Chapter 5.05
LICENSES
Sections:
5.05.030 Chapter a revenue measure.
5.05.040 Payment of other licenses not excused.
5.05.070 Exemptions for persons exempt under federal and state laws and for interstate commerce.
5.05.080 Application – Issuance and contents of license.
5.05.090 Appeals to council from actions of business license clerk.
5.05.110 Transferability of licenses.
5.05.140 How and when license taxes payable.
5.05.150 Penalty for failure to pay license tax when due.
5.05.160 License tax for persons operating businesses outside the city.
5.05.170 Enforcement of chapter – Right of entry.
5.05.180 Taxes a debt to city – Actions for collection of taxes.
5.05.200 Schedule of license taxes generally.
5.05.210 License does not permit business otherwise prohibited or unlawful.
5.05.220 Evidence of doing business.
5.05.010 Definitions.
For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
“Business” includes professions, trades and occupations and every kind of calling, whether or not carried on for profit, whether paid for in money, goods, labor or otherwise, and whether continuous or casual.
“Business by vehicle” means the business of running, driving or operating any vehicle, automobile truck, automobile tank wagon or any vehicle used for transportation, selling, collection or the delivery of goods, wares, merchandise or other personal property of any kind from a vehicle, either as a principal business or in connection with any other business or of soliciting for work, labor or services to be performed upon the public streets in or from a vehicle, or to be performed on goods, wares, merchandise, clothes or other personal property to be taken for such purpose to a plant or establishment inside or outside the city. This definition shall not be deemed to apply to the delivery of goods to persons operating such vehicle together and in conjunction with a fixed place of business within the city for which such business a license tax is paid pursuant to the provisions of this chapter. This definition shall not be construed as imposing a tax upon vehicles, but as a method of classification of businesses and distinguishing between persons maintaining a fixed place of business in the conduct of which a vehicle is used and persons maintaining business in the conduct of which vehicles are used, but who do not have a fixed place of business in the city.
Business License. A business license constitutes evidence that license fee obligations prescribed in this chapter have been satisfied.
“Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis, and any product containing cannabis. “Cannabis” includes cannabis that is used for medical, adult use, or other purposes. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. “Cannabis” also does not include industrial hemp, as defined in California Health and Safety Code Section 11018.5.
“City” means the city of Calimesa, a municipal corporation of the state of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.
“Commercial cannabis activity” means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis or cannabis products for medical, adult use, or any other purposes and includes the activities of any business licensed by the state under Business and Professions Code Division 10. Commercial cannabis activity does not include the cultivation, possession, storage, manufacturing, or transportation of cannabis by a qualified patient for his or her personal medical use so long as the qualified patient does not provide, donate, sell or distribute cannabis to any other person. Commercial cannabis activity also does not include the cultivation, possession, storage, manufacturing, transport, donation or provision of cannabis by a primary caregiver, exclusively for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, but who does not receive remuneration for these activities except for compensation in full compliance with Health and Safety Code Section 11362.765.
“Conduct” or “carry on” means and includes engaging in, carrying on, owning, maintaining, managing or operating any business, trade, art, profession, calling, employment, occupation or any commercial, industrial or professional pursuit, vocation or enterprise in this city.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform.
“Distribution” means the procurement, sale, and transport of cannabis and cannabis products between entities licensed under California Business and Professions Code Division 10, as the same may be amended from time to time.
Employee/Self-Employment. An employee is a person who receives his compensation from an employer who withholds the necessary federal and state taxes, carries workers’ compensation insurance, and assumes all other responsibilities as an employer. Any person who is not an employee shall be deemed self-employed and in business for himself.
“Garage sale” is defined as a garage, yard, lawn, patio or similar-type sale held anywhere on any residential premises for the purpose of disposing of personal property.
“Junk dealer” means any person engaged in and carrying on the business of buying and selling, at either wholesale or retail, or who does business by vehicle for the purpose of buying and selling any old rags, sacks, bottles, cans, papers, metal or other articles of junk.
“License collector” means the city manager or his authorized designee or representative charged with the administration of the business license tax program, hereinafter referred to as “collector.”
“Licensee” means any person to whom a license has been issued pursuant to the provisions of this chapter.
“Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
“MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act as codified in Business and Professions Code Division 10, as the same may be amended from time to time.
“Medical marijuana product” shall have the same meaning as “cannabis product” or “medical cannabis product” as set forth in the MMRSA, as the same may be amended from time to time, and shall include marijuana, as well as concentrates and extractions, intended to be sold for use by medical marijuana patients pursuant to the Compassionate Use Act.
“Medicine show” means the business of dealing with medicines, other than as conducted by a regularly established drugstore, or peddling the same, or treating diseases of the human body or calling attention to wares or methods of treatment, or advertising the same by use of music, entertainment, speech or other devices.
“Pawnbroker” means a person engaged in conducting, managing or carrying on the business of loaning money for himself or for any other person upon personal property, personal security, pawns or pledges, or the business of purchasing articles of personal property and reselling or agreeing to resell such articles to the vendors or their assignees at prices agreed upon at or before the time of such purchase.
“Pawnshop” means any room, store or place in which the business of a pawnbroker is engaged in, carried on or conducted.
“Peddler” means any person who goes from house to house, place to place or in or along the streets of the city selling and making immediate delivery, or offering for sale and immediate delivery any goods, wares, merchandise or anything of value in the possession of the peddler to persons other than manufacturers, wholesalers, jobbers or retailers in such commodities.
“Permit” means any written authorization, or permission, to conduct, manage or carry on a business activity within this city. A business license does not constitute a “permit.”
“Person” means all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, corporations, Massachusetts businesses or common law trusts, societies and individuals engaged in any business in the city.
“Rental of property and accommodations” includes every person or company engaged in the business of renting, leasing, providing, exchanging or trading, without loss of ownership, any land, dwelling, or building, structure or portion thereof for the purpose of occupancy, sleeping, lodging, boarding or other use and accommodation. The license fee for the rental of properties is determined by ownership of the property. Agents acting for property owners are responsible for payment of the license fee on rentals. Such rental and accommodations shall include but are not limited to:
A. Business Property (Rental). Buildings or portions thereof used for any business, commercial or industrial purposes or land for any purpose.
B. Residential Property (Rental). Apartments, recreational vehicle parks, trailer parks, and mobile home parks.
C. Accommodations, boarding house, hospital, hotel, inn, lodging house, motel, rest home, rooming house, sanitarium.
“Rummage sale” means a sale of donated articles and goods for the purpose of nonprofit charitable functions.
“Serious medical condition” shall mean and be limited to cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other serious medical condition as defined in California Health and Safety Code Section 11362.7(h), as such statute may be amended from time to time.
“Streets” means all streets, avenues, highways, alleys, courts, lanes, places, squares, curbing, sidewalks and other public ways in the city which have been, or may hereafter be, dedicated as such, or which, though not dedicated, are open to public use. [Ord. 378 § 1, 2021; Ord. 353 § 3, 2017; Ord. 341 §§ 3, 4, 2016; Ord. 341-U §§ 4, 5, 2016; Ord. 90-14; Code 1990 § 6.2.01.]
5.05.020 Purpose.
The purpose of this chapter is to license for revenue the carrying on in the city of Calimesa of various lawful businesses, professions, trades, callings and occupations, including casual sales. [Ord. 90-14; Code 1990 § 6.2.02.]
5.05.030 Chapter a revenue measure.
This chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation. [Ord. 90-14; Code 1990 § 6.2.03.]
5.05.040 Payment of other licenses not excused.
Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other provision of this code or any other ordinance of the city, and shall remain subject to the regulatory provisions of other provisions of this code and other city ordinances. [Ord. 90-14; Code 1990 § 6.2.04.]
5.05.050 Licenses required.
A. There are hereby imposed, upon the businesses, trades, professions, callings and occupations specified in this chapter, license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city to so do or without complying with all applicable provisions of this chapter.
B. 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 statues of the United States or of this state.
C. Persons not required to obtain a license prior to doing business within the city because of conflict with applicable statutes of the United States or of this state shall be liable for payment of the tax imposed by this chapter.
D. Any person conducting more than four garage sales annually shall be subject to the provisions of this chapter.
E. Any person selling, or attempting to sell, a motor vehicle parked in a public right-of-way or on premises not owned or leased by the seller shall be subject to the provisions of this chapter. [Ord. 90-14; Code 1990 § 6.2.05.]
5.05.060 Separate license required for each branch establishment and each separate type of business at same location.
A separate license shall be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location. Each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license. Warehouses and distributing plants used in connection with and incidental to a business license under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments. [Ord. 90-14; Code 1990 § 6.2.06.]
5.05.070 Exemptions for persons exempt under federal and state laws and for interstate commerce.
A. Nothing in this chapter shall be deemed or construed to apply to any person transacting and carrying on any business exempt, by virtue of the Constitution or applicable statutes of the United States or of this state, from the payment of the taxes prescribed by this chapter.
B. None of the license taxes provided for by this chapter shall be applied so as to occasion an undue burden upon interstate commerce. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon such commerce, he may apply to the business license clerk for an abatement of the tax so that it shall not be discriminatory or unreasonable as to such commerce.
C. Any person claiming an exemption pursuant to this section shall file a verified statement with the business license clerk, stating the facts upon which exemption is claimed.
D. The business license clerk shall, upon a proper showing contained in the verified statement, issue a license to such person claiming exemption under this section without payment to the city of the license tax required by this chapter.
E. The business license clerk, after giving notice and reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemptions as provided herein. [Ord. 90-14; Code 1990 § 6.2.07.]
5.05.080 Application – Issuance and contents of license.
Each year, every person required to have a license under the provisions of this chapter shall submit a completed application and business source reduction and recycling survey on forms supplied by the city to the business license clerk of the city. Pursuant to California Government Code Section 6254, subdivision (i), the completed forms shall remain confidential and shall not be used for any purpose other than the accumulation of data for the city’s solid waste management program. Upon acceptance of the forms and payment of the prescribed license tax, the business license clerk shall issue to such person a license which contains:
A. The name of the person to whom the license is issued;
B. The business licensed;
C. The place where such business is to be transacted and carried on;
D. The date of expiration of such license; and
E. Such other information as may be necessary for the enforcement of the provisions of this chapter. [Ord. 91-18; Ord. 90-14; Code 1990 § 6.2.08.]
5.05.090 Appeals to council from actions of business license clerk.
Any person aggrieved by any decision of the business license clerk with respect to the issuance or refusal to issue any license may appeal to the city council by filing a notice of appeal with the clerk of the council. The city council shall thereupon fix a time and place for hearing such appeal. The clerk of the council shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office at Calimesa, California, postage prepaid, addressed to such person at his last known address. The city council shall consider all evidence produced, and shall make findings thereon, which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed for serving notices of assessment. The city council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter. [Ord. 90-14; Code 1990 § 6.2.09.]
5.05.100 Authority of business license clerk to extend time for filing of statements and to compromise claims as to amount of license taxes.
In addition to all other powers conferred upon him, the business license clerk shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 30 days, and in such case to waive any penalty that would otherwise have accrued. He shall have the further power, with the consent of the city council, to compromise any claim as to the amount of license tax due. [Ord. 90-14; Code 1990 § 6.2.10.]
5.05.110 Transferability of licenses.
A. No license issued pursuant to this chapter shall be transferable except in those cases where a business, to be continued in the same location and in the same form, is sold. In any case where a business is sold and the license proposed to be transferred, the grantee of such business shall present himself to the business license clerk, and upon payment of $10.00, the business license clerk shall transfer the business license.
B. Where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may, upon application therefor and paying a fee of $10.00, have the license amended to authorize the transacting and carrying on of such business under such license at some other location to which the business is or is to be moved. [Ord. 90-14; Code 1990 § 6.2.11.]
5.05.120 Duplicate licenses.
A duplicate license may be issued by the business clerk to replace any license previously issued under this chapter which has been lost or destroyed, upon the licensee filing a statement of such fact, and at the time of filing such statement, paying to the business license clerk a duplicate license fee of $10.00. [Ord. 90-14; Code 1990 § 6.2.12.]
5.05.130 Posting of licenses in fixed place of business – Licenses to be kept on person of licensees not having fixed place of business.
All licenses shall be kept and posted in the following manner:
A. Any licensee transacting and carrying on a business at a fixed place of business in the city shall keep a license posted in a conspicuous place upon the premises where such business is carried on.
B. Any licensee transacting and carrying on business but not operating a fixed place of business in the city shall keep a license upon his person at all times while transacting and carrying on such business. [Ord. 90-14; Code 1990 § 6.2.13.]
5.05.140 How and when license taxes payable.
A. Unless otherwise specifically provided, all annual license taxes under the provisions of this chapter shall be due and payable in advance for a period of six months at the time the original license is issued. Upon license expiration thereafter, annual license renewal taxes shall be due and payable in advance for a period of one year.
B. Unless otherwise specifically provided, daily flat rate license taxes shall be payable each day in advance.
C. Nonprofit entities shall be exempt from fees with current and valid 501(c)(3) documentation. [Ord. 378 § 2, 2021; Ord. 90-14; Code 1990 § 6.2.14.]
5.05.150 Penalty for failure to pay license tax when due.
For failure to pay a license tax when due, the business license clerk shall add a penalty of 10 percent of such license tax on the last day of each month after the due date thereof; provided, that the amount of such penalty to be added shall in no event exceed 100 percent of the amount of the license tax due. [Ord. 90-14; Code 1990 § 6.2.15.]
5.05.160 License tax for persons operating businesses outside the city.
Except where otherwise specifically provided, the license fee for carrying on any business or operation in the city by any person not maintaining a bona fide and fixed place of business in the city for such business shall be double the amount as such license fees required for the same fixed place of business in the city. This double fee shall not apply to wholesalers not maintaining fixed places of business within the city whose only business transacted within the city is the supplying of merchandise to retailers within the city, holding licenses under this chapter. [Ord. 90-14; Code 1990 § 6.2.16.]
5.05.170 Enforcement of chapter – Right of entry.
A. It shall be the duty of the business license clerk to enforce all the provisions of this chapter. The chief of police shall render such assistance in the enforcement of this chapter as may from time to time be required by the business license clerk or the city council.
B. The business license clerk, in the exercise of the duties imposed upon him under this chapter, and acting through his deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the city to ascertain whether the provisions of this chapter have been complied with.
C. The business license clerk and each of his assistants and any peace officer shall have the power and authority to enter, free of charge, and at any reasonable time, any place of business required to be licensed under this chapter and demand an exhibition of its license certificate. It shall be the duty of the business license clerk and each of his assistants to cause a complaint to be filed against any person found to be violating any of the provisions of this chapter. [Ord. 90-14; Code 1990 § 6.2.17.]
5.05.180 Taxes a debt to city – Actions for collection of taxes.
The amount of any license tax and penalty imposed by the provisions of this chapter shall be deemed a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent license tax and penalties. [Ord. 90-14; Code 1990 § 6.2.18.]
5.05.190 Remedies cumulative.
All remedies prescribed under this chapter shall be cumulative, and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. [Ord. 90-14; Code 1990 § 6.2.19.]
5.05.200 Schedule of license taxes generally.
Every person who engages in business at a fixed place of business within the city shall pay a license tax in the amount or at the rate as the city council shall, from time to time, set the amount or rate of tax by resolution. [Ord. 90-14; Code 1990 § 6.2.20.]
5.05.210 License does not permit business otherwise prohibited or unlawful.
A. The payment of a license fee required by the provisions of this chapter or any other ordinance and its acceptance by the city and the issuance of such license to any person shall not entitle the holder thereof to carry on any business unless he has complied with all of the requirements of this code and all other applicable requirements of state and federal law.
B. The payment of a license fee and its acceptance by the city and the issuance of a license to any person shall not be considered approval or authorization of any unlawful activity or conduct in violation of any local, state, or federal law, statute, ordinance, rule, or regulation. Any such license shall be void.
C. No license shall be issued for any commercial cannabis activity, and the issuance of any business license for any commercial cannabis activity, or any business prohibited by federal, or any city or local law, is void. The city shall also not issue any business license for any activity for which a state license is required under the MAUCRSA, as the same may be amended from time to time. The city shall also not issue any local license to a nonprofit entity pursuant to California Business and Professions Code Section 26070.5.
D. Notwithstanding subsection (C) of this section, the city may issue a business license to a medical cannabis delivery business that has a valid state license, whose place of business is located outside of the city, and that delivers medical cannabis to qualified patients or their primary caregivers located within the city.
E. No license shall be issued to any person for any business or other use for any business prohibited by federal, state, or other city or local law, and any such license to any business prohibited by federal, state or other city or local law is void. [Ord. 353 § 4, 2017; Ord. 341 § 5, 2016; Ord. 341-U § 6, 2016; Ord. 90-14; Code 1990 § 6.2.21.]
5.05.220 Evidence of doing business.
When any person, by use of signs, circulars, cards, telephone book, answering service, newspapers or any commercial means, advertises, holds out or represents that he is in business in the city, or when any person holds an active license or permit issued by a government agency indicating that he is in business in the city, and such person fails to deny the same by a sworn statement given to the collector, then these facts shall be considered prima facie evidence that he is conducting a business in the city. [Ord. 90-14; Code 1990 § 6.2.22.]