Albemarle County - File #: 17-467

• File #: 17-467
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 7/12/2017
• In control: Board of Supervisors
• On agenda: 8/2/2017
• Final action: 8/2/2017
• Title: Business License Ordinance Amendments (Chapter 8). To receive comments on its intention to adopt an ordinance to amend Chapter 8 (Licenses) of the Albemarle County Code, by amending Article I (In General), Section 8-101 (Applicability); Article V (Correction of Tax Assessments), Section 8-505 (Refund of license tax if business terminated), and Article VI (Schedule of Taxes), Division 4, (Personal, Professional, Business or Repair Service Business, Occupations and Professions), Section 8-617 (Retailers or retail merchants). The proposed ordinance would increase from $5,000 to $25,000 the minimum gross receipts threshold over which businesses must obtain a County business license (§ 8-101). The proposed ordinance also would allow a person, firm, or corporation that ceases business in one year, but intends to settle outstanding, existing accounts in the following year, to pay a license tax based on an estimate of the current year’s gross receipts instead of the previous year’s gross rece...

Date	Ver.	Action By	Action	Result
8/2/2017	1	Board of Supervisors	adopted	Pass

AGENDA DATE: 8/2/2017

TITLE: Business License (Chapter 8) Ordinance Amendments

SUBJECT/PROPOSAL/REQUEST: Public Hearing to Consider Proposed Business License Ordinance Amendments
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Walker, Letteri, Kamptner, Herrick, Burrell, Lamb
PRESENTER (S): Betty Burrell
LEGAL REVIEW: Yes
REVIEWED BY: Douglas C. Walker
BACKGROUND: Upon review of the County's business license ordinance, the Finance Department is recommending updates and improvements to three sections of Chapter 8 (Licenses) of the Albemarle County Code. These proposed revisions are intended both to improve the County's collection practices and to conform the County Code with recent changes in State law.
STRATEGIC PLAN: Economic Prosperity -- Foster an environment that stimulates diversified job creation, capital investments, and tax revenues that support community goals.

DISCUSSION: If adopted, the proposed ordinance would revise three sections of Chapter 8 (Licenses) of the Albemarle County Code.

* Sec. 8-101 - Business License gross receipts threshold - This proposal would increase from $5,000 to $25,000 the minimum gross receipts threshold over which businesses must obtain a County business license. This proposed amendment would exempt businesses with gross receipts of up to $25,000 from the license requirement. This same threshold already applies to the Albemarle-based gross receipts of out-of-County contractors. Staff is recommending that the amendment of this section be effective for taxable years beginning on and after January 1, 2018. This recommendation is to maintain equity with existing 2017 business licensees.
Purpose of this proposed change: To encourage small business development by exempting business owners who generate less than $25,000 in gross receipts per year from paying business license fees.
Consequence of this change: Business License tax revenue reduction of approximately $62,000.

* Sec. 8-505 - License tax; businesses ceasing oper...