Privilege LicenseHow the Privilege License Tax Works If your type of business is listed on Tax Schedule B, C or D, then your tax rate is established or limited by state statute and your tax amount is the amount shown in that schedule. If your business type is not listed on Schedule B, C or D, then your tax rate is based on your gross receipts/sales under Tax Schedule A. A separate license is required for each business type listed in Schedule B. It also is possible a business may need to be licensed under both Schedule A and B. For example: Convenience Store with total gross receipts of $200,000 per year selling gasoline, cold sandwiches, ice cream and other items not listed in Schedule B:
Gross Receipts/Sales. The amount reported as gross receipts/sales on a business state/federal income tax return for the most recently completed tax year. New businesses must estimate expected gross receipts/sales from the date that operations begin through June 30. Note: Businesses not physically located in Farmville will determine gross receipts/sales on income generated in Farmville. The following regulations and classifications are take from Chapter 13, of the Town of Farmville Code of Ordinances and are intended as a summation only: Who Must Pay Tax. Each person who conducts a business within this city is subject to this ordinance. A person “conducts business” when he engages in one act of business taxed under this ordinance. He conducts the business “within the city” if he maintains a business location within the city; or if, either personally or through agents, he (1) solicits business within the city limits or (2) picks up or delivers goods or services within the city limits. Exemptions. A person who operates a business for a religious, educational, civic, patriotic, charitable, or fraternal purpose, when the entire income of the business is used for such a purpose, is exempt from paying any privilege license tax levied by this ordinance. Charitable, non-profit, organizations must be registered with the Secretary of State’s office before exemption may be allowed. In addition, certain businesses are exempted by the State from the tax (see Tax Schedule D). Due Date and Penalty. License payments are due by July 1 and the penalty shall begin on July 2nd at the rate of five percent (5%) of the original tax due for each month or portion thereof that the tax is delinquent. The tax year runs from July 1 through June 30. Proration of Tax/Refunds. If a business is begun after January 31 and before July 1, the amount of tax due is half the amount otherwise due. If a business is seasonal in nature and if the amount of tax is not based on gross receipts, the amount of tax due is half the amount otherwise due. If for any reason a licensee discontinues his or her business during the license year, he or she is not entitled to a refund. Duty to Post License. A licensee shall post the license or licenses conspicuously in the place of business licensed. If the licensee has no regular place of business, the license must be kept where it may be inspected at all times Criminal Remedies. Conducting business within this city without having paid the privilege license tax imposed by this ordinance, or without a valid license issued in accordance with this ordinance, or without posting a license in compliance with Section 4.5 of this ordinance is a misdemeanor. Each day that a person conducts business in violation of this ordinance is a separate offense. Contact: |
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