(A) No deductions from gross income shall be made except income earned outside of the town on which a license tax is paid by the business to some other municipality or county and fully reported to the town; taxes collected for a governmental entity; or income which cannot be included for computation of the tax pursuant to state or federal law. Properly apportioned income from business in interstate commerce shall be included in the calculation of gross income and is not exempted. The applicant shall have the burden to establish the right to exempt income by satisfactory records and proof.
(B) No person shall be exempt from the requirements of the chapter by reason of the lack of an established place of business within the town, unless exempted by state or federal law. The License Official shall determine the appropriate classification for each business in accordance with the latest issue of the NAICS. No person shall be exempt from this chapter by reason of the payment of any other tax or fee, unless exempted by state law, and no person shall be relieved of the liability for the payment of any other tax or fee by reason of the application of this chapter.
(C) A charitable organization shall be exempt from the business license tax on its gross income unless it is deemed a business subject to a business license tax on all or part of its gross income as provided in this section. A charitable organization, or any affiliate of a charitable organization, that reports income from for-profit activities or unrelated business income for federal income tax purposes to the Internal Revenue Service shall be deemed a business subject to a business license tax on the part of its gross income from such for-profit activities or unrelated business income.
(D) A charitable organization shall be deemed a business subject to a business license tax on its total gross income if (1) any net proceeds of operation, after necessary expenses of operation, inure to the benefit of any individual or any entity that is not itself a charitable organization as defined in this chapter; or (2) any net proceeds of operation, after necessary expenses of operation, are used for a purpose other than a charitable purpose as defined in this chapter. Excess benefits or compensation in any form beyond fair market value to a sponsor, organizer, officer, director, trustee, or person with ultimate control of the organization shall not be deemed a necessary expense of operation.
(E) Real estate rental of less than three residential dwelling units or portion thereof for 30 or more consecutive days and subdivision or development for sale of less than three residential lots are not deemed to constitute doing business and shall be exempt from business license taxes. Existing and subsequently created plats and related documents will be considered.
(F) Businesses leasing commercial property to the same business entity may exempt only those lease gross receipts from business license taxes. However, if the business also leases commercial property to another business, then the business is required to obtain a license based on the gross receipts received from these other businesses.
(G) Sale of products of a farm or orchard actually produced by the seller shall be exempt from business license taxes.
(H) Any existing business on a newly annexed property into the Town of Mount Pleasant shall be exempt from license taxes hereunder for the license year in which the property is annexed, in addition to the subsequent full license year.
(I) Wholesalers are exempt from business license taxes unless they maintain warehouses or distribution establishments within the town. A wholesale transaction involves a sale to an individual who will resell the goods and includes delivery of the
goods to the reseller. It does not include a sale of goods to a user or consumer.
(Ord. 21064, passed 9-14-21)