Sections:
7.04.030 Purpose and duration.
7.04.050 Registration required.
7.04.060 Deductions, exemptions, and charitable organizations.
7.04.070 False application unlawful.
7.04.080 Display and transfer.
7.04.090 Administration of this chapter.
7.04.100 Inspection and audits.
7.04.110 Assessments, payment under protest, appeal.
7.04.120 Delinquent license fees, partial payment.
7.04.150 Suspension or revocation of license.
7.04.170 Permission to use streets required.
7.04.180 Consent, franchise or business license fee required.
Every person engaged or intending to engage in any calling, business, occupation or profession listed in the rate classification index portion of this chapter, in whole or in part, within the limits of the city of Travelers Rest, South Carolina, is required to pay an annual license fee and obtain a business license as herein provided.
(Ord. O-23-06 § 1 (part), 2006)
The following words, terms and phrases, when used in this chapter, shall have the meaning ascribed herein:
"Business" means a calling, occupation, profession, or activity engaged in with the object of gain, benefit or advantage, either directly or indirectly.
"Charitable purpose" means benevolent, philanthropic, patriotic, or eleemosynary purpose which does not result in personal gain to a sponsor, organizer, officer, director, trustee or person with ultimate control of the organization. A charitable organization shall be deemed a business subject to a license tax unless the entire net proceeds of its operation, after necessary expenses, are devoted to charitable purposes. Compensation in any form to a sponsor, organizer, officer, director, trustee or person with ultimate control of the organization shall not be deemed a necessary expense of operation.
"Classification" means that division of businesses by major groups subject to the same license rate as determined by a calculated index of ability to pay based on national averages, benefits, equalization of tax burden, relationships of services, or other basis deemed appropriate by municipality council.
"Gross income" means the total revenue of a business, received or accrued, for one calendar year collected or to be collected from business done within the city, excepting therefrom income from business done wholly outside of the city on which a license tax is paid to some other city or a county and fully reported to the city. "Gross income for brokers or agents" means gross commissions received or retained, unless otherwise specified. "Gross income for insurance companies" means gross premiums collected. Gross income for business license tax purposes shall not include taxes collected for a governmental entity, escrow funds, or funds which are the property of a third party. The value of bartered goods or trade-in merchandise shall be included in gross income. The gross income for business license purposes may be verified by inspection of returns and reports filed with the Internal Revenue Service, the South Carolina Department of Revenue, the South Carolina Insurance Commission, or other government agency.
"License inspector" means a person designated to administer this chapter.
"Municipality" means the city of Travelers Rest.
"Person" means any individual, firm, partnership, LLP, LLC, cooperative nonprofit membership, corporation, joint venture, association, estate, trust, business trust, receiver, syndicate, holding company, or other group or combination acting as a unit, in the singular or plural, and the agent or employee having charge or control of a business in the absence of the principals.
(Ord. O-23-06 § 1 (part), 2006)
7.04.030 Purpose and duration.
The business license levied by this chapter is for the purpose of providing such regulation as may be required by the businesses subject thereto and for the purpose of raising revenue for the general fund through a privilege tax. The business license period shall begin on January 1st of each year and end on the following December 31st. The provisions of this chapter and the rates herein shall remain in effect from year to year as amended by council.
(Ord. O-23-06 § 1 (part), 2006)
(a)
The required license fee shall be paid for each business subject hereto according to the applicable rate classification on or before the 1st of May in each year in order to avoid the penalty as described herein, except for those businesses for which a different due date is specified.
(b)
A separate license shall be required for each place of business and for each classification or business conducted at one place. If gross income cannot be separated for classifications at one location, the license fee shall be computed on the combined gross income for the classification requiring the highest rate. A license fee based on gross income shall be computed on the gross income for the preceding calendar or fiscal year, and on a twelve-month projected income based on the monthly average for a business in operation for less than one year. The fee for a new business shall be computed on the estimated probable gross income stated in the license application for the balance of the license year. The initial fee for an annexed business shall be prorated for the number of months remaining in the license year. No refund shall be made for a business which is discontinued.
(Ord. O-23-06 § 1 (part), 2006)
7.04.050 Registration required.
(a)
The owner, agent or legal representative of every business subject to this chapter, whether listed in the classification index or not, shall register the business and make application for a business license on or before the due date of each year, except that a new business shall be required to have a business license prior to operation within the municipality.
(b)
Application shall be on a form provided by the license inspector which shall contain the social security number and/or the federal employer's identification number, the business name as reported on the South Carolina income tax return, and all information about the applicant and the business deemed appropriate to carry out the purpose of this chapter by the license inspector. Applicants may be required to submit copies of portions of state and federal income tax returns reflecting gross income figures.
(c)
The applicant shall certify under oath that the information given in the application is true, that the gross income is accurately reported, or estimated for a new business, without any unauthorized deductions, and that all assessments and personal property taxes on business property due and payable to the municipality have been paid.
(d)
Insurance agents and brokers shall report the name of each insurance company for which a policy was issued and the total premiums collected for each company for each type of insurance coverage on a form approved by the license inspector. An insurance agent not employed by a company shall be licensed as a broker.
(Ord. O-23-06 § 1 (part), 2006)
7.04.060 Deductions, exemptions, and charitable organizations.
(a)
No deductions from gross income shall be made except income from business done wholly outside of the municipality on which a license tax is paid to some other municipality or a county, taxes collected for a governmental entity, or income which cannot be taxed pursuant to state or federal law. The applicant shall have the burden to establish the right to deduction by satisfactory records and proof.
(b)
No person shall be exempt from the requirements of the ordinance by reason of the lack of an established place of business within the municipality, unless exempted by state or federal law. The license inspector shall determine the appropriate classification for each business in accordance with the latest issue of the North American Industry Classification System (NAICS) for the United States published by the Office of Management and Budget. No person shall be exempt from this chapter by reason of the payment of any other tax, unless exempted by state law, and no person shall be relieved of the liability for the payment of any other tax by reason of the application of this chapter.
(c)
Charitable organizations which have exemptions from state and federal income taxes shall be exempt from a business license tax only in cases where the sponsors, organizers, directors, trustees, or persons who exercise ultimate control of the organization receive no part of the proceeds of operation, and all proceeds are devoted to charitable purposes as defined by this chapter. Payment of necessary costs of operation and wages to nonmanagement employees will not disqualify a charitable organization from exemption.
(Ord. O-23-06 § 1 (part), 2006)
7.04.070 False application unlawful.
It is unlawful for any person subject to the provisions of this chapter to make a false application for a business license, or to give or file, or direct the giving or filing of any false information with respect to the license or fee required by this chapter.
(Ord. O-23-06 § 1 (part), 2006)
7.04.080 Display and transfer.
(a)
All persons shall display the license issued to them on the original form provided by the license inspector in a conspicuous place in the business establishment at the address shown on the license. A transient or nonresident shall carry the license upon his person or in a vehicle used in the business readily available for inspection by any authorized agent of the municipality.
(b)
A change of address must be reported to the license inspector within ten days after removal of the business to a new location and the license will be valid at the new address upon written notification of the license inspector and compliance with zoning and building codes. Failure to obtain the approval of the license inspector for a change of address shall invalidate the license and subject the licensee to prosecution for doing business without a license. A business license shall not be transferable and a transfer of controlling interest shall be considered a termination of the old business and the establishment of a new business requiring a new business license, based on old business income.
(Ord. O-23-06 § 1 (part), 2006)
7.04.090 Administration of this chapter.
The license inspector shall administer the provisions of this chapter, collect license fees, issue licenses, make or initiate investigations and audits to insure compliance, initiate denial or revocation procedures, report violations to the municipal attorney and assist in prosecution of violators, produce forms, make reasonable regulations relating to the administration of this chapter, and perform such other duties as may be duly assigned.
(Ord. O-23-06 § 1 (part), 2006)
7.04.100 Inspection and audits.
(a)
For the purpose of enforcing the provisions of this chapter, the license inspector or other authorized agent of the municipality is empowered to enter upon the premises of any person subject to this chapter to make inspections, examine and audit books and records, and it is unlawful for any such person to fail or refuse to make available the necessary books and records. In the event an audit or inspection reveals that false information has been filed by the licensee, the costs of the audit shall be added to the correct license fee and late penalties in addition to other penalties provided herein. Each day of failure to pay the proper amount of license fee shall constitute a separate offense.
(b)
The license inspector shall make systematic inspections and random audits of all businesses within the municipality to insure compliance with this chapter. Records of inspection and audits shall not be deemed public records, and the license inspector shall not release the amount of license taxes paid or the reported gross income of any person by name without written permission of the licensee, provided that statistics compiled by classifications may be made public.
(Ord. O-23-06 § 1 (part), 2006)
7.04.110 Assessments, payment under protest, appeal.
(a)
When a person fails to obtain a business license or to furnish the information required by this chapter or the license inspector, the license inspector shall proceed to examine such records of the business or any other available records as may be appropriate and to conduct such investigations and statistical surveys as the license inspector may deem appropriate to assess a license tax and penalties as provided herein.
(b)
A notice of assessment shall be served by certified mail. An application for adjustment of the assessment may be made to the license inspector within five days after the notice is mailed or the assessment will become final. The license inspector shall establish by regulation the procedure for hearing an application for adjustment of assessment and issuing a notice of final assessment.
(c)
A final assessment may be appealed to the municipal council only by payment in full of the assessment under protest within five days and the filing of written notice of appeal within ten days after payment pursuant to the provisions of this chapter relating to appeals to council.
(Ord. O-23-06 § 1 (part), 2006)
7.04.120 Delinquent license fees, partial payment.
(a)
For nonpayment of all or any part of the correct license fee, the license inspector shall levy and collect a late penalty of ten percent of the unpaid fee for the first month, or portion thereof, and five percent for each additional month, or portion thereof, after the due date until paid. Penalties shall not be waived. If any license fee shall remain unpaid for sixty days after its due date, the license inspector shall make a report to the municipal attorney for appropriate legal action.
b.
Partial payment may be accepted by the license inspector to toll imposition of penalties on the portion paid; provided, however, no business license shall be issued or renewed until the full amount of the tax due, with penalties, has been paid.
(Ord. O-23-06 § 1 (part), 2006)
The license inspector may, but shall not be required to, mail written notices that license fees are due, but if notices are not mailed there shall be published a notice of the due date in a newspaper of general circulation within the municipality three times prior to the due date in each year. Failure to receive notice shall not constitute a defense to prosecution for failure to pay the tax due or grounds for waiver of penalties.
(Ord. O-23-06 § 1 (part), 2006)
The license inspector shall deny a license to an applicant when the application is incomplete, contains a misrepresentation, false or misleading statement, evasion or suppression of a material fact, or when the activity for which a license is sought is unlawful or constitutes a public nuisance per se. A decision of the license inspector shall be subject to appeal to council as herein provided. Denial shall be written with reasons stated.
(Ord. O-23-06 § 1 (part), 2006)
7.04.150 Suspension or revocation of license.
When the license inspector determines that:
(a)
A license has been mistakenly or improperly issued or issued contrary to law; or
(b)
A licensee has breached any condition upon which the license was issued or has failed to comply with the provision of this chapter; or
(c)
A licensee has obtained a license through a fraud, misrepresentation, a false or misleading statement, evasion or suppression of a material fact in the license application; or
(d)
A licensee has been convicted of an offense under a law or ordinance regulating business, a crime involving moral turpitude, or an unlawful sale of merchandise or prohibited goods; or
(e)
A licensee has engaged in an unlawful activity or nuisance related to the business.
The license inspector shall give written notice to the licensee or the person in control of the business within the municipality by personal service or certified mail that the license is suspended pending a hearing before council for the purpose of determining whether the license should be revoked. The notice shall state the time and place at which the hearing is to be held, which shall be at a regular or special council meeting within thirty days from the date of service of the notice, unless continued by agreement. The notice shall contain a brief statement of the reasons for suspension and proposed revocation and a copy of the applicable provisions of this chapter.
(Ord. O-23-06 § 1 (part), 2006)
(a)
Any person aggrieved by a decision, final assessment, revocation, suspension, or a denial of a business license by the license inspector may appeal the decision to the municipal council by written request stating the reasons therefor, filed with the license inspector within ten days after the payment of the assessment under protest or notice of denial is received. Payment under protest shall be a condition precedent to appeal.
(b)
An appeal or a hearing on revocation shall be held by the municipal council within thirty days after receipt of a request for appeal or service of notice of suspension at a regular or special meeting of which the applicant or licensee has been given written notice, unless continued by agreement. At the hearing, all parties shall have the right to be represented by counsel, to present testimony and evidence and to cross-examine witnesses. The proceedings shall be recorded and transcribed at the expense of the party so requesting. The rules of evidence and procedure prescribed by council shall govern the hearing. Council shall by majority vote of members present render a written decision based on findings of fact and application of the standards herein which shall be served upon all parties or their representatives and shall be final unless appealed to a court of competent jurisdiction within ten days after service.
(c)
No person shall be subject to prosecution for doing business without a license until the expiration of ten days after notice of denial or revocation which is not appealed or until after final judgment of a circuit court upholding denial or revocation.
(Ord. O-23-06 § 1 (part), 2006)
7.04.170 Permission to use streets required.
It is unlawful for any person to construct, install, maintain or operate in, on, above or under any street or public place under control of the municipality any line, pipe, cable, pole, structure or facility for utilities, communications, cablevision or other purposes without a consent agreement or franchise agreement issued by the municipal council by ordinance which prescribes the term, fees and conditions for use.
(Ord. O-23-06 § 1 (part), 2006)
7.04.180 Consent, franchise or business license fee required.
The annual fee for use of streets or public places authorized by a consent agreement or franchise agreement shall be set by the ordinance approving the agreement and shall be consistent with limits set by state law. Existing franchise agreements shall continue in effect until expiration dates in the agreements. Franchise and consent fees shall not be in lieu of or be credited against business license fees unless specifically provided by the franchise or consent agreement.
(Ord. O-23-06 § 1 (part), 2006)
Except in accordance with proper judicial order or as otherwise provided by law, it is unlawful for any official or employee to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required under this chapter. Nothing in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns.
(Ord. O-23-06 § 1 (part), 2006)
Any person violating any provision of this chapter shall be deemed guilty of an offense and shall be subject to a fine of up to five hundred dollars or imprisonment for not more than thirty days or both, upon conviction. Each day of violation shall be considered a separate offense. Punishment for violation shall not relieve the offender of liability for delinquent taxes, penalties and costs provided for herein.
(Ord. O-23-06 § 1 (part), 2006)
A determination that any portion of this chapter is invalid or unenforceable shall not affect the remaining portions.
(Ord. O-23-06 § 1 (part), 2006)