GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	2 

SENATE BILL 107
Finance Committee Substitute Adopted 4/25/91

Short Title:  License Tax Administration Changes.	(Public)
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Sponsors:
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Referred to:  
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February 20, 1991

A BILL TO BE ENTITLED
AN ACT TO SIMPLIFY AND MODERNIZE PRIVILEGE LICENSE TAXES RELATING TO DRY CLEANERS AND LAUNDRIES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-74 reads as rewritten:
"§ 105-74.  Pressing clubs, dry cleaning plants, and hat blockers.
(a)	Establishment License.  Every person, firm, or corporation engaging in the business of operating a dry cleaning, pressing, or hat blocking establishment shall apply for and procure from the Secretary of Revenue a State license for the privilege of conducting the business.  If the establishment does not solicit business in a municipality or an unincorporated county area other than the municipality or unincorporated county area in which the establishment is located, the license tax is fifty dollars ($50.00).  If the establishment solicits business in a municipality or an unincorporated county area other than the municipality or unincorporated county area in which the establishment is located, the license tax is one hundred dollars ($100.00).
(b)	Soliciting License.  Every person, firm or corporation engaged in the business of soliciting dry cleaning or pressing work to be done by an establishment that is not liable for the State license tax levied in subsection (a) shall pay a tax of one hundred dollars ($100.00). The license holder shall carry the license in the cab of any vehicle used in soliciting in this State.
(c)	Local Licenses.  A municipality may tax each establishment located in the municipality.  The tax may not exceed the rate provided in subsection (a).  Counties and municipalities may tax each business taxed under subsection (b).  The tax may not exceed the rate provided in subsection (b). 
 (d)	Definitions.  For the purpose of this section, the following definitions apply:
(1)	Dry cleaning, pressing, or hat blocking establishment.  A place of business where the service of dry cleaning, wet cleaning incidental to dry cleaning, spotting, pressing, finishing, or reblocking hats, garments, or wearing apparel of any kind is performed.
(2)	Soliciting.  Accepting an article or a garment to be dry cleaned or pressed.
”(e)	Scope. This section does not apply to any bona fide student of any college or university in this State operating such pressing or dry cleaning business at such college or university during the school term of such college or university.
A person, firm, or corporation required to be licensed under this section is not required to procure the license under G.S. 105-102.5 for the same location."
Sec. 2.  G.S. 105-85 reads as rewritten:
"§ 105-85.  Laundries.
(a)	Laundry License.  Every person, firm, or corporation engaged in the business of operating a ” ”laundry or engaged in the business of supplying or renting clean linen or towels or wearing apparel, shall apply for and obtain from the Secretary of Revenue a State license for the privilege of engaging in the business.  If the place of business does not solicit work in a municipality or an unincorporated county area other than the municipality or unincorporated county area in which the place of business is located, the license tax is fifty dollars ($50.00).  If the place of business solicits work in a municipality or an unincorporated county area other than the municipality or unincorporated county area in which the place of business is located, the license tax is one hundred dollars ($100.00).
(b)	Definitions.  The following definitions apply in this section:
(1)	Laundry.  A business where steam, electricity, or other power is used to clean fabric, including a wet or damp wash laundry, a launderette, a launderall, or a similar business. The term ‘launderettes and launderalls' means commercial establishments in which automatic washing machines and dryers are installed for the use of individual customers, including those which contain coin-operated or coin-activated washing machines. However, the term does not include persons who own or operate apartment buildings in which they provide such machines for the exclusive use and convenience of tenants therein, nor shall such persons be considered to be engaged in any ‘similar type business.'
(2)	Place of business.  A fixed place at which the business is maintained.
(c)	Soliciting License.  Every person, firm or corporation engaged in the business of soliciting laundry work to be done by a laundry that is not liable for the State license tax levied in subsection (a) shall pay a tax of one hundred dollars ($100.00). The license holder shall carry the license in the cab of any vehicle used in soliciting in this State.  
(d)	Scope.   A person, firm, or corporation required to be licensed under this section is not required to procure the license under G.S. 105-102.5 for the same location.
(e)	Local Licenses.  A municipality may tax each place of business taxed under subsection (a) that is located in the municipality.  The tax may not exceed the rate provided in subsection (a).  Counties and municipalities may tax each business taxed under subsection (c).  The tax may not exceed the rate provided in subsection (c). "
Sec. 3.  This act becomes effective July 1, 1991.