Chapter 5.04 BUSINESS LICENSES GENERALLY

A. “Average number of persons employed” shall be determined by ascertaining the total number of hours of service performed by all employees of applicant within the City during the previous calendar year, and dividing the total number of hours of service thus obtained by the number of hours of service constituting a year’s work of one full-time employee according to the custom or laws governing such employment. In computing the average number of persons employed, a fraction of one-half or more of the customary or equal annual full-time employee hours shall be considered as one additional employee. “Persons employed” includes proprietors and persons who have an interest in the business as well as relatives and members of the family who render services. An individual, relative, or employee who furnishes only occasional services to a business, shall not be included in the computation of average number of individuals employed or engaged as specified in this chapter. For the purposes of this chapter, an individual furnishing occasional services is an individual who is employed or engaged in the business no more than 400 hours in a calendar year.

B. “Business” shall mean professions, trades, and occupations and all and every kind of calling whether or not carried on for profit.

C. “Collector” as used in this chapter shall be deemed to be the person(s) directed to administer this chapter by the Council.

D. “Gross receipts” shall mean the total amount of the sale price of all sales and the total amount charged or received for the performance of any act, service, employment or product of whatever nature, for which a charge is made or credit allowed, whether or not such service, act, employment or product is done or produced as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature, and any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of the material used, labor or service costs, interest paid or payable, the cost of transportation of the property prior to its purchase, or losses or other expenses. Excluded from gross receipts shall be cash discounts allowed and taken on sales; any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; and such part of the sale price of property returned by purchaser upon rescission of the contract of sale as is refunded either in cash or by credit. (Ord. 386 § 3, 1982; Ord. 342 § 1, 1978; prior code § 5.1-13).

5.04.020 License and tax payment – Required.

A. There are imposed upon the businesses specified in this chapter license taxes in the amounts as set forth by resolution.

B. It is unlawful for any person to transact and carry on any business in the City without first having paid the tax prescribed in this chapter and/or procuring the license provided for in this chapter, or without complying with any and all applicable provisions of this chapter.

C. This section shall not be construed to require any person to obtain a license prior to doing business within the City if such requirement conflicts with applicable statutes of the United States or of the State. Persons not so required to obtain a license prior to doing business within the City, nevertheless, shall be liable for payment of the tax imposed by this chapter. (Ord. 342 § 1, 1978; prior code § 5.1-1).

5.04.030 License and tax payment – Application – Information required.

A. Any person required to obtain a license or to pay a tax as specified in this chapter shall complete an application in the form and manner as shall be provided by the collector from time to time.

B. Such application shall include all information which the collector may require to determine the appropriate tax and to issue the license as provided for by this chapter.

C. All such applications shall contain a declaration, made under penalty of perjury, that the information contained therein is true and correct. (Ord. 342 § 1, 1978; prior code § 5.1-5).

5.04.040 License and tax payment – Application – Determination of tax by averaging number of persons employed.

In cases where the amount of license tax to be paid is measured by average number of persons employed, the applicant shall estimate the average number of persons to be employed for the period to be covered, and such estimate shall be used in determining the amount of initial license tax to be paid by the applicant.

5.04.060 License and tax payment – Application – Payment at time of submission.

All persons required to pay a license tax as provided in this chapter shall pay the tax at the time a completed application is submitted to the collector. (Ord. 342 § 1, 1978; prior code § 5.1-5).

5.04.070 License and tax payment – Reissuance requirements.

The collector shall not issue to any person another license for the same or any other business until such person has furnished to the collector a sworn statement and paid the license tax provided by this chapter. (Ord. 342 § 1, 1978; prior code § 5.1-5).

5.04.080 License – Period.

A. All licenses described in this chapter shall be issued for a period of one year, except as otherwise provided in this chapter. The license period shall commence on January 1st and shall expire on December 31st.

B. Any person commencing a new business for which a license is required after the commencement of the license period provided in subsection (A) of this section shall pay a license tax according to the following schedule: If such person commences business during the first half of the license period the full amount of the tax specified in this chapter shall be paid. If such person commences business during the second half of the license period, one-half of the tax, as set forth by resolution, shall be paid. (Ord. 342 § 1, 1978; prior code § 5.1-4).

5.04.090 License – Transferability.

A. No license issued under this chapter shall be transferable to another person. A person licensed under this chapter who changes the location of the licensee’s place of business may file a change of address with the collector for such license; provided, that the ownership of the business remains identical.

B. The prohibition against transfer contained in this section shall not apply to a business reorganization wherein the ownership of the new association or entity conducting the business remains substantially the same as when the license was issued. (Ord. 342 § 1, 1978; prior code § 5.12).

5.04.100 License – Does not permit business otherwise prohibited.

The payment of a license tax required by this chapter and the issuance of a license to any person or entity shall not entitle the holder thereof to carry on any business otherwise prohibited by law. (Ord. 342 § 1, 1978; prior code § 5.1-3).

5.04.110 License – Renewal.

In cases where the amount of tax is measured by average number of persons employed or is measured by gross receipts (manufacturers, wholesalers), the renewal tax shall be computed upon the persons employed or the gross receipts, as is applicable, during the preceding license period. (Ord. 342 § 1, 1978; prior code § 5.1-7).

5.04.120 License – Separate license for each place of business.

A separate license must be obtained for each and every branch establishment or separate place of business within the City at which a business is carried on. (Ord. 342 § 1, 1978; prior code § 5.1-2).

5.04.130 Refund or credit for tax.

A. Nothing contained in this section shall entitle any person to a refund of any tax paid under this chapter in the event a person ceases to do business prior to the end of any period for which a tax was paid or estimated.

B. In the event of an overpayment, amount shall be credited to renewal. (Ord. 342 § 1, 1978).

5.04.140 Statements and records.

A. No statement submitted by any applicant pursuant to the requirements of this chapter shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable under this chapter.

B. The collector may require that a licensee or applicant for a license shall submit an audited statement by a certified public accountant attesting to such financial information as may be necessary to ascertain the amount of the license fee due. Failure to submit such an audited statement, upon request, shall constitute grounds for refusal to issue a license applied for or for cancellation of a license previously issued under this chapter. (Ord. 342 § 1, 1978; prior code § 5.1-8).

5.04.150 Confidentiality.

A. Information furnished to the collector under the provisions of this chapter shall be confidential, excepting the identity and business address of persons taxed or licensed under this chapter, the date on which any such license was issued or tax paid, the number assigned by the collector to any such license, the classification for such license or tax and the type of business or occupation licensed or taxed. It is unlawful for the collector or any other person to disclose, permit the inspection of, or to permit the copying of any other statement or record furnished by any person under the requirements of this chapter or any abstract thereof made by the collector.

B. Nothing in this section shall be construed to prevent:

1. The disclosure to, or the examination of records and equipment by, another City official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter, or collecting taxes imposed under this chapter;

2. The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any license tax liability of the particular taxpayer to the City, or to a court of law in any proceeding where such disclosure has been ordered by the court;

3. The disclosure, after the filing of a written request to that effect, to the taxpayer, or to the taxpayer’s successors, receivers, trustees, executors, administrators and assigns, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; provided further, however, that the City Attorney approves each such disclosure referred to in this subdivision, which approval may be withheld if the City Attorney believes that the public interest would suffer thereby;

4. The disclosure, at a public meeting or otherwise, of such information as may be necessary to permit the Council to act on any matter concerning a particular taxpayer under this chapter;

5. The disclosure of general statistics regarding taxes collected or business done in the City; and

6. The disclosure to State agencies of information as required by State law. (Ord. 342 § 1, 1978; prior code § 5.1-9).

5.04.160 Failure or refusal to file under this chapter.

A. If any person fails or refuses to file any statement or application required by this chapter, fully completed, or fails to furnish any information required to be furnished under the provisions of this chapter, the collector shall make written demand upon such person which demand shall state the particular omissions of the person involved.

B. If such omission is not cured within 50 days after the date on which such demand is given, the collector shall make a determination of the appropriate classification under this chapter for such person and shall thereupon fix the tax to be assessed against such person as the maximum tax payable under any classification of this chapter or the sum of $300.00, whichever is less. (Ord. 342 § 1, 1978; prior code § 5.1-10).

5.04.170 Extension or waiver of penalties.

The collector shall have the power, for good cause shown, to extend the time for filing any required statement or application or to waive any penalty specified by this chapter. (Ord. 342 § 1, 1978; prior code § 5.1-11).

5.04.180 Automatic annual increase.

The amount of tax charged in this chapter shall increase automatically by three percent annually to be confirmed by resolution. (Ord. 440 § 1, 1988).

5.04.190 Unclassified.

Every person engaged in a business which is not described or included in another classification specified in this chapter, and which is not exempt from local business tax by State or Federal law, shall pay an annual license tax based upon the average number of persons employed and/or engaged in such business during the previous calendar year, as set forth by resolution.

5.04.200 Home business.

Notwithstanding any other provision of this code except CMC 5.04.250, the owner of any business permitted in an otherwise exclusive residential area shall only pay a business license tax established by resolution of the Council.

5.04.210 Contractor – Owner builder.

A. Every person transacting or carrying on the business of contracting in the building trades, either general or specialty, as defined by the laws of the State, shall pay an annual license tax as set forth by resolution of the Council.

B. Specialty contractors whose normal work does not require obtaining a permit from the building official shall not be taxed under this classification and shall pay an annual license tax pursuant to CMC 5.04.190.

C. Each general contractor or owner-builder shall furnish the Planning Department with a list of subcontractors and material delivery firms’ names and addresses at the time each building permit is issued or as soon thereafter as is practical. (Ord. 386 § 4, 1982; Ord. 342; § 1, 1978; prior code § 5.1-13).

5.04.220 Transport – Delivery – Outside service.

A. Persons Taxable.

1. Every person engaged in the business of regularly transporting, delivering, providing for transportation, or providing for delivery of goods, wares, merchandise, or other materials, to be delivered within the City or to be picked up within the City and transported and delivered elsewhere, shall pay an annual license tax as set forth by resolution.

2. Every person whose place of business is located outside the City, who makes wholesale deliveries of goods or services by motor vehicles to businesses or professions located inside the City, shall pay an annual license tax as set forth by resolution. This subdivision shall include, but not be limited to, linen and towel supply, uniform and overall supply, petroleum products, and ready-mix concrete.

3. Every person who makes retail deliveries of dairy products over regular routes to regular customers shall pay an annual license tax as set forth by resolution.

4. Every person whose place of business is located outside the City who conducts, carries on, or manages a business of laundry, dryer, dry cleaner and/or rug cleaner and makes deliveries or collections in the City shall pay an annual license tax as set forth by resolution.

5. Every person whose place of business is located outside the City who maintains, installs, or repairs goods, wares, merchandise, or equipment inside the City shall pay an annual license tax as set forth by resolution.

6. Every person whose place of business is located outside the City, making retail deliveries not otherwise specified herein, shall pay an annual license tax as set forth by resolution.

B. Vehicle Classification. For the purposes of this section, a tractor semitrailer combination shall be classified as one vehicle. Every other trailer attached to a motor vehicle shall be considered a separate vehicle. (Ord. 386 §§ 5, 6, 1982; Ord. 342 § 1, 1978, prior code § 5.1-13).

5.04.230 Utilities.

A. Every person engaged in the business of operating a bus company, telegraph, telephone, gas or electric company or other public utility within the City shall be required to obtain a license and pay the license tax; as set forth by resolution. However, the provisions of all ordinances with reference to the granting of a franchise to such public utility and requiring the payment of a franchise tax by it, shall remain in full force and effect.

B. In the event a utility pays a franchise tax, this section shall not require an additional tax. (Ord. 342 § 1, 1978; prior code § 5.1-14(a)).

5.04.240 Hospitals.

Every person carrying on the business of conducting, managing or operating a hospital, rest home, sanitarium, convalescent home or other similar establishment or institution shall pay the annual license tax; as set forth by resolution. However, any hospital or sanitarium conducted or carried on by the City or by any other political subdivision shall be exempt from the payment of the license tax specified in this chapter. (Ord. 342 § 1, 1978; prior code § 5.1-14(b)).

5.04.250 Hotel, motel, spa, bar, restaurant, lodging place, bed and breakfast establishment, apartment house, rental units, dwelling units.

A. Every person carrying on the business of a hotel, motel, spa, bar, restaurant, lodging place or bed and breakfast establishment shall pay an annual license tax as set forth by resolution.

1. A motel, hotel, spa, lodging place, or bed and breakfast establishment that includes a bar and/or a restaurant shall pay a separate annual business tax for each business conducted.

B. Every person engaged in renting or leasing an apartment(s) shall pay an annual license tax as set forth by resolution.

C. Every person engaged in renting or leasing a dwelling unit or units not covered or defined in other provisions of this chapter shall pay an annual license tax as set forth by resolution. “Dwelling unit” as used in this section refers to a single person or single-family unit with kitchen facilities including, but not limited to, apartment units maintained in a residential structure, cabins, duplex units, mobile homes, trailers and single-family residences. (Ord. 386 § 8, 1982; Ord. 342 § 1, 1978; prior code § 5.1-14(c)).

5.04.260 Manufacturers/wholesalers.

A. Every person engaged in the business or activity of manufacturing, wholesaling, or producing shall pay annually the sum of $1.20 per $1,000 gross receipts (as defined in CMC 5.04.010), or fraction thereof.

B. This classification includes, but is not limited to, manufacturing and/or wholesaling of mineral water, geothermal water products and by-products, and the marketing, selling and distributing thereof.

C. Manufacturers/wholesalers license tax shall be paid monthly to the tax administrator as follows:

1. Manufacturers/wholesalers shall obtain from the City the necessary form to submit payment of tax.

2. On or before the twentieth day of each month, manufacturers/wholesalers shall remit to the City on account of the tax $1.20 per $1,000 of the monthly gross receipts as accrued for the previous month. (Ord. 500 § 1, 1993; Ord. 388 § 1, 1983; Ord. 386 § 9, 1982).

5.04.270 Trailer parks and mobile home parks.

Every person engaged in the operation of a trailer park or mobile home park shall pay an annual license tax as set forth by resolution.

5.04.280 Taxicabs.

Every person engaged in the business of operating a taxicab or taxicabs, which includes the picking up and/or the delivering of passengers within the limits of the City, shall pay annual tax as set forth by resolution. (Ord. 386 § 11, 1982; Ord. 342 § 1, 1978).

5.04.290 Orders for goods or services.

A. Every person engaged in the business of soliciting for retail orders for services, goods, wares, merchandise, property of all kinds, books, maps, pictures or photographs, shall pay an annual license tax as set forth by resolution.

B. No license tax shall be payable under this section by any person who has a fixed place of business in the City and who is required to and has paid any other license tax under this chapter. (Ord. 386 § 12, 1982; Ord. 342 § 1, 1978; prior code § 5.1-14(f)).

5.04.300 Peddlers or solicitors.

Any person going from place to place and selling or distributing merchandise or soliciting orders for merchandise shall pay a license tax as set forth by resolution. (Ord. 386 § 13, 1982; Ord. 342 § 1, 1978).

5.04.310 Ambulance service.

Every person engaged in the business of ambulance service shall pay an annual license fee as set forth by resolution. (Ord. 342 § 1, 1978; prior code § 5.1-14(h)).

5.04.320 Auctions, flea markets and yard sales.

A. Every person conducting an auction, flea market, swap fair, garage or yard sale, or other occasional presentations for sale of a variety of goods shall pay a license tax as set forth by resolution.

B. Patio, yard or garage sales or auctions conducted on residential property shall not be subject to license tax under this section as long as no more than one such sale or auction in held in any six-month period. (Ord. 386 § 14, 1982; Ord. 342 § 1, 1978; prior code § 5.1-14(i)).

5.04.330 Coin-operated vending machines or play devices.

Any person renting, leasing or operating coin-operated vending machines or play devices within the City shall pay a business license tax as set forth by resolution. (Ord. 342 § 1, 1978).

5.04.340 Amusements.

For any of the following amusements, shows, or places of recreation the following rates shall apply:

A. Carnival. Every carnival, as defined in this subsection, shall pay a business license tax as set forth by resolution. For the purposes of this chapter the word “carnival” shall mean any group of attractions such as ball games, dice games, merry-go-rounds, ferris wheels, or other riding devices, dancing shows, or any other like entertainments or games for which a charge is made for attending or for playing or participating therein.

B. Circus. Each exhibition for pay of a circus, menagerie, or entertainment at which feats of horsemanship, acrobatic feats, trained or wild animals, or similar exhibits or displays, shall pay a business license tax as set forth by resolution.

C. Public Dances. For the purpose of this chapter “public dances” shall mean a gathering of persons in or upon any premises wherein dancing is participated, the public is invited or admitted, and an admission is charged. As set forth by resolution, a business license tax shall be paid for each public dance.

D. Games and Concessions. For every game for amusement or test of strength, skill, physical endurance or capacity of any kind, and for every exhibition or entertainment conducted as a sideshow or concession at or during the period of a local celebration if not included within a carnival organization, a business license tax shall be paid as set forth by resolution.

E. Open-Air Theater. The operator of every open-air theater or tent show, wherein vaudeville, comic, dramatic or operatic productions or performances are given, or motion pictures exhibited, and for which admission is charged, shall pay a business license tax as set forth by resolution.

F. Bowling Alleys. Each bowling alley owner shall pay a business license tax as set forth by resolution.

G. Other Public Entertainments. Every other kind of public entertainment, meaning nonregular events held open to the general public, for which an admission is charged, shall pay a business license tax for each day or part thereof of operation, as set forth by resolution. Such public entertainment shall include “air shows” and “car shows.” (Ord. 386 § 15, 1982; Ord. 342 § 1, 1978; prior code § 5.1-14(k))

5.04.350 Collection of tax for amusements.

If an event sponsored by one sponsor or organization includes multiple concessions or amusements, the business license shall be collected by the sponsor and remitted to the City. The sponsor shall be liable for any business taxes not collected.

5.04.360 Newspaper deliveries.

A. Newspaper carriers or persons regularly making deliveries of newspapers to persons or places within the City shall not be required to pay a license tax under the provisions of this chapter. Such carriers and persons shall not be deemed to be solicitors or peddlers under the provisions of this title and may make inquiries concerning subscriptions to the newspaper they represent of persons within the City. Such inquiries may concern no other offered sales or services.

B. “Newspapers” as used in this section includes only newspapers of general circulation as defined in Government Code Section 6000. (Ord. 342 § 1, 1978; prior code § 5.1-15).

5.04.370 Multiple classifications.

Any person whose business includes services or businesses described in more than one classification by this chapter, shall pay the license tax prescribed for each such business or service. (Ord. 386 § 16, 1982; Ord. 342 § 1, 1978; prior code § 5.1-16).

5.04.380 Notices.

Any notices which shall or may be given under the provisions of this chapter shall be in writing and may be given as follows: by personal delivery to the person to be noticed or by mailing such notice, postage fully prepaid, certified mail, to the person to be noticed at the business address of such person as last shown in the records maintained by the collector or, if no such address is shown, at the address determined by the collector to be the most recent mailing address of the person to be noticed. (Ord. 342 § 1, 1978).

5.04.390 Making of rules and regulations by collector.

A. The collector may make such rules and regulations not inconsistent with the provisions of this chapter as may be necessary or desirable to aid in the enforcement of the provisions of this chapter.

B. In the collector’s discretion, churches, schools, and other charitable entities, and local service clubs, may be exempted from the imposition of any license tax otherwise imposed by this chapter. (Ord. 342 § 1, 1978; prior code § 5.1-19).

5.04.400 Decision of collector – Appeal.

Any person aggrieved by any decision of the collector with respect to the administration of this chapter may appeal by filing a written notice of appeal with the City Clerk within 30 days after the receipt of written notice from the collector of the disputed decision. (Ord. 342 § 1, 1978).

5.04.410 Constitutional apportionment.

A. None of the license taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce or to be violative of the equal protection and due process clauses of the constitutions of the United States and the State.

B. In any case in which a license tax is believed by a licensee or applicant to place an undue burden upon interstate commerce or to be violative of such constitutional clauses, the licensee or applicant may apply to the collector for an adjustment of the tax.

1. Such application may be made before, at, or within six months after payment of the prescribed license tax.

2. Any such application shall be accompanied by a sworn statement or statements stating with particularity the burden or violation alleged.

3. Upon such application, the collector shall conduct an investigation and, after first having obtained the written approval of the City Attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed.

4. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon any measure which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature so long as the amount assessed does not exceed the license tax prescribed by this chapter. (Ord. 342 § 1, 1978; prior code § 5.1-21).

5.04.420 Delinquent taxes – Penalties.

A. For failure to pay a license tax when due, the collector shall add a penalty of 10 percent of said license tax on the first day of each month after the due date thereof, providing that the amount of such penalty to be added shall in no event exceed 50 percent of the amount of the license tax due.

B. Any license issued pursuant to this chapter may be suspended by the collector upon the failure of the licensee to pay any charges imposed by this chapter or to file reports as required by this chapter within 60 days after such charges or reports became delinquent.

C. No license shall be issued, nor shall one which has been suspended or revoked be reinstated or reissued, to any person, who at the time of applying therefor, is indebted to the City for any delinquent license taxes. (Ord. 342 § 1, 1978; prior code § 5.1-22).

5.04.430 Delinquent taxes – Interest.

A. Delinquent taxes shall be subject to the imposition of penalties in accordance with CMC 5.04.420.

B. Any tax provided for by this chapter, or any part of any tax provided for by this chapter, which remains delinquent for a period of time which subjects such taxpayer to the maximum penalty specified in CMC 5.04.420 shall, from the date on which such maximum penalty accrues, bear interest at the rate of 10 percent per year until paid.

C. The “principal owed” for the purpose of computation of such interest, shall be the entire sum of delinquent tax plus all accrued penalties. (Ord. 342 § 1, 1978; prior code § 5.1-23).

5.04.450 Effect on other ordinances or laws.

Persons required to pay a license tax for transacting and carrying on any business under the provisions of this chapter shall not be relieved from the payment of any license tax for the privilege of such business required under any other ordinance of the City, and shall remain subject to the regulatory provisions of other ordinances, except such ordinances as are specifically codified in this chapter.

5.04.460 Enforcement.

A. The collector may enforce the payment of any sum of money payable under the provisions of this chapter by commencing a civil proceeding in a court of competent jurisdiction.

B. In the event the City prevails in any such action or proceeding, the City shall be entitled, as a part of any judgement so obtained, to reasonable attorney’s fees and costs plus the cost and charges of any accountant or other financial consultant employed by the City in connection with such litigation. (Ord. 342 § 1, 1978; prior code § 5.1-24).