Businesses flood NC with requests to be deemed essential. Most got their way.

When Gov. Roy Cooper issued his stay-at-home-order on March 27, businesses that were not considered essential during the novel coronavirus crisis had to close. But there was a loophole.

Businesses could ask the state Department of Revenue to rule that their individual companies were essential. Thousands asked for this, and most got their way.

Out of roughly 4,000 applicants through April 7, about 85% were granted a waiver and deemed essential, an Observer analysis of department data found.

Many of those applicants were cleaning, construction, home improvement or pet care businesses, data show. Six tobacco and vape shops also were granted essential status.

Another 13%, or about 500 businesses, were deemed not essential but still allowed to stay open as long as they follow social distance requirements. This includes more than 100 additional tobacco shops, as well as florists, churches and gift shops, according to the Observer analysis.

The state also granted a partial exemption to a paintball field, video game stores, mattress shops and about a dozen jewelers.

North Carolina told about 1% of the applicants that they could not operate under the governor’s executive order. Salons and fitness studios comprised many of these denials.

In determining whether a business is essential, the Revenue Department only considers criteria established by the stay-at-home order, and determines whether a place is able to continue operating on a business-by-business basis, agency spokesman Schorr Johnson said.

Not all businesses need to seek an exemption from the state to remain open, Johnson said. Any type of businesses not listed on the stay-at-home order among the 30 essential categories may stay open if social distancing requirements are followed and there are not stronger local restrictions in place.

The exemption is unavailable for those that had to close, such as salons, gyms, malls, movie theaters and restaurants not offering take-out, Johnson said.

Businesses that remain open must: maintain at least six feet distancing between people; employees must wash hands using soap and water for 20 seconds as frequently as possible or use hand sanitizer; regularly clean high-touch surfaces; and facilitate online or remote access by customers if possible.

Cooper also recently increased social distancing requirements for retailers that went in effect Monday.

Lazy 5 Ranch

Also receiving a partial exemption was the Lazy 5 Ranch in Mooresville. On a recent weekend, the lines were so long to get in that police had to help direct traffic.

The scene at the ranch bothered Rachael Armstrong of Charlotte, who owns Freedom Massage. Her business, along with gyms, movie theaters and nail salons, were ordered to close March 23 by Cooper.

“I’m a small business owner and I’m not sure why (Lazy 5 is) called an essential business,” she said. “If people don’t follow these orders, it’s going to be a disaster for our health and our economy.”

Iredell County, where Lazy 5 Ranch is based, does not have its own stay-at-home order, according to the county website.

Ranch owner Henry Hampton said he is following the state’s order. His business, though deemed not essential, is following social distancing .requirements. The park, with its domestic and exotic animals from six continents, has closed operations like the gift shop and snacks shop, allowing drive-thru only.

Hampton said restrooms are sanitized by a worker every 20 minutes or between guests. The only other point of contact is payment at the gate, and that employee must clean their hands between each transaction.

“What we did and do is everything to mitigate any risk we possibly could, beyond what they asked us to,” Hampton said.

He also said each animal feed bucket is washed and disinfected between customers.

Hampton said his zoo helps alleviate the stress that comes with more than a month of isolation. “Even with the long lines and people having to wait, I’ve never seen them as happy and glad to do something they normally enjoy doing with their family,” Hampton said.

Tobacco and vape shops

The Department of Revenue deemed six tobacco and vape shops as essential businesses, according to state data. Department officials said more than 100 other such shops were not essential but allowed them to remain open.

Among the handful deemed essential was a store in Indian Trail, just a few miles from the Mecklenburg County line.

While that shop operates in Union County, similar businesses are not able to stay open in Mecklenburg. On April 9, Mecklenburg County said “Vape shops are not considered essential ... All sales are prohibited unless they can be conducted virtually.”

Local government orders like in Mecklenburg’s take precedence over the state’s order, unless the state order is stricter, officials say.

In addition to Five Stars Tobacco & Vape in Indian Trail, the other tobacco shops still operating are: US Tobacco in Spring Lake; Mr. Tobacco & Vape in Raleigh; Tobacco World in Hickory; Tony’s Tobacco 132 Shop in Nashville.; and D&C Tobacco and Vape in Burlington.

Johnson, the revenue department spokesman, said tobacco stores are not an essential business. However, “a business that sells tobacco may sell other products, such as food, that may, when examining a business as a whole, render the establishment essential.”

Kelly Haight Connor, a spokeswoman for the N.C. Department of Health and Human Services, said essential businesses also must implement social distancing practices. While tobacco stores aren’t deemed essential, liquor stores are.

“People need to stay home as much as possible,” Connor said. She said while restaurants, bars and other areas of communal gathering must be closed, “people should be able to buy items used in their day to day lives.”

Antique shop reverses plans

One local business planned to reopen this month, then reversed course after people criticized the idea on social media. Instead, the store added online shopping.

Sleepy Poet antique shop, with locations in Charlotte and Gastonia, was deemed non-essential by the state. But state officials said it could open following social distancing requirements.

A Facebook post with the letter from the Revenue Department said the stores would reopen earlier this month. A later post said: “per customer request ... we are not opening at this time ... Thanks.”

The store owner declined to comment about the decision.

Violations

Also this month, Charlotte Mecklenburg Police Department issued its first citation to a business found in violation of the coronavirus restrictions. Cool Cave Day Spa, a massage parlor and day spa, continued to operate despite the county’s order for non-essential businesses to close, police said.

Since then, three other businesses were cited by CMPD. A violation of state or county stay-at-home orders is a misdemeanor enforced by local law enforcement.

Mecklenburg County’s stay-at-home order states: “All businesses and operations in the county, except essential businesses and operations, are to cease all activities within the county except minimum basic operations. Businesses may continue operations consisting exclusively of employees or contractors performing activities at their own residences.”

Both the state and county orders are effective through April 29.

How to seek exemptions

Businesses can make requests online at ncdor.gov.

Of the roughly 4,000 requests, about 100 were from Charlotte businesses.

Among the required information is a brief explanation of why a business should be designated as essential. Revenue Secretary Ronald Penny, with assistance from legal and professional staff, makes the decision within a few days, Johnson said.

Wilmington leads all cities with an exemption to the governor’s order. Nearly 120 Wilmington businesses were considered essential, followed by Charlotte with 83.

This story was originally published April 17, 2020 at 7:45 AM with the headline "Businesses flood NC with requests to be deemed essential. Most got their way.."