GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	3 

SENATE BILL 871
Finance Committee Substitute Adopted 6/24/93
House Committee Substitute Favorable 6/17/94

Short Title:  City Privilege License Changes.	(Local)
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Sponsors:
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Referred to:  
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April 15, 1993

A BILL TO BE ENTITLED
AN ACT TO CLARIFY THE PENALTIES AND REMEDIES THAT APPLY TO MUNICIPAL PRIVILEGE LICENSE TAXES IMPOSED BY CITIES IN CERTAIN COUNTIES, TO CLARIFY THE KIND OF INFORMATION A CITY OR TOWN MAY REQUEST AN APPLICANT FOR A MUNICIPAL PRIVILEGE LICENSE FROM THESE CITIES TO PROVIDE, AND TO INCREASE COMPLIANCE WITH MUNICIPAL PRIVILEGE LICENSE TAXES IMPOSED BY THESE CITIES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-109(e) reads as rewritten:
"(e)	The penalties and remedies that apply to municipal privilege license taxes imposed by a municipality under Article 9 of Chapter 160A of the General Statutes apply to municipal privilege license taxes that are subject to the limitations set in this Article."
Sec. 2.  G.S. 160A-211 is amended by designating the current language of the statute as subsection (a) with the heading "Authorization" and adding the following subsections to read:
"( b)	Application. – The power granted to a city by G.S. 160A-206 to provide for the administration of a city tax includes the power to request an applicant for a city privilege license to provide any of the following information:
(1)	Whether the applicant is an individual, a firm, or a corporation.
(2)	The applicant's social security number and any State withholding tax number, if the applicant is an individual, and the applicant's federal employer identification number and any State withholding tax number, if the applicant is a firm or a corporation.
(3)	If the applicant is subject to G.S. 97-93, the name of the applicant's workers' compensation insurance carrier or self-insured group or, for an applicant who is self-insured, a statement that the applicant is self-insured and the date the applicant provided proof of financial responsibility to the Commissioner of Insurance.
(c)	Penalties. – The power granted to a city by G.S. 160A-206 to impose reasonable penalties for failure to declare tax liability or pay taxes when due and by G.S. 160A-175 to impose penalties for violation of an ordinance include all of the following:
(1)	The power to impose on a person who fails to obtain or renew a privilege license required by the city a penalty equal to twenty-five percent (25%) of the amount of the privilege license tax payable.
(2)	The power to impose on a person who, after receiving written notice from the city of the person's duty to obtain a city privilege license, continues to engage in a business without obtaining a city privilege license required for the business, a penalty of one hundred dollars ($100.00) for each day the person continues to engage in business without the required privilege license, subject to a maximum of one thousand dollars ($1,000).
(d)	Injunctive Relief. – A city may secure an injunction in accordance with G.S. 160A-175 to ensure that a person does not engage in a business without obtaining a city privilege license required for the business."
Sec. 3.  This act applies only to cities in the following counties:  Gaston and Mecklenburg.
Sec. 4.  This act is effective upon ratification. This act does not affect penalties imposed under G.S. 105-109(e) before the effective date of the act.