MSI Chamber Legislative Committee Meeting

We hope you will be able to attend. 

About the Gross Receipts Tax

A privilege license is an excise tax, levied on the privilege of conducting a trade or business in a city or county.  Anyone conducting business in our city, whether home-based or at another location; sole proprietorship, partnership, LLC or corporation; full time or part time; regardless of size will pay on gross receipts, not net.

The term gross receipts shall mean all earnings, receipts, fees, rentals, commissions, broker’s charges and income whatsoever arising from or growing out of the conduct of the business.  Fees vary depending on the type of business.  Most businesses are charged a rate of $.60 per $1,000.  A minimum tax is $50.

A new business would be required to give a good-faith 12 month estimate on what the business may do.  Small businesses pay based on their sales while larger companies pay a larger amount for their sales/receipts.

Cities have broad authority pursuant to NCGS 160A-211 to impose privilege license taxes on any business conducted inside the city, except businesses limited or prohibited by the State Statute.  The vote by the Mooresville Town Board on this gross receipts tax will take place on August 4, 2008.