie theaters, music machines, outdoor advertising, outdoor theaters, pawnbrokers, peddlers, piano sales, pinball machines, plumbers, pool tables, restaurants, service stations, specialty markets, sundries, telegraph companies, tobacco warehouses, trailer parks, undertakers, video games, weapons dealers, and wholesale auto supply stores.
Descriptions of these businesses and the tax schedule for these Schedule B businesses are included in Sec. 10-30 – Sec. 10-33 of this code.
Sec. 10-5.3. Schedule C Businesses – non-schedule B businesses that are charged a flat rate determined by Council
Schedule C Businesses are those businesses that are not limited by the State’s Schedule B, and are not charged privilege license taxes based on gross receipts (Schedule D). Instead, these businesses are charged a flat tax determined by Council.
a. Escort Services - $500.00
b. Fortune Tellers - $500.00
c. Mechanical Contractors/ repairmen - $50.00
d. Taxicabs - $25.00 per vehicle
Descriptions of these businesses and the tax schedule for these Schedule C businesses are included with the descriptions and tax schedule for Schedule B businesses in Sec. 10-30 – Sec. 10-33 of this code.
Sec. 10-5.4. Schedule D Businesses – all non-schedule A, B, or C businesses are included in schedule D and pay privilege license taxes based on their gross receipts
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 Tax
$0 – 50,000 $25.00
$50,001 – 100,000 $50.00
over $100,000 $75.00
Sec. 10-5.5. Computation of tax based on gross receipts.
Whenever this article levies a privilege license tax computed on the basis of gross receipts, gross receipts means the amount reported as gross receipts on a business' state income tax return or on the federal income tax return filed with the state income tax return if the state return does not separately state gross receipts for the most recently completed tax year. It shall be the duty of a person applying for the license to render to the revenue collector or his designee a sworn statement of such gross receipts during the preceding year.
If a business has not been in operation long enough for the information required in subsection (a) of this section to be available, the revenue collector shall estimate gross receipts for the business on the basis of gross receipts of comparable businesses or any other information the revenue collector considers useful. On or before July 31 immediately after the license year, each licensee who paid the tax for the past license year based on estimated gross receipts shall submit to the revenue collector a sworn final report showing the amount of gross receipts for the license year.
If the amount shown is more than the estimated gross receipts, the licensee shall pay the amount of the additional tax that would have been due had the estimate been accurate. If the payment shown is less than the estimated gross receipts, the town shall refund to the licensee the difference between the actual tax paid and the amount of tax that would have been due had the estimate been accurate.
If a business conducts multiple business activities, with some falling under Schedule B or C (both with flat taxes) and others falling under Schedule D (gross receipts), the business may either:
Purchase several licenses based on the various methods outlined; or
Purchase one privilege license based on the total gross receipts of all business activities.
It will be the decision of the business to choose the second option, the first option being the default. The licensee, however, may be subject to additional license taxes that the state authorizes the town to levy, depending on the licensee's business, and for which a separate license must be purchased.
All affidavits or other proof of gross receipts furnished to the revenue collector or his designee pursuant to subsection (b) of this section shall remain privileged and confidential and shall not be disclosed.
Sec. 10-6. License prerequisite to conduct of business.
It shall be unlawful for any person or his agent or servant to engage in or carry on a business in the town for which there is required a license, without first having paid the license tax and obtained the license. For the purpose of this section, the opening of a place of business, or offering to sell, followed by a single sale or the doing of any act or thing in furtherance of the business shall be construed to be engaging in or carrying on such business.
Sec. 10-7. Separate license required for each business.
The payment of any particular tax imposed by this chapter shall not relieve the person paying the same from the payment of any other tax imposed by this chapter for any other business he may carry on, unless so provided by the section imposing such tax, it being the intent of this chapter that license taxes prescribed by various sections or subsections of this chapter applicable to any business shall be cumulative except where otherwise specifically provided.
Sec. 10-8. License required for every place of business.
A license issued for the privilege of conducting a business is only valid for the business conducted at the place and by the licensee named therein. Every person doing business in more than one factory, mill, warehouse, store, stall or stand, or other place of business, shall secure a separate license for each such place of business, unless such places of business are contiguous to each other, communicate directly with and open into each other, and are operated as a unit. If the business is moved or if the licensee sells to another, then a new license is necessary, unless a special permit to continue business under the original license is obtained from the town council.
Sec. 10-9. License application.
Every application for a license required by this chapter shall be made in writing to the town revenue collector upon a form or forms to be provided by the revenue collector. Such application shall be signed either by the applicant or by his agent.
Sec. 10-10. Information required of license applicant.
Every applicant for a license required by this chapter shall furnish to the town revenue collector the following information:
Complete and exact name under which the business is proposed to be operated, the business address, and business phone number.
If the business is proposed to be operated by an individual under any
assumed name, the name of such individual, and his home address, and
home phone number.
If the business is a partnership, the name, and home
address, and home phone number of each partner.
If the business is a corporation, the name and home
address, and home phone number of the president and of the secretary of
the corporation, and the location of the principal office.
Nature of the business for which license is desired.
Proposed location.
And, in addition to the foregoing, the applicant shall furnish to the town revenue collector such other information as may be required by the town revenue collector in order to enable him to determine the proper classification of the applicant and the appropriate license tax.
Sec. 10-11. Compliance with conditions precedent required for license issuance.
The town revenue collector shall not issue any license when the application therefore is disapproved by the town council or by any town official in any case where the approval of the council or official is required precedent to the issuance such license; nor shall the town revenue collector issue any license until the applicant therefore has performed or complied with any and every condition precedent prescribed by any provision or provisions of this chapter, including the execution and delivery of any bond required.
Sec. 10-12. License term, expiration; proration of tax.
All taxes provided for in this chapter shall be for twelve (12) months, unless otherwise specified, and shall so remain for each year hereafter until changed by the town council. All the licenses provided for shall date from the 1st day of July of each and every year and shall expire on the 30th day of June of each year; provided, that where the license is issued after January 1st, then the licensee shall be required to pay one-half (1/2) the tax prescribed, except where otherwise specifically provided for.
Sec. 10-12.1. Business within an annexed area.
In the event the Town limits shall be extended to include any business, trade or profession that was outside the Town limits on July 1 of any license tax year, such business, trade or profession shall become liable for the payment of privilege license taxes upon the date of its annexation into the corporate limits. All the licenses provided for shall date from the 1st day of July of each and every year and shall expire on the 30th day of June of each year; provided, that where the license is issued after January 1st, then the licensee shall be required to pay one-half (1/2) the tax prescribed, except where otherwise specifically provided for.
Sec. 10-13. Display of license.
Every license must be kept prominently displayed at the place of business of the licensee named in the license, or, if the licensee has no fixed place of business, such licensee must keep the same wherever such business is being operated and where it can be inspected at any time by the proper official.
Every vehicle required to be licensed shall display on such vehicle the license tag issued by the town.
Sec. 10-14. Transferability of license.
All licenses granted under this chapter shall be a personal privilege and shall not be transferable.
Sec. 10-15. Abatement of tax.
No license tax shall be abated nor shall any refund of any part thereof be made, in any case where the licensee discontinues his business before the end of the period for which such license was issued.
Sec. 10-16. Replacement of lost or destroyed license or license tag.
Upon satisfactory evidence that any licensee has lost any license or license tag issued to him, or that the same has been destroyed, the town revenue collector may issue to him a duplicate thereof upon payment of a tax of one dollar ($1.00).
Sec. 10-17. New license required when business is changed so as to subject it to payment of additional license tax.
Where the amount of license tax is determined by certain factors existent at the time such license tax is due, or issued, and, after the issuance of such license, the licensee proposes to change such factors so that his business will be subject, under the provisions of this chapter, to a greater license tax, he shall, before making such change, deliver his license to the town revenue collector together with a written and signed statement as to the nature of such proposed change, and shall pay to the town revenue collector the proper additional license tax. The town revenue collector shall thereupon cancel the old license and shall issue to the licensee a new and appropriate license.
Sec. 10-18. Revocation of licenses by council.
Any license issued by the revenue collector may be revoked by the town council upon the finding by the council that the licensee has willfully or persistently violated any ordinance of the town, or any laws of the state, or that such licensee is conducting his business in a fraudulent or unlawful manner or is abusing his license. If it shall be made to appear to the town council that any business licensed with the approval of the council, as hereinbefore provided, has become, because of its location, the character of its management, or the nature or method of operation, or for any such reason, is about to become dangerous to the morals, health or general welfare of the town, or a nuisance of any kind, the town council shall cause a written notice to be served upon the proprietor, manager, or any person who may be in charge of the operation of such business, that a public hearing will be held by the council to determine whether or not the license issued therefore shall be revoked, and such notice shall state the time and place fixed for such hearing. At the time and place so fixed or at such subsequent time as may be then fixed by the council shall proceed to hear the charges made against the licensee and his defense against the same and if the council shall find that such business has become or is about to become dangerous to the morals, health, or general welfare of the town, or a nuisance of any kind, it shall forthwith revoke the license therefore.
Sec. 10-18.1. Special provisions relating to licenses for establishments holding ABC permits.
Authority to deny ABC permit. Pursuant to N.C.G.S. Sec. 105-113.71, the town council may refuse to issue an annual local license, or renewal thereof, for the operation of an establishment required to receive an alcohol beverage privilege license from the town if the council finds that the applicant committed any act or permitted any activity in the preceding year that would be grounds for suspension or revocation of the applicant's permit under the provisions of North Carolina General Statute 18B-104.
Applications to be considered by town manager. Initial applications for a town-issued alcohol beverage privilege license shall be submitted to the town revenue collector for evaluation by the town manager and the manager's designee(s). Specifically, but without limitation, the revenue collector shall refer all such applications and all annual license renewals to the police, fire, and inspections departments.
If none of the three (3) departments recommends the license be denied and no other information is received by town manager indicating grounds for the manager to consider denial, the revenue collector shall issue the license upon payment of the annual license tax.
If any one (1) of the three departments recommends that denial of said application be considered, the matter shall be referred to the town manager, who shall review the recommendations of the three (3) departments and any other relevant information received by the manager.
If the manager determines that there is not sufficient reason to consider denial or non-renewal of an application, he shall issue his determination and direct that the license be issued.
If the manager determines that there is sufficient reason to consider denial or non-renewal of an application on grounds provided for in paragraph (a) above, the manager shall refer the application to the town council for its consideration at the next regular meeting of the council.
Consideration by town council. Upon receiving a recommendation from the town manager that an application for an alcohol beverage privilege license or renewal be denied, before considering whether to deny the license, the council shall give the applicant an opportunity to appear at a hearing before the council and to offer evidence. Any hearing held under the provisions of this section shall be upon at least ten (10) days' notice to the applicant. All persons who present evidence at such a hearing shall be sworn and parties shall have the right to cross-examine witnesses.
Process following council hearing. At the conclusion of the hearing the council shall make written findings of fact based on the evidence presented at the hearing. If the council finds that the application should be issued, it shall direct the manager to issue the requested license. If the council finds that the license should be denied, it shall enter its decision.
Appeal to superior court. The applicant may appeal the denial of a license to the Orange County Superior Court, by an action in the nature of certiorari, if notice of appeal is given within ten (10) days of the denial.
Manager to establish administrative policies. The town manager shall establish any administrative policies and application forms necessary to implement this section.
Sec. 10-19. Procedure on license revocation; refund.
Whenever any license is revoked by the town council under the
provisions of sections 10-18 or 10-18.1, the town finance director revenue
collector shall, upon application of the person whose license has been
revoked, and without further authority from the council, refund to such person
the pro rata part of the license tax paid by such person, the amount thereof to
be determined, however, on the basis of the number of complete quarters of the
fiscal year remaining.
Sec. 10-20. Payment of additional tax where license tax increased.
In any case where any license tax is increased, any licensee affected by such increase shall, within thirty (30) days after such increase becomes effective, deliver to the town revenue collector his license together with the additional tax required, whereupon the town revenue collector shall issue a new and appropriate license to such licensee. Upon the failure of such licensee to pay such additional license tax within said thirty (30) day period, the town revenue collector shall immediately, and without further authority from the council, revoke the license of theretofore issued to such licensee, and shall immediately mail to the licensee written notice of such revocation.
Sec. 10-21. Operating without a franchise or license unlawful.
Operating without a license. Operating a business without a valid, current license required under this chapter, or operating a business after a license issued under this chapter has been revoked is unlawful.
Late payment. Each license tax provided for by this chapter, shall be increased five (5) per cent for each month or fraction thereof during which such license tax remains unpaid after it becomes due and payable.
Sec. 10-22. Enforcement.
The provisions of this article may be enforced by injunctive remedy
and/or the imposition of a civil penalty of fifty dollars ($50.00) as provided
by law. Violation of this article shall constitute a misdemeanor. Each day or
operation in violation of this article shall constitute a separate civil and/or
criminal offense.
Sec. 10-23. Slaughterhouses prohibited; killing beef, sheep, etc., for sale in town prohibited.
No person shall keep or establish a butcher pen or slaughterhouse within the corporate limits of the town or shall kill or have killed therein, for sale within the corporate limits any beef, sheep, goats, hogs or other such animals.
Sec. 10-24. Shooting galleries prohibited.
No shooting galleries shall be allowed in the town.
Sec. 10-25. Operation of certain enterprises prohibited without obtaining a franchise; continuance in operation after expiration of franchise.
From and after the effective date of this section [December 18, 1972], no person shall operate an enterprise as designated by General Statutes, Section 160A-311, or operate a telephone system within the town without first obtaining a franchise from the town, nor shall any person continue to operate such enterprise after the expiration of such franchise, except as provided by law.
Secs. 10-26--10-34. 10-29 Reserved.”
Section II. Chapter 10 is hereby revised by adding a new Article 1A to read as follows:
“ARTICLE IA
LICENSES FOR SPECIFIC BUSINESSES
__________
Sec. 10-1A.01. Alcoholic beverages—Retail.
Every person engaged in the business of selling at retail within the corporate limits of the town malt beverages, including beer, as defined in North Carolina General Statutes Section 105-113.68 shall pay a license tax of:
On-premises, per annum . . . $ 15.00
Off-premises, per annum . . . 5.00
Every person engaged in the business of selling at retail within the corporate limits of the town unfortified wine, as defined in North Carolina General Statutes Section 105-113.68 shall pay a license tax of:
On-premises, per annum . . . $ 15.00
Off-premises, per annum . . . 10.00
The privilege license tax for retailers of fortified wines shall be the same as for retailers of unfortified wines; retailers of both unfortified and fortified wine shall pay only the license tax rate applicable to unfortified wine.
(d) The rate of license tax levied under this section shall be for the first license issued to one (1) person; for each additional license issued to one (1) person an additional tax of ten (10) percent of the base tax shall be levied, such increase to apply progressively for each additional license issued to one (1) person.
Sec. 10-1A.02. Same--Wholesalers.
Every person engaged in the business of dealing in or selling at wholesale beer, lager beer, ale, porter, and other brewed or fermented beverages, unfortified wines or fortified wines, with a place of business located within the corporate limits of the town, shall pay the following tax:
Beer, lager beer, ale, porter, per annum . . . $ 37.50
Fortified wines, unfortified wines, per annum . . . 37.50
License to sell at wholesale all of the above-mentioned beverages or any of them, per annum . . . 62.50
Sec. 10-1A.03. Amusements not otherwise taxed.
Every person engaged in the business of giving, offering, or managing any form of entertainment or amusement not otherwise taxed or specifically exempted, for which an admission is charged, shall pay an annual license tax for each room, hall, tent or other place where such admission charges are made of twenty-five dollars ($25.00). Every person offering or managing any dance or athletic contest of any kind, except high school and elementary school athletic contests, for which an admission tax in excess of fifty cents ($0.50) is charged, shall pay an annual license tax of two dollars and fifty cents ($2.50) for each location where such charges are made.
All exhibitions, performances, and entertainments, except as in this Code expressly mentioned as not exempt, produced by local talent exclusively, and for the benefit of religious, charitable, benevolent, or educational purposes, and where no compensation is paid to such local talents shall be exempt from a license tax.
Sec. 10-1A.04. Same--Bagatelle tables, merry-go-rounds, etc.
Every person engaged in the operation of a bagatelle table, merry-go-round or other riding device, hobby horse, switch-back railway, shooting gallery, swimming pool, skating rink, other amusements of a like kind, or a place for other games or play with or without name (unless used solely and exclusively for private amusement or exercise), at a permanent location shall pay for each subject enumerated an annual license tax of twenty-five dollars ($25.00).
Subsection (a) does not apply to bowling alleys and music machines.
Sec. 10-1A.05. Same--Billiard and pool tables.
Every person who shall rent, maintain, or own a building wherein there is a table or tables at which billiards or pool is played, whether operated by a slot or otherwise, shall pay an annual license tax for each location of twenty-five dollars ($25.00).
Subsection (a) does not apply to fraternal organizations having a national charter, American Legion posts, or posts or other local organizations of other veterans' organizations chartered by Congress or organized and operating on a statewide or nation-wide basis, Young Men's Christian Associations, and Young Women's Christian Associations.
Sec. 10-1A.06. Same--Bowling alleys.
Every person who shall rent, maintain, or own a building wherein, or any premises on which, there is a bowling alley or alleys of like kind shall pay an annual license tax for each alley kept or operated of ten dollars ($10.00).
Subsection (a) does not apply to fraternal organizations having a national charter, American Legion posts, Young Men's Christian Associations, and Young Women's Christian Associations.
Sec. 10.1A.07. Same--Carnival companies, etc.
Every person engaged in the business of a carnival company or a show of like kind, moving picture and vaudeville shows, museums, and menageries, merry-go-rounds, Ferris wheels, riding devices, and other like amusements, and enterprises, conducted for profit, under the same general management, or an aggregate of shows, amusements, eating places, riding devices, or any of them operating together on the same lot or contiguous lots or streets, traveling from place to place, whether owned and operated by separate persons or not, filling week-stand engagements, or giving week-stand exhibitions, under canvas or not, shall pay for each week or part of a week, a license tax of one hundred fifty dollars ($150.00); provided:
When a person, firm or corporation exhibits only riding devices, or riding devices along with two (2) or less concession stands which are not a part of, nor used in connection with any carnival company, the tax shall be five dollars ($5.00) per week for each such riding device or concession stand.
Except for the operation of two (2) or less concession stands as authorized above, it shall be unlawful under this section for the owners or operators of riding devices to operate or cause to be operated, any show, game, stand or other attraction whatsoever.
No person, firm, or corporation, nor any aggregation of same, giving such shows, exhibitions or performances, shall be relieved from the payment of the tax levied in subsection (a), regardless of whether or not the state or any subdivision thereof derives a benefit from the same. No carnival operating or giving performances or exhibitions in connection with any fair shall be relieved from the payment of the tax levied in subsection (a). It is the intent and purpose of this section that every person who is engaged in the giving of such shows, exhibitions, performances, or amusements, whether the whole or a part of the proceeds are for charitable, benevolent, educational, or other purposes whatsoever, shall pay the license taxes provided for in subsection (a).
Sec. 10-1A.08. Same--Circuses, menageries, wild west, dog and/or pony shows, etc.
Every person engaged in the business of exhibiting performances, such as a circus, menagerie, wild west show, dog or pony show, or any other show, exhibition or performance similar thereto, not taxed in other sections of this chapter, shall pay for each day or part of a day a license tax of twenty-five dollars ($25.00).
The provisions of this section, or any other section of this Code, shall not be construed to allow without the payment of the tax imposed in this section, any exhibition or performance described in this section, for charitable, benevolent, educational, or any other purpose whatsoever, by any person who is engaged in giving such exhibitions or performances, no matter what terms of contract may be entered into or under what auspices such exhibitions or performances are given. It is the intent and purpose of this section that every person who is engaged in the business of giving such exhibitions or performances, whether a part or all of the proceeds are for charitable, benevolent, educational, or other purposes or not, shall pay the license tax imposed in this section.
In lieu of the tax levied in section 13-102 of this Code, each circus, or other form of amusement taxed under this section, advertising by means of outdoor advertising shall pay a tax of fifty dollars ($50.00) for the privilege of advertising in this manner. This tax is in addition to the other taxes levied in this section.
Sec. 10-1A.09. Same--Electronic video games.
Every person engaged in the business of owning or operating machines that play electronic video games where a coin or other thing of value is deposited in the machine shall pay an annual license tax for each machine of five dollars ($5.00).
The applicant for license under this section shall, in making application for license, specify the serial number of the video machine or machines proposed to be operated. The license shall not, under any condition, be transferable to any other video machine. The revenue collector may seize any machine not licensed in accordance with this section and may hold the machine until it is duly licensed.
Sec. 10-1A.10. Same--Moving picture shows.
Every person engaged in the business of operating a moving picture show shall pay an annual license tax of two hundred dollars ($200.00) per screening room. Such businesses that operate three (3) days or less per week shall pay an annual license tax of one hundred dollars ($100.00) per screening room.
Sec. 10-1A.11. Same--Outdoor theaters.
Every person engaged in the business of operating an outdoor or drive-in moving picture show or places where vaudeville exhibitions or performances are given for compensation shall pay an annual license tax of one hundred dollars ($100.00).
Sec. 10-1A.12. Same--Selling, leasing or furnishing videos.
Every person engaged in the business of selling, leasing, furnishing or distributing movies, including videos, for use in places where no admission fee is charged shall pay an annual license tax of twenty-five dollars ($25.00) for each location.
Sec. 10-1A.13. Automobile dealers.
Every person engaged in the business of retail selling of motor vehicles, trailers, semi trailers shall pay a license tax of twenty-five dollars ($25.00) per annum for each location where such business is carried on.
If any business taxed under this section is of a seasonal, temporary, transient, or itinerant nature, it must pay a license tax of three hundred dollars on each location.
Sec. 10-1A.14. Automobile supply and service stations.
Every person engaged in the business of servicing, storing, painting, repairing, welding, or upholstering of motor vehicles, trailers, semi trailers, or engaged in the business of retail selling or delivering of any tires, tools, batteries, electrical equipment, automotive accessories, including radios designed for exclusive use in automobiles, or supplies, motor fuels or lubricants, or any such commodities, shall pay a license tax of twelve dollars and fifty cents ($12.50) per annum for each location where such business is carried on.
Every person engaged in the business of buying, selling, distributing, exchanging, or delivering automotive accessories, including radios designed for exclusive use in automobiles, parts, tires, tools, batteries, or other automotive equipment or supplies or any of such commodities at wholesale shall pay an annual license tax for each location where such business is carried on of thirty-seven dollars and fifty cents ($37.50). Any person engaged in the business enumerated in this section and having no located place of business, but selling to retail dealers by use of some form of vehicle, shall pay an annual license tax for each vehicle used in carrying on such business of twenty-five dollars ($25.00). For the purpose of this subsection, "wholesale" shall apply to manufacturers, jobbers and such others who sell to retail dealers, except manufacturers of batteries. No additional license tax under this subsection shall be levied upon or collected from any employee, agent, or salesman whose employer or principal has paid the tax for each location levied in this subsection.
No person, firm, or corporation paying the wholesaler's tax as levied in subsection (b) hereof shall be required to pay any additional tax under subsection (a).
Every person engaged in the business of buying, selling, distributing, servicing, storing, or exchanging motor vehicles, trailers, semi trailers, tires, tools, batteries, electrical equipment, lubricants, or automotive equipment, including radios designed for exclusive use in automobiles, and supplies shall pay an annual license tax for each location where such business is carried on of twenty-five dollars ($25.00). Persons dealing in secondhand or used motor vehicles exclusively shall be liable for the tax unless such business is of a seasonal, temporary, transient, or itinerant nature, in which event the tax shall be three hundred dollars ($300.00) for each location where such business is carried on. Any person who deals exclusively in motor fuels and lubricants and has paid the license tax levied under subsection (a) of this section shall not be subject to any license tax under subsections (b) and (c) of this section. A person, firm or corporation licensed under this subsection is not required to be licensed under subsection (a) or (b). No additional license tax under this subsection shall be levied upon or collected from any employee or salesman whose employer has paid the tax levied in this subsection; nor shall the tax apply to dealers in semi trailers weighing not more than five hundred (500) pounds and carrying not more than a one-thousand-pound load, and to be towed by passenger cars, nor to dealers in four-wheel, farm-type wagons equipped with rubber tires and designed to be pulled or towed by passenger cars or farm tractors. Premises on which cars are stored or sold when owned or operated by a licensed car dealer under the same name shall not be deemed as a separate place of business.
Sec. 10-1A.15. Barbershops, beauty shops, etc.
Every person engaged in the business of conducting a barbershop, beauty shop or parlor, or other shop of like kind shall pay an annual license tax for each barber, manicurist, cosmetologist, beautician, or operator in a beauty parlor, or other shop of like kind in any office, hotel, or other place of two dollars and fifty cents ($2.50).
Sec. 10-1A.16. Bicycle dealers.
Any person engaged in the business of buying or selling bicycles, supplies, and accessories shall pay an annual license tax of twenty-five dollars ($25.00).
Sec. 10-1A.17. Branch or chain stores.
Every person engaged in the business of operating or maintaining, under the same general management, supervision, or ownership, two (2) or more stores, or mercantile establishments where goods, wares or merchandise are sold or offered for sale, or from which such goods, wares or merchandise are sold or distributed at wholesale or retail, or controls by lease, either as lessor or lessee, or by contract, the manner in which any such store or stores are operated, or the kinds, character, or brands of merchandise which are sold therein, shall be deemed a branch or chain store operator, and shall pay an annual license tax on each and every store of fifty dollars ($50.00), except that the store in which the principal office is located shall not be taxed under this section.
The term "chain store," as used in this section, shall include stores operated under separate charters of incorporation, if there is common ownership of a majority of stock in such separately incorporated companies, or if there is similarity of name of such separately incorporated companies, or if such separately incorporated companies have the benefit in whole or in part of group purchase of merchandise, or of common management. In like manner the term "chain store" shall apply to any group of stores where a majority of interest is owned by an individual or partnership.
This section shall not apply to:
Businesses that operate a single franchise where the varieties of goods sold are controlled by contract, but the ownership of each store is separate.
Retail stores of nonprofit organizations engaged exclusively in the sale of merchandise processed by handicapped persons employed.
Manufacturers, retail or wholesale dealers solely by reason of sale of fertilizers, farm chemicals, soil preparents or seeds.
Retail outlets owned and operated by wholesale bakeries at a location separate and apart from the wholesale bakery under the same ownership, management and control of the wholesale bakery and used solely as outlets for the disposition at retail surplus or broken products of the wholesale bakery operating same and which do not deal in any other products and where the operation of such stores is only incidental to the operation of the wholesale bakery, such stores being commonly known as bakery thrift stores.
Retail or wholesale dealers in motor vehicles and automotive equipment and supply dealers at wholesale who are not liable for tax hereunder on account of the sale of other merchandise.
Sec. 10-1A.18. Campgrounds, Trailer Courts, Tent Camping, etc.
Every person engaged in the business of operating a campground, trailer park, tent camping area, or similar place for profit, advertising in any manner for transient patronage, or soliciting such business, regardless of whether the rental to patrons is on a daily, weekly, biweekly, or monthly basis, shall pay an annual license tax of twelve dollars and fifty cents ($12.50) for each location.
Sec. 10-1A.19. Check cashing business
Every person engaged in the business cashing checks, drafts, or money orders for a fee shall pay an annual tax of one hundred dollars ($100.00) for each location. Banks, savings institutions, credit unions, farm credit systems, and businesses principally engaged in the retail sale of goods or services are exempt from the taxes levied in this section.
Sec. 10-1A.20. Collection agencies.
Every person engaged in the business of collecting, for a profit, claims, accounts, bills, notes, or other money obligations for others, and of rendering an account for same, shall be deemed a collection agency, and shall pay an annual license tax of one hundred dollars ($100.00).
Subsection (a) does not apply to a regularly licensed practicing attorney at law.
Sec. 10-1A.21. Contractors and construction companies—Generally.
Every person who has obtained a current state contractor's license under section 105-54 of the North Carolina General Statutes and who for a fixed price, commission, fee, or wage, offers or bids to construct within the town any building, highway, street, sidewalk, bridge, culvert, sewer or water system, reservoir or dam, hydraulic or power plant, transmission line, tower, dock, wharf, excavation, grading, or other improvement or structure, or any part thereof, shall pay an annual license tax of ten dollars ($10.00).
No employee or subcontractor of any person, who has paid the tax provided for in subsection (a), shall be required to pay the license tax provided for in subsection (a) while so employed by such person.
This section shall not apply to plumbers, heating contractors or electricians.
Sec. 10-1A.22. Same--Plumbers, heating contractors, and electricians.
Every person engaged in the business of a plumber, installing plumbing fixtures, piping or equipment, steam or gas fitter, or installing hot-air heating system, or installing electrical equipment, or offering to perform such services, shall pay an annual license tax of fifty dollars ($50.00). Any person engaged exclusively in the businesses enumerated in and licensed under this section shall not be liable for the tax on contractors, construction companies, installers of elevators and automatic sprinkler systems, and persons repairing elevators and automatic sprinkler systems.
With respect to electricians and electrical contractors, a license procured under this section shall cover the installation of electrical equipment, fixtures and wiring in or upon the consumer's premises, or on the "customer's side" of the point of delivery of electric service, but shall not cover the installation of or service to transmission or distribution lines or work in the "distributor's side" of the point of delivery of electric service. With respect to plumbers and plumbing contractors, a license procured under this section shall cover plumbing work and plumbing installation in buildings and upon the premises upon which the buildings are situated and up to the connection with the sewer or water mains, but shall not cover the construction of or work upon water or sewer systems or mains.
Sec. 10-1A.23. Same--Installing elevators and automatic sprinkler systems.
Every person engaged in the business of selling or installing elevators or automatic sprinkler systems shall pay an annual license tax of one hundred dollars ($100.00). No person who does not maintain an established place of business in the town shall be liable for the tax levied under this section, nor shall the tax apply to plumbers, heating contractors, and electricians.
Sec. 10-1A.24. Same – Mechanical contractors, repairmen
Every person engaged in the business of repairing and/ or servicing mechanical equipment (excluding any businesses specifically listed in this other parts of this section) shall pay an annual license tax of fifty dollars ($50.00).
Sec. 10-1A.25. Same--Miscellaneous.
Every person engaged in the business of construction or engaged in the business as a building contractor, (who is not licensed by the state as a building contractor) tree service contractor, sign contractor, painting and wallpaper contractor, awning installer, sheet metal contractor, tinning contractor, roofing contractor, ventilation contractor, wrecking or house moving contractor, or insulation contractor shall pay an annual license tax of fifty dollars ($50.00).
Sec. 10-1A.26. Dry Cleaners, pressing clubs, and hat blockers.
Every person engaging in the business of operating a dry cleaning, pressing or hat blocking business shall, for each place of business, pay an annual license tax of fifty dollars ($50.00).
If a place of business solicits outside the county where the place of business is located, the license tax shall be one hundred dollars ($100.00).
Every person engaged in the business of soliciting dry cleaning or pressing work to be done by a place of business that is not liable for a state license tax shall pay a tax of one hundred dollars ($100.00). The holder of a soliciting license shall carry the license in the cab of any vehicle used in soliciting in this town.
Definitions.
Dry cleaning, pressing or hat blocking business. A place of business where the service of dry cleaning, wet cleaning incidental to dry cleaning, spotting, pressing, finishing, or reblocking hats, garments, or wearing apparel of any kind is performed or accepted to be performed but where the actual dry cleaning or pressing is not performed on the premises.
Place of business. A fixed place at which a business is maintained.
Soliciting. Accepting an article or a garment to be dry cleaned or pressed by taking physical possession of the article or garment.
This section does not apply to any bona fide student of any college or university in this town operating a pressing or dry cleaning business at the college or university during the school term of the college or university.
Sec. 10-1A.27. Emigrant and employment agents.
Every person, either as agent or principal, engaged in the business of soliciting, hiring, or contracting with laborers, male or female, for employment out of the state shall pay an annual license tax of one hundred dollars ($100.00).
Every person who engages in the business of securing employment for a person or persons and charging therefore a fee, commission, or other compensation, shall pay an annual license tax of one hundred dollars ($100.00).
This section shall not apply to any employment agency operated by the federal government, the state, any county or municipality, or whose sole business is procuring employees for work in the production and harvesting of farm crops within the state. Under this section the tax on any employment agency whose sole business is the placement of teachers or other school employees and which has been approved by the state superintendent of public instruction shall be fifty dollars ($50.00). The tax on employment agencies where the sole business is the placement of domestic servants or unregistered nurses for employment within the state shall be fifty dollars ($50.00).
Sec. 10-1A.28. Escort Service
Every person engaged in the legitimate of providing companionship to individuals for a fee shall pay an annual tax of five hundred dollars ($500.00) for each location.
Sec. 10-1A.29. Exhibition shows.
Every person using a location for the purposes of promoting the display or sale of merchandise, wares or other tangible items in connection with an exhibition show shall pay for each such exhibition show a license fee per week or fraction thereof of two hundred dollars ($200.00).
However, when an exhibition of arts, crafts or other items of merchandise is totally sponsored by a nonprofit organization conducting the exhibition show for charitable, cultural, religious or civic purposes, and no person or corporation outside of the organization is hired or engaged to promote such exhibition for a fee or percentage, and there is no buying, selling, trading or taking of orders for future delivery, the organization shall pay a license tax of ten dollars ($10.00) per week or fraction thereof. However, when an exhibition of arts, crafts or other items of merchandise is totally sponsored by a nonprofit organization conducting the exhibition show for charitable, cultural, religious or civic purposes, and no person or corporation outside of the organization is hired or engaged to promote such exhibition for a fee or percentage, and there is any buying, selling, trading or taking of orders for future delivery, the organization shall pay a license tax of fifty dollars ($50.00) per week or fraction thereof.
Where a group of exhibitors place merchandise in the same location under one (1) general management or promoter, the total tax prescribed by this section shall be due from the manager or promoter and each such exhibitor shall be exempt from this or any other privilege license tax. Any other exemptions provided for by this article shall not apply to the license required by this section.
In this section "exhibition show" means an exhibition or show where merchandise, wares or other tangible items are displayed for show and/or sale either out-of-doors or in a building occupied in whole or part for a period not to exceed one (1) week.
Sec. 10-1A.30. Fortune Tellers
Every person engaging in the business of telling or pretending to tell fortunes, practice the art of palmistry, clairvoyance, and other crafts of a similar nature for a reward shall pay an annual tax of five hundred dollars ($500.00) for each location.
Sec. 10-1A.31. Hotels, motels, boardinghouses, roominghouses, tourist homes and tourist courts.
Every person engaged in the business of operating any hotel, motel, boardinghouse, roominghouse, tourist home, tourist court or similar place advertising in any manner for transient patronage shall pay an annual license tax thereon of one dollar ($1.00) per room; provided, however, the license tax shall not be less than twenty-five dollars ($25.00).
The lobby, club room, office, dining room, kitchen and rooms occupied by the owner or lessee of the premises, or members of his family, for his or their personal or private use, shall not be counted when calculating the number of rooms for the basis of the license tax.
The tax provided for in this section shall apply whether the charges are made at daily, weekly, biweekly or monthly rate; such tax shall also apply as to any particular room whether or not such room is occupied by a permanent guest.
The tax herein levied shall be in addition to any tax levied for the sale of prepared food.
Numbering of rooms. Each sleeping room or living room unit in the businesses subject to this section shall be numbered or designated in a plain, conspicuous manner. Such number or designation shall be placed on the outside of the outer door of each sleeping room or living room unit, and no two (2) units shall bear the same number.
Guest register. Every person engaged in the business subject to this section, shall at all times keep and maintain therein a guest register in which shall be inscribed the true name and home address of each person renting said room or unit, as well as such person's vehicle description and license plate information. Such register shall be signed by the person renting said room or unit or someone signing by his authority.
The proprietor of such business shall write opposite such name so registered, the number of each room or unit assigned to and occupied by such guest, together with the date when such room or unit is rented. No person shall be allowed to occupy any room or unit in said establishment until all of the aforementioned entries have been made in such register.
The register required by this section shall be maintained by the proprietor of said business for one year of the date of rental, and subject to inspection at any reasonable time by any law-enforcement officer with territorial jurisdiction while in the performance of his duties or by an official of the fire prevention bureau of the town.
The guest vehicle parking area of any business licensed under this section shall be accessible at all times to any public safety officer in the performance of his duties.
Penalty. Any violation of subsections (e) through (g) of this section shall be a misdemeanor, punishable by imprisonment up to thirty (30) days, or a fine of up to one hundred dollars ($100.00), in the discretion of the court.
Sec. 10-1A.32. Ice cream manufacturers, dealers, etc.
Every person engaged in the business of manufacturing or distributing ice cream at wholesale shall pay for each factory or place where manufactured or stored for distribution the following base tax:
Where the machine or the equipment unit used is of the continuous freezer type the rate of tax shall be $0.375 per gallon capacity based on the rated capacity in gallons per hour according to the manufacturer's rating of such freezer or freezers, but in no case shall the tax be less than twelve dollars and fifty cents ($12.50) per annum for any freezer or freezers used.
Where the machine or equipment unit used is not of the continuous freezer type the rate of tax shall be one dollar and twenty-five cents ($1.25) per gallon capacity for the freezer or freezers used, but in no case shall the tax be less than twelve dollars and fifty cents ($12.50) per annum for any freezer or freezers used.
The revenue collector shall have the right to check the correctness or accuracy of any such manufacturer's rating herein referred to and to levy the tax herein authorized on the basis of such determined capacity. Where no standard freezer equipment with manufacturer's capacity rating is used, a tax of twelve dollars and fifty cents ($12.50) shall apply. The license tax herein shall not apply to any farmer who manufactures and sells only the products of his own cows.
Every person selling or delivering ice cream on which the tax has not been paid under the provisions of this section shall pay an annual license tax of twenty-five dollars ($25.00) per truck, automobile or vehicle. The license shall be posted in the cab of the truck, automobile or other vehicle.
For the purpose of this section the words "ice cream" shall apply to ice cream, frozen custards, sherbets, water ices, or similar frozen products.
Ice Cream - Retail : Every retail dealer selling at retail ice cream purchased from a manufacturer or other than a manufacturer who has paid the tax imposed in subsection (a) or (b) of this section or a manufacturer using counter freezer equipment and selling ice cream at retail only shall pay an annual license tax of two dollars and fifty cents ($2.50).
Sec. 10-1A.33. Laundries.
Every person engaged in the business of operating a laundry, including wet or damp wash laundries and businesses known as " launderettes," "launderalls" and similar type businesses, where steam, electritown, or other power is used, or who engages in the business of supplying or renting clean linen or towels or wearing apparel, shall pay an annual license tax of fifty dollars ($50.00).
If a place of business solicits outside the county where the place of business is located, the license tax is one hundred dollars ($100.00).
Every person engaged in the business of soliciting laundry work to be done by a laundry or plant
that has not paid a state license tax shall pay an annual tax of one hundred dollars ($100.00) and shall carry the license in the cab of any vehicle used in soliciting in this town.
Sec. 10-1A.34. Loan agencies or brokers.
Every person engaged in the regular business of making loans or lending money, accepting liens on, or contracts of assignment of, salaries or wages, or any part thereof, or other security or evidence of debt for repayment of such loans in installment payments or otherwise, and maintaining in connection with same any office or other location or established place for the conduct, negotiation, or transaction of such business or advertising or soliciting such business in any manner whatsoever, shall be deemed a loan agency, and shall pay an annual license tax of one hundred dollars ($100.00).
Subsection (a) does not apply to:
Banks, industrial banks, trust companies, building and loan associations, cooperative credit unions.
Installment paper dealers.
The business of negotiating loans on real estate, nor to pawnbrokers lending or advancing money on specific articles of personal property.
Subsection (a) does apply to:
Those persons operating what are commonly known as loan companies or finance companies and whose business is as hereinbefore described.
Those persons pursuing the business of lending money and taking as security for the payment of such loan and interest an assignment of wages or an assignment of wages with power of attorney to collect same, or other order or chattel mortgage or bill of sale upon households or kitchen furniture.
Sec. 10-1A.35. Miscellaneous
Every person engaged in a non-exempt business for which a specific tax is listed in this section specifically for that type of business shall pay an annual tax based on the gross receipts of said business and based on the following schedule:
Gross Receipts Tax
$0 – 50,000 $25.00
$50,001 – 100,000 $50.00
over $100,000 $75.00
Sec. 10-1A.36. Motorcycle dealers.
Every person engaged in the business of buying, selling, distributing, or exchanging motorcycles or motorcycle supplies, or any of such commodities shall pay an annual license tax for each location where such business is carried on of twelve dollars and fifty cents ($12.50).
A motorcycle dealer paying the license tax under this section may buy, sell, or deal in bicycles and bicycle supplies without the payment of an additional license tax. No additional license tax shall be levied upon or collected from any employee or salesman whose employer has paid the tax levied in this section.
Sec. 10-1A.37. Music machines.
Every person engaged in the business of operating, maintaining, or placing on location any machine or machines which plays records, or produces music, shall pay an annual license tax for each machine of five dollars ($5.00).
The applicant for a license under this section shall, in making application for license, specify the serial number of the machine or machines proposed to be operated, together with a description of the service offered for sale thereby, and the amounts of deposit required by or in connection with the operation of such machine or machines. The license shall carry the serial number to correspond with that on the application, and no such license shall under any condition be transferable to any other machines. It shall be the duty of the person in whose place of business the machine is operated or located to see that the proper license is attached in a conspicuous place on the machine before its operation shall commence.
Sec. 10-1A.38. Outdoor advertising.
Every person who is engaged in the business of outdoor advertising by placing, erecting, or maintaining one (1) or more outdoor advertising signs or structures of any nature by means of signboards, poster boards, or printed bulletins, or other painted matter, or any outdoor advertising devices, erected upon the grounds, walls or roofs of buildings shall pay an annual license tax of thirty-five dollars ($35.00).
The tax levied in this section shall not apply to regularly licensed motion picture theaters upon any advertising signs, structures, boards, bulletins, or other devices erected by or placed by the theater upon property which the theater has secured by permission of the owner.
Every person who places, erects or maintains one (1) or more outdoor advertising signs, structures, boards, bulletins or devices as specified in this section shall be deemed to be engaged in the business of outdoor advertising.
Every person maintaining signboards, poster boards, printed bulletins, or other outdoor advertisements of any nature shall have imprinted on the same the name of such person, firm, or corporation in sufficient size to be plainly visible and permanently affixed thereto.
The following signs and announcements are exempted from the provisions of this section:
Signs upon property advertising the business conducted thereon.
Notices or advertisements erected by public authority or required by law in any legal proceedings.
Any sign containing sixty (60) square feet or less bearing an announcement of the town advertising itself; provided, the same is maintained at public expense.
No tax shall be levied under this section against any person painting, posting or otherwise displaying signs or panels advertising his or its own business containing twelve (12) square feet or less of advertising surface; provided, that this exemption shall not apply if the signs or panels are displayed in more than five (5) counties.
Sec. 10-1A.39. Pawnbrokers.
Every person engaged in and conducting the business of lending or advancing money or other things of value for a profit, and taking as a pledge for such loan specific articles of personal property, to be forfeited if payment is not made within a definite time shall be deemed a pawnbroker, and shall pay an annual license tax of one hundred dollars ($100.00).
Sec. 10-1A.40. Peddlers and itinerant merchants.
Peddlers. Every person engaged in business or employed as a peddler shall obtain a license for the privilege of peddling goods and shall pay a tax for the license in the amount specified in this section. A peddler is a person who travels from place to place with an inventory of goods, who sells the goods at retail or offers the goods for sale at retail, and who delivers the identical goods he carries with him. A peddler who travels from place to place on foot shall pay a tax of ten dollars ($10.00). A peddler who travels from place to place by vehicle shall pay a tax of twenty-five dollars ($25.00).
Itinerant merchant. Every person engaged in business as an itinerant merchant shall obtain a license for the privilege of engaging in business and shall pay a tax for the license of one hundred dollars ($100.00). An itinerant merchant is a merchant, other than a merchant with an established retail store in the town, who transports an inventory of goods to a building, vacant lot, or other location in the town and who, at that location, displays the goods for sale and sells the goods at retail or offers the goods for sale at retail. A merchant who sells goods, other than farm products, for less than six (6) consecutive months is considered an itinerant merchant unless he stops selling goods in the town because of his death or disablement, the insolvency of his business, or the destruction of his inventory by fire or other catastrophe.
Exemptions. This section does not apply to the following:
Peddler or itinerant merchant who:
Sells farm or nursery products produced by him;
Sells crafts or goods made by him or his own household personal property.
Is a nonprofit charitable, educational, religious, scientific, or civic organization.
Sells printed material, wood for fuel, ice, seafood, meat, poultry, livestock, eggs, dairy products, bread, cakes, or pies.
Is an authorized automobile dealer licensed pursuant to Chapter 20 of the General Statutes.
A peddler who maintains a fixed, permanent location from which he makes at least ninety (90) percent of his sales, but who sells some goods in the town of his fixed location by peddling.
Itinerant merchant who:
Locates at a farmers market.
Is a part of an agricultural fair which is licensed by the commissioner of agriculture pursuant to
General Statutes 106-520.3.
Sells goods at an auction conducted by an auctioneer licensed pursuant to Chapter 85B of the General Statutes.
A peddler who complies with the requirements of General Statutes 25A-38 through General Statutes 25A-42 or who complies with the requirements of General Statutes 14-401.13.
Person defined. As used in this section, "person" has the same meaning as in General Statutes 105-164.3(11).
Special exemption from tax. The board of county commissioners of any county in this state, upon proper application, may exempt from the annual license tax levied upon peddlers and itinerant merchants in this section, disabled veterans of World War I, World War II, the Korean Conflict and Vietnam War who have been bona fide residents of this state for twelve (12) or more months continuously and widows with dependent children; and who so exempt, the board of county commissioners shall furnish such person or persons with a certificate of exemption and such certificate shall entitle the holder thereof to sell within the limits of the town without payment of any license tax to the town.
Display and possession of license and identification. An itinerant merchant shall keep the license required by this section conspicuously and prominently displayed so as to be visible for inspection by patrons of the itinerant merchant at the place or locations at which the goods are to be sold or offered for sale. A peddler shall have a license required by this section with him at all times he offers goods for sale and must produce them upon the request of any customer, state or local revenue or law enforcement agent.
Upon the request of any customer, state or local revenue or law enforcement agent, a peddler or itinerant merchant shall provide its name and permanent address. If the peddler or itinerant merchant is not a corporation, he shall, upon the request of any customer, state or local revenue or law enforcement agent, provide a valid drivers license, a special identification card issued under General Statutes 20-37.7, Military Identification, or a passport bearing a physical description of the person named reasonably describing the peddler or itinerant merchant. If the peddler or itinerant merchant is a corporation, it shall, upon the request of any customer, state or local revenue or law enforcement agent, give the name and registered agent of the corporation and the address of the registered office of the corporation, as filed with the North Carolina Secretary of State.
Permission of property owner. An itinerant merchant or a peddler who travels from place to place by vehicle, in addition to other requirements of this section, shall obtain a written statement, signed by the owner or lessee of any property upon which the itinerant merchant or peddler offers goods for sale giving the owners or lessees permission to offer goods for sale upon the property of the owner or lessee, the location of the premises for which the permission is granted, and the dates during which the permission is valid. Further, such statements shall be conspicuously and prominently displayed, so as to be visible for inspection by patrons of the itinerant merchant or peddler, at the places or locations at which the goods are to be sold or offered for sale.
Sec. 10-1A.41. Pianos, organs, victrolas, records, radios, accessories.
Every person engaged in the business of selling, offering or ordering for sale, repairing or servicing any tape players, tape cartridges designed for use in tape players, pianos, organs, graphophones, victrolas, or other instruments using discs or cylinder records, or the sale of records for either or all of these instruments, television sets, television accessories and repair parts, radios or radio accessories and repair parts, including radios designed for exclusive use in automobiles, shall pay an annual license tax of five dollars ($5.00); provided, that persons licensed under this section shall not be required to procure a license for automobiles and service stations by reason of being engaged in the business of selling, installing, or servicing automobile radios.
Any person applying for and obtaining a license under this section may employ traveling representatives or agents, but such traveling agents or representatives shall pay a license tax of five dollars ($5.00).
Sec. 10-1A.42. Restaurants.
Every person engaged in the business of operating a restaurant, cafe, cafeteria, hotel with dining service on the European plan, drugstore, or other place where prepared food is sold, shall pay an annual license tax of:
Eighty-five dollars ($85.00) for a business that has seating for at least five (5) customers; or
Twenty-five dollars ($25.00) for a business that has a seating capacity for four (4) customers or less.
Subsection (a) shall not apply to industrial plants maintaining a nonprofit restaurant, cafe, or cafeteria solely for the convenience of its employees.
This section does not apply to the privilege of operating vending machines or the sale of any commodity through such machines licensed under North Carolina General Statutes section 105-65.1 and required by such section to pay a tax.
Sec. 10-1A.43. Security dealers.
Every person engaged in the business of dealing in securities, as defined in North Carolina Securities Act [G.S. Ch. 78A] and who maintains a place for or engages in the business of buying or selling shares of stock in any corporation, bonds, or any other securities on commission or brokerage, shall pay an annual license tax based upon the annual gross receipts of the services provided by such business according to the following schedule:
Gross Receipts Tax
$0 – 50,000 $25.00
$50,001 – 100,000 $50.00
over $100,000 $75.00
Sec. 10-1A.44. Service establishments and businesses.
Every person engaged in the business of rendering or furnishing personal, financial, industrial, commercial, or home services to others for compensation and not otherwise specifically taxed under this chapter and not exempt from taxation for license tax purposes by the statutes of the state, shall procure a license for the privilege of engaging in such business in this town and shall pay for each store or place of business operated by him an annual tax based upon the annual gross receipts of the services provided by such business according to the following schedule:
Gross Receipts Tax
$0 – 50,000 $25.00
$50,001 – 100,000 $50.00
over $100,000 $75.00
Sec. 10-1A.45. Solicitors.
Every person who travels from place to place taking or offering to take orders for the sale of goods for future delivery or for personal services to be performed in the future, regardless of whether samples are displayed or money is collected in advance, and every person who uses or occupies any building or premises for the sole purpose of taking or offering to take orders for the sale of goods for future delivery or for personal services to be performed in the future, regardless of whether samples are displayed or money is collected in advance, shall pay a license tax as follows:
Gross Receipts Tax
$0 – 50,000 $25.00
$50,001 – 100,000 $50.00
over $100,000 $75.00
The license tax levied in this section shall not apply to any solicitor engaged in interstate commerce, but such solicitor shall secure a license appropriately marked to show such an exemption.
Sec. 10-1A.46. Specialty market operator.
Every person using a location for the purpose of promoting the display or sale of merchandise, wares or other tangible items in connection with a specialty market as defined in N.C.G.S. 105-53 shall pay an annual license tax of two hundred dollars ($200.00).
Where a group of exhibitors places merchandise in the same location under one general manager or promoter, the total tax prescribed by this section shall be due from the manager or promoter and all others shall be exempt from this privilege license tax.
An itinerant merchant's license is not required to engage in, the business of a vendor at a location licensed as a specialty market under this section or a specialty market that is exempt from the license requirements because the specialty market operator is the state or a unit of local government.
Display and possession of licenses and identification. A specialty market operator shall have the license required by this section available for inspection during all times the specialty market is open and must produce it upon request of any customer, state and/or local revenue or law enforcement officer or agent.
Upon the request of any customer, state and/or local revenue or law enforcement agent, a specialty market operator shall provide its name and permanent address. If the specialty market operator is not a corporation, he shall, upon the request of any customer, state and/or local revenue or law enforcement officer or agent, provide a valid drivers license, a special identification card issued under G.S. Section 20-37.7, military identification, or a passport bearing a physical description of the person named reasonably describing the specialty market operator. If the specialty market operator is a corporation, it shall, upon the request of any customer, state and/or local revenue or law enforcement officer or agent, give name and registered agent of the corporation and the address of the registered office of the corporation as filed with the North Carolina Secretary of State.
Specialty market registration list. A specialty market operator shall maintain a daily registration list of all vendors selling or offering goods for sale at the specialty market. This registration list shall clearly and legibly show each vendor's name and permanent address. The specialty market operator shall require each vendor to exhibit a valid town privilege license for visual inspection by the specialty market operator at the time of registration, and shall require each vendor to keep the license conspicuously and prominently displayed so as to be visible for inspection by patrons of the vendor at the places or locations at which the goods are sold or offered for sale. Each daily registration list maintained pursuant to this section shall be retained by the specialty market operator for no less than two (2) years and shall, at any time, be made available upon request to any state or local revenue or law enforcement officer or agent.
Sec. 10-1A.47. Specialty market vendor.
A specialty market vendor is a person who transports an inventory of goods to a specialty market licensed under Section 13.111.1(a) of this Code and who, at that location displays the goods for sale and sells the goods or offers the goods for sale. A specialty market vendor shall pay an annual license tax of twenty-five dollars ($25.00).
A specialty market vendor shall keep the license required by this section conspicuously and prominently displayed so as to be visible for inspection by patrons of the vendor at the place or locations at which the goods are to be sold or offered for sale. A specialty market vendor shall have a license required by this section with him at all times he offers goods for sale and must produce them upon request of any customer, state or local revenue or law enforcement agent.
Upon the request of any customer, state or local revenue or law enforcement agent, a specialty market vendor shall provide its name and permanent address. If the vendor is not a corporation, he shall, upon the request of any customer, state or local revenue or law enforcement agent, provide a valid drivers license, a special identification card issued under General Statute Section 20-37.7, military identification, or a passport bearing a physical description of the person named reasonably describing the specialty market vendor. If the vendor is a corporation, it shall, upon the request of any customer, state or local revenue or law enforcement agent, give the name and registered agent of the corporation and the address of the registered office of the corporation, as filed with the North Carolina Secretary of State.
Sec. 10-1A.48. Sundries including sandwiches, soft drinks and tobaccos.
Every person engaged in any or all of the following businesses shall pay a license tax of four dollars ($4.00) per annum:
The sale of sandwiches in drugstores, service stations or any other stands or places not licensed and taxed as a restaurant under section 13-107.
The operation of a soda fountain or soft drink stand.
The retailing or jobbing of cigarettes, cigars, chewing tobacco, snuff or any other tobacco products.
Subsection (a) does not apply where sundries are dispensed through vending machines.
Sec. 10-1A.49. Taxicabs.
Every person engaged in the business of keeping or operating taxicabs for hire shall pay an annual license tax for each taxicab of twenty-five dollars ($25.00).
Sec. 10-1A.50. Tobacco warehouses.
Every person engaged in the business of operating a warehouse for the sale of leaf tobacco upon commission shall pay an annual license tax for each warehouse of fifty dollars ($50.00).
Sec. 10-1A.51. Undertakers and retail dealers in coffins.
Every person engaged in the business of burying the dead, or in the retail sale of coffins shall pay an annual license tax of fifty dollars ($50.00). This section does not apply to a cabinetmaker (who is not an undertaker) who makes coffins to order.
Sec. 10-1A.52. Telegraph companies.
Every telegraph company engaged in business within the town shall pay an annual license tax of fifty dollars ($50.00).
Sec. 10-1A.53. Weapons dealers.
Every person who is engaged in the business of keeping in stock, selling, or offering for sale any of the articles or commodities enumerated in this section shall pay a license tax as follows:
Firearms other than antique firearms, fifty dollars ($50.00).
For bowie knives, dirks, daggers, leaded canes, iron or metallic knuckles, or articles of like kind, two hundred dollars ($200.00).
For blank cartridge pistols, fifty dollars ($50.00).
If such person deals only in metallic cartridges, five dollars ($5.00).”
Section III. Chapter 10 is hereby revised by adding a new Article 1B to read as follows:
“ARTICLE IB.
ENFORCEMENT AND INVESTIGATIVE PROCEDURES
__________
Sec. 10-1B.01 Penalty for providing false information.
Any person who willfully makes a false statement on a license application shall be guilty of a misdemeanor and, upon conviction, shall be fined or imprisoned in the discretion of the court and any fine shall be in addition to the amount of the tax.
Sec. 10-1B.02. Withholding information.
The revenue collector will automatically deny the license application of any business that withholds relevant information on the license application. If the business refuses to supply the required information, the business will be considered to be operating without a license and will be subject to prosecution and revocation of other licenses and permits which require a valid privilege
Sec. 10-1B.03. Enforcement.
The provisions of this article may be enforced by injunctive remedy and/or the imposition of a civil penalty of fifty dollars ($50.00) as provided by law. Violation of this article shall constitute a misdemeanor. Each day or operation in violation of this article shall constitute a separate civil and/or criminal offense.
Sec. 10-1B.04. Investigative powers of revenue collector.
The town revenue collector or designee may examine the books, papers and records of any licensee in order to ascertain the amount of license tax due under the provisions of this article.
Each licensee shall give to revenue collector the means, facilities and opportunity for the making of such examination and investigation.
The revenue collector or designee is hereby authorized to examine any person under oath concerning the matters set forth in this section, and to this end he may compel the production of books, papers, records, and the attendance of all persons before him, whether as parties or as witnesses whom he believes to have knowledge of the matters set forth in this section, to the extent that any officer empowered to administer oaths in this state is permitted to cause such coercion.
Each person who conducts a business taxed under this article shall keep all records and books necessary to compute the tax liability. If a person fails to keep books and records as required, the revenue collector shall make a determination of that person's tax liability from the information available.
Each person who conducts business in the town shall permit the revenue collector or designee to inspect the business premises during normal business hours to determine the nature of the business conducted there and to examine the books and records to determine the nature and amount of business transacted.
Sec. 10-1B.05. Notice of deficiency.
If the revenue collector determines that a person has not paid the full amount of tax due under this article, either for the current license year or for a prior license year, the revenue collector shall give the person written notice of the deficiency, in accordance with section 9-57. The notice of deficiency shall specify the following:
The total amount of tax due;
The section of this article upon which the tax is based;
The amount of tax paid;
Any interest due;
The balance owed;
The manner and time period in which the person may respond to the notice of the deficiency; and
The consequences of failing to respond as specified.
Sec. 10-1B.06. Conference.
The person receiving notice of the privilege license tax deficiency may, within ten days after the day on which notice is served, request a conference in writing. The request shall specify the person's objections to the notice of deficiency. By way of illustration but not limitation, the person who receives notice of a deficiency may object on the following grounds:
The tax due has already been paid;
The revenue collector miscalculated the amount of tax due;
The revenue collector based his calculations on incorrect or insufficient information concerning either the nature or the amount of business conducted; or
The revenue collector based the determination on an erroneous interpretation of a section of this article that establishes a category of business subject to a particular tax.
If the taxpayer requests a conference, the revenue collector shall not proceed to collect the privilege license tax deficiency until hearing the taxpayer's objections and determining that the deficiency should become final.
Sec. 10-1B.07. Information obtained by revenue collector confidential.
Any information gained by the town revenue collector as a result of any investigations, hearings, etc., as required or authorized by this article, shall be confidential, except for official purposes and except in accordance with proper judicial order or as otherwise provided by law, and it shall be unlawful to divulge such information; provided, however the town revenue collector may disclose to the state commissioner of revenue, or his duly authorized agent all such information and right to inspect any of the books and records of the town revenue collector if the commissioner grants to the town revenue collector the reciprocal right to obtain information from the files and records of the state department of revenue and maintains the privileged character of the information so furnished him.
Sec. 10-1B.08. Amount of tax disputed.
If disputes arise over the amount of the privilege license tax the revenue collector determines to be due, the applicant may either refuse to pay and request a conference with the finance director to discuss the determination or pay the amount and request a conference to discuss the right to a refund. If a conference is requested, the revenue collector shall arrange it within a reasonable time.
Sec. 10-1B.09. Finality of deficiency determination.
If the taxpayer fails to request a conference under section 10-22.03, the privilege license tax deficiency becomes final and the revenue collector shall proceed to collect the deficiency.
Sec. 10-1B.10. Procedure for providing notice to applicant or licensee.
Whenever this article requires the revenue collector to give a written statement or notice to an applicant or a licensee, the revenue collector may do so in one of the following ways:
By personally delivering the statement or notice to the applicant or licensee;
By mailing the statement or notice by registered or certified mail and returning the receipt requested to the address specified for that purpose in the license application; or
By causing the statement or notice to be served on the applicant or licensee in accordance with the procedures for service of process under rule 4, state Rules of Civil Procedure.
Sec. 10-1B.11. Enforcement and collection of deficiency.
The revenue collector may use any of the following methods to collect a privilege license tax deficiency:
Criminal prosecution in accordance with section;
Equitable relief - the town may seek an injunction against any person who conducts a business in violation of Article 1, 1A or 1B of this Chapter.
The remedies of levy, sale, attachment and garnishment in accordance with G.S. 160A-207; or (4) The remedies of levy and sale of real and personal property of the taxpayer within the town in accordance with the provisions of G.S. 105-109.
Any person who commences or continues to conduct a business taxed under this article without payment of the tax is liable for the additional tax of five percent every 30 days as imposed by G.S. 105-109.
Sec. 10-1B.12. Penalties
Penalty. It shall be a misdemeanor, punishable by imprisonment up to thirty (30) days, a fine of up to two hundred dollars ($200.00), or both for a person to:
Fail to obtain a license as required by Section10-1A.40, 10-1A.46, 10-1A.47
Knowingly give false information in the application process for a license or when registering pursuant to section 13-111.1(e).
If a person, as an itinerant merchant, fails to display the license as required by this section, or if the person, as a peddler, fails to produce the license required by this section, or if the person required to do so, fails to comply with subsection (g). Whenever satisfactory evidence shall be presented in any court of the fact that a license was required by this section and such license was not displayed or produced as required by this section or that permission was required by this section and was not displayed, the peddler or itinerant merchant shall be found not guilty of that violation, provided he produces in court a valid license or valid permission which had been issued prior to the time he was charged with such violation.
Fail to provide name, address, or identification upon request as required by this section, or provide false information in response to such a request.”
Section 4. This ordinance shall become effective upon adoption.
This the 9th day of April, 2001.
A RESOLUTION SELECTING PRIVILEGE LICENSE TAX OPTION ___, (2001-04-09/R-16.1)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town adopt Option ___ for privilege license taxes for miscellaneous businesses.
BE IT FURTHER RESOLVED that on April 23, 2001, the Town Manager submit a revised privilege license tax ordinance incorporating the provisions of Option ___.
This the 9th day of April, 2001.