Do the Changes in the Privilege License Tax Impact Your Business?

On May 29, 2014, the North Carolina General Assembly passed, and the Governor signed, a law that impacted privilege licenses taxes in North Carolina. Will those changes impact your business?

What businesses are required to pay the Privilege License Tax?
Businesses located and operating within a municipality or county are now subject to Privilege License Tax. The legislature has exempted businesses located outside of the City or County corporate limits from tax liability.

How did the legislative changes to the Privilege License Tax affect the current billing cycle?
Due to the timing of the legislative changes, billing for the 2014-2015 tax year was delayed from mid-May until late June. Charlotte City Council and Mecklenburg County Board of Commissioners moved the due date for the current billing cycle by 30 days to July 31. Payments made on or after August 1, 2014 are delinquent.

Do businesses have to pay this tax next year?
No. The legislation repealed the authority of a city and county to levy future privilege license taxes beginning with the 2015-2016 tax year. As a result, this is the last year the privilege license tax will be levied.

Will the Office of the Tax Collector continue to discover and collect delinquent taxes?
Yes. The Tax Collector will continue to conduct audits and collect delinquent taxes from prior years beyond the current billing cycle.

Should you have any questions or require additional information, please contact CharMeck 311 by dialing 311 from within Mecklenburg County
or 704-336-7600 from outside of Mecklenburg County or email us at taxbusiness@MecklenburgCountyNC.gov