ORD 2020-32 Adopted ORDINANCE NO. 2020-32
AN ORDINANCE TO AMEND SECTION 15 ARTICLES I AND V
RELATED TO BUSINESS LICENSING
WHEREAS, Chapter 15, Article I of the City of North Augusta Code of
Ordinances provides for matters related to obtaining a business license with the City of North
Augusta; and,
WHEREAS,this Article was codified in 2008 with no revisions since then;and,
WHEREAS, the Municipal Association of South Carolina developed a "model
business license ordinance" that is in compliance with state and federal law and other best
practices of business licensing; and,
WHEREAS,the"model business license ordinance"provides standardization of
business licensing among municipalities across South Carolina; and,
WHEREAS, Mayor and City Council believe that it is appropriate for the City
of North Augusta to revise this Ordinance concerning business licensing in conformity with the
"model business license ordinance" as put forth by the Municipal Association of South
Carolina; and,
WHEREAS, Mayor and City Council believe the deletion of the current Article
I in its entirety and replacement of same with a revised version is appropriate.
WHEREAS, Mayor and City Council also believe the deletion of the current
Article V in its entirety is appropriate as it is now included in the revised Article I.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of
the City of North Augusta, South Carolina, in meeting duly assembled and by the authority
thereof, that:
I. Section 15, Article I, entitled BUSINESS LICENSES and Section 15,
Article V, entitled RETAIL TELECOMMUNICATIONS SERVICES are
hereby amended by deleting the entire sections as they are currently drawn
and inserting in its place the following, so that such Ordinance,when revised,
would read as follows:
See. 1. 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 City of North Augusta, South Carolina,
is required to pay an annual license tax for the privilege of doing business and obtain a
business license as herein provided.
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See. 2. Definitions.
The following words, terms and phrases, when used in this ordinance, shall have the
meaning ascribed herein:
"Business"means a calling, occupation,profession, or activity engaged in with the object of
gain, benefit or advantage, either directly or indirectly.
"Charitable 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 the
Council.
"Gross Income"means the gross receipts or gross revenue of a business, received or accrued,
for one calendar or fiscal year collected or to be collected from business done within the
Municipality,excepting therefrom income earned outside of the Municipality on which a
license tax is paid by the business to some other municipality or a county and fully reported to
the Municipality. Gross income for agents means gross commissions received or retained,
unless otherwise specified. Gross income for insurance companies means gross premiums
written. 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 parry. The value
of bartered goods or trade-in merchandise shall be included in gross income. The gross
receipts or gross revenues for business license purposes may be verified by inspection of
returns and reports filed with the Internal Revenue Service, the South Carolina Department of
Revenue,the South Carolina Department of Insurance, or other government agencies.
"License Official"means a person designated to administer this ordinance.
"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.
"Municipality" means the City of North Augusta, South Carolina.
"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
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plural, and the agent or employee having charge or control of a business in the absence of the
principal.
Sec. 3. Purpose and Duration.
The business license levied by this ordinance 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 yearly license shall be issued for
the twelve-month period of May 1 to April 30. The provisions of this ordinance and the rates
herein shall remain in effect from year to year as amended by the Council.
See. 4. 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 due date of the 30th day of April in each
year, except for those businesses in Rate Class 8 for which a different due date is specified.
B. A separate license shall be required for each place of business and for each
classification or business conducted at one place. If gross income cannot be separated for
classifications at one location,the license 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, and on a
twelve-month projected income based on the monthly average for a business in operation for
less than one year. The tax for a new business shall be computed on the estimated probable
gross income stated in the license application for the balance of the license year. The initial
tax for an annexed business shall be prorated for the number of months remaining in the
license year.No refund shall be made for a business that is discontinued.
Sec. 5. 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, and an annexed business shall be required to have a business license within
thirty (30) days of the annexation. 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 Federal Employer's Identification Number, the
business name as reported on the South Carolina income tax return, and all information about
the applicant and the Licensee and the business deemed appropriate to carry out the purpose
of this ordinance by the License Official. Applicants may be required to submit copies of
portions of state and federal income tax returns reflecting gross receipts and gross revenue
figures.
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C. The applicant shall certify under oath that the information given in the application
is true, that the gross income is accurately reported, or estimated for a new business,without
any unauthorized deductions, and that all assessments,personal property taxes on business
property and other monies due and payable to the Municipality have been paid.
Sec. 6. Deductions, Exemptions, and Charitable Organizations.
A. No deductions from gross income shall be made except income earned outside of
the Municipality on which a license tax is paid by the business to some other municipality or a
county and fully reported to the Municipality,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.
Sec. 7. 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.
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Sec. 8. Displav 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
Municipality.
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.
Sec. 9. 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 municipal 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.
Sec. 10. Inspection and Audits.
A. For the purpose of enforcing the provisions of this ordinance,the License Official
or other authorized agent of the Municipality 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 have the authority to make inspections and conduct
audits of businesses within the Municipality 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.
Sec. 11. Assessments, Pavment under Protest,Appeal.
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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 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
Council.
Sec. 12. 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 (5%)percent of the unpaid tax for each month or
portion thereof after the due date until paid. Penalties shall not be waived. If any license tax
remains unpaid for sixty (60) days after its due date, the License Official shall report it to the
municipal attorney for appropriate legal 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.
Sec. 13. Notices.
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 municipality 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.
Sec. 14. Denial of License.
The License Official shall deny a license to an applicant when the License Official
determines:
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
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C. The applicant, Licensee or prior Licensee or the person in control of the business
has been convicted, within the previous ten years, of an offense under a law or ordinance
regulating business, a crime involving dishonest conduct or moral turpitude related to a
business or a subject of a business, 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 an unlawful activity or 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 or fee; 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.
A decision of the License Official shall be subject to appeal to Council as herein provided.
Denial shall be written with reasons stated.
See. 15. Suspension or Revocation of License.
When the License Official determines:
A. A license has been mistakenly or improperly issued or issued contrary to law; or
B. A Licensee has breached any condition upon which the license was issued or has
failed to comply with the provisions of this ordinance; or
C. A Licensee has obtained a license through a fraud, misrepresentation, a false or
misleading statement, evasion or suppression of a material fact in the license application; or
D. A Licensee has been convicted, within the previous ten years, of an offense under
a law or ordinance regulating business, a crime involving dishonest conduct or moral
turpitude related to a business or a subject of a business, or an unlawful sale of merchandise
or prohibited goods; or
E. A Licensee has engaged in an unlawful activity or nuisance related to the business;
or
F. A Licensee is delinquent in the payment to the Municipality of any tax or fee,
the License Official shall give written notice to the Licensee or the person in control of the
business within the Municipality by personal service or certified mail that the license is
suspended pending a hearing before Council for the purpose of determining whether the
license should be revoked.
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The notice shall state the time and place at which the hearing is to be held, which shall be at a
regular or special Council meeting within thirty(30)days from the date of service of the notice,
unless continued by agreement. The notice shall contain a brief statement of the reasons for
suspension and proposed revocation and a copy of the applicable provisions of this ordinance.
Sec. 16. Appeals to Council.
A. Any person aggrieved by a decision,final assessment, proposed revocation,
suspension, or a denial of a business license by the License Official may appeal the decision
to the Council by written request stating the reasons therefore, filed with the License Official
within ten(10)days after service by mail or personal service of the notice of decision, final
assessment,proposed revocation, suspension or denial.
B. An appeal or a hearing on proposed revocation shall be held by the Council within
thirty(30) days after receipt of a request for appeal or service of notice of suspension at a
regular or special meeting of which the applicant or licensee has been given written notice,
unless continued by agreement. At the hearing, all parties shall have the right to be
represented by counsel, to present testimony and evidence and to cross-examine witnesses.
The proceedings shall be recorded and transcribed at the expense of the parry so requesting.
The rules of evidence and procedure prescribed by Council shall govern the hearing. Council
shall by majority vote of members present render a written decision based on findings of fact
and application of the standards herein which shall be served upon all parties or their
representatives and shall be the final decision of the Municipality.
Sec. 17. Consent, franchise or license required for use of streets.
A. 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 municipality any line,pipe,
cable, pole, structure or facility for utilities, communications, cablevision or other purposes
without a consent agreement or franchise agreement issued by the Council by ordinance that
prescribes the term, fees and conditions for use.
B. 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 taxes unless specifically provided by the
franchise or consent agreement.
Sec. 18. Confidentiality.
Except in accordance with 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
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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.
Sec. 19. 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
thirty (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.
Sec.20. Severability.
A determination that any portion of this ordinance is invalid or unenforceable shall not
affect the remaining portions.
Sec. 21. Classification and Rates.
A. The classifications of businesses included in each rate class are listed with United
States North American Industry Classification System(NAICS) codes, by sector, sub-sector,
group or industry. The Business License Class Schedule (Appendix B) is a tool for
classification and not a limitation on businesses subject to a license tax. The business
classification, pursuant to the most recent version of the Business License Class Schedule
adopted by the council, most specifically identifying the subject business, shall be applied to
the business. The License Official shall have the authority to make the determination of the
business classification most specifically applicable to a subject business...
B. The license tax for each class of businesses subject to this ordinance shall be computed in
accordance with the current Business License Rate Schedule, designated as Appendix A to
this ordinance,which may be amended from time to time by the Council. A copy of the
Class Schedule and Rate Schedule shall be filed in the office of the municipal clerk.
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APPENDIX A
RATE SCREDULE
INCOME: $0 - $2,000 INCOME OVER $2,000
RATE CLASS BASE RATE Rate ver Thousand or fraction thereof
1 $ 25.00 $ 1.10
2 $ 30.00 $ 1.25
3 $ 35.00 $ 1.40
4 $ 40.00 $ 1.55
5 $ 45.00 $ 1.70
6 $ 50.00 $ 1.85
7 $ 55.00 $ 2.00
8.1 $ 25.00 $ 1.10
8.2 $ set by State statute
8.3 MASC Telecommunications
8.41 $ 200.00 $ 1.60
8.42 $ 50.00 $ 1.60
8.5 $ 25.00 $ 1.10
8.61 $ 100.00 $ 1.60
8.62 $ 50.00 $ 1.60
8.7 MASC Insurance
8.81 $12.50+ $12.50 per machine
8.82 $ 25.00 $ 1.60
8.83 $12.50+$12.50 per machine
8.91 $ 100.00 $ 5.10
8.92 $ 100.00 $ 2.10
8.93 $ 50.00 $ 1.25
8.10 $ 50.00+$5.00 per table $ 1.30
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 8RATES
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$2,000.....................................................................................$25.00
PLUS Each additional 1,000......................................................................$1.10
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.
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 517311, 517312 -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 as provided by amendment. The business license tax year shall begin on January I
of each year. Declining rates shall not apply.
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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.
8.41 NAICS 423930 -Junk or Scrap Dealers [Non-resident rates apply]
Minimum on first $2,000
.......................................................................................$200.00
PLUS Per$1,000, or fraction, over$2,000
...............................................................$1.60
8.42 NAICS 522298 -Pawn Brokers -All Types
Minimumon first$2,000 ........................................................................................
$50.00 PLUS Per$1,000, or fraction, over$2,000
..............................................................$ 1.60
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8.5 NAICS 4411,4412 -Automotive, Motor Vehicles, Boats, Farm Machinery or
Retail
(except auto supply stores - see 4413)
Minimum on first $2,000
.........................................................................................$25.00 PLUS Per$1,000, or
fraction, over$2,000 ...............................................................$1.10
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]
8.61 Regular activities [more than two sale periods of more than three days each per year]
Minimum on first $2,000
.......................................................................................$100.00 PLUS Per$1,000, or
fraction, over$2,000...............................................................$ 1.60
8.62 Seasonal activities [not more than two sale periods of not more than three days each
year, separate license required for each sale period]
Minimum on first $2,000
.........................................................................................$50.00 PLUS Per$1,000, or
fraction, over$2,000...............................................................$ 1.60
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
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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.
Declining rates shall not apply.
NAICS 52411 - Life. Health and Accident ...................................... 0.75% of Gross
Premiums
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.]
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NAICS 713120 - Amusement Machines, coin operated (except eambling)-
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.]
Minimumon first $2,000 ......................................................................................
$25.00
PLUS Per$1,000, or fraction, over$2,000...........................................................$1.60
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). [§l2-21-2720(B)]
8.82 Distributor selling or leasing machines (not licensed by the State as an operator
pursuant to §12-21-2728) - [Nonresident rates apply.] —
Minimumon first $2,000 ......................................................................................
$25.00
PLUS Per$1,000, or fraction, over$2,000...........................................................$1.60
8.91 NAICS 713290-Bingo halls, parlors—
Minimumon first $2,000 ....................................................................................
$100.00
PLUS Per$1,000, or fraction, over $2,000...........................................................$5.10
8.92 NAICS 711190- Carnivals and Circuses -
Minimumon first $2,000 ....................................................................................
$100.00
PLUS Per$1,000, or fraction, over$2,000...........................................................$2.10
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8.93 NAICS 722410 -Drinking Places, bars, lounges, cabarets (Alcoholic beverages
consumed on premises)
Minimumon first$2,000 ......................................................................................
$50.00
PLUS Per$1,000, or fraction, over$2,000...........................................................$1.25
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.
8.10 NAICS 713990 -Billiard or Pool Rooms, all types .......... $5.00 or$12 per table
Minimumon first $2,000 ......................................................................................
$50.00
PLUS Per$1,000, or fraction, over$2,000...........................................................$1.30
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
II. The NAICS Numerical Index is an attachment to this ordinance and incorporated herein.
III. All Ordinances or parts of Ordinances in conflict herewith are, to the extent of such
conflict,hereby repealed.
IV. This Ordinance shall become effective immediately upon its adoption on second
reading.
DONE, RATIFIED AND ADOPTED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF NORTH AUGUSTA, SOUTH CAROLINA, ON THIS
DAY OF November 12020
First Reading DC-+o_ bcr I9 Rou
Robert A. Pettit, Mayor
Second Reading November 2.AW
ATTEST:
w Y
Sharon Lamar, City Clerk
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