Chapter 20 - LICENSES#

Footnotes: --- (1) ---

Charter reference— Authority of city to raise revenue by annual licenses, Ch. II, § 2.

Cross reference— Dog licenses, § 6-46 et seq.; license for closing-out sales of certain goods, § 30-36 et seq.; license for fire, etc., sales, § 30-96 et seq.; taxation, Ch. 34.

State Law reference— Licenses generally, Code of Virginia, § 58.1-3700 et seq.; city license taxes, §§ 58.1-3702—58.1-3706.

Sec. 20-1. - Definitions.#

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

Affiliated group means:

(1) One (1) 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 (1) 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 (1) of the other corporations subject to inclusion. As used in this subdivision, the term "stock" does not include nonvoting stock which is limited and preferred as to dividends. The phrase "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 (1) or more of the corporations subject to inclusion, including the common parent corporation, is a nonstock corporation, the term "stock" as used in this subdivision shall refer to the nonstock corporation membership or membership voting rights, as is appropriate to the context.

Assessment means 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 or assessing official means the commissioner of the revenue of the city.

Base year means the calendar year preceding the license year, except for contractors subject to the provisions of section 58.1-3715 of the Code of Virginia.

Business means 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 (1) 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.

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

Definite place of business means 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 means any person who: (i) 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 (ii) 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 (iii) 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 means 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.

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

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

Dealer for purposes of this chapter means any person 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.

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

Those engaged in rendering financial services include, but without limitation, the following:

Buying installment receivables
Chattel mortgage financing
Consumer financing
Credit card services
Credit unions
Factors
Financing accounts receivable
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

Gross receipts means the whole, entire, total receipts attributable to the licensed privilege, without deduction, except as may be limited by the provisions of Code of Virginia, chapter 37 of title 58.1.

Itinerant merchant means a 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 (1) year.

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

Peddler means a person who carries from place to place any goods, wares or merchandise and sells or offers to sell or barter the same.

Peddler at wholesale means a 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. Any delivery made on the day of sale shall be construed as delivery at the time of sale.

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

Professional services means 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 BPOL guidelines promulgated pursuant to Code of Virginia, § 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 by 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 means 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 goods, wares and merchandise manufactured by any wholesaler or wholesale merchant and sold or offered for sale. A wholesaler or wholesale merchant may elect to report the gross receipts from the sale of manufactured goods, wares and merchandise if it cannot determine the cost of manufacture or chooses not to disclose the cost of manufacture.

Real estate services means rendering a service for compensation with respect to the purchase, sale, lease, rental, or appraisal of real property, unless the service is otherwise specifically provided for in this chapter, and such 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

Retailer or retail merchant means 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 and industrial users.

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

Wholesaler or wholesale merchant shall mean 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 and industrial users which because of the quantity, price, or other terms indicate that they are consistent with sales at wholesale.

(Ord. No. 96-33, § C, 11-12-96)

Editor's note— Ord. No. 96-33, adopted Nov. 12, 1996, by title, repealed former § 20-1 which defined "gross receipts". Such section bore no history note. Provisions designated herein as § 20-1 were derived from Ord. No. 96-33, C.

Sec. 20-2. - Adoption of state law.#

(a) As to all questions in regard to the duty and conduct of the officers of the city in collecting and enforcing the taxes imposed under this chapter, and in regard to questions of construction and for definition of terms used in this chapter, and the rules and regulations applicable to putting same in operation, reference is hereby made to the provisions of title 58.1, Code of Virginia, for the assessment, levy and 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 other 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 title 58.1, Code of Virginia, so far as applicable, are hereby adopted without being specifically herein quoted.

(b) The definition of the various businesses, occupations, trades or professions provided for in this chapter shall be and hereby are defined to be the same as the definitions given in Code of Virginia, title 58.1, unless otherwise defined herein, and all constructions of same by the state tax commissioner shall have equal force to this chapter.

(Code 1963, § 21-21; Ord. No. 96-31, 11-12-96)

Article I. - Generally#

Sec. 20-3. - Enforcement of chapter generally.#

(a) The city manager shall require the chief of police and every member of the police department of the city to enforce this chapter. It shall be the duty of the chief of police and of every member of the police department to check whether all new business or professional men commencing any business, employment or profession in the city have complied with the provisions of this chapter.

(b) It shall be the duty of the commissioner of revenue to report every person, known to him, who shall commence to prosecute any licensable business, employment or profession without a license or who shall unlawfully fail for a longer period than one month to obtain a new license, to the city attorney, who shall cause warrants to be issued for such persons and shall prosecute them.

(Code 1963, §§ 21-19, 21-20)

Sec. 20-4. - Construction of chapter; interstate commerce; obstruction of public ways; nuisances.#

(a) Nothing in this chapter shall be construed as imposing a license tax on or otherwise regulating or restricting interstate commerce. Any business or portion thereof embraced in the term "interstate commerce" is not made subject to a license by this chapter.

(b) Nothing in this chapter shall be construed as giving the right to any person to obstruct sidewalks, streets or other public places or to commit or maintain a nuisance.

(Code 1963, §§ 21-17, 21-18)

Sec. 20-4.5. - Overriding conflicting ordinances.#

Except as may be otherwise provided by the laws of the Commonwealth of Virginia, and notwithstanding any other current ordinances or resolutions enacted by this council, whether or not compiled in the Code of this city, to the extent of any conflict, the provisions of this chapter 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 the city.

(Ord. No. 96-33, § A, 11-12-96)

Editor's note: Ord. No. 96-33, § A, did not specify manner of codification, but has been designated by the editor as § 20-4.5.

Sec. 20-5. - Engaging in business without license; penalty.#

(a) Whenever a license is required by this chapter, and whenever this Code imposes a license fee or levies a license tax on a business, employment or profession, it shall be unlawful to engage in such business, employment or profession without first obtaining the required license. Any person who engages in a business without obtaining a license required by this chapter, or after being refused such license, shall not be relieved of the tax imposed by this chapter.

(b) If any person shall:

(1) Commence to prosecute any business, trade, occupation, employment or profession in the city without obtaining a license required by this chapter; or

(2) Continue a business, trade, occupation, employment or profession in the city after the expiration of a license previously issued under this chapter without obtaining a new license or a renewal of the expired license, he shall be guilty of a Class 3 misdemeanor.

(Code 1963, § 21-1; Ord. No. 96-33, § B, 11-12-96)

Editor's note: Ord. No. 96-33, by title repealed § 20-5(a). Sec. B of such ordinance has been codified as § 20-5(a) by the editor.

Sec. 20-6. - License requirement.#

(a) Every person engaging in this city in any business, trade, profession, occupation or calling (collectively hereinafter "a business") as defined in this chapter, unless otherwise exempted by law, shall apply for a license for each such business if (i) the person has a definite place of business in this city; (ii) there is no definite place of business anywhere and the person resides in this city; or (iii) there is no definite place of business in this city but the person operates amusement machines or is classified as a peddler or itinerant merchant, carnival or circus as specified in Code of Virginia, §§ 58.1-3717, 3718, or 3728, respectively, or is a contractor subject to Code of Virginia, § 58.1-3715, or is a public service corporation subject to Code of Virginia, § 58.1-3731. 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 (1) license for all such businesses and professions if all of the following criteria are satisfied: (i) each business or profession is subject to licensure 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; and (iii) the taxpayer agrees to supply such information as the assessor may require concerning the nature of the several businesses and their gross receipts.

(b) Reserved.

(d) In computing the amount of license tax due, the commissioner of the revenue shall round all amounts to the nearest dollar; that is, all amounts of forty-nine cents ($0.49) or less shall be rounded down and all amounts of fifty cents ($0.50) or more shall be rounded up.

(Ord. No. 87-17, 6-23-87; Ord. No. 94-36, 11-2-94; Ord. No. 96-33, § D, 11-12-96)

Editor's note: Ord. No. 96-33, by title repealed § 20-6(a)—(c). Sec. D of such ordinance was designated by the editor as § 20-6(a). See also the editor's note following § 20-7.

Sec. 20-7. - Due dates; late payment penalties and interest.#

(a) Each person subject to a license tax under this chapter shall apply for a license prior to beginning business if he was not subject to licensure 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 assessing official.

(b) The tax shall be paid with the application in the case of any license not based on gross receipts. If the tax is measured by the gross receipts of the business, the tax shall be paid on or before March 31. Semiannual payments for license taxes shall be authorized pursuant to section 20-19.

(c) The assessing official 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 first day of the month following the due date until the date paid and, if the estimate submitted with the extension is found to be unreasonable under the circumstances, a penalty of ten (10) percent of the portion paid after the due date.

(d) 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 or 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. The penalties shall not be imposed, or if imposed, shall be abated by the official who assessed them, if the failure to file or pay was not the fault of the taxpayer. 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.

"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.

"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.

(e) Any person failing to make the application required by this section shall be guilty of a Class 4 misdemeanor.

(f) It shall be the duty of the commissioner of the revenue to keep a record of all applications filed under this section.

(g) Interest shall be charged on the late payment of the tax from the first day of the month following 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 first day of the month following the due date, whichever is later. Interest shall be paid on the refund of any tax paid under this chapter from the date of payment or the first day of the month following the 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 Code of Virginia, § 58.1-3916.

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 in event of such adjustment, provided the refund or the late payment is made not more than thirty (30) days from (i) the date of the payment that created the refund, or (ii) the due date of the tax, whichever is later.

(Ord. No. 96-33, § E, 11-12-96; Ord. No. 2015-1027, 10-27-15)

Editor's note: At the request of the city, provisions formerly designated as § 20-6(d) and (e) were redesignated as § 20-7(e) and (f), and § 20-7(e) was redesignated as (g). See also the editor's note following § 20-10.

Sec. 20-8. - 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 (1) 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 Code of Virginia, § 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 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 definite place of business at which the rental of such property is managed.

(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 and the affected jurisdictions are unable to reach an apportionment agreement, except as to circumstances set forth in § 58.1-3709 of the Code of Virginia, 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 (1) or more political subdivisions in which the taxpayer is licensed to engage in business and that the difference has resulted in, 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.

(Ord. No. 96-33, § F, 11-12-96)

Note: See the editor's note following § 20-10.

Chapter 20 - Business Licenses#

Sec. 20-9. - Limitations and extensions.#

(a) Where, before the expiration of the time prescribed for the assessment of any license tax imposed pursuant to this chapter, both the assessing official 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.

(b) Notwithstanding Code of Virginia, § 58.1-3903, the assessing official 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.

(c) The period for collecting any local license tax shall not expire prior to the period specified in Code of Virginia, § 58.1-3940, two (2) years after the date of assessment if the period for assessment has been extended pursuant to this subdivision of this chapter, two (2) years after the final determination of an appeal for which collection has been stayed pursuant to section 20-10(b) or (d) of this chapter, or two (2) years after the final decision in a court application pursuant to Code of Virginia, § 58.1-3984 or similar law for which collection has been stayed, whichever is later.

(Ord. No. 96-33, § G, 11-12-96)

Sec. 20-10. - Appeals and rulings.#

(a) Any person assessed with a local license tax as a result of an audit may apply within ninety (90) days from the date of such assessment to the assessor for a correction of the assessment. The application must be filed in good faith and sufficiently identify the taxpayer, audit period, 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, a further audit, or other evidence deemed necessary for a proper and equitable determination of the application. The assessment shall be deemed prima facie correct. The assessor shall undertake a full review of the taxpayer's claims and issue a determination to the taxpayer setting forth its position. Every assessment pursuant to an audit shall be accompanied by a written explanation of the taxpayer's right to seek correction and the specific procedure to be followed in this city (e.g., the name and address to which an application should be directed).

(b) Provided a timely and complete application is made, collection activity shall be suspended until a final determination is issued by the assessor, unless the assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of section 20-7(g) of this chapter, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" includes a finding that the application is frivolous, or that a taxpayer desires to (i) depart quickly from the locality, (ii) remove his property therefrom, (iii) conceal himself or his property therein, 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.

(c) Any person assessed with a local license tax as a result of an audit may apply within ninety (90) days of the determination by the assessing official on an application pursuant to subsection (a) of this section for a correction of such assessment. The tax commissioner shall issue a determination to the taxpayer within ninety (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 application shall be treated 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. Following such an order, either the taxpayer or the assessing official may apply to the appropriate circuit court pursuant to Code of Virginia, § 58.1-3984. However, the burden shall be on the party making the application to show that the ruling of the tax commissioner is erroneous. Neither the tax commissioner nor the department of taxation shall be made a party to an application to correct an assessment merely because the tax commissioner has ruled on it.

(d) On receipt of a notice of intent to file an appeal to the tax commissioner under subsection (c) of this section, the assessing official shall further suspend collection activity until a final determination is issued by the tax commissioner, unless the assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of subsection (g) of section 20-7, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" shall have the same meaning as set forth in subsection (b) of this section.

(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 the guidelines issued by the department of taxation upon which the ruling was based, 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.

(Ord. No. 96-33, § H, 11-12-96)

Editor's note— Ord. No. 96-33, by title repealed former §§ 20-7—20-10, state forms, penalty and interest for late payment of tax, advertising of business and separate license for each place and class of business. Secs. E—H of such ordinance have been designated as §§ 20-7—20-10, by the editor.

Sec. 20-11. - Failure to file statements.#

If any person subject to the payment of a license tax required under this chapter shall fail or refuse to file the statements required by this chapter, he shall be guilty of a Class 3 misdemeanor.

(Code 1963, § 21-5)

Sec. 20-12. - False statements in affidavits.#

If any person subject to the payment of a license tax required under this chapter shall make any false statement in the affidavit required by this chapter, he shall be guilty of a Class 3 misdemeanor.

(Code 1963, § 21-6)

Sec. 20-13. - Propounding interrogatories to applicant.#

As one of the means of ascertaining the amount of any license tax, the commissioner of the revenue may propound interrogatories to each applicant under the provisions of this chapter and use such other evidence as he may procure. Such interrogatories shall be answered under oath. Any applicant refusing to answer such interrogatories under oath shall be guilty of a Class 4 misdemeanor.

(Code 1963, § 21-7)

Sec. 20-14. - Estimates to determine tax for beginners, etc.#

(a) For the purpose of ascertaining the license tax to be paid by any person beginning a new business, employment or profession, and whose license tax is based on gross receipts, gross sales, gross purchases, gross commissions, gross contracts or orders, the licensee shall 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 every person who was licensed at a definite place of business within the city for only a part of the next preceding license year shall be computed for the then current license year on the basis of an estimate of the amount of gross receipts, gross sales or gross purchases which the licensee will make throughout the then current license year, except that any commission merchant or wholesale merchandise broker shall be licensed on the basis of gross commissions of the next preceding license year or any parts 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 sales, gross purchases, gross commissions or gross contracts or orders. In case of overestimate, the commissioner of the revenue shall order a refund in the amount of the overpaid tax.

Sec. 20-14.5. - Exclusions and deductions from "gross receipts".#

(a) General rule. 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.

(b) The following items shall be excluded from gross receipts:

(1) Amounts received and 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.

(2) Any amount representing the liquidation of a debt or conversion of another asset to the extent that the amount is attributable to a transaction previously taxed (e.g., the factoring of accounts receivable created by sales which have been included in taxable receipts even though the creation of such debt and factoring are a regular part of its business).

(3) Any amount representing returns and allowances granted by the business to its customer.

(4) Receipts which are the proceeds of a loan transaction in which the licensee is the obligor.

(5) Receipts representing the return of principal of a loan transaction in which the licensee is the creditor, or the return of principal or basis upon the sale of a capital asset.

(6) Rebates and discounts taken or received on account of purchases by the licensee. A rebate or other incentive offered to induce the recipient to purchase certain goods or services from a person other than the offeror, and which the recipient assigns to the licensee in consideration of the sale of goods and services shall not be considered a rebate or discount to the licensee, but shall be included in the licensee's gross receipts together with any handling or other fees related to the incentive.

(7) Withdrawals from inventory for purposes other than sale or distribution and for which no consideration is received and the occasional sale or exchange of assets other than inventory, whether or not a gain or loss is recognized for federal income tax purposes.

(8) Investment income not directly related to the privilege exercised by a business subject to licensure not classified as rendering financial services. This exclusion shall apply to interest on bank accounts of the business, and to interest, dividends and other income derived from the investment of its own funds in securities and other types of investments unrelated to the licensed privilege. This exclusion shall not apply to interest, late fees and similar income attributable to an installment sale or other transaction that occurred in the regular course of business.

(9) Any trade-in accepted by a motor vehicle dealer as part of the sale of a motor vehicle.

(10) License and admission taxes established under Code of Virginia, §§ 59.1-392 and 59.1-393, respectively, or pari-mutuel wagering pools as established under Code of Virginia, § 59.1-392.

(11) Amounts received by any real estate broker which arise from real estate sales transactions to the extent such amounts are paid to a real estate agent as a commission on any real estate sales transaction and the agent is subject to the business license tax on such receipts. The broker claiming the exclusion shall identify on its license application each agent to whom the excluded receipts have been paid, and the jurisdiction in the Commonwealth of Virginia to which the agent is subject to business license taxes.

(1) Any amount paid for computer hardware and software that are sold to a United States federal or state government entity provided that such property was purchased within two (2) years of the sale to said entity by the original purchaser who shall have been contractually obligated at the time of purchase to resell such property to a state or federal government entity. This deduction shall not occur until the time of resale and shall apply to only the original cost of the property and not to its resale price, and the deduction shall not apply to any of the tangible personal property which was the subject of the original resale contract if it is not resold to a state or federal government entity in accordance with the original contract obligation.

(2) Any receipts attributable to business conducted in another state or foreign country in which the taxpayer is liable for an income or other tax based upon income.

(Ord. No. 96-33, § J, 11-12-96)

Editor's note— Sec. J of Ord. No. 96-33, was codified by the editor as § 20-14.5.

Sec. 20-15. - Allowances for freight and other deductible items in computing tax.#

In computing license taxes on merchants and others under this chapter, an allowance for freight and other deductible items shall be made in all cases where the state tax code provides that the same shall be allowed in computing state license taxes on merchants and others, and such allowance shall be on the same basis as that provided by the state tax code for state license taxes. No such deductions shall be allowed, unless gross receipts or other basis is reported and deductions itemized.

Sec. 20-16. - Assessment of tax and issuance of license generally.#

The commissioner of revenue shall assess each applicant for a license or other person of whom a license is required by this chapter with the license tax required by this chapter, and shall issue a license, signed by the commissioner, to prosecute the business, employment, profession or thing to be done therein named, which license shall not be valid or effective unless and until the tax required shall be paid to the city treasurer, as collector of city taxes and levies, and such payment shall be shown on the license.

Sec. 20-17. - Reserved.#

Editor's note— Ord. No. 96-33, adopted Nov. 12, 1996, by title repealed § 20-17, assessment of additional tax.

Sec. 20-18. - Proration of license taxes.#

No license tax based upon gross receipts shall be imposed upon any business, trade, profession, occupation or calling, or upon any 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. In the event a person, firm or corporation ceases to engage in a business, trade, profession 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. Any refund due under this section shall be offset against any amount of past-due taxes owed by the same taxpayer. No flat fee or flat tax shall be subject to refund.

(Ord. No. 96-33, § L, 11-12-96)

Editor's note— Ord. No. 96-33, by title, repealed former § 20-18, Proration of tax, generally. Sec. L of such ordinance has been designated by the editor as § 20-18.

Sec. 20-19. - Semiannual payment of tax; retention of written license document; issuance of receipt; display of receipt; etc.#

The requirements relative to the semiannual payment of license taxes shall be as follows:

(1) The city treasurer shall accept semiannual payments from any person to whom a city license has been or may be issued by the commissioner of the revenue, where the total amount of the license tax in question aggregates five hundred dollars ($500.00) or more. The provisions of this section shall not apply to any person who did not procure a city license for the entire immediately preceding year nor where an individual license is required for each person engaged in a business, occupation, or profession.

(2) Such semiannual payments shall become due and payable on the first days of January and July of each year, and if not paid within thirty (30) days from such due date, the city treasurer shall collect a penalty of ten (10) percent on such sums and interest on said sum and penalty at the rate of ten (10) percent per annum, and the remaining unpaid installments shall immediately become due and payable and such delinquent person may immediately be prosecuted for failure to obtain a license to engage in business in the city as provided by law.

(3) The city treasurer shall retain all licenses issued by the commissioner of the revenue for the current year until fully paid, together with all penalties, interest, and costs, and in lieu of delivery of such license to the licensee, the treasurer shall issue his receipts for each semiannual payment made to him, which such receipt shall be posted in a conspicuous place in the room or place where the business for which such license is issued is transacted.

(4) This section shall not be construed as permission to issue semiannual licenses, but the foregoing provisions of this section are adopted as a convenient method of payment, and this chapter shall not be construed to release any person from the unpaid installments for such license by the discontinuance of business or for any other reason.

(Code 1963, § 21-9; Ord. No. 81-12, 9-15-81; Ord. No. 87-17, 6-23-87)

Sec. 20-20. - Display of license or receipt for semiannual payment.#

Every person required to pay a license tax under the provisions of this chapter shall keep the license in question or the receipt for semiannual payment issued under section 20-19 in a convenient place and, whenever requested to do so, shall exhibit such license or receipt to any member of the police department or any officer or his deputy, who is charged with the duty of enforcing the provisions of this Code and other ordinances of the city relative to revenue taxes, when so requested.

(Code 1963, § 21-12)

Sec. 20-21. - Transfer of license.#

(a) Licenses issued under this chapter shall be transferable, except where otherwise provided. In no case, however, shall any transfer of the license be legal or valid until notice in writing of such transfer has been given to the commissioner of revenue and until the transfer has been approved by such commissioner in writing on the license. Such notice shall state the time of the transfer and the place of the business and the name of the person to whom transferred.

(b) No license otherwise transferable shall be transferred until the total amount of the annual license tax in question has been fully paid to the city treasurer. The commissioner of revenue shall not approve any assignment or the making of any transfer of a license until the provisions of this section have been fully complied with.

(c) Only that part of a license based on gross receipts that is in excess of the gross receipts of the transferer for that part of the year during which the transferer 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.

(d) The commissioner of revenue shall keep a record of all license transfers.

(e) The attempted assignment or attempted transfer of any license in violation of the provisions of this section shall be void, and, of no effect, and any such purported assignee or transferee may be prosecuted for engaging in such business without a license. In addition thereto he shall be liable to the city for the amount of the proper license tax together with penalties, interest and costs.

(f) Any person transferring or attempting to transfer any license contrary to the provisions of this section shall be guilty of a Class 3 misdemeanor.

(Code 1963, §§ 21-13—21-15)

Sec. 20-22. - Term and expiration date of licenses.#

All licenses granted under the provisions of this chapter shall be issued for a period of twelve (12) months beginning the first day of January and expiring on the thirty-first day of December, unless otherwise provided.

(Code 1963, § 21-8; Ord. No. 81-12, 9-15-81)

State Law reference— Similar provisions, Code of Virginia, § 58-247.

Sec. 20-23. - Tax not imposed contrary to federal or state law.#

Nothing in this chapter contained shall be construed as imposing any license tax on any business, occupation or professional employment, or on any part thereof, on which the city is prohibited, by federal or state law, from imposing the same.

Sec. 20-24. - Licensee's records generally.#

(a) Every person liable for a license tax under this chapter which is based on actual or probable purchases or sales, actual or probable commissions, gross receipts from a business or profession or contracts or orders accepted, or which is graded in any other way, shall, where such tax is based on actual or probable purchases or sales, keep all invoices and a record of all purchases and from whom made, a record of all sales, and where otherwise based, keep a record of all commissions, gross receipts, and contracts or orders accepted, from whom received and with whom made, and the report of such purchases, sales, commissions, receipts, contracts or orders accepted, required to be made for the computation of the license tax, shall be taken from such invoices and records and general books of account.

(b) All such invoices and record and general books of account shall be open to inspection and examination, on the premises of the business, employment or profession, by the director of finance, commissioner of revenue or any other officer of the city charged in any manner with the duty of assessing or collecting license taxes.

(c) Any person who shall fail or refuse to keep the records required by this section shall be guilty of a Class 4 misdemeanor.

Sec. 20-24.1. - Recordkeeping and audits.#

Every person who is assessable with a 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 in 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.

(Ord. No. 96-33, § I, 11-12-96)

Editor's note— Ord. No. 96-33, adopted Nov. 12, 1996, did not specify manner of codification; hence, inclusion as § 20-24.1 was at the discretion of the editor.

Sec. 20-25. - Examination and audit of licensee's records.#

(a) Should any officer of the city charged in any manner with the duty of assessing or collecting license taxes have reason to believe, in any case, that the amount of actual or probable purchases or sales, or actual or probable commissions, or the gross or net receipts from any business or profession, or any other matters that may be pertinent to the assessment of such license tax, have been incorrectly reported or returned, such officer shall make a report thereof to the commissioner of revenue. Upon receipt of such report, or upon the commissioner's own motion, the commissioner of revenue is authorized and empowered to summon such person before him and require the production of any and all of such person's records, books and papers likely to throw any light upon the matter under investigation. The commissioner of revenue is also authorized and empowered to make or cause to be made such other and further investigations, examinations and audits of the records, books and papers of such person as the commissioner shall deem proper, in order to accurately determine the proper return to be made by such person.

(b) If, after an investigation, examination or audit pursuant to this section, it shall appear that purchases, sales, commissions, receipts or other matters pertinent to the assessment have been incorrectly reported or returned, the commissioner of revenue shall assess such person with the proper city license tax. If it shall appear that such purchases, sales, commissions, receipts or other matters pertinent to the assessment have been willfully incorrectly reported or returned, such person shall pay, in addition to such increased license tax assessed, a penalty of fifty (50) percent of such increased assessment. Any incorrect report or return shall be deemed prima facie willful.

(c) Any person who shall fail to appear before the commissioner of revenue and produce such records, books and papers, when duly summoned, or who shall refuse to permit the commissioner of revenue to make or cause to be made such other and further investigation and audit of such books and papers, shall be deemed guilty of a Class 3 misdemeanor.

Sec. 20-26. - Authority of commissioner of revenue to require information concerning subcontracts.#

The commissioner of revenue, in performing the duties of such office, shall have authority to require any person having a contractor's license in the city to furnish a list of subcontractors to whom any part of the original contract is sublet, and the amount of such subcontract. Any person refusing to furnish such information shall be guilty of a Class 4 misdemeanor and each day's failure to furnish such information shall constitute a separate offense.

Sec. 20-27. - Business license not to be issued until taxes paid.#

No business license authorized to be issued under Code of Virginia, chapter 37, title 58.1, and Chapter 20 of the Hopewell City Code shall be issued unless all outstanding business license taxes, personal property taxes, and meals and lodging taxes owed by said business have been paid, and until satisfactory proof of payment of said taxes has been produced by the applicant for the business license.

(Ord. No. 93-25, 9-14-93)

Sec. 20-28. - Exemption/reduction of business and professional occupational license fees for new firms locating in the enterprise zone and existing firms relocating in the enterprise zone.#

New firms locating in the enterprise zone qualify for the following exemption of business and professional occupational license fees:

Year of Operation	Percentage of Exemption
1st Year	100%
2nd Year	75%
3rd Year	50%
4th Year	25%
5th Year	0%

Existing firms relocating in the enterprise zone qualify for the following exemption of business and professional occupational license fees:

Year of Operation	Percentage of Exemption
1st Year	100%
2nd Year	75%
3rd Year	50%
4th Year	25%
5th Year	0%

(Ord. No. 2014-04, 3-11-14)

Sec. 20-40. - License fee and tax.#

Every person or business subject to licensure under this chapter shall be assessed and required to pay annually:

(1) A fee for the issuance of such license in the amount of thirty dollars ($30.00) for persons or businesses with gross receipts of ($12,000.00) or less, except that first-time filers in the first year of business operation which anticipate gross receipts of ($12,000.00) or less are excused from paying the fee; or

(2) Except as may be otherwise provided in §§ 58.1-3712, 58.1-3712.1 and 58.1-3713 of the Code of Virginia, every such person or business with annual gross receipts of more than twelve thousand dollars ($12,000.00) shall be assessed and required to pay annually a license tax on all the gross receipts of such persons includable as provided in this chapter at a rate set forth below for the class of enterprise listed:

Class	Rate
a. For contracting and persons constructing for their own account for sale	sixteen cents ($0.16) per one hundred dollars ($100.00) of gross receipts
b. For retailers and short-term rental businesses as defined in Code of Virginia, 58.1-3510	twenty cents ($0.20) per one hundred dollars ($100.00) of gross receipts
c. For financial, real estate and professional services	fifty-eight cents ($0.58) per one hundred dollars ($100.00) of gross receipts
d. For repair, personal and business services and all other businesses and occupations not specifically listed or excepted in this section or otherwise by law	thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts
e. For wholesalers	twenty-five cents ($0.25) per one hundred dollars ($100.00) of purchases
f. For carnivals, circuses and speedways	five hundred dollars ($500.00) for each performance held in this city
g. For fortunetellers, clairvoyants and practitioners of palmistry or phrenology	one thousand dollars ($1,000.00) per year
h. For massage parlors	five hundred dollars ($500.00) per year
i. For photographers as defined under Code of Virginia, § 58.1-3727	thirty dollars ($30.00) per year
j. For permanent coliseums, arenas or auditoriums having a maximum capacity in excess of ten thousand (10,000) persons, open to the public	one thousand dollars ($1,000.00) per year
k. For savings institutions and state-chartered credit unions	fifty dollars ($50.00) per year
l. For direct sellers as defined in Code of Virginia, § 58.1-3719.1 with total annual sales in excess of four thousand dollars ($4,000.00)	twenty cents ($0.20) per one hundred dollars ($100.00) of total annual retail sales or twenty-five cents ($0.25) per one hundred dollars ($100.00) of total annual wholesale sales, whichever is applicable
m. For commission merchants as defined under Code of Virginia, § 58.1-3733	thirty-six cents ($0.36) per one hundred dollars ($100.00) of commission income

(Ord. No. 96-33, § K, 11-12-96; Ord. No. 97-14, 9-13-97)

Editor's note— Ord. No. 96-33, provided by title for the repeal of § 20-40, Class I, contracting and persons contracting for their own account for sale, and § 20-41, Class II, retail merchants. Sec. K of such ordinance was designated by the editor as § 20-40.

Sec. 20-41. - Reserved.#

Note— See the editor's note following § 20-40.

Sec. 20-42. - Alcoholic beverages.#

(a) The annual license tax on any person licensed by the state alcoholic beverage control commission to manufacture, bottle, or sell alcoholic beverages in the city shall be as follows:

(1) Manufacturers' licenses:

License Type	Fee
a. Distiller's license > 5,000 gallons and < 36,000 gallons	$500.00
b. Distiller's license > 36,000 gallons	$500.00
c. Distiller's license < 5,000 gallons	$0.00
d. Winery license	$50.00
e. Brewery license < 500 barrels	$250.00
f. Brewery license > 500 barrels	$750.00

(2) Bottlers' license: $200.00

(3) Wholesalers' licenses:

License Type	Fee
a. Wholesale beer license	$75.00
b. Wholesale wine distributor's license	$50.00

(4) Retailers' licenses:

License Type	Fee
a. Beer on-premises	$40.00
b. Beer off-premises	$40.00
c. Beer on- and off-premises	$45.00
d. Wine and beer on-premises	$45.00
e. Wine and beer off-premises	$55.00
f. Wine and beer on- and off-premises	$55.00
g. Wine and beer on-premises and beer off-premises	$50.00
h. Wine and beer off-premises and beer on-premises	$50.00
i. Wine off-premises	$40.00

(5) Retailers of mixed beverage or liquor by the drink:

License Type	Fee
a. Establishment with a seating of 50—100 persons	$200.00
b. Establishment with a seating of 101—150 persons	$350.00
c. Establishment with a seating of 151 or more	$500.00
d. Private, nonprofit club operating restaurant on premises	$350.00
e. Special events license, per day	$10.00

(6) Banquet licenses per day:

License Type	Fee
a. Banquet, wedding receptions, retirement/company parties	$5.00
b. Special event nonprofit to include political fundraisers	$5.00
c. Events occurring on more than one day	$20.00
d. Annual beer and wine banquet	$15.00
e. Annual mixed beverages banquet	$75.00

(b) The licenses referred to in subsection (a) above shall be as respectively defined by the act of the General Assembly of Virginia, known as "The Alcoholic Beverage Control Act" and the terms "alcoholic beverage," "beer," "club," "sell" and "wine," wherever used in this section, shall have the meanings respectively prescribed to them by said act.

(c) No license shall be issued under 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, which state license shall be exhibited to the commissioner of revenue.

(d) Retailers licenses, enumerated in subsection (a)(4) above, shall not be prorated.

(e) All wine and beer licenses shall be issued for twelve-month periods beginning on January 1 and expiring on December 31 of the same calendar year.

(f) No license, the tax for which is designated in this section shall be assigned or transferred, but such license may be amended to show a change in the place of business.

(Ord. No. 82-34, 12-21-82; Ord. No. 2015-1027, 10-27-15)

Cross reference— Sale of beer and wine on Sunday, § 25-5.

State Law reference— Alcoholic Beverage Control Act, Code of Virginia, § 4.1-100 et seq.; authority for above tax, §§ 4.1-205, 4.1-233.

Secs. 20-43—20-47. - Reserved.#

Editor's note— Ord. No. 96-33, adopted Nov. 12, 1996, by title repealed §§ 20-43—20-47, which pertained to specific types and kinds of licenses. Such sections were derived from Ord. No. 82-34, adopted Dec. 21, 1982. Current provisions relative to such subject matter are contained in § 20-40.

Sec. 20-48. - Coin-operated machines.#

(a) For the purposes of this section, an "operator" is defined as any person selling, leasing, renting, or otherwise furnishing or providing a coin-operated machine or device operated on the coin in the slot principle, which machine or device is located within the city, whether or not such operator has a fixed place of business within the city; provided, however, that the term "operator" shall not include a person owning less than three (3) coin machines and operating such machines on property owned or leased by such person.

(b) Every operator operating ten (10) or more coin machines shall pay for the privilege an annual license tax of two hundred dollars ($200.00). Every operator operating more than two (2) and less than ten (10) coin machines shall pay for the privilege an annual license tax of one hundred seventy-five dollars ($175.00). Such tax shall not apply to operators of weighing machines, automatic baggage or parcel checking machines or receptacles, nor to operators of vending machines, which machines are so constructed as to do nothing but vend goods, wares, and merchandise, or postage stamps, or provide service only, nor to operators of viewing machines or photomat machines, nor operators of devices or machines affording rides to children, or for the delivery of newspapers. The license tax on an operator shall not be prorated, and an operator's license shall not be transferred.

(c) In addition to the operator's license tax imposed by subsection (b) above, there shall be a gross receipts tax on the gross receipts actually received from coin machines or devices operated within this city, as follows:

(1) Gross receipts from machines vending merchandise or postage stamps shall be deemed gross receipts from retail sales and taxed at the rate of twenty cents ($0.20) per one hundred dollars ($100.00) of gross receipts.

(2) Gross receipts from coin-operated laundries shall be deemed gross receipts from a business service and taxed at the rate of thirty-six cents ($0.36) per one hundred dollars ($100.00) of gross receipts.

(3) Gross receipts from all other machines operated on the coin in the slot principle shall be taxed at the rate of twenty cents ($0.20) per one hundred dollars ($100.00) of gross receipts.

(d) Every operator shall furnish to the commissioner of revenue a complete list of all machines on location in the city and the address of each location on or before the thirty-first day of January of each year. Each machine shall have conspicuously located thereon a decal, sticker, or other adhesive label, no less than one by two (1 x 2) inches in size, clearly denoting the operator's name and address.

(e) Any person providing any coin-operated machines or other devices and failing to procure a license under this section or otherwise violating this section shall be subject to a fine of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500.00) for each offense and the machine or other device shall become forfeited to the city.

(f) Gross receipts from coin-machines in a business not classified as an "operator" under paragraph (a) above shall be deemed gross receipts from retail sales and taxed at the rate of twenty cents ($0.20) per one hundred dollars ($100.00) of gross receipts.

(g) Nothing contained in this section 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.

(Ord. No. 82-34, 12-21-82; Ord. No. 88-2, 2-23-88; Ord. No. 96-32, 11-12-96)

Cross reference— Fraudulent use of coin-operated machines, § 25-28.

Sec. 20-49. - Reserved.#

Editor's note— Ord. No. 96-33, adopted Nov. 12, 1996, by title repealed § 20-49, fortune-tellers, clairvoyants, etc., derived from Ord. No. 82-34, adopted Dec. 21, 1982. Current provisions concerning such subject matter are included in § 20-40.

Sec. 20-50. - Liquidators—Stocks of goods purchased in bulk at court sales outside of city.#

(a) Any person who shall bring into this city from any place beyond its limits, a stock of goods or merchandise which has been purchased in bulk at any trustee, receiver, or bankrupt sale with the intention of selling the same at retail, either at public auction or privately, shall pay a specific license tax of one thousand dollars ($1,000.00). Such license tax shall not be prorated and the license upon which such tax is paid shall not be transferable.

(b) This section shall not be construed to apply to regularly licensed retail merchants of the city having an established place of business in the city for a period of six (6) months prior to such sales.

(Ord. No. 82-34, 12-21-82)

Cross reference— License for going-out-of-business, etc., sales, § 30-96 et seq.

Sec. 20-51. - Same—Secondhand motor vehicles, major appliances, etc.#

(a) Any person bringing into the city a stock of secondhand automobiles, motorcycles, refrigerators, or similar commodities for sale shall, in addition to the regular city merchant's license, pay a license tax of three hundred dollars ($300.00) per calendar year. Such license tax shall not be prorated. The license for which such license tax is paid shall not be transferrable.

(b) For the purpose of this section, the word "stock" shall mean two (2) or more such commodities at any one time.

(c) This section shall not apply to a regularly established merchant who has operated a business in the city and paid all city and state license taxes for not less than six (6) months immediately preceding. The license for which the license tax is indicated in this section does not permit the sale of bankrupt stock.

(Ord. No. 82-34, 12-21-82)

Sec. 20-52. - Reserved.#

Editor's note— Ord. No. 96-33, adopted Nov. 12, 1996, provided by title for the repeal of § 20-52, massage, etc., businesses, derived from Ord. No. 82-34, adopted Dec. 21, 1982. For current provisions concerning such subject matter, see § 20-40.

Sec. 20-53. - Merchandise exhibitions, etc.#

The license tax for merchandise exhibitions, food shows, or automobile shows, for advertising purposes or for which an admission fee is charged, shall be one hundred dollars ($100.00).

(Ord. No. 82-34, 12-21-82)

Sec. 20-54. - Reserved.#

Editor's note— Ord. No. 96-33, adopted Nov. 12, 1996, by title repealed § 20-54, merchants, wholesale, derived from Ord. No. 82-34, adopted Dec. 21, 1982. See § 20-40.

Sec. 20-55. - Museums, historical and educational exhibitions.#

The license tax for museums, historical, and educational exhibitions shall be at the rate of five dollars ($5.00) per day. Such museums, historical, and educational exhibitions shall be under such rules and regulations as may be prescribed by the city council and the license shall be revocable at the pleasure of the council.

(Ord. No. 82-34, 12-21-82)

Sec. 20-56. - Patent medicine salesmen.#

Any person who shall sell any patent, proprietary, or domestic medicines, salves, liniments, or compounds of a like kind, or any spices, extracts, toilet articles, or other articles of a like kind, except a licensed merchant at his regular place of business, whether he be the manufacturer thereof or not, shall pay a license tax of one hundred dollars ($100.00) per week for each person so engaged, which shall be the only license required of such person for such privilege.

(Ord. No. 82-34, 12-21-82)

Sec. 20-57. - Peddlers and itinerant merchants.#

(a) Any peddler or itinerant merchant as defined in Code of Virginia, § 58.1.3717, shall pay an annual license fee of five hundred dollars ($500.00), which may not be paid in semiannual payments, except and unless such peddler or itinerant merchant satisfies one of the definitions provided in subsection (b) below and provides documentation and other evidence as provided in subsections (c) through (f) below, in which case such peddler or itinerant merchant shall pay the lowest license fee for which they qualify.

(b) Definitions of the various categories of peddlers and itinerant merchants and related license fees are as follows:

(1) Confection peddler:

One who engages in "peddling ice cream and other ice confectionaries, candies and confections."
Fifty dollar ($50.00) license fee per vehicle used to sell such items in the city.

(2) Perishable peddler:

One who engages in "peddling meat, milk, butter, eggs, poultry, fish, oysters, game, vegetables, fruit, or other family supplies of a perishable nature not grown or produced by them."
Fifty dollar ($50.00) license fee per vehicle used to sell such items in the city.

(3) Producers:

Persons who sell or offer for sale in person or by their employees, ice, wood, charcoal, meats, milk, butter, eggs, poultry, fish, oysters, 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.
Exempt from license fee.

(4) Seafood peddler:

One who "as a peddler of seafood that buys the seafood they peddle directly from persons who catch or take the same."
Ten dollar ($10.00) license fee.

(5) Wholesaler peddler:

One who "as a peddler, shall peddle goods, wares or merchandise by selling and delivering the same at the same time, to licensed dealers or retailers, at other than a definite place of business operated by the seller," who is not otherwise a licensed in the city as a wholesale dealer.
One hundred dollar ($100.00) license fee per vehicle used to sell such items in the city.

(6) Mobile canteen:

One who engages in "peddling bottled soft drinks, hot dogs and wrapped sandwiches from a cart, wagon, truck, automobile, basket or tray."
Two hundred fifty dollar ($250.00) license fee per vehicle used to sell such items in the city.
Trustee tax for meals, remitted monthly to the city. In addition, the applicant should register with the state department of taxation.
Health department registration required.
Letter from merchant approving peddler to set up at their location is required.

(7) City sponsored event:

Sponsor purchase a two hundred fifty dollar ($250.00) blanket license. The sponsor is responsible for collecting thirty dollars ($30.00) per vendor to cover their costs.

(8) Farmers market vendor:

Each vendor that sells at the city's farmers market, and is not considered a perishable peddler or a producer hereunder, will pay a license fee of thirty dollars ($30.00).

(9) Flea markets and craft shows:

No individual participating in a flea market or craft show as a retail merchant shall be liable for any license taxation on his gross receipts generated as such show under this chapter if the promoter, manager, or organizer obtains a license and pays the license tax as provided in this section, and if the merchant reports to such promoter, manager, or organizer the merchant's total gross receipts from such show.
Promoters' fee: Two hundred dollars ($200.00).
License taxes imposed by this section shall not apply to any show or sale, if the only sales thereunder are made directly by a nonprofit organization.

(10) Sponsored/promoted event:

Any event where the promoter/sponsor has invited or otherwise expects more than one (1) peddler or itinerant merchant to be available for one (1) or more contiguous days at a single location.
Promoter/sponsor pays a two hundred dollar ($200.00) blanket license fee.
The license fee imposed by this section shall not apply to any show or sale, if the only sales thereunder are made directly by a nonprofit organization.

(c) Every person claiming to be exempted from having to secure a license required by subsections (a) as a producer as defined under subsection (b) of this section shall on or before January 1 of each year, file with the commissioner of revenue, a certificate under oath, on a form to be prepared by the commissioner of revenue, in which shall be given the name and post office address of the person filing the certificate, the location of the land on which the family supplies of a perishable nature are produced, whether the person filing the certificate is owner thereof, or renter, and in the latter case, the name of the landlord or owner and the time from which and to which the lease is to run.

(d) Upon receipt of a certificate, as provided for in subsection (c) above, and such other evidence under oath as may be sufficient to establish the fact that the person filing such certificate is entitled to an exemption as a producer, the commissioner of revenue shall furnish to such a person a tag suitable to be displayed on his vehicle or stand on which shall be printed "City of Hopewell, Producer No. ________," together with the year for which it has been issued. Such producer shall display such tag conspicuously on his vehicle or stand in a prominent position so that it can be easily read at all times while such producer is engaged in selling or offering for sale the goods described in subsection (b) above, within the city.

(e) The commissioner of revenue may administer the oaths required by subsection (c) and (d) of this section.

(f) Before the city issues a license under this section, in addition to payment of the license fee described herein and an application in a form provided by the commissioner of revenue, the applicant shall submit the following, as appropriate, in form and substance satisfactory to the commissioner of revenue:

(1) If peddling/vending from a motor vehicle, proof of insurance required for licensed vehicle.

(2) If peddling/vending on private property, evidence demonstrating consent of the property owner to such activity — letter, lease, deed, etc.

(3) Evidence of registration with the state department of taxation for sales tax, as appropriate.

(4) Evidence that the peddler/vendor has made provision of collection of meals tax and remission thereof to the city, as appropriate.

(5) Evidence of department of agriculture registration for hand scooped ice cream, ices, and slushy drink peddlers.

(6) Evidence of health department registration as required.

(Ord. No. 82-34, 12-21-82; Ord. No. 83-9, 6-28-83; Ord. No. 84-28, 10-9-84; Ord. No. 88-21, 6-28-88; Ord. No. 2015-1027, 10-27-15)

Cross reference — Application of ordinance regulating solicitors to peddlers licensed under this chapter, § 32-1.

Sec. 20-58. - Reserved.#

Editor's note — Ord. No. 96-33, adopted Nov. 12, 1996, repealed § 20-58, savings and loan associations, derived from Ord. No. 82-34, adopted Dec. 21, 1982. See § 20-40.

Sec. 20-59. - Telegraph, telephone, water, heat, light, or power companies.#

(a) Any company engaging in the business of furnishing telegraph or telephone service shall pay one-half of one percent of the gross receipts of such company accruing from business in the city for the fiscal year ending the thirty-first day of December immediately next preceding; provided, however, that charges for long distance telephone calls shall not be considered receipts of business in the city.

(b) Any company engaging in the business of furnishing water, heat, light, or power, whether by means of electricity or gas, shall pay one-half of one percent of the gross receipts of such company accruing from business in the city for the fiscal year ending the thirty-first day of December immediately next preceding.

(c) Each such company applying for a license under this chapter shall submit to the commissioner of revenue a statement of such receipts, which statement shall be verified by the commissioner on an examination of the books of such company, and a certificate as to its correctness shall be filed with the commissioner of revenue.

(Ord. No. 82-34, 12-21-82)

Cross reference — Tax on purchasers of utility services, § 34-96 et seq.

Sec. 20-60. - Reserved.#

Editor's note — Ord. No. 96-33, adopted Nov. 12, 1996, by title repealed § 20-60, exclusions from gross tax receipts for license tax purposes, derived from Ord. No. 82-34, adopted Dec. 21, 1982. For current provisions pertaining to such subject matter, the user's attention is directed to § 20-14.5.

Sec. 20-61. - Tattooing.#

(a) Every person, firm, or corporation engaged in the business of tattooing in the City of Hopewell shall pay a license tax of one thousand dollars ($1,000.00) which license shall not be proratable.

(b) No license shall be issued hereunder unless and until there is presented to the commissioner of the revenue a certificate from the director of public health and the chief of police permitting the operation of this business.

(Ord. No. 84-21, 8-14-84)

Cross reference — Tattoo parlors generally, § 9-41 et seq.