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AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 14 (LICENSES) • SECTION 14-24 (TAX INCENTIVES FOR TECHNOLOGY BUSINESSES) OF THE CODE OF THE CITY OF CHARLOTTESVILLE (1990), AS AMENDED, TO REAUTHORIZE THE TECHNOLOGY ZONE TAX PROGRAM AND TO LIMIT THE NUMBER OF YEARS IN WHICH A QUALIFIED TECHNOLOGY BUSINESS MAY PARTICIPATE IN THE INCENTIVE PROGRAM BE IT ORDAINED by the Charlottesville City Council that Section 14-24 of the Charlottesville City Code, 1990, as amended, is hereby amended and reordained as follows: Sec. 14-24. Tax incentives for technology businesses. (a) A "qualified technology business" is a business which meets each of the following criteria: (1)The business must constitute a "technology business," as that term is defined within City Code Chapter 2, Article XIV; (2)The business must not be operating under a certificate of public convenience issued by the Virginia State Corporation Commission; (3)The business must not be engaged in the provision of a "utility service" as that term is defined within section 30-221 of the City Code; (4)The business must certify that it expects to be engaged in a technology business throughout the tax year for which a reduction is sought (or, for new technology businesses which had not commenced doing business as of • January 1 of the tax year for which application is made, for the balance of the tax year); and (5)The business must have submitted an application for qualification to the commissioner of revenue, on or before March 1 st of the tax year for which a reduction of taxes is sought under this section. A separate application shall be required for each tax year. A business seeking to obtain a reduction of taxes under this section shall have the burden of demonstrating, to the satisfaction of the commissioner, that it meets the definition of a technology business and that it meets all applicable criteria for a reduction. (b)The following incentives, in the form of reduction of taxes owed, shall be available to qualified technology businesses: (1)For a qualified technology business whose gross receipts from a technology business subject to licensure are fifty thousand dollars ($50,000.00) or less, any license fee which would otherwise be required by this chapter shall be reduced by one hundred (140) percent (100%). (2)A qualified technology business whose gross receipts from a technology business subject to licensure are more than $50,000 shall receive a fifty (30) -percent 50% reduction of any taxes owed pursuant to this chapter. Where a qualified technology business' license tax is determined pursuant to section 14-13(c) of this chapter, themi commissioner shall deterne the appropriate reduction based on the actual tax owed by the business for a tax year, as may be corrected by the commissioner. (c) Except as otherwise specifically provided, nothing set forth within this section shall affect a qualified technology business's status or classification for tax purposes, its obligation to report gross receipts and to file tax returns, or to pay any license issuance fees or local taxes under this chapter. Nothing contained in this section shall relieve any qualificd technology business from its obligation to comply with the requirements of section 14-11; or any other section,—of this • chapter.