Durham, NC Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Application deadline
- 30 days before tax due date
- Standard license period
- July 1 – June 30 annually
- Beer/wine license period
- May 1 – April 30 annually
- Late penalty
- 5% added every 30 days unpaid
- Enforcement tool
- Civil injunction under Sec. 30-233
Summary
Durham levies an annual privilege license tax on every business conducted in the city, classified by trade under Chapter 30's Divisions 5 and 6, with the same tax owed by businesses operating within one mile of the corporate limits. The tax collector issues, refuses, or revokes licenses under specific statutory grounds.
An annual privilege license tax is hereby levied on each business conducted within the city listed in divisions 5 and 6, in the amounts set forth in those divisions. When business is conducted or privilege exercised within one mile of the corporate limits of the city, the same tax shall be imposed and collected as if the business conducted or the privilege exercised were inside the corporate limits of the city. ... A person shall apply to the tax collector for each license required by this article no less than 30 days before the date the tax is due. ... The tax collector shall refuse to issue a license or shall revoke a license for either of the following reasons: (1) The applicant misrepresents a fact relevant to the amount of tax due or his or her qualifications for a license; or (2) The applicant refuses to provide information necessary to compute the amount of tax due.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 36).
Full Breakdown
Before opening for business, an operator must apply to the tax collector at least 30 days before the tax is due, per Sec. 30-180, most licenses run July 1 through June 30, while beer and wine licenses run May 1 through April 30 (Sec. 30-143). ch. 93B. The tax collector may refuse or revoke a license under Sec. 30-181 only for misrepresenting a fact relevant to the tax owed or refusing to supply information needed to compute it; a refused or revoked applicant has ten days to request a conference under Sec.
30-182 or Sec. 30-185. A separate license and tax are required for each place of business unless contiguous, commonly-owned locations operate as a single unit (Sec. 30-146). When the tax depends on gross receipts, the applicant must submit a sworn statement of the prior year's sales, with a true-up settlement due by July 30 following any year the collector had to estimate receipts (Sec. 30-147). Charitable, religious, civic, or fraternal organizations whose entire income funds those purposes are exempt from the tax, though they must still obtain a license marked exempt (Sec.
30-148). Division 5 classifications track the old state revenue-law categories, amusements, pawnbrokers, peddlers, loan agencies, firearms dealers, and more, while Division 6 covers categories not identical to the county's provisions.
Violations & Fines
Conducting or continuing a taxed business without paying the privilege license tax adds a penalty of five percent of the tax every 30 days under Sec. 30-232(b). The city may also seek a civil injunction against anyone conducting business in violation of the article under Sec. 30-233. A license refusal or revocation follows written notice from the tax collector, and the applicant or licensee may request a conference within ten days to contest it.
Frequently Asked Questions
Does Durham require a business license for every company operating in the city?
How far in advance must I apply for a Durham privilege license?
Can Durham refuse or revoke my business license?
Sources & Official References
Other rules in Durham
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