Privilege Licenses

Frequently Asked Questions

What is a privilege license?
North Carolina General Statutes allow municipalities to charge commercial businesses and industries a license fee for the privilege of operating a business inside the City limits. The license fees must be reasonable in amount and in many cases cannot exceeds limits set by the State Statute.

Does my business have to purchase a privilege license?
It depends. A privilege license is required for all businesses that operate or provide goods and services within the City limits unless your business is exempted by the State Statutes.

Which businesses are exempt?
In general, businesses that require a professional license from the State of North Carolina are exempt. This would include doctors, lawyers, certified public accountants, architects, engineers, real estate agents and other licensed professionals. Also, farmers who sell crops, which they or their family raised, are exempt. Persons selling crafts or other items, which they or their household produced, are likewise exempt.

There are numerous other exemptions, which are listed in the City's Code of Ordinances and the North Carolina General Statutes.

Are Non Profit Organizations exempt from privilege licenses?
Yes, under certain conditions. Non-profit organizations are exempt from purchasing privilege licenses for one time or annual fundraising events or other activities directly related to their tax-exempt purpose. However, such organizations are not exempt for ongoing business activities, which compete with other local merchants, or activities that are unrelated to their tax exempt purpose. Please contact the City's Finance Department at (336) 599-3116 if your non-profit organization is unsure whether a license is required for a certain activity.

My business is located in the County. Do I need a privilege license?
Yes, if your business provides services or delivers goods within the City limits, you are required to obtain a privilege license even though your office is located in the County. If all goods and services are sold or provided outside the City limits, no privilege license is required.

When should I purchase a privilege license for my business?
If a privilege license is required, it must be purchased from the City prior to the opening of your business. Also, the City must verify that your business complies with other City ordinances such as zoning ordinances and fire codes. Therefore, the Police, Fire, and Planning and Zoning Departments must sign off on your privilege license application before the Finance Department can issue the license. Please allow at least two weeks to complete the application process prior to opening your business.

Where can I obtain a privilege license application?
Please call Sheila Pyles at the City's Finance Department at (336) 599-3116 to request a privilege license application. Sheila will mail the application to your address.
Please return the completed application to:
City of Roxboro
Finance Department
P. O. Box 128
Roxboro, NC 27573

You may also pick up and return privilege license applications at the Roxboro Municipal Building located at 105 South Lamar Street. Business hours are Monday-Friday from 8:00am - 5:00pm. Privilege license application are printable by following this link Privilege License Application and Rate Schedule

How much is the fee for privilege licenses?
The amount of the license fee varies depending upon the type of business. A schedule of privilege license fees is included in the City's annual budget ordinance each year and is also attached to each application.

If I operate more than 1 business, am I required to buy a license for each business?
Yes. You must purchase a license for each separate business location within the City limits. If you operate several businesses from 1 location, you are still required to purchase licenses for each activity unless the activity is exempt.

What period of time is covered by a privilege license?
All privilege licenses, except beer and wine, are for the City's fiscal year beginning July 1 and ending June 30 of the following year. For beer and wine licenses, the period covered is May 1 to April 30 of the following year. The City mails renewal notices for privilege licenses to all business within the City in June of each year. Renewals for beer and wine licenses are mailed in April each year.

When is the privilege license fee due?
For new businesses, the fee is due prior to opening your business. For annual renewals of privilege licenses, the fee is due on or before July 1. For beer and wine licenses, fee are due on or before May 1. The City assesses late payment charges and interest for past due privilege licenses on August 1 of each year.

If my business opens during the year, can my license fee be reduced or pro-rated during the first year?
Yes. Any business, which opens after January 1, is only required to pay one-half of the normal license fees. The license for the first year will expire on June 30. However, the City does not reduce or pro-rate license fees for businesses which open prior to December 31.

My business is seasonal and only operates for part of the year. Do I have to pay for a license for the entire year?
No. A business that is seasonal by nature can also buy a privilege license for one-half of the normal fee. A business is seasonal by nature if it can only operate for less than six months during the year. Examples of seasonal businesses are a ski lodge, which can only operate in winter, and the sale of Christmas trees and ornaments, which can only operate during Christmas. A business that simply chooses to operate for less than 6 months is not considered to be seasonal by nature.

If my business closes during the year, am I entitled to a refund of part of my privilege license?
No. Privilege licenses are assessed for all businesses, which are in operation on July 1 of each year, except those, which are exempted. Although, the license period covers 1 year until the following June 30, businesses cannot get a refund due to closing during the year. If you conduct a going out of business sale, you may also have to purchase an additional license.

What is a going out of business license?
A going out of business license is required for businesses that conduct a final closing sale to liquidate all existing inventory. The license is issued for a period of 30 days. If the closing sale lasts more than 30 days, the business is required to purchase an additional license for each 30-day period. No license is required if you simply close your business without any final liquidation sale to the public. Contact the City Clerk at 336-599-3116 x 228 for assistance in closing a business.

Why do I have to buy a license to conduct a going out of business sale?
The license is required to assist the City in preventing unfair competition by merchants that carry on continuous going out of business sales that never end. This practice is considered to be deceptive advertising and unfair competition for other merchants. The license also assists the City in preventing unscrupulous merchants from selling inferior products to the public during a so-called liquidation sale and then leaving town with their customers money.

What is required for a going out of business license?

 The City Clerk will issue a license, upon the payment of a fee of $50.00, together with a bond, payable to the City in the penal sum of $500.00 and a list of existing inventory to be sold.  The license covers a period of only 30 days.  Licenses for additional 30-day periods can be issued if all merchandise has not been sold during the initial 30-day sale.  Only inventory existing at the beginning of the sale is allowed. No additional merchandise can be purchased to prolong the sale.  The bond will be returned at the conclusion of the liquidation sale.

Can I avoid paying the $500 bond?
Yes. If your business has been in operation for at least 12 months at the same location, the $500 bond requirement is waived.