§ 10-5.5. Computation of tax based on gross receipts.

(a)

Whenever this article levies a privilege license tax computed on the basis of gross receipts, gross receipts means the amount reported as gross receipts on a business' state income tax return or on the federal income tax return filed with the state income tax return if the state return does not separately state gross receipts for the most recently completed tax year. It shall be the duty of a person applying for the license to render to the revenue collector or his designee a sworn statement of such gross receipts during the preceding year.

(b)

If a business has not been in operation long enough for the information required in subsection (a) of this section to be available, the revenue collector shall estimate gross receipts for the business on the basis of gross receipts of comparable businesses or any other information the revenue collector considers useful. On or before July 31 immediately after the license year, each licensee who paid the tax for the past license year based on estimated gross receipts shall submit to the revenue collector a sworn final report showing the amount of gross receipts for the license year.

(c)

If the amount shown is more than the estimated gross receipts, the licensee shall pay the amount of the additional tax that would have been due had the estimate been accurate. If the payment shown is less than the estimated gross receipts, the town shall refund to the licensee the difference between the actual tax paid and the amount of tax that would have been due had the estimate been accurate.

(d)

If a business conducts multiple business activities, with some falling under schedule B or C (both with flat taxes) and others falling under schedule D (gross receipts), the business may either:

Purchase several licenses based on the various methods outlined; or

Purchase one privilege license based on the total gross receipts of all business activities.

(e)

It will be the decision of the business to choose the second option, the first option being the default. The licensee, however, may be subject to additional license taxes that the state authorizes the town to levy, depending on the licensee's business, and for which a separate license must be purchased.

(f)

All affidavits or other proof of gross receipts furnished to the revenue collector or his designee pursuant to subsection (b) of this section shall remain privileged and confidential and shall not be disclosed.

(Ord. No. 2001-04-09/O-5, § I)