State law reference - Uniform fiscal year for cities, Code of Virginia, § 15.1-159.8.

State law reference - Security for Public Deposits Act, Code of Virginia, §§ 2.1-359-2.1-370.

State law reference - Authority for above section, Code of Virginia, § 15.1-29.4.

a. There is hereby assessed, as a part of the fees taxed as costs in (i) each civil action filed in the General District Court for the City of Staunton, the Juvenile Domestic Relations District Court for the City of Staunton, and the Circuit Court for the City of Staunton and (ii) each criminal or traffic case in such courts in which the defendant is charged with a violation of any statute or ordinance, the sum of two dollars ($2.00).

b. This assessment shall be collected by the clerk of the court in which the action is filed, and remitted to the treasurer of the city and held by such treasurer subject to disbursements by the city council for the City of Staunton for the construction, renovation or maintenance of courthouse or jail and court-related facilities and to defray increases in the cost of heating, cooling, electricity and ordinary maintenance.

c. This assessment shall be in addition to any other fees prescribed by law.

State law reference: Code of Virginia § 14.1-133.2 (Ord. of 8-12-92)

(a) The city treasurer shall perform such duties, have such powers and be liable to such penalties as are now or may hereafter be prescribed by the laws of the state or the ordinances of the city made in pursuance thereof, and for all services performed for the city, the treasurer shall receive such compensation, payable monthly, as is approved by the state compensation board.

(b) The treasurer, in addition to the duties imposed by this article, shall discharge such other duties as are required of him by law or which may be imposed on him by the council and shall be subject to all the duties and penalties of county and city treasurers under existing laws of the state, so far as they are consistent with this article. (Code 1964, § 10-8)

(a) For the purpose of collecting all sidewalk and sewer assessments and any other dues owing to the city, the city treasurer and his deputies shall have the same right of distress and levy as the laws of the state vest in those whose duty it is to collect the taxes, levies, assessments and other dues owing to the state and all properties subject to levies to satisfy taxes due the state may be taken to satisfy any taxes, assessments or dues to the city. No deed of trust or mortgage upon goods and chattels shall prevent the same from being distrained or sold for taxes assessed against the grantor in such deed, while such goods and chattels remain in the possession of the grantor, nor shall any such deed prevent the goods and chattels conveyed from being distrained and sold for the taxes assessed thereon, no matter in whose possession they may be found.

(b) At any time after taxes, assessments, levies or dues owing to the city shall have become delinquent and unpaid and after the penalty provided by law has been added thereto, the city treasurer and all officers of the city authorized to collect taxes or levies due the city shall have the power of distress, garnishment or other action, and any other power now possessed by, or that may hereafter be given to, any other person charged with the collection of state taxes. (Code 1964, § 10-15)

State law reference - Collection of taxes generally, Code of Virginia, § 58.1-1800 et seq.

State law reference - Code of Virginia § 58.1-3958.

State law reference - Election of commissioner of revenue, Code of Virginia, §§ 15.1-40.1, 24.1-86.

(a) There is hereby created the position of chief finance officer of the city, to be known as the director of finance and purchasing. The appointment to the position is the responsibility of the city manager. The powers, duties and responsibilities of the position shall be those established by this article, other ordinances of the city, appropriate state statutes and directives of the city manager.

(b) Subject to limitations imposed by the state constitution and statutes of the city, the chief finance officer shall provide general supervision over the assessment of real property for the purpose of taxation, development and maintenance of accounting and financial records, control of stores' inventories and acquisition of materials, supplies and equipment. The chief finance officer shall also serve as budget officer, subject to supervision by the city manager. (Code 1964, § 10-33)

(a) There is hereby created, in the office of the chief finance officer, the position of purchasing agent for the city. It shall be the duty of the purchasing agent, subject to the policies of the city council and the general administrative supervision of the city manager, to establish specifications for materials, supplies and equipment, to solicit competitive quotations on items to be purchased, to maintain control over stores' inventories of the city and to procure items used by the city in the most economical manner available. Specifications shall be prepared so that the greatest competition can be generated among vendors, consistent with the quality needed by the city and most economical cost over the anticipated life of the items acquired.

(b) A record shall be maintained, for not less than eighteen (18) months, of all bids or quotations on items which have successful quoted prices of more than two hundred dollars ($200.00).

(c) Where there is only one known source of supply for an item, competitive quotations will not be required; provided, however, that written approval for this exception to the bidding requirements shall be obtained from the city manager. (Code 1964, § 2-38.1)

State law reference - Virginia Public Procurement Act, Code of Virginia, § 11-35 et seq.

State law references - Land books, Code of Virginia, § 58.1-3301 et seq.; personal property books, § 58.1-3114 et seq.

(a) The city treasurer shall commence to receive the city taxes on the first day of February in each year or as soon thereafter as he may receive copies of the books of the commissioner of revenue, and for this purpose shall give notice for at least two (2) weeks prior to June twentieth each year that he is prepared to receive at his office the whole or three-fourths of the city taxes on real estate from any person charged therewith on or before June twentieth in each year, or in case that day is Saturday, Sunday or a legal holiday, then the following business day, without penalty, and for this purpose shall give notice for at least two (2) weeks prior to December fifth each year that he is prepared to receive at his office on or before December fifth of each year the remaining one-fourth of the city taxes on real estate and all the city taxes on personal property.

(b) Any person who shall fail to pay the taxes required on or before the dates herein set forth in each year shall incur a penalty thereon of ten (10) percent, which shall be added to the whole amount of taxes or levies due from such taxpayer, and the city treasurer shall proceed with the collection of such taxes or levies as provided by law.

(c) Should it come to the knowledge of the treasurer that any person owing such taxes or levies is moving or contemplating moving from the corporate limits of the city prior to June twentieth or the following December fifth, as the case may be, the treasurer shall have the power to collect such taxes or levies by distress, or otherwise, at any time after such bills shall have come into his hands.

(d) Interest at the rate of ten (10) percent per annum shall be collected upon the principal and penalties of such taxes and levies from the first day of January following the year for which such unpaid taxes or levies were assessed, which penalties and interest shall be collected and accounted for by the city treasurer, along with the principal thereof, as provided by state law. (Code 1964, § 10-13)

State law reference - Authority of council to prescribe tax due dates and penalty and interest on delinquent taxes, Code of Virginia, § 58.1-3916.

(a) For the purpose of this section, an "automobile graveyard" is any lot or place which is exposed to the weather and upon which more than five (5) motor vehicles of any kind, incapable of being operated, and which it would not be economically practical to make operative, are placed, located or found.

(b) The city hereby imposes a license tax upon each automobile graveyard in the city, in the amount of one dollar ($1.00) per annum for each motor vehicle or hulk thereof, twelve (12) years old or older, within the premises of such graveyard on January first of each year. (Code 1964, §§ 15-290, 15-298)

State law references - Similar definition of "automobile graveyard," Code of Virginia, § 33.1-348; authority for above tax, § 15.1-28.

*State law reference - Authority of city to provide for the exemption provided for in this article, Code of Virginia, § 58.1-3210.

DWELLING shall mean the sole residence of the person or persons claiming exemption under this article.

EXEMPTION shall mean the percentage exemption from the real property tax imposed by the city allowable under the provisions of this article,

PERMANENTLY AND TOTALLY DISABLED shall mean unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment or deformity which can be expected to result in death or can be expected to last for the duration of the person's life.

TAXABLE YEAR shall mean the calendar year, from January first through December thirty-first, for which real property tax is imposed or exemption is claimed. (Code 1964, § 10-72)

(1) The title to the property for which exemption is claimed is held or partially held by the person claiming such exemption, as of January first of the taxable year for which such exemption is claimed.

(2) The dwelling for which the exemption is claimed is occupied as the sole dwelling of such claimant.

(3) The head of household claiming such exemption is sixty-five (65) years of age or older as of December thirty-first of the year immediately preceding the taxable year for which the exemption is claimed. If the head of household claiming such exemption is under sixty-five (65) years of age, such person is permanently and totally disabled as of December thirty-first of the year immediately preceding the taxable year for which the exemption is claimed.

(4) The gross combined income from all sources of an owner of the dwelling living therein without a spouse living therein, and of his relatices living in such a dwelling for the immediately preceding calendar year, does not exceed the sum of sixteen thousand dollars ($16,000.00); or in the case the owner and spouse are living therein, the gross combined income from all sources of the owner and spouse and of their relatives living in such dwelling, for the immediately preceding calendar year, does not exceed the sum of twenty-thousand dollars ($20,000.00); provided, however, that the first two thousand five hundred dollars ($2,500.00) of income of each relative, other than the spouse of the owner, who is living in such dwelling shall not be included in such total. (Ord. of 9/10/98)

(5) The net combined financial worth, including equitable interests, as of the thirty-first day of December of the immediately preceding calendar year, of the owner and of the spouse of the owner, excluding the value of the dwelling and the land, not exceeding one acre, upon which it is situated, does not exceed fifty thousand dollars ($50,000.00).

(a) A person claiming an exemption under this article shall file annually with the commissioner of revenue, on forms supplied by the city, an affidavit setting forth the names of the related persons occupying such real estate and that the total combined net worth, including equitable interests, and the combined income from all sources, of the persons specified in section 12-95 does not exceed the limits prescribed in this article.

(b) If the person filing an affidavit under this section is under sixty-five (65) years of age, the affidavit shall have attached thereto a certification by the social security administration, the veteran's administration or the railroad retirement board, or if such person is not eligible for certification by any of these agencies, a sworn affidavit by two (2) medical doctors licensed to practice medicine in the commonwealth, to the effect that such person is permanently and totally disabled, as defined in section 12-92. The affidavit of at least one of such doctors shall be based upon a physical examination of such person by such doctor. The affidavit of one of such doctors may be based upon medical information contained in the records of the civil service commission which is relevant to the standards for determining permanent and total disability as so defined.

(c) The affidavit required by this section shall be filed after the first day of February of each year, but before the first day of May.

(d) The commissioner of revenue, after audit and investigation of affidavits submitted under this section, shall certify and submit a list of the persons and property qualifying for exemption and the amount thereof to the city assessor's office, the chief finance officer and the city treasurer, who shall forthwith deduct the amounts of such exemptions from the real estate tax chargeable for the taxable year to such persons and property. (Code 1964, § 10-75)

*State law reference - Authority of city to provide for the exemption provided for in this article, Code of Virginia, §§ 58.1-3220, 58.1-3221.

SUBSTANTIALLY REHABILITATED COMMERCIAL OR INDUSTRIAL REAL ESTATE shall mean any commercial or industrial real estate upon which there is an existing structure which is no less than twenty-five (25) years of age and which has been so improved as to increase the assessed value of the structure by no less than sixty (60) percent, without increase of the total square footage of the structure.

SUBSTANTIALLY REHABILITATED RESIDENTIAL REAL ESTATE shall mean any residential real estate upon which there is an existing structure which is no less than twenty-five (25) years of age and which has been so improved as to increase the assessed value of the structure by no less than forty (40) percent, without increasing the total square footage of the structure by more than fifteen (15) percent.

TAXABLE YEAR shall mean the calendar year, from January first through December thirty-first, for which real property tax is imposed or an exemption is claimed under this article. Ord. of 2-26-81, § 10-80)

(1) The person claiming the exemption shall file his application on a form approved by the city assessor, requesting the exemption provided by this article prior to January first of the taxable year for which the exemption is claimed. Such application shall not be deemed to be filed until the applicant has paid to the city a fee in the amount of twenty dollars ($20.00) for processing such application.

(2) No property shall be eligible for the exemption unless the appropriate building permits have been acquired and the city assessor has verified that the rehabilitation indicated on the application has been completed.

State law reference - Authority for above tax, Code of Virginia, § 58.1-814.

COMMERCIAL OR INDUSTRIAL USER. The owner or tenant of property used for commercial or industrial purposes, including apartment buildings, who pays for utility service for such property. Purchaser. Every person who purchases a utility service.

RESIDENTIAL USER. - The owner or tenant of private residential property who pays for utility service in or for such property.

SELLER. Every person, whether a public service corporation of the city or not, who sells or furnishes a utility service.

UTILITY SERVICE. Local exchange telephone service, electricity service, gas service and water service furnished in the corporate limits of the city. (Code 1964, § 10-62)

State law reference - Authority for above tax, Code of Virginia, §§S 58.1-3812, 58.1-3814.

(a) The United States of America, the state and the political subdivisions, boards, commissions and authorities thereof are hereby exempted from the payment of the tax imposed and levied by this article with respect to the purchase of utility services used by such governmental agencies.

(b) The tax imposed and levied by this article shall not apply to the purchase of bottled water.

(c) The tax imposed and levied by this article shall not apply to the purchase of electric service for heating water when such service is billed under a water heating schedule and a separate meter is used for such service.

(d) The tax imposed and levied by this article shall not apply to dedicated data network connections used for commercial purposes by licensed businesses. (Code 1964, §§ 10-63, 10-67, 10-69; Ord. 8-22-96)

(1) When used in this section the following words shall have the following meanings except where the context clearly indicates that a different meaning is intended.

(2) There is hereby imposed and levied by the City of Staunton, upon every purchaser of local telephone service a tax in the amount of two dollars and fifteen cents ($2.15) per month. This tax shall be be paid by the purchaser to the seller of local telephone service (hereinafter referred to as "seller") for the use of the City of Staunton to pay for the initial capital, installation, communications facility renovations and/or remodeling, and maintenance costs of its E911 system. When the total initial capital and installation costs are paid, the tax shall be reduced to a level necessary to pay the recurring maintenance and 1 system. The treasurer of the city shall notify the seller of the date on which the tax is to be reduced under this section. This notification will be sent by certified mail to the registered agent of the seller sixty (60) days in advance of the date of which the tax is to be reduced.

(3) It shall be the duty of every seller in acting as the tax collecting medium or agency for the city to add the amount of the tax imposed under paragraph (2) of this section to all periodic bills it renders to non-exempt purchasers of local telephone service. The seller shall accept remittances of tax from purchasers at the time it collects the charges for local telephone service and shall report and pay over all tax collected in any calendar month to the treasurer of the city on or before the last day of the first calendar month thereafter. At this time, the seller shall notify the treasurer of the city of the name and address of all purchasers who refuse to pay the tax imposed by this section. The tax levied or imposed under this section shall become effective with the later of. (1) bills dated sixty (60) days after a copy of the section is sent to the registered agent of the seller by certified mail, or (2) bills dated on or after January 1, 1990.

(4) Each and every seller shall keep records showing all purchases of local telephone service in the City of Staunton. These records must show the date of bills for local telephone service and the amount of tax appearing on each bill. These records shall be kept at the seller's offices for a period of three (3) years for inspection by the duly authorized agents of the city at reasonable times during normal business hours. The duly authorized agents of the city shall have the right, power and authority to make copies thereof.

(5) The United States of America, the State of Virginia and the political subdivisions, agencies, boards, commissions and authorities of the United States and the State of Virginia are hereby exempted from payment of the tax imposed and levied by this section.

(6) This tax shall not apply to any local telephone service where a periodic bill is not rendered.

(7) Any purchaser who willfully fails, refuses, or neglects to pay the tax hereby imposed any seller, or any officer, agent or employee thereof, who with full knowledge, willfully refuses to perform the duties imposed on it by paragraphs (3) and (4) of this section with the intent of preventing the collection of the tax imposed by this section, shall upon conviction be subject to a fine of not more than twenty-five dollars ($25.00). Each failure, refusal or neglect and each day's continuance thereof shall constitute a separate offense.

(8) Whenever the tax levied by this section is collected by the seller acting as tax collecting medium or agency for the City of Staunton in accordance with paragraph 12-146(3), such seller shall be allowed as compensation for the collection and remittance of this tax, three (3) per cent of the amount of tax due and accounted for. The seller shall deduct this compensation from the payment made to the Treasurer of the City of Staunton in accordance with paragraph 12-146(3). (Ord. of 10-26-89; Ord. of 7/13/94; Ord. of 5/22/97)

COMMISSIONER OF THE REVENUE shall mean the commissioner of the revenue of the City of Staunton, Virginia, or any of his duly authorized deputies or agents.

HOTEL shall mean any public or private hotel, inn, hotel, hostelry, tourist home or house, motel, rooming house, or other lodging place within the City of Staunton offerring lodging for four (4) or more persons at any one time, and the owner and operator thereof, who for compensation, furnishes lodging to any transients as hereinafter defined.

PERSON shall mean and include individuals, firms, partnerships associations, corporations, persons acting in representative capacity, and combinations of individuals of whatever form and character.

ROOM RENTAL shall mean the total charge made by any such hotel for lodging or space furnished any such transient. If the charge made by such hotel to such transient includes any charge for services or accommodations in addition to that of lodging, or the use of space, then such portion of the total charge as represents only room or space rental shall be distinctly set out and billed to such transient by such hotel as a separate item.

TRANSIENT shall mean any person who, for any period of not more than thirty (30) consecutive days either at his own expense or at the expense of another, contains lodging or the use of any space in any hotel as hereinabove defined, for which lodging or use of space a charge is made.

TREASURER shall mean the treasurer of the City of Staunton, Virginia, or any of his authorized deputies or agents. (Ord. of 7-25-85)

(a) The person collecting any such tax shall make out a report upon such forms and setting forth such information as the commissioner of the revenue may prescribe and require, showing the amount or room rental charges collected, and the tax required to be collected, and shall sign and deliver the same to the commissioner of the revenue.

(b) The commissioner of the revenue shall determine whether the report is in proper form and upon such determination shall cause a copy to be delivered to the treasurer. treasurer.

(c) The person collecting any such tax shall remit the tax to the treasurer.

(d) Said reports and remittances shall be made on or before the 20th day of the month following each month and covering the amount of tax collected during the preceding month. The first report must be filed not later than August 20, 1985. (Ord. of 7-25-85)

*Editor's note - Provisions designated as Art. XI by an ordinance adopted June 12, 1986, have been redesignated as Art. XII by § 1 of an ordinance adopted Dec. 13, 1990.

CATERER. A person who furnishes meals to be consumed on the premises of another, for compensation.

COMMISSIONER. The commissioner of revenue of the City of Staunton and his or her designated deputies, assistants, inspectors, clerks or other employees.

MEAL. Any prepared food and drink, including alcoholic beverages, offered or held out for sale by a restaurant or caterer for the purpose of being consumed by an individual or group of individuals at one time to satisfy the appetite. All such food and drink shall be included, whether intended to be consumed on the seller's premises or elsewhere, whether designated as breakfast, lunch, dinner, supper or by some other name and without regard to the manner, time or place of service.

PURCHASER. Any person who purchases a meal.

RESTAURANT. Any place in the city from which or in which meals are sold, including but not limited to places of business known as bars, cafes, cafeterias, coffee shops, clubs, delicatessens, diners, dining rooms, eateries, grills, lunch counters, restaurants or snack bars including but not limited to those restaurant or food service operations in grocery stores, convenience markets, service stations or other stores not traditionally engaged in the food service trade and any mobile or portable food service operation including but not limited to lunch wagons or carts, portable stands, shacks or booths.

SELLER. Any restaurant or caterer selling meals, or the person operating such business. (Ord. of 6-12-86; Ord. of 1-24-91)

(a) Meals furnished by restaurants to employees as part of their compensation when no charge is made to the employee.

(b) Meals sold by public or private elementary or secondary schools, colleges or universities, to their students or employees.

(c) Meals purchased by agencies of federal, state or local government or by officers or employees thereof while on official business.

(d) Meals furnished by a hospital, medical clinic, convalescent home, nursing home, home for the aged, infirm or handicapped or other extended care facility to patients or residents thereof.

(e) Meals furnished by a nonprofit charitable organization to elderly, infirm, handicapped or needy persons in their homes or at central locations.

(f) Meals sold by a nonprofit educational, religious, charitable or benevolent organizations on an occasional basis as a fund-raising activity.

(g) Meals or food sold from coin-operated vending machines.

(h) Any other sale of a meal which is exempt from taxation under the Virginia Retail Sales and Use Tax Act, or administrative rules and regulations issued pursuant thereto.

(i) Nonalcoholic beverages, popcorn, candy and similar confections sold in theatres.

(j) Meals served at the City Market established by Chapter 30 of the Staunton City Code.

(a) It shall be the duty of the commissioner to ascertain the name of every person operating a restaurant in the city liable for the collection of the tax imposed by this article who fails, refuses or neglects to collect such tax or to make the reports and remittances required by this article. The commissioner may have issued a summons for such person, and the summons may be served upon such person by any city police officer or city sheriffs deputy in the manner provided by law.

(b) In the event the purchaser of any meal refuses to pay the tax imposed by this article, the seller may call upon the police department for assistance; and the investigating officer may, when probable cause exists, issue the purchaser a summons returnable to the General District Court as provided by law.

(a) The boundaries of the Staunton Enterprise Zone are as set forth on the map entitled "Map of the Staunton Enterprise Zone", dated the 1st day of January, 1990, made by the Engineering Department for the City of Staunton, and as further shown on the map entitled "Expanded Enterprise Zone, City of Staunton, VA.", dated May, 1992, made by the Engineering Department for the City of Staunton, the provisions of which maps are incorporated herein by reference. The Staunton Enterprise Zone as shown on the map dated the 1st day of January, 1990 is hereby established effective January 1, 1990, and the expanded portion of the enterprise zone as shown on the map dated May, 1992, is hereby established on May 18, 1992. The entire enterprise zone shall terminate on December 31, 2009.

(b) With respect to the expanded portion of the enterprise zone set forth on the map entitled "Expanded Enterprise Zone, City of Staunton, Va." dated May, 1992, the benefits provided herein in Sections 12-194, 12-195 and 12-196, and the regulations promulgated under Section 12-197 shall be measured from May 18, 1992, the date of establishment of the expanded enterprise zone. (Ord. of 5-24-90; Ord. of 2/25/93)

(a) Average number of full-time employees means the number of full-time employees during each payroll period of a business firm's taxable year divided by the number of payroll periods.

(b) Business firm means any business entity, incorporated or unincorporated, which is authorized to do business in the Commonwealth of Virginia and which is subject to state individual income tax, state corporate income tax, state franchise or license tax, state franchise or license tax on gross receipts, or state bank franchise tax on net taxable capital.

(c) Employee of a zone establishment means a person employed by a business firm who is on the payroll of the firm's establishment(s) within the zone. In the case of an employee who is on the payroll of two or more establishments of the firm, both inside and outside of the zone, the term "employee of a zone establishment" refers only to such an employee assigned to the firm's zone establishment(s) for at least one-half of his normally scheduled work days.

(d) Gross receipts attributable to the active conduct of trade or business within an enterprise zone means all receipts of the business firm arising from the firm's activities or from the investment and use of a firm's capital in its establishment(s) within the zone. The proportion of gross receipts arising from the firm's activities or from its investment and use of capital within the zone shall be calculated by dividing the adjusted gross expenses of the firm's establishment(s) within the zone by the firm's adjusted gross expenses both inside and outside the zone.

(e) "New business firm" means a business firm which begins the operation of a trade or business within a zone after the date of zone designation. This shall include a business firm which existed in the designated zone prior to such designation of the zone, but which by bona fide sale becomes owned by another person, firm or corporation in which the previous owner or any member of his immediate family has no interest. "Immediate family" as used herein shall mean the spouse, brothers, sisters, or children of the owner." (Ord. of 7-25-91)

(f) Full-time employee means a person employed by a business firm who is normally scheduled to work at least thirty-five (35) hours per week during the firm's payroll period or two (2) or more individuals who together share the same job position and together work the normal number of hours a week as required by the business firm for that one position. The term "full-time employee" does not include unpaid volunteer workers. (Ord. of 5-24-90)

(a) Any business firm situate in the enterprise zone which (i) make repairs, renovations or other structural or interior improvements to the premises in the enterprise zone, without increasing the square footage of the premises and (ii) increase its average number of full-time employees (meaning employees of a zone establishment) existing in the calendar year immediately prior to the calendar year in which such improvements are completed by at least ten (10) per cent in the year such improvements are completed, shall receive a five (5) year deferral of increased assessment of property value for real estate tax purposes with respect to such improvements.

(b) Notwithstanding the foregoing, however, any business firm otherwise entitled to said deferral, shall have such deferral terminated in the calendar year in which the average number of full-time employees falls below the ten (10) per cent increase set forth above or in any event on December 31, 2009, whichever date comes first. (Ord. of 5-24-90)

(a) Any business firm, not already existing in the enterprise zone but which locates therein after the effective date of this article and prior to the expiration date of this article, shall be exempt from the payment of any local business professional and occupational license fees established by the City of Staunton for a period of five (5) years beginning with the calendar year of the establishment of such firm in the enterprise zone. Notwithstanding the foregoing, however such exemption shall terminate, nevertheless upon the date such business firm relocates outside the enterprise zone or upon the termination date of this article, whichever comes first.

(b) Any business firm situate in the enterprise zone shall be exempt from the payment of local fees for building permits, renovation permits, plumbing permits, electrical permits, mechanical permits, special use permits, rezoning fees and water and sewer connection fees, including fire suppression connection fees, for a period of ten (10) years, commencing with January 1, 1990, with respect to firms situate in the enterprise zone on that date and commencing with the date such firm locates in the enterprise zone as to new business firms. Notwithstanding the foregoing, however, such exemptions shall terminate in any event on December 31, 2009. (Ord. of 5-24-90; Ord. of 6-28-95))

(a) Any business firm situate in the enterprise zone which (i) expands the square footage of its business premises by at least five (5) per cent or (ii) increases its average number of full-time employees (meaning employees of a zone establishment) by ten (10) per cent over the average number of full-time employees it employed in the calendar year immediately prior thereto, shall be entitled to a reduction of fifty (50) per cent of the machinery and tools tax imposed by the City of Staunton beginning with the tax year in which either condition above is met. Such reduction shall terminate after five (5) years or upon said firm's relocation outside the enterprise zone or on December 31, 2009, whichever date comes first.

(b) Any business firm, not previously located in the enterprise zone, which relocates within the enterprise zone shall be entitled to a reduction of fifty (50) per cent of the machinery and tools tax imposed by the City of Staunton. Such reduction shall terminate after five (5) years or upon said firm's relocation outside the enterprise zone or on December 31, 2009, whichever date comes first. In addition, any such business firm relocating within the enterprise zone shall be exempt from paying local utility taxes as to the utilities consumed upon its premises in the enterprise zone. Such reduction shall terminate after five (5) years or upon said firm's relocation outside the enterprise zone or on December 31, 2009, whichever date comes first.

(c) The tax to be reduced hereunder shall only be that portion of such tax as is applicable to machinery and tools located on the premises of the business firm situate in the enterprise zone. (Ord. of 5-24-90)

(a) If the commissioner of revenue is satisfied that he or she has erroneously assessed any applicant with any local taxes, the commissioner shall certify to the treasurer the amount erroneously assessed. If the taxes have not been paid, the applicant shall be exonerated from so much thereof as is erroneous, and if such taxes have been paid, the treasurer or his successor in office shall refund to the applicant the amount erroneously paid, together with any penalty and interest paid thereon.

(b) When the commissioner of revenue who made the erroneous assessment has been succeeded by another person, such person shall have the same authority as the commissioner making the original erroneous assessment provided he or she makes diligent investigation to determine that the original assessment was erroneously made and certifies thereto to the local treasurer and the Staunton City Council.

(c) Any person who believes an erroneous assessment has been made to his or her taxes may apply to the commissioner of revenue in writing stating sufficient detail to enable the commissioner to evaluate such claim.

(d) Local taxes subject to relief hereunder shall include all local taxes imposed by the City of Staunton under the provisions of the Staunton City Code and the ordinance amending and restating the ordinance imposing taxes on persons and property and imposing license taxes enacted as of January 1, 1976, as amended.

(e) Notwithstanding the foregoing, however, no refund shall be made hereunder in any case when application therefor was made more than three (3) years after the last day of the tax year for which such taxes were assessed. In the event, however, that any tax is declared to be unconstitutional by a court of competent jurisdiction, the city council for the City of Staunton may grant a refund of such tax to all taxpayers, for those years to which the court proceeding was applicable.

(f) This section shall not apply to any tax collected by the City of Staunton which is paid over by the city to state or federal authority. (Ord. of 10-25-90)

(a) The boundaries of the Downtown Service District shall be defined to include all properties fronting upon and the area included within the following boundaries:

(b) References to street names set out in subsection (a) of this section are based upon and fully shown on a Map, dated October 17, 1994, entitled "Downtown Service District, Staunton, Virginia" a copy of which is on file and available for public inspection in the Office of the Clerk of Council, City Hall, 116 West Beverley Street, Staunton, Virginia.

(c) Public utility facilities in or above the public right-of-way, such as poles, lights, wires, cable, conduit, and piping shall not be included within the downtown service district or subject to the tax imposed by this Article.

(d) All parcels of land that are bisected by the downtown service district boundaries, as set out in subsection (a) of this section, are to be considered wholly included within the boundaries of said district.

(e) All real property located within the downtown service district as set out in subsection (a) of this section, used exclusively as a single family detached residence, and such other real property otherwise exempt from the payment of real estate taxes, shall not be subject to the tax imposed by this Article.

(a) Taxes collected pursuant to this Article shall be levied for and used to provide additional governmental services not being offered uniformly throughout the entire city, including, but not limited to, economic and business development and promotional activities intended to foster business retention; business recruitment and developer recruitment; physical improvements to public facilities which are unique to the downtown; planning for the development and acquisition of public spaces needed for downtown; and those public improvements enumerated in Section 15.1-18.2(C), Code of Virginia (1950), as amended.

(b) Taxes collected pursuant to this Article shall be segregated so as to enable the same to be expended only in the downtown service district in which raised.

(a) The tax program authorized by this ordinance on downtown revitalization and development shall expire on June 30, 2005, with the exception that all delinquent taxes owned to the City as a result of said tax program shall continue to be due to, and collectable by, the city and that all applicable penalties and interest shall apply.

(b) This ordinance shall be in full force and effect on and after July 1, 2000.

(c) One hundred eighty (180) days prior to the expiration of the tax program authorized by this ordinance, with said date being January 1, 2005, City Council shall initiate a review of the downtown service district created by this ordinance, and based upon the findings of said review, decide whether to continue this tax program. If Council elects to continue the program, then Council shall establish the appropriate rate of taxation.

State code references: § 58.1-3700 through § 58-1-3735; § 4.1-205; § 4.1-233

(a) Whenever a license is required herein, it shall be unlawful to engage in such business, employment, or profession without first obtaining the required license. A violation of this requirement shall constitute a Class 4 misdemeanor.

(b) No business license under this Article shall be issued until the applicant has produced satisfactory evidence that all delinquent business license, personal property, meals, transient occupancy, severance, and admissions taxes owed by the applicant (or the business) to the City of Staunton, Virginia, have been paid which have been properly assessed against the applicant (or the business) by the City.

(c) Any person, firm, corporation, partnership, or business who engages in business without obtaining a license required hereunder, or after being refused a license, shall not be relieved of the tax imposed by this Article.

(a) A license (other than a license for which the certificate of a court is required by law before it can be granted, and other than a license which the law imposing the same provides shall not be prorated), the tax on which would be $150, or $300 in the case of wholesale merchants, or more were it issued for the period of one year, may be issued for a period of less than one year, and shall expire on the thirtieth day of June or the thirty-first day of December, whichever shall happen first after it is issued, and the tax on such license shall be one-half of the tax required were the license issued for a year; provided if the time between the date of issue of the license to the end of the half-year is less than six months, the tax thereon shall be abated proportionately to the amount chargeable for six months, unless the license is of such character that no proration thereof is allowable.

(b) If the tax for one year would be $300, or $600 in the case of wholesale merchants, or more, the license may be issued for a period of less than one year and shall expire on the thirty-first day of March, the thirtieth day of June, the thirtieth day of September, or the thirty-first day of December, whichever shall happen first after it is issued, and the tax on such license shall be one-quarter of the tax required were the license issued for a year; provided if the time between the date of issue of the license to the end of the quarter year is less than three months, the tax thereon shall be abated proportionately to the amount chargeable for three months, unless the license is of such character that no proration thereof is allowable.

(a) Licenses issued under the Article, which have been paid in full, except where otherwise provided, shall be transferable to the assignees or successors in interest of any licensee, but in no event are such license taxes refundable. In no case shall any transfer of the license be legal, or valid, unless and until notice in writing of such transfer shall have been given to the Commissioner and he shall have approved said transfer in writing on said license; the said notice shall state the time of the transfer and the place of business and the name of the person to whom transferred. A fee of $5.00 shall be paid for each transfer.

(b) The license receipt or other certificates showing the payment of license taxes whenever imposed by this Article 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.

"Affiliated group" means:

"Assessment" means a determination as to the proper rate of tax, the measure to which the tax rate is applied, and ultimately the amount of tax, including additional or omitted tax, that is due. An assessment shall include a written assessment made pursuant to notice by the assessing official or a self-assessment made by a taxpayer upon the filing of a return or otherwise not pursuant to notice. Assessments shall be deemed made by an assessing official when a written notice of assessment is delivered to the taxpayer by the assessing official or an employee of the assessing official, or mailed to the taxpayer at his last known address. Self-assessments shall be deemed made when a return is filed, or if no return is required, when the tax is paid. A return filed or tax paid before the last day prescribed by ordinance for the filing or payment thereof shall be deemed to be filed or paid on the last day specified for the filing of a return or the payment of tax, as the case may be.

"Assessor" or "assessing official" means the Commissioner of Revenue of this jurisdiction.

"Base year" means the calendar year preceding the license year, except for contractors subject to the provisions of § 58.1-3715 of the Code of Virginia.

"Business" means a course of dealing which requires the time, attention and labor of the person so engaged for the purpose of earning a livelihood or profit. It implies a continuous and regular course of dealing, rather than an irregular or isolated transaction. A person may be engaged in more than one business. The following acts shall create a rebuttable presumption that a person is engaged in a business: (i) advertising or otherwise holding oneself out to the public as being engaged in a particular business; or (ii) filing tax returns, schedules, and documents that are required only of persons engaged in a trade or business.

"Contractor" shall have the meaning prescribed in §  58.1-3714.B of the Code of Virginia, as amended, whether such work is done or offered to be done by day labor, general contract, or subcontract.

"Definite place of business" means an office or a location at which occurs a regular and continuous course of dealing for thirty consecutive days or more. A definite place of business for a person engaged in business may include a location leased or otherwise obtained from another person on a temporary or seasonal basis; and real property leased to another. A person's residence shall be deemed to be a definite place of business if there is no definite place of business maintained elsewhere and the person is not licensable as a peddler or itinerant merchant.

"Financial services" means the buying, selling, handling, managing, investing, and providing of advice regarding money, credit, securities, and other investments and shall include the service for compensation by a credit agency, an investment company, a broker or dealer in securities and commodities or a security or commodity exchange, unless such service is otherwise provided for in this ordinance.

"Broker" shall means an agent of a buyer or a seller who buys or sells stocks, bonds, commodities, or services, usually on a commission basis.

"Commodity" shall mean staples such as wool, cotton, etc., which are traded on a commodity exchange and on which there is trading in futures.

"Dealer" for purposes of this ordinance shall mean any person engaged in the business of buying and selling securities for his own account, but does not include a bank, or any person insofar as he buys or sells securities for his own account, either individually or in some fiduciary capacity, but not as part of a regular business.

"Security" for purposes of this ordinance shall have the same meaning as in the Securities Act (§ 13.1-501 et seq.) of the Code of Virginia, or in similar laws of the United States regulating the sale of securities.

Those engaged in rendering financial services include, but without limitation, the following:

• Buying installment receivables
• Chattel mortgage financing
• Consumer financing
• Credit card services
• Credit Unions
• 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
• Stockbroker
• Working capital financing

"Gross receipts" means the whole, entire, total receipts attributable to the licensed privilege, without deduction, except as may be limited by the provisions of Chapter 37 of Title 58.1 of the Code of Virginia.

"License year" means the calendar year for which a license is issued for the privilege of engaging in business.

"Personal services" shall mean rendering for compensation any repair, personal, business or other services not specifically classified as "financial, real estate or professional service" under this ordinance, or rendered in any other business or occupation not specifically classified in this ordinance unless exempted from local license tax by Title 58.1 of the Code of Virginia.

"Professional services" means services performed by architects, attorneys-at-law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations, and not others, as the Virginia Department of Taxation may list in the BPOL guidelines promulgated pursuant to § 58.1-3701 of the Code of Virginia. The Department shall identify and list each 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 rather than for personal profit.

"Purchases" shall mean all goods, wares and merchandise received for sale at each definite place of business of a wholesale merchant. The term shall also include the cost of manufacture of all goods, wares and merchandise manufactured by any wholesaler or wholesale merchant and sold or offered for sale. Such merchant may elect to report the gross receipts from the sale of manufactured goods, wares and merchandise if it cannot determine or chooses not to disclose the cost of manufacture.

"Real estate services" shall mean rendering a service for compensation as lessor, buyer, seller, agent or broker and providing a real estate service, unless the service is otherwise specifically provided for in this ordinance, and such 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

"Retailer" or "Retail Merchant" shall mean any person or merchant who sells goods, wares and merchandise for use or consumption by the purchaser or for any purpose other than resale by the purchaser, but does not include sales at wholesale to institutional, commercial and industrial users.

"Services" shall mean things purchased by a customer which do not have physical characteristics, or which are not goods, wares, or merchandise.

"Wholesaler" or "Wholesale Merchant" shall mean any person or merchant who sells wares and merchandise for resale by the purchaser, including sales when the goods, wares and merchandise will be incorporated into goods and services for sale, and also includes sales to institutional, commercial, government and industrial users which, because of the quantity, price, or other terms, indicate that they are consistent with sales at wholesale.

(a) Every person engaging in the city of Staunton in any business, trade, profession, occupation or calling (collectively hereinafter "a business") as defined in this ordinance, unless otherwise exempted by law, shall apply for a license for each such business if (i) such person maintains a definite place of business in the city of Staunton; (ii) such person does not maintain a definite office anywhere but does maintain an abode in the city of Staunton, which abode for the purposes of this ordinance shall be deemed a definite place of business; or (iii) there is no definite place of business but such person operates amusement machines, is engaged as a peddler or itinerant merchant, carnival or circus, as specified in § 58.1-3717, 3718, or 3728, respectively, of the Code of Virginia, or is a contractor subject to § 58.1-3715 of the Code of Virginia, or is a public service corporation subject to § 58.1-3731 of the Code of Virginia. A separate license shall be required for each definite place of business. A person engaged in two or more businesses or professions carried on at the same place of business may elect to obtain one license for all such businesses and professions if all of the following criteria are satisfied: (i) each business or profession is licensable at the location and has satisfied any requirements imposed by state law or other provisions of the ordinances of this jurisdiction; (ii) all of the businesses or professions are subject to the same tax rate, or, if subject to different tax rates, the licensee agrees to be taxed on all businesses and professions at the highest rate; and (iii) the taxpayer agrees to supply such information as the assessor may require concerning the nature of the several businesses and their gross receipts.

(b) Each person subject to a license tax shall apply for a license prior to beginning business if he was not subject to licensing in the city of Staunton on or before January 1 of the license year, or no later than March 1 of the current license year if he had been issued a license for the preceding license year. The application shall be on forms prescribed by the assessing official.

(c) The tax shall be paid with the application in the case of any license not based on gross receipts. If the tax is measured by the gross receipts of the business, the tax shall be paid on or before March 1 of the year concerned.

(d) The assessing official may grant an extension of time, not to exceed ninety days, in which to file an application for a license, for cause. The extension shall be conditioned upon the timely payment of a reasonable estimate of the appropriate tax, subject to adjustment to the correct tax at the end of the extension, together with interest from the due date until the date paid and, if the estimate submitted with the extension is found to be unreasonable under the circumstances, a penalty of ten percent of the portion paid after the due date.

(e) A penalty of ten percent of the tax may be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due date. Only the late filing penalty shall be imposed by the assessing official if both the application and payment are late; however, both penalties may be assessed if the assessing official determines that the taxpayer has a history of noncompliance. In the case of an assessment of additional tax made by the assessing official, if the application and, if applicable, the return were made in good faith and the understatement of the tax was not due to any fraud, reckless or intentional disregard of the law by the taxpayer, there shall be no late payment penalty assessed with the additional tax. If any assessment of tax by the assessing official is not paid within thirty days, the treasurer may impose a ten percent late payment penalty. The penalties shall not be imposed, or if imposed, shall be abated by the official who assessed them, if the failure to file or pay was not the fault of the taxpayer. In order to demonstrate lack of fault, the taxpayer must show that he acted responsibly and that the failure was due to events beyond his control.

(f) Interest shall be charged on the late payment of the tax from the due date until the date paid without regard to fault or other reason for the late payment. Whenever an assessment of additional or omitted tax by the assessing official is found to be erroneous, all interest and penalty charge and collected on the amount of the assessment found to be erroneous shall be refunded together with interest on the refund from the date of payment or the due date, whichever is later. Interest shall be paid on the refund of any tax paid under this ordinance from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at the same rate charged under § 58.1-3916 of the Code of Virginia.

No interest shall accrue on an adjustment of estimated tax liability to actual liability at the conclusion of a base year. No interest shall be paid on a refund or charged on a late payment, in event of such adjustment, provided the refund or the late payment is made not more than thirty days from (i) the date of the payment that created the refund, or (ii) the due date of the tax, whichever is later.

In the case of an applicant whose license is based on gross receipts and who was not subject to licensing in the city on or before January 1 of the license year, the applicant shall pay the tax with the application based on estimated gross receipts for the balance of the calendar year of the license.

(a) General rule. Whenever the tax imposed by this ordinance is measured by gross receipts, the gross receipts included in the taxable measure shall be only those gross receipts attributed to the exercise of a licensable privilege at a definite place of business within the city of Staunton. In the case of activities conducted outside of a definite place of business such as during a visit to a customer location, the gross receipts shall be attributed to the definite place of business from which such activities are initiated, directed, or controlled. The situs of gross receipts for different classifications of business shall be attributed to one or more definite places of business or offices, as follows:

(b) Apportionment. If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts should be attributed under the general rule (and the affected jurisdictions are unable to reach an apportionment agreement), except as to circumstances set forth in § 58.1-3709 of the Code of Virginia, the gross receipts of the business shall be apportioned between the definite places of businesses on the basis of payroll. Gross receipts shall not be apportioned to a definite place of business unless some activities under the applicable general rule occurred at, or were controlled from, such definite place of business. Gross receipts attributable to a definite place of business in another jurisdiction shall not be attributed to the city of Staunton solely because the other jurisdiction does not impose a tax on the gross receipts attributable to the definite place of business in such other jurisdiction.

(c) Agreements. The assessor may enter into agreements with any other political subdivision of Virginia concerning the manner in which gross receipts shall be apportioned among definite places of business. However, the sum of the gross receipts apportioned by the agreement shall not exceed the total gross receipts attributable to all of the definite places of business affected by the agreement. Upon being notified by a taxpayer that its method of attributing gross receipts is fundamentally inconsistent with the method of one or more political subdivisions in which the taxpayer is licensed to engage in business and that the difference has, or is likely to, result in taxes on more than one hundred percent of its gross receipts from all locations in the affected jurisdictions, the assessor shall make a good faith effort to reach an apportionment agreement with the other political subdivisions involved.

(a) All nonprofit businesses which are exempt from the payment of federal taxes by the Internal Revenue Service are hereby exempt from business license taxes and fees imposed by this article. This exemption does not apply to a business endeavor conducted by such nonprofit business, the proceeds of which are taxable by the Internal Revenue Service.

(b) Those activities and business enterprises set forth in § 58.1-3703(C) of the Code of Virginia, as amended from time to time, are exempt from the license taxes or fees imposed by this Article.

(c) The license tax imposed on peddlers or itinerant merchants or on peddlers at wholesale shall not apply to those activities or businesses set forth in §  58.1-3719 of the Code of Virginia, as amended from time to time.

(d) No license tax shall be imposed upon itinerant merchant or to a peddler or to those who sell or offer for sale in person or by their employees ice, wood, charcoal, meats, milk, butter, eggs, poultry, game, vegetables, fruits or other family supplies of a perishable nature or farm products grown or produced by them and not purchased for them for sale.

(e) No license tax shall be imposed upon the sale of goods, wares and merchadise by an assignee, trustee, executor, fiduciary, officer in bankruptcy or other officer appointed by any Court of the Commonwealth or of the United States. (Ord. Of 3/26/98)

(a) A fee for the issuance of such license in the amount of $0.75; and (repealed by ordinance of 7/23/98)

(b) In addition to the license fee specified in subsection (a) above, and except as may be otherwise provided in § 58.1-3712, 58.1-3712.1 and 58.1-3713 of the Code of Virginia, every such person or business shall be assessed and required to pay annually a license tax on all the gross receipts of such persons includable as provided in this ordinance at a rate set forth below for the class of enterprise listed:

(a) For each distiller's license, One Thousand Dollars ($l,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.

(b) For each winery license, Five Hundred Dollars (500.00); for each wholesale wine distributor's license, Fifty Dollars ($50.00).

(c) For each brewery license, One Thousand Dollars ($1,000.00).

(d) For each bottler's license, Two Hundred Fifty Dollars ($250.00).

(e) For each wholesale beer license, Two Hundred Fifty Dollars ($250.00).

(f) For each wholesale druggist license, Ten Dollars ($10.00).

(g) 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, One Hundred Dollars ($100.00).

(h) For each retail on-premises beer license for a hotel, restaurant or club, and for each druggist license, Fifty Dollars ($50.00).

(i) For each banquet license, Five Dollars ($5.00).

(j) For each fruit distiller's license, One Thousand Five Hundred Dollars ($1,500.00).

(k) For each mixed beverage license as follows:

(a) Telephone companies. All persons engaged in the business of providing telephone communication in the city shall pay for the privilege an annual license tax equal to one-half of one percent of the gross receipts for such company accruing from sales to the ultimate consumer in the city.

(b) As used in this § 12-255, the term "gross receipts," in the case of telephone companies, shall not include charges for long-distance calls, and for all entities shall not include any amount not derived from the exercise of the licensed business in the ordinary course of business and as limited by § 58.1-3732 of the Code of Virginia, et seq.

(c) Telegraph companies. On every telegraph company, agent or officer thereof, the tax shall be $100.00 for the privilege of carrying on telegraph business between this and other points in the state of Virginia, except where the gross receipts amount to $3,000.00 or less, the tax shall be $60.00.

(d) Heat, light, and power and gas companies. All 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.

(e) Any public utility company engaged in retail sales shall pay the same license as required by retailers under DIVISION ONE, § 12-250.

(a) Levied; amount. Pursuant to § .58.1-3510.1 of the Code of Virginia, there is hereby assessed and imposed on every person engaged in the short-term rental business a tax of one (1) percent on the gross proceeds of such business. Such tax shall be in addition to the tax levied pursuant to § 58.1-605 of the Code of Virginia. For purposes of this section, "gross proceeds" means the total amount charged to each person for the rental of daily rental property, excluding any state and local sales tax paid pursuant to the Virginia Retail Sales and Use Tax Act.

(b) Daily Rental property; defined. For purposes of this section, "daily rental property" means all tangible personal property held for rental and owned by a person engaged in the short-term rental business, except trailers, as defined in § 46.2-100 of the Code of Virginia and other tangible personal property required to be licensed or registered with the Department of Motor Vehicles, Department of Game and Inland Fisheries, or the Department of Aviation.

(c) Short-term rental business; defined. A person is engaged in the short-term rental business if not less than eighty (80) percent of the gross rental receipts of such business in any one year are from transactions involving rental periods of ninety-two (92) consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessor. "Affiliated" for purposes of this subsection shall mean any common ownership interest in excess of five (5) percent of any officers or partners in common with the lessor and lessee. For purposes of this test, (i) any rental to a person affiliated with the lessor shall be treated as rental receipts but shall not qualify for purposes of the eighty (80) percent requirement, and (ii) any rental of personal property which also involves the provision of personal services for the operation of the personal property rental shall not be treated as gross receipts from rental. For purposes of this section, the delivery and installation of tangible personal property shall not mean operation.

(d) Taxation of rental property that is not daily rental property. Except for daily rental passenger cars, rental property that is not daily rental property shall be classified for taxation pursuant to § 58.1-3503 of the Code of Virginia.

(e) Collection, return, and remittance of tax. Every person engaged in the short-term rental business shall collect the rental tax from the lessee of the daily rental property at the time of the rental. The lessor of the daily rental property shall transmit a quarterly return to the Commissioner of Revenue, indicating the gross proceeds derived from the short-term rental business and shall remit therewith the payment of such tax as is due for the quarter. The quarterly returns and payment of tax shall be filed with the Commissioner of Revenue on or before the 20th day of each of the months of April, July, October, and January, representing, respectively, the gross proceeds and taxes collected during the preceding quarters ending March 31, June 30, September 30 and December 31. The return shall be upon such forms and setting forth such information as the Commissioner of Revenue may require, showing the amount of gross receipts and the tax required to be collected. The taxes required to be collected under this Article shall be deemed to be held in trust by the person required to collect such taxes until remitted as required in this Article.

(f) Procedure upon failure to collect, report, or remit taxes. If any person, whose duty it is so to do, shall fail or refuse to collect the tax imposed under this Article and to make, within the time provided in this article, the returns and remittances required in this article, the Commissioner or Revenue shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the Commissioner of Revenue shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect such tax and to make such return and remittance, he shall proceed to determine and assess against such person the tax, penalty, and interest provided for by this Article and shall notify such person, by registered mail, sent to his last known place of address, of the total amount of such tax, penalty, and interest, and the total amount thereof shall be payable within ten (10) days from the date of such notice. In the event such tax is not paid within ten (10) days from the date of the notice, the Treasurer shall proceed to collect same in accordance with Chapter 9 of Title 58.1 of the Code of Virginia.

(g) Penalty and interest. If any person, whose duty it is so to do, shall fail or refuse to remit to the Commissioner of Revenue the tax required to be collected and paid under this Article within the time specified in the Article, there shall be added to such tax a penalty in the amount of ten (10) percent of the tax past due or the sum of ten (10) dollars, whichever is the greater. The assessment of such penalty shall not be deemed a defense to any criminal prosecution for failing to make any return or remittance, as required in this Article. Additionally, interest on late payments of all taxes due shall be added at the rate of ten (10) percent per year. Penalty and interest for failure to pay the tax assessed pursuant to this Article shall be assessed on the first day following the day such quarterly installment payment is due.

(h) Exclusions and exemptions. No tax shall be collected or assessed on (i) rentals by the Commonwealth, any political subdivision of the Commonwealth, or the United States; or (ii) any rental of durable medical equipment, as defined in subdivision 22 of § 58-1-608 of the Code of Virginia. Additionally, all exemptions applicable in Chapter 6 of title 58.1 of the Code of Virginia (§ 58.1600 et seq.,) shall apply mutatis mutandis to the daily rental property tax.

(i) Renter's certificate of registration. Every person engaging in the business of short-term rental of tangible personal property shall file an application for a certificate of registration with the Commissioner of Revenue. The application shall be on a form prescribed by the Commissioner of Revenue and shall set forth the name under which the applicant intends to operate the rental business, the location, and such other information as the Commissioner may require.

Each applicant shall sign the application as owner of the rental business. If the rental business is owned by an association, partnership, or corporation, the application shall be signed by a member, partner, executive officer, or other personal specifically authorized by the association, partnership, or corporation to sign.

Upon approval of the application by the Commissioner of Revenue, a certificate of registration shall be issued. The certificate shall be conspicuously displayed at all times at the place of business for which it is issued.

The certificate is not assignable and shall be valid only for the person in whose name it has been issued and the place of business designated.

(j) Criminal penalties for violation of Article. Any person violating or failing to comply with any provision of this Article shall be guilty of a Class 3 misdemeanor. Provided, however, if the amount of tax due and unpaid for any quarterly installment exceeds $1,000.00, any person failing to remit payment when due shall be guilty of a Class 1 misdemeanor.

(k) License tax provisions. Every person engaged in the short-term rental business as defined herein shall be classified in the category of retail sales and shall pay a license tax equal to that imposed on merchants, retail at the rate of twenty cents ($0.20) per one hundred dollars ($100.00) of gross receipts, as defined herein.

(a) Any person, firm, or corporation, prior to advertising or conducting a sale for the purpose of discontinuing a retail business, or to modify the word "sale" in any advertisement with the words "going out of business" or any other words which tend to insinuate that the retail business is to be discontinued and the merchandise liquidated, shall obtain a permit to conduct such sale from the Commissioner of Revenue for the City of Staunton, Virginia, if said sale or any portion thereof is to be conducted within the City of Staunton, Virginia.

(b) All applications for special sale permits required hereunder shall be accompanied by an inventory, including the kind and quantity of all goods which are to be offered for sale during the sale, and only the goods specified in the inventory list may be advertised at a reduced price or sold at a reduced price during the sale period. Goods not included on the inventory of special sale goods shall not be commingled with or added to the special sale goods.

Each special sale permit issued hereunder shall be valid for a period no longer than sixty days, and any extension of that time shall constitute a new special sale and shall require an additional permit and inventory. A maximum of two additional permits beyond the initial sixty (60) day permit shall be granted upon application by the seller, solely for the purpose of liquidating only those goods contained in the initial inventory list and which remain unsold.

Any person, firm, or corporation who advertises such sale shall be conspicuously include in the advertisement the permit number assigned for the sale by the Commissioner of Revenue for the City of Staunton and the effective dates of the sale, as authorized in the permit.

(c) Upon the issuance of such permit, the Commissioner of Revenue for the City of Staunton shall collect a fee to be paid by the applicant in the amount of $65.00 for each permit issued hereunder. Such permit fee is an addition to, and not in lieu of, any other applicable taxes or fees set forth in Section I hereof. (Ord. of 11/14/96)