The following words, terms and phrases, when used in this chapter, shall have the meaning ascribed herein. Defined terms are not capitalized when used in this chapter unless the context otherwise requires.
BUSINESS. Any business, occupation, calling, profession, or activity engaged in with the object of gain, benefit, or advantage, either directly or indirectly.
BUSINESS LICENSE. A license issued to a business by the town for the privilege of doing business in the Town of Mount Pleasant, South Carolina.
CHARITABLE ORGANIZATION. An organization that is determined by the Internal Revenue Service (IRS) to be exempt from Federal income taxes under 26 U.S.C. Section 501(c)(3), (4), (6), (7), (8), (10) or (19).
CHARITABLE PURPOSE. A benevolent, philanthropic, patriotic, or eleemosynary purpose that does not result in personal gain to a sponsor, organizer, officer, director, trustee or person with ultimate control of the organization.
CLASSIFICATION. That division of businesses by the North American Industry Classification System (NAICS) subject to the same license rate as determined by a calculated index of ability to pay based on national averages, benefits, equalization of tax burden, relationships of services, or other basis deemed appropriate by Town Council.
DOMICILE. A principal place from which the trade or business of a licensee is conducted, directed, or managed. For purposes of this chapter, a business may be deemed to have more than one domicile.
GROSS INCOME. The gross receipts or gross revenue of a business, received or accrued, for one calendar or fiscal year collected or to be collected from business done within the town. If the business has a domicile within the town, business done within the town shall include all gross receipts or revenue received or accrued by such business. If the business does not have a domicile within the town, business done within the town shall include only gross receipts or revenue received or accrued within the town. In all cases, if the business pays a business license tax to another county or municipality, then the business's gross income for the purpose of computing the tax within the town may be reduced by the amount of revenues or receipts taxed in the other county or municipality and fully reported to the town. GROSS INCOME for business license tax purposes shall not include taxes collected for a governmental entity, escrow funds, or funds that are the property of a third party. The value of bartered goods or trade-in merchandise shall be included in gross income. The gross receipts or gross revenues for business license purposes may be verified by inspection of returns and reports filed with the Internal Revenue Service (IRS), the South Carolina Department of Revenue (SCDOR), the South Carolina Department of Insurance (SCDOI), or other government agencies. In calculating gross income for certain businesses, the following rules shall apply:
(1) Gross income for agents shall be calculated on gross commissions received or retained, unless otherwise specified. If commissions are divided with other brokers or agents, then only the amount retained by the broker or agent is considered GROSS INCOME.
(2) Except as specifically required by S.C. Code § 38-7-20, GROSS INCOME for insurance companies shall be calculated on gross premiums written.
(3) GROSS INCOME for manufacturers of goods or materials with a location in the town shall be calculated on the lesser of: (i) gross revenues or receipts received or accrued from business done at the location; (ii) the amount of income allocated and apportioned to that location by the business for purposes of the business's state income tax return; or (iii) the amount of expenses attributable to the location as a cost center of the business. Businesses reporting gross income under this provision shall have the burden to establish the amount and method of calculation by satisfactory records and proof. Manufacturers include those businesses reporting a manufacturing principal business activity code on their federal income tax returns.
GROSS PREMIUMS. For insurance companies, GROSS PREMIUMS written for policies for property or a risk located within the town. In addition, GROSS PREMIUMS shall include premiums written for policies that are sold, solicited, negotiated, taken, transmitted, received, delivered, applied for, produced or serviced by (1) the insurance company's office; (2) the insurance company's employee conducting business within the municipality; or (3) the office of the insurance company's licensed or appointed producer (agent) conducting business within the municipality, regardless of where the property or risk is located, provided no tax has been paid to another municipality in which the property or risk is located based on the same premium.
(1) As to fire insurance, GROSS PREMIUMS: (a) collected in the municipality; and/or (b) realized from risks located within the limits of the municipality.
(2) As to bail bonds, GROSS PREMIUMS shall exclude any amounts retained by a licensed bail bondsman as defined in S.C. Code Title 38, Chapter 53 for authorized commissions, fees, and expenses.
(3) GROSS PREMIUMS shall include all business conducted in the prior calendar year. GROSS PREMIUMS shall include new and renewal business without deductions for any dividend, credit, returned premiums, or deposits.
(4) Solicitation for insurance, receiving or transmitting an application or policy, examination of a risk, collection or transmitting of a premium, adjusting a claim, delivering a benefit, or doing any act in connection with a policy or claim shall constitute conducting business within the municipality, regardless of whether or not an office is maintained in the municipality.
LICENSE OFFICIAL. The officer, employee, or agent designated by the town as having primary responsibility for business licensing within the town. Notwithstanding the designation of a primary license official, the town may designate one or more alternate license officials to administer particular types of business licenses, including without limitation for business licenses issued to businesses subject to business license taxes under Article 20, Chapter 9, Title 58, and Chapters 7 and 45, Title 38, of the South Carolina Code.
MUNICIPALITY or TOWN. The Town of Mount Pleasant, South Carolina.
NAICS. The North American Industry Classification System for the United States published under the auspices of the Federal Office of Management and Budget.
PERSON. Any individual, firm, partnership, limited liability partnership (LLP), limited liability company (LLC), cooperative non-profit membership, corporation, joint venture, association, estate, trust, business trust, receiver, syndicate, holding company, or other group or combination acting as a unit, in the singular or plural, and the agent or employee having charge or control of a business in the absence of the principal.
REAL ESTATE ACTIVITY. Subject to a business license means the following:
(1) Owner leasing of commercial property with the business license tax based on gross receipts, including rents plus any other charges which constitute income.
(2) Owner leasing of residential dwelling unit or portion thereof for less than 30 consecutive days with the business license tax based on gross receipts, including rents plus any other charges which constitute income.
(3) Owner leasing of three or more residential dwelling units or portion thereof for 30 or more consecutive days with the business license tax based on gross receipts, including rents plus any other charges which constitute income.
(4) Selling and managing property on behalf of others with the business license tax based on gross commissions.
(5) Owner sale of commercial real estate with the business license tax based on gross sales price.
(6) Owner sale of residential real estate with the business license tax based on gross sales price if three or more lots or units; existing and subsequently created plats and related documents will be considered.
RESTAURANT. A business engaged in providing food services to patrons who order and are served while seated. These establishments may provide this type of food service to patrons in combination with selling beer, wine and other alcoholic beverages, provided that the gross income from sales of beer, wine and other alcoholic beverages does not exceed 35% of the establishment's total gross income.
(Ord. 21064, passed 9-14-21; Am. Ord. 23036, passed 12-12-23)