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JUly 27, 1992 <br /> <br />I CAB ,R US COUNflr I <br /> <br />Ms. Carolyn Carpenter <br />chairperson <br />Cabarrus County Board of Commissioners <br />P. O. Box 707 <br />Concord, North Carolina 28026-0707 <br /> <br />Re: Privilege License Ordinance <br /> Approved May 18, 1992 <br /> <br />Dear Carol: <br /> <br />As requested by you, Ken Payne, and Billy Hamby, I will briefly <br />comment on the unfairness of the privilege license tax levied at <br />the county level. <br /> <br />The privilege license tax may serve two(2) purposes: (1) Raising <br />revenue (major purpose), and (2) regulating some or all of the <br />businesses taxed. Revenue is nominal in Cabarrus County (estimated <br />for budget purposes at $18,000.) considering the inequities that <br />exist. Although an excellent source of revenue for the state and <br />cities, counties, by General Statutes, are either limited or <br />prohibited from taxing businesses that both the state and city has <br />authorization to tax. Some examples of business activities that may <br />be taxed by the state and cities and not by counties are as <br />follows: Motels, restaurants, day-care centers, barbershops, beauty <br />parlors, dry-cleaners, and plumbing, heating and electrical <br />contractors. <br /> <br />Also, to add to the unfairness of the tax, some businesses do not <br />pay a city or county license fee. Attorneys, physicians, real <br />estate brokers, and accountants are a few professions that are <br />exempt. In addition, banks and savings and loan associations are <br />exempt from taxation. <br /> <br />The most difficult part (including enforcement), regarding the <br />ad/ninistration of above caption, is trying to explain why some <br />businesses are required to pay at three(3) levels (state, city, and <br />county), some at (2) levels (state and city), and some not at all. <br />This requirement, of course, is mandated by legislation and is not <br />easily explained. In my reading of the third edition, North <br />Carolina City and Co,,nty Privilege License Taxes, one statement' <br />expresses my exact feelings. "Those who administer the privilege <br />license tax must resign themselves to its many inequities and <br /> <br /> Office of Count), Assessor <br />Box 707 · Concord, NC 28026-0707 ,, (704) 788-8166 · Fax (70zl) 788-8146 <br /> <br /> <br />