Article III Other License Taxes

Distiller's license and limited distiller's license, if more than 5,000 gallons but not more than 36,000 gallons manufactured during such year, $750.00; if more than 36,000 gallons manufactured during such year, $1,000; and no local license shall be required for any person who manufactures not more than 5,000 gallons of alcohol or spirits, or both, during such license year;

Brewery license and limited brewery license, if not more than 500 barrels of beer manufactured during the year in which the license is granted, $250.00, and if more than 500 barrels manufactured during such year, $1,000;

Winery license: $50.00; and

(iv)

Farm winery license: $50.00.

(b)

Wholesale Licenses. For each:

Wholesale beer license: $250.00; and

Wholesale wine license: $50.00.

(c)

Retail Licenses – Mixed Beverage. For each:

Mixed beverage restaurant license, granted to persons operating restaurants, including restaurants located on premises of and operated by hotels or motels, or other persons:

With a seating capacity at tables for up to 100 persons: $200.00;

With a seating capacity at tables for more than 100 but not more than 150 persons: $350.00;

With a seating capacity at tables for more than 150 persons but not more than 500 persons: $500.00;

Mixed beverage restaurant license for restaurants located on the premises of and operated by private, nonprofit clubs: $350.00;

Mixed beverage caterer's license: $500.00;

(iv)

Mixed beverage limited caterer's license: $100.00;

(v)

Annual mixed beverage motor sports facility license: $300.00;

(vi)

Limited mixed beverage restaurant license:

With a seating capacity at tables for up to 100 persons: $100.00;

With a seating capacity at tables for more than 100 but not more than 150 persons: $250.00; or

With a seating capacity at tables for more than 150 persons: $400.00;

(vii)

Annual mixed beverage performing arts facility license: $300.00;

(viii)

Bed and breakfast license: $40.00;

(ix)

Museum license: $10.00;

(x)

Annual mixed beverage special events license: $300.00.

(d)

Retail Licenses – On- and Off-Premises Wine and Beer. For each on-and-off premises wine and beer license issued to:

Hotels, restaurants, and clubs: $150.00;

Hospitals: $10.00;

Rural grocery stores: $37.50; and

(iv)

Historic cinema houses: $20.00.

(e)

Retail Licenses — Off-Premises Wine and Beer. For each:

Retail off-premises wine and beer license: $150.00;

Gourmet brewing shop license: $150.00; and

Confectionery license: $20.00.

(f)

Retail Licenses – Banquet, Special Event, and Tasting Licenses. For each:

Per-Day Event Licenses. For each:

Banquet license: $5.00 per license granted by the board, except for banquet licenses granted by the board pursuant to Section 4.1-215(A) of the Code of Virginia, which shall be $20.00 per license;

Mixed beverage special events license: $10.00 for each day of each event;

Mixed beverage club events license: $10.00 for each day of each event; and

(D)

Tasting license: $10.00.

Annual Licenses. For each:

Annual beer and wine banquet license: $15.00;

Designated outdoor refreshment area license: $60.00. However, for any designated outdoor refreshment area license issued pursuant to a city ordinance, the annual tax shall be $600.00;

Annual mixed beverage banquet license: $75.00;

(D)

Equine sporting event license: $10.00; and

(E)

Annual arts venue event license: $10.00.

(g)

Retail Licenses – Marketplace. For each marketplace license: $200.00. However, if the license privileges are exercised during a period of six or less consecutive months and such period is specified prior to the beginning of the license year, the annual tax shall be $100.00.

(h)

Retail Licenses – Shipper, Bottler, and Related Licenses. For each:

Wine and beer shipper's license: $10.00; and

Bottler license: $500.00.

In ascertaining the liability of a beer wholesaler to local merchants' license taxation, and in computing the local wholesale merchants' license tax on such beer wholesaler, purchases of beer up to a stated amount shall be disregarded, which stated amount shall be the amount of beer purchases which would be necessary to produce a local wholesale merchants' license tax equal to the local wholesale beer license tax paid by such wholesaler under SCC § 5.05.170 and a wholesale wine licensee to local merchants' license taxation, and in computing the local wholesale merchants' license tax on such wholesale wine licensee, purchases of wine up to a stated amount shall be disregarded, which stated amount shall be the amount of wine purchases which would be necessary to produce a local wholesale merchants' license tax equal to the local wholesale wine licensee license tax paid by such wholesale wine licensee under SCC § 5.05.170.

§ 5.05.210 License in addition to other license requirements.

As relevant, the definitions found in Section 4.1-100 of the Code of Virginia or successor provisions shall apply mutatis mutandis to the same terms used in this section.

(Code 1985 § 12-251; Ord. 2005-02; Ord. 2011-20; Ord. 2013-15; Ord. 2018-19; Ord. 2022-03; Ord. 2024-15)

§ 5.05.190 State license required.

No such license shall be issued to any person, unless the applicant shall have shown to the satisfaction of the commissioner of the revenue that the applicants hold or shall secure simultaneously therewith the proper state license provided for in Chapter 1, Title 4.1 of the Code of Virginia (1950), as amended.

(Code 1985 § 12-252)

§ 5.05.200 Delivery.

Nothing herein shall be construed so as to require any person to obtain a city license where such person is a wholesaler or distributor who maintains no place of business within the city, but merely delivers alcoholic beverages in the city.

(Code 1985 § 12-253)

No alcoholic beverage license authorized by this chapter shall be construed as exempting any licensee from any merchant's or restaurant's license, and no such license shall be transferable.

(Code 1985 § 12-254)

§ 5.05.220 Public utilities and public service companies.

(1)

Telephone Companies. All persons engaged in the business of providing telephone communication in the city shall pay for the privilege an annual license tax equal to one-half of one percent of the gross receipts for such company accruing from sales to the ultimate consumer in the city.

As used in this section, the term "gross receipts," in the case of telephone companies, shall not include charges for long-distance calls, and for all entities shall not include any amount not derived from the exercise of the licensed business in the ordinary course of business and as limited by Section 58.1-3732 of the Code of Virginia, et seq.

§ 5.05.230 Short-term rental property tax.

Telegraph Companies. On every telegraph company, agent or officer thereof, the tax shall be $100.00 for the privilege of carrying on telegraph business between this and other points in the state of Virginia, except, where the gross receipts amount to $3,000 or less, the tax shall be $60.00.

(4)

Heat, Light, and Power and Gas Companies. All persons engaged in the business of furnishing electricity or gas, or furnishing heat, light or power by means of electric current or gas in the city shall pay for the privilege an annual license tax of one-half of one percent of the gross receipts derived during the preceding calendar year; excluding, however, such services furnished to federal, state and local authorities and sales for resale to other electric or gas companies.

(5)

Any public utility company engaged in retail sales shall pay the same license as required by retailers under SCC § 5.05.170.

(Code 1985 § 12-255)

(1)

Levied Amount. Pursuant to Section 58.1-3510.6 of the Code of Virginia, there is hereby assessed and imposed on every person engaged in the short-term rental business a tax as follows:

(a)

A tax of one percent on the gross proceeds of such business as defined in subsection (3)(a) of this section; and

(b)

A tax of one-and-one-half percent on the gross proceeds of such business as defined in subsection (3)(b) of this section.

Such tax shall be in addition to the tax levied pursuant to Section 58.1-605 of the Code of Virginia. For purposes of this section, "gross proceeds" means the total amount charged to each person for the rental of daily rental property, excluding any state and local sales tax paid pursuant to the Virginia Retail Sales and Use Tax Act.

Short-Term Rental Property – Defined. For purposes of this section, "short-term rental property" means all tangible personal property held for rental and owned by a person certified to engage in the short-term rental business, except as to trailers, as defined in Section 46.2-100 of the Code of Virginia, and other tangible personal property required to be licensed or registered with the Department of Motor Vehicles, Department of Game and Inland Fisheries, or the Department of Aviation.

Short-Term Rental Business, Defined. A person is engaged in the short-term rental business if:

(a)

Not less than 80 percent of the gross rental receipts of such business in the preceding year arose from transactions involving the rental of short-term rental property, other than heavy equipment property as defined below, for periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee; or

(b)

Not less than 60 percent of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of heavy equipment property for periods of 270 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee. For the purposes of this subsection, "heavy equipment property" means rental property of an industry that is described under Section 532412 or 532490 of the 2002 North American Industry Classification System as published by the United States Census Bureau, excluding office furniture, office equipment, and programmable computer equipment and peripherals as defined in Section 58.1-3503(A)(16) of the Code of Virginia.

(c)

For purposes of determining whether a person is engaged in the short-term rental business as defined in subsections (3)(a) and (b) of this section:

A person is "affiliated" with the lessee of rental property if such person is an officer, director, partner, member, shareholder, parent or subsidiary of the lessee, or if such person and the lessee have any common ownership interest in excess of five percent;

Any rental to a person affiliated with the lessee shall be treated as rental receipts but shall not qualify for purposes of the 80 percent requirement of subsection (3)(a) of this section or the 60 percent requirement of subsection (3)(b) of this section; and

§ 5.05.240 Going out of business permits.

Any rental of personal property which also involves the provision of personal services for the operation of the personal property rented shall not be treated as gross receipts from rental; provided, however, that the delivery and installation of tangible personal property shall not mean operation for the purposes of this subsection.

(d)

A person who has not previously been engaged in the short-term rental business who applies for a certificate of registration pursuant to Section 58.1-3510.5 of the Virginia Code shall be eligible for registration upon the person's certification that the person anticipates meeting the requirements of subsection (3)(a) or (b) of this section, designated by the applicant at the time of application, during the year for which registration is sought.

(e)

In the event that the commissioner of the revenue makes a written determination that a rental business previously certified as short-term rental business pursuant to Section 58.1-3510.5 of the Virginia Code has failed to meet either of the tests set forth in subsection (3)(a) or (b) of this section during a preceding tax year, such business shall lose its certification as a short-term rental business and shall be subject to the business personal property tax with respect to all rental property for the tax year in which such certification is lost and any subsequent tax years until such time as the rental business obtains recertification pursuant to Section 58.1-3510.5 of the Virginia Code. In the event that a rental business loses its certification as a short-term rental business pursuant to this subsection, such business shall not be required to refund to customers short-term rental property taxes previously collected in good faith and shall not be subject to assessment for business personal property taxes with respect to rental property for tax years preceding the year in which the certification is lost unless the commissioner makes a written determination that the business obtained its certification by knowingly making materially false statements in its application, in which case the commissioner may assess the taxpayer the amount of the difference between short-term rental property taxes remitted by such business during the period in which the taxpayer wrongfully held certification and the business personal property taxes that would have been due during such period but for the certification obtained by the making of the materially false statements. Any such assessment, and any determination not to certify or to decertify a rental business as a short-term rental business as defined in this subsection, may be appealed pursuant to the procedures and requirements set forth in Section 58.1-3983.1 of the Virginia Code for appeals of local business taxes, which shall apply mutatis mutandis to such assessments and certification decisions.

(f)

A rental business that has been decertified pursuant to the provisions of subsection (3)(e) of this section shall be eligible for recertification for a subsequent tax year upon a showing that it has met one of the tests provided in subsection (3)(a) or (b) of this section for at least 10 months of operations during the present tax year.

(4)

Taxation of Rental Property That Is Not Short-Term Rental Property. Except for short-term rental passenger cars, rental property that is not short-term rental property shall be classified for taxation pursuant to Section 58.1-3503 of the Code of Virginia.

(5)

Collection, Return, and Remittance of Tax. Every person engaged in the short-term rental business shall collect the rental tax from the lessee of the short-term rental property at the time of the rental. The lessor of the short-term rental property shall transmit a quarterly return to the commissioner of revenue, indicating the gross proceeds derived from the short-term rental business, and shall remit therewith the payment of such tax as is due for the quarter. The quarterly returns and payment of tax shall be filed with the commissioner of revenue on or before the twentieth day of each of the months of April, July, October, and January, representing, respectively, the gross proceeds and taxes collected during the preceding quarters ending March 31st, June 30th, September 30th and December 31st. The return shall be upon such forms and setting forth such information as the commissioner of revenue may require, showing the amount of gross receipts and the tax required to be collected. The taxes required to be collected under this chapter shall be deemed to be held in trust by the person required to collect such taxes until remitted as required in this section.

(6)

Procedure upon Failure to Collect, Report, or Remit Taxes. If any person, whose duty it is so to do, shall fail or refuse to collect the tax imposed under this section and to make, within the time provided in this section, the returns and remittances required in this section, the commissioner of revenue shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the commissioner of revenue shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect such tax and to make such return and remittance, he shall proceed to determine and assess against such person the tax, penalty, and interest provided for by this section and shall notify such person, by registered mail, sent to his last known place of address, of the total amount of such tax, penalty, and interest, and the total amount thereof shall be payable within 10 days from the date of such notice. In the event such tax is not paid within 10 days from the date of the notice, the treasurer shall proceed to collect same in accordance with Chapter 9 of Title 58.1 of the Code of Virginia.

(7)

Penalty and Interest. If any person, whose duty it is so to do, shall fail or refuse to remit to the commissioner of revenue the tax required to be collected and paid under this section within the time specified in the section, there shall be added to such tax a penalty in the amount of 10 percent of the tax past due or the sum of $10.00, whichever is the greater. The assessment of such penalty shall not be deemed a defense to any criminal prosecution for failing to make any return or remittance, as required in this section. Additionally, interest on late payments of all taxes due shall be added at the rate of 10 percent per year. Penalty and interest for failure to pay the tax assessed pursuant to this section shall be assessed on the first day following the day such quarterly installment payment is due.

(8)

Exclusions and Exemptions. No tax shall be collected or assessed on (a) rentals by the commonwealth, any political subdivision of the commonwealth, or the United States; or (b) any rental of durable medical equipment, as defined in subdivision 10 of Section 58-1-609.10 of the Code of Virginia. Additionally, all exemptions applicable in Chapter 6 of Title 58.1 of the Code of Virginia (Section 58.1600 et seq.) shall apply mutatis mutandis to the short-term rental property tax.

(9)

Renter's Certificate of Registration. Every person engaging in the business of short-term rental of tangible personal property shall file an application for a certificate of registration with the commissioner of revenue. The application shall be on a form prescribed by the commissioner of revenue and shall set forth the name under which the applicant intends to operate the rental business, the location, and such other information as the commissioner may require.

Each applicant shall sign the application as owner of the rental business. If the rental business is owned by an association, partnership, or corporation, the application shall be signed by a member, partner, executive officer, or other personnel specifically authorized by the association, partnership, or corporation to sign.

Upon approval of the application by the commissioner of revenue, a certificate of registration shall be issued. The certificate shall be conspicuously displayed at all times at the place of business for which it is issued.

The certificate is not assignable and shall be valid only for the person in whose name it has been issued and the place of business designated.

(10)

Criminal Penalties for Violation of Section. Any person violating or failing to comply with any provision of this section shall be guilty of a Class 3 misdemeanor. Provided, however, if the amount of tax due and unpaid for any quarterly installment exceeds $1,000, any person failing to remit payment when due shall be guilty of a Class 1 misdemeanor.

(11)

License Tax Provisions. Every person engaged in the short-term rental business as defined herein shall be classified in the category of retail sales and shall pay a license tax equal to that imposed on retail merchants at the rate of $0.20 per $100.00 of gross receipts, as defined herein.

(Code 1985 § 12-256; Ord. 2011-21)

(1)

Any person, firm, or corporation, prior to advertising or conducting a sale for the purpose of discontinuing a retail business, or to modify the word "sale" in any advertisement with the words "going out of business" or any other words which tend to insinuate that the retail business is to be discontinued and the merchandise liquidated, shall obtain a permit to conduct such sale from the commissioner of revenue for the city of Staunton, Virginia, if said sale or any portion thereof is to be conducted within the city of Staunton, Virginia.

All applications for special sale permits required hereunder shall be accompanied by an inventory, including the kind and quantity of all goods which are to be offered for sale during the sale, and only the goods specified in the inventory list may be advertised at a reduced price or sold at a reduced price during the sale period. Goods not included on the inventory of special sale goods shall not be commingled with or added to the special sale goods.

Each special sale permit issued hereunder shall be valid for a period no longer than 60 days, and any extension of that time shall constitute a new special sale and shall require an additional permit and inventory. A maximum of two additional permits beyond the initial 60-day permit shall be granted upon application by the seller, solely for the purpose of liquidating only those goods contained in the initial inventory list and which remain unsold.

Any person, firm, or corporation who advertises such sale shall conspicuously include in the advertisement the permit number assigned for the sale by the commissioner of revenue for the city of Staunton and the effective dates of the sale, as authorized in the permit.