PRIVILEGE LICENSE TAXES

Raleigh City Code pt. 2, ch. 2, art. B

in effect

Raleigh City Code § 2-2011 DEFINITIONS.

Sec. 2-2011. - DEFINITIONS. The following words, whenever they are used in this article, shall be deemed to have the following meanings: (a) Business. The term business means any trade, occupation, profession, business, franchise, or calling of any kind, subject by the provisions of this article to a license tax. (b) Engaged (or engaging) in business within the City. A person is engaged in business within the City when he engages in business activity of any type, either as owner or operator of such business, (i) by maintaining a business location within the City; (ii) by soliciting business within the City; or (iii) by picking up or delivering merchandise or performing services within the City. (c) Person. The term person includes any individual, trustee, executor, other fiduciary, corporation, association, partnership, company, firm, or other legal entity or agent thereof. (d) Seasonal in nature. A business is seasonal in nature when it is taxed by this article on an annual basis, but is operated within the City for less than six (6) months of the year.

Raleigh City Code § 2-2012 CONSTRUCTION OF ARTICLE.

Sec. 2-2012. - CONSTRUCTION OF ARTICLE. This article is enacted primarily for revenue purposes. Therefore, it should be construed to require payment of the maximum tax permitted under its terms. In addition, issuance of a license pursuant to this article does not excuse a licensee from compliance with any other applicable ordinance or statute. 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.

Raleigh City Code § 2-2013 LICENSE TAX LEVIED.

Sec. 2-2013. - LICENSE TAX LEVIED. A license tax is hereby levied on the privilege of engaging in every business within the City which is listed in the schedule of taxes on file in the Department of Finance, Collections Division, hereby incorporated herein and made a part hereof by reference. Any person so engaged in business shall be responsible for making certain that the applicable license tax is paid.

Raleigh City Code § 2-2014 REVENUE COLLECTOR; DUTIES.

Sec. 2-2014. - REVENUE COLLECTOR; DUTIES. (a) The Revenue Collector is hereby designated as the proper City official to collect license taxes and to issue privilege licenses. (b) The Revenue Collector shall make any investigation necessary to determine the tax liability of persons engaged in business within the City. If necessary, the Revenue Collector is authorized to enter upon the premises of any such business during normal business hours for the purpose of determining whether this article has been complied with.

Raleigh City Code § 2-2015 LICENSE; DUE DATE.

Sec. 2-2015. - LICENSE; DUE DATE. (a) Unless otherwise provided in the schedule of taxes provided for in §2-2013, each privilege license issued shall cover the twelve-month period beginning June 1 of each calendar year and ending May 31 of the subsequent calendar year. (b) The privilege license tax is due on June 1 of each year. If, however, a person begins a business after June 1, the tax for that year must be paid before the business is begun. (c) The Revenue Collector shall not issue a license until the tax levied under §2-2013 has been paid.

Raleigh City Code § 2-2016 APPLICATION; FALSE STATEMENT THEREON.

Sec. 2-2016. - APPLICATION; FALSE STATEMENT THEREON. (a) Every person desiring to obtain a license for the privilege of engaging in a business within the City shall make application therefor in writing to the Revenue Collector. The application, to be made on a form provided by the Revenue Collector, shall contain the following information: (i) name and nature of the business for which the license is sought; (ii) the address where the business is conducted, and a mailing address for the business, if different; (iii) the name and address of the person filling out the application, and his relationship to the business; (iv) the gross receipts of the business for the most recently completed tax year, if applicable; and (v) any other information which the Revenue Collector determines to be necessary. (b) Any person who willfully makes a false statement on a license application shall be guilty of a misdemeanor and, upon conviction, shall be fined or imprisoned in the discretion of the court and any fine shall be in addition to the amount of the tax. (c) The following types of businesses shall pay a nonrefundable application fee of one hundred twenty-five dollars ($125.00) to offset the cost of investigations required. Upon approval these businesses shall also pay the applicable privilege license tax as specified: (1) Class one—Entertainment centers. (2) Class two—Entertainment centers. (3) Dance halls. (4) Private clubs. (5) Public clubs. (6) Establishments with live entertainment, but without alcoholic beverages. (Ord. No. 1985-677, §1, 11-19-85; Ord. No. 2001-935, §4, 2-6-01)

Raleigh City Code § 2-2017 COMPUTATION OF TAX BASED ON GROSS RECEIPTS.

Sec. 2-2017. - COMPUTATION OF TAX BASED ON GROSS RECEIPTS. (a) Whenever this article levies a privilege license tax computed on the basis of gross receipts, "gross receipts" means the amount reported as gross receipts on a business's state income tax return, or on the Federal income tax return filed with the State income tax return if the State return does not separately state gross receipts, for the most recently completed tax year. (b) If a business has not been in operation long enough for the information required in subsection (a) of this section to be available, the Revenue Collector shall estimate gross receipts for the business, based on gross receipts of comparable businesses or any other information that the Revenue Collector considers useful. (c) On or before the June 30 immediately after each license year, each licensee for whom the tax paid in the license year just concluded was based on estimated gross receipts shall submit to the Revenue Collector a sworn final report showing the amount of gross receipts for the license year. If the amount shown is more than estimated gross receipts, the licensee shall pay the amount of additional tax that would have been due had the estimate been accurate. If the amount shown is less than estimated gross receipts, the City shall refund to the licensee the difference between the actual tax paid and the amount of tax that would have been due had the estimate been accurate.

Raleigh City Code § 2-2018 PRORATION OF TAX; SEASONAL BUSINESSES.

Sec. 2-2018. - PRORATION OF TAX; SEASONAL BUSINESSES. (a) Except when a tax is based on gross receipts, if a business is begun after January 1, but before May 31, the tax shall be one-half of the amount otherwise due. (b) Except when a tax is based on gross receipts, a person engaged in a business which is seasonal in nature is liable for one-half of the amount of tax otherwise due.

Raleigh City Code § 2-2019 BUSINESSES WITHIN ANNEXED AREA.

Sec. 2-2019. - BUSINESSES WITHIN ANNEXED AREA. In the event the City limits shall be extended to include any business, trade or profession that was outside the City limits on May 1 or June 1 of any license tax year, such business, trade or profession shall become liable for the payment of privilege license taxes upon the date of its annexation into the corporate limits. Such newly annexed business, trade or profession shall pay a proportionate part of the privilege license that it would have been required to pay, had it been located within the corporate limits for the entire license tax year. (Code 1959, §14-12(d))

Raleigh City Code § 2-2020 MULTIPLE BUSINESSES.

Sec. 2-2020. - MULTIPLE BUSINESSES. If a person is engaged in more than one business made subject to a license tax under this article, such person shall pay the license tax prescribed in the tax schedule provided for in §2-2013 of this article for each such business, even if the businesses are conducted at the same business location.

Raleigh City Code § 2-2021 SEPARATE PLACES OF BUSINESS.

Sec. 2-2021. - SEPARATE PLACES OF BUSINESS. Unless otherwise provided by State law or by the tax schedule provided for in §2-2013 of this article, if a person engages in a business in two (2) or more separate places, a separate license tax shall be required for each such place of business. For purpose of this section, if a person engages in the same business at two (2) or more locations within the City, which locations (i) are contiguous, (ii) communicate with and open directly into each other, and (iii) are operated as a unit, the person is liable for only one license tax.

Raleigh City Code § 2-2022 FORM AND CONTENTS OF LICENSE.

Sec. 2-2022. - FORM AND CONTENTS OF LICENSE. A license shall show the name of the person licensed, the place where the business is conducted (if it is to be conducted at one (1) place), the nature of business licensed, the period for which the license is issued, and the amount of tax paid. In addition, if a machine is licensed, the license shall show the serial number of the machine. The Revenue Collector shall keep a copy of each license issued.

Raleigh City Code § 2-2023 DISPLAY OF LICENSE.

Sec. 2-2023. - DISPLAY OF LICENSE. Each person issued a license under this article shall post the license in a conspicuous place in his regular place of business. If there is no regular place of business, the business license shall be kept where it may be inspected while the person is engaged in business within the city by the Chief Financial Officer or his designee or a member of the Raleigh Police Department. If a machine or other item of personal property is licensed the license shall be affixed to the personal property. A business license must be presented to the Chief Financial Officer or a member of the Raleigh Police Department upon request. (Ord. No. 2011-942, §1, 9-6-11)

Raleigh City Code § 2-2024 ASSIGNMENTS.

Sec. 2-2024. - ASSIGNMENTS. A license may be assigned if (i) a business licensed under this article and carried on at a fixed place is sold as a unit to any person, and (ii) the purchaser is to carry on the same business at the same place. Such a change shall be reported to the Revenue Collector pursuant to §2-2013 of this article. Otherwise, each license issued under this article is a personal privilege and is not assignable; provided, any license issued under this article to bondsmen engaged in the business of writing appearance, compliance or bail bonds required in connection with criminal proceedings in any courts; collection agencies, contractors and construction companies, companies engaged in the business of selling or installing automatic sprinkler systems, gypsies, lightning rod agents, and peddlers, constitutes a personal privilege to conduct the business named in the license and shall not be transferred or assigned to any other person.

Raleigh City Code § 2-2025 CHANGE IN PLACE OF BUSINESS.

Sec. 2-2025. - CHANGE IN PLACE OF BUSINESS. If a person who has obtained a license for a business taxed under this article desires to move from one business location to another within the City, the license which has been issued shall be valid for the remainder of the license year at this new location and no additional tax need be paid. Within a reasonable time after the change in location; however, such person shall inform the Revenue Collector of the change in address.

Raleigh City Code § 2-2026 NO ABATEMENT OF TAX.

Sec. 2-2026. - NO ABATEMENT OF TAX. If a licensee discontinues a business before the end of the period for which the license was issued, the license tax shall not be abated nor shall a refund of any part of the license tax be made; provided a tax refund may be granted by the Council when the applicant for the license never commenced the business.

Raleigh City Code § 2-2027 EFFECT OF LICENSE.

Sec. 2-2027. - EFFECT OF LICENSE. The issuance of a license under this article does not authorize the carrying on of a business for which additional licenses or qualifications are required by state or local law, nor does the issuance of a license prevent the City from enacting additional regulations applicable to the licensee.

Raleigh City Code § 2-2028 EXEMPTIONS.

Sec. 2-2028. - EXEMPTIONS. (a) Any person who engages in business within this City for religious, nonprofit educational or charitable purposes shall be exempt from paying any privilege license tax levied by this article. (b) All persons engaged in the business of renting commercial or residential real property are exempt from paying any privilege license tax, except parking lots and storage units or buildings shall pay any privilege license tax levied by this article. (Ord. No. 1991-883, §1, 12-3-91; Ord. No. 1992-908, §1, 1-21-92; Ord. No. 2011-931, §1, 7-19-11)

Raleigh City Code § 2-2029 UNLAWFUL TO CONDUCT BUSINESS WITHOUT A LICENSE.

Sec. 2-2029. - UNLAWFUL TO CONDUCT BUSINESS WITHOUT A LICENSE. (a) It shall be unlawful for any person to engage in a business within this City upon which a privilege license tax is imposed by this article, without having paid the license tax specified in the schedule of license taxes, hereby incorporated herein and on file in the Department of Finance, Revenue Collections Division. Violators shall be guilty of a misdemeanor and, upon conviction, shall be fined, or imprisoned in the discretion of the court; but the fine shall not be less than twenty (20) per cent of the tax in addition to the tax and the cost. Each day that a person engages in business in violation of this section constitutes a separate offense. (b) The City may seek an injunction against any person engaging in business in violation of this section. (c) A conviction under this section does not relieve a person of his liability for the license tax or taxes imposed by this article.

Raleigh City Code § 2-2030 COLLECTION OF UNPAID TAX.

Sec. 2-2030. - COLLECTION OF UNPAID TAX. (a) All taxes imposed by this article shall be paid to the Revenue Collector and shall be due and payable on May 1 and delinquent and subject to penalty after June 1. (b) If a person begins or continues to engage in a business taxed under this article without payment of the required privilege license tax, the Revenue Collector may use either of the following methods to collect the unpaid tax: (i) the remedy of levy and sale or attachment and garnishment, in accordance with G.S. 160A-207; or (ii) the remedy of levy and sale of real and personal property of the taxpayer in accordance with G.S. 105-109(d). (c) Any person who begins or continues to engage in a business taxed under this article without payment of such tax is liable for an additional tax of two and one-half (½) per cent of the original tax due for each thirty (30) days or portion thereof that the tax is delinquent, provided the additional tax shall be limited to fifty (50) per cent of the tax originally levied but in no event less than ten dollars ($10.00).

Raleigh City Code § 2-2031 SCHEDULE OF LICENSE TAXES.

Sec. 2-2031. - SCHEDULE OF LICENSE TAXES. A current schedule of license taxes shall be maintained on file in the offices of the Department of Finance, Revenue Collections Division.

Raleigh City Code § 2-2032 RESERVED.

Raleigh City Code § 2-2033 REVOCATION OR SUSPENSION OF LICENSES.

Sec. 2-2033. - REVOCATION OR SUSPENSION OF LICENSES. Any license issued under this article shall be subject to revocation or suspension for a definite or indefinite time by the City Council, without refund of any part of the tax paid if the licensee or Manager or person in charge of the business or employee shall violate any article or law relative to such business, or be convicted of crime, or if, in the judgment of the Council, the licensed permit does, by reason of its nature or the manner or place in which it is conducted, constitute a nuisance, or is a menace to good order, or to public health, safety, or morals. Upon the revocation or suspension of any such license it shall be unlawful for the person to whom such license was granted to continue to conduct such business; upon the violation of this provision, the offender shall upon conviction be fined fifty dollars ($50.00) or imprisoned thirty (30) days. Each day such business is conducted after revocation or suspension of license shall constitute a separate offense. (Code 1959, §14-19)

Source: City of Raleigh, North Carolina, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/nc/raleigh/codes/code_of_ordinances?nodeId=DIVIICOGEOR_PT2FI_CH2RETA_ARTBPRLITAFetched: 11/1/2026