February 28, 2006

MECKLENBURG COUNTY TO BEGIN COLLECTING NEW MAXIMUM AMOUNT FOR BUSINESS LICENSES  

Charlotte, NC – About 1,300 businesses in the City of Charlotte will be affected by a new maximum business license tax. This year, the Mecklenburg County Tax Collector will begin collecting a maximum tax of $10,000 from businesses required to purchase a business privilege license. 

The new maximum tax was set by the Charlotte City Council to go into effect in 2006. The previous maximum of $2,000 was adopted in 1988. Notices to the 1,300 businesses likely to be affected were mailed on Friday, February 24. 

Business licenses are authorized by the State of North Carolina and are considered a license for the privilege to do business within a local tax jurisdiction.  Businesses are required to renew their business license annually by July 1 of each year (with the exception of taxi cab drivers and beer/wine licenses).  Renewal forms will be mailed in May. 

The current rate is based on a business's estimated gross receipts at a rate of $0.60 per $1,000 to a maximum of $2,000. Beginning this year, the maximum in Charlotte goes up to $10,000. 

This ordinance change only affects those businesses that are required to pay the business license tax based upon gross receipts and the "Miscellaneous" category.  Those businesses that pay in accordance with a restricted State schedule are not affected by this ordinance.  Visit http://tax.charmeck.org and select "business/privilege license" for additional information.

Questions? Business owners can call the Business Tax Collections Office at 704-336-6315 or email btcinfo@co.mecklenburg.nc.us.