Business License Ordinance - Bluffton, South Carolina...2018/08/14 · Attachment 1 ORDINANCE NO. 2018 - ___ TOWN OF BLUFFTON, SOUTH CAROLINA AN ORDINANCE AMENDING CHAPTER 6, BUSINESS

TOWN COUNCIL STAFF REPORT Department of Finance & Administration

MEETING DATE: August 14, 2018

PROJECT:

IX. 1. Consideration of an Ordinance Amending the Town of Bluffton Code of Ordinances, Chapter 6, Business License

Regulations, Article II, Business Licenses – Final Reading – Trisha Greathouse, Director of Finance & Administration

PROJECT MANAGER: Trisha Greathouse, CGFO, Director of Finance & Administration

RECOMMENDATION: To amend Municipal Code of Ordinances Chapter 6 – Businesses

and Business Regulations to reflect policy and fee schedule ordinance amendments

specific to Town Council’s goals as further stated as a Strategic Action Item of the

Town’s FY 2017-2018 Strategic Action Plan.

BACKGROUND: During the FY 2017-2018 Strategic Action Plan process, Town

Council established a road map for activities and initiatives that achieve the vision

for the Town and ensure Bluffton is poised to capitalize on opportunities that advance

key initiatives. One of the Strategic Plan’s Strategic Focus Areas is Community

Quality of Life. This Focus Area contains Action Items intended to review Town Code

and align with provisions within State Law, Unified Development Ordinances and best

practices. The goals of the business license ordinance amendment process are for

the Town to be regionally competitive and to streamline practices and the business

license application procedures to simplify the process.

CURRENT ORDINANCE: The Town’s current rate schedule exceeds 20 different rate

classes and has been in effect since January 2006 with no changes in rates or class

structure since its adoption. The current rate schedule is complicated and outdated

with varying base fees, base allowances and per thousand rates.

In response to businesses desiring a more streamlined business license process that

is less cumbersome and more uniform across the state, the Municipal Association of

South Carolina (MASC) provides a model business license ordinance that establishes

a common rate structure of eight tax classes based on the North American Industrial

Classification System or NAICS with one base allowance. Additional initiatives call for

a standard definition of gross income, standard license year, standard license due

date and an establishment of an online payment portal.

Our regional partners, the City of Beaufort, Beaufort County and the Town of Hilton

Head Island, all currently utilize the 8 rate class structure and model ordinance with

some customization. Ideally with the adoption of the Ordinance, businesses in the

region will have the same rate class based on their NAICS code whether they are

doing business in Bluffton or another municipality. However, municipalities have

adopted varying base fees, base allowances, and per thousand rates depending on

the rate class and the services, demographic and economic prospects available to the

businesses within the municipality.

COUNCIL AND COMMUNITY FEEDBACK: This spring the Town has held two Council

Workshops in March and April, a Community Workshop attended by area businesses,

the Realtors’ Association and the Greater Bluffton Chamber of Commerce, spoken to

the Old Town Bluffton Merchants Society and the Hilton Head Home Builders

Association and published and advertised a Community Survey for business input on

a number of amendment considerations. Discussions during the amendment process

and feedback received include the following:

1. Replacing the 20+ Rate Classes to 8+ Rate Classes per MASC Model

Ordinance based on NAICS codes

2. Standardized Base Allowance ($10,000)

3. Standardized Base Fee ($50) to cover administrative costs

4. Establish a per $1000 Rate - Escalated based on rate class starting at $1

5. Rates for In Town Businesses vs. Nonresident rates – Consistent with

regional partners doubling nonresident rates was supported. Subsequently

with community feedback, Council has requested staff calculate nonresident

rates at 150% and 175% of resident rates to weigh the financial impact to

businesses and the Town.

6. Establish a new Renewal Due Date of April 30th consistent with MASC’s

model ordinance and the proposed Town of Hilton Head ordinance

amendment. Additional dates considered were December 31, April 15 and

May 31st.

7. Allow Town Manager or designee the authority to adjust late fees if justified

8. Concern on the effects to Small businesses - The Model Ordinance uses the

NAICS code and bases the tax on business annual gross income. The rate

classifications based on NAICS code are calculated within an index that looks

at a business type’s ability to pay based on national averages, benefits,

equalization of tax burden, relationships of services, etc.

9. What other incentives are used by municipalities across the state?

a. Hardeeville - Fee Discounts (Similar to Bluffton’s $25 million cap)

b. Greenville – Anniversary Incentives

c. City of Beaufort – New Resident Business Incentive (similar to

proposed in amendment based on feedback from Council and

Community Workshop)

d. Requested Incentives for Resident Businesses with Multiple Locations

(10%)

i. Same Owner Structure

ii. Same NAICS Code

REVENUE IMPACT: MASC provides municipalities with a dashboard to help forecast

the effect of changes to the class structure, base allowance, base fee, and rate per

thousand for resident and non-resident business taxes. The Town of Bluffton issued

approximately 3100 business licenses in Calendar Year (CY) 2017. Using the

dashboard the Town estimated the increases/decreases and averages for various

industries doing business in Bluffton. Most changes are due to the doubling of

nonresident rates consistent with regional partners or changes in the per thousand

rate based on the classification under the MASC Model Ordinance.

In addition to the classification and rate schedule changes, two new incentives are

proposed. The New Resident Business Incentive will continue to license new

businesses for the Base Fee for the first year of business and then allow for a prior

year gross income reduction of 40% in the first renewal year, 20% prior year gross

income reduction in the second renewal year, a 10% prior year gross income

reduction in the third year of renewal and 0% prior year gross income reduction in

the fourth year of renewal and beyond. The Multiple Location Incentive allows a

business owner(s) who maintains two (2) or more resident business locations under

the same NAICS code to deduct 10% for each location from its prior year gross

income in its annual license tax calculation. This incentive promotes economic

development of needed services for better accessibility across the Town’s 54 square

miles to all citizens.

With the effects of the changes in the fee schedule, new proposed incentives, and

anticipated new business generated within the Town, staff expects the difference in

Business License Revenue to be manageable within current proposed budget

forecasts for FY 2019. Future year adjustments to the fee schedule are anticipated

in the event the Town under performs or overshoots the budget forecast. During the

June 2018 Town Council Meeting, Town Council requested staff calculate the revenue

effects for FY 2019 if nonresident rates were calculated at 150% versus 175% versus

the originally budgeted 200%(doubling) of in town rates.

The results are reported in the chart below:

FY19 Business License Revenue Budget $1,750,000

Revenue Reductions

All Businesses

Class 8 only

maintaining classes 1-7 at 200%

Non Resident Rates 175% ($132,250) ($91,955)

Non Resident Rates 150% ($264,505) ($183,910)

Additionally, Council requested the number of in town versus nonresident businesses

per class.

The results are reported in the chart below:

Class In Town Nonresident

1 410 163

2 383 342

3 229 148

4 10 1

5 55 3

6 62 56

7 27 15

8.1 237 936

Total 1413 1664

NEXT STEPS: With the adoption of these items in a simplified and standard model,

Town Staff will be able to establish simplified business license procedures in

conjunction with the ordinance effective date including an online payment portal.

The ordinance will be effective January 1, 2019 for the start of the new business

license year.

CHANGES SINCE FIRST READING May 8, 2018:

Clerical Changes - Clarification of Amendments to Section 6-19 through 6-45 as per

ordinance amendment procedure and changing Exhibit A to Appendix A for the rate

class schedule consistent with other notations (Attachments 1 and Attachment 1

Exhibit A)

Clarification of sunset of the new business incentive within the 4th renewal year in

Sec 6-22 License Tax (d) of the Ordinance (Attachment 1 Exhibit A).

Addition of language “General or prime contractors will be responsible and will pay for the business license of any subcontractor doing work on the project if the

subcontractor is found to be operating without a town business license.” Within Appendix A of the Ordinance for rate class 8.1 consistent with Beaufort County’s

Business License Ordinance. (Attachment 1 Exhibit A)

Changing the renewal deadline from May 31st to April 30th consistent with the

MASC Model Ordinance and newly proposed Town of Hilton Head deadline.

ATTACHMENTS:

1. Ordinance Chapter 6 Article 2 Sec. 6-19 through 6-45 – Business and Business

Regulations

2. Recommended Motion

Attachment 1

ORDINANCE NO. 2018 - ___

TOWN OF BLUFFTON, SOUTH CAROLINA

AN ORDINANCE AMENDING CHAPTER 6, BUSINESS AND BUSINESS REGULATIONS,

ARTICLE II, BUSINESS LICENSES AND REGULATIONS, SEC. 6-19 THROUGH 6-45 OF

THE TOWN CODE TO INCLUDE LIMITING THE NUMBER OF RATE CLASSES,

ADJUSTING THE FEE SCHEDULE, CHANGING THE RENEWAL DATE AND

INCLUDING ADDITIONAL INCENTIVES

WHEREAS, the Town of Bluffton desires to improve the general safety, welfare, health

and properties of the citizens of the Town of Bluffton; and,

WHEREAS, to establish the necessary provisions to accomplish the above, the Town of

Bluffton has the authority to enact resolutions, ordinances, regulations, and procedures pursuant

to Section 5-7-30 of the South Carolina Code of Laws, 1976, as amended; and,

WHEREAS, the Town of Bluffton Town Council shall from time to time examine

ordinances to ensure that they are properly regarded, enforced, sufficient and satisfactory to the

needs of the community and can further suggest amendments as Town Council deems appropriate;

and,

WHEREAS, the Town of Bluffton Town Council desires to amend Chapter 6, Business

and Business Regulations, Article II, Business Licenses and Regulations, to include limiting the

number of rate classifications as recommended by the Municipal Association of South Carolina,

adjusting the fee schedule, changing the renewal date to April 30th consistent with our regional

partners, and creating additional business license incentives for new businesses and those

businesses having multiple physical locations within the Town.

NOW, THEREFORE, BE IT ORDERED AND ORDAINED BY THE TOWN COUNCIL

OF THE TOWN OF BLUFFTON, SOUTH CAROLINA, in accordance with the foregoing, the

Town hereby amends the Code of Ordinances for the Town of Bluffton as follows:

SECTION 1. AMENDMENT. The Town of Bluffton hereby amends Chapter 6,

Business and Business Regulations, Article II, Business Licenses and Regulations sec. 6-

19 through 6-45, of the Code of Ordinances for the Town of Bluffton, South Carolina, to

amend the ordinance and rate classes as recommended by the Municipal Association of

South Carolina, as shown on Exhibit A attached hereto and fully incorporated herein by

reference.

SECTION 2. REPEAL OF CONFLICTING ORDINANCES. All ordinances or

parts of ordinances that are inconsistent with this Ordinance are hereby repealed to the

extent of such inconsistency.

Attachment 1

SECTION 3. ORDINANCE IN FULL FORCE AND EFFECT. This entire

Ordinance shall take full force and effect upon adoption.

DONE, RATIFIED AND ENACTED this ____ day of ___________, 2018.

This Ordinance was read and passed at first reading on _______________, 2018.

Lisa Sulka, Mayor

Town of Bluffton, South Carolina

Kimberly Chapman, Clerk


This Ordinance was read and passed at final reading on _________________, 2018.

Lisa Sulka, Mayor


Kimberly Chapman, Clerk


Exhibit A to the Staff Report Attachment 1

Chapter 6 - BUSINESSES AND BUSINESS REGULATIONS

ARTICLE I. - IN GENERAL

Secs. 6-1—6-18. - Reserved.

ARTICLE II. - BUSINESS LICENSES AND REGULATIONS[1]

Footnotes:

--- (1) ---

State Law reference— Business license tax authorized for municipalities, S.C. Code 1976, § 5-7-30; imposition or increase of business license tax, S.C. Code 1976, § 6-1-315.

Sec. 6-19. - License required.

Every person engaged or intending to engage in any calling, business, occupation or profession in whole or in part, within the limits of the Town of Bluffton, South Carolina, is required to pay an annual license tax for the privilege of doing business and obtain a business license as herein provided.

(Ord. No. 2006-01, § 4.3.10, 1-11-2006; Ord. No. 2013-10 , Att. 1, 11-12-2013; Ord. No. 2014-13

, Att. 1, 8-12-2014; Ord. No. 2017-01 , § 1(Exh. A), 2-14-2017)

Sec. 6-20. - Definitions.

The following words, terms and phrases, when used in this article, shall have the meaning ascribed herein:

Base of operation means a food service establishment, or any other permitted location in which food, containers or supplies are kept, handled, prepared, packaged, stored, or placed in containers for subsequent transport, sale or service elsewhere.

Business means a calling, occupation, profession, or activity engaged in with the object of gain, benefit or advantage, either directly or indirectly.

Charitable organization means an organization that is determined by the Internal Revenue Service to be exempt from Federal Income taxes under 26 U.S.C. Section 501 (c)(3), (4), (6), (7), (8), (10) or (19).

Charitable purpose means a benevolent, philanthropic, patriotic, or eleemosynary purpose which does not result in personal gain to a sponsor, organizer, officer, director, trustee or person with ultimate control of the organization.

Classification means that division of businesses by major groups subject to the same license rate as determined by a calculated index of ability to pay based on national averages, benefits, equalization of tax burden, relationships of services, or other basis deemed appropriate by Town Council.

Fixed food service establishment (also referred to as brick and mortar restaurants ) means a non-mobile public or private establishment which prepares and serves meals, lunches, short orders, sandwiches, frozen desserts, or other edible products directly to the consumer either for carry out or service within the establishment. The term includes restaurants, coffee shops, cafeterias, short order cafes, luncheonettes, taverns, lunchrooms, places which sell retail sandwiches or salads, soda fountains, and similar facilities by whatever name called. This term shall not apply to establishments offering food service incidental to their operations.

Food truck encompasses all mobile food service units with the exception of pushcarts. Food trucks shall be no larger than 30 feet long and eight feet wide.

http://newords.municode.com/readordinance.aspx?ordinanceid=620367&datasource=ordbank





Gross income means the gross receipts or gross revenue total income of a business, received or

accrued, for one calendar year collected or to be collected from business done within the Town, excepting therefrom income earned outside of the Town on which a license tax is paid to some other Municipality or a County and fully reported to the Town. Gross income for brokers or agents means gross commissions received or retained, unless otherwise specified. Gross income for insurance companies means gross premiums collected. Gross income for business license tax purposes shall not include taxes collected for a governmental entity, escrow funds, or funds which are the property of a third party. The value of bartered goods or trade-in merchandise shall be included in gross income. The gross income for business license purposes may be verified by inspection of returns and reports filed with the Internal Revenue Service, the South Carolina Department of Revenue, the South Carolina Insurance Commission, or other government agency.

Ice cream truck is defined as a motor vehicle containing a commercial freezer and from which a vendor sells frozen prepackaged food products such as ice cream, frozen yogurt, frozen custard, flavored frozen water and similar products.

License official means a person designated to administer this article.

Licensee means 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.

Lot means an area designated as a separate and distinct parcel of land on a legally recorded subdivision plat or legally recorded deed as recorded with the Office of the Beaufort County Register of Deeds.

Mobile food service unit means a trailer, pushcart, vehicle vendor or any other similar conveyance operating as an extension of and under the managerial authority of the permit holder licensed at its permitted base of operation. The mobile food service unit and its permitted base of operation together make a mobile food service establishment.

Mobile retail vendor vehicle is defined as a vehicle that is used for operating a mobile vending retail use that is other than a food truck.

Municipality means the Town of Bluffton, South Carolina.

Non-resident means any business which is not located within the Municipality.

Person means any individual, firm, partnership, LLP, LLC, cooperative non-profit 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.

Pushcart means a human propelled, self-contained, enclosed service cart that operates at pre-determined locations as approved by Town of Bluffton. Pushcarts shall be no larger than ten feet long and five feet wide feet.

Resident means any business which is located within the Municipality.

Town means The Town of Bluffton, South Carolina.


, Att. 1, 8-12-2014; Ord. No. 2017-01 , § 1(Exh. A), 2-14-2017)

Sec. 6-21. - Purpose and duration.

The business license levied by this article 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. Each license shall be issued for one (1) calendar year ending December 31. The






provisions of this article and the rates herein shall remain in effect from year to year as amended by Town Council.


, Att. 1, 8-12-2014)

Sec. 6-22. - License tax.

(a) The required license tax shall be paid for each business subject hereto according to the applicable rate classification on or before the 15th 30th day of April Aprilin each year.

(b) A separate license shall be required for each place of business and for each classification or business conducted at one place. If gross income cannot be separated for classifications at one location, the license tax shall be computed on the combined gross income for the classification requiring the highest rate. A license tax based on gross income shall be computed on the gross income for the preceding calendar or fiscal year. The tax for a new business shall be based on the minimum payment (base fee) under the Rate Class in which the business falls. No refund shall be made for a business that is discontinued.

(c) When any new business taxable hereunder is begun on or after January first, but before July first, the full amount of the tax shall be due. New businesses beginning on or after July first shall be required to pay one-half of the license tax otherwise prescribed.

(d) The tax for a new resident business during the first year of operation or portion thereof shall be the

base tax for the classification for that business as determined by the license official using the

classification rate schedules and details below, and thereafter, the tax for a new resident business shall

be as follows:

Year of Operation Gross Income Reduction

1st Renewal 40%

2nd Renewal 20%

3rd Renewal 10%

4th Renewal and beyond 0%


, Att. 1, 8-12-2014)

Sec. 6-23. - Registration required.

(a) The owner, agent or legal representative of every business subject to this ordinance, whether listed in the classification index or not, shall register the business and make application for a business license on or before the due date of each year; provided, a new business shall be required to have a business license prior to operation within the municipality. A license for a bar (NAICS 722410) must be issued in the name of the individual who has been issued a State alcohol, beer or wine permit or license and will have actual control and management of the business.

(b) Application shall be on a form provided by the license official which shall contain the social security number and/or the employer's federal identification number, the business name as reported on the South Carolina Income Tax Return, and all information about the applicant and the licensee and the

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business deemed appropriate to carry out the purpose of this ordinance by the license official. Applicants may be required to submit copies or portions of State and Federal Income Tax returns reflecting gross income figures.

(c) The applicant shall certify under oath that the information given in the application is true, that the gross income is accurately reported without any unauthorized deductions, and that all assessments and personal property taxes on business property and other monies due and payable to the Town have been paid.

(d) Insurance agents and brokers shall report the name of each insurance company for which a policy was issued and the total premiums collected for each company for each type of insurance coverage on a form approved by the license official. An insurance agent not employed by a company shall be licensed as a broker.


, Att. 1, 8-12-2014)

Sec. 6-24. - Deductions; exemptions; charitable organizations.

(a) No deductions from gross income shall be made except income earned outside of the Town on which a license tax is paid to some other municipality or county, and fully reported to the Town, taxes collected for a governmental entity, or income which cannot be included for computation of the tax pursuant to State or Federal law. The applicant shall have the burden to establish the right to exempt income by satisfactory records and proof.

(b) No person shall be exempt from the requirements of the ordinance by reason of the lack of an established place of business within the municipality, unless exempted by State or Federal law. The license official shall determine the appropriate classification for each business in accordance with the latest issue of the North American Industry Classification System (NAICS) for the United States published by the Office of Management and Budget. No person shall be exempt from this ordinance by reason of the payment of any other tax, unless exempted by State law, and no person shall be relieved of liability for payment of any other tax or fee by reason of application of this ordinance.

(c) A charitable organization shall be exempt from the business license tax on its gross income unless it is deemed a business subject to a business license tax on all or part of its gross income as provided in this section. A charitable organization or any for-profit affiliate of a charitable organization, that reports income from for-profit activities, or unrelated business income, for Federal income tax purposes to the Internal Revenue Service shall be deemed a business subject to a business license tax on the part of its gross income from such for-profit activities or unrelated business income.

A charitable organization shall be deemed a business subject to a business license tax on its total gross income if (1) any net proceeds of operation, after necessary expenses of operation, inure to the benefit of any individual or any entity that is not itself a charitable organization as defined in this ordinance, or (2) any net proceeds of operation, after necessary expenses of operation, are used for a purpose other than a charitable purpose as defined in this ordinance. Excess benefits or compensation in any form beyond fair market value to a sponsor, organizer, officer, director, trustee or person with ultimate control of the organization shall not be deemed a necessary expense of operation.


, Att. 1, 8-12-2014)

Sec. 6-25. - False application unlawful.

It shall be unlawful for any person subject to the provisions of this ordinance 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 ordinance.









, Att. 1, 8-12-2014)

Sec. 6-26. - Display and transfer.

(a) All persons shall display the license issued to them on the original form provided by the license official in a conspicuous place in the business establishment at the address shown on the license. A transient or non-resident shall carry the license upon his person or in a vehicle used in the business readily available for inspection by any authorized agent of the Town.

(b) A change of address must be reported to the license official within ten (10) days after removal of the business to a new location and the license will be valid at the new address upon written notification by the license official and compliance with zoning and building codes. Failure to obtain the approval of the license official for a change of address shall invalidate the license and subject the licensee to prosecution for doing business without a license. A business license shall not be transferable and a transfer of controlling interest shall be considered a termination of the old business and the establishment of a new business requiring a new business license, based on old business income.


, Att. 1, 8-12-2014)

Sec. 6-27. - Administration of article.

The license official shall administer the provisions of this article, collect license taxes, issue licenses, make or initiate investigations and audits to insure compliance, initiate denial or suspension and revocation procedures, report violations to the Town Attorney, assist in prosecution of violators, produce forms, make reasonable regulations relating to the administration of this ordinance, and perform such other duties as may be duly assigned.


, Att. 1, 8-12-2014)

Sec. 6-28. - Inspection and audits.

(a) For the purpose of enforcing the provisions of this ordinance, the license official or other authorized agent of the Town is empowered to enter upon the premises of any person subject to this ordinance to make inspections, examine and audit books and records. It shall be unlawful for any such person to fail or refuse to make available the necessary books and records. In the event an audit or inspection reveals that the licensee has filed false information, the costs of the audit shall be added to the correct license tax and late penalties in addition to other penalties provided herein. Each day of failure to pay the proper amount of license tax shall constitute a separate offense.

(b) The license official shall make systematic inspections and random audits of all businesses within the Town to insure compliance with the ordinance. Financial information obtained by inspections and audits shall not be deemed public records, and the license official shall not release the amount of license taxes paid or the reported gross income of any person by name without written permission of the licensee, except as authorized by this ordinance, State or Federal law, or proper judicial order. Statistics compiled by classifications are public records.


, Att. 1, 8-12-2014)

Sec. 6-29. - Assessments; payment under protest; appeal.














(a) If a person fails to obtain a business license or to furnish the information required by this ordinance or the license official, the license official shall examine such records of the business or any other available records as may be appropriate, and conduct such investigations and statistical surveys as the license official may deem appropriate to assess a license tax and penalties as provided herein.

(b) A notice of assessment shall be served by certified mail or personal service. An application for adjustment of the assessment may be made to the license official within five (5) days after the notice is mailed or personally served or the assessment will become final. The license official shall establish a uniform procedure for hearing an application for adjustment of assessment and issuing a notice of final assessment.

(c) A final assessment may be appealed to the Town Council only by payment in full of the assessment under protest within five (5) days and the filing of written notice of appeal within ten (10) days after payment pursuant to the provisions of this ordinance relating to appeals to Town Council.


, Att. 1, 8-12-2014)

Sec. 6-30. - Delinquent license taxes; partial payment.

(a) For non-payment of all or any part of the correct license tax, the License Official shall levy and collect a late penalty of five percent (5%) of the unpaid tax for each month or portion thereof after the due date until paid. Penalties License taxes may not be waived. If any license tax remains unpaid for sixty (60) days after its due date, absent extraordinary and compelling circumstances, the license official shall report it to the Town Manager and/or Town Attorney for appropriate action.

(b) Partial payment may be accepted by the license official to toll imposition of penalties on the portion paid; provided, however, no business license shall be issued or renewed until the full amount of the tax due, with penalties, has been paid.

(c) For good cause shown, but not otherwise, a business may petition the town manager, or

designee for a reduction of the penalties otherwise due when the failure to pay is not willful and is

more than mere oversight and inadvertence.


, Att. 1, 8-12-2014)

Sec. 6-31. - Notice.

The License Official may, but shall not be required to, mail written notices that 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 Town three (3) 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.


, Att. 1, 8-12-2014; Ord. No. 2015-07 , § 1(Exh. A), 3-10-2015)

Sec. 6-32. - Denial of license.

The Town Manager, or designee, shall deny a license, including renewals and transfers thereof, to an applicant when the Town Manager, or designee, determines:

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(a) The application is incomplete, contains a misrepresentation, false or misleading statement, evasion or suppression of a material fact; or

(b) The activity for which a license is sought is unlawful or constitutes a public nuisance per se or per accidens; or

(c) The applicant, licensee, or prior licensee or the person in control of the business has been convicted of an offense under a law or ordinance regulating business, a crime involving dishonest conduct or moral turpitude, or an unlawful sale of merchandise or prohibited goods; or

(d) The applicant, licensee, or prior licensee or the person in control of the business has engaged in a unlawful activity, safety violation as defined in section 18-238, or other nuisance related to the business or to a similar business in the Municipality or in another jurisdiction; or

(e) The applicant, licensee, or prior licensee or the person in control of the business is delinquent in the payment to the Municipality of any tax, betterment, fine, fee or other municipal charge, including but not limited to, business personal property tax, real property tax, accommodations tax, or hospitality tax; or

(f) The license for the business or for a similar business of the licensee in the Municipality or another jurisdiction has been denied, suspended or revoked in the previous license year.


, Att. 1, 8-12-2014; Ord. No. 2015-07 , § 1(Exh. A), 3-10-2015)

Sec. 6-33. - Suspension or revocation of license.

The Town Manager, or designee, may suspend and/or revoke any license issued under the provisions of this chapter whenever the licensee, or any officer, employee, partner or agent thereof:

(1) Has been mistakenly or improperly issued a license or has obtained a license issued contrary to law; or

(2) Has breached any condition upon which the license was issued or has failed to comply with the provisions of this chapter; or

(3) Has obtained a license through a fraud, misrepresentation, a false or misleading statement, evasion, omission or suppression of a material fact in the license application; or

(4) Has been convicted of an offense under a law or ordinance regulating business, a crime involving dishonest conduct or moral turpitude, or an unlawful sale of merchandise or prohibited goods; or

(5) Has engaged in any unlawful activity, safety violation as defined in section 18-238, or other nuisance related to the business, or has permitted the same; or

(6) Is delinquent in the payment to the Municipality of any tax, betterment, fine, fee or other municipal charge, including but not limited to, business personal property tax, real property tax, accommodations tax, or hospitality tax.


, Att. 1, 8-12-2014; Ord. No. 2015-07 , § 1(Exh. A), 3-10-2015)

Sec. 6-34. - Appeals; hearings by Council.

(a) Any applicant or licensee aggrieved by a decision, final assessment, suspension or denial of a business license by the Town Manager, or designee, may appeal the decision to the Town Council by written request stating the reasons therefore, filed with the Town Manager, or designee, within ten days after service of the notice of the decision, final assessment, suspension or denial. If a licensee










timely files an appeal, any assessment or suspension shall be stayed until Town Council renders a written decision on the appeal or the proposed revocation.

(b) An appeal or a hearing on proposed revocation shall be held by the Town Council within 45 days after receipt of a request for appeal or service of notice of suspension, whichever occurs first, at a regular or special meeting of which the applicant or licensee has been given written notice, unless such hearing is continued by agreement of the applicant or licensee and the Town Manager, or designee. At the hearing, all parties shall have the right to be represented by counsel, to present testimony and evidence and to cross-examine witnesses. The proceedings shall be recorded and transcribed at the expense of the party requesting the proceedings. The rules of evidence and procedure prescribed by Town Council shall govern the hearing. Town Council shall, by majority vote of members present, render a written decision based on findings of fact and application of the standards herein which shall be served upon all parties or their representatives and shall be the final decision of the Town.


, Att. 1, 8-12-2014; Ord. No. 2015-07 , § 1(Exh. A), 3-10-2015)

Sec. 6-35. - Permission to use streets required.

It shall be unlawful for any person to construct, install, maintain or operate in, on, above or under any street or public place under control of the Town any line, pipe, cable, pole, structure or facility for utilities, communications, cablevision or other purposes without a consent agreement or franchise agreement issued by Town Council by ordinance which prescribes the term, fees and conditions for use.


, Att. 1, 8-12-2014)

Sec. 6-36. - Fees required.

The annual fee for use of streets or public places authorized by a consent agreement or franchise agreement shall be set by the ordinance approving the agreement and shall be consistent with limits set by State law. Existing franchise agreements shall continue in effect until expiration dates in the agreements. Franchise and consent fees shall not be in lieu of or be credited against business license tax unless specifically provided by the franchise or consent agreement.

(Ord. No. 2006-01, § 4.3.44, 1-11-2006; Ord. No. 2014-13 , Att. 1, 8-12-2014)

Sec. 6-37. - Confidentiality.

Except in accordance with a proper judicial order or as otherwise provided by law, it shall be unlawful for any official or employee to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required under this ordinance. 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 the license ordinance.


, Att. 1, 8-12-2014)

Sec. 6-38. - Violations.













Any person violating any provision of this ordinance shall be deemed guilty of an offense and shall be subject to a fine of up to $500.00 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 herein.


, Att. 1, 8-12-2014)

Sec. 6-39. - Classification and rates.

(a) The Class Structure Model by the North American Industry Classification System code,

designated as Appendix B to this ordinance, may be amended by the Council from time to

time, and current copies shall be filed in the office of the municipal clerk. Appendix B is a

tool for classification and not a limitation on businesses subject to a license tax. The License

Official shall determine the proper class for a business according to the applicable NAICS

code.The sectors of businesses included in each rate class are listed with the United States North

American Industry Classification System (NAICS) codes. The alphabetical index in this ordinance is a tool for classification, not a limitation on businesses subject to a license tax. The license official shall determine the proper class for a business according to the applicable NAICS manual, whether or not the business is listed in the alphabetical index.

(b) The license tax for each class of businesses subject to this ordinance shall be computed in

accordance with the Rate Schedule, designated as Appendix A to this ordinance, which may

be amended by the Council from time to time and a current copy filed in the office of the

municipal clerk.The license tax for each class of businesses subject to this ordinance shall be

computed in accordance with the rate schedule, which may be amended by the Town Council from time to time and a current copy filed in the office of the municipal clerk. The License Official shall determine the proper class for a business according to the applicable North American Industry Classification System (NAICS) and Town of Bluffton Rate Classification Index and Tax Schedule.

(c) A cap of $25,000,000.00 is extended to all businesses such that the annual gross receipts of any one business exceeding this cap are exempt from the business license rates outlined herein. This does not apply to any other fees paid to other agencies for the Town.

(d) When a business owner(s) maintains two (2) or more resident business locations under the same NAICS code as deemed proper by the license official, each location may deduct 10% from its annual gross income in its annual license tax calculation. This does not apply to any other fees paid to other agencies for the Town.

(Ord. No. 2006-01, § 4.3.52, 1-11-2006; Ord. No. 2010-14 , 8-10-2010; Ord. No. 2013-10 , Att. 1,

11-12-2013; Ord. No. 2014-13 , Att. 1, 8-12-2014)

Secs. 6-40—6-42. - Reserved.

Sec. 6-40. - Insurance companies and brokers for nonadmitted fire and casualty insurers.

(a) Insurance companies: Except as to fire insurance, "gross premiums" means gross premiums written for policies for property or a risk located within the Municipality. In addition, "gross premiums" shall include premiums written for properties that are sold, solicited, negotiated, taken, transmitted,

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received, delivered, applied for, produced or serviced by (1) the insurance company's office located in the Municipality, (2) the insurance company's employee conducting business within the Municipality, or (3) the office of the insurance company's licensed or appointed producer (agent) conducting business within the Municipality, regardless of where the property or risk is located, provided no tax has been paid to another municipality in which the property or risk is located based on the same premium.

Solicitation for insurance, receiving or transmitting an application or policy, examination of a risk, collection or transmitting of a premium, adjusting a claim, delivering a benefit, or doing any act in connection with a policy or claim shall constitute conducting business within the Municipality, regardless of whether or not an office is maintained in the Municipality.

As to fire insurance, "gross premiums" means gross premiums (1) collected in the municipality, and/or (2) realized from risks located within the limits of the municipality. Gross premiums shall include all business conducted in the prior year. Gross premiums shall include new and renewal bus iness without deductions for any dividend, credit, return premiums or deposit.

Declining rates shall not apply.

Life, Health and Accident ..... 0.75% of Gross Premiums

Fire and Casualty (Licensed in SC) ..... 2% of Gross Premiums

Title Insurance ..... 2% of Gross Premiums

(b) Notwithstanding any other provisions of this ordinance, license taxes for insurance companies shall be payable on or before May 31 in each year without penalty. The penalty for delinquent payments shall be five percent (5%) of the tax due per month, or portion thereof, after the due date until paid.

(c) Any exemptions in the business license ordinance for income from business in interstate commerce are hereby repealed. Gross income from interstate commerce shall be included in the gross income for every business subject to a business license tax.

(d) Pursuant to S.C. Code Ann. §§ 38-45-10 and 38-45-60, the Municipal Association of South Carolina, (the Association), by agreement with the Municipality, is designated the municipal agent for purposes of administration of the municipal broker's premium tax. The Agreement with the Association for administration and collection of current and delinquent license taxes from insurance companies as authorized by S.C. Code § 5-7-300 and administration of the municipal broker's premium tax in the form attached hereto is approved, and the Mayor is authorized to execute it.

[The South Carolina General Assembly, in order to ensure consistency with the federal Non-admitted and Reinsurance Reform Act of 2010 ("NRRA"), ratified an act (Rat# 283) on June 28, 2012, amending S.C. Code §§ 38-7-16 and 38-45-10—38-45-195. The act establishes a blended broker's premium tax rate of six percent comprised of a four percent state broker's premium tax and a two percent municipal broker's premium tax. The act states a municipality may not impose on brokers of non-admitted insurance in South Carolina an additional license fee or tax based upon a percentage of premiums.]


, Att. 1, 8-12-2014)

Sec. 6-41. - Telecommunication tax.

(a) Notwithstanding any other provisions of the business license ordinance, the business license tax for "retail telecommunication services", as defined in S.C. Code § 58-9-2200, shall be at the maximum rate authorized by S.C. Code § 58-9-2220, as it now provides or as provided by its amendment. The business license tax year shall begin on January first of each year. Declining rates shall not apply.

(b) In conformity with S.C. Code § 58-9-220, the business license tax for "retail telecommunication services" shall apply to the gross income derived from the sale of retail telecommunication services


for the preceding calendar or fiscal year which either originate or terminate in the Municipality and which are charged to a service address within the Municipality regardless of where these amounts are billed or paid and on which a business license tax has not been paid to another Municipality. The measurement of the amounts derived from the retail sale of mobile telecommunication services shall include only revenues from the fixed monthly recurring charge of customers whose service address is within the boundaries of the municipality. For a business in operation for less than one year, the amount of the business license tax shall be computed on a 12-month projected income.

(c) The business license tax for "retail telecommunication services" shall be due on the first day of January of each year and payable by January 31 of that year, without penalty.

(d) The delinquent penalty shall be five percent (5%) of the tax due for each month, or portion thereof, after the due date until paid.

(e) Exemptions in the business license ordinance for income from business in interstate commerce are hereby repealed. Properly apportioned gross income for interstate commerce shall be included in the gross income for every business subject to a business license tax.

(f) Nothing in this ordinance shall be interpreted to interfere with continuing obligations of any franchise agreement or contractual agreement in the event that the franchise or contractual agreement should expire after December 31, 2003.

(g) All fees collected under such a franchise or contractual agreement expiring after December 31, 2003, shall be in lieu of fees or tax, which might otherwise be authorized by this ordinance.

(h) As authorized by S.C. Code § 5-7-300, the Agreement with the Municipal Association of South Carolina for collection of current and delinquent license taxes from telecommunications companies pursuant to S.C. Code § 58-9-2200 shall continue in effect.


, Att. 1, 8-12-2014)

Sec. 6-42. - Town of Bluffton business license tax schedule.

Rate Class Resident/

Nonresident

Minimum

Rate

Minimum

Gross

Receipt

Rate Per

Thousand or

Fraction

Thereof Over

Minimum Gross

1 N/A $ 50.00 $ 1,000.00 $2.00

2 N/A 70.00 5,000.00 2.00

3 N/A 50.00 5,000.00 4.00

4 N/A 50.00 5,000.00 2.00

5 N/A 50.00 5,000.00 1.00


6 N/A 30.00 5,000.00 2.00

7 N/A 50.00 10,000.00 2.00

8 N/A 100.00 10,000.00 4.00

9 N/A 50.00 15,000.00 2.00

10 N/A 50.00 20,000.00 2.00

11 N/A 50.00 25,000.00 2.00

12 N/A 50.00 25,000.00 1.00

13 N/A 50.00 50,000.00 1.00

14 N/A 50.00 2,000.00 2.00

15-A Resident 50.00 25,000.00 0.50

15-B Nonresident 70.00 25,000.00 0.50

16 N/A 70.00 50,000.00 2.00

17-A

(Subcontractor) Resident 50.00 20,000.00 1.00

17-B

(Subcontractor) Nonresident 100.00 20,000.00 1.00

17-C

(Gen Contractor/

Home Builder)

Resident 100.00 25,000.00 1.00

17-D

(Gen Contractor/

Home Builder)

Nonresident 200.00 25,000.00 1.00

18-A Resident 30.00 30,000.00 2.00


18-B Nonresident 50.00 5,000.00 2.00

19 N/A 100.00 50,000.00 1.00

20 Note: For License tax in Rate Class 20, see below

25 — Non Profit N/A N/A N/A N/A

Rate

Class Miscellaneous Businesses Fee

NAICS

Codes

20-A

Funeral Homes and Funeral Services:

Gross Income Not Exceeding $75,000.00

Each Additional $1,000.00 or Fraction Thereof

$100.00

2.00 812210

20-B

Bootblack/Shoeshine Stands (Not in connection with Barbershops):



100.00

4.00 812990

Child Care Business (including For Profit Day Care Centers,

Kindergartens, and the Like): 624410

20-C Family Child Care Home—Capacity up to 6 Children 30.00

20-D Group Child Care Home—Capacity of 7-12 Children 40.00

20-E Child Care Center—Capacity of 13 or more Children 50.00

20-F

Cemeteries and Crematories:



100.00

2.00 812210

20-G Other Performing Arts Companies (Carnival, Circus or Similar Show):

Per Week with Location Approved by Council and Chief of Police 400.00 711190

20-H Dances (Public, where an admission is charged except where sponsored

by a non-profit organization):

Gross Income Not Exceeding $200.00

50.00

2.00 713990


Each Additional $100.00 or Fraction Thereof

20-I Theater Companies and Dinner Theater: Per Day 55.00 711110

20-J

Motor Vehicle Parts (Used)—Merchant Wholesalers:



100.00

2.00 423140

20-K

Palmist, Clairvoyant, Phrenologist, and the Like (Location to be

Approved by Council):

Per Day

Per Year

220.00

1,000.00

812990

20-L

Telephone Company (On Business Performed Exclusively within the

Town):



400.00

2.00 443112

(Ord. No. 2006-01, tax sch., 1-11-2006; Ord. No. 2013-10 , Att. 1, 11-12-2013; Ord. No. 2014-13

, Att. 1, 8-12-2014)

Sec. 6-43. - Business License Incentive Program.

(a) There shall be a new Business License Incentive Program to provide incentive to qualified businesses whereby new jobs are both created and sustained as outlined in the following criteria:

(1) Business location is on real property in the Town;

(2) Payment of Town Business License Tax is received in full by the due date;

(3) Business License Abatement Application is completed and filed with full payment of Business License Tax;

(4) Corporate headquarters is defined as the national or regional operations of a corporation, real estate investment trust, general or limited partnership, or comparable business entity provided the business operations has offices, production facilities, shipping locations, wholesale facilities, or retail outlets in other states. A majority of the management, legal, planning, marketing, and personnel operations must be handled or supervised from the corporate headquarters. The headquarters must have responsibility for an area including South Carolina and at least two other states and/or international regions.

(5) Research and development is defined as those facilities or enterprises devoted directly and primarily to research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. The facility must be a separate facility devoted primarily to research and development as defined in this section. The





abatement does not include facilities used in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects.

(6) High technology growth businesses are defined as those enterprises which have as the primary revenue component of their business activity the earnings derived from the design, engineering, development, or production of innovative technology in businesses which are expanding significantly in the world economy. Examples include companies primarily engaged in activities such as: Internet technology, digital media, biotechnology research and development, wireless and high speed telecommunications, computerized technologies and electronic equipment, with microchip components, or businesses providing systems for computer software design or hardware design, or both, based on the assessment of customers' business or organizational needs. This category does not include the mere sale of installation of standard retail software packages or individual hardware components.

(7) Council finds promoting these types of businesses in the designated areas will promote and guide the Town's growth as shown in the chart below. The categories of (4) through (6) above also qualify in all areas of the Town. Additional designated areas may be added by resolution of Town Council.

Designated Area Eligible Business License Category

Multi-County Industrial Park (MCIP)—Buckwalter Place

Corporate Headquarters

Research and Development

High Technology

(8) The Town Manager may extend the incentive to similar businesses deemed appropriate premised on policy recommendations from Town Council based on jobs or capital invested.

(9) Restructuring of business, or closing and reopening a similar business by same principal owner(s) does not qualify; and

Businesses which meet these requirements may receive abatement as outlined in Section 6-44.

(Ord. No. 2010-14 , 8-10-2010; Ord. No. 2014-13 , Att. 1, 8-12-2014)

Sec. 6-44. - Business License Tax Abatement.

(a) The business license tax abatement is calculated on the actual business license tax paid to the Town and does not apply to other fees paid to other departments or agencies for the Town. The qualifying new business shall receive the abatement as follows:

(1) One hundred percent (100%) for the first taxable year of operation or any portion thereof;

(2) Sixty percent (60%) for the second taxable year of operation;

(3) Thirty-three percent (33%) for the third taxable year of operation.

(4) No abatement will apply after the third taxable year of operation.

(b) Any business which meets the preceding qualification requirements for abatement and which is issued a business license permit for less than a six-month period in its first taxable year of operation may elect to extend its 100 percent abatement to the second taxable year provided it pays 50 percent of the tax otherwise due in the third taxable year.




(c) No business and no successor or affiliated business entity having one or more of the same principals and substantially the same business activity may cease business operations in the name of one business and then resume business operations in another name if the effect of such resumption is to circumvent this section.

(Ord. No. 2010-14 , 8-10-2010; Ord. No. 2014-13 , Att. 1, 8-12-2014)

Sec. 6-45. - Severability.

A determination that any portion of this ordinance is invalid or unenforceable shall not affect the remaining portions.

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Appendix A Rate Class

Minimum Rate

Minimum Gross Receipt

Rate Per Thousand or Fraction Thereof Over Minimum Gross

1 2 3 4 5 6 7 8.1 8.2 8.3 8.4A 8.4B 8.5 8.6

8.7 8.81 8.82 8.83 8.9A 8.9B 8.9C Non Profit

$ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 See SC Code MASC Telecommunications $ 50.00 $ 50.00 $ 50.00 $ 30.00 MASC Insurance $12.50 business license for operation of all machines (not on gross income) $ 50.00 $12.50 business license for operation of all machines (not on gross income) $ 50.00 $ 50.00 $ 50.00 N/A

$ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 N/A

$ 1.00 $ 1.20 $ 1.40 $ 1.60 $ 1.80 $ 2.00 $ 2.20 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 PLUS $12.50/machine $ 1.00 PLUS $12.50/machine $ 1.00 $ 1.00 $ 2.20 N/A

NON-RESIDENT RATES

Unless otherwise specifically provided, all taxes and rates shall be doubled for nonresidents and

itinerants having no fixed principal place of business within the municipality.

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CLASS 8 RATES

Each NAICS Number designates a separate sub-classification. The businesses in this section are

treated as separate and individual subclasses due to provisions of State law, regulatory

requirements, service burdens, tax equalization considerations, etc., which are deemed to be

sufficient to require individually determined rates. Non-resident rates do not apply except where

indicated.

8.1 NAICS 230000 - Contractors, Construction, All Types [Non-resident rates apply]

Having permanent place of business within the municipality

Minimum on first $10,000.............................................................................$ 50 PLUS

Each additional 1,000...$ 1

A trailer at the construction site or structure in which the contractor temporarily resides is not a

permanent place of business under this ordinance.

The total tax for the full amount of the contract shall be paid prior to commencement of work

and shall entitle contractor to complete the job without regard to the normal license expiration

date. An amended report shall be filed for each new job and the appropriate additional license fee

per $1,000 of the contract amount shall be paid prior to commencement of new work. Only one

base tax shall be paid in a license year.

No contractor shall be issued a business license until all state and municipal qualification

examination and trade license requirements have been met. Each contractor shall post a sign in

plain view on each job identifying the contractor with the job.

Sub-contractors shall be licensed on the same basis as general or prime contractors for the same

job. No deductions shall be made by a general or prime contractor for value of work performed

by a sub-contractor. General or prime contractors will be responsible and will pay for the

business license of any subcontractor doing work on the project if the subcontractor is found to

be operating without a town business license.

No contractor shall be issued a business license until all performance and indemnity bonds

required by the Building Code have been filed and approved. Zoning permits must be obtained

when required by the Zoning Ordinance.

Each prime contractor shall file with the License Official a list of sub-contractors furnishing

labor or materials for each project.

8.2 NAICS 482 - Railroad Companies – (See S.C. Code § 12-23-210)

8.3 NAICS 5171, 5172 - Telephone Companies:

A. Notwithstanding any other provisions of the Business License Ordinance, the business

license tax for "retail telecommunications services", as defined in S. C. Code Section 58-9-2200,

shall be at the maximum rate authorized by S. C. Code Section 58-9-2220, as it now provides or

Formatted: Highlight


as provided by amendment. The business license tax year shall begin on January 1 of each year.


B. In conformity with S.C. Code Section 58-9-2220, the business license tax for "retail

telecommunications services" shall apply to the gross income derived from the sale of retail

telecommunications services for the preceding calendar or fiscal year which either originate or

terminate in the municipality and which are charged to a service address within the municipality

regardless of where these amounts are billed or paid and on which a business license tax has not

been paid to another municipality. The measurement of the amounts derived from the retail sale

of mobile telecommunications services shall include only revenues from the fixed monthly

recurring charge of customers whose service address is within the boundaries of the

municipality. For a business in operation for less than one year, the amount of business license

tax shall be computed on a twelve-month projected income.

C. The business license tax for "retail telecommunications services" shall be due on January 1 of

each year and payable by January 31 of that year, without penalty.

D. The delinquent penalty shall be five percent (5 %) of the tax due for each month, or portion

thereof, after the due date until paid.

E. Exemptions in the business license ordinance for income from business in interstate

commerce are hereby repealed. Properly apportioned gross income from interstate commerce

shall be included in the gross income for every business subject to a business license tax.

F. Nothing in this Ordinance shall be interpreted to interfere with continuing obligations of any

franchise agreement or contractual agreement in the event that the franchise or contractual

agreement should expire after December 31, 2003.

G. All fees collected under such a franchise or contractual agreement expiring after December

31, 2003, shall be in lieu of fees or taxes which might otherwise be authorized by this Ordinance.

H. As authorized by S. C. Code Section 5-7-300, the Agreement with the Municipal Association

of South Carolina for collection of current and delinquent license taxes from telecommunications

companies pursuant to S. C. Code Section 58-9-2200 shall continue in effect.

8.4A NAICS 423930 - Junk or Scrap Dealers [Non-resident rates apply]

Minimum on first $10,000 ...............................................................................$50 PLUS

Per $1,000, or fraction, over $10,000 ........................................................................ $1

8.4B NAICS 522298 - Pawn Brokers - All Types

Minimum on first 10,000 .............................................................................. $50 PLUS

Per $1,000, or fraction, over $10,000 ........................................................................ $1

8.5 NAICS 4411, 4412 - Automotive, Motor Vehicles, Boats, Farm Machinery or Retail (except auto supply stores - see 4413)



Per $1,000, or fraction, over $10,000 .........................................................................$1

One sales lot not more than 400 feet from the main showroom may be operated under this

license provided that proceeds from sales at the lot are included in gross receipts at the

main office when both are operated under the same name and ownership.

Gross receipts for this classification shall include value of trade-ins. Dealer transfers or

internal repairs on resale items shall not be included in gross income.

NAICS 454390 - Peddlers, Solicitors, Canvassers, Door-To-Door Sales direct retail sales of merchandise. [Non-resident rates apply]

8.6 Minimum on first $10,000 ...............................................................................$30 PLUS

Per $1,000, or fraction, over 10,000 .........................................................................$1

Applicant for a license to sell on private property must provide written authorization from

the property owner to use the intended location.

8.7 NAICS 5241 - Insurance Companies:

Except as to fire insurance, “gross premiums” means gross premiums written for policies for

property or a risk located within the municipality. In addition, “gross premiums” shall include

premiums written for policies that are sold, solicited, negotiated, taken, transmitted, received,

delivered, applied for, produced or serviced by (1) the insurance company’s office located in the

municipality, (2) the insurance company’s employee conducting business within the

municipality, or (3) the office of the insurance company’s licensed or appointed producer (agent)

conducting business within the municipality, regardless of where the property or risk is located,

provided no tax has been paid to another municipality in which the property or risk is located

based on the same premium.

Solicitation for insurance, receiving or transmitting an application or policy, examination of a

risk, collection or transmitting of a premium, adjusting a claim, delivering a benefit, or doing any

act in connection with a policy or claim shall constitute conducting business within the

municipality, regardless of whether or not an office is maintained in the municipality.

As to fire insurance, “gross premiums” means gross premiums (1) collected in the municipality,

and/or (2) realized from risks located within the limits of the municipality.

Gross premiums shall include all business conducted in the prior calendar year.

Gross premiums shall include new and renewal business without deductions for any dividend,

credit, return premiums or deposit.


NAICS 52411 - Life, Health and Accident......................................... 0.75% of Gross Premiums

Formatted: Indent: First line: 0"


NAICS 524126 - Fire and Casualty.......................................................... 2% of Gross Premiums

NAICS 524127 - Title Insurance ............................................................. 2% of Gross Premiums

Notwithstanding any other provisions of this ordinance, license taxes for insurance companies

shall be payable on or before May 31 in each year without penalty. The penalty for delinquent

payments shall be 5% of the tax due per month, or portion thereof, after the due date until paid.

Any exemptions in the business license ordinance for income from business in interstate

commerce are hereby repealed. Gross income from interstate commerce shall be included in the

gross income for every business subject to a business license tax.

Pursuant to S.C. Code Ann. §§ 38-45-10 and 38-45-60, the Municipal Association of South

Carolina, by agreement with the municipality, is designated the municipal agent for purposes of

administration of the municipal broker’s premium tax. The agreement with the Association for

administration and collection of current and delinquent license taxes from insurance companies

as authorized by S.C. Code § 5-7-300.

[The South Carolina General Assembly, in order to ensure consistency with the federal Non-

admitted and Reinsurance Reform Act of 2010 (“NRRA”), ratified an act (Rat# 283) on June 28,

2012, amending S.C. Code §§ 38-7-16 and 38-45-10 through 38-45-195. The act establishes a

blended broker’s premium tax rate of 6 percent comprised of a 4 percent state broker’s premium

tax and a 2 percent municipal broker’s premium tax. The act states a municipality may not

impose on brokers of non-admitted insurance in South Carolina an additional license fee or tax

based upon a percentage of premiums.]

NAICS 713120 - Amusement Machines, coin operated (except gambling) -

Music machines, juke boxes, kiddy rides, video games, pin tables with levers, and other

amusement machines with or without free play feature licensed by SC Department of Revenue

pursuant to S.C. Code §12-21-2720(A)(1) and (A)(2) – [Type I and Type II]

8.81 Operator of machine ........................................................................$12.50/machine PLUS

......................................................................................................................$12.50 business license

for operation of all machines (not on gross income).[§12-21-2746]

8.82 Distributor selling or leasing machines

(not licensed by the State as an operator pursuant to §12-21-2728) - [Nonresident rates

apply.]

Minimum on first $10,000 .............................................................................. $50 PLUS

Per $1,000 or fraction over $10,000 ...........................................................................$1

NAICS 713290 - Amusement Machines, coin operated, non-payout

Amusement machines of the non-payout type or in-line pin game licensed by SC Department of

Revenue pursuant to S.C. Code §12-21-2720(A)(3) [Type III]


8.83 Operator of machine .........................................................................$12.50/machine PLUS

......................................................................................................................$12.50 business license

for operation of all machines (not on gross income). [§12-21-2720(B)]

8.82 -. Distributor selling or leasing machines (not licensed by the State as an operator pursuant

to §12-21-2728) - [Nonresident rates apply.] -Minimum on first $10,000.................. $50 PLUS


8.9A NAICS 713290 - Bingo halls, parlors –



8.9B NAICS 711190 - Carnivals and Circuses -



8.9C NAICS 722410 - Drinking Places, bars, lounges, cabarets (Alcoholic beverages

consumed on premises)


Per $1,000, or fraction, over $10,000 .........................................................................$2.20

License must be issued in the name of the individual who has been issued a State alcohol,

beer or wine permit or license and will have actual control and management of the

business.

NAICS 22112 - Electric Power Distribution………………………… See Consent or Franchise

NAICS 22121 – Natural Gas Distribution ..............………………. ...See Consent or Franchise

NAICS 517110 – Television: Cable or Pay

Services using public streets..........................................................................See Franchise

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This appendix will be updated annually based on the latest available IRS statistics.

APPENDIX B

2016 BUSINESS LICENSE CLASS SCHEDULE BY NAICS CODE

NAICS Sector/Subsector Industry Sector Class

11 Agriculture, forestry, hunting and fishing 2

113 Forestry and logging (including forest nurseries, timber tracts) 1

115 Support activities for agriculture and forestry 1

21 Mining 3

2211 Electric Power Generation, Transmission and Distribution Franchise

2212 Natural Gas Distribution Franchise

22 Utilities 1

23 Construction 8.1

31-33 Manufacturing 1

311 Food manufacturing 1

313 Textile and textile product mills 1

315 Apparel 1

316 Leather and allied products 1

321 Wood products 1

322 Paper products 2

323 Printing and related support activities 1

324 Petroleum and coal products 1

325 Chemical manufacturing 2

327 Nonmetallic mineral products 1

331 Primary metal industries 1

332 Fabricated metal products 1

333 Machinery 2

334 Computer and electronic products 2

335 Electrical equipment, appliances, and components 2

336 Transportation equipment 1

337 Furniture and related products 1

339 Other miscellaneous manufacturing 2

42 Wholesale trade 1

423930 Recyclable Material Merchant Wholesalers (Junk) 8.4A

44-45 Retail trade 1

Formatted: Font: 16 pt


441 Motor vehicle and parts dealers 1

4411 Automobile Dealers 8.5

4412 Other Motor Vehicle Dealers 8.5

442 Furniture and home furnishing stores 1

443 Electronic and appliance stores 1

444 Building material and garden equipment and supplies dealers 1

445 Food and beverage stores 1

446 Health and personal care stores 1

447 Gasoline stations 1

448 Clothing and accessories stores 1

451 Sporting goods, hobby, book, and music stores 1

452 General merchandise stores 1

453 Miscellaneous store retailers 1

454 Nonstore retailers 1

45439 Other Direct Selling Establishments (Peddlers) 8.6

48-49 Transportation and warehousing 1

482 Rail Transportation 8.2

484 Truck Transportation 1

486 Pipeline transportation 1

493 Warehousing and storage facilities 2

51 Information 2

511 Publishing industries (except internet) 2

512 Motion picture and sound recording 2

515 Broadcasting (except internet) and telecommunications 2

517 Telecommunications 2

5171 Wired Telecommunications Carriers 8.3

5172 Wireless Telecommunications Carriers (except Satellite) 8.3

518 Internet service providers, web search portals, and data processing 2

519 Other Information Services 2

52 Finance and insurance 4

522 Credit intermediation and related activities 4

522298 Pawnshops 8.4B

523 Securities, commodity contracts, and other financial investments 7

524 Insurance agents, brokers, and related activities 1

5241 Insurance Carriers 8.7

52421 Insurance Brokers for non-admitted Insurance Carriers 8.7

525 Funds, trusts and other financial vehicles 7

53 Real estate and rental and leasing 5


531 Real estate 6

5311 Lessors of real estate (including miniwarehouses and self storage) 7

532 Rental and leasing services 2

533 Lessors of nonfinancial assets 7

54 Professional, scientific, and technical services 3

5411 Legal Services 5

5413 Architectural, engineering and related services 3

5416-9 Other professional, scientific, and technical services 3

55 Management of companies 4

56 Administrative and support and waste management and remediation services 2

561 Administrative and support services 2

562 Waste management and remediation services 1

61 Educational services 2

62 Health care and social assistance 2

623 Nursing and Residential Care Facility 1

71 Arts, entertainment, and recreation 2

71119 Other Performing Arts Companies (Carnivals and Circuses) 8.9B

712 Museums, Historical Sites and similar institutions 1

7131 Amusement Parks and Arcades 8.8

7132 Nonpayout Amusement Machines 8.8

713290 Bingo Halls 8.9A

713990 All Other Amusement and Recreational Industries ( pool tables) 2

721 Accommodation 1

722 Food services and drinking places 1

72241 Drinking Places (Alcoholic Beverages) 8.9C

81 Other services 2

811 Repair and maintenance 1

8111 Auto repair and maintenance 1

812 Personal and laundry services 3

813 Religious, grantmaking, civic, professional, and similar organizations 3

Attachment 2

Council Motion Recommendation

Formal Agenda Item:

1. Consideration of an Ordinance Amending the Town of Bluffton Code of Ordinances, Chapter 6, Business and Business Regulations, Article II, Business Licenses and Regulations - Final Reading - Trisha Greathouse, Director of Finance and Administration

Motion:

“I make a motion to approve an Ordinance Amending the Town of Bluffton Code of Ordinances,

Chapter 6, Business and Business Regulations, Article II, Business Licenses and Regulations Sec.

6-19 through 6-45 limiting the number of rate classes, adjusting the fee schedule, changing the

renewal date and including additional incentives”

Documents

Business License Ordinance - Bluffton, South Carolina...2018/08/14 · Attachment 1 ORDINANCE NO. 2018 - ___ TOWN OF BLUFFTON, SOUTH CAROLINA AN ORDINANCE AMENDING CHAPTER 6, BUSINESS