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.

(Comp. 1961, p. 37, § 1; Ord. No. 2001-04-09/O-5, § I)

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.

(Comp. 1961, p. 37, § 18; Ord. No. 2001-04-09/O-5, § I)

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 therefor.

(Comp. 1961, p. 37, § 19; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

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.

(Comp. 1961, p. 37, §§ 2, 16; Ord. No. 2001-04-09/O-5, § I)

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 privilege license tax 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.

(Comp. 1961, p. 37, § 2; Ord. No. 89-1-9/O-1, § 2; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

Sec. 10-5.1. - Schedule A businesses.

(a)

The following are types of businesses that are 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.

(b)

The following are additional types of businesses that are exempt from paying town 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 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 privilege license taxes for this aspect of the business.

(c)

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 (1) aspect of their business but have to pay the tax for another aspect of their business.

(Ord. No. 2001-04-09/O5, § I; Ord. No. 2005-09-26/O-6)

Sec. 10-5.2. - Schedule B businesses.

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 sections 10-151 through 10-203.

(Ord. No. 2001-04-09/O5, § I)

Sec. 10-5.3. - Schedule C businesses.

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.

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 sections 10-151 through 10-203.

(Ord. No. 2001-04-09/O5, § I)

Sec. 10-5.4. - Schedule D businesses.

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

(Ord. No. 2001-04-09/O5, § I; Ord. No. 2005-06-27/O-7.1, § 1; Ord. No. 2005-09-26/O-6, 2)

Sec. 10-5.5. - Computation of tax based on gross receipts.

(a)

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.

(b)

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.

(c)

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.

(d)

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.

(e)

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.

(f)

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.

(Ord. No. 2001-04-09/O-5, § I)

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.

(Comp. 1961, p. 37, § 3; Ord. No. 2001-04-09, § I)

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.

(Comp. 1961, p. 37, § 5; Ord. No. 2001-04-09, § I)

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.

(Comp. 1961, p. 37, § 6; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09, § I)

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 tax collector. Such application shall be signed either by the applicant or by his agent.

(Comp. 1961, p. 37, § 9; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09, § I)

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.

(Comp. 1961, p. 37, § 10; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

Sec. 10-11. - Compliance with conditions precedent required for license issuance.

The town revenue collector shall not issue any license when the application therefor 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 therefor 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.

(Comp. 1961, p. 37, § 11; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

Sec. 10-12. - License term, expiration; proration of fee.

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 (½) the tax prescribed, except where otherwise specifically provided for.

(Comp. 1961, p. 37, § 4; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

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 1, then the licensee shall be required to pay one-half (½) the tax prescribed, except where otherwise specifically provided for.

(Ord. No. 2001-04-09/O-5, § I)

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.

(Comp. 1961, p. 37, § 7; Ord. No. 2001-04-09/O-5, § I)

Sec. 10-14. - Transferability of license.

All licenses granted under this chapter shall be a personal privilege and shall not be transferable.

(Comp. 1961, p. 37, § 2; Ord. No. 2001-04-09/O-5, § I)

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.

(Comp. 1961, p. 37, § 8; Ord. No. 2001-04-09/O-5, § I)

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 fee of one dollar ($1.00).

(Comp. 1961, p. 37, § 12; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

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.

(Comp. 1961, p. 37, § 13; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

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 wilfully 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 therefor 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 therefor.

(Comp. 1961, p. 37, § 14; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

Sec. 10-18.1. - Special provisions relating to licenses for establishments holding ABC permits.

(a)

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.

(b)

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.

(1)

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 fee.

(2)

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.

a.

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.

b.

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.

(c)

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.

(d)

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.

(e)

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.

(f)

Manager to establish administrative policies. The town manager shall establish any administrative policies and application forms necessary to implement this section.

(Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

State law reference— Local government may refuse to issue license, G.S. § 105-113.71(a).

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 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.

(Comp. 1961, p. 37, § 15; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

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.

(Comp. 1961, p. 37, § 17; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

Sec. 10-21. - Operating without a franchise or license unlawful.

(a)

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.

(b)

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.

(Comp. 1961, p. 37, § 20; Ord. No. 96-4-2/O-3, § 2; Ord. No. 2001-04-09/O-5, § I)

Sec. 10-22. - Reserved.

Editor's note—

Ord. No. 2001-04-09/O-5, § I, adopted Apr. 9, 2001, deleted § 10-22 in its entirety. Former § 10-22 pertained to enforcement of this article and derived from Ord. No. 96-4-2/O-3, § 2

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.

(Comp. 1961, p. 64, § 1; Ord. No. 2001-04-09/O-5, § I)

Cross reference— Animals and fowl, Ch. 4.

Sec. 10-24. - Shooting galleries prohibited.

No shooting galleries shall be allowed in the town.

(Comp. 1961, p. 82, § 1; Ord. No. 2001-04-09/O-5, § I)

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.

(Ord. No. 0-72-59, § 1, 12-18-72; Ord. No. 0-77-24, § 1, 4-25-77; Ord. No. 2001-04-09/O-5, § I)

Editor's note—

Ord. No. O-72-59, § 1, amended this Code by adding provisions designated as § 10-80 which provisions were redesignated by the editors as § 10-25 inasmuch as Ord. No. O-72-42 had already added provisions designated § 10-80

Cross reference— Community antenna television system, § 10-80 et seq.

Secs. 10-26—10-34. - Reserved.