Legislation # 07-0066 Enactment Number none
Type Ordinance - Coded Effective Date none
Introduction Date 2/14/2007
Title AN ORDINANCE TO AMEND CHAPTER 18.1, OF THE CODE OF THE CITY OF HAMPTON, VIRGINIA, ENTITLED “LICENSES.”
 
Legislation History 07-0066
DateNotice Of ActionDescription
2/14/2007 Moved to approve consent agenda items 1 through 3 on first and final reading.
2/14/2007 Moved to waive the second reading on consent agenda items 1 through 3.
2/2/2007 Received By Clerk's Office
 
View Attachments 07-0066
FileTypeSizeDescription
Chapter 18 1 - Licenses - REDLINE - January 29 2007 (2).doc Other 254K Chapter 18.1 - Licenses - Redline Version
 
Legislation Text 07-0066

 

City of Hampton, Virginia

Ordinance - Coded

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 07-0066

 

Enactment Number: -

 

AN ORDINANCE TO AMEND CHAPTER 18.1, OF THE CODE OF THE CITY OF HAMPTON, VIRGINIA, ENTITLED LICENSES.

 

Chapter 18.1

 

LICENSES

 

Article I. In General

Sec. 18.1-1. Overriding conflicting ordinances.

Sec. 18.1-2. Adoption of state law and guidelines.

Sec. 18.1-3. Definitions.

Sec. 18.1-4. License requirements; due dates; limitations and extensions.

Sec. 18.1-5. General duties of commissioner of the revenue under chapter.

Sec. 18.1-6. Exemptions from chapter.

Sec. 18.1-7. Chapter does not affect other taxes.

Sec. 18.1-8. Situs of gross receipts.

Sec. 18.1-9. Calculation of gross receipts for tax purposes.

Sec. 18.1-10. Exclusions and deductions from gross receipts.

Sec. 18.1-11. Penalties and interest.

Sec. 18.1-12. Prerequisites to validity.

Sec. 18.1-13. Display of license, tag or sign; inspection of licensee's premises.

Sec. 18.1-14. Transfer of license.

Sec. 18.1-15. Estimates for ascertaining tax for beginners or those in business for only part of preceding year.

Sec. 18.1-16. Record-keeping and audits.

Sec. 18.1-17. Appeals and rulings.

Sec. 18.1-18. Proration of license taxes.

Sec. 18.1-19. Transitional provisions.

Secs. 18.1-20--18.1-30. Reserved.

 

Article II. Classifications of Business

 

Division 1. Generally

Sec. 18.1-31. Rates for license tax and license fee.

Sec. 18.1-32. Alcoholic beverages--Generally.

Sec. 18.1-33. Same--Mixed beverages.

Sec. 18.1-34. Same--Exemptions from sections 18.1-32 and 18.1-33.

Sec. 18.1-35. Certain public service corporations.

Sec. 18.1-36. Direct sellers.

Sec. 18.1-37. Financial, real estate and professional services.

Sec. 18.1-38. Fortunetellers, clairvoyants, etc.

Sec. 18.1-39. Marinas.

Sec. 18.1-40. Pawnbrokers.

Sec. 18.1-41. Photography and related activities.

Sec. 18.1-42. Principal contractors receiving identifiable federal appropriations for research and development services.

Sec. 18.1-43. Repair, personal, business and other services; other businesses.

Sec. 18.1-44. Savings and loan associations and credit unions.

Sec. 18.1-45. Short-term rental business.

Secs. 18.1-46--18.1-74. Reserved.

 

Division 2. Amusements Generally

Sec. 18.1-75. Generally.

Sec. 18.1-76. Amusement parks.

Sec. 18.1-77. Carnivals, circuses, animal shows, etc.

Sec. 18.1-78. Dance halls.

Sec. 18.1-79. Theatrical performances.

Secs. 18.1-80--18.1-99. Reserved.

 

Division 3. Coin-Operated Machines

Sec. 18.1-100. Definitions.

Sec. 18.1-101. Tax on amusement machine operators.

Sec. 18.1-102. Tax on receipts from vending machines.

Sec. 18.1-103. Registration and bond of persons licensed under division.

Sec. 18.1-104. Filing of list of machine locations.

Sec. 18.1-105. Display of information on machines.

Sec. 18.1-106. Division does not permit illegal machines.

Secs. 18.1-107--18.1-114. Reserved.

 

Division 4. Contractors

Sec. 18.1-115. Contractors generally.

Sec. 18.1-116. License tax.

Secs. 18.1-117--18.1-129. Reserved.

 

Division 5. Peddlers and Itinerant Merchants

Sec. 18.1-130. Definition; application generally.

Sec. 18.1-131. Tax; limitations.

Sec. 18.1-132. Peddlers at wholesale.

Sec. 18.1-133. Exemption for certain peddlers, itinerant merchants and peddlers at wholesale.

Sec. 18.1-134. License tags.

Sec. 18.1-135. Other requirements.

Secs. 18.1-136--18.1-149. Reserved.

 

Division 6. Retail, Wholesale and Commission Merchants

Sec. 18.1-150. License tax--Retail merchant.

Sec. 18.1-151. Same--Wholesale merchant.

Sec. 18.1-152. Same--Commission merchant.

Sec. 18.1-153. Application of tax to caterers.

Sec. 18.1-154. Application of tax to promotional sales by financial institutions.

Sec. 18.1-155. Tax when merchant goes out of business after close of license year.

Sec. 18.1-156. Motor vehicle dealers; alternate method of payment of business license tax.

Sec. 18.1-157. Reserved.

Sec. 18.1-158. Tax not applicable to storage of goods in public warehouses.

Sec. 18.1-159. Dealers in precious metals.

 

ARTICLE I.

 

IN GENERAL

 

Sec. 18.1-1. Overriding conflicting ordinances.

 

Except as may be otherwise provided by the laws of the Commonwealth of Virginia, and the Charter of the City of Hampton, and notwithstanding any other current ordinances or resolutions enacted by this governing body, whether or not compiled in the Code of the City of Hampton, to the extent of any conflict, the following provisions shall be applicable to the levy, assessment, and collection of licenses required and taxes imposed on businesses, trades, professions and callings and upon the persons, firms and corporations engaged therein within this city.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-2. Adoption of state law and guidelines.

 

(a) As to all questions in regard to the duty and conduct of officers of the city on collecting and enforcing the taxes imposed by this chapter and in regard to questions of construction, and for definitions of terms used in this chapter and the rules and regulations applicable to putting the same in operation, reference is hereby made to the laws of the state for the assessment, levy and the collection of taxes for the current year, or to so much thereof as is applicable to this chapter and is not inconsistent with it and the general ordinances of the city. For the conduct and guidance of the officers of the city and other parties affected by this chapter and for fixing their powers, rights, duties and obligations, the provisions of such laws, so far as applicable, are hereby adopted, without being specifically herein quoted.

 

(b) For purposes of determining the proper category within which to place a business, profession or occupation in determining tax liability, the commissioner of the revenue shall utilize the current edition of the "Guidelines for Business, Professional and Occupational License Tax," as published by the Commonwealth of Virginia, Department of Taxation, or successor document. Those businesses, professions and occupations for which no guidance is available shall be taxed in accordance with this chapter unless specifically exempted from taxation by federal or state law or by this chapter.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3701.

 

Sec. 18.1-3. Definitions.

 

For the purposes of this chapter, unless otherwise required by the context:

 

Affiliated group means:

 

(1) One or more chains of corporations subject to inclusion connected through stock ownership with a common parent corporation which is a corporation subject to inclusion if:

 

a. Stock possessing at least eighty (80) percent of the voting power of all classes of stock and at least eighty (80) percent of each class of the nonvoting stock of each of the corporations subject to inclusion, except the common parent corporation, is owned directly by one or more of the other corporations subject to inclusion; and

 

b. The common parent corporation directly owns stock possessing at least eighty (80) percent of the voting power of all classes of stock and at least eighty (80) percent of each class of the nonvoting stock of at least one of the other subject to inclusion corporations. As used in this subdivision, the term "stock" does not include nonvoting stock which is limited and preferred as to dividends. The term "corporation subject to inclusion" means any corporation within the affiliated group irrespective of the state or country of its incorporation; and the term "receipts" includes gross receipts and gross income.

 

(2) Two (2) or more corporations if five (5) or fewer persons who are individuals, estates or trusts own stock possessing:

 

a. At least eighty (80) percent of the total combined voting power of all classes of stock entitled to vote or at least eighty (80) percent of the total value of shares of all classes of the stock of each corporation, and

 

b. More than fifty (50) percent of the total combined voting power of all classes of stock entitled to vote or more than fifty (50) percent of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each such person only to the extent such stock ownership is identical with respect to each such corporation.

 

When one or more of the corporations subject to inclusion, including the common parent corporation is a non stock corporation, the term "stock" as used in this subdivision shall refer to the non stock corporation membership or membership voting rights, as is appropriate to the context.

 

(3) Two or more entities if such entities satisfy the requirements in subdivision (1) or (2) of this definition as if they were corporations and the ownership interests therein were stock.

 

Assessment: A determination as to the proper rate of tax, the measure to which the tax rate is applied, and ultimately the amount of tax, including additional or omitted tax, that is due. An assessment shall include a written assessment made pursuant to notice by the assessing official or a self-assessment made by a taxpayer upon the filing of a return or otherwise not pursuant to notice. Assessments shall be deemed made by an assessing official when a written notice of assessment is delivered to the taxpayer by the assessing official or an employee of the assessing official, or mailed to the taxpayer at his last known address. Self-assessments shall be deemed made when a return is filed, or if no return is required, when the tax is paid. A return filed or tax paid before the last day prescribed by ordinance for the filing or payment thereof shall be deemed to be filed or paid on the last day specified for the filing of a return or the payment of tax, as the case may be.

 

Assessor and assessing official: The City of Hampton Commissioner of the Revenue.

 

Base year: Except for contractors subject to the provisions of Virginia Code section 58.1-3715, the preceding year's gross receipts for either the fiscal year or the calendar year used by the business; provided, that the year employed shall also coincide with the year used for federal and state income tax purposes.

 

Broker: An agent of a buyer or a seller who buys or sells stocks, bonds, commodities, or services, usually on a commission basis.

 

Business: A course of dealing which requires the time, attention and labor of the person so engaged for the purpose of earning a livelihood or profit. It implies a continuous and regular course of dealing, rather than an irregular or isolated transaction. A person may be engaged in more than one business. The following acts shall create a rebuttable presumption that a person is engaged in a business: (i) advertising or otherwise holding oneself out to the public as being engaged in a particular business; or (ii) filing tax returns, schedules and documents that are required only of persons engaged in a trade or business.

 

Charitable nonprofit organization: An organization which is described in Internal Revenue Code section 501(c)(3) and to which contributions are deductible by the contributor under Internal Revenue Code section 170, except that educational institutions shall be limited to schools, colleges and other similar institutions of learning.

 

Commission merchant: Any person engaged in the business of selling merchandise on commission by sample, circular, or catalogue for a regularly established retailer, who has no stock or inventory under his control other than floor samples held for demonstration or sale and owned by the principal retailer.

 

Commissioner: The City of Hampton Commissioner of the Revenue.

 

Commodity: Staples such as wool, cotton, etc., which are traded on a commodity exchange and on which there is trading in futures.

 

Contractor shall have the meaning prescribed in section 58.1-3714(D) of the Code of Virginia, as amended, whether such work is done or offered to be done by day labor, general contract or subcontract.

 

Dealer, for purposes of this chapter shall mean any person, other than a motor vehicle dealer, engaged in the business of buying and selling securities for his own account, but does not include a bank, or any person insofar as he buys or sells securities for his own account, either individually or in some fiduciary capacity, but not as part of a regular business.

 

Definite place of business: An office or a location at which occurs a regular and continuous course of dealing for thirty (30) consecutive days or more. A definite place of business for a person engaged in business may include a location leased or otherwise obtained from another person on a temporary or seasonal basis and real property leased to another. A person's residence shall be deemed to be a definite place of business if there is no definite place of business maintained elsewhere and the person is not subject to licensure as a peddler or itinerant merchant.

 

Direct seller: Any person who:

 

(1) Engages in the trade or business of selling or soliciting the sale of consumer products primarily in private residences and maintains no public location for the conduct of such business; and

 

(2) Receives remuneration for such activities, with substantially all of such remuneration being directly related to sales or other sales-oriented services, rather than to the number of hours worked; and

 

(3) Performs such activities pursuant to a written contract between such person and the person for whom the activities are performed and such contract provides that such person will not be treated as an employee with respect to such activities for federal tax purposes.

 

Financial services: The buying, selling, handling, managing, investing and providing of advice regarding money, credit, securities or other investments and shall include the service for compensation by a credit agency, an investment company, a broker or dealer in securities and commodities or a security or commodity exchange, unless such service is otherwise provided for in this chapter.

 

Gems: Any item containing precious or semiprecious stones customarily used in jewelry.

 

Gross receipts: The whole, entire, total receipts attributable to the licensed privilege, without deduction, except as may be limited by the provisions of chapter 37 of title 58.1 of the Code of Virginia, 1950 (Code of Virginia, 58.1-3700 et seq.), as amended, and this chapter. However, the term "gross receipts" shall not include any amount paid to the United States, the commonwealth or any county, city or town for the Virginia retail sales or use tax, for any local sales tax or any local excise tax on cigarettes or for any federal or state excise taxes on motor fuels.

 

Hotels, motels, boardinghouses and similar establishments applies to those establishments when the number of bedrooms provided for transient guests shall be three (3) or more or, in the case of a boardinghouse, unless the number of boarders at any time shall be more than five (5).

 

License year: The calendar year for which a license is issued for the privilege of engaging in business.

 

Motor vehicle dealer shall have the same meaning as defined in section 46.2-1500 of the Code of Virginia, 1950, as amended.

 

Person: An individual, or a form of organization for the conduct of business including, but not limited to, companies, corporations, partnerships, etc.

 

Personal services: Rendering for compensation any repair, personal, business or other services not specifically classified as "financial, real estate or professional service" under this ordinance, or rendered in any other business or occupation not specifically classified in this ordinance unless exempted from local license tax by title 58.1 of the Code of Virginia, 1950, as amended.

 

Precious metals: Any item except coins, composed in whole or in part, in gold, silver, platinum or platinum alloys.

 

Professional services: Services performed by architects, attorneys-at-law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations, and no others, as the Virginia Department of Taxation may list in the business, professional, occupational license (BPOL) guidelines promulgated pursuant to Virginia Code section 58.1-3701. The department shall identify and list each occupation or vocation in which a professed knowledge of some department of science or learning, gained by a prolonged course of specialized instruction and study is used in its practical application to the affairs of others, either advising, guiding, or teaching them, and in serving their interests or welfare in the practice of an art or science founded on it. The word "profession" implies attainments in professional knowledge as distinguished from mere skill, and the application of knowledge to uses for others rather than for personal profit.

 

Purchases: All goods, wares and merchandise received for sale at each definite place of business of a wholesale merchant. The term shall also include the cost of manufacture of all such goods, wares and merchandise manufactured by any wholesaler or wholesale merchant and sold or offered for sale as merchandise. Such merchant may elect to report the gross receipts from the sale of manufactured goods, wares and merchandise if it cannot determine or chooses not to disclose the cost of manufacture.

 

Real estate services: Providing a service with respect to the purchase, sale, lease, rental, or appraisal of real property.

 

Retailer or retail merchant: Any person or merchant who sells goods, wares and merchandise for use or consumption by the purchaser or for any purpose other than resale by the purchaser, but does not include sales at wholesale to institutional, commercial, industrial and governmental users.

 

Security, for purposes of this chapter, shall have the same meaning as in the Securities Act (section 13.1-501 et seq.) of the Code of Virginia, 1950, as amended, or in similar laws of the United States regulating the sale of securities.

 

Services: Things purchased by a customer which do not have physical characteristics, or which are not goods, wares, or merchandise.

 

Wholesaler or wholesale merchant: Any person or merchant who sells wares and merchandise for resale by the purchaser, including sales when the goods, wares and merchandise will be incorporated into goods and services for sale, and also includes sales to institutional, commercial, industrial and governmental users which because of the quantity, price, or other terms indicate that they are consistent with sales at wholesale.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-4. License requirements; due dates; limitations and extensions.

 

(a) License requirements:

 

(1) This chapter is in compliance with Virginia Code section 58.1-3703.1, which requires the business license ordinance have substantially similar provisions.

 

(2) Every person shall apply for a license for each business or profession when engaging in a business in this city if (i) such person maintains a definite place of business in this city; (ii) such person does not maintain a definite office anywhere, but does maintain an abode in this city, which abode, for the purposes of this chapter, shall be deemed a definite place of business; (iii) there is no definite place of business in this city but the person operates amusement machines or is engaged in business as an itinerant merchant, peddler, carnival, circus as specified in Virginia Code sections 58.1-3717, 58.1-3718, or 58.1-3728, respectively; or is engaged in business as a contractor subject to Virginia Code section 58.1-3715, or public service corporation subject to Virginia Code section 58.1-3731.

 

(3) A separate license shall be required for each definite place of business and for each business. A person engaged in two (2) or more businesses or professions carried on at the same place of business may elect to obtain one license for all such businesses and professions if all of the following criteria are satisfied: (i) each business or profession is licensable at the location and has satisfied any requirements imposed by state law or other provisions of the ordinances of this city; (ii) all of the businesses or professions are subject to the same tax rate, or, if subject to different tax rates, the licensee agrees to be taxed on all businesses and professions at the highest rate; (iii) the taxpayer agrees to supply such information as the assessor may require concerning the nature of the several businesses and their gross receipts; (iv) if the business is a motor vehicle dealer who does not elect to use the alternate method as provided in article II of this chapter.

 

(4) Any person doing business at more than one place of business shall be required to take out a separate license for each such place of business. Each such place of business shall constitute a separate and distinct place of business requiring the payment of a license tax as provided for under this chapter.

 

(b) Due dates:

 

(1) Each person subject to a license tax shall apply for a license prior to beginning business if he was not subject to licensing in this city on or before January 1 of the license year, or no later than March 1 of the current license year if he had been issued a license for the preceding license year. The application shall be on forms prescribed by the commissioner of the revenue.

 

(2) All license taxes imposed by this chapter, except as otherwise herein provided, shall be deemed to be due on the date of the beginning of the business, employment or profession. Any person prosecuting any licensable business, employment or profession on or before the first day of January of any year shall file the license application with the commissioner of the revenue on or before March 1 of such year and the license tax shall be paid to the city treasurer, as collector of city taxes and levies, on or before the first day of March, except as otherwise herein provided. Any person beginning a business, employment or profession after the first day of January of any year, unless otherwise stated, shall first file with the commissioner of the revenue an application for a license covering such business, employment or profession and the license tax shall be paid to the city treasurer, as collector of city taxes and levies, on or before the expiration of one month from the date of beginning business or the first day of March, whichever is later. The tax shall be paid with the application in the case of any license not based on gross receipts.

 

(3) The assessor may grant an extension of time, not to exceed ninety (90) days, in which to file an application for a license, for reasonable cause. The extension may be conditioned upon the timely payment of a reasonable estimate of the appropriate tax, subject to adjustment to the correct tax at the end of the extension, together with interest from the due date until the date paid and, if the estimate submitted with the extension is found to be unreasonable under the circumstances, with a penalty of ten (10) percent of the portion paid after the due date.

 

(4) No such license shall be issued until such applicant has produced satisfactory evidence that all delinquent business license, business personal property, meals, transient occupancy severance and admissions taxes owed to the city have been paid which have been properly assessed against the applicant by the city.

 

(5) A license issued under this chapter shall not be valid or effective until the tax required by this chapter has been paid to the city treasurer, as collector of city taxes and levies, and such payment shall be shown on the license. If the business in question is one for which a license can be granted only on the certificate of a court or other officer, such license shall not be valid or effective until such certificate has been obtained.

 

(c) Limitations and extensions:

 

(1) Where, before the expiration of the time prescribed for the assessment of any license tax imposed pursuant to this chapter, both the assessor and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

 

(2) Notwithstanding Virginia Code section 58.1-3903, the assessor shall assess the local license tax omitted because of fraud or failure to apply for a license for the current license year and the six (6) preceding license years.

 

(3) The period for collecting any local license tax shall not expire prior to the period specified in Virginia Code section 58.1-3940, two (2) years after the date of assessment if the period for assessment has been extended pursuant to this subdivision of the chapter, two (2) years after the final determination of an appeal for which collection has been stayed pursuant to section 18.1-17(b) or (d) of this chapter, or two (2) years after the final decision in a court application pursuant to Virginia Code section 58.1-3984 or similar law for which collection has been stayed, whichever is later.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-5. General duties of commissioner of the revenue under chapter.

 

(a) It shall be the duty of the commissioner of the revenue to require all persons prosecuting any business, employment or profession for which a license is required by this chapter to procure such license and pay the license tax therefor. Should any license tax not be paid, the commissioner of the revenue shall prosecute for such violation.

 

(b) The commissioner of the revenue, in performing the duties of such office, shall have authority to require any person or entity doing business in the city to furnish information concerning subcontractors to whom any part of a contract is sublet. The information shall include, but is not limited to, a list of the names and addresses of each subcontractor, and the amount of each subcontract.

 

(c) The commissioner of the revenue is authorized to determine the construction or application of any doubtful or disputed provisions of this chapter. Such determination shall be subject to judicial review and the appeal process promulgated by the Virginia Department of Taxation, as provided by law.

 

(d) In every case in which a license tax is imposed by the state on any business, employment or profession not specifically mentioned in this chapter, a city license tax equal to the amount of the state tax is hereby imposed for the privilege of conducting such business, employment or profession in the city.

 

(e) Any taxpayer may request a written ruling regarding the application of the tax to a specific situation from the assessor. Any person requesting such a ruling must provide all the relevant facts for the situation and may present a rationale for the basis of an interpretation of the law most favorable to the taxpayer. Any misrepresentation or change in the applicable law or the factual situation as presented in the ruling request shall invalidate any such ruling issued. A written ruling may be revoked or amended prospectively if (i) there is a change in the law, a court decision, or (ii) the assessor notifies the taxpayer of a change in the policy or interpretation upon which the ruling was based. However any person who acts on a written ruling which later becomes invalid shall be deemed to have acted in good faith during the period in which such ruling was in effect.

 

(f) As one of the means of ascertaining the amount of any license tax due under this chapter, the commissioner of the revenue, any duly sworn deputy, or attorney for the commissioner of the revenue, may propound interrogatories to an applicant for a license and use such other evidence as he may procure. Such interrogatories shall be answered under oath. It shall be unlawful for any applicant to refuse to answer such interrogatories under oath.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-6. Exemptions from chapter.

 

All exhibitions, performances or events open to the public and occurring on the premises or within a city-owned permanent coliseum, arena or auditorium, shall be exempt from any license required pursuant to this chapter.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3729.

 

Sec. 18.1-7. Chapter does not affect other taxes.

 

Nothing contained in this chapter shall be construed to repeal any tax imposed by any provision of this Code or other ordinance of the city upon motor vehicles, persons, property, admissions, charges for utility services or any subject not herein mentioned unless otherwise specified.

(Ord. No. 1172, 10-9-96)

Cross References: Taxation generally, Ch. 37.

 

Sec. 18.1-8. Situs of gross receipts.

 

(a) General rule. Whenever the tax imposed by this chapter is measured by gross receipts, the gross receipts included in the taxable measure shall be only those gross receipts attributed to the exercise of a privilege subject to licensure at a definite place of business within this city. In the case of activities conducted outside of a definite place of business, such as during a visit to a customer location, the gross receipts shall be attributed to the definite place of business from which such activities are initiated, directed, or controlled. The situs of gross receipts for different classifications of business shall be attributed to one or more definite places of business or offices as follows:

 

(1) The gross receipts of a contractor shall be attributed to the definite place of business at which his services are performed, or if his services are not performed at any definite place of business, then the definite place of business from which his services are directed or controlled, unless the contractor is subject to the provisions of Virginia Code section 58.1-3715.

 

(2) The gross receipts of a retailer or wholesaler shall be attributed to the definite place of business at which sales solicitation activities occur, or if sales solicitation activities do not occur at any definite place of business, then the definite place of business from which sales solicitation activities are directed or controlled; however, a wholesaler or distribution house subject to a license tax measured by purchases shall determine the situs of its purchases by the definite place of business at which or from which deliveries of the purchased goods, wares and merchandise are made to customers. Any wholesaler who is subject to license tax in two (2) or more localities and who is subject to multiple taxation because the localities use different measures, may apply to the Department of Taxation for a determination as to the proper measure of purchases and gross receipts subject to license tax in each locality;

 

(3) The gross receipts of a business renting tangible personal property shall be attributed to the definite place of business from which the tangible personal property is rented or, if the property is not rented from any definite place of business, then the to definite place of business at which the rental of such property is managed; and

 

(4) The gross receipts from the performance of services shall be attributed to the definite place of business at which the services are performed or, if not performed at any definite place of business, then the definite place of business from which the services are directed or controlled.

 

(b) Apportionment. If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts should be attributed under the general rule, the gross receipts of the business shall be apportioned between the definite places of businesses on the basis of payroll. Gross receipts shall not be apportioned to a definite place of business unless some activities under the applicable general rule occurred at, or were controlled from, such definite place of business. Gross receipts attributable to a definite place of business in another jurisdiction shall not be attributed to this city solely because the other jurisdiction does not impose a tax on the gross receipts attributable to the definite place of business in such other jurisdiction.

 

(c) Agreements. The assessor may enter into agreements with any other political subdivision of Virginia concerning the manner in which gross receipts shall be apportioned among definite places of business. However, the sum of the gross receipts apportioned by the agreement shall not exceed the total gross receipts attributable to all of the definite places of business affected by the agreement. Upon being notified by a taxpayer that its method of attributing gross receipts is fundamentally inconsistent with the method of one or more political subdivisions in which the taxpayer is licensed to engage in business and that the difference has, or is likely to, result in taxes on more than one hundred (100) percent of its gross receipts from all locations in the affected jurisdictions, the assessor shall make a good faith effort to reach an apportionment agreement with the other political subdivisions involved. If an agreement cannot be reached, either the assessor or taxpayer may seek an advisory opinion from the Department of Taxation pursuant to Code of Virginia, 58.1-3701; notice of the request shall be given to the other party. Notwithstanding the provisions of Code of Virginia, 58.1-3993, when a taxpayer has demonstrated to a court that two or more political subdivisions of Virginia have assessed taxes on gross receipts that may create a double assessment within the meaning of Code of Virginia, 58.1-3986, the court shall enter such orders pending resolution of the litigation as may be necessary to ensure that the taxpayer is not required to pay multiple assessments even though it is not then known which assessment is correct and which is erroneous.
(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-9. Calculation of gross receipts for tax purposes.

 

The calculation of gross receipts for license tax purposes under this chapter shall be on either a cash or accrual basis; provided, however, that the basis used shall coincide with the system of accounts used by the taxpayer for federal and state income tax purposes. The preceding year's gross receipts may be either the fiscal year or the calendar year used by the business; provided, that the year employed shall also coincide with the year used for federal and state income tax purposes.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-10. Exclusions and deductions from gross receipts.

 

(a) Gross receipts for license tax purposes shall not include any amount not derived from the exercise of the licensed privilege to engage in a business or profession in the ordinary course of business or profession.

 

(b) All provisions for exclusions and deductions from gross receipts as set forth in Virginia State Code section 58.1-3732.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-11. Penalties and interest.

 

(a) Penalties:

 

(1) A penalty of ten (10) percent of the tax may be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due date. Only the late filing penalty shall be imposed by the assessing official if both the application and payment are late; however, both penalties may be assessed if the assessing official determines that the taxpayer has a history of noncompliance. In the case of an assessment of additional tax made by the assessing official, if the application and, if applicable, the return were made in good faith and the understatement of the tax was not due to any fraud, reckless or intentional disregard of the law by the taxpayer, there shall be no late payment penalty assessed with the additional tax. If any assessment of tax by the assessing official is not paid within thirty (30) days the treasurer may impose a ten (10) percent late payment penalty. If the failure to file or pay was not the fault of the taxpayer, the penalties shall not be imposed, or if imposed shall be abated by the official who assessed them. In order to demonstrate lack of fault, the taxpayer must show that he acted responsibly and that the failure was due to events beyond his control.

 

(2) "Acted responsibly" means that: (i) the taxpayer exercised the level of reasonable care that a prudent person would exercise under the circumstances in determining the filing obligations for the business and (ii) the taxpayer undertook significant steps to avoid or mitigate the failure, such as requesting appropriate extensions (where applicable), attempting to prevent a foreseeable impediment, acting to remove an impediment once it occurred, and promptly rectifying a failure once the impediment was removed or the failure discovered.

 

(3) "Events beyond the taxpayer's control" include, but are not limited to, the unavailability of records due to fire or other casualty; the unavoidable absence (e.g., due to death or serious illness) of the person with the sole responsibility for tax compliance; or the taxpayer's reasonable reliance in good faith upon erroneous written information from the assessing official who was aware of the relevant facts relating to the taxpayer's business when he provided the erroneous information.

 

(4) Unless otherwise specifically provided by law, a violation of any provision of this chapter shall constitute a Class 1 misdemeanor. The conviction of any person or entity for a violation of any provision of this chapter and the imposition of a penalty therefor shall not relieve such person from liability for any tax imposed upon him by this chapter.

 

(b) Interest:

 

(1) Interest shall be charged on the late payment of the tax from the due date until the date paid without regard to fault or other reason for the late payment. Whenever an assessment of additional or omitted tax by the assessing official is found to be erroneous, all interest and penalty charged and collected on the amount of the assessment found to be erroneous shall be refunded together with interest on the refund from the date of payment or the due date, whichever is later. Interest shall be paid on the refund of any business license tax from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at the same rate charged under Virginia Code section 58.1-3916.

 

(2) No interest shall accrue on an adjustment of estimated tax liability to actual liability at the conclusion of a base year. No interest shall be paid on a refund or charged on a late payment, provided the refund or the late payment is made not more than thirty (30) days from the date of the payment that created the refund or the due date of the tax, whichever is later.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3703.1.

 

Sec. 18.1-12. Prerequisites to validity.

 

(a) The commissioner of the revenue shall not issue a license for conducting any business, trade or occupation at a location where the conduct of same is prohibited by the zoning ordinance of the city.

 

(b) If the business in question is one for which a license can be granted only on the certificate of a court or other officer, such license shall not be valid or effective until such certificate has been obtained. This requirement shall include, but is not limited to, licenses issued to the following:

 

Bondsman;

 

Dealers in precious metals;

 

Private security services businesses and their employees;

 

Pawnbroker.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-13. Display of license, tag or sign; inspection of licensee's premises.

 

(a) Every person required to pay a license tax under the provisions of this chapter shall keep the license upon which such tax was paid in a convenient place and, whenever required to do so, shall exhibit the same to any police officer detailed or authorized to inspect licenses or to any authorized representative of the commissioner of the revenue.

 

(b) Every person required to obtain any license tag or sign under the provisions of this chapter shall keep the tag or sign in a convenient place and, whenever required to do so, shall exhibit such tag or sign to any police officer detailed or authorized to inspect such tag or sign or to any authorized representative of the commissioner of the revenue.

 

(c) Every person in charge of any premises where a business, occupation, profession or other activity required to be licensed under this article is conductive or practical shall permit any member of the police department, when detailed or authorized to make such inspections, and the license inspector to make a physical inspection of the entire premises, for the purpose of ascertaining license tax liability, at any time during regular business operation hours.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-14. Transfer of license.

 

(a) Licenses issued under this chapter shall be transferable, except where otherwise provided. In no case shall any transfer of the license be legal or valid until notice in writing of such transfer has been given to the commissioner of the revenue and he has approved such transfer in writing on the license. Such notice shall state the time of the transfer, the place of the business and the name of the person to whom transferred. The transfer of such license shall not be valid or effective until a service charge of one dollar ($1.00) has been paid by the licensee and receipt of such payment shall be shown on the certificate of transfer.

 

(b) Notwithstanding any other provision of this section, only the part of a license based on gross receipts that is in excess of gross receipts of the transfer or for that part of the year he has prosecuted business under such license shall be transferable. The person to whom such license is being transferred shall pay the additional estimated license tax to the end of the license year or an amount sufficient to make the minimum cost of the license as provided in this chapter, whichever is the greater.

 

(c) It shall be unlawful for any person to transfer or attempt to transfer any license contrary to the provisions of this section.

 

(d) The commissioner of the revenue shall keep a record of transfers made pursuant to this section.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-15. Estimates for ascertaining tax for beginners or those in business for only part of preceding year.

 

(a) For the purpose of ascertaining the tax to be paid by any person beginning a new business, employment or profession and whose license tax under this chapter is based on gross receipts, gross purchases, or gross commissions, the applicant for the license shall reasonably estimate the basis for measuring the license tax between the date of issuance of the license and the thirty-first of December following.

 

(b) The license tax of any person who was licensed at a definite place of business for only a part of the next preceding license year shall be computed for the then-current license year on the basis of a reasonable estimate of the amount of gross receipts or gross purchases which the licensee will make throughout the then-current license year; provided, however, that any commission merchant shall be licensed on the basis of gross commissions of the next preceding license year or any part thereof.

 

(c) Every underestimate under this section shall be subject to correction by the commissioner of the revenue, whose duty it shall be to assess such licensee with such additional taxes as may be found to be due after the close of the license year on the basis of gross receipts, gross purchases, or gross commissions. In case of an overestimate under this section, the commissioner of the revenue shall order a refund or credit in the amount of the overpaid tax on the license tax for the following year.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-16. Record-keeping and audits.

 

(a) Every person who is assessable with a local license tax shall keep sufficient records to enable the assessor to verify the correctness of the tax paid for the license years assessable and to enable the assessor to ascertain what is the correct amount of tax that was assessable for each of those years. All such records, books of accounts and other information shall be open to inspection and examination by the assessor in order to allow the assessor to establish whether a particular receipt is directly attributable to the taxable privilege exercised within this city. The assessor shall provide the taxpayer with the option to conduct the audit at the taxpayer's local business office, if the records are maintained there. In the event the records are maintained outside this city, copies of the appropriate books and records shall be sent to the assessor's office upon demand.

 

(b) Upon the filing of a report under this section, or in any case in which the commissioner of the revenue shall deem it advisable, the commissioner of the revenue shall investigate and ascertain whether the person filing a report or return has made a correct report or return and, to that end, the commissioner of the revenue may summon such person before him and require the production of any and all of his records, books and papers likely to throw any light upon the matter under investigation. The commissioner of the revenue may also make, or cause to be made, such other and further investigations, examinations and audits of the records, books and papers of such person as he shall deem proper, in order to determine accurately the proper report or return to be made by the person in question.

 

(c) All invoices, records and general books of account referred to in this section shall be open to inspection and examination, on the premises of the business, employment or profession in question, by the commissioner of the revenue, or any other officer of the city charged in any manner with the duty of assessing or collecting license taxes.

 

(d) If, upon an investigation pursuant to this section, it shall appear that the license basis or other matters pertinent to assessment were incorrectly reported or returned, the commissioner of the revenue shall assess the person in question with the proper license tax.

 

(e) Any person who shall fail to appear before the commissioner of the revenue and produce such records, books and papers, when duly summoned, or who shall refuse to permit the commissioner to make or cause to be made such other and further investigation and audit of such books and papers, shall be guilty of a Class 3 misdemeanor. Each day's refusal to furnish such access or information shall constitute a separate offense.

 

(f) If appropriate, the penalty provisions of Virginia Code section 18.1-11 of this chapter shall apply.

 

(g) The enforcement of the provisions of this ordinance are subject to the limitations of section 18.1-4 of this chapter.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3111.

 

Sec. 18.1-17. Administrative appeals to commissioner of the revenue or other assessing official.

 

(a) Definitions. For purposes of this article:

"Amount in dispute," when used with respect to taxes due or assessed, means the amount specifically identified in the administrative appeal or application for judicial review as disputed by the party filing such appeal or application.

"Appealable event" means an increase in the assessment of a local license tax payable by a taxpayer, the denial of a refund, or the assessment of a local license tax where none previously was assessed, arising out of the local assessing official's (i) examination of records, financial statements, books of account, or other information for the purpose of determining the correctness of an assessment; (ii) determination regarding the rate or classification applicable to the licensable business; (iii) assessment of a local license tax when no return has been filed by the taxpayer; or (iv) denial of an application for correction of erroneous assessment attendant to the filing of an amended application for license.

"Frivolous" means a finding, based on specific facts, that the party asserting the appeal is unlikely to prevail upon the merits because the appeal is (i) not well grounded in fact; (ii) not warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; (iii) interposed for an improper purpose, such as to harass, to cause unnecessary delay in the payment of tax or a refund, or to create needless cost from the litigation; or (iv) otherwise frivolous.

"Jeopardize by delay" means a finding, based on specific facts, that a taxpayer desires to (i) depart quickly from the locality; (ii) remove his property therefrom; (iii) conceal himself or his property; or (iv) do any other act tending to prejudice, or to render wholly or partially ineffectual, proceedings to collect the tax for the period in question.

(b) Filing and contents of administrative appeal. Any person assessed with a local license tax as a result of an appealable event as defined in this section may file an administrative appeal of the assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of the appealable event, whichever is later, with the commissioner of the revenue or other local assessing official. The appeal must be filed in good faith and sufficiently identify the taxpayer, the tax periods covered by the challenged assessments, the amount in dispute, the remedy sought, each alleged error in the assessment, the grounds upon which the taxpayer relies, and any other facts relevant to the taxpayer's contention. The assessor may hold a conference with the taxpayer if requested by the taxpayer, or require submission of additional information and documents, an audit or further audit, or other evidence deemed necessary for a proper and equitable determination of the appeal. The assessment placed at issue in the appeal shall be deemed prima facie correct. The assessor shall undertake a full review of the taxpayer's claims and issue a written determination to the taxpayer setting forth the facts and arguments in support of his decision.


(c) Notice of right of appeal and procedures. Every assessment made by a commissioner of the revenue or other assessing official pursuant to an appealable event shall include or be accompanied by a written explanation of the taxpayer's right to file an administrative appeal and the specific procedures to be followed in the jurisdiction, the name and address to which the appeal should be directed, an explanation of the required content of the appeal, and the deadline for filing the appeal.

(d) Suspension of collection activity during appeal. Provided a timely and complete administrative appeal is filed, collection activity with respect to the amount in dispute shall be suspended until a final determination is issued by the commissioner of the revenue or other assessing official, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official that the taxpayer has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal is frivolous as defined in this section. Interest shall accrue in accordance with the provisions of section 18.1-11, but no further penalty shall be imposed while collection action is suspended.

(e) Procedure in event of nondecision. Any taxpayer whose administrative appeal to the commissioner of the revenue or other assessing official pursuant to the provisions of subdivision 5 of this subsection has been pending for more than one year without the issuance of a final determination may, upon not less than 30 days' written notice to the commissioner of the revenue or other assessing official, elect to treat the appeal as denied and appeal the assessment to the Tax Commissioner in accordance with the provisions of subdivision 6 of this subsection. The Tax Commissioner shall not consider an appeal filed pursuant to the provisions of this subsection if he finds that the absence of a final determination on the part of the commissioner of the revenue or other assessing official was caused by the willful failure or refusal of the taxpayer to provide information requested and reasonably needed by the commissioner or other assessing official to make his determination.

(Ord. No. 1172, 10-9-96)

State law references: Similar provisions, Code of Virginia, 58.1-3703.1.

 

Sec. 18.1-17.1. Administrative appeal to the Tax Commissioner.

(a) Any person assessed with a local license tax as a result of a determination, upon an administrative appeal to the commissioner of the revenue or other assessing official pursuant to section 18.1-17, that is adverse to the position asserted by the taxpayer in such appeal may appeal such assessment to the Tax Commissioner within 90 days of the date of the determination by the commissioner of the revenue or other assessing official. The appeal shall be in such form as the Tax Commissioner may prescribe and the taxpayer shall serve a copy of the appeal upon the commissioner of the revenue or other assessing official. The Tax Commissioner shall permit the commissioner of the revenue or other assessing official to participate in the proceedings, and shall issue a determination to the taxpayer within 90 days of receipt of the taxpayer's application, unless the taxpayer and the assessing official are notified that a longer period will be required. The appeal shall proceed in the same manner as an application pursuant to Code of Virginia, 58.1-1821, and the Tax Commissioner may issue an order correcting such assessment pursuant to Code of Virginia, 58.1-1822.

(b) Suspension of collection activity during appeal. On receipt of a notice of intent to file an appeal to the Tax Commissioner under subsection a of this section, collection activity with respect to the amount in dispute shall be suspended until a final determination is issued by the Tax Commissioner, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay as defined in this section; (ii) is advised by the commissioner of the revenue or other assessing official, or the Tax Commissioner, that the taxpayer has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue or other assessing official that the appeal is frivolous as defined in this section. Interest shall accrue in accordance with the provisions of section 18.1-11, but no further penalty shall be imposed while collection action is suspended. The requirement that collection activity be suspended shall cease unless an appeal pursuant to subsection a of this section is filed and served on the necessary parties within 30 days of the service of notice of intent to file such appeal.

(c) Implementation of determination of Tax Commissioner. Promptly upon receipt of the final determination of the Tax Commissioner with respect to an appeal pursuant to subsection a of this section, the commissioner of the revenue or other assessing official shall take those steps necessary to calculate the amount of tax owed by or refund due to the taxpayer consistent with the Tax Commissioner's determination and shall provide that information to the taxpayer and to the treasurer or other official responsible for collection in accordance with the provisions of this section.

(1) If the determination of the Tax Commissioner sets forth a specific amount of tax due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a bill to the taxpayer for such amount due, together with interest accrued and penalty, if any is authorized by this article, within 30 days of the date of the determination of the Tax Commissioner.

(2) If the determination of the Tax Commissioner sets forth a specific amount of refund due, the commissioner of the revenue or other assessing official shall certify the amount to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a payment to the taxpayer for such amount due, together with interest accrued pursuant to this article, within 30 days of the date of the determination of the Tax Commissioner.

(3) If the determination of the Tax Commissioner does not set forth a specific amount of tax due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment that will result in an obligation to pay a tax that has not previously been paid in full, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment, and provide the same to the taxpayer within 60 days of the date of the determination of the Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional information requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a bill to the taxpayer for the amount due, together with interest accrued and penalty, if any is authorized by this article, within 30 days of the date of the new assessment.

(4) If the determination of the Tax Commissioner does not set forth a specific amount of refund due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment that will result in an obligation on the part of the locality to make a refund of taxes previously paid, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment, and provide the same to the taxpayer within 60 days of the date of the determination of the Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional information requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a refund to the taxpayer for the amount of tax due, together with interest accrued, within 30 days of the date of the new assessment.
(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3703.1.

 

Sec. 18.1-18. Proration of license taxes.

 

(a) The commissioner of the revenue shall not impose a license tax based on gross receipts on a business, trade, profession, occupation or calling, or upon a person, firm or corporation for any fraction of a year during which such person, firm or corporation has permanently ceased to engage in such business, trade, profession, occupation or calling within the city.

 

(b) In the event a person, firm or corporation ceases to engage in a business, trade, profession, occupation or calling within the city during a year for which a license tax based on gross receipts has already been paid, the taxpayer shall be entitled upon application to a refund for that portion of the license tax already paid, prorated on a monthly basis so as to ensure that the licensed privilege is taxed only for that fraction of the year during which it is exercised within the city. The commissioner of the revenue may elect to remit any refunds in the ensuing fiscal year and may offset against such refund any amount of past-due taxes owed by the same taxpayer. In no event shall the commissioner of the revenue be required to refund any part of a flat fee or minimum flat tax.

 

(c) The commissioner of the revenue shall issue, to any person entitled to receive a refund under this section, a certificate showing such person to be entitled to a refund of the amount stated in such certificate; and the city treasurer shall indicate thereon whether such amount has been paid to the city for the license year in question. The director of finance shall, upon presentation of such certificate to him, cause to be paid to the person entitled to such refund the amount set forth in the certificate.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3710.

 

Sec. 18.1-19. Transitional provisions.

 

The provisions of this article relating to penalties, interest, and administrative and judicial review of an assessment shall be applicable to assessments made on and after January 1, 1997, even if for an earlier license year. The provisions relating to agreements extending the period for assessing tax shall be effective for agreements entered into, on and after July 1, 1996. The provisions permitting an assessment of license tax for up to six (6) preceding years in certain circumstances shall not be construed to permit the assessment of tax for a license year beginning before January 1, 1997.

(Ord. No. 1172, 10-9-96)

 

Secs. 18.1-20--18.1-30. Reserved.

 

ARTICLE II.

 

CLASSIFICATIONS OF BUSINESS

 

DIVISION 1.

 

GENERALLY

 

Sec. 18.1-31. Rates for license tax and license fee.

 

Every person required to purchase a business license by chapter 18.1 of the Code of the City of Hampton and chapter 37 of title 58.1 of the Code of Virginia (Code of Virginia, 58.1-3700 et seq.) shall pay the following license fees and taxes, as applicable, unless specifically provided otherwise by ordinance or other law:

(1) Every such person or business with gross receipts of one hundred thousand dollars ($100,000) or less shall pay an annual fee of thirty dollars ($30.00) for the issuance of a business license.

 

(2) Every such person or business with gross receipts of greater than one hundred thousand dollars ($100,000) during the preceding calendar year shall be assessed and required to pay an annual license tax on all gross receipts includible as provided by this chapter, at the rate set forth in this chapter for each different license classification, except as may be otherwise provided in sections 58.1-3712, 58.1-3712.1, 58.1-3713, 58.1-3716, 58.1-3717, 58.1-3719.1, 58.1-3727, 58.1-3731 of the Code of Virginia.

(Ord. No. 1172, 10-9-96; Ord. No. 1224, 7-15-98)

State Law References: Authority, Code of Virginia, 58.1-3703.

 

Sec. 18.1-32. Alcoholic beverages--Generally.

 

(a) Every person engaged in manufacturing, bottling or dispensing alcoholic beverages shall pay a license tax as follows:

 

(1) For each distiller's license, if more than five thousand (5,000) gallons of alcohol or spirits, or both, are manufactured during the license year, including bottling, the license tax shall be six hundred dollars ($600.00).

 

(2) For each winery license, if to manufacture not in excess of five thousand (5,000) gallons of wine during the license year, including bottling, the license tax shall be one hundred dollars ($100.00); and if to manufacture more than five thousand (5,000) gallons during such year, the license tax shall be six hundred dollars ($600.00).

 

(3) For each brewery license, including bottling, the license tax shall be six hundred dollars ($600.00).

 

(4) For each bottler's license, the license tax shall be four hundred dollars ($400.00).

 

(5) For each wholesale beer license, the license tax shall be two hundred fifty dollars ($250.00).

 

(6) For each wholesale wine distributor's license, the license tax shall be fifty dollars ($50.00).

 

(7) For each retail on-premise wine license, the license tax shall be twenty-five dollars ($25.00).

 

(8) For each retail on-premise beer license, the license tax shall be forty dollars ($40.00).

 

(9) For each retail off-premise wine and beer license, or wine or beer license, the license tax shall be sixty dollars ($60.00).

 

(10) For each retail on and off-premise wine and beer license, or beer license, the license tax shall be one hundred dollars ($100.00).

 

(b) The license tax for the retail sale of beer and wine may be prorated by taking one-twelfth ( 1/12) of the amount of such tax and then multiplied by the number of months in business during the current year.

 

(c) The licenses for which the taxes are set out in subsection (a) above shall be as respectively defined by the state Alcoholic Beverage Control Act (Code of Virginia, title 4.1). The terms "alcoholic beverage", "alcohol", "spirits", "beer", and "wine", wherever used in this section shall have the meanings respectively ascribed to them by such act.

 

(d) No license shall be issued pursuant to this section to any person, unless such person shall hold or shall secure simultaneously therewith the proper state license required by the Alcoholic Beverage Control Act. Such state license shall be exhibited to the commissioner of the revenue.

 

(e) Any license for which the license tax is set out in this section may be amended to show a change in the place of business within the city. Any such license may be transferred from one person to another, provided the person to whom it is transferred holds, at the same time, a similar license from the state alcoholic beverage control board.

(Ord. No. 1172, 10-9-96)

State Law References: Alcoholic Beverage Control Act, Code of Virginia, 4.1-100 et seq.; authority for above tax, Code of Virginia, 4.1-233.

 

Sec. 18.1-33. Same--Mixed beverages.

 

(a) There is hereby imposed upon persons holding mixed beverage restaurant licenses issued by the state for establishments located within the city a city license tax in the following amounts:

 

(1) Persons operating restaurants, including restaurants located on premises of and operated by hotels or motels:

a. Two hundred dollars ($200.00) per annum for each restaurant with a seating capacity at tables for up to one hundred (100) persons;

 

b. Three hundred fifty dollars ($350.00) per annum for each restaurant with a seating capacity at tables for more than one hundred (100) but not more than one hundred fifty (150) persons; and

 

c. Five hundred dollars ($500.00) per annum for each restaurant with a seating capacity at tables for more than one hundred fifty (150) persons.

 

(2) A private, nonprofit club operating a restaurant located on the premises of such club, three hundred fifty dollars ($350.00) per annum.

 

(b) No license the tax for which is prescribed in this section shall be issued unless the applicant shall display to the commissioner of the revenue a valid mixed beverage restaurant license issued to such applicant by the state alcoholic beverage control board.

 

(c) The tax on each license issued pursuant to this section shall be subject to proration taking one-twelfth (1/12) of the amount of such tax and then multiplied by the number of months in business during the current year.

 

(d) Nothing in this section shall be construed as exempting any licensee from any merchants' license tax, motel or hotel license tax, restaurant license tax or any other city tax whatsoever, and the tax levied and imposed by this section shall be in addition to all other taxes of every kind levied and imposed by any other section of this Code or by any other ordinance or law of this city.

 

(e) The commissioner of the revenue is hereby authorized and empowered to correct erroneous assessments made by him against any person, and to allow credit for license taxes paid by any licensee for any license which is subsequently merged or changed into another license during the same license year.

 

(f) No license shall be issued and no tax charged or collected for the privilege of selling and serving alcoholic beverages in (i) passenger trains, boats or airplanes and (ii) rooms designated by the Board of establishments of air carriers of passengers at airports in the city for on-premises consumption only.

(Ord. No. 1172, 10-9-96; Ord. No. 1251, 6-9-99)

State Law References: Authority for above tax, Code of Virginia, 4.1-233.

 

Sec. 18.1-34. Same--Exemptions from sections 18.1-32 and 18.1-33.

 

The commissioner of the revenue may exempt from the payment of the license tax imposed by sections 18.1-32 and 18.1-33 all dining rooms, restaurants, lunchrooms and clubrooms wherein the beverages referred to in such sections are sold for consumption both on and off the premises, if the dining rooms, restaurants, lunchrooms and clubrooms belong to and are operated by a benevolent, fraternal or charitable association and are used exclusively for lodge or fraternal purposes.

(Ord. No. 1172, 10-9-96; Ord. No. 1251, 6-9-99)

 

Sec. 18.1-34.1. Wholesale beer and wine merchants.

 

In ascertaining the liability of (i) a beer wholesaler to local merchants' license taxation under this article, and in computing the local wholesale merchants' license tax on such beer wholesaler, purchases of beer up to a stated amount shall be disregarded, which stated amount shall be the amount of beer purchases which would be necessary to produce a local wholesale merchants' license tax equal to the local wholesale beer license tax paid by such wholesaler and (ii) a wholesale wine licensee to local merchants' license taxation under this article, and in computing the local wholesale merchants' license tax on such wholesale wine licensee, purchases of wine up to a stated amount shall be disregarded, which stated amount shall be the amount of wine purchases which would be necessary to produce a local wholesale merchants' license tax equal to the local wholesale wine licensee license tax paid by such wholesale wine licensee.

State law references: Similar provisions, Code of Virginia, 4.1-233.

Sec. 18.1-35. Certain public service corporations.

 

In addition to any tax levied under Virginia Code section 58.1-2600 et seq., a license tax is required, on (i) telephone and telegraph companies, (ii) water companies and (iii) heat, light and power companies (except electric suppliers, gas utilities and gas suppliers as defined in Code of Virginia, 58.1-400.2 and pipeline distribution companies as defined in Code of Virginia, 58.1-2600) at a rate not to exceed one-half ( 1/2) of one percent of the gross receipts of such company accruing from sales to the ultimate consumer in this city. However, in the case of telephone companies, charges for long distance telephone calls shall not be included in gross receipts for purposes of license taxation. After December 31, 2000, the license tax authorized by this section shall not be imposed on pipeline distribution companies as defined in Code of Virginia, 58.1-2600 or on gas suppliers, gas utilities or electric suppliers as defined in Code of Virginia, 58.1-400.2, except upon gross receipts for calendar year 2000 as provided in Code of Virginia, 58.1- 2901(D) and 58.1-2905(D).
(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3731.

 

Sec. 18.1-36. Direct sellers.

 

A tax on direct sellers, as defined herein, shall be levied if, and only if, the total sales of such seller exceed four thousand dollars ($4,000.00) per year. The rate of tax levied on a direct seller whose total sales exceed four thousand dollars ($4,000.00) per year shall be twenty cents ($0.20) per one hundred dollars ($100.00) of retail sales and five cents ($0.05) per one hundred dollars ($100.00) of wholesale sales, whichever is applicable. This tax shall only be levied if such direct seller maintains his place of abode in the City.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3719.1.

 

Sec. 18.1-37. Financial, real estate and professional services.

 

(a) Each person engaged in a financial, real estate or professional service shall pay a license tax of fifty-eight cents ($0.58) per one hundred dollars ($100.00) on all gross receipts.

 

(b) Those engaged in rendering financial services include, but are not limited to, the following:

 

Buying installment receivables.

 

Chattel mortgage financing.

 

Consumer financing.

 

Credit card services.

 

Credit unions.

 

Factors.

 

Financing accounts receivables.

 

Industrial loan companies.

 

Installment financing.

 

Inventory financing.

 

Loan or mortgage brokers.

 

Loan or mortgage companies.

 

Safety deposit box companies.

 

Security and commodity brokers and services.

 

Stockbroker.

 

Working capital financing.

 

(c) Those engaged in rendering real estate services include, but are not limited to, the following:

 

Appraisers of real estate.

 

Escrow agents, real estate.

 

Fiduciaries, real estate.

 

Lessors of real property.

 

Real estate agents, brokers and managers.

 

Real estate selling agents.

 

Rental agents for real estate.

 

(d) Those engaged in rendering a professional service include, but are not limited to, the following:

 

Architects.

 

Attorneys-at-law.

 

Certified public accountants.

 

Dentists.

 

Engineers.

 

Land surveyors.

 

Practitioners of the healing arts (the art or science or group of arts or sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities).

 

Surgeons.

 

Veterinarians.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-38. Fortunetellers, clairvoyants, etc.

 

(a) Every person who for compensation shall pretend in the city to tell fortunes or assume to act as a clairvoyant or to practice palmistry, phrenology or hand writing analysis shall be deemed a fortuneteller. A fortuneteller shall pay a license tax of one thousand dollars ($1,000.00), which tax shall not be prorated.

 

(b) No license, the tax for which is paid pursuant to this section, shall be transferable.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3726.

 

Sec. 18.1-39. Marinas.

 

Every person engaged in the city in the business of keeping or operating a marina shall pay a license tax on all gross receipts. The gross receipts derived from retail sales, if separately stated to the customer, shall be taxed at the rate for a retail merchant outlined in this chapter. Examples of retail sales include, but are not limited to, the sale of gasoline, motor oils, engines, engine parts, boats, or other merchandise. The gross receipts derived from services shall be taxed in accordance with the rate set forth in section 18.1-43 of this chapter. Examples of services include, but are not limited to, repairs and the berthing or launching of boats.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-40. Pawnbrokers.

 

(a) Every pawnbroker, junk and secondhand dealer, as defined in chapter 27 of this Code, must comply with those provisions set forth therein.

 

(b) No license shall be issued to any pawnbroker taxed under this section, until there is presented to the commissioner of the revenue a certificate from the circuit court permitting the operation of such business.

(Ord. No. 1172, 10-9-96)

Cross References: Pawnbrokers, Ch. 27.

State Law References: Similar provisions, Code of Virginia, 54.1-4001.

 

Sec. 18.1-41. Photography and related activities.

 

(a) For purposes of this section, the term photographer shall mean any person, partnership or corporation having no regularly established place of business in the Commonwealth of Virginia who provides services consisting of taking of pictures or the making of pictorial reproductions in the Commonwealth. The term shall also include every employee, agent or canvasser for such photographer. Nothing in this section shall apply to (i) amateur photographers who expose, develop, and finish their own work and who do not receive compensation for such work or receive compensation for performing any of the processes of photography; (ii) coin-operated photography machines; (iii) photographers providing service in the course of their employment by newspapers, magazines, or television stations.

(b) Every photographer, as defined in subsection (a) of this section shall pay a license tax of thirty dollars ($30.00).

 

(c) Photographers with a definite place of business in the city shall be taxed at the rate set forth in section 18.1-43 of this chapter.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3727.

 

Sec. 18.1-42. Principal contractors receiving identifiable federal appropriations for research and development services.

 

Every person or entity designated as the principal or prime contractor receiving identifiable federal appropriations for research and development services as defined in sections 31.205-18(a) of the Federal Acquisition Regulation in the areas of (i) computer and electronic systems, (ii) computer software, (iii) applied sciences, (iv) economic and social sciences, and (v) electronic and physical sciences shall pay to the city a license tax of three cents ($0.03) per one hundred dollars ($100.00) of such federal funds received in payment of such contracts upon documentation provided by such person or entity to the commissioner of the revenue confirming the applicability of this section.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3706.D.3.

 

Sec. 18.1-43. Repair, personal, business and other services; other businesses.

 

(a) The local license tax imposed upon a person engaged in providing for compensation any repair, personal, business or other services not specifically classified as "financial, real estate, or professional service" in this chapter, or engaged in any other business or occupation not specifically named in this chapter, or not specifically exempted from local license tax is thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts.

 

(b) It shall be the intent of this city to apply the provisions of this chapter to all persons who are engaged in business. In the event a particular activity not specifically named in this chapter and not specifically named to be exempt, by this code or by the state code, shall be subject to the provisions of this section.

 

(c) Those rendering a repair, personal or business service or other service as referred to in subsection (a) of this section include, but are not limited to, the following:

 

Advertising agencies.

 

Airports.

 

Ambulance services.

 

Amusements and recreation services.

 

Animal hospitals, grooming services, kennels or stables.

 

Auctioneers and common criers.

 

Automobile driving schools.

 

Barber shops, beauty parlors, and hairdressing establishments, schools and services.

 

Bid or bidding reporting service.

 

Billiard or pool establishments or parlors.

 

Boat landings.

 

Bondsman.

 

Booking agents or concert managers.

 

Bowling alleys.

 

Brokers and commission merchants other than real estate or financial brokers.

 

Business and governmental research and consulting services.

 

Chartered clubs.

 

Child care attendants or schools.

 

Collection agents or agencies.

 

Commercial photography, art and graphics.

 

Court reporting and public stenographers.

 

Dance studios and schools.

 

Data processing, computer and systems development services.

 

Developing or enlarging photographs.

 

Private security services.

 

Drafting services.

 

Employment agencies.

 

Engraving.

 

Erecting, installing, removing or storing awnings.

 

Extermination services (unless the services involve performing functions defined as contracting under subsection D of section 58.1-3714, Code of Virginia).

 

Farrier or blacksmith.

 

Freight traffic bureaus.

 

Fumigating or disinfecting.

 

Funeral services and crematories.

 

Golf courses, driving ranges and miniature golf courses.

 

Hauling of sand, gravel or dirt (excavated by others).

 

Home for adults (licensed by Department of Social Services).

 

Hospitals, profit or nonprofit.

 

Hotels, motels, tourist courts, boarding and rooming houses and transient trailer parks and campsites.

 

House cleaning services.

 

Information bureaus.

 

Instructors, tutors, schools and studios of music, ceramics, art, sewing, ports and the like.

 

Interior decorating.

 

Janitorial services.

 

Laundry cleaning and garment services including laundries, dry cleaners.

 

Linen supply, diaper service, coin-operated laundries and carpet and upholstery cleaning.

 

Mailing, messenger and correspondent services.

 

Movie theaters and drive-in theaters.

 

Nickel plating, chromizing and electroplating.

 

Nurses and physician registries.

 

Nursing and personal care facilities including nursing homes, convalescent homes, homes for the retarded, old age homes and rest homes.

 

Packing, crating, shipping, hauling or moving goods or chattels for others.

 

Parcel delivery services.

 

Parking lots, public garages and valet parking.

 

Pawnbrokers.

 

Personnel services, labor agents and employment bureaus.

 

Photographers and photographic services.

 

Piano tuning.

 

Picture framing and gilding.

 

Porter services.

 

Press clipping services.

 

Professional sports (i.e., commercial rather than amateur).

 

Promotional agents or agencies.

 

Public relations services.

 

Realty multiple listing services.

 

Renting or leasing any items of tangible personal property.

 

Reproduction services.

 

Research and development laboratories.

 

Secretarial services.

 

Septic tank cleaning.

 

Shoe repair, shoe shine and hat repair shops.

 

Sign painting (unless the painting services involve performing functions defined as contracting under subsection D of 58.1-3714, Code of Virginia).

 

Storage--all types.

 

Swimming pool maintenance and management.

 

Tabulation services.

Tax preparers (other than professionals described in section 18.1-37).

 

Taxicab companies.

 

Taxidermist.

 

Telephone answering services.

 

Temporary employee services.

 

Testing laboratories.

 

Theaters.

 

Theatrical performers, bands and orchestras.

 

Towing services.

 

Transportation services including buses and taxis.

 

Travel agencies.

 

Tree surgeons, trimmers and removal services.

 

Trucking companies, intrastate.

 

Wake-up services.

 

Washing, cleaning or polishing automobiles.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-44. Savings and loan associations and credit unions.

 

Every savings institution or state-chartered credit unions having its main office in the city shall pay a license tax of fifty dollars ($50.00).

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3730.

 

Sec. 18.1-45. Short-term rental business.

 

(a) Every person engaged in the short-term rental business as defined in section 37-337 of this Code shall be classified in the category of retail sales and shall pay a license tax equal to that imposed by this chapter on retail business.

 

(b) For the purposes of this section, a person is engaged in the short-term rental business if not less than eighty (80) percent of the gross rental receipts of such business in any year are from transactions involving rental periods of ninety-two (92) consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessor. For purposes of this section only, "affiliated" shall mean any common ownership interest in excess of five (5) percent of any officers or partners in common with the lessor and lessee. For the purposes of this test, (1) any rental to a person affiliated with the lessor shall be treated as rental receipts but shall not qualify for purposes of the eighty (80) percent requirement, and (2) any rental of personal property which also involves the provision of personal services for the operation of the personal property rented shall not be treated as gross receipts from rental. For purposes of this section, the delivery and installation of tangible personal property shall not mean operation.

(Ord. No. 1172, 10-9-96)

Cross References: Taxation generally, Ch. 37.

State Law References: Similar provisions, Virginia Code, 58.1-3706.C.

 

Secs. 18.1-46--18.1-74. Reserved.

 

DIVISION 2.

 

AMUSEMENTS GENERALLY

 

Sec. 18.1-75. Generally.

 

Every person conducting, operating or engaging in any amusement or recreation business, trades or occupations shall pay a license tax as set forth section 18.1-43 of this chapter, which is thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts. These activities shall include, but are not limited to, the following:

 

(1) Arcade or building devoted to general amusement or entertainment.

(2) Auditorium.

 

(3) Coliseum.

 

(4) Gardens, display or amusement.

 

(5) Golf driving range.

 

(6) Miniature golf.

(7) Skating rink.

 

(8) Trampoline.

 

(9) Go-cart track.

 

(10) Other similar amusements and entertainments.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-76. Amusement parks.

 

(a) The owner or operator of any permanent park for public amusement in the city, which is open to the public, shall pay for the privilege of operating in such park any bowling alley, skeetball machine, hobby horse, merry-go-round, ferris wheel, old mill, roller coaster, dodge cars and other amusements, penny or nickel machines for exhibiting pictures, automatic photo machines, boathouses, parking lots and refreshment and confectionery stands not selling beer, wine or tobacco, a license tax of thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts, exclusive of any federal and city admission tax thereon.

 

(b) Any person, other than the operator of such park, who shall operate any amusement within an amusement park, for which tickets are not sold, such as recording the voice, guessing one's weight, testing one's strength, baseball pitching and the like, shall pay a license tax of thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts, exclusive of any federal and city admission tax thereon.

 

(c) The license tax provided for in this section shall not be prorated and the license for the operation of any such park shall not be construed to authorize the operation within such park of any hotel, dance hall, motion picture theater, theater, restaurant or store or the sale of beer, wine or tobacco or any other business or occupation for which a specific license is required by this chapter.

 

(d) The commissioner of the revenue may require of any applicant for a license under this section a certificate, in writing and sworn to before an officer authorized to administer oaths, that the operation of such amusement or activity does not include any element of gambling.

 

(e) No license issued under this section shall be construed to authorize the licensee to operate any amusement or other activity the operation of which is prohibited by law.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-77. Carnivals, circuses, animal shows, etc.

 

(a) Every person exhibiting performances in a carnival, as defined in Virginia Code section 58.1-3728, shall pay a license tax of one thousand dollars ($1,000.00) for each week or part thereof that such carnival exhibits in the city.

(b) Every person exhibiting performances in a circus and menagerie or wild west show shall pay a license tax of five hundred dollars ($500.00) for each day that such circus, menagerie or wild west show exhibits in the city.

 

(c) Every person exhibiting performances of trained animal shows shall pay a license tax of seventy-five dollars ($75.00) for each day that such show exhibits in the city.

 

(d) Each person exhibiting performances described in the preceding subsections of this section shall, before beginning operation in the city, post a cash bond, in an amount to be determined by the commissioner of the revenue not to exceed five hundred dollars ($500.00), which bond shall assure faithful compliance by the licensee with all of the ordinances of the city pertaining to revenue and regulation.

 

(e) The provisions of this section shall not apply to exhibitions by kennel clubs, horse clubs, horse shows, fairs or bazaars, when conducted by any local club or association or educational schools and the entire proceeds are retained by such club or association or educational schools and used for charitable or civic purposes, or where no charges or admission fees are collected.

(Ord. No. 1172, 10-9-96)

Cross References: Carnivals prohibited between certain dates, 4-1.

State Law References: Similar provisions, Code of Virginia, 58.1-3728.

 

Sec. 18.1-78. Dance halls.

 

(a) As used in this section, the term "public dance hall" means any place open to the general public where dancing is permitted; provided, however, that a restaurant located in the city and licensed under Virginia Code 4.1-210 to serve food and beverages and having a dance floor with an area not exceeding ten (10) percent of the total floor area of the establishment shall not be considered a public dance hall.

 

(b) Every person engaged in the operation of a dancing hall or of any public hall open to the general public where dancing is permitted and live music played, to which an admission fee is charged or for which compensation is in any manner received, either directly or indirectly, by cover charge or otherwise, shall pay a license tax of thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts, up to a maximum of $600.00 per year.

 

(c) When dancing is permitted in a bona fide hotel, motel or restaurant and no separate charge is made for dancing, no license tax shall be collected under this section.

 

(d) No license for which the license tax is imposed by this section shall be issued, unless there is presented to the commissioner of-the revenue a permit issued pursuant to article II of chapter 4 of this Code.

(Ord. No. 1172, 10-9-96)

Cross References: Public dance halls generally, 4-16 et seq.

 

Sec. 18.1-79. Theatrical performances.

 

No license tax shall be charged under this section when the entire proceeds from theatrical performances are applied for religious, charitable or locally established educational or nonprofit association purposes.

(Ord. No. 1172, 10-9-96)

 

Secs. 18.1-80--18.1-99. Reserved.

 

DIVISION 3.

 

COIN-OPERATED MACHINES

 

Sec. 18.1-100. Definitions.

 

As used in this division, the following words and terms shall have the meanings ascribed to them in this section:

 

Amusement machine. The term "amusement machine" shall mean any coin-operated machine, except the following:

 

(1) Weighing machines;

 

(2) Automatic baggage or parcel checking machines or receptacles;

 

(3) Vending machines which are so constructed as to do nothing but vend goods, wares and merchandise or postage stamps or provide service only;

 

(4) Viewing machines or photomat machines;

 

(5) Machines affording rides to children; and

 

(6) Machines used for the delivery of newspapers.

 

Amusement machine operator. The term "amusement machine operator" means any person leasing, renting or otherwise furnishing or providing a coin-operated amusement machine or a machine or device which accepts recyclable material and dispenses money therefor; provided, however, the term "amusement machine operator" shall not include a person owning less than three (3) such machines and operating such machines on property owned or leased by such person.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3720.

 

Sec. 18.1-101. Tax on amusement machine operators.

 

(a) Every amusement machine operator shall pay a license tax of two hundred dollars ($200.00) for the operation of ten (10) or more amusement machines or one hundred ninety-five dollars ($195.00) for the operation of less than ten (10) such machines.

 

(b) In addition to the tax prescribed in subsection (a) above, every amusement machine operator shall pay a tax of thirty-six cents ($0.36) per one hundred dollars ($100.00) on all gross receipts. For those amusement machine operators without a definite place of business in the city, such tax shall apply only to the share of receipts actually received by such operator from amusement machines operated within the city.

(Ord. No. 1172, 10-9-96)

State Law References: Authority for above tax, Code of Virginia, 58.1-3720.

 

Sec. 18.1-102. Tax on receipts from vending machines.

 

Every person engaged in the business of selling goods, wares, and merchandise through the use of coin-operated vending machines shall be deemed to be a retail merchant and shall pay a license tax as provided in section 18.1-150.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-103. Registration and bond of persons licensed under division.

 

(a) Every person, before engaging in the business of an amusement operator in this city, shall register with the commissioner of the revenue and deposit with him a bond, payable to the city, to insure the keeping of accurate records, the filing of reports, in such form and at such times as may be prescribed by the commissioner of the revenue, and the proper payment to the treasurer of the city of the taxes imposed by section 18.1-75 of this chapter. The form of such bond shall be determined by the commissioner of the revenue and the surety thereon shall be approved by him. The amount of such bond shall be determined by the commissioner of the revenue, not to exceed fifteen hundred dollars ($1500.00).

 

(b) Every person subject to the tax prescribed in section 18.1-75 of this chapter, before commencing doing business in this city, shall register with the commissioner of the revenue and deposit with him a bond, payable to the city, to insure the keeping of adequate records, the filing of reports, in such form and at such times as may be prescribed by the commissioner of the revenue, and the proper payment to the treasurer of the city of the taxes imposed by section 18.1-75 of this chapter. The form and amount of such bond shall be determined by the commissioner of the revenue and the surety thereon shall be approved by him.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-104. Filing of list of machine locations.

 

Upon making the initial application for a license, the tax for which is prescribed by this division, the applicant shall file with the commissioner of the revenue, in duplicate, a list of the locations of all amusement machines and vending machines sold, leased, rented or otherwise furnished to or placed with others. Each year thereafter, this list shall be provided, in duplicate, no later than January 31.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-105. Display of information on machines.

 

Every amusement machine and every vending machine operated under the provisions of this division shall have conspicuously located thereon a decal, sticker or other adhesive label, no less than one inch by two inches (1" 2") in size, denoting the name, trade name and address of the operator.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3722.

 

Sec. 18.1-106. Division does not permit illegal machines.

 

Nothing in this division shall be construed as permitting any person to keep, maintain, exhibit or operate any coin-operated machine or other device the operation of which is prohibited by law. The commissioner of the revenue shall not issue any license for the operation of any coin-operated machine or device which is unlawful under the provisions of this Code or the state law.

(Ord. No. 1172, 10-9-96)

 

Secs. 18.1-107--18.1-114. Reserved.

 

DIVISION 4.

 

CONTRACTORS

 

Sec. 18.1-115. Contractors generally.

 

(a) A person shall be classified as a contractor if he regularly performs, or engages others to perform, any of the work described in paragraph D of Virginia Code section 58.1-3714 on buildings, structures or real estate (i) owned by him when the buildings, structures or real estate will be offered for sale upon completion of such work; or (ii) owned by others.

 

(b) Contracting generally includes, but is not limited to, persons engaged in the following occupations, businesses or trades:

 

Air-conditioning.

Brick contracting and other masonry.

 

Building.

 

Cementing.

 

Dredging.

 

Electrical contracting.

 

Elevator installation.

 

Erecting signs which are assessed as realty.

 

Floor scraping or finishing.

 

Foundations.

 

House moving.

 

Paint and paper decorating.

 

Plastering.

 

Plumbing, heating, steamfitting.

 

Refrigeration.

 

Road, street, bridge, tunnel, sidewalk, or curb and gutter construction.

 

Roofing and tinning.

 

Sewer drilling and well digging.

 

Sign painting.

 

Structural metal work.

 

Tile, glass, flooring and floor covering installation.

 

Wrecking, moving or excavating.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-116. License tax.

 

The license tax shall be sixteen cents ($0.16) per one hundred dollars ($100.00) on all gross receipts.

(Ord. No. 1172, 10-9-96)

Secs. 18.1-117--18.1-129. Reserved.

 

DIVISION 5.

 

PEDDLERS AND ITINERANT MERCHANTS

 

Sec. 18.1-130. Definition; application generally.

 

(a) Peddler. For purposes of this section, any person who shall carry from place to place any goods, wares or merchandise and offer to sell or barter the same, or actually sell or barter the same in this city shall be deemed to be a peddler. All persons who do not keep a regular place of business, whether it be a house or a vacant lot or elsewhere, with regular business hours, and at the same place who shall offer for sale goods, wares and merchandise in this city shall be deemed peddlers under this division. All persons who keep a regular place of business open at all times with regular business hours at the same place in the city, who shall, elsewhere than at such regular place of business, personally or through their agents, in an isolated transaction, offer for sale or sell and, at the time of such offering for sale, deliver goods, wares or merchandise shall request permission, in writing, from the commissioner of the revenue to include those receipts with the gross receipts reported on their regular business license, without procuring a peddler's license.

 

(b) Itinerant merchant. For purposes of this section, any person who engages in, does, or transacts any temporary or transient business and who, for the purpose of carrying on such business, occupies any location for a period of less than one year shall be deemed to be an itinerant merchant.

 

(c) Show and sale. For purposes of this section, the term "show and sale" means a show, consisting of a group of persons or merchants, to stimulate the sale of specific classes of goods, wares, and merchandise. Any person or entity who promotes, sponsors or conducts a show and sale within the city shall obtain an itinerant merchant's license, provided no single show and sale at the same location shall continue for a period exceeding seven (7) days. A license issued to a sponsor under this subsection shall be in lieu of individual itinerant merchant's licenses otherwise required for each merchant participating in the show and sale. Each person who obtains such license shall be required to report to the commissioner of the revenue and provide a list of participants prior to each event.

(Ord. No. 1172, 10-9-96)

State Law References: Peddlers and itinerant merchants, Code of Virginia, 58.1-3717, 58.1-3718, and 58.1-3719.

 

Sec. 18.1-131. Tax; limitations.

 

(a) Every peddler or itinerant merchant, as defined in section 18.1-130, shall pay a license tax in conformity with the following schedule:

 

(1) Itinerant merchants, including those who promote, sponsor or conduct a "show and sale" and peddlers of goods, wares or merchandise, except those set forth in subsections (2) through (8) below, five hundred dollars ($500.00).

 

(2) Peddlers of meat, milk, butter, eggs, poultry, game, vegetables, fruits or other family supplies of a perishable nature not grown or produced by the peddler, seventy-five dollars ($75.00).

 

(3) Peddlers of family supplies of a perishable nature, which are not grown or produced by the peddler, and groceries generally, including such articles as customarily sold in grocery stores, one hundred fifty dollars ($150.00).

 

(4) Peddlers of Christmas trees, ice, wood, coal, oil, kerosene, coke or charcoal not grown or produced by the peddler, twenty-five dollars ($25.00).

 

(5) Peddlers of candies and confections, seventy-five dollars ($75.00).

 

(6) Peddlers of bottled soft drinks, hot dogs and wrapped sandwiches, one hundred dollars ($100.00).

 

(7) Peddlers, and their employees or agents, selling subscriptions for books, magazines and the like, and who do not carry from place to place their goods, wares or merchandise, fifty dollars ($50.00).

 

(8) Dealers in precious metals shall be taxed at the license tax rate set forth in this chapter for a retail or wholesale merchant, whichever is applicable.

(b) This division shall not apply to those who sell or offer for sale, in person or by their employees, ice, wood, charcoal, meats, milk, butter, eggs, poultry, game, vegetables, fruits or other family supplies of a perishable nature or farm products grown or produced by them and not purchased by them for sale. A dairyman who uses, upon the streets of the city, one or more vehicles may sell and deliver from his vehicles milk, butter, cream and eggs, without procuring a peddler's license.

(c) No license tax set out in this section shall be prorated.

 

(d) All peddlers must comply with the provisions set forth in this section for a peddler's tag.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-132. Peddlers at wholesale.

 

(a) Any person, firm or corporation, who or which sells or offers to sell goods, wares or merchandise to licensed dealers, other than at a definite place of business operated by the seller, and at the time of such sale or exposure for sale delivers, or offers to deliver, the goods, wares or merchandise to the buyer shall be deemed a peddler at wholesale. For purposes of this section, any delivery made on the day of sale shall be construed as a delivery at the time of sale.

 

(b) The license tax imposed on a peddler at wholesale shall be at the same rate imposed by this chapter on a wholesale merchant selling similar goods, wares or merchandise at one definite place of business.

 

(c) When such articles are peddled along with the articles specified in other sections of this division, and the license tax imposed by this division is paid, such person shall not be required to pay in addition thereto the license taxes imposed by other sections.

 

(d) Nothing in this section shall be construed as imposing a license tax in any case where the city is prohibited by the state law from imposing a license tax on peddlers.

 

(e) No license tax set out in this section shall be prorated.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-133. Exemption for certain peddlers, itinerant merchants and peddlers at wholesale.

 

(a) Any license tax imposed on peddlers or itinerant merchants or on peddlers at wholesale in this division shall not apply to:

 

(1) A licensed wholesale dealer who sells and, at the time of such sale, delivers merchandise to retail merchants;

 

(2) A distributor or vendor of motor fuels and petroleum products;

 

(3) A distributor or vendor of seafood who catches seafood and sells only the seafood caught by him;

(4) A farmer or producer of agricultural products who sells only the farm or agricultural products produced or grown by him;

 

(5) A farmers' cooperative association;

 

(6) A manufacturer who is subject to Virginia tax on intangible personal property who peddles at wholesale, only the goods, wares, or merchandise manufactured by him at a plant, whose intangible personal property is taxed by this commonwealth.

 

(7) A charitable nonprofit organization conducting a show and sale, except to the extent the receipts from these peddling activities are from an unrelated trade or business and the income is taxable under Internal Revenue Code section 511 et seq. The commissioner of the revenue shall determine the exemption and is authorized to request and obtain all necessary information to ascertain a proper application.

 

(b) The commissioner of the revenue shall require each bona fide producer or grower of market produce, fruit or fresh meat, who wishes to peddle the same in the city, to file with him a certificate in which shall be given the name and address of the applicant, the location of the land from which his fruit, vegetables or other perishables are to be produced, whether the applicant is the owner thereof, or renter, and in the latter case, the name of the landlord or owner and the time from which his lease is to run. Such certificate shall state that the applicant intends to use the sign issued to him pursuant to this section himself personally, or by agent, for the sale of his own produce only, and will not permit the same to be used by any third party, or for the sale of any produce, except his own. Upon receipt of such certificate, the commissioner of the revenue shall furnish to such bona fide grower or producer a sign, of a size and design to be selected by the commissioner, suitable to be displayed on his wagon or truck and on which shall be printed "City Grower No. ________, ________" with the license year inserted.

 

(c) Each bona fide catcher, producer or grower of seafood, who wishes to peddle the same in the city, shall apply to the commissioner of the revenue for a license exemption under this section. The commissioner shall issue to such applicant a tag, of a size and design selected by the commissioner, suitable to be displayed on the peddler's wagon, cart or truck, on which shall be printed "Seafood Peddler No. ________, ________," with the license year inserted.

(d) Any tag or sign issued under this section shall be affixed and displayed, by the owner, on the left-hand side of his cart, wagon, truck or other vehicle, on the outside thereof, and in a conspicuous place, so that the same may be readily seen at all times by anyone authorized to inspect the same. A charge of one dollar ($1.00) shall be made for each sign issued under this subsection.

 

(e) It shall be unlawful for any person to make any false statement in the certificate referred to in subsections (b) and (c) above or to permit the grower's sign issued to be used in the sale of any produce, except produce grown by him on the land described in the certificate. Any such violation shall punishable as a Class 4 misdemeanor.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-134. License tags.

 

(a) The commissioner of the revenue shall issue to each applicant for a peddler's license a license tag, of a size and design to be selected by the commissioner, suitable to be displayed on the vehicle to be used by the peddler in the prosecution of such business. On each tag so issued, there shall be printed the classification of the peddler, the tag number and the license year for which the license is issued.

 

(b) No license tag issued under this section shall be transferable.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-135. Other requirements.

 

(a) Every itinerant merchant operating in the city shall file with the license application an affidavit from the owner of the building, structure or other property to be used by such applicant, showing for what period of time the property to be used by such applicant has been hired or leased by such applicant. No itinerant merchant license shall be issued, unless such affidavit is attached to the application; provided, however, that the commissioner of the revenue may, in lieu of the foregoing affidavit, issue a regular merchant's or a regular license issued to an auctioneer under section 18.1-43 to any applicant upon the giving of a bond or security in such amount as will equal the specific tax required by this section for a period of one year from the date of the application for such license. Such bond or security shall provide that such amount shall be paid to the city in the event and at any time during any such year that the commissioner of the revenue shall receive sufficient evidence showing that it was the applicant's intention to engage in or transact a temporary or transient business in the city.

 

(b) No person shall be exempt from the payment of the license tax imposed by section 18.1-131 by reason of associating temporarily with any local merchant, dealer, trader or auctioneer or by reason of conducting such temporary or transient business in connection with, or as a part of, the business in the name of any local merchant, dealer, trader or auctioneer.

 

(c) The provisions of this section shall not apply to the sale, at auction, of any automobile, mechanics' tools, used farm implements, livestock, poultry (dressed or undressed), seafood, vegetables, fruits, melons, berries, flowers or leaf tobacco; or to the sale of used household furniture and used household effects, when being sold at the residence of the housekeeper desiring to dispose of the same; or to sales made to dealers by commercial travelers or selling agents or regularly established merchants or manufacturers selling to the trade by sample for future delivery from their established place of business; or to the sale of products raised upon lands leased or owned by the seller; or to the sale of vegetables, fruits or other farm products; or to hawkers on the streets; or to the sale of any goods by an assignee, trustee, executor, fiduciary, officer in bankruptcy or other officer appointed by any court of this state or of the United States; or to peddlers licensed under this chapter.

 

(d) Licenses for which the tax is designated in this section shall not be transferable.

(Ord. No. 1172, 10-9-96)

 

Secs. 18.1-136--18.1-149. Reserved.

 

DIVISION 6.

 

RETAIL, WHOLESALE AND COMMISSION MERCHANTS

 

Sec. 18.1-150. License tax--Retail merchant.

 

Every retail merchant shall pay a license tax of twenty cents ($0.20) per one hundred dollars ($100.00) on all gross receipts. Additionally, restaurants must comply with the bond requirement of Hampton Code section 37-231.1. Any person engaging in the business of selling at retail, and installing air conditioning units which are placed in windows or other openings, with frames and requiring no ducts, shall be deemed a retail merchant and pay the license tax under this section.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-151. Same--Wholesale merchant.

 

Every wholesale merchant shall pay a license tax of fifteen cents ($0.15) per one hundred dollars ($100.00) on all gross purchases. However, this shall not be construed as applying to manufacturers who offer for sale, at the place of manufacture, goods, wares and merchandise manufactured by them. Any person engaging in the business of selling, at wholesale, and installing air conditioning units which are placed in windows or other openings, with frames and requiring no ducts, shall be deemed a wholesale merchant and pay the license tax under this section.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3716.

 

Sec. 18.1-152. Same--Commission merchant.

 

Any person engaged in the business of selling merchandise on commission by sample, circular, or catalogue for a regularly established retailer, who has no stock or inventory under his control other than floor samples held for demonstration or sale and owned by the principal retailer, shall be classified as a commission merchant and taxed only on commission income at a rate of thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts. Such person engaged in such business shall not be subject to tax on total gross receipts from such sales.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provision, Code of Virginia, 58.1-3733.

 

Sec. 18.1-153. Application of tax to caterers.

 

Every person engaged in the business of catering shall be deemed a retail merchant and subject to the tax prescribed in this section. For the purpose of measuring such tax, all such gross receipts shall be regarded as retail sales.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-154. Application of tax to promotional sales by financial institutions.

 

Every bank, savings institution, lending institution and the like which is not ordinarily licensed as a retailer, but which engages in promotional activities involving the sale of tangible personal property, shall pay a retail local license tax pursuant to this section on the gross receipts from such sales.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-1202.

 

Sec. 18.1-155. Tax when merchant goes out of business after close of license year.

 

If a retail or wholesale merchant, after the close of the year for which his license is issued, elects not to renew it, but desires the privilege to sell whatever goods, wares and merchandise he may have on hand at the time, it shall be lawful for him to do so, upon the payment of a license tax measured by either the retail or wholesale sales value of such goods, wares and merchandise, which value shall be estimated by the commissioner of the revenue; provided, however, that no purchases may be made by the merchant after the close of the preceding year.

(Ord. No. 1172, 10-9-96)

Cross References: Going-out-of-business sales, 33-16 et seq.

 

Sec. 18.1-156. Motor vehicle dealers; alternate method of payment of business license tax.

 

(a) In lieu of the payment provisions otherwise required by this article, motor vehicle dealers may elect annually to report and pay their required annual business license tax in accordance with the provisions of this section. The method of reporting and paying the required annual business license tax by motor vehicle dealers provided for in this section shall be known as the "alternate method of payment" and shall apply only to the retail sale of motor vehicles by such dealers.

 

(b) Motor vehicle dealers which elect the alternate method of payment for a tax year shall not change the method of reporting and paying the business license tax during such tax year.

 

(c) Motor vehicle dealers which elect the alternate method of payment shall separately state the amount of the business license tax attributable to the sale of a motor vehicle, shall add the tax to the retail sales price of the motor vehicle and shall collect same at or before the time of the delivery of the vehicle to the purchaser.

 

(d) All business license taxes which are separately stated shall be reported and paid by the dealer to the city treasurer no later than the twentieth day of the first month of the calendar quarter following the calendar quarter in which such taxes were required to be collected.

 

(e) Motor vehicle dealers which fail to elect to utilize the alternate method of payment shall not separately state the amount of the tax as authorized by this section and shall pay their business license tax as prescribed in this section. Any dealer which collects business license taxes in violation of this subsection shall exercise due diligence to refund such tax, in excess of one dollar ($1.00) to the purchaser within 120 days of discovering such overpayment, and produce evidence of such refund to the commissioner of the revenue upon request of the commissioner of the revenue. If the purchaser cannot be located by the dealer after due diligence, the amount of such tax shall be paid to the city.

 

(f) During a three-year period after receipt of such amounts, the commissioner of the revenue or other local assessing officer and the treasurer, as that term is defined in Code of Virginia, 58.1-3123, shall refund such amounts as appropriate to purchasers who produce documentation verifying such overpayment. At the expiration of this period, the commissioner of the revenue or other local assessing officer shall consider these funds as additional business license tax. The locality may recover from the motor vehicle dealer its costs of mailing, printing, and other reasonably necessary administrative costs related to refunding such amounts to purchasers. Dealers which elect the alternate method of payment shall be liable for the collection, reporting and payment of the tax to the city in accordance with this section whether separately stated or not, and whether the tax was actually collected from the purchaser or not.

 

(g) The failure of a motor vehicle dealer to report and pay such taxes as prescribed in subsection (e) shall be subject to the same interest and penalties as provided herein for the annual reports and payments of business license taxes.

 

(h) The amount of tax that is paid to the city pursuant to this section shall not be considered as gross receipts for determination of business license tax liability in the next succeeding year.

 

(i) The tax collected pursuant to this provision shall be deemed to be held in trust for the City of Hampton.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 58.1-3734.

 

Sec. 18.1-157. Reserved.

Editors Note: Ord. No. 1281, adopted June 21, 2000, repealed 18.1-157, which pertained to the application of the tax to distributing houses and which derived from Ord. No. 1172, adopted Oct. 9, 1996.

 

Sec. 18.1-158. Tax not applicable to storage of goods in public warehouses.

 

A person who maintains no place of business in the city, and who stores goods, wares and merchandise in a public warehouse in the city for ultimate distribution to wholesalers only or to the federal or state government or to any agency of either such government, shall not be deemed to be a wholesale merchant and shall not be subject to payment of a license tax as such.

(Ord. No. 1172, 10-9-96)

 

Sec. 18.1-159. Dealers in precious metals.

 

(a) Any person acting as a dealer in precious metals or gems, as defined in this chapter, shall be deemed a wholesale merchant, except where a dealer's purchase or acquisition occurs for the purpose of:

 

(1) Resale of the purchase or acquired items to the general public by the dealer;

 

(2) Use of the items or their materials by the dealer in manufacturing or production activity carried on by the dealer; or

 

(3) Trade-in as part of a retail sales transaction.

 

(b) A dealer engaging in any of the activities described in subsection (a) of this section shall be subject to taxation in accordance with the applicable terms and standards of this article.

 

(c) No business license shall be issued to such dealer until there is presented to the commissioner of the revenue a permit issued by the Hampton Police Division.

(Ord. No. 1172, 10-9-96)

State Law References: Similar provisions, Code of Virginia, 54.1-4108.

 

 

 

 

 

Signed by ____________________________ Date _________________

Ross A. Kearney, II, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council