My county, Albemarle County, VA, started enforcing their business license last fall. It was annoying that I pay for a CPA to do my taxes and neither one informed me of the license and tax requirements to do business in Albemarle county.
Albemarle's law looks just like Myrtle Beaches - it applies to all businesses - but the only crack-down I've heard of is on musicians! All of the musicians who file got hit with the requirement to get a license if they made between $5000 and $100,000. The license only costs $50 though. There is also a tax on business equipment for everybody, no matter how much or little you make. Over $100,000 and you pay extra based on how much business you actually do. My wife is self-employed and they did not target her with a letter, just me! They made me pay for back licenses and pay back taxes. Now I regret letting the accountant depreciate my amp purchases from a few years ago.
Anyway I don't make over $5k/yr in music, so I don't need a license. But I *do* have to pay tax on my equipment. If I ever use any piece of gear, even once, at a gig, it is taxable. The phrase was if it is used even 1% for business, it is business equipment.
Now I need to know what I paid for each thing and when I bought it. I am not sure I kept accurate records for all of it; I never intended my pedals to be part of the business, I always considered them personal items. Like a guy who uses a nice pen his family bought him for Christmas in his business - but they're saying no, if you use it at all it is taxable. The county is kind enough to depreciate the gear for me on some schedule of their own and send me a bill.
But now I am worried if this will affect how my homeowners insurance protects my gear from fire and theft while stored in my house. My insurance agent told me a few years ago that it would be covered as long as it is in the house, or in my car in the driveway or garage of my house. But now that the county is depreciating the value of my gear to 0, how much is it insured for?
So anyway they're definitely going after musicians for the most part - why, I don't know. We don't make that much money! It's not like this is going to add a lot to the county's coffers.