Chapter 5.05
BUSINESS TAX
Sections:
5.05.040 Multiple businesses or premises.
5.05.050 Basis and rate – Adjustments to rate.
5.05.060 Tax year and payment.
5.05.080 Issuance and display of receipt.
5.05.100 Remedies for nonpayment.
5.05.110 Temporary business license.
5.05.010 Purpose and scope.
The business tax imposed by this chapter is for revenue purposes only. The tax shall be in addition to and not in lieu of any other license or permit fee, charge or tax required under any other city code provisions. This chapter shall not be construed to constitute a regulation of any business activity, or a permit to engage in any activity otherwise prohibited by law, or a waiver of any regulatory licensing requirement imposed by any other city code provisions. [Code 2000 § 9.005.]
5.05.020 Definitions.
For the purposes of this chapter, the following mean:
(A) “Apartment house” means a building, portion of a building, or group of buildings on a parcel of land within the city containing two or more dwelling units which are rented, leased, let or made available for compensation for sleeping or living purposes. A building containing two dwelling units shall not be deemed an “apartment house” within the provisions of this chapter if the owner of the building occupies one of the dwelling units. The term “apartment house” shall include a hotel or motel, automobile or tourist court, rooming or lodging house, and mobile home or trailer park. In the case of mobile homes or trailer parks, the term “dwelling unit” shall mean “space” or “stall.”
(B) “Business” means an enterprise, establishment, store, shop, activity, profession or undertaking of any nature conducted, either directly or indirectly, for private profit or benefit. The term “business” shall include the ownership, management or operation of an apartment house.
(C) “Commercial building rental” means a building, portion of a building, or a group of buildings on a parcel of land within the city containing two or more businesses. A building or portion of a building containing two businesses shall not be considered a “commercial building rental” if the owner of the building conducts a business in a portion of such building.
(D) “Doing,” “engaging in,” or “transacting business” means any act or series of acts performed in the course of pursuit of a business activity.
(E) “Temporary business license” means a person, firm or corporation which intends to conduct or operate a business within the city for a period not to exceed 30 days in any one calendar year may apply for a temporary business license under the provisions of CMC 5.05.110. [Ord. 585 § 1, 1981; Code 2000 § 9.010.]
5.05.030 Imposition of tax.
(A) No person shall establish, maintain, operate, engage in, conduct or carry on any business within the city without first having paid the business tax as computed under CMC 5.05.050.
(B) It is the intention of this chapter to impose the business tax upon the owner, partner, or operator of the business and not upon a person whose income consists of a salary or wage paid to such person by the owner, partner, operator or employer. However, the employees, agents or representatives of a person who has no regular place of business within the city, but engages in business within the city, shall be personally responsible for the compliance of their principals and of the businesses they represent with this chapter. [Code 2000 § 9.015.]
5.05.040 Multiple businesses or premises.
(A) If a person is engaged in doing business at more than one establishment, branch or location, each establishment, branch or location shall be considered a separate business subject to the business tax.
(B) If two or more related businesses are carried on in the same premises by the same person, it shall be sufficient if the business tax is paid in the name of the business to which the premises is primarily appropriated and based upon the total number of individuals on the whole premises; provided, however, that any business activity leased, under concession to, or owned wholly or in part by a different person or persons on the same premises shall be separately taxed. In determining whether different activities on the same premises are related to the primary use within the meaning of this subsection, normal and ordinary customs and usages of business shall be considered. [Code 2000 § 9.020.]
5.05.050 Basis and rate – Adjustments to rate.
(A) In addition to an $80.00 application fee and except as provided in subsections (B) and (C) of this section, the business tax imposed by this chapter shall be paid on the basis of the following schedule:
(1) Resident business tax: $35.00 for each business and an additional $5.00 thereafter for each person employed or otherwise working full-time at or for the business.
(2) Nonresident business tax: $50.00 for each business and an additional $5.00 thereafter for each person employed or otherwise working full-time at or for the business.
(3) Temporary business tax: $75.00 for each business without regard to the number of employees.
(4) Mobile home park residential and commercial building rentals: $50.00 plus $5.00 for each space, dwelling unit or separate rent or leased area.
(B) Determining Number of Employees.
(1) For purposes of this section, the phrase “each person employed or otherwise working full-time” means the average number of officers, proprietors, partners and associates engaged in the taxable business, as well as the business’ employee. The monthly average shall be computed from the 12-month period preceding the business tax year or such portion thereof as such business has existed. A business that has individuals employed on a part-time basis shall have its business tax computed by prorating the total number of part-time hours worked as a ratio of the regular work period for the particular business when figuring the monthly average. Fractional numbers of one-half percent or more shall be considered the next highest number.
(2) Persons employed or otherwise working full-time for a business subject to this business tax who work entirely outside the city are not to be counted.
(3) If a business has its principal place of business outside the city, only those persons actively engaged in doing business within the city shall be counted.
(4) A business beginning after the start of the “tax year” as that phrase is used in CMC 5.05.060 shall have its tax based on the number of persons estimated to be employed or otherwise working full-time for the business during the remaining portion of the tax year.
(C) The city council may adjust the rates imposed by its business tax at such times as it deems necessary and shall do so by resolution. [Ord. 803 § 1, 2000; Code 2000 § 9.025.]
5.05.060 Tax year and payment.
(A) The business tax year shall be January 1st to December 31st.
(B) The business tax shall be paid annually in advance of the business tax year. If a person, firm or corporation begins engaging in business after the beginning of the business year, the business tax shall be paid in advance on a prorated basis as of the beginning of the quarterly period during which such activity begins.
(C) The city manager may authorize payment of the business tax by a person liable therefor on a quarterly prorated basis. [Code 2000 § 9.030.]
5.05.070 Delinquency charge.
(A) Except for the payment of business tax as set forth in CMC 5.05.060, the business tax shall be deemed delinquent if not paid by July 1st of the applicable business tax year. If a person begins engaging in business after the start of the business tax year, the business tax shall be deemed delinquent if the tax is not paid within 30 days after commencement of the business activity.
(B) Whenever the business tax is not paid on or before the delinquency date, a delinquency charge equal to 20 percent of the original business tax due and payable shall be added for each 30-day period, or fraction thereof, during which the business tax and any accumulated delinquency charges remain unpaid. The total amount of the delinquency charge for any business tax year shall not exceed 100 percent of the business tax due and payable for that year.
(C) The date that the business tax is received by the city or the date of the postmark if remittance is made by mail shall be used in determining when the business tax is paid. [Code 2000 § 9.035.]
5.05.075 Business recycling.*
(A) All businesses required to have a city of Cornelius business license shall recycle as follows:
(1) Businesses shall source separate from the waste stream all paper, cardboard, glass/plastic bottles or jars, and aluminum/tin cans;
(2) Businesses and business recycling service customers shall provide recycling containers for internal maintenance or work areas where recyclable materials may be collected, stored, or both; and
(3) Businesses and business recycling service customers shall post accurate signs where recyclable materials are collected, stored, or both that identify the materials that the business must source separate and that provide recycling instructions.
(B) Exemptions.
(1) This section does not apply to a business operated from their home. A residence is the place where a person lives.
(2) A business may seek an exemption from the requirements in subsection (A) of this section, if:
(a) The business provides access to the city or designated agent for a site visit; and
(b) The city or designated agent determines during the site visit that the business cannot comply with the business recycling requirement because of space or economic restrictions or other extenuating circumstances.
(C) To assist businesses in compliance with this section, the city or designated agent shall:
(1) Notify businesses of the business recycling requirement at the time application is made for a business license;
(2) Provide businesses with education and technical assistance to assist with meeting the requirements of this section; and
(3) The city’s business license procedures shall include provisions requiring that the business shall certify that they have complied with the requirements of this section upon signing the business license application and the business shall also certify upon renewal of the business license that they have complied with the requirements of this section.
(D) A business that does not comply with the business recycling requirement may receive a written notice of noncompliance. The notice shall describe:
(1) The violation;
(2) How the business or business recycling service customer can cure the violation within the time specified in the notice; and
(3) An offer of assistance with compliance.
(E) A business or business recycling service customer that does not cure the violation within the time specified in the notice of noncompliance may receive a written citation. The citation shall provide:
(1) An additional opportunity to cure the violation within the time specified on the citation; and
(2) Notification to the business or business recycling service customer that it may be subject to a fine.
(F) A business or business recycling service customer that does not cure the violation within the time specified in the notice of noncompliance may be subject to a fine. [Ord. 2024-02 § 1 (Exh. A), 2024.]
* Code reviser’s note: Ord. 2024-02 adds these provisions as CMC 5.05.070. They have been editorially renumbered to avoid duplication of numbering.
5.05.080 Issuance and display of receipt.
Upon payment of the business tax, a person shall be issued a receipt by the city for the payment. The receipt shall be kept posted in a conspicuous place on the business premises at all times. If there is no regular place of business within the city, the receipt shall be in the possession of a representative of the business present within the city at all times during which business is being transacted by any employee, agent or representative within the city. [Code 2000 § 9.040.]
5.05.090 Administration.
(A) The city manager shall be responsible for the administration of this chapter. He or she may:
(1) Adopt reasonable rules and regulations relating to any matter pertaining to the administration of this chapter.
(2) Prepare, adopt and make available to the taxpayer all forms necessary for compliance with this chapter.
(3) Examine the books, papers and records of any person subject to the tax at any reasonable time for the purpose of determining compliance with this chapter.
(B) No person shall:
(1) Violate or fail to comply with any rule or regulation adopted by the city manager;
(2) Refuse or hinder the examination of books, papers and records; or
(3) Willfully make any false or misleading statement to the city manager regarding the computation of the amount of business tax due and payable under this chapter.
(C) The city manager shall keep all information furnished or secured under the authority of this chapter in strict confidence. Such information shall not be subject to public inspection and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration and enforcement of this chapter. [Code 2000 § 9.045.]
5.05.100 Remedies for nonpayment.
(A) The amount of any unpaid business tax, including delinquency charges, shall constitute a debt due the city. The city attorney may collect the amount due by the appropriate means, including the institution of an action in the name of the city against the person liable therefor in any court of competent jurisdiction.
(B) No civil judgment or action taken by the city attorney under this section shall bar or prevent any prosecution in the municipal court for a violation of this chapter. [Code 2000 § 9.050.]
5.05.110 Temporary business license.
A person, firm or corporation may obtain a temporary business license to operate or conduct a business within the city for a period of 10 calendar days, subject to the following conditions:
(A) Any person, firm or corporation seeking a temporary business license shall apply for such a license on a form or forms to be provided by the city recorder. The application shall be filed in the office of the city recorder, together with an application fee of $20.00. The temporary business license may be extended for two additional 10-day periods. The application to extend the temporary business license shall be filed in the office of the city recorder, together with an application fee of $20.00 for each extension period requested. In no event shall a temporary business license be issued to a person, firm or corporation or their successor in interest or assigns for a period exceeding 30 days in any calendar year. Filing an application for a temporary business license or an extension thereof shall constitute the consent of the applicant to the investigation of the applicant by and through the department of police and any federal, state or local police agency with which the department of police shall cooperate. The department of police investigation shall be conducted to determine the existence of good moral character of the applicant. Among other things, the application form shall require the applicant to identify and describe the real property and location upon which the business shall be conducted, and the applicant shall submit with the application form a written statement from the owner of the property so identified evidencing the owner’s consent to the applicant’s conducting business upon the described real property for the period requested.
(B) The provisions of this section shall not apply to any nonprofit firm, individual or corporation of which is authorized to do business by the Department of Commerce, State of Oregon. [Ord. 585 § 2, 1981; Code 2000 § 9.051.]