§ 9-1-11. Exemptions.

(a)

Notwithstanding any provision of this chapter to the contrary, the license tax levied in accordance with this chapter shall not be imposed upon the following businesses:

(1)

those exempt from the license tax under section 58.1-3703(C) of the Code of Virginia (1950), as amended;

(2)

except as otherwise provided in subsection (c) of this section, those owned by charitable nonprofit organizations which, for the purposes of this subsection are organizations qualified by the Internal Revenue Service under Internal Revenue Code § 501(c);

(3)

those engaged in research and development; and

(4)

those with gross receipts totaling less than $10,000 for the entire tax year.

(b)

Any bona fide religious, charitable, benevolent or civic organization, or any group of responsible citizens of the city, desiring to hold a dance where an admission fee is required or where a charge is made for dancing, to hold a breakfast, lunch, dinner or supper for which a charge is made or to hold a rummage sale or bake sale, may through a member representative apply to the director for exemption from taxes under this chapter. After such proof as may be necessary, and upon being satisfied as to the character and nature of the applicant and the event, the director shall exempt the applicant from the license requirement and license tax otherwise imposed, so long as all of the fees or proceeds from the event are devoted to and used for bona fide religious, charitable or benevolent purposes, or, in the case of a dance, breakfast, lunch, dinner or supper, no profit is expected.

(c)

The exemption granted by subsection (a)(2) shall not apply to any business owned or operated by a charitable nonprofit organization, the conduct of which is not substantially related to the exercise or performance of the organization's charitable, educational, or other purpose or function constituting the basis for its exemption. The determination of whether a business is substantially related to the exempt purpose or function of a charitable nonprofit organization shall be based solely on the relationship of the business activities to the exempt purpose or function, and the fact that revenue derived from the business may be used for an exempt purpose shall not be considered.

(d)

The director shall determine whether a business is exempt under the provisions of this section and whether any portion of the gross receipts of an otherwise exempt entity is not exempt under subsection (c).

(e)

The provisions of this section shall not relieve any person of the duty to comply with section 9-1-5. (Ord. No. 3542, 11/16/91, Sec. 3; Ord. No. 3834, 11/18/95, Sec. 2; Ord. No. 3870, 6/15/96, Sec. 1; Ord. No. 4005, 6/13/98, Sec. 4)