§ 10-19. Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Administrative fee means a component of an occupation tax which approximates the reasonable cost of handling and processing the occupation tax.

Dominant line means the type of business, within a multiple-line business, from which the greatest amount of income is derived.

Employee means an individual whose work is performed under the direction and supervision of the employer and whose employer withholds FICA, federal income tax, or state income tax from such individual's compensation or whose employer issues to such individual, for purposes of documenting compensation, a form IRS W-2, but not a form IRS 1099.

Gross receipts.

(1)

The term "gross receipts" means the total revenue of the business or practitioner for the period, including, without limitation to, the following:

a.

Total income without deduction for the cost of goods or expenses incurred;

b.

Gain from trading in stocks, bonds, capital assets, or instruments of indebtedness;

c.

Proceeds from commissions on the sale of property, goods, or services;

d.

Proceeds from fees for services rendered; and

e.

Proceeds from rent, interest, royalty, or dividend income.

(2)

The term "gross receipts" does not include the following:

a.

Sales, use, or excise tax;

b.

Sales returns, allowances, and discounts;

c.

Inter-organizational sales or transfers between or among the units of a parent-subsidiary controlled group of corporations as defined by 26 USC 1563(a)(1), or between or among the units of a brother-sister controlled group of corporations as defined by 26 USC 1563(a)(2); or between or among wholly owned partnerships or other wholly owned entitles;

d.

Payments made to a subcontractor or an independent agent;

e.

Governmental and foundation grants, charitable contributions, or the interest income derived from such funds received by a nonprofit organization which employs salaried practitioners otherwise covered by this article, if such funds constitute 80 percent or more of the organization's receipts; and

f.

Proceeds from sales to customers outside the state.

Location or office includes any structure or vehicle where a business, profession, or occupation in conducted, but shall not include a temporary or construction work site which serves a single customer or project or a vehicle used for sales or delivery by a business or practitioner of a profession or occupation which has a location or office.

Occupation tax means a tax levied on persons, partnerships, corporations, or other entities for engaging in an occupation, profession, or business for revenue raising purposes.

Parttime employees shall be computed on a 40-hour basis. For example, two parttime employees with 20 hours apiece shall be computed as one employee for the purpose of this article. Four employees with 30 hours apiece shall be computed as three employees (four employees at 30 hours equals a total of 120 hours divided by 40 hours equals three equivalent employees).

Person includes sole proprietors, corporations, partnerships, nonprofit, or any other form of business organization, but specifically excludes charitable nonprofit organizations which utilize 100 percent of their proceeds for charitable purposes.

Practitioner of profession or occupation means one who is required by state law to have state license regulating such profession or occupation.

Practitioners of professions and occupations shall not include a practitioner who is an employee of a business, if the business pays an occupation tax.

Regulatory fees means payments, whether designated as license fees, permit fees, or by another name, which are required by a local government as an exercise of its police power and as a part of or an aid to regulation of an occupation, profession, or business. The amount of a regulatory fee shall approximate the reasonable cost of the actual regulatory activity performed by the city. A regulatory fee may not include an administrative fee. Development impact fees as defined by O.C.G.A. § 36-71-2(8) or other costs or conditions of zoning or land development are not regulatory fees.

(Ord. No. OA-2011-05, 6-6-2011)