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HomeMy WebLinkAboutO-1233OR - L NO. 1233 Business License Ordinance ORDINANCE NO. 1233 BUSINESS LICENSE CODE OF THE CITY OF FAIRHOPE, FAIRHOPE, ALABAMA FOR THE YEAR 2005 AND EACH SUBSEQUENT YEAR SCHEDULE OF LICENSES AND FEES Delete Article I of Chapter 8 - Business Licenses, Taxes and Regulation. Replace with Chapter 8 - Business License Code, Taxes Regulation Article II - Tobacco Products - Unchanged Article III - Article IV - Article V Article VI Article VII - Lodging Tax - Unchanged BE IT ORDAINED BY THE CITY OF COUNCIL OF FAIRHOPE, ALABAMA, as follows: SECTION 1. Levy of tax. ' Page 02 SECTION 2. Definition of terms. Page 02 SECTION 3. License term; minimum license. Page 04 SECTION 4. License shall be location specific. Page 05 SECTION 5. License transfer restrictions. Page 06 SECTION 6. Unlawful to do business without a license. Page 07 SECTION 7. License must be posted. Page 07 SECTION 8. Duty to file report. Page 07 SECTION 9. Duty to permit records inspection. Page 09 SECTION 10. Unlawful to obstruct municipal designee. Page 09 SECTION 11. Privacy of information. Page 10 SECTION 12. Failure to file assessment. Page 10 SECTION 13. Lien for non-payment of license tax. Page 11 SECTION 14. Criminal penalties. Page 11 SECTION 15. Civil penalties. Page 11 SECTION 16. Penalties and interest. Page 11 SECTION 17. Prosecutions unaffected. Page 12 SECTION 18. Procedure for denial of new applications. Page 12 SECTION 19. Procedure for revocation/suspension of license. Page 13 SECTION 20. Refunds on overpayments. Page 13 SECTION 21. Delivery License. Page 15 SECTION 22. License classification codes. Page 16 SECTION 23. License Fee Schedules. Page 20 SECTION 24. Exemptions for eligible veterans Page 25 SECTION 25. Exempt state and interstate transactions Page 26 SECTION 26. Health permit for food establishments Page 26 SECTION 27. Vehicular Signs Page 26 SECTION 28. Exchange of information. Page 26 SECTION 29. License fees in Police Jurisdiction. Page 27 SECTION 30. Effective date. Page 27 SECTION 31. Severability. Page 27 SECTION 32. Repealer. Page 27 01 ENO. 1233 Business License Ordinance Chapter 8 Article I — Business Licenses Taxes and Regulation SECTION 1. Levy of Tax. Pursuant to the Code of Alabama, the following is hereby declared to be and is adopted as the business license code and schedule of licenses for the municipality for the year beginning January 1, 2005, and for each subsequent year thereafter. There is hereby levied and assessed a business license fee for the privilege of doing any kind of business, trade, profession or other activity in the municipality, or the police jurisdiction, by whatever name called. SECTION 2. Definitions. Unless the context clearly requires otherwise, the following terms shall have the following meaning as set forth below: [1] BUSINESS. Means and includes all activities engaged in or caused to be engaged in within the municipality, including any commercial or industrial enterprise, trade, profession, occupation, calling or livelihood, including the lease or rental of residential or nonresidential real estate, and every other kind of activity whether or not carried on for gain or profit, and whether or not engaged in as a principal or as an independent contractor, but shall not include services rendered by an employee to his or her employer. [2] BUSINESS LICENSE. An annual license issued by the municipality for the privilege of doing any kind of business, trade, profession or other activity in the municipality, by whatever name called. [3] BUSINESS LICENSE REMITTANCE FORM. Any business license return, renewal reminder notice, or other writing on which the taxpayer calculates the business license tax liability for all or part of the license year and remits the amount so calculated with the form. [4] DESIGNEE. An agent or employee of the municipality authorized to administer and/or collect the municipality's business license taxes, which may include another taxing jurisdiction, the Department of Revenue, or a "private auditing firm" as defined in Section 40-2A-3 of the Code of Alabama. [5] CORPORATE LIMITS. Corporate limits mean the corporate limits of the municipality. OP NO. 1233 Business License Ordinance [6] GROSS RECEIPTS. The measure of any and all receipts of a business from whatever source derived, to the maximum extent permitted by applicable laws and constitutional provisions, to be used in calculating the amount due for a business license. Provided, however, that: (a) Gross receipts shall not include any of the following taxes collected by the business on behalf of any taxing jurisdiction or the federal government: sales or seller's use tax; utility gross receipts taxes levied pursuant to Article 3, Chapter 21, Title 40; license taxes levied pursuant to Article 2, Chapter 21, Title 40; State, County or municipal excise or sales taxes on the sale of gasoline or other motor fuels; or municipal sales or excise taxes on the sale of tobacco or tobacco products or liquor or alcoholic beverages. (b) A different basis for calculating the business license may be used with respect to certain categories of taxpayers as prescribed herein. (c) Gross receipts of those entities subject to levy and assessment of municipal license taxes under section 11-51-129 shall be limited to the gross receipts derived from the furnishing of utility services within the municipality during the preceding year. The term "gross receipts" for purposes of this clause {c} shall be defined, and construed, in accordance with Section 40-21-90(3). [7] LICENSE FORM. Any business license application form, renewal reminder notice, business license remittance form, or business license return by whatever name called. [8] LICENSEE. Any taxpayer or other persons issued a business license under this ordinance and/or the person responsible for the payment of the license tax. [9] LICENSE OFFICER or MUNICIPAL LICENSE OFFICER. The municipal employee charged by the municipality with the primary responsibility of administering the municipality's business license tax ordinance and related matters thereto. [10] LICENSE YEAR. License year means the calendar year. [I I ] PERSON. Person means an individual, a corporation, a partnership, an association, a joint stock company, a business trust, an unincorporated organization, or any other legal entity. [12] SCHEDULE OF LICENSES. Schedule of licenses or schedule refers to the classifications included herewith, which describes the various business activities subject OR NO. 1233 Business License Ordinance 4 to this business license ordinance and specifies the applicable license tax rate for each activity. [ 13] TAXPAYER. Taxpayer means any person, firm, corporation, or other legal entity liable under this ordinance for any business license tax levied by the municipality. [14] WILLFULLY. An act is done willfully when it is done voluntarily, with a conscious motion of the will. Willfulness does not require knowledge that the conduct was unlawful. [15] OTHER TERMS. Other capitalized or specialized terms used in this ordinance, and not defined above, shall have the same meanings ascribed to them in Section 40-2A-3, of the Alabama Code, unless the context therein otherwise specifies. SECTION 3. License term; minimums. The license term and the minimum amount for a business license are as follows: (a) Full Year. Every person who commences business before the first day of July shall be subject to and shall pay the annual license for such business in full. Unless otherwise specified in the enclosed schedules, the minimum annual license shall be $ 100.00. (b) Half Year. Every person who commences business on or after July Is', shall be subject to and shall pay one-half (1/2) the annual license for such business for that calendar year. (c) Issue Fee. For each license issued there shall be an issue fee collected of five dollars ($5.00) and said issue fee shall be collected in the same manner as the license tax. (d) Annual Renewal. Except as provided in subsections (i) or (ii), the business license shall be renewed annually on or before the 3Is' day of January each year. ( i ) If the due date for payment of any business license falls on a weekend or a holiday recognized by the municipality from time to time, the due date shall automatically be extended until the next business day. ( ii ) Insurance company annual license renewals shall be renewed in accordance with Section I 1-51-122 of the Code of Alabama which states that each year, each insurance company shall furnish the municipality a statement in writing duly certified showing the full and true amount of gross premiums received during the preceding year and shall accompany such statement with the amount of license tax due according to the O 'ENO. 1233 Business License Ordinance licensing schedule. Failure to furnish such statement or to pay such sum shall subject the company and its agents to those penalties as prescribed for doing business without a license as provided for in the municipal code. ( iii ) On or before December 31 of each year, a renewal reminder shall be mailed to each licensee that purchased a business license during the current year. Said renewal notice shall be mailed via regular U.S. mail to the licensee's last known address of record with the municipality. Licensees are required to furnish the municipality any address changes for their business prior to December I" in order for them to receive their notice. ( iv ) Business license renewal payments received by the municipality shall be applied to the current renewal only when any and other debts the licensee owes to the municipality are first paid in full. No business license shall be issued if the current renewal payment does not meet said prior obligations and the current renewal. Failure to pay such sums shall subject the licensee and its agents to those penalties as prescribed for doing business without a license provided for in the municipal code. SECTION 4. License shall be location specific. (a) For each place at which any business is carried on, a separate license shall be paid, and any person desiring to engage in any business for which a license is required shall designate the place at which business is carried on, and the license to be issued shall designate such place, and such license shall authorize the carrying on of such business only at the place designated. (b) Every person dealing in two or more of the articles, or engaging in two or more of the businesses, vocations, occupations or professions scheduled herein, shall take out and pay for a license for each line of business. (c) A taxpayer subject to the license authorized by this ordinance that is engaged in business in other municipalities, may account for its gross receipts so that the part of its gross receipts attributable to its branch offices will not be subject to the business license imposed by this ordinance. To establish a bona fide branch office, the taxpayer must demonstrate proof of all following criteria: ( i ) The taxpayer must demonstrate the continuing existence of an actual facility located outside the police jurisdiction in which its principal business office is located, such as a retail store, outlet, business office, showroom, or 01 . NO. 1233 Business ,icense Ordinance warehouse, to which employees and/or independent contractors are assigned or located during regular normal working hours. ( ii ) The taxpayer must maintain books and records, which reasonably indicate a segregation or allocation of the taxpayer's gross receipts to the particular facility of facilities. ( iii ) The taxpayer must provide proof that separate telephone listings, signs, and other indications of its separate activity are in existence. ( iv ) Billing and/or collection activities relating to the business conducted at the branch office or offices are performed by an employee or other representative, of the taxpayer who has such responsibility for the branch office. ( v ) All business claimed by a branch office or offices must be conducted by and through said office or offices. ( vi ) The taxpayer must supply proof that all applicable business licenses with respect to the branch office or offices have been issued. ( vii ) The facility or facilities claiming to be classified as a branch office or offices must have been operating continuously on a monthly basis for the 12 months prior to the date on which business licenses are due and payable. SECTION 5. Restriction on transfer of license. No license shall be transferred except with the consent of the municipal governing body and no license shall be transferred to reflect a change of address of the taxpayer within the municipality more than once and never from one business to another business. Provided that a mere change in the name or ownership of a taxpayer that is a corporation, partnership, limited liability company or other form of legal entity now or hereafter recognized by the laws of Alabama shall not constitute a transfer for the purposes of this section, unless the change requires the taxpayer to obtain a new federal employer identification number or Department of Revenue taxpayer identification number. SECTION 6. Unlawful to do business without a license. It shall be unlawful for any person to willfully engage in any business within the corporate limits or within the police jurisdiction unless such person has been issued and OF NO. 1233 Business ,.icense Ordinance Y/ holds a current business license that has not been revoked or suspended. Each day that a person does business without such a license shall constitute a separate offense. SECTION 7. License must be posted. Every license shall be posted in a conspicuous place, where said business, trade or occupation is carried on, and the holder of the license shall immediately show same to the designee of the municipality upon being requested so to do. SECTION 8. Duty to file report. (a) It shall be the duty of every person subject to such license tax to render to the municipality on such forms as may be required, a sworn statement showing the total business done, amount of sales, gross receipts and gross sales, stock, value of furniture and other equipment, capital invested, number of helpers or employees, amount of space occupied, or other factor described in the schedule, one or several, as the case may require, for the ascertainment of the classification of such person for license taxation purposes and the correct amount of license tax to which he is subject. (b) If the municipality determines that the amount of business license tax reported on or remitted with any business license remittance form is incorrect, if no business license remittance form is filed within the time prescribed, or if the information provided on the form is insufficient to allow the taxing jurisdiction to determine the proper amount of business license tax due, the municipality shall calculate the correct amount of the tax based on the most accurate and complete information reasonably obtainable and enter a preliminary assessment for the correct amount of business license tax, including any applicable penalty and interest. (c) If the amount of business license tax remitted by the taxpayer is undisputed by the municipality, or if the taxpayer consents to the amount of any deficiency or preliminary assessment in writing, the municipality shall enter a final assessment for the amount of the tax due, plus any applicable penalty and interest. (d) The municipality shall promptly mail a copy of any preliminary assessment to the taxpayer's last known address by either first class U.S. mail or certified U.S. mail with return receipt requested, or, in the sole discretion of the municipality, deliver the preliminary assessment to the taxpayer by personal delivery. O: ENO. 1233 Business "icense Ordinance (e) (1) If a taxpayer disagrees with a preliminary assessment as entered by the taxing jurisdiction, the taxpayer shall file a petition for review with the municipal license officer within 30 days from the date of entry of the preliminary assessment setting out the specific objections to the preliminary assessment. If a petition for review is timely filed, the license officer of the municipality shall schedule a conference with the taxpayer for the purpose of allowing the taxpayer or its representatives and the representatives of the municipality to present their respective positions, discuss any omissions or errors, and to attempt to agree upon any changes or modifications to the assessment. The license officer shall issue findings of fact and law within 60 days following the conference, which shall promptly upon issuance be mailed or delivered to the taxpayer, consistent with the procedures set forth in subsection (d) above. (2) If the taxpayer disagrees with the license officer's findings of fact and law, the taxpayer may appeal to the municipal governing body, by filing a notice of appeal with the municipal clerk within 30 days after the findings have been issued. The appeal shall be in writing and shall set forth in reasonable detail the grounds on which the taxpayer disagrees with the license officer's findings of fact and law. (3) If a petition for review: a. is not timely filed, or b. is timely filed, and upon further review the license officer, or the administrative hearings officer or governing body of the municipality, as the case may be, determines that the preliminary assessment is due to be upheld in whole or in part, the taxing jurisdiction shall make the assessment final in the amount of business license tax due as computed by the taxing jurisdiction, with applicable penalty and interest. (4) A copy of the final assessment shall promptly be mailed to the taxpayer's last known address (i) by either first class U.S. mail or certified U.S. mail with return receipt requested in the case of assessments of business license tax of five hundred dollars ($500.00) or less, or (ii) by certified U.S. mail with return receipt requested in the case of assessments of business license tax of 0 ENO. 1233 Business—icense Ordinance M more then five hundred ($500.00). In either case, at the option of the taxing jurisdiction a copy of the final assessment may be delivered to the taxpayer by personal delivery. SECTION 9. Duty to permit inspection and produce records. Upon demand by the designee of the municipality, it shall be the duty of all licensees to: (a) Permit the designee of the municipality to enter the business and to inspect all portions of his place or places of business for the purposes of enabling said municipal designee to gain such information as may be necessary or convenient for determining the proper license classification, and determining the correct amount of license tax; (b) To furnish information during reasonable business hours, at the licensee's place of business, in the municipality or the police jurisdiction, all books of account, invoices, papers, reports and memoranda containing entries showing amount of purchases, sales receipts, inventory and other information from which the correct license tax classification of such person may be ascertained and the correct amount of license tax to which he is subject may be determined, including exhibition of bank deposit books, bank statements, copies of sales tax returns to the State of Alabama, copies of Alabama income tax returns and federal income tax returns. SECTION 10. Unlawful to obstruct. It shall be unlawful for any person, or for any agent, servant or employee of such person, to fail or refuse to perform any duty imposed by this ordinance; nor shall any person, agent, servant or employee of such person obstruct or interfere with the designee of the municipality in carrying out the purposes of this ordinance. SECTION 11. Privacy. (a) It shall be unlawful for any person connected with the administration of this ordinance to divulge any information obtained by him/her in the course of inspection and examination of the books, papers, reports and memoranda of the taxpayer made pursuant to the provisions of this ordinance, except to the mayor, the municipal attorney or others authorized by law to receive such information described herein. (b) It shall be unlawful for any person to print, publish, or divulge, without the written permission or approval of the taxpayer, the license form of any OF NO. 1233 Business License Ordinance 10 taxpayer or any part of the license form, or any information secured in arriving at the amount of tax or value reported, for any purpose other than the proper administration of any matter administered by the taxing jurisdiction, or upon order of any court, or as otherwise allowed in this ordinance. (c) Nothing herein shall prohibit the disclosure of the fact that a taxpayer has or has not purchased a business license. Statistical information pertaining to taxes may be disclosed to the municipality council upon their written request through the Mayor's office. It shall be unlawful for any person to violate the provisions of this section. SECTION 12. Failure to file assessment. (a) In any case where a person subject to paying a license tax as provided herein fails to do so, the municipal designee shall be authorized to assess and determine the amount of license taxes due using the best information available either by return filed or by other means. (b) The taxpayer shall be notified by registered or certified mail, or by personal service, of the amount of any such assessment, and of his right to appear before the municipal governing body on a day named not less than twenty (20) days from the date of notice and to show cause why such assessment shall not be made final. Such appearance may be made by agent or attorney. (c) If no showing is made on or before the date fixed in such notice, or if such showing is not sufficient in the judgement of the municipality, such assessment shall be made final in the amount originally fixed, or in such other amount as is determined by the municipality to be correct. If upon such hearing the municipal designee finds a different amount due than that originally assessed, he/she shall make the assessment final in the correct amount, and in all cases shall notify the taxpayer of the assessment as finally fixed. (d) A notice by the United States mail, addressed to the taxpayer's last known place of business, shall be sufficient. Any assessment made by the designee of the municipality shall be prima facie correct upon any appeal. ORD —ENO. 1233 Business License Ordinance 11 SECTION 13. Lien for non-payment of license tax. On all property, both real and personal, used in the business, the municipality shall have a lien for such license, which lien shall attach as of the date when the license is due, as allowed by Alabama Code, Section 11-51-44 (1975). SECTION 14. Criminal penalties. Any person found guilty of violating any of the provisions of this ordinance shall be fined in an amount not less than fifty dollars ($50.00) and not more than five hundred dollars ($500.00), and may also be sentenced to imprisonment for a period of not exceeding six (6) months, in the discretion of the court trying the case, and violations on separate days shall each constitute a separate offense. SECTION 15. Civil penalties. In addition to the remedies provided by Alabama Code, Section 11-51-150 (1975) et seq., the continued or recurrent performance of any act or acts within the corporate limits or within its police jurisdiction for which a license may be revoked or suspended under this ordinance is hereby declared to be detrimental to the health, safety, comfort and convenience of the public and is a nuisance. The municipality, as an additional or alternative remedy, may institute injunctive proceedings in a court of competent jurisdiction to abate the same. SECTION 16. Penalties and interest. (a) All licenses not paid within thirty (30) days from the date they fall due shall be increased by fifteen (15) percent for the first thirty (30) days they shall be delinquent. (b) In the case of persons who began business on or after the first day of the calendar year, the license for such "new business" shall be increased by fifteen (15) percent for the first fifteen (15) days they shall be delinquent. (c) All delinquent accounts (both license taxes and penalties) shall also be charged simple interest at the rate of one (1) percent per month or part of month. SECTION 17. Prosecutions unaffected. The adoption of this ordinance shall not in any manner affect any prosecution of any act illegally done contrary to the provisions of any ordinance now or heretofore in existence, and every such prosecution, whether begun before or after the enactment of this article shall be governed by the law under which the offense was committed; nor shall a prosecution, or the right to prosecute, for the recovery of any penalty or the ORDi ENO. 1233 Business License Ordinance 12 enforcement of any forfeiture be in any manner affected by the adoption of this ordinance; nor shall any civil action or cause of action existing prior to or at the time of the adoption of this ordinance be affected in any manner by its adoption. SECTION 18. Procedure for denial of new applications. (a) The municipal designee shall have the authority to investigate all applications and may refer any application to the municipal governing body for a determination of whether such license should or should not be issued. (b) If the municipal governing body denies the issuance of any license referred to it, the municipal clerk shall promptly notify the applicant of the municipal governing body's decision. (c) If said applicant desires to appear before the municipal governing body to show cause why said license should be issued, he shall file a written notice with the municipal clerk, said notice to be filed within two (2) weeks from the date of mailing by the municipal clerk of the notice of the denial of such license by the municipal governing body. (d) Upon receipt of said notice the municipal clerk shall promptly schedule a hearing, to be held within fifteen (15) days from the date of receipt of such notice, before the municipal governing body and shall give the notice of the date, time and place of said hearing to the applicant. (e) The applicant shall be given the opportunity to appear personally, or through his counsel, or both, and the municipal governing body shall proceed to hear any evidence which may be presented both for and against the issuance of said license. (f) If the municipal governing body determines from the evidence presented that in order to either provide for the safety, preserve the health, promote the prosperity, or improve the morals, order, comfort and convenience of the inhabitants of the municipality said license should not be granted, it shall enter an order to that effect; otherwise, said license shall be ordered issued upon payment of any required license fees. SECTION 19. Procedure for revocation or suspension of license. (a) Any lawful license issued to any person to conduct any business shall be subject to revocation by the municipal governing body for the violation OR CE NO. 1233 Business License Ordinance 13 by the licensee, his agent, servant, or employee of any provision of this ordinance or of any ordinance of the municipality, or any statute of the State of Alabama relating to the business for which such license is issued; and shall also be subject to revocation by the municipal governing body if the licensee, his agent, servant, or employee under color of such license violates or aids or abets in violating or knowingly permits or suffers to be violated any penal ordinance of the municipality or any criminal law of the State of Alabama; and shall also be subject to revocation by the municipal governing body if, in connection with the issuance or renewal of any license, the licensee or his agent filed or caused to be filed any application, affidavit, statement, certificate, book, or any other data containing any false, deceptive or other misleading information or omission of material fact. (b) The conditions hereinabove set forth as grounds for the revocation of a license shall also constitute grounds for refusing to renew a license. (c) The municipal governing body shall set a time for hearing on the matter of revoking or refusing to renew a license; and a notice of such hearing shall be given to the licensee, or the applicant for renewal, as the case may be, at least ten (10) days before the day set for said hearing. At the hearing the municipal governing body shall hear all evidence offered by any party and all evidence that may be presented bearing upon the question of revocation or the refusal of renewal, as the case may be. SECTION 20. Refunds On Overpayments (a) Any taxpayer may file a petition for refund with the municipality for any overpayment of business license tax erroneously paid to the municipality. If a final assessment for the tax has been entered by the municipality, a petition for refund of all or a portion of the tax may be filed only if the final assessment has been paid in full prior to or simultaneously with the filing of the petition for refund. (b) A petition for refund shall be filed with the municipality within two years from the date of payment of the business license tax, which is the subject of the petition. (c) The municipality shall either grant or deny a petition for refund within six months from the date the petition is filed, unless the period is extended by written agreement of the taxpayer and the municipality. The taxpayer shall be notified of the municipality's decision concerning the petition for refund by first class U.S. mail or by certified U.S. mail, ORD —'ENO. 1233 Business License Ordinance 14 return receipt requested, sent to the taxpayer's last known address. It the municipality fails to grant a full refund within the time provided herein, the refund petition shall be deemed to be denied. (d) If the petition is granted or the municipality or a court otherwise determines that a refund is due, the overpayment shall be promptly refunded to the taxpayer by the municipality, together with interest to the extent provided for in Section 11-51-92. If the municipality determines that a refund is due, the amount of overpayment plus any interest due thereon may first be credited by the municipality against any outstanding tax liabilities due and owing by the taxpayer to the municipality, and the balance of any overpayment shall be promptly refunded to the taxpayer. If any refund or part thereof is credited to any other tax by the municipality, the taxpayer shall be provided with a written detailed statement showing the amount of overpayment, the amount credited for payment to other taxes, and the resulting amount of the refund. (e) A taxpayer may appeal from the denial in whole or in part of a petition for refund by filing a notice of appeal with the clerk of the circuit court of the county in which the municipality denying the petition for refund is located. Said notice of appeal must be filed within two years from the date the petition was denied. The circuit court shall hear the appeal according to its own rules and procedures and shall determine the correct amount of refund due, if any. If an appeal is not filed with the appropriate circuit court within two years of the date the petition was denied, then the appeal shall be dismissed for lack of jurisdiction. SECTION 21. Delivery License. (a) In lieu of any other type of license, a taxpayer may at its option purchase for $ 100.00 plus the issuance fee, a delivery license for the privilege of delivering its merchandise in the municipality if the taxpayer meets all of the following criteria: (1) Other than deliveries, the taxpayer has no other physical presence within the municipality or its police jurisdiction; (2) The taxpayer conducts no other business in the municipality other than delivering merchandise and performing the requisite set-up and installation of said merchandise; ORL ENO. 1233 Business License Ordinance 15 (3) Such delivery and set-up and installation is performed by the taxpayer's employees or agents, concerns the taxpayer's own merchandise in that municipality, and is done by means of delivery vehicles owned, leased, or contracted by the taxpayer; (4) The gross receipts derived from the sale and any requisite set-up or installation of all merchandise so delivered shall not exceed seventy-five thousand dollars ($75,000) during the license year; (5) Any set-up or installation shall relate only to (i) that required by the contract between the taxpayer and the customer or as may be required by state or local law, and (ii) the merchandise so delivered; (6) If at any time during the current license year the taxpayer fails to meet any of the above stated criteria, then within 10 days after any of said criteria have been violated or exceeded, the taxpayer shall purchase all appropriate business licenses from the municipality for the entire license year and without regard to this section. (b) Mere delivery of the taxpayer's merchandise by common carrier shall not allow the municipality to assess a business license tax against the taxpayer, but the gross receipts derived from any sale and delivery accomplished by means of a common carrier shall be counted against the one hundred thousand ($100,000.00) limitation described in the preceding section if the taxpayer also during the same license year sells and delivers into the taxing jurisdiction using a delivery vehicle other than a common carrier. (c) A common carrier, contract carrier, or similar delivery service making deliveries on behalf of others shall not be entitled to purchase a delivery license. (d) The delivery license shall be calculated in arrears, based on the related gross receipts during the preceding license year. (e) The purchase of a delivery license shall not, in and of itself, establish nexus between the taxpayer and the municipality for purposes of the taxes levied by or under the authority of Title 40 of the Code of Alabama or other provisions of law, nor does the purchase of a delivery license conclusively determine that nexus doe not exist between the taxpayer and the municipality. ORD -ENO. 1233 Business License Ordinance 16 SECTION 22. License classifications. CODE NAICS TITLE AND SUGGESTED LICENSE GROUPING SCHEDULE 111998 Farming - agriculture, crop production, nursery, fruit, growers, F 112990 Animals - dairy, cattle, ranching, sheep, raising chickens, poultry F 113110 Forestry - logging, forestry, timber track operations, timber mgt, D 114119 Fishing & hunting - hunting and trapping, finfish, shellfish, supplies, E 115114 Agriculture support - cotton gins, farm mgt, post -harvest activities, F 211111 Oil and gas extraction - natural gas liquid extraction, crude extraction, C 212299 Mining - (except for oil and gas) all related mining activities, C 213112 Mining support services - for oil and gas mining activities, oil/gas wells, C 221122 Utilities - electric power or light company - state regulated G-1 221210 Utilities - natural gas company - state regulated G-1 221310 Utilities - water, sewage treatment, steam, and other G-1 221315 Cable T.V. — All providers of cable T.V including all services G-2 233320 Contractors - general contractors, comm bldg, subdivisions, E 233321 Contractors - general contractors - itinerant not local T 233322 Contractors — ,general contractor, residential E 234990 Contractors - heavy construction, highway, bridge, street, water, sewer, D 234991 Contractors - heavy construction - itinerant not local T 235110 Contractors - sspecialt, t� - plumbing, heating & air conditioning E 235210 Contractors - sspecialt, t� - painting and wall covering E 235310 Contractors - specialty, t� - electrical contractors E 235410 Contractors - specialty trade - masonry and stone contractors E 235420 Contractors - specialty, t� - drywall, acoustical & insulation E 235430 Contractors - specialty trade - tile, marble, terrazzo & mosaic E 235510 Contractors - specialty trade - carpentry contractors E 235520 Contractors - specialty trade - floor coverings/all types E 235610 Contractors - specialty trade - roofing, siding & sheet metal E 235710 Contractors - specialty trade - concrete contractors E 235810 Contractors - specialty trade - water well drilling & irrigation E 235910 Contractors - specialty trade - structural steel erection E 235920 Contractors - specialty t� - glass and glazing contractors E 235930 Contractors - specialty trade - excavation and site development E 235940 Contractors - specialty trade - wrecking and demolition E 235950 Contractors - specialty trade rade - building equipment & mechanical install E 235990 Contractors - specialty trades contractors- non -general & non -heavy, D 235991 Contractors - specialty trades contractors - itinerant not local T 311991 Food mfg - meat, seafood, grain, fruit, dairy, animal, poultry processing, F 3 12 100 Beverage mfg - all types of soft drinks, bottled water, breweries, and ice, E 312121 Beer - off premise - state regulated through ABC H ORL 'ENO. 1233 Business License Ordinance 17 312122 Beer - on premise - state regulated through ABC H 312123 Beer - on/off premise — State Regulated through ABC H 312124 Wine on premise — State Regulated through ABC H 312125 Wine — off premise - state regulated through ABC H 312131 Wine — on/off premise — State Regulated through ABC H 312132 Beer & Wine - wholesale distributor 312141 Alcohol - state regulated through ABC Il I:I 312142 Special Events Retail — One time event H 313112 Textile mfg - fabric, yarn, carpet, canvas, rope, twine, fabric mills, E 313133 VFW, Elks Lodge, and American Legions - $200.00 Section 24 314129 Other mfg - mill operations not covered in 313, rugs, linen, curtains E 315999 Apparel mfg - women, men, children, hosiery, outerwear, and accessories, D 316993 Leather mfg - shoes, luggage, handbag, related products, all footwear, D 321999 Wood mfg - sawmills, wood preservation, veneer, trusses, millwork, F-1 322229 Paper mfg - pulp, paper, and converted products, stationary, tubes, cores, E 323112 Printing - screen, quick, digital, books, lithographic, handbills, comm. D 324199 Petroleum and coal mfg - asphalt, grease, roofing, paving products, C 325998 Chemical mfg - of fertilizer, wood, pesticide, paint, soap, resin, plastic C 326291 Plastic & rubber mfg - tires, pipe, hoses, belts, bottles, sheet, wrap, film, D 327331 Nonmetallic mfg - glass, cement, lime, pottery, ceramic, brick, tile, C 331528 Primary metal mfg - iron, steel, aluminum, wire, copper, foundries C 332999 Metal fabrication - cutlery, structural, ornamental, machine shops, D 333990 Machinery mfg - office machinery, industrial, engines, farm, HVAC, C 334419 Computer & electronic mfg - audio, video, circuit boards, peripherals, C 335211 Appliance mfg - small appliance, lighting, electrical, battery, freezer, C 336112 Transportation mfg - mfg auto, truck, trailer, motor home, boat, ship, D 337129 Furniture mfg - cabinets, office, household, beds, medical, kitchen, C 339999 Miscellaneous mfg - specialty mfg not defined in separate categories F-1 421990 Wholesale trade - durable, vehicle, machinery, equipment, furniture, E 422720 Wholesale trade - wholesale gasoline distributor F 422990 Wholesale trade -non-durable, paper, apparel, grocery, beverages, dairy, E 441310 Motor vehicle & parts - auto, motorcycles, boats, parts, accessories, C 441311 Motor vehicles - new and/or used - dealerships and lots D 442290 Furniture - furniture, home furnishings, stores, floor coverings, window, C 443112 Electronic & appliance store - household, radio, television, computers, B 444130 Building materials - hardware, paint, home center, wallpaper, nursery, C 445120 Food & beverage stores - grocery, convenience store, markets, F 445310 Package Stores - selling beer, wine and liquor plus general mdse D 446199 Health care stores - drug, pharmacy, cosmetic, optical, health food C 447110 Gasoline Retail - selling gasoline with or without convenience stores Ord. # 448190 Clothing & accessories - men, women, children, infant, shoe, jewelry, B 451120 Sporting goods & hobbies - toy, fish, gun, books, games B ORD ENO. 1233 Business License Ordinance 18 452110 General merchandise stores -department, warehouse clubs, superstores C 453310 Used Merchandise Stores - books, miscellaneous, consignment, flea ink F 453998 Miscellaneous retailers - florist, gift, novelty, pet, art, tobacco, used mdse B 454390 Non -store retailers - vending machine operators, direct selling, mail order D 454391 Non -Store Retailer - peddlers license / local peddler I 454392 Non -Store Retailer - peddlers license / itinerant peddler T 481111 Air transportation - airline tickets, shipping, freight, charters service B 482110 Rail transportation - transportation, ticket offices, state regulated 11-51-124 483212 Water transportation - coastal, freight forwarders, inland, passenger B 484122 Truck transportation - local, long-distance, freight, moving, and storage C 484230 Truck transportation - terminal - state regulated 37-3-33 485113 Passenger transportation - charter and other vehicle transit services B 485114 Passenger transportation - bus terminals state regulated 37-3-33 485320 Passenger transportation - taxicabs, limousine service, buggy, charters, J 485321 Passenger transportation - number of taxis, cabs, limousines, or buggies J 487990 Sightseeing - scenic and sightseeing, land, air, water, special trans A 488410 Wrecker Services — Wrecker Services C 492210 Couriers - couriers and local messengers, services, local delivery services, C 492211 Delivery License — delivery license — sales less than $75,000.00 V 493110 Warehousing and storage -distribution, household, refrigerated, special, F 511199 Publishing industries - newspaper, book, periodical, databases, software B 512131 Motion pictures - theatres, videos, recording, drive-ins, sound studios, A 513100 Broadcasting - radio and television stations B 513310 Telecommunications - telephone local per 11-51-128 K 513320 Telecommunications - telephone long distance per 11-51-128 K 513322 Telecommunications - cellular and other wireless, paging, K 513330 Telecommunications - resellers of service 514190 Information services - all types of information services A 521110 Bank Main Office - not branch location or ATM U 521111 Bank Branch or ATM - not main office of bank U 522120 Savings and Loans - not branch location or ATM U 522121 S&L Branch or ATM - not main office of S&L U 522298 Pawn Shop - whether title pawn or merchandise A 522390 Credit services - companies and activities related to credit and mediation, B 523999 Securities, commodity - brokerage, portfolio, investment, other A 524126 Insurance Company - casualty, fire, and/or marine premiums 11-51-120/123 524128 Insurance Company - health, allied and all other premiums 11-51-120/123 524292 Agent Office - administration of third parties, pension funds, annuities, etc B 525990 Funds, trusts, other financial agencies - agents, agencies, investments, A 531390 Real estate - offices, agents, brokers, management, appraisers, A 532490 Rental and leasing - auto, truck, trailer, RV, all tangible property, C 532230 Rental and leasing - movie and video rental D ORM ENO. 1233 Business License Ordinance 19 541110 Attorney/Lawyers - individual and/or firm professional license A 541211 Accountant/CPAs - individual and/or firm professional license A 541310 Architect - individual and/or firm professional license A 541330 Engineer - individual and/or firm professional license A 541360 Surveyor - individual and/or firm professional license A 541511 Computer Programmer - individual and/or professional firm license A 541921 Photographer - studios, portrait, commercial, services A 541940 Veterinarian - individual and/or firm professional license A 541990 Professional Services Not Elsewhere Classified - scientific, technical, A 551110 Management companies - offices, enterprises, regional, corporate, B 561439 Administrative services - answering, employment, office, sec., travel, C 561621Alarm Companies — installation of alarm systems and maintenance E 561710 Exterminating services - exterminating company and its services E 561720 Janitorial firm -Janitorial cleaning services - individual or firm F 561730 Landscaping — landscaping and landscape architect E 561713 Lawn Maintenance — lawn maintenance E 562998 Waste management - companies, trucks, septic tanks, landfill, and services, F 611699 Educational services - technical, computer, sports, services, business, D 621111 Physician - individual and/or firm professional license A 621200 Dentist - individual and/or firm professional license A 621310 Chiropractor - individual and/or firm professional license A 621320 Optometrist - individual and/or firm professional license A 621491 HMO - medical centers and services B 621498 Outpatient Care Centers - all other types of services C 621910 Ambulance - ambulance company and/or services D 622110 Hospitals - surgical, substance abuse, psychiatric, general care, special, W 623110 Nursing care - residential care facility, day care, assisted living C 623312 Nursing Home - care for elderly and continuing care facilities W 624229 Social assistance - shelters, vocational, childcare, abuse, emergency, E 624300 Funeral Homes and Cemeteries — Funeral Homes and Cemeteries B 711219 Arts and sports - dance, musical, teams, tracks, promoters, agents, B 711310 Special Events - promoter or activity - see schedule for rates L 712190 Museums - museums and historical sites, zoos, botanical gardens, parks, C 713990 Amusement - arcades, golf clubs, marinas, fitness, bowling centers, B 721110 Accommodations - hotels, motels and similar facilities C-1 721191 Accommodations - bed and breakfast inns and services C-1 721214 Accommodations - trailer parks, RV parks, and travel parks E 721310 Accommodations - rooming houses and boarding houses E 722110 Restaurant - full service restaurant facility F 722211 Restaurant - limited facility or service F 722320 Caterers - and/or mobile food services C 722410 Drinking Establishment - club, lounge, bar or other B O: ENO. 1233 Business—icense Ordinance 20 811118 Repairs and maintenance - auto, paint/body, carwash, other vehicular, C 811219 Repairs and maintenance - all electronic equipment B 811412 Repairs and maintenance - all appliances, home & garden equipment D 812199 Personal Services - hair, skin, barber, beautician, diet, nail, tanning, B 812990 Fortune Teller or Clairvoyant - individual reader license M 910001 Category for number of - vending machines for all types vending N 910002 Category for number of - pool tables O 910003 Category for number of - amusement devices and/or games P 910004 Category for number of - buses, taxis, trucks, or other equipment Q 910005 Category for number of - employees as a basis for calculating license R 910006 Category for number of - square feet used for calculating license amount S 999111 Unclassified miscellaneous business services not elsewhere classified C 999222 Unclassified miscellaneous personal services not elsewhere classified B SECTION 23. License Fee Schedules. Schedule ffA Ff — If gross receipts are: More Less Than but than 0 49,999 $100.00 50,000 Plus 2.05/100.00 Schedule FFB ff — If gaross receipts are: More Less Than but than 0 491999 $100.00 5000 4991999 .60/100.00 500,000 Plus 1.00/1,000.00 Schedule FFC FF — Ikaross receipt are: More Less Than but than 0 49,999 $100.00 501000 499,999 .70/1,000.00 50000 Plus 1.00/1,000.00 OR CE NO. 1233 Business License Ordinance 21 Schedule "C-1 FF — If gross receipt are: More Less Than but than 0 49,999 $100.00 5000 499,999 .35/11000.00 5001000 Plus .50111000.00 Schedule "D " — If gross receipts are: More Less Than but than 0 49,999 $100 5000 499,999 .65/1,000.00 500000 Plus 1.00/1,000.00 Schedule "E FF — If gross receipts are: More Less Than but than 0 49,999 $100.00 501000 Plus .75/100.00 Schedule "F" - Ifgross receipts are: More Less Than but than 0 495999 $100.00 50,000 999,999 .60/1,000.00 Schedule FFF-I Ff - If gross receipts are: More Less Than but than 0 49,999 $100.00 5000 49%999 1.00/100.00 5001000 Plus .35/1,000.00 O SCE NO. 1233 Business License Ordinance 22 Schedule "G-1 "- Electric Company, Gas Company, Water, and Sewer Company For selling or distributing electrical current or natural gas, water, and collecting sewer services an amount equal to three percent of the gross receipts (unless otherwise agree to by parties) of the business transacted in the municipality for the previous year for the sale or distribution of electrical current or natural gas or water services or sewer services from any point in or into the municipality. The three percent of gross receipts does not negate other agreements entered into with the City of Fairhope. Schedule "G-2 "-Cable Company For selling or distributing cable services an amount equal to five percent of the gross receipts of the business transacted in the municipality for the previous year for the sale or distribution of cable services any point in or into the municipality. Less any existing Franchise Agreement fees. Schedule rrHFF - Beer, Wine & Lipuor State of Alabama Code Classification Amount Licensing Notes 040 (Beer On/Off Premise) 312123 75.00 050 (Beer Off Premise Only) 312121 50.00 060 (Table Wine On/Off Premise) 312131 75.00 070 (Table Wine Off Premise Only) 312125 75.00 010 (Lounge Retail Liquor Class I) 312122 75.00 All three codes are part 312141 75.00 of the package plus the 312124 75.00 business license code. 011 (Package Store Liquor Class II) 312121 75.00 All three codes are part 312141 75.00 of the package plus the 312125 75.00 business license code. 020 (Restaurant Retail Liquor) 312122 75.00 All three codes are part 312141 75.00 of the package plus the 312124 75.00 business license code. 032 (Club Liquor Class 11) 312122 350.00 All three codes are part 312141 75.00 of the package plus the 312124 75.00 business license code. 032 (Club Liquor Class — Special Club Liquor License for Community Service Organizations 313133 200.00 VFW, Elks Lodge, and American Legions 110 (Wholesale Table Wine & Beer) 312132 375.00 Distributors License 140 Special Events Retail —One time event 312122 75.00 312124 75.00 Beer on premise only 312122 75.00 Wine on premise only 312124 75.00 OR CE NO. 1233 Business License Ordinance 23 Schedule FfI FF — Peddlers — Local Vendors Only Daily Rate issued for single day sales activity Weekly Rate issued for week long sales activity Monthly Rate issued for month long sales activity Yearly Rate issued for annual sales activity Schedule "J" - Taxi Cabs, and Limousines $ 10.00 $ 25.00 $ 50.00 $ 100.00 In addition to the license thereto, there shall be a decal affixed to each taxicab or limousine and the cost of said decals shall be according to the following table: 1 taxi cab or limousine All taxi cabs or limousines over 1 $ 50.00 per decal $ 25.00 per decal Schedule 'W " - Telephones & Telecommunications Each city or town must apply Code of Alabama 11-51-128 for telephones and establish other rates and/or schedules for various other telecommunications businesses] Schedule 'T "- Special Events Licenses — Temporary Vendors Vacant Schedule FfMFf - Fortune Tellers Annual license rate is $ 1,000.00 and rate is reduced by $ 25.00 each year until such time as the annual rate reaches $ 500.00 and that becomes the minimum rate thereafter. Schedule ffNff - Vending Machines In addition to the license thereto, there shall be a decal affixed to each machine and the cost of said decals shall be according to the following table: 1 to 5 machines vending any type merchandise or product $ 20.00 per decal 6 to 10 machines vending any type merchandise or product $ 10.00 per decal all over 10 machines vending any type merchandise or product $ 5.00 per decal 01 4CE NO. 1233 Business License Ordinance 24 Schedule FF0 �� - Billiard and/or Pool Tables In addition to the license thereto, there shall be a decal affixed to each machine and the cost of said decals shall be according to the following table: For 1 to 2 billiard or pool tables $ 50.00 per decal All billiard or pool tables over 2 $ 25.00 per decal Schedule 'T FF - Amusement Devices In addition to the license thereto, there shall be a decal affixed to each machine and the cost of said decals shall be according to the following table: For the first 10 machines $25.00 per decal All machines over 10 $ 10.00 per decal Schedule FFQ Fr - Buses, Trucks & Other Equipment In addition to the license thereto, there shall be a decal affixed to each piece of equipment and the cost of said decals shall be according to the following table: From 1 to 2 buses, trucks or other equipment $ 50.00 per decal From 3 to 5 buses, trucks or other equipment $ 25.00 per decal Over 5 buses, trucks or other equipment $ 10.00 per decal Schedule "R "- Number of Employees R-1 Where personnel are from 1 to 2 people .................................... 100.00 R-2 Where personnel are from 3 to 5 people .................................... 250.00 R-3 Where personnel are from 6 to 10 people ................................... 400.00 R-4 Where personnel are from 11 to 20 people ................................. 550.00 R-5 Where personnel are from 21 to 50 people ................................. 700.00 R-6 Where personnel are from 51 to 75 people ................................. 850.00 R-7 Where personnel is from 76 to 100 people .............................. 1,0000.00 R-8 Personnel over 100 to be 1,000.00 + 50.00 per person over 100. Schedule FrS FF - Square Feet S-1 From zero to S-2 From 5,000 to S-3 From 10,000 to S-4 From 20,000 to S-5 From 30,000 to S-6 From 40,000 to 5,000 Square Feet............................100.00 10,000 Square Feet ...........................200.00 20,000 Square Feet ...........................300.00 30,000 Square Feet ...........................400.00 40,000 Square Feet ...........................500.00 50,000 Square Feet ...........................600.00 01 CE NO. 1233 Business License Ordinance 25 S-7 From 50,000 to S-8 From 60,000 to S-9 From 70,000 to 60,000 Square Feet...........................700.00 70,000 Square Feet...........................800.00 80,000 Square Feet...........................900.00 S-10 From 80,000 to 90,000 Square Feet.........................1,000.00 S-11 From 90,000 to 100,000 Square Feet.........................1,200.00 S-16 From 100,000 up - 1,200.00 plus $ .01 per square foot over 100,000 Schedule 'IT"- Itinerants Itinerant businesses operating within the jurisdiction but located outside the jurisdiction shall pay the itinerant rate for a business license and that rate shall be $ 500.00. Schedule " U " - Banks /Savings & Loans Bank ATM Location Bank Branch Location Bank Main Office Facility Savings & Loan ATM Location Savings & Loan Branch Location Savings & Loan Main Office Facility Schedule "V" - Delivery License The rate for the delivery license is established in Section 21 and is Schedule "W" — Hospital and Nursing Homes $ 10.00 $ 10.00 $ 125.00 $ 10.00 $ 10.00 $ 125.00 $ 100.00 Each person operating a hospital or nursing home for profit shall pay a license tax of: First Ten (10) Beds $100.00 Each additional bed is $5.00 each. This license applies only to hospital operation only; other business requires a separate license. SECTION 24. Exemptions for Eligible Veterans. Any person applying for a license tax exemption and commutation for eligible veterans shall, before receiving and said exemption and commutation execute and file with the city clerk sufficient proof of eligibility as provided in section 40-12-370 through 40-12- 377, Code of Alabama, 1975, as amended. SECTION 25. Exempt State and Interstate Transactions No provisions of this chapter shall be applied so as to impose any unlawful tax or unlawful burden on interstate commerce or on any activity of the stat or federal ORi CE NO. 1233 Business License Ordinance 26 government; or in any manner, which is repugnant to or violates any provision of the United States constitution or state constitution. SECTION 26. Health Permit for Food Establishments Any establishment selling articles of food or drink must have a permit from the county health department before the city shall issue a license. SECTION 27. Vehicular Signs All trucks and similar vehicles used by contractors and sub -contractors shall have signs on both sides of the body of said vehicles indicating the full name and address of the firm to which it belongs. Lettering may be any color in contrast to the color of the body; buy letters of firm's name must be at least 1-1/2 inches high. SECTION 28. Exchange of information. (a) The license officer may exchange tax returns, information, records, and other documents secured by the municipality, with other municipalities adopting similar ordinances for the exchange of taxpayer information, or with county or state authorities. The license officer may charge a reasonable fee for providing such information or documents. Any tax returns, information, records, or other documents so exchanged shall remain subject to the confidentiality provisions, restrictions, and criminal penalties for unauthorized disclosure as provided under state or municipal law. (b) Any such exchange shall be for one or more of the following purposes: (1) Collecting taxes due. (2) Ascertaining the amount of taxes due from any person. (3) Determining whether a person is liable for, or whether there is probable cause for believing a person might be liable for, the payment of any tax to a state, county, or municipal agency. (c) Nothing herein shall prohibit the use of tax returns or tax information by the municipality in the proper administration of any matter administered by the license officer. The license officer may also divulge to a purchaser, prospective purchaser as defined pursuant to the regulations of the Alabama Department of Revenue, or successor of a business or stock of goods the outstanding sales, use, or rental tax liability of the seller for which the purchaser, prospective purchaser as defined pursuant to the regulations of the Alabama Department of Revenue, or successor may be liable pursuant to the Code of Alabama section 40-23-25, 40-23-82, or 40-12-224. 01 ICE NO. 1233 Business License Ordinance 27 SECTION 29. License fees in Police jurisdiction. Any person, firm, association, or corporation engaged in any business outside the municipality but within the police jurisdiction hereof shall pay one-half of the amount of the license imposed for like business within the municipality. SECTION 30. Effective date. This ordinance shall become effective on and after January 1, 2005. SECTION 31. Severability. The sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by a court of competent jurisdiction, then such ruling shall not affect any other paragraphs and sections, since the same would have been enacted by the municipality council without the incorporation of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 32. Repealer. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. This ordinance shall be publication as required by law. ADOPTED THIS THE 13th DAY OF December , 2004. C Cr. Y m mQ U 00. �U O N = CE zLL OH o .