Every person engaged or intending to engage in any business,
calling, occupation, profession or activity engaged in with the object
of gain, benefit or advantage, in whole or in part within the limits
of the City of Walhalla, South Carolina, is required to pay an annual
license tax for the privilege of doing business and obtain a business
license as herein provided.
The following words, terms and phrases, when used in this chapter,
shall have the meanings ascribed herein. Defined terms are not capitalized
when used in this chapter unless the context otherwise requires.
BUSINESS
Any business, calling, occupation, profession or activity
engaged in with the object of gain, benefit or advantage, either directly
or indirectly.
CHARITABLE ORGANIZATION
An organization that is determined by the Internal Revenue
Service to be exempt from federal income taxes under 26 U.S.C. § 501(c)(3),
(4), (6), (7), (8), (10) or (19).
CHARITABLE PURPOSE
A benevolent, philanthropic, patriotic or eleemosynary purpose
that does not result in personal gain to a sponsor, organizer, officer,
director, trustee or person with ultimate control of the organization.
CLASSIFICATION
That division of businesses by NAICS codes 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 the
Council.
COUNCIL
The City Council of the City of Walhalla.
DOMICILE
A principal place from which the trade or business of a licensee
is conducted, directed or managed. For purposes of this chapter, a
licensee may be deemed to have more than one domicile.
GROSS INCOME
The gross receipts or gross revenue of a business, received
or accrued, for one calendar or fiscal year collected or to be collected
from business done within the municipality. If the licensee has a
domicile within the municipality, business done within the municipality
shall include all gross receipts or revenue received or accrued by
such licensee. If the licensee does not have a domicile within the
municipality, business done within the municipality shall include
only gross receipts or revenue received or accrued within the municipality.
In all cases, if the licensee pays a business license tax to another
county or municipality, then the licensee's gross income for the purpose
of computing the tax within the municipality must be reduced by the
amount of revenues or receipts taxed in the other county or municipality
and fully reported to the municipality. Gross income for business
license tax purposes shall not include taxes collected for a governmental
entity, escrow funds or funds that are the property of a third party.
The value of bartered goods or trade-in merchandise shall be included
in gross income. The gross receipts or gross revenues 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 Department of Insurance or other government
agencies. In calculating gross income for certain businesses, the
following rules shall apply:
A.
Gross income for agents shall be calculated on gross commissions
received or retained, unless otherwise specified. If commissions are
divided with other brokers or agents, then only the amount retained
by the broker or agent is considered gross income.
B.
Except as specifically required by S.C. Code Ann. § 38-7-20,
gross income for insurance companies shall be calculated on gross
premiums written.
C.
Gross income for manufacturers of goods or materials with a
location in the municipality shall be calculated on the lesser of
1) gross revenues or receipts received or accrued from business done
at the location, 2) the amount of income allocated and apportioned
to that location by the business for purposes of the business's state
income tax return, or 3) the amount of expenses attributable to the
location as a cost center of the business. Licensees reporting gross
income under this provision shall have the burden to establish the
amount and method of calculation by satisfactory records and proof.
Manufacturers include those taxpayers reporting a manufacturing principal
business activity code on their federal income tax returns.
LICENSE OFFICIAL
A person designated to administer this chapter. Notwithstanding the designation of a primary license official, the municipality may designate one or more alternate license officials to administer particular types of business licenses, including without limitation for business licenses issued to businesses subject to business license taxes under Article 20, Chapter 9, Title 58, and Chapters
7 and 45, Title 38, of the South Carolina Code.
LICENSEE
The business, the person applying for the license on behalf
of the business, an agent or legal representative of the business,
a person who receives any part of the net profit of the business or
a person who owns or exercises control of the business.
NAICS
The North American Industry Classification System for the
United States published under the auspices of the Federal Office of
Management and Budget.
PERSON
Any individual, firm, partnership, limited-liability partnership,
limited-liability company, 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 principal.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
The business license tax required by this chapter is for the
purpose of providing such regulation as may be required for the business
subject thereto and for the purpose of raising revenue for the general
fund through a privilege tax. Except as set forth below for business
licenses issued to contractors with respect to specific construction
projects, each yearly license shall be issued for the twelve-month
period of May 1 to April 30. A business license issued for a construction
contract may, at the request of the licensee, be stated to expire
at the completion of the construction project; provided any such business
license may require that the licensee file, by each April 30 during
the continuation of the construction project, a statement of compliance,
including but not limited to a revised estimate of the value of the
contract. If any revised estimate of the final value of such project
exceeds the amount for which the business license was issued, the
licensee shall be required to pay a license fee at the then-prevailing
rate on the excess amount. The provisions of this chapter and the
rates herein shall remain in effect from year to year as amended by
the Council.
It shall be 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 tax required by this chapter.
The license official shall administer the provisions of this
chapter, collect business license taxes, issue licenses, make or initiate
investigations and audits to ensure compliance, initiate denial or
suspension and revocation procedures, report violations to the municipal
attorney, assist in prosecution of violators, produce forms, undertake
reasonable procedures relating to the administration of this chapter
and perform such other duties as may be duly assigned.
The license official may, but shall not be required to, mail
written notices that business license taxes are due. 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.
Except in accordance with proper judicial order or as otherwise
provided by law, no official or employee of the municipality may divulge
or make known in any manner the amount of income or any financial
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. Any license data
may be shared with other public officials or employees in the performance
of their duties, whether or not those duties relate to enforcement
of this chapter.
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
$500 or imprisonment for not more than 30 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 in this chapter.
A determination that any portion of this chapter is invalid
or unenforceable shall not affect the remaining portions. To the extent
of any conflict between the provisions of this chapter and the provisions
of the South Carolina Business License Tax Standardization Act, as
codified at S.C. Code Ann. § 6-1-400 et seq., the Standardization
Act shall control.