GENERALLY

Charlotte City Code ch. 13, art. II, div. 1

in effect

Charlotte City Code § 13-26 Purpose.

Sec. 13-26. - Purpose. (a) The purpose of this article is to raise funds for general municipal purposes. Therefore, it should be construed to require payment of the maximum tax permitted for the privilege of carrying on a business, trade, profession, calling or occupation within the corporate limits of the city. (b) A license issued pursuant to this article reflects that the appropriate tax has been paid. Issuance of a license does not constitute regulatory approval and does not excuse a licensee from compliance with any other applicable ordinance, regulation, or statute. By issuing a license, the city has not determined that the recipient is in compliance with any applicable local, state or federal regulation or law or that the recipient is otherwise engaged in a legal activity or operating a business in a legal manner. (c) This article does not prevent the city from imposing license taxes on additional businesses, from increasing or decreasing the amount of any license tax, or from regulating any business taxes. (Code 1985, § 13-16)

Charlotte City Code § 13-27 Who must pay tax.

Sec. 13-27. - Who must pay tax. Each person who conducts or engages in all trades, occupations, professions, businesses, and franchises physically located within the city. (Code 1985, § 13-17; Ord. No. 5406, § 1, 6-9-2014)

Charlotte City Code § 13-28 Notice to taxpayer presumed.

Sec. 13-28. - Notice to taxpayer presumed. Each person who conducts a business may be subject to a business license. It is the duty of the taxpayer to verify what his requirements are. If licenses are not paid, the proceedings allowed by law may be taken against such business. This notice shall be conclusively presumed, whether or not such persons have actual notice. (Code 1985, § 13-17.1)

Charlotte City Code § 13-29 Exemptions.

Sec. 13-29. - Exemptions. (a) Generally. Except as otherwise provided in this section or by state law, no person is exempt from the payment of a privilege license tax levied by this article. (b) Charitable organizations. A person who operates a business for a religious, educational, civic, patriotic, charitable or fraternal purpose, when the entire gross income of the business is used for such a purpose, is exempt from paying any privilege license tax levied by this article. (c) Blind persons and members of the armed forces and merchant marine. Blind persons and persons who serve in the United States armed forces or the merchant marine are exempt from paying any privilege license tax levied by this article to the extent provided by G. S. 105-249 and G. S. 105-249.1. (Code 1985, § 13-18)

Charlotte City Code § 13-30 Period; due date.

Sec. 13-30. - Period; due date. (a) Annual. Unless otherwise specified, the license issued pursuant to this article is valid for the 12-month period beginning July 31 and ending June 30. The tax is due and payable no later than July 1 of each year. However, if a person begins a business after July 1 of a year, the tax for that year shall be due and payable before the business is begun. (b) Periods shorter than one year. If the section of this article levying the privilege license tax applicable to the particular business so provides, a license may be issued for a period of one day, one week, or some comparable period of less than a full year. A person may not commence a business conducted within the city and taxed under such a provision until the privilege license tax due is paid, and may not continue such business beyond the period for which the license is issued. (Code 1985, § 13-19; Ord. No. 5406, § 2, 6-9-2014)

Charlotte City Code § 13-31 Proration of tax.

Sec. 13-31. - Proration of tax. If a business is begun after December 31 and before July 1 the amount of tax due is half the amount otherwise due unless otherwise provided. (Code 1985, § 13-20; Ord. No. 8194, § 3, 12-19-2016; Ord. No. 8195, § 1, 12-21-2016)

Charlotte City Code § 13-32 Application.

Sec. 13-32. - Application. (a) All persons, before engaging in any business, trade, profession, calling or occupation, or doing any act on which a license tax is imposed by this article, shall, except as provided in this section apply in writing on the form designated to the tax collector for a license. Such application must be signed by an official or designated representative. (b) Each new application or an established business moving to a new location must be approved as to zoning requirements by the city. (c) Each applicant must comply with other sections of this article concerning health, police, fire or building standards department requirements as provided. (d) Each applicant for a license under section 13-16, category 179, "Escort, dating service or similar type business," must have a valid unrevoked escort service permit or dating service permit issued pursuant to chapter 6, article IV. In addition, upon receipt of notice that an escort service permit or dating service permit has been revoked pursuant to section 6-306, the tax collector shall revoke a license issued under this article to such business. (Code 1985, § 13-21)

Charlotte City Code § 13-33 Change in the business during the tax year; fee for reissuance of license.

Sec. 13-33. - Change in the business during the tax year; fee for reissuance of license. A licensee under this article shall report a change in the information contained in the license application to the tax collector within ten days after the change occurs. If information shown on the license itself is affected thereby, the licensee shall surrender the license to the tax collector when reporting the change. The tax collector shall reissue a license reflecting the change upon payment of a fee as established from time to time. The license shall be subject to cancellation for failure to comply with this section. (Code 1985, § 13-22)

Charlotte City Code § 13-34 Tax based on gross receipts.

Sec. 13-34. - Tax based on gross receipts. (a) Requirement. Except as provided in subsection (d) of this section if a license tax required by this article is based upon the gross receipts, an applicant for a business privilege license shall be required to submit the amount of its gross receipts from the license tax year immediately preceding in such detail and in such manner as the office of the tax collector may require. (b) Procedures. When a license tax required under this article is based on gross receipts, the licensee will compute its license tax by applying all gross receipts per location to the rate established in this section and purchase a license per location. The licensee, however, may be subject to additional license taxes which the state authorizes the city to levy, depending on the licensee's business, and for which a separate license must be purchased. If the licensee is required to obtain multiple classifications, these revenues may be deducted from the total gross receipts. New businesses and/or businesses that have not been in business 12 months must give a good-faith 12-month projection of their gross receipts. (c) Definitions. The term "gross receipts," as used in this section, shall mean all earnings, receipts, fees, commissions, broker's charges, rentals and income whatsoever arising from or growing out of the conduct of the business, occupation or profession licensed under this article during the license tax year immediately preceding the license tax year for which the tax is being computed, without any deduction whatsoever, unless otherwise expressly provided. (d) Exception. Any business that pays the maximum annual tax on its gross receipts shall not be required to submit the amount of its gross receipts in order to purchase a license. (e) Confidentiality of information. All information regarding gross receipts or other information furnished or secured under the authority of this article shall be kept in strict confidence by the office of the tax collector, its officials and employees, and shall not be subject or open to public inspection, except as provided in this article. The aforementioned shall be utilized solely by the office of the tax collector, its officials and employees for administering the provisions of this article. However, summaries of such information may be shared with appropriate city officials and employees for purposes of research and analysis. (Code 1985, § 13-23; Ord. No. 8194, § 3, 12-19-2016; Ord. No. 8195, § 1, 12-21-2016)

Charlotte City Code § 13-35 Duty to determine whether tax due.

Sec. 13-35. - Duty to determine whether tax due. (a) Each person has the duty to determine whether the business he conducts is taxed under this article, and if so, whether that tax has been paid for the current tax year. (b) No license shall be transferable or assignable. (c) A separate license is required and a separate privilege license tax must be paid for each place of business unless two or more places of business under common ownership are contiguous to each other, communicate directly with and open into each other and are operated as a unit. (Code 1985, § 13-24; Ord. No. 8194, § 3, 12-19-2016; Ord. No. 8195, § 1, 12-21-2016)

Charlotte City Code § 13-36 Tax collector's authority to investigate.

Sec. 13-36. - Tax collector's authority to investigate. If the tax collector has reason to believe that a person is conducting a business in the city in violation of this article, he shall conduct an investigation to determine the person's tax liability. (Code 1985, § 13-25)

Charlotte City Code § 13-37 Duty to keep books.

Sec. 13-37. - Duty to keep books. Each person who conducts a business taxed under this article, whose license is based on gross sales/receipts, shall keep all records and books necessary to compute his tax liability. If a person fails to keep books and records as required, the collector shall make his own determination of that person's tax liability from the information available to him. (Code 1985, § 13-26; Ord. No. 8194, § 3, 12-19-2016; Ord. No. 8195, § 1, 12-21-2016)

Charlotte City Code § 13-38 Duty to permit inspection.

Sec. 13-38. - Duty to permit inspection. Each person who conducts business in this city shall permit the tax collector, or his agent, to inspect the business premises during normal business hours to determine the nature of the business conducted there and to examine the books and records to determine the nature and amount of business transacted. (Code 1985, § 13-27)

Charlotte City Code § 13-39 Duty to post.

Sec. 13-39. - Duty to post. (a) A licensee under this article shall post the license conspicuously in the place of business licensed. Failure to post this license shall raise the presumption of not being a licensed business. (b) If there is no regular place of business, the license must be kept where it may be inspected at all times by the proper city officials. (c) Each coin-operated machine, device, or other equipment for which a city privilege license is required shall have affixed thereto in a conspicuous place, a sticker as provided by the for collector, indicating that the privilege license tax has been paid. Failure to display this sticker shall raise a presumption that the machine, device or other equipment is operated by the owner, and/or tenant of the premises, whereupon such person shall be responsible for payment of all city taxes and penalties which may be due and payable. (d) Every coin-operated machine, equipment or device on which a city privilege license is required shall have affixed thereto in a conspicuous place, identification showing the name and address of the owner, operator, distributor or other person responsible for such coin-operated machine. Failure to display this information shall indicate the machine or device is owned by the operator on the location, as set forth in subsection (c) of this section. (Code 1985, § 13-28; Ord. No. 8194, § 3, 12-19-2016; Ord. No. 8195, § 1, 12-21-2016)

Charlotte City Code § 13-40 Refunds for discontinued business.

Sec. 13-40. - Refunds for discontinued business. Except as otherwise provided, there shall be no refund of license taxes to businesses licensed under this article that are discontinued during the license year. (Code 1985, § 13-29)

Charlotte City Code § 13-41 Refunds for licensees entering armed forces.

Sec. 13-41. - Refunds for licensees entering armed forces. Any licensee under this article who enters the armed forces of the United States and, as a result thereof, the operation of the business for which the license was issued ceases and terminates and who, within 30 days after an induction into such armed forces, makes an application to the tax collector of the city for same, shall be entitled to a return of the license fee in proportion to the number of full months remaining in the license period. (Code 1985, § 13-30)

Charlotte City Code § 13-42 Reasons for refusal or revocation.

Sec. 13-42. - Reasons for refusal or revocation. The collector shall refuse to issue or shall revoke a license required by this article for any of the following reasons: (1) The applicant misrepresents a fact relevant to the amount of tax due or the qualifications for a license. (2) The applicant refuses to provide information necessary to compute the amount of tax due. (3) The applicant fails or refuses to provide all information called for in the application. (Code 1985, § 13-31)

Charlotte City Code § 13-43 Penalties; revocation.

Sec. 13-43. - Penalties; revocation. (a) All license taxes imposed by this article excluding beer, wine, taxicabs and the tax imposed in section 13-47, shall be due and payable in advance by August 1, and if any person conducts any business without first paying such tax and obtaining a license by that date, there shall be assessed an additional tax equal to five percent of the amount prescribed for the license per month or fraction thereof until paid, not to exceed 25 percent of the amount so prescribed. (b) No license shall be granted until the license tax plus the additional tax assessed has been paid. The addition of five percent per month on the amount of such license tax shall not exempt the delinquent from the penalties prescribed in this article in case of delinquency. (c) All licenses imposed on businesses under section 13-31 shall be paid prior to the beginning of such business. If not paid within 30 days, the penalties provided in subsections (a) and (b) of this section shall apply from the date such business began. (d) Upon the revocation of any license, it shall be unlawful for the person to whom such license was granted to continue to conduct such business. (Code 1985, § 13-32; Ord. No. 5406, § 3, 6-9-2014; Ord. No. 8194, § 3, 12-19-2016; Ord. No. 8195, § 1, 12-21-2016)

Charlotte City Code § 13-44 Enforcement actions.

Sec. 13-44. - Enforcement actions. (a) Equitable remedies. The city may seek an injunction against any person conducting a business in violation of this article. (b) Garnishment and levy remedies. The tax collector may set forth the sale of tangible personal property (levy) or attach wages, rents, bank deposit and other compensation (garnish) to eliminate any delinquent license tax in accordance with G.S. 105-368 and G.S. 160A-207. (c) Duplicate copy. Upon satisfactory proof that a license has been lost or destroyed, the tax collector shall furnish a duplicate for a fee as established from time to time. (Code 1985, § 13-33; Ord. No. 274, § 5, 3-28-2022)

Charlotte City Code § 13-45 Taxpayer's remedies.

Sec. 13-45. - Taxpayer's remedies. (a) Assertions of valid defense. Any taxpayer asserting a valid defense to the enforcement of the collection of any license levied in this article shall proceed as provided in this section: (1) A valid defense shall include the following: a. A license imposed through clerical error. b. An illegal license. c. A license levied for an illegal purpose. (2) If the license has been paid, the taxpayer, at any time within three years after such license became due, may make a demand for a refund of the license paid by submitting to the city council a written statement of his defense and a request for a refund thereof. (b) Action of governing body. Upon receiving a taxpayer's written statement of defense and request for release or refund, the city council shall within 90 days after receipt of such request determine whether the taxpayer has a valid defense to the license imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct license liability or notify the taxpayer in writing that no release or refund will be made. The action of the city council on applications for refunds shall be recorded in its minutes. If a refund is made, the finance department shall forward such refund to the tax collector, who shall note on all records the amount of refund, check number and date. (c) Suit for recovery of license taxes. If within 90 days after receiving a taxpayer's request for refund or under subsection (a) of this section, the city council has failed to refund the full amount requested by the taxpayer, has notified the taxpayer that no refund will be made, or has taken no action on the request, the taxpayer may bring a civil action against the city for the amount claimed. Such action may brought at any time within three years from the expiration of the period in which the city council is required to act. (d) Civil action. Civil action brought pursuant to subsection (c) of this section shall be brought in the appropriate division of the general court of justice in the county. If, upon the trial, it is determined that the license or any part of it was illegal, or levied for an illegal purpose, or excessive as a result of a clerical error, judgment shall be rendered therefor with interest thereon at six percent per annum plus costs. The judgment shall be collected as in other civil actions. (Code 1985, § 13-34)

Charlotte City Code § 13-46 Free licenses prohibited; exception.

Sec. 13-46. - Free licenses prohibited; exception. No free license under this article shall be granted except to disabled veterans for peddling, provided such peddling is done on foot and not from any vehicle. Any such person must be approved by the county director of veterans affairs in order for the license to be granted. (Code 1985, § 13-35)

Charlotte City Code § 13-47 Privilege tax on motor vehicles.

Sec. 13-47. - Privilege tax on motor vehicles. (a) Imposed; scope. Each motor vehicle licensed by the state which is resident within the city as of the date of license issuance or renewal shall be subject to an annual privilege tax of $30.00; provided at least $10.00 of the tax per year per vehicle shall be dedicated to and may only be expended for mass transit systems and mass transit-related activities. For purposes of determining whether the motor vehicle is resident within the city, the provisions of the Machinery Act (G.S. 105-271 et seq.) shall be applicable. Motor vehicle privilege taxes shall be subject to proration, release and refund in the same manner as are ad valorem taxes on motor vehicles pursuant to G.S. 105-330 et seq. (b) Exception for the elderly. Any resident who is 65 years or older in the month in which his automobile registration expires may qualify, upon application, within 30 days of tax due date for a partial refund in the amount of $15.00, provided such resident's disposable income does not exceed $11,000.00. The qualifying disposable income will be adjusted automatically in the future to conform to any changes in the state's elderly exemption threshold. Qualified elderly residents are to pay initially the entire $30.00 tax per vehicle; processing of the refund by the Charlotte-Mecklenburg tax collector will result in a check in the amount of $15.00 per vehicle being mailed to qualified elderly residents. If the vehicle is in both husband and wife's name, their combined disposable income must not exceed $11,000.00. For the purpose of this section, the term "disposable income" shall mean their adjusted gross income as defined for state income tax purposes in G.S. 105-134.5, plus all other moneys received from every source, other than gifts or inheritances received from a spouse, lineal ancestors or lineal descendants. (c) Administration enforcement. The city may delegate to the county tax supervisor the authority to issue all or part of the tax bills for the tax imposed and may delegate to the Charlette-Mecklenburg tax collector the authority to collect all or part of the tax imposed in this section; and if so appointed, the tax supervisor, the tax collector and the county board of equalization and review shall respectively have the powers of listing, assessing, discovery, collection, levy, attachment, garnishment, release and rebate authorized to them under the Machinery Act to the same extent as such powers and authorities are available for the listing, assessing and collection of ad valorem taxes under the Machinery Act. The interest and penalties set forth in the Machinery Act shall be applicable to the listing, assessing and collection of the tax imposed in this section. (d) Due date. For vehicles subject to the ad valorem property tax, the tax imposed in this section is due and payable on the same date that the property tax is due. For vehicles exempt from the ad valorem property tax but subject to the 1.5 percent tax on the gross receipts from the retail shortterm rental or lease of such vehicles, the tax imposed in this section is due and payable on the same date that the January gross receipts tax return is due. (Code 1985, § 13-36)

Charlotte City Code § 13-48 Privilege tax on garage and attic sales.

Sec. 13-48. - Privilege tax on garage and attic sales. (a) Restriction. It shall be unlawful for any person to conduct more than four garage or attic sales in a residentially zoned area at any given address to any given name in any one fiscal year. Each sale may be held for two consecutive days. (b) Enforcement. Zoning inspectors or police officers are empowered to enforce this section, including the issuance of citations. (c) Penalties and remedies. A citation for the first offense of conducting an unlicensed or unlawful sale shall be $25.00, the second offense shall be for $50.00, and the third or any subsequent offense shall be for $100.00. The citation may be enforced, if unpaid, by either the issuance of a criminal summons, or it shall constitute a civil penalty to be recovered by the city in a civil action in the nature of a debt. Use of citations as a means of enforcement shall not preclude the city from exercising any other remedy by the immediate issuance of a criminal summons or the securing of an injunction, nor shall it prohibit a police officer from exercising any of his unlawful authority. (Code 1985, § 13-37)

Source: City of Charlotte, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/nc/charlotte/codes/code_of_ordinances?nodeId=PTIICOOR_CH13LI_ARTIIBUOCLI_DIV1GEFetched: 10/27/2026