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19801021 1980-18ORDINANCE No. 1980-18 AN ORDINANCE REPEALING EXISTING CHAPTER 12 OF THE CODE OF THE CITY OF FAIRFAX, VIRGINIA, ENTITLED "LICENSES" AND ENACTING A NEW CHAPTER 12 ENTITLED "LICENSES." BE IT ORDAINED by the City Council that Chapter 12 of the Code of the City of Fairfax, Virginia, be and it hereby is repealed in its entirety; and BE IT FURTHER RESOLVED that the Code of the City of Fairfax, Virginia, be and it hereby is amended to add a new chapter, to be numbered Chapter 12 and to read in its entirety as follows: "CHAPTER 12. LICENSES. Article I. In General § 12-1. § 12-2. § 12-3. § 12-4. § 12-5. § 12-6. § 12-7. 12-8. 12-9. 12-10. 12-11. 12-12. 12-13. 12-14. 12-15. 12-16. 12-17. 12-18. 12-19. 12-20. Definitions. License taxes levied; classification conflicts; failure to obtain license misdemeanor. Taxes may be waived for religious, charitable or civic purposes. Taxes levied for privilege of doing business. Tax liability of businesses having no established place of business within city. Credit for license taxes paid foreign taxing jurisdictions. Gross receipts taxes not applicable to persons having gross receipts of eighteen hundred dollars or less per year. Application for license; assessment of amount of tax. Licenses to be signed by city treasurer. Computation of tax for persons beginning business. Computation of tax for nonresidents beginning business. Omitted license taxes. Prorating of license taxes. Transfer of license taxes. Display of license certificates or receipts. Appeal of erroneous assessments. Refund of erroneous assessments. When license taxes payable; penalty for failure to pay taxes by due date; interest. Additional charge for returned check. Corrections to license applications. 1980-18 12-21. 12-22. Failure to display or exhibit license receipts; injunction; violations. Multiple licenses may be combined. ARTICLE II. Schedule of License Taxes PART A. Classification of certain businesses. 12-23. 12-24. 12-25. 12-26. Contractors, and persons constructing in their own behalf fo r sale. Retail sales. Financial, real estate and professional services. Repair, personal, business and other services. PART B. Other license taxes. 12-27. 12-28 12-29 12-30. 12-31. 12-32. 12-33. 12-34. 12-35. 12-36. 12-37. 12-38. 12-39. Advertising by means of loudspeakers, etc., on vehicles. Alcoholic beverages. Canvassers and soliciting agents. Carnivals. Drug-related objects. Fortunetel le rs. Health clubs. Junk dealers. Itinerant dealers in precious metals and jewels. Public utilities and public service companies. Trailer parks. Wall signs and billboards. Wholesale sales. § 12-40. ARTICLE III. Validity and Severability Validity and Severability. Article I. In General. Sec. 12-1. Definitions. The following definitions shall apply throughout this chapter: Gross receipts. The gross receipts, irrespective of their source, received from or attributable to any business, profession, trade, occupation, vocation, calling or activity, including cash, credits, fees, commissions, brokerage charges and rentals, and property of any kind, nature or descrip- tion, from either sales made or services rendered at any location without any deduction therefrom on account of cost of the property sold, the cost of materials, labor or services, rentals, royalties, taxes, interest or discounts paid or any expense whatsoever, and shall include in the case of merchants the amount of the sale price of supplies and goods furnished to or used by the licensee or his family or other person for which no charge is made or for which a charge less than the prevailing sale price is made; provided, however, that the term "gross receipts" with respect to manufac- turers and wholesale merchants manufacturing or dealing in articles upon which there is levied a direct excise tax by the United States shall exclude such excise tax payments to the United States government; provided further, that wholesale and retail dealers in petroleum products on which the state levies a motor vehicle fuel tax shall exclude such tax payments to the state from gross receipts; provided further, that in computing the gross receipts of licenses under section 12-25, the licensees shall be permitted to claim as a deduction the amount of salaries paid to any person employed by them who is duly licensed in the same profession, under such section. 1980-18 The term "gross receipts" shall include the total gross receipts from all sales made, services rendered or activities conducted by any business and received through its principal place of business or branch office located within the city, both to persons residing within the city and to persons residing outside the city, without regard to where the sales, services rendered or activities conducted were actually performed. The term "gross receipts" shall include in every instance, regardless of whether the liable person or business is a resident or nonresident of the city, an amount not less than that attributable to the sales, services or activities performed or conducted within the city, irrespective of the location in which such gross receipts are actually or constructively received. The calculation of "gross receipts" for license tax purposes shall be on either a cash or accrual basis; provided, however, that the basis used must coincide with the system of accounts used by the taxpayer and the method employed by the taxpayer for federal and state income tax purposes. For the purpose of computing tax under this chapter gross receipts may be reported to the nearest one hundred dollars. Person. Such term shall include individuals, firms, partnerships, corporations, companies, associations or joint stock associations, and combinations of individuals of whatever form or character, and it shall include any trustee, receiver, assignee or personal representative thereof carrying on or continuing a business, profession, trade or occupation, but shall not include a trustee, receiver or other representative duly appointed by a court to liquidate assets for immediate distribution, or a sergeant or a sheriff, or any deputy, selling under authority of process or writ of a court of competent jurisdiction. Place of business. The physical location from which any business activity is regularly, normally and usually conducted. Any nonresident of the city having no other regularly established place of business therein who conducts business with respect to the subjects of taxation within this chapter shall be deemed to have established a place of business at the location in the city where the work is performed or where the property is situated. Any resident of the city having no other regularly established place of business in the state who does business which would otherwise be subject to a license tax under the provisions of this chapter shall, for the purposes of this chapter, be deemed to have his place of business in his residence. Sec. 12-2. License taxes levied~ classification conflicts; failure to obtain license misdemeanor. (a) Beginning with January 1 and ending December 31 of each year, there are hereby levied and there shall be collected the annual license taxes set forth in this chapter, except as otherwise specifically provided in this chapter, on persons conducting or engaged in any business, trade or occupation in the city set forth in this chapter. (b) Wherever specific classifications are licensed under Article II Part B, the general classifications under Part A shall not apply. (c) It shall be a misdemeanor for any person conducting or engaged in any business, trade or occupation in the city who is required by this chapter to obtain a license therefor from the city, to conduct or engage in such business, trade or occupation without first obtaining from the city the license required by this chapter. 1980-18 Sec. 12-3. Taxes may be waived for religious~ charitable or civic purposes. The license tax which might be imposed upon any activity, the net receipts of which are to be applied or donated to a religious, charitable or civic purpose, may be waived by the city council or by such other city official as the city council may designate. Sec. 12-4. Taxes levied for privilege of doing business. Ail ~f the taxes imposed by this chapter are in all cases imposed for the privilege of doing business or pursuing a profession, trade or occupa- tion in the city, including all phases of the business, profession, trade or occupation conducted in the city. Sec. 12-5. Tax liability of businesses having no established place of business within the city. As to businesses, professions, trades or occupations for which a gross receipts license is levied, carried on or conducted only in part within the city by persons having no regularly established place of business therein, the tax liability shall be measured by only that portion of the business, profession, trade or occupation conducted or carried on within the city, the city licensing of which is not prohibited by state law. Sec. 12-6. Credit for license taxes paid foreign taxing jurisdictions. As to businesses, professions, trades or occupations, for which a gross receipts license is levied, having a regularly established place of business in the city, where their business, profession, trade or occupation also requires the performance of certain activities outside the city, and they become subject to and pay a licensing tax to a foreign taxing juris- diction, they shall be permitted to deduct such gross receipts taxed by such foreign taxing jurisdiction in arriving at their licensing basis; provided, that such foreign taxing jurisdiction extends a similar credit for businesses conducted therein. Proof of payment of such tax shall be furnished to the commissioner of revenue. Sec. 12-7. Gross receipts taxes not applicable to persons having gross receipts of eighteen hundred dollars or less per year. This chapter shall not apply to any person who is a resident in the city, whose license would be based on gross receipts and whose total gross receipts do not exceed eighteen hundred dollars in a calendar year. Sec. 12-8. Application for license~ assessment of amount of tax. (a) Every person liable for the payment of a license tax under the provisions of this chapter shall make application therefor in writing to the commissioner of revenue at his office. The commissioner of revenue shall furnish license application forms in duplicate, which forms shall be properly and fully executed by the applicant, and shall contain such information as may be required by the commissioner of the revenue. (b) The commissioner of revenue shall assess such applicant or other person of whom a license is required with the license tax required by this chapter, and any penalty in connection therewith, and shall retain one copy of the license application form. 1980-18 Sec. 12-9. Licenses to be sisned by city treasurer. No license shall be valid unless signed by the city treasurer, indicating payment of the license fee. Sec. 12-10. Computation of tax for persons besinnin8 business. (a) Every person beginning a business, profession, trade or occupa- tion which is subject to a license tax under the provisions of this chapter and is based in whole or in part on gross receipts shall estimate the amount of the gross receipts he will incur between the date of beginning business and the end of the then current license year, and his license tax for the then current year shall be computed on such estimate. (b) Whenever a license tax is so computed on the estimated gross receipts, any erroneous estimate shall be subject to correction, and the commissioner of the revenue shall assess such person with any additional license tax found to be due after the end of that license year, adding thereto any penalty that may be applicable as provided for in section 12-18; and shall, at the same time, correct the estimate for the then current license year until a full year of operation shall have been completed. In case of an overestimate, the taxpayer shall be entitled to a credit upon his license tax payable the following year. Sec. 12-11. Computation of tax for nonresidents be~innin~ business. Every person who is a nonresident and who does not have a principal or branch office within the city, but who does business which is subject to a license tax under the provisions of this chapter, which is based in whole or in part on gross receipts, shall estimate the amount of the gross receipts he will receive between the day of beginning business and the end of the then current license year; and his license tax for the then current year shall be computed on such estimate. Whenever a license tax is so computed, any erroneous estimate shall be subject to correction; and the commissioner of revenue shall assess such person with any additional license tax found to be due after the end of the license year or shall allow a credit on the tax for the ensuing year, or a refund, as may be ap p licab le. Sec. 12-12. Omitted license taxes. If the commissioner of revenue ascertains that any person subject to a license tax under this chapter has not been assessed with such tax for any license tax year of the three immediately preceeding, or that such tax has been assessed at less than the law required for any one or more of such years, or that such tax for any cause has not been realized, it shall be the duty of the commissioner of revenue to assess such person with the proper license tax for the year or years omitted, adding thereto a penalty of ten percent or two dollars, whichever is the larger amount, and interest at the rate of six percent per annum, which shall be computed upon the taxes and penalty from the fifteenth day of December of the year in which such taxes should have been paid to the date of the assessment. Sec. 12-13. Proratin~ of license taxes. Except as otherwise provided in this chapter, all taxes shall be prorated on a quarterly basis where the person engaging in the profession, business, occupation or calling begins such undertaking in the city on or after the thirty-first day of March in any particular year. The tax on any such proratable license shall be in an amount which shall bear the same proportion of the annual tax thereon as the period embraced between the date at which such license is issuable and the first day of January next thereafter, measured by the number of quarters or any fraction thereof, 1980-18 remaining in the particular year. In no event shall the license tax for a prorated license be less than ten dollars. Any license based upon gross receipts shall not be proratable. Sec. 12-14. Transfer of license taxes. License taxes, except as otherwise provided in this chapter, which have been paid in full, are transferable to the assignees or successors in interest of any licensee, but in no event are such license taxes refundable. If the license tax already paid by the assignor is less than the license tax which would be assessable against the assignee under this chapter but for the assignment, an additional license tax shall be paid by the assignee equal to the difference between the tax paid on the assigned license and the license tax which would be otherwise assessable against the assignee. Sec. 12-15. Display of license certificates or receipts. The license receipts or other certificates showing the payment of license taxes whenever imposed by this chapter shall be displayed in a conspicuous place at the regular place of business or profession of the licensee, in order that any officer of the city may inspect the same at all reasonable times. All licensees who have or maintain no regular place of business shall either carry with them on their person or have affixed or attached to their truck, automobile or other vehicle the license receipt or certificate and promptly display the same when called upon by any officer of the city to do so. Sec. 12-16. Appeal of erroneous assessments. In addition to the appeal provided for by section 58-1145 of the Code of Virginia, any person deeming himself aggrieved by an erroneous assessment under this chapter shall have the right to appeal at any regular business meeting of the city council for a correction of erroneous assessment of license taxes; provided, that the appeal shall be made after five days' written notice given to the city clerk and to the commissioner of revenue of such appeal. Sec. 12-17. Refund of erroneous assessments. The commissioner of revenue is empowered to certify to the city treasurer any instances of erroneous assessments. Upon receipt of such certificate, the city treasurer is directed to make a refund based upon the certification of the commissioner of revenue. Sec. 12-18. When license taxes payable; penalty for failure to pay taxes by due dater interest. (a) Ail license taxes imposed by this chapter shall be due on the first day of January of each year and payable at the office of the city treasurer on or before the last day of January of each year, except as otherwise provided. In the case of persons beginning a business, profes- sion, trade or occupation, the license tax assessed under section 12-10 or section 12-11 shall be due on the day of beginning business and payable on or before thirty days from such date of beginning. (b) Except as otherwise provided, a penalty in the amount of ten percent (10%) of the license tax assessed or a penalty of ten dollars ($10.00), whichever is the larger amount, shall be imposed for failure to file the application prescribed in section 12-8. Except as otherwise provided, a penalty in the amount of ten percent (10%) of the license tax assessed or a penalty of ten dollars ($10.00), whichever is the larger amount, shall be imposed for failure to pay license taxes assessed under 1980-18 this chapter on or before the last day on which such license taxes are payable. Interest on such unpaid license taxes and penalty or penalties shall accrue at the annual rate of ten percent (10%) from the first day of the month following the month in which such license taxes are payable, until paid. Such penalties and interest shall be assessed and paid along with the license tax and shall become a part of the license tax. (c) In the case of omitted business license taxes assessed under section 12-12, these taxes, together with the penalty and interest imposed thereon, shall be due on the day of assessment and payable on or before thirty days from such day. If not so paid, interest shall accrue thereon at the maximum rate permitted by applicable state laws. Authority: Virginia Code sections 58-847, 58-964, and 58-1164. Sec. 12-19. Additional charges for returned check. A fee of ten dollars shall be charged for the uttering, publishing or passing of any check or draft for payment of taxes or any other sums due which is subsequently returned for insufficient funds or because there is no account or the account has been closed. Such fee shall be collected by the city treasurer. Sec. 12-20. Corrections to license applications. Persons renewing licenses based on gross receipts, as herein provided, shall be allowed to correct, without penalty, any application originally submitted within the prescribed time; provided, that any increase in tax due under this chapter is paid prior to May 1 of the year involved; and provided further, that the correction does not involve an increase in tax due under this chapter in excess of ten percent of the tax originally paid. Sec. 12-21. Failure to display or exhibit license receipts; injunction; violations. (a) It shall be a misdemeanor for any person licensed under this chapter to fail to display or exhibit license receipts or to refuse to show the same to any authorized officer of the city upon request. Each such occurence shall constitute a separate offense. (b) The commissioner of revenue may institute an action in the appropriate court of record to obtain an injunction prohibiting any person from conducting or engaging in his business, profession, trade or occupation unless and until the appropriate license tax therefor has been paid. (c) The commissioner of revenue shall cause appropriate warrants to be issued, and prosecuted, for violations of this chapter. Sec. 12-22. Multiple licenses may be combined. Whenever two or more licenses based upon gross receipts are required for one business, the taxpayer may combine such licenses into one license, provided that the taxpayer elects to have the classification and rate of tax for such license calculated at the highest rate applicable to the separate licenses required and includes the total gross receipts from all classifications in one combined figure on the license application. 1980-18 A~ICLE. II. Schedule of License Taxes. PART A. Classification of certain businesses. Sec. 12-23. Contractors, and ~ersons constructing in their own behalf for sale. (1) Every ~erson engaged in contracting and persons constructing in their own behalf for sale shall pay for the urivilege an annual license tax of thirty dollars or sixteen cents per one hundred dollars of grcss receipts, ~hichever is greater. The tax shall be based upon the gross receipts ~rcm such occq0ation or business conducted in tbs city in the next preceding calendar year. No license shall be required under this section of persons not having a principal or branch office within the city but having an office in another Virginia locality and licensed by another locality in Virginia unless such firm has contracts in the city in excess of t~enty- five thousand dollars in ~hich event such persons shall pay on their gross contracts perfonaed in the city as set forth above. (2) Contractor - A contractor is any person who accepts or offers to acoept: (a) orders or contracts for doing any wozk on or in any building or structure, requiring the use of paint, stone, brick, n~rtar, wood, c~ment, structural iron or steel, sheet iron, galvanized iron, metallic piping, tin, lead, or other metal or any other building material; (b) contracts to do any paving, cunning or other wonk on sidewalks, streets, alleys or highways, on public or private property, using asphalt, brick, stone, c~ment, concrete, ~D~d or any ccmposition; (c) an order for or contract to excavate earth, rock or other material for foundation or any other purpose, or for cutting, trimming or maintaining rights-of-way; (d) an order or contract to construct any sewer of stone, brick, terra-cotta or other material; (e) orders or contracts for doing any wonk on or in any building or premises involving the erecting, installing, altering, repairing, servicing or maintaining of lines for the transmission or distri- bution of electric light and po%~r or other utility services; (f) an order or contract to renodel, repair, wreck or demolish a buil ding; (g) an order or contract to bore or dig a well; (h) an order or contract to install, maintain or repair air- conditioning apparatus or equipment. (3) Contracting generally includes, but is not limited to, persons engaged in the following occLpations, businesses or trades: Air-conditioning contracting Brick contracting and other masonry Buil ding Cementing Dredging 8 1980-18 Electrical contracting Elevator installation Erecting signs which are assessed as realty Floor scraping or finishing Foundation work House moving Paint and paper decorating Plastering Plumbing, heating, steamfitting Refrigeration work Road, street, bridge, sidewalk or curb and gutter construction Roofing and tinning Sewer drilling and well digging Sign painting Structural metal work Tile, glass, flooring and floor covering installation Wrecking, moving or excavating (4) A person is not a contractor if he is engaged in the business of selling and installing air conditioning units that are placed in windows or other openings with frames and require no ducts. The permanent installation of a unit in the wall of the building is contracting. (5) Any person engaged in the business of selling and/or erecting tombstones is not a contractor, but is engaged in either retail or wholesale sales. (6) Any person engaged in the business of wrecking or demolishing a building and who then sells the materials obtained is engaged in retail or wholesale as to the sale of the materials. (7) Soliciting business for a contractor is not contracting but is a business service. (8) (9) Every contractor, whether a general contractor or a subcontractor, is a contractor for purposes of local license taxation. The imposition of a license tax on the gross receipts of a general contractor and also a subcontractor is not double taxation. Each is engaged in business in his own right and licensable accordingly. A person who merely sells a prefabricated building or structure is not a contractor, but if the person or a subcontractor for that person erects the building or structure, then the seller is a contractor. (10) Any person who sells floor covering and furnishes and installs the floor covering under a contract with a general contractor (whether the covering be carpet, linoleum, tile or other covering) is a con- tractor. If floor coverings are sold at retail and installed as part of or incidental to the sale, then the transaction is not contracting but a retail sale. (11) If the installation of an appliance requires the running of electrical, water or gas lines or service outlets, or the performance of any other function previously defined as contracting, then the installation is contracting. (12) The mere hauling of sand, gravel and dirt is not contracting but is a business service. 1980-18 (13) Whether a person is a contractor or employed as a laborer depends on the facts in each case. The elements to be considered in making the distinction include, but are not limited to, the method of compensation, who supplies the materials and primarily who has the right of control. (14) Persons constructing in their own behalf for sale shall be included in the contracting cateory for the purpose of calculating the business license tax and this category shall include speculative builders. Sec. 12-24. Retail sales. (1) Every person engaged in retail sales, including operators of coin- operated machines or devices as defined below, shall pay for the privilege an annual license tax of thirty dollars or seventeen cents per one hundred dollars of gross receipts, whichever is greater, except that such tax shall be exactly thirty dollars for each of the fol lowing: (a) Peddlers, as defined in (2)(d) below, and (b) Itinerant merchants, as defined in (2)(e) below. (2) Definitions (a) Operator of coin-operated machine or device - Any person selling, leasing, renting or otherwise furnishing or providing a coin- operated machine or device operated on a coin-in-the-slot principle within the City of Fairfax; provided, however, the term "operator of coin-operated machines or devices" shall not include a person owning less than three coin machines and operating such machines on property owned or leased by such person. (b) Retail sale - The sale of goods, wares and merchandise for any purpose other than resale, but not including sales at wholesale to institutional, commercial and industrial users. (c) Retail merchant - Any person who makes retail sales. (d) Peddler - Any person who carries from place to place any goods, wares or merchandise and offers to sell or actually sells and delivers at the same time is a peddler. Such person does not keep a regular place of business with regular business hours. Any person who keeps a regular place of business, with regular business hours at the same place, who other than at that regular place of business, personally or through agents offers for sale or sells and, at the time of such offering for sale, delivers goods, wares and merchandise is a peddler. (e) Intinerant merchant - An itinerant merchant' is any person who engages in, does or transcts any temporary or transient business in Virginia, either in one locality of in traveling from place to place in the sale of goods, wares and merchandise, and who for the purpose of carrying on such business hires, leases, uses or occupies any building or structure, motor vehicle, tent, car, boat or public room or any part thereof, including rooms in hotels, lodging houses, or houses of private entertainment, or in any street, alley or public place in any city or town, or in any public road in any country, for a period of less than one year, for the exhibition of or sale of such goods, wares or merchandise. 10 1980-18 (3) Any peddler or itinerant merchant who sells goods, wares or merchandise at retail is engaged in retail sales and may be subject to local license taxation as such. (4) (5) (6) When a merchant conducts both a wholesale and a retail business, the merchant is subject to the retail license tax on the retail portion of the business and subject to the wholesale license tax on the wholesale portion of the business. However, the locality may permit but not require the merchant to pay the license tax as a retailer on both the retail and wholesale portions of the business. Any person engaged in repair service who sells parts in addition to or as a part of the repair service, is engaged in retail or wholesale sales as to the sales of the repair parts. Banks and Savings and Loan Associations that sell promotional items are engaged in retail sales as to the sales of the promotional items and are not exempt from local license taxation as to those sales. (7) In the sale of blank checks, a bank is not engaged in retail sales as to the sales of blank checks if the customer places an order for the checks directly with the printer and authorizes the bank to collect for the printer by charging his account, and the bank is not obligated to pay for the checks except insofar as it honors the customer's authorization. If, however, the customer places his order with the bank, and the bank contracts with the printer and is liable to the printer, whether or not the bank actually collects from the customer, then the bank is engaged in retail sales. (8) (9) A charitable institution or other not-for-profit organization that engages in the business of buying and selling merchandise may be subject to a local license tax as a retail or wholesale merchant, even though the proceeds are subsequently used for charitable purposes. A lunch counter operated by an organization open to members only, the proceeds from which are used to maintain the organization, may be subject to a local license tax. (10) Any hotel, motel, boardinghouse or lodging house which also furnishes or sells food or merchandise for compensation is engaged in retail sales as to the sales of the food or merchandise. (11) A person is not subject to a local license tax if his business in this state is limited solely to the solicitation of orders by catalogs mailed from outside this state to mail-order buyers in this state and who fills orders from outside this state. However, if the catalogs are distributed by a Virginia resident by mail or in person or if the person engaged in the mail-order business has a definite place of business in this state at which mail orders are received or filled, the mail-order business may be treated the same as any other retail or wholesale business for purposes of local license taxes. (12) Any person who merely fills prescriptions for or fits corrective lenses and eyeglass frames is a retail merchant. However, any prac- titioner who examines eyes is engaged in rendering a professional service. (13) Any practitioner of a profession who sells goods, wares or merchandise in connection with the practice of the profession may be engaged in making retail sales depending on the nature of the products sold and the service performed. 11 1980-18 (14) (15) (16) (17) ( 18 ) (1) (2) Examples in this area are as fol lows: (1) A medical doctor who engages in the sale of drugs or other goods, wares or merchandise as well as the practice of medicine is a merchant as to those sales. However, a medical doctor is not a merchant as to the drugs used in giving an /mmunization to a patient. (2) A ch irq0odi st who sells shoes in connection with his practice is a retail merchant as to such sales. A jcl0 printer is a manufacturer and is engaged in either retail or wholesale sales as to the sales of the items printed. The sales price alone is not detezminative of whether the sale is at retail or wholesale. The fact that a person sells goods, wares or merchandise at wholesale prices, at cost or at less than cost, does not prevent the person frcm being classified as a retail merchant if the sales fall within the definition of a retail sale. Any person who purchases rough stone already cut and who then polishes, glazes and cuts lettering in the stone is not a manufacturer and is engaged in either retail or wholesale sales. Any person who sells goods at retail through a co~mission merchant, as defined in section 12-26(6), may be held liable for a local license tax as to such sales. Any person subject to taxation as an operator of coin-operated machines or devices who is also engaged in other retail sales under this section may file a single return combining the taxable receipts. 12-25. Financial, real estate and ~rofessional services Every person engaged in a financial, real estate or professional service shall pay for the privilege an annual license tax of thirty dollars or forty cents per one hundred dollars of gross receipts, whichever is greater, except that such tax shall be thirty dollars or twenty-three cents per one hundred dollars of gross receipts, whichever is greater, for lessors of real property. It is the intent of this section to tax individually those persons practicing a profession who are members of a partnership, firm or corporation, or who are employees thereof. In the case of employees, gross receipts shall be measured by salary or ccmmission received. As to the members of partnerships or firms, they shall be taxed only in the prq0ortion that their respective share in the partnership or firm bears to the total "gross receipts." If such members chocse in lieu of individ,~l licenses they may file jointly for a single license and pay a collective license tax upon the total "gross receipts" but such filing must include a cemplete list of all m~nbers for whcm the license tax is being paid. Financial service - Any person rendering a service for compensation in the form of a credit agency, an investment company, a broker or dealer in securities and c~mm0dities or a security or commodity exchange is providing a financial service, unless such service is specifically prc~ided for under another section of this chapter. (2.1) Persons engaged in rendering financial services include, but are not limited to, the following: Buying instal ln~nt receivables Chattel mortgage financing Consumer financing Credit card services Credit unions 12 1980-18 (3) (4) Factors Financing accounts receivable Industrial loan companies Installment financing Inventory financing Loan or mortgage brokers Loan or mortgage companies Safety deposit box companies Security and commodity brokers and services S to ckbr oke r Working capital financing (2.2) Any person other than a national bank or bank or trust company organized under the laws of this state, or a duly licensed and practicing attorney at law, that engages in the business of buying or selling for others on commission or for other compensation, shares in any corporation, bonds, notes or other evidences of debt is a stockbroker. The fact that orders are taken subject to approval by a main office does not relieve the broker from local license taxation. Also, an insurance company engaged in selling mutual funds is a broker as to that portion of its business. Real estate service - Any person rendering a service for compensation as lessor, buyer, seller, agent or broker is providing a real estate service, unless the service is specifically provided for under another section of this chapter. (3.~) Those rendering real estate services include, but are not limited to, the following: Appraisers of real estate Escrow agents, real estate Fiduciaries, real estate Lessors of real property Real estate agents, brokers and managers Real estate selling agents Rental agents for real estate Professional service - A person is engaged in providing a professional service if engaged in rendering any service specifically enumerated below or engaged in any occupation or vocation in which a professed knowledge of some department of science or learning, gained by a prolonged course of specialized instruction and study is used by its practical application to the affairs of others, either advising, guiding, or teaching them, and in serving their interests or welfare in the practice of an art or science founded on it. The word profession implies attainments in professional knowledge as distinguished from mere skill, and the application of knowledge to uses for others as a vo ca t ion. (4.~) Those engaged in rendering a professional service include, but are not limited to, the following: Architects At t orneys-a t-law Certified public accountants Dentists Engineers Land surveyors Pharmacists 13 1980-18 Practitioners of the healing arts (as defined in section 54-273(2), Code of Virginia, as amended). Surgeons Veterinarians (4.2) The performing of services dealing with the conduct of business itself, including the promotion of sales or services of such business and consulting services, does not constitute the practice of a profession, even though the services involve the application of a specialized knowledge. (4.3) (a) Certification as a professional by itself is not sufficient to establish liability for local license taxation. Also, the fact that a professional is compensated by means of a salary is not sufficient by itself to relieve that professional from local license tax liability. (b) Gross receipts for purposes of local license taxation as a professional include only those gross receipts obtained from the practice of that profession as a business, whether it be on a full or part-time basis, in corporate, partnership, sole proprietorship or association form. Sec. 12-26. Repair, personal~ business and other services (1) Every person engaged in a repair, personal or business service or any other business or occupation not specifically listed or excepted from section 58-266.1 of the Code of Virginia, as amended, shall pay for the privilege an annual license tax of thirty dollars or eighteen cents per one hundred dollars of gross receipts, whichever is greater, except that such tax shall be exactly thirty dollars for transportation services, including buses and taxis. (2) Repair Service - The repairing, renovating, cleaning or servicing of some article or item of personal property for compensation is a repair service, unless the service is specifically provided for under another section of this chapter. Any person conducting a repair service occupation in conjunction with a retail merchant's business may combine gross receipts for such repair occupation with the gross receipts from the retail merchant's business. (3) Personal Service - Any service rendered for compensation either upon or for persons, animals or personal effects is a personal service, unless the service is specifically provided for under another section of this chapter. (4) Business Service - Any service rendered for compensation to any business, trade, occupation or governmental agency is a business service, unless the service is specifically provided for under another section of this chapter. (5) Those rendering a repair, personal or business service or other service as provided in (1) above include, but are not limited to, the fo 1 lowing: Advert is ing age nci es Airports Ambulance services 14 1980-18 Amusements and recreation services (all types) Animal hospitals, grooming services, kennels or stables Auctioneers and common criers Automobile driving schools Barber shops, beauty parlors, and hairdressing establishments, schools and services Bid or building reporting service Billiard or pool establishments or parlors Blacksmit~}/or wheelwright Bondsman -- Booking agents or concert managers Bottle exchanges Bowling alleys Brokers and commission merchants other than real estate or financial brokers Business research and consulting services Chartered clubs Child care attendants or schools Collection agents or agencies Commercial photography, art and graphics Commercial sports Dance halls, studios and schools Data processing, computer and systems development services Developing or enlarging photographs Detective agency and protective services Drafting services Engraving Erecting, installing, removing or storing awnings Extermination services Freight traffic bureaus Fumigating or disinfecting Funeral services and crematories Golf courses, driving ranges and miniature golf courses Hauling of sand, gravel or dirt Hotels, motels, tourist courts, boarding and rooming houses Trailer parks and campsites House cleaning services Information bureaus Instructors, tutors, schools and studios of music, ceramics, art, sewing, sports and the like Interior decorating Janitorial services Laundry cleaning and garment services including laundries, dry cleaners, linen supply, diaper service, coin operated laundries and carpet and upholstery cleaning Mailing, messenger and correspondent services Marinas and boat landings Movie theaters and drive-in theatres Nickel plating, chromizing and electroplating Nurses and physician registries Nursing and personal care facilities including nursing homes, convalescent homes, homes for the retarded, old age homes and rest homes See special conditions and provisions applicable to bondsmen in (10) infra. 15 1980-18 (6) (7) (8) Packing, crating, shipping, hauling or moving goods or chattels for others Parcel delivery services Parking lots..public garages and valet parking Pawnbrokers z_/ Personnel services, labor agents and employment bureaus Photographers and photographic services Piano tuning Picture framing and gilding Porter services Press clipping services Private hospitals Promotional agents or agencies Public relations services Realty multiple listing services Renting or leag}ng any items of tangible personal property -- Reproduction services Secretarial services Septic tank cleaning Shoe repair, shoe shine and hat repair shops Sign painting Storage - all types Swimming pool maintenance and management 4--/ Tabulation services Taxidermist Telephone answering services Theatres Theatrical performers, bands and orchestras Towing services Transportation services including buses and taxis Travel bureaus Tree surgeons, trimmers and removal services Turkish, Roman or other like baths or parlors Wake-up services Washing, cleaning or polishing automobiles Any person buying or selling any kind of goods, wares or merchandise for another on commission is a commission merchant and is engaged in a business service. Photographers who have no place of business in Virginia may be subject to local license taxation so long as the tax is not in excess of the tax imposed on photographers by the state. Sign painting is a service unless the sign is painted on the side of a building or any other structure assessed as realty, in which case the sign painting is contracting. See special provisions applicable to pawnbrokers in (11) infra. See special provisions governing situs of tangible personal property in (12) infra. See special provisions applicable to swimming pools in (13) infra. 16 1980-18 (9) An amusement is a type of entertainment or show for which compen- sation is received and that is not specifically provided for under another section of this chapter. (10) A Bondsman's license shall neither be transferable nor prorated. No license shall be issued unless and until the applicant shall have first obtained a certificate from the judge of the circuit court of the county approving the issuance of the license and certifying that the applicant is of good moral character, that his past conduct before the courts of the county has not been unsatisfactory and is suitable to be so licensed; and provided, further, that before the issuance of such certificate the judge of the circuit court of the county may review the record of the applicant as furnished by the Federal Bureau of Investigation. Prior to the issuance of such cer- tificate, the judge of the circuit court of the county may confer with the judge or judges of those courts in which the bondsman seeks to act. A license granted to a professional bondsman in the city shall authorize such person to enter into such bonds in the city. No professional bondsman shall enter into any such bond if the aggre- gate of the penalty of such bond and all other bonds, on which he has not been released from liability, is in excess of the true market value of his real estate. Each professional bondsman, if so directed by the judge of the circuit court of the county, shall place a deed of trust on the real estate that he is using for the limit of his expected bonded indebtedness to secure the Commonwealth of Virginia and shall name the Commonwealth's attorney as trustee under the deed of trust. In addition thereto, he shall furnish the clerk of the circuit court of the county an acceptable appraisal and title certificate of the real estate subject to any such deed of trust. Each professional bondsman licensed hereunder shall file with the clerk of the circuit court of the county not later than the fifth day of each month a list of all outstanding bonds on which he was obligated as of the last day of the preceding month, together with the amount of the penalty of each such bond. Any professional bondsman or agent for any professional bondsman, qualified under this section, shall be subject to and governed by any reasonable rules of conduct or procedure set up by the judge of the court in which he is acting as a bondsman which may include a require- ment that such bondsman or agent place a reasonable amount of cash or negotiable bonds in escrow with the clerk of the court to be held during the time such bondsman or agent is acting as bondsman in the court; provided, that the clerk is acting under a bond of sufficient amount and coverage to insure protection against loss, theft, or misappropriation. Upon his violation of such rules, he may, after hearing upon a charge of such violation, be suspended from entering into further bonds in the court by the judge thereof. If such bondsman or agent fails to have in escrow with the clerk of the court a sum sufficient to cover any forfeiture of bond against him and fails or refuses to pay such forfeiture after notice and demand by the judge of the court, he may be suspended by such judge from entering into further bonds in the court until the forfeiture is paid or it is adjudicated that he is not liable thereon. No person shall be licensed hereunder either as a professional bondsman or agent for any professional bondsman, when such person, or his or her spouse, holds any office as magistrate, clerk or deputy clerk of any court. 17 1980-18 Nothing in this section shall be construed to apply to guaranty, indemnity, fidelity and security companies doing business in Virginia under the provisions of sections 38.1-639 to 38.1-657 of the Code of Virginia, except that agents and attorneys-in-fact of guaranty, indemnity, fidelity and security companies entering into bonds for bail, appearances, costs or appeal in criminal cases, shall be required to obtain a certificate from the judge of the circuit court in which he desires to carry on the business of professional bondsman, certifying that the applicant is of good moral character, that his past conduct before the courts has not been unsatisfactory and he is suitable to be a licensed bondsman. This section shall apply to agents and attorneys- in-fact of guaranty, indemnity, fidelity and security companies entering into bonds for bail, appearances, costs or appeal, except that such company shall not be required to place cash or bonds in escrow with the court as hereinbefore required. (11) No license shall be issued to a pawnbroker until a permit shall bave been granted by the city council. Each pawnbroker shall make a daily report to the police department showing the names, addresses, and the kind and terms of each transaction. (12) For the purposes of this chapter, the situs of any item of tangible personal property whose rental is subject to taxation under this section is deemed to be the location of such tangible personal property. (13) A swimming pool license shall be issued only after the approval of the health officer and payment of the license tax. Such license shall be renewed annually. PART B. Other license taxes. Sec. 12-27. Advertising by means of loudspeakers~ etc.~ on vehicles. For each vehicle used on the streets of the city for advertising by means of a loudspeaker, radio or other mechanical equipment, there shall be a license tax of twelve dollars and fifty cents per day, which license tax shall not be prorated. Sec. 12-28. Alcoholic beverages. (a) Every person engaged in the manufacture, bottling or selling of alcoholic beverages within the city shall pay for the privilege, an annual license tax as follows: 1. For each distiller's license, One Thousand Dollars ($1,000.00); no such license shall be required for any person who shall manufacture not more than five thousand (5,000) gallons of alcohol or spirits or both during such license year. 2. For each winery license, One Thousand Dollars ($1,000.00); for each wholesale wine distributor's license, Fifty Dollars ($50.00). 3. For each brewery license, One Thousand Dollars ($1,000.00). 4. For each bottler's license, Five Hundred Dollars ($500.00). 5. For each wholesale beer license, One Hundred Twenty-Five Dollars ($125.00). 18 1980-18 6. For each wholesale druggist license, Ten Dollars ($10.00). 7. For each retail on-premises wine and beer license for a hotel, restaurant or club and for each retail off-premises wine and beer license, Seventy-Five Dollars ($75.00). 8. For each retail on-premises beer license for a hotel, restaurant or club, for each retail off-premises beer license and for each druggist license, Fifty Dollars ($50.00). 9. For each banquet license, Five Dollars ($5.00). 10. For each fruit distiller's license, One Thousand Five Hundred Dollars ($1,500.00). 11. For each hospital license, Ten Dollars ($10.00). 12. For each mixed beverage license as follows: (A) for each restaurant, including restaurants located on premises of and operated by hotels and motels, (i) with a seating capacity at tables for fifty to one hundred persons, two hundred dollars ($200.00). (ii) with a seating capacity at tables for more than one hundred but not more than one hundred fifty persons, three hundred fifty dollars ($350.00). (iii) with a seating capacity at tables for more than one hundred fifty persons, five hundred dollars ($500.00). (B) for each caterer, five hundred dollars ($500.00). (C) for each private, nonprofit club operating a restaurant on the premises of such club, three hundred fifty dollars ($350.00). (b) State license required. No such license shall be issued to any person, unless such person shall hold or shall secure simultaneously therewith the proper State license provided for in Chapter 1, Title 4, Code of Virginia, 1950 as amended. (c) Delivery. Nothing herein shall be construed so as to require any person to obtain a city license where such person is a wholesaler or distributor who maintains no place of business within the city, but merely delivers alcoholic beverages in the city. (d) License in addition to other license requirements. No alcoholic beverage license authorized by this chapter shall be construed as exempting any licensee from any merchants' or restaurants' licenses, and no such license shall be transferable. Authority: Virginia Code sections 4-38 and 4-98.19. Sec. 12-29. Canvassers and soliciting agents. Canvassers or soliciting agents unless covered by another section herein shall pay a license tax of thirty dollars per annum or five dollars per day, except when said tax is waived under section 12-3. Any canvasser or soliciting agent exempt from local licenses under the Interstate Commerce Act shall register with the chief of police. 19 1980-18 Sec. 12-30. Carnivals. No show, circus, carnival or other like performance shall be exhibited within the city unless a license has first been obtained therefor, for which privilege a license tax of one hundred fifty dollars per day shall be charged, and no rebate shall be allowed for rainy days. A carnival is an aggregation of shows, amusements, concessions and riding devices or any of them operated together on one lot or street or on contiguous lots or streets, moving from place to place, whether the same are owned and actually operated by separate persons or not. The term includes but is not limited to sideshows, dog and pony shows, trained animal shows, circuses and menageries. For the privilege of using the streets and highways of the city for a carnival street parade, a license tax of one hundred dollars shall be charged, and no such license shall be issued except after a permit for such parade has been obtained from the city manager. § 12-31. Dru~-related objects. (a) Every person engaged in the sale, whether retail or wholesale, of any drug-related object as defined herein shall pay for the privi- lege an annual license tax of five thousand dollars ($5,000.00). (b) For the puroses of this section, drug-related object shall mean any device, object, contrivance, instrument or paraphernalia which is primarily designed for use or intended by such person for one or both of the following purposes: (1) To inject, ingest, inhale or otherwise introduce into the human body marijuana or a controlled substance, the possession of which is unlawful; or (2) To test the strength or effectiveness of marijuana or a controlled substance, the possession of which is unlawful. Nothing contained herein shall be deemed to authorize any act which is otherwise unlawful. Sec. 12-32. Fortunetel lers. Any person engaging in the business of a fortuneteller shall pay an annual license tax of one thousand dollars, which tax shall be neither proratable nor transferable. The term "fortune teller" includes a clair- voyant, a practitioner of palmistry, a phrenologist, a faithhealer, a star analyst, a handwriting analyst who attempts to predict the future, or any other person who attempts to predict the future. Sec. 12-33. Health clubs. (a) Every person conducting or engaging in the business of a "health club" as defined herein shall pay an annual license tax of five thousand dollars ($5,000.00) not transferable to another person or subject to proration for part of the license year. (b) For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section: (1) Health club. Any establishment which offers service in the form of massage, baths, exercise or similar services, in combination to club members, or to the public for a charge. 2O 1980-18 The term "health club" does not include: (1) hospitals, nursing homes, medical clinics or the offices or quarters of a physician, a surgeon or an osteopath; or (2) exercise clubs exclusively for members or clientele of one sex alone where the services, without massage in any form, are performed by persons of the same sex as the members or clientele; or (3) barbershops and beauty parlors. (2) Masseur and masseuse. A person who practices any one or more of the arts of body massage, either by hand or mechanical apparatus, oil rubs, corrective gymnastics, mechanotherapy, including color therapy, dietetics, hot packs, cabinet, tub, shower, sitz, vapor, steam or any other special type of bath. Sec. 12-34. Junk dealers. Every person trading in any kind of junk, old metal, rags or other like commodities shall pay for the privilege an annual license tax of one hundred twenty-five dollars; and for each canvasser or agent canvassing the city for the purpose of buying junk or other secondhand materials, for a principal or for themselves, an annual license tax of one hundred twenty- five dollars shall be paid for the privilege. A person doing business under this section shall give bond in the amount of one thousand dollars for his faithful compliance with the law, the bond 'to be delivered to the city clerk upon the issuance of the license. The commissioner of revenue shall immediately notify the chief of police in writing of any license issued under the terms of this section. Sec. 12-35. Itinerant dealers in precious metals and jewels. (a) No peddler or itinerant merchant shall engage in the business of trading, buying or selling gold, silver, platinum, gems or semi-precious stones within the city unless a license has first been obtained therefor, for which privilege a license tax of one hundred dollars per day shall be charged. Licenses issued under this section shall designate the premises on which the licensee shall conduct business and the date or dates upon which such business may be conducted. Any license issued under this section shall be a personal privilege and shall not be transferrable, nor shall there be any abatement of the tax upon such license by reason that the licensee shall have exercised the privilege for any period less than for which it was granted. The license shall at all times be exhibited by the licensee on his business premises. Any false statement made on the application for such license shall render the license void ab initio. (b) The licensees shall: (1) At the time of licensing and before any license issued hereunder may become operative, post a surety bond with one corporate surety or two personal sureties with joint and several recognizance to the city in the penal sum of five thousand dollars conditioned upon observance of the terms of this chapter; and (2) ascertain the name, address, and age of each seller by requiring two forms of identification, one of which must have been issued by a governmental agency and contain a picture of the seller; and (3) keep records regarding each item purchased, the amount paid for it and the identity of the seller; and (4) deliver all records required to be kept herein to the chief of police on the day of purchase. 21 1980-18 (c) No purchase of gold, silver, platin~n, gems or semiprecious stones shall be made from anyone under the age of eighteen years. (d) Any person who is aggrieved by the misconduct of any licensee and obtains a judgment in a court of law, may, if licensee is not able to satisfy such judgment within 90 days thereafter, maintain an action in his own name upon the bond for the deficiency remaining due on the judgment. Sec. 12-36. Public utilities and public service companies. (a) Telephone companies. Ail persons engaged in the business of providing telephone communications in the city shall pay for the privilege an annual license tax equal to one-half of one percent of the gross receipts from rentals, subscriptions and stations within the city during the preceding calendar year; excluding, however, business done between the city and points outside the state or messages sent by the goverrment of the United States, or of this state, and their officers or agents. (b) Telegraph companies. Ail persons engaged in the business of sending telegraphic communications from the city to any point within the state shall pay for the privilege an annual license tax of one-half of one percent of the gross receipts derived from the sending of such telegrams and telegraphic communications of any kind during the preceding fiscal or calendar year; excluding, however, business between the city and points outside the state and receipts from the government of the United States, this state or this city, and their officers and agents. (c) Heat~ light and power and sas companies. Ail persons engaged in the business of furnishing electricity or gas, or furnishing heat, light or power by means of electric current or gas in the city shall pay for the privilege an annual license tax of one-half of one percent of the gross receipts derived during the preceding calendar year; excluding, however, such services furnished to federal, state and local authorities and sales for resale to other electric or gas companies. Sec. 12-37. Trailer parks. (a) For the purpose of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this sect ion: Trailer. Any vehicle designed, used or maintained for use as a conveyance upon highways, so designed and so constructed as to permit occupancy thereof as a temporary dwelling or sleeping place for one or more persons and any mobile home as defined by section 36-71 of the Code of Virginia. Trailer lot. A unit of land used or intended to be used by one trailer, in a permanent or semipermanent location, whether in a trailer park or camp or not, but shall not mean a unit of land used or intended to be used by one trailer on a transient basis not to exceed a period of two weeks. Trailer park. Any site, lot, field or tract of land upon which is located one or more trailers or which is held out for the location of any trailer. The term "trailer park" shall include any building, structure, tent, vehicle or enclosure used or intended for use as a part of the equipment for such park. (b) Any person engaging in the business of operating a trailer park in the city shall first obtain a license therefor, as provided in this chapter. 22 1980-18 (c) There is hereby imposed upon any person engaged in the business of operating a trailer park in the city an annual license tax of fifty dollars for each trailer lot used or intended to be used as such. (d) The annual license tax provided for in this section may be paid in quarterly installments. No such license shall be granted for a period of less than three months. (e) Licenses obtained under this section shall be posted in a con- spicuous place within the trailer park, so as to be easily accessible for inspection by the public or by any city official or law enforcement officer. (f) No person shall use more trailer lots than are listed with the city as used or intended to be used, without first paying to the city the additional license tax for such lots and obtaining a license therefor. (g) Each operator of a trailer park shall keep a record of tenants or guests. Such record shall show the name and last address of all persons residing at the trailer park. (h) Any person who shall violate any provision of this section shall, upon conviction thereof, be fined not less than fifty dollars nor more than five hundred dollars for each offense. Sec. 12-38. Wall signs and billboards. Ail persons engaged in the business of wall sign or billboard painting or posting or the rental of space or facilities for such signs or billboards shall pay for the privilege an annual tax of fifty dollars for each such wall sign or billboard. Wall signs or billboards shall be defined in chapter 26 of this Code. Such license tax shall not be prorated. Sec. 12-39. Wholesale sales. (a) A "wholesale sale" is the sale of products to others for resale or for institutional, commercial or industrial use. (b) Every person conducting or engaging in the business of wholesale sales shall pay for the privilege an annual license tax of thirty dollars or five cents per one hundred dollars of gross receipts, whichever is greater. Article III. Validity and Severability Sec. 12-40. Validity and Severability. Each part, section, subsection, paragraph, sentence, clause and phrase of this chapter is hereby declared severable. Should any part, section, subsection, paragraph, sentence, clause, or phrase of the chapter be declared invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the chapter in its entirety or any part thereof other than that so declared to be invalid. The city council hereby declares that it would have adopted this chapter and each part, section, subsection, paragraph, sentence, 23 1980-18 clause and phrase thereof, irrespective of the fact that any one or more such parts, sections, subsections, paragraphs, sentences, clauses or phrases, be declared invalid." This ordinance shall become effective January 1, 1981; except Section 12-35, which shall become effective October 21~ 1980. INTRODUCED: October 7, 1980 ADOPT ED: October 21, 1~80 Attest: City Clerk Mayo r 24