CHAPTER 8 -
TRADES AND BUSINESSES
Subchapter I - Privilege License Tax
Article I - Definitions and Construction
Section 8-1 Definitions........................................................................................................
Section 8-2 Construction of this Subchapter.......................................................................
Article II - Levy of Tax
Section 8-3 License and Payment of Tax Required..............................................................
Section 8-4 Exemptions........................................................................................................
Section 8-5 Schedule of License Taxes................................................................................
Article III - Licenses
Section 8-8 Period of License..............................................................................................
Section 8-9 Application.......................................................................................................
Section 8-10 Separate Businesses, Multiple Businesses.......................................................
Section 8-11 Reasons for Refusal or Revocation of a License.............................................
Section 8-12 Unqualified Applicant; Right to a Conference................................................
Section 8-13 Tax Collector to Issue License; Payment of Tax a Prerequisite.......................
Section 8-14 Amount of Tax Disputed..................................................................................
Section 8-15 Revocation......................................................................................................
Section 8-16 Form and Contents of License........................................................................
Section 8-17 Assignments....................................................................................................
Section 8-18 Changes in Business Conducted by Licensee During Tax Year.......................
Section 8-19 Tax Collector to Furnish Duplicates...............................................................
Section 8-20 Record of Conferences...................................................................................
Section 8-21 Providing Notice to an Applicant or Licensee.................................................
Section 8-22 Special Provisions for Beer and Wine Licenses..............................................
Article IV - Enforcement and Collections
Section 8-26 Duty to Determine Whether Tax Due...............................................................
Section 8-27 Duty to Post License.......................................................................................
Section 8-28 Notice of Deficiency.......................................................................................
Section 8-29 Request for a Conference...............................................................................
Section 8-30 Deficiency to Become Final............................................................................
Section 8-31 Conference Held.............................................................................................
Section 8-32 Collection of Deficiency.................................................................................
Section 8-33 Appeals...........................................................................................................
Section 8-34 Enforcement of Chapter..................................................................................
Subchapter II -
Regulation and Licensing of Businesses
Article V - Taxicabs
Section 8-40 Privilege License Required.............................................................................
Section 8-41 Criteria for Privilege License..........................................................................
Section 8-42 Operator's Permit............................................................................................
Section 8-43 Taxicabs to Display Required Information......................................................
Article VI - Peddlers, Etc.
Section 8-46 Definitions......................................................................................................
Section 8-47 Commercial Solicitation Permit Required........................................................
Section 8-48 Application Requirements; Grounds for Denial..............................................
Section 8-49 No Itinerant Merchants, Peddling or Soliciting in Central Business...............
Article VII - Penalties and Remedies
Section 8-52 Penalties and Remedies...................................................................................
(A) Unless
otherwise specifically provided, or unless clearly required by the context, the
words and phrases defined below shall have the meaning indicated when used in
this subchapter:
(1) "Business" includes
any trade, occupation, profession or other activity engaged in by any person or
caused to be engaged in by him with the object of gain, profit, benefit, or
advantage, either direct or indirect, except that the term business does not
include occasional and isolate sales or transactions by a person who does not
hold himself out as engaged in business.
(2) A person "conducts a business"
when he engages in one act of any business.
(3) A person conducts a business "within
the town" when he maintains a business location within the town or
when, either personally or through agents, he: (i)
solicits business within the town; or (ii) picks up or delivers goods or
services within the town.
This subchapter is enacted primarily for revenue
purposes, and therefore it should be construed to require payment of the
maximum tax permitted by its terms. A
secondary purpose of this subchapter is to prevent the operation of covered
businesses until the person applying for the license has complied with certain
town ordinances. Issuance of a license
pursuant to this subchapter does not excuse the licensee from compliance with
any other applicable ordinance or statute.
This subchapter does not prevent the town from increasing or decreasing
the amount of any license tax or from regulating any business taxed.
Subject to Section 8-4, no person may conduct any
business within the town without having paid the tax required by this
subchapter or without a valid privilege license issued pursuant to this
subchapter.
(A) If an
individual conducts a business as a partner in a partnership or as an officer
or employee of a corporation or as an employee or member of any other business
entity, that individual is not required to obtain a privilege license or pay a
privilege license. However, the
partnership, corporation, or other business entity must obtain the license and
pay the tax unless exempted by this section.
(B) Owners of
real property who lease that property need not obtain a privilege license or
pay a privilege license tax solely for acting as lessor
of that property.
(C) A person
who operates a business for a religious, educational, civic, patriotic,
charitable, or fraternal purpose, is exempt from
obtaining a privilege license or paying a privilege license tax.
(D) Blind
persons and persons who serve in the United States Armed Forces or the Merchant
Marine are exempt from obtaining a privilege license or paying any privilege
license tax levied by this chapter to the extent provided by G.S. 105-249 and
G.S. 105-249.1.
(E) Persons
who solicit business or pick up or deliver goods or services within the town are
not required to obtain a privilege license or pay a privilege license tax if
business is solicited primarily from or goods or services are delivered
primarily to businesses that themselves pay a privilege license tax to the
town.
(F) The
following businesses are exempt from obtaining a privilege license or paying a
privilege license tax as provided by the indicated section of the General
Statutes. A more complete and detailed
description of the exempt businesses is contained in the cited sections of the
General Statutes.
|
General Statute |
Business |
|
105-36 |
Amusements - manufacturing, selling,
leasing or distributing moving picture films or checking attendance at
moving picture shows. |
|
105-41 |
Attorneys,
physicians, land surveyors, engineers, architects, photographers, real estate
brokers, accountants, morticians, and similar professionals. |
|
General Statute |
Business |
|
105-42 |
Private
protective services. |
|
105-51 |
Dealers in
cash registers, adding machines, typewriters, refrigerators, washing
machines, and similar office equipment and home appliances. |
|
105-57 |
Persons
engaged in the business of reporting the financial standing of persons,
firms, and corporations. |
|
105-65 |
Persons
operating, maintaining, or placing location music machines. |
|
105-65.1 |
Operators or
distributors of merchandise dispensing machines. |
|
105-83 |
Installment
paper dealers. |
|
105-99 |
Wholesale
distributors of motor fuels. |
|
105-102.1 |
Certain
cooperative associations. |
|
105-102.3 |
Banks. |
|
105-113.5(a) |
Soft drink
manufacturers and bottlers. |
|
105-115 |
Railroads. |
|
105-116 |
Utility
companies (electrical power, gas, water, and sewer). |
|
105-120 |
Telephone
companies. |
|
105-120.1 |
Bus
companies. |
|
105-228.10 |
Insurance
companies and associations. |
|
105-228.25 |
Building and
loan associations. |
(A) Except as
otherwise provided in this section, all persons who conduct a business within
the town shall pay a privilege license tax of twenty-five dollars.
(B) Persons
engaged exclusively in one or more businesses listed in Schedule B of Chapter
105 of the General Statutes [other than those businesses specified in
subsection (C)] shall pay a privilege license tax equal to the sum of the
maximum tax that the town may charge under Schedule B for each such business
engaged in, or twenty-five dollars, whichever is less. Persons engaged in one or more businesses
listed in Schedule B [other that those specified in subsection (C)] as well as
some other non-listed businesses shall pay a privilege tax of twenty-five
dollars.
(C) Persons
engaged exclusively in one or more of the following businesses shall pay the
maximum amount of privilege license tax authorized by the cited statute. If a person is engaged in more than one of
the following businesses, he shall pay an amount equal to the sum of the
maximum tax that the town may charge for each such business engaged in.
|
General Statutes |
Business |
|
105-53 |
Itinerant merchants and salesman - Every itinerant
salesman or merchant selling goods, wares, or merchandise, either on the
streets or in a building, not being a regular merchant of a municipality; and
every operator of a flea market at which any itinerant merchants and salesmen
expose for sale any goods, wares, or merchandise. Per Year
$100.00 No itinerant salesman or merchant shall be
required to procure or pay for a separate license under this section to offer
merchandise for sale only at a flea market already licensed. Any salesman or merchant offering for sale goods,
wares or merchandise, other than fruits and farm products, shall be deemed an
itinerant within the meaning of this section, if he conducts business within
a municipality for less than six consecutive months. When any salesman or merchant does not pay
the tax herein levied due to a stated intention to become a regular merchant,
the municipal tax collector may require him to post a cash deposit in the sum
of one-hundred dollars ($100.00), which bond shall be forfeited for the
payment of the tax herein levied in the event such person discontinues the
business within six months for any reason other than death, disability,
insolvency, or destruction of stock by fire or other catastrophe. This tax shall not apply to persons who sell
books, periodicals, printed music, ice, wood for fuel, fish, beef, mutton,
pork, bread, cakes, pies, dairy products, poultry, eggs, livestock or
articles produced by the individual offering them for sale, but shall apply
to medicines, drugs or articles assembled. |
|
105-53 |
Peddlers - Any person who shall carry from place to
place any goods, wares, or merchandise and sell or barter the same, shall be
deemed a peddler, except wholesale dealers with established warehouses
selling only to merchants for resale. Per
Year Peddlers on foot
$10.00 Peddlers with horse or other animal, and
with or without vehicle $15.00 Peddlers with vehicle propelled by
motion or other power, for each vehicle
$200.00 Peddlers with vehicle of one-half ton
capacity or less $25.00 Peddlers selling fruits, vegetables, or
products of the farm $12.50 No municipality may issue any license to a peddler
in the above category unless such person has first acquired a state license. Any
person, firm or corporation which sells or offers for sale from any railway car fresh
fruits or vegetables $25.00 This section is not applicable to the sale of
books, periodicals, printed music, ice, wood for fuel, fish, beef, mutton,
pork, bread, cakes, pies, dairy products, poultry, eggs, livestock or other
articles produced by the vendor offering them for sale, but shall apply to
medicines, drugs or articles assembled. |
|
105-61 |
Hotels, motels, tourist courts and tourist homes - Every person, firm or
corporation engaged in the business of operating a hotel, motel, tourist
court or tourist home. Per Year, per room
$1.00 There is a minimum tax under this section of five
dollars ($5.00). |
|
105-62 |
Restaurants, cafes and cafeterias - Restaurants with less
than five seats shall pay $25.00 to the Town as an annual Privilege License
Fee and that restaurants with five or more seats shall pay to the Town an
annual Privilege License Fee of $42.50 effective on July 1, 1991. |
|
105-113.73 |
Wine and beer - Wholesale dealers. Beer, per year
$37.50 Wine, per year
$37.50 Both wine and beer under the same
license $62.50 |
|
105-113.79 |
Wine and beer. On-premises malt beverage $15.00 Off-premises malt beverage
$ 5.00 On-premises unfortified wine
$15.00 Off-premises unfortified wine $10.00 The annual
license stated above is the fee for the first license issued to a
person. The fee for each additional
license issued to that person for the same year is ten percent of the base
license fee, that increase to apply progressively
for each additional license. |
(D) Persons engaged in one or more of the businesses listed in subsection
(C) as well as other businesses shall pay a privilege license tax equal to the
amount that would be owed under subsection (C) if only businesses listed
therein were engaged in, or twenty-five dollars, whichever is greater.
Section 8-6 and 8-7 Reserved.
(A) Unless
otherwise provided in Section 8-5, a license issued pursuant to this subchapter
is valid for that twelve-month period beginning July 1st and ending June
30th. The tax is due July 1st of each
year. However, if a person begins
business after July 1st in any year, the tax for that year is due before the
business is begun.
(B) If,
pursuant to Section 8-5, a license is issued for a period of one day, one week,
or some comparable period of less than a full licensed year, the licensee may
not continue the business beyond the period for which the license is
issued. The tax on such a business is
due not later than the day prior to commencement of the business.
(C) If for
any reason a licensee discontinues his business during a license year, he is not entitled to a refund.
(A) Subject
to subsection (B), an applicant for an annual license shall apply to the tax
collector for the license at least thirty days before the tax is due. With respect to licenses issued for one day,
one week, or some similar period less than one year, application shall be made
at least ten days before the tax is due.
These time limitations may be waived by the tax collector for good cause
shown.
(B) With
respect to businesses that have obtained privilege licenses in prior years, the
tax collector may waive the requirement that an application be submitted and
may send such businesses a notice of the amount of tax due for the forthcoming
year. However, the tax collector may
require that a full application be submitted in any subsequent year by
providing timely notice to the applicant.
(C) The tax
collector may require that the application be submitted on forms provided by
the tax collector. The application shall
contain:
(1) The name of the applicant and whether he or
it is an individual, partnership, corporation or some other entity.
(2) The nature of the business, including the
duration the business intends to operate.
(3) Where the business is conducted.
(4) An address to which may be mailed notices and
statements required by this chapter.
(5) Whether the business is one regulated by a
state occupational licensing board subject to G.S. Chapter 93B, and if so, the
serial numbers of the state licenses held by all those who are part of the
applicant's business.
(6) Any other information the tax collector
determines to be necessary to issue the privilege license in accordance with
this subchapter.
(A) A
separate license is required and a separate tax must be paid for each separate
place of business operated by the same person.
(B) If two or
more separate taxable businesses are operated at the same location by the same
owner, the tax collector may issue one privilege license upon the payment of
the total amount of taxes due for all the businesses.
(A) The tax
collector shall refuse to issue a license or shall revoke a license for any of
the following reasons:
(1) The applicant misrepresents a fact relevant
to the amount of tax due or his qualifications for a license.
(2) The applicant refuses to provide information
necessary to compute the amount of tax due.
(3) The applicant has not obtained a certificate
of occupancy when required to do so by local ordinance.
(4) The administrator charged with the
enforcement of the following codes or ordinances has certified to the tax
collector that the applicant has been found to be in violation of the law
enforced by the administrator and has either failed to appeal that
determination within the time provided or has exhausted all administrative and
judicial appeals: North Carolina State Building Code, Land Use Ordinance,
Chapter 11 or 12 of the Town Code.
(A) After
receipt of the completed application, if the tax collector believes that a
reason exists for refusing a license under Section 8-11, he shall refuse to
accept payment of the tax and shall not issue the license. At the applicant's request, the tax collector
shall, pursuant to Section 8-21, give him a written statement of the reason for
refusing the license. The applicant may,
within ten days after the day he receives this statement, request a conference
to discuss the refusal. In his request
he shall specify why his application for a license should not be refused. The tax collector shall arrange the
conference within a reasonable time, not to exceed thirty days.
(B) If the
tax collector refuses to issue a license, the applicant may reapply for a
license at any time thereafter. If the
reason for which the application was refused no longer exists, and if no other
reason exists for refusing to issue a license, the tax collector shall issue
the license pursuant to Section 8-13.
After receipt of the completed application, if the
tax collector believes that no reason exists for refusal of a license under
Section 8-11, he shall determine the amount of tax due and notify the applicant
of that amount. The tax collector shall
not issue a license until the tax is paid.
If the applicant disputes the amount the tax
collector determines to be due, he may either refuse to pay the tax and request
a conference with the tax collector to discuss the determination, or pay the
amount and request a conference to discuss his right for a refund. If a conference is requested, the tax
collector shall arrange it in a reasonable time, not to exceed thirty days.
(A) The tax
collector shall revoke a license if a reason exists to revoke it as set forth
in Section 8-11. Before the tax
collector may revoke a license, he shall give the licensee written notice of
the grounds for revocation, pursuant to Section 8-21. The licensee may, within ten days after the
day on which the notice is served, request in writing a conference with the tax
collector. The request shall specify the
reasons why the license should not be revoked.
The tax collector shall arrange the conference within a reasonable time,
not to exceed thirty days.
(B) If the
licensee fails to request a conference within ten days after the day on which
notice is served, the tax collector shall revoke the license. If the licensee requests a conference, the
tax collector may not revoke the license until after the conference.
(C) If the
tax collector revokes a license, the former licensee may apply for a new
license at any time thereafter. If the
reason for which the license was revoked no longer exists, and if no other
reason exists for refusing to issue a license, the tax collector shall issue
the license pursuant to Section 8-13.
A license shall show the name of the person
licensed, the place where the business is conducted (if it is to be conducted
at one place), the nature of business licensed, the period for which the
license is issued, and the amount of tax paid.
In addition if a machine is licensed, the license shall show the serial
number of the machine. The tax collector
shall keep a copy of each license issued.
Every license issued under this subchapter shall be
a personal privilege and shall not be assignable. When any business carried on at a fixed place
designated in the license issued therefor is sold as
a unit to any person and the purchaser thereof is to carry on such business at
the same place, such new owner shall immediately apply for a new license to
operate such business.
(A) A
licensee or his assignee shall report a change in the information contained in
the license application to the tax collector within ten days after the change
occurs. If information shown on the
license itself is affected thereby, the licensee or his assignee shall
surrender the license to the tax collector when reporting the change.
(B) If there
are no reasons for revoking the license under Section 8-11 and the change
results in the imposition of a separate or additional tax, the tax collector
shall reissue a license reflecting the change upon payment of the separate or
additional tax.
(C) If there
are no reasons for revoking the license under Section 8-11 and the change does
not result in an imposition of a separate or additional tax, the tax collector
shall reissue a license reflecting the change upon payment of a fee of five
dollars ($5.00).
(D) If there
is reason for revoking the license under Section 8-11 the tax collector shall
refuse to reissue a license and shall instead begin proceedings to revoke the
license pursuant to Section 8-15.
Upon satisfactory proof that a license has been lost or destroyed, the tax collector shall
furnish a duplicate for a fee of five
dollars.
The tax collector shall maintain for three years a
record of each conference held pursuant to this article. The record shall contain the applicant's or
licensee's name, the date of the conference, and a brief statement of the
issues discussed and the result reached.
A copy of this record shall be served upon the applicant or licensee in
the manner provided by Section 8-21.
After three years the tax collector shall dispose of the record pursuant
to G.S. 121-5.
(A) Whenever
this subchapter requires the tax collector to give a written statement or
notice to an applicant or a licensee, he may do so in one of three ways:
(1) By personally delivering the statement or
notice to the applicant or licensee.
(2) By mailing the statement or notice by
registered or certified mail, return receipt requested, to the address
specified for that purpose in the license application.
(3) 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, North Carolina Rules of Civil Procedure.
Notwithstanding the foregoing provisions,
applications for privilege licenses authorizing the retail or wholesale sale of
malt beverages or fortified or unfortified wines shall be made to the Board
(rather than the tax collector) in accordance with the procedures set forth in
G.S. 105-113.80, 105-113.82, and 105-113.85.
Sections 8-23 through 8-25 Reserved.
(A) Each
person has the duty to determine whether the business he conducts is taxed
under this chapter, and if so, whether that tax has been paid for the current
tax year.