Chapter 5.04 BUSINESS LICENSES

For the purposes of CMC 5.04.010 through 5.04.580 the following words and phrases shall have the meanings respectively ascribed to them in this section:

A. Average Number of Persons Employed. The average number of persons employed daily in the applicant’s business during the previous year within the city shall be determined by ascertaining the total number of hours of service performed by all employees of the applicant within the city during the previous 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, fractions of numbers shall be excluded;

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

C. “Collector” means the city finance director or other city officer charged with the administration of this chapter;

D. “Employee” means all persons engaged in the operation or conduct of any business, whether as member of the owner’s family, agent, manager, solicitor, and any and all other persons employed or working in the business. For purposes of computing tax based on employees, the average number of employees, as defined in subsection (A) of this section, will be used;

E. “Fixed place of business” means the premises within the city where a business is continuously conducted from day to day and regularly kept open for the purposes of such business. “Regular place of business” has the same meaning as “fixed place of business”;

F. “Sworn statement” means an affidavit sworn to before a person authorized to take oaths or a declaration or certification made under penalty of perjury. (1964 Code § 15.1.)

5.04.020 Purpose.

The provisions of CMC 5.04.010 through 5.04.580 are enacted solely to raise revenue for municipal purposes and are not intended for regulation. (1964 Code § 15.2.)

5.04.030 Effect on other ordinances.

Persons required to pay a license tax for transacting and carrying on any business under CMC 5.04.010 through 5.04.580 shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the city, and shall remain subject to the regulatory provisions of other ordinances. (1964 Code § 15.3.)

5.04.035 License – Revocation/modification.

A. Any license obtained by fraud or misrepresentation shall, upon proof of such fraud or misrepresentation as provided in subsection (C) of this section, be revoked.

B. The city council may revoke, amend, modify, or impose such other or further terms, conditions or restrictions on the terms, conditions or restrictions theretofore placed in said license as the council finds reasonable or necessary to ensure that the business enterprise, occupation or event will not be contrary to, inimical to or jeopardize the preservation of the public peace, safety or welfare of the city or its inhabitants or to be detrimental to other properties or businesses in the vicinity. For purposes of this subsection, there shall be a rebuttable presumption that a business enterprise, occupation or event is contrary to, inimical to or jeopardizes the preservation of the public peace, safety or welfare if there have been at least six verified calls for response made to either the Covina police department or any other law enforcement agency pertaining to any criminal assault, battery, personal injury, vandalism or destruction of property, disturbance of the peace, or disorderly conduct which has occurred at the business enterprise, occupation or event, within any 90-calendar-day period.

C. Prior to any modification or revocation of license, the city manager shall, by his order, give the licensee notice of intent to modify or revoke such license, stating the grounds therefor. The matter shall be set for hearing before the city council and the licensee shall be notified in writing of said hearing not less than 15 days prior thereto. If the council finds upon substantial evidence that such license was obtained by fraud or misrepresentation or that subsection (B) of this section is applicable, the council shall order the license revoked or modified. From and after the making of such order, such license shall be null and void or modified in accordance with the terms imposed by the council.

D. Upon any modification or revocation of license, no refund of any license tax shall be made and the tax shall be forfeited to the city.

E. No business shall be conducted or operated in any manner during any period of license revocation. (Ord. 07-1937 § 1, 2007; Ord. 1689 § 1, 1989; Ord. 1513 § 1, 1982.)

5.04.040 Permit – Prerequisite to license issuance.

No license shall be issued to engage in any business when the provisions of this code or any other law of this city require a permit to be obtained as a prerequisite to engaging in such business until such permit is first obtained. Any license issued in violation of this section is void. (1964 Code § 15.4.)

5.04.050 Permit – Suspension or revocation.

A. Any permit granted pursuant to the provisions of this code may be by the city council revoked or suspended as in its discretion may seem just and equitable, or for any reason for which the granting of such permit may be lawfully denied, including but not limited to the operation of a permitted business, occupation or event in a disorderly manner. For purposes of this subsection, there shall be a rebuttable presumption that any permitted business, occupation or event is being operated in a “disorderly manner” if there have been at least six verified calls for response made to either the Covina police department or any other law enforcement agency pertaining to any criminal assault, battery, personal injury, vandalism or destruction of property, disturbance of the peace, or disorderly conduct which has occurred at the permitted business, occupation or event, within any 90-calendar-day period.

B. Such revocation or suspension shall be made only upon a hearing granted to the holder of a permit before the city council after not less than five days’ written notice to such permit holder, stating the ground of the complaint and stating the time and place where such hearing will be held. In the event of such revocation or suspension, any license or other certificate issued in connection with the granting of such permit shall, by the holder thereof, be surrendered to the finance director. Such hearing may, by the city council, be continued over from time to time and its findings shall be final and conclusive upon the matter. Such revocation or suspension of any permit shall be in addition to other penalties more specifically provided in CMC 5.04.010 through 5.04.580. (Ord. 07-1937 § 2, 2007; 1964 Code § 15.5.)

5.04.060 License – Required.

There are imposed upon the businesses, trades, professions, callings and occupations specified in CMC 5.04.010 through 5.04.580 license taxes in the amounts hereinafter prescribed. It is 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 do so and paying the tax hereinafter prescribed or without complying with any and all applicable provisions of CMC 5.04.010 through 5.04.580.

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 CMC 5.04.010 through 5.04.580. (1964 Code § 15.6.)

5.04.070 License – Separate required for branch establishments.

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, and 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; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of CMC 5.04.010 through 5.04.580 shall not be deemed to be separate places of business or branch establishments. (1964 Code § 15.7.)

5.04.090 Evidence of doing business.

When any person shall by use of signs, circulars, cards, telephone book or newspapers advertise, hold out or represent that he is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he is in business in the city, and such person fails to deny by a sworn statement given to the collector that he is conducting a business in the city after being requested to do so by the collector, then these facts shall be considered prima facie evidence that he is conducting a business in the city. (1964 Code § 15.9.)

5.04.100 License tax – Exemptions – Enumerated.

No license tax shall be required for, of or from the following:

A. Those exempt from municipal license taxes by virtue of the Constitution and the laws of this state or the United States;

B. Any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any individual; nor shall any license tax be required for any enterprise or entertainment when the receipts derived therefrom are to be apportioned to any church or school or to any religious, benevolent or charitable purpose within the city;

C. Upon written recommendation of a regularly licensed and practicing physician or welfare agency in Los Angeles County, dated within one year of the application to the effect that the applicant is physically unable to obtain a livelihood by manual labor, and stating the nature of physical infirmity, a person may apply for partial or complete exemption from tax liability for the current license period;

D. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license provided for in CMC 5.04.010 through 5.04.580 upon the grounds that he is an honorably discharged or released soldier, sailor or marine of the United States or Confederate States who is physically unable to obtain a livelihood by manual labor and who is a qualified elector of the state, as provided by Section 16001 of Business and Professions Code or other law of this state, shall, in addition to any other information required by CMC 5.04.010 through 5.04.580 also file with the collector a certificate of a regularly licensed and practicing physician dated within one year of the application, to the effect that the applicant is physically unable to obtain a livelihood by manual labor and stating the nature of the incapacitation; provided, that no exempt license shall be issued except in cases where the veteran applying therefor is actively engaged in the management and conduct of the business for which the exemption is requested;

E. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license provided for in CMC 5.04.010 through 5.04.580 upon the grounds that such license casts a burden upon his right to engage in commerce with foreign nations or among the several states or conflicts with the regulations of the United States Congress respecting interstate commerce shall file a verified statement with the collector disclosing the interstate or other character of his business entitling such exemption. Such statement shall contain the name and location of the company or firm for which the orders are to be solicited or secured, the name of the nearest local or state manager, if any, and his address, the kind of goods, wares or merchandise to be delivered, the place from which the same are to be shipped or forwarded, the method of solicitation or taking orders, the location of any warehouse, factory or plant within the state, the method of delivery, the name and location of the residence of the applicant and any other facts necessary to establish the identity of applicant and such claim of exemption. A copy of the order blank, contract form or other papers used by such person in taking orders shall be attached to the sworn statement for the information of the collector;

F. Any person under the age of 18 who is in business for himself; provided, that the gross income of the minor does not exceed $1,500 per year. (Ord. 1203 § 1, 1973; 1964 Code § 15.10.)

5.04.110 License tax – Exemptions – Limitations.

Nothing in CMC 5.04.100 or any subsection thereof shall exempt any person from complying with any of the regulatory measures or provisions of this code save and except the payment of license taxes required hereby. (1964 Code § 15.11.)

5.04.120 License tax – Exemptions – Claim.

Any person claiming an exemption pursuant to CMC 5.04.100 and 5.04.110 shall file a sworn statement with the collector stating the facts upon which exemption is claimed. (1964 Code § 15.12.)

5.04.130 License – Issuance without tax payment.

The city council shall, upon the proper showing contained in the sworn statement, direct the finance director to issue a license to such person claiming exemption under CMC 5.04.100 through 5.04.120 without payment to the city of the license tax required by CMC 5.04.010 through 5.04.580. (1964 Code § 15.13.)

5.04.140 License – Tax exemption revocation.

The city council shall revoke any license granted pursuant to the provisions of CMC 5.04.100 through 5.04.130 upon information that the licensee is not entitled to the exemption as provided in CMC 5.04.010 through 5.04.580. (1964 Code § 15.14.)

5.04.150 License – Contents.

Every person required to have a license under the provisions of CMC 5.04.010 through 5.04.580 shall make application as hereinafter prescribed for the same to the collector of the city, and upon the payment of the prescribed license tax, and if the collector is satisfied that the premises and operations therein conform to the provisions of this code and other regulatory ordinances of the city, the collector shall issue to such person a license which shall contain the following information:

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 the expiration of such license;

E. Such other information as may be necessary for the enforcement of the provisions of this code. The license issued by the collector for the purpose of posting in places of business shall contain no reference to the amount of license tax paid. (1964 Code § 15.15.)

5.04.160 License – Application – Contents.

A. Upon a person’s making application for the first license to be issued hereunder or for a newly established business, such person shall furnish to the collector a sworn statement, upon a form provided by the collector, setting forth the following information:

1. The exact nature or kind of business for which a license is requested;

2. The place where such business is to be carried on;

3. The names and places of residence for those owning the business;

4. In the event that an application is made for the issuance of a license to a corporation or a partnership, the application shall set forth the names and places of residence of the officers or partners thereof;

5. If the amount of the license tax to be paid by the applicant is based upon the average number of employees, such application shall set forth the average number of employees for the applicable period;

6. A certification that the business will be operated in accordance with all applicable federal, state and city laws and regulations;

7. Any further information which the collector may require to enable him to issue the type of license applied for.

B. If the amount of the license tax to be paid by the applicants is measured by average number of employees, he shall estimate the average number of employees for the period to be covered by the license to be issued. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, that the amount of the license tax so determined shall be tentative only and such person shall, within 30 days after the expiration of the period for which such license was issued, furnish the collector with a sworn statement showing the actual number of employees during such period and pay any additional amount of license tax due at that time.

C. Where application is made for a license to do business in the city, the collector may require approval of such application from the police, fire, health, building and planning departments showing that the premises and operations therein conform to the provisions of this code and other regulatory ordinances of the city.

D. A business license may be issued to an applicant showing only the address of a place of residence in those cases where the city requires the applicant to have a business license for business being conducted elsewhere in the city and the applicant can provide no other business address; provided, however, no business may be conducted at such place of residence. (Ord. 06-1933 § 1, 2006; Ord. 1429 § 1, 1979; 1964 Code § 15.16.)

5.04.165 Unlawful business.

No license issued pursuant to this title shall be construed as authorizing the conduct or continuance of any unlawful business or the provision or sale of any service or product that is illegal under the laws of the United States, the laws of the state of California, or any ordinance of the city. Licenses issued to unlawful businesses or businesses providing or selling illegal services or products shall be subject to revocation in accordance with CMC 5.04.035. This section is declaratory of existing law. (Ord. 06-1933 § 2, 2006.)

5.04.170 License – Renewal.

In all cases, the applicant for the renewal of a license shall submit to the collector for his guidance in ascertaining the amount of the license tax to be paid by the applicant a sworn statement, upon a form to be provided by the collector, setting forth such information concerning the applicant’s business during the preceding year as may be required by the collector to enable him to ascertain the amount of the license tax to be paid by the applicant pursuant to the provisions of CMC 5.04.010 through 5.04.580. (1964 Code § 15.17.)

5.04.180 License – Statement verification.

No statements 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 hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector, his deputies or authorized employees of the city, who are authorized to examine, audit and inspect such books and records of any licensee or applicant for license as may be necessary in their judgment to verify or ascertain the amount of license tax due. (1964 Code § 15.18.)

5.04.190 License – Information confidential.

The statement filed pursuant to the information required by the collector in ascertaining the amount of license tax to be paid shall be deemed confidential in character, and shall not be subject to public inspection; provided, that nothing in this section shall be construed to prevent:

A. 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 CMC 5.04.010 through 5.04.580 or collecting taxes imposed hereunder;

B. The disclosure of information to or the examination of records by federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena;

C. 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 taxpayers to the city;

D. The disclosure after the filing of a written request to that effect to the taxpayer himself or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, 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; further provided, that the city attorney approves each such disclosure and that the collector may refuse to make any disclosure referred to in this subsection when in his opinion the public interest would suffer thereby;

E. The disclosure of the names and addresses of persons to whom licenses have been issued and the general type or nature of their business;

F. The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of license taxes, or submits an offer of compromise with regard to a claim asserted against him by the city for license taxes, or when acting upon any other matter;

G. The disclosure of general statistics regarding taxes collected or business done in the city. (1964 Code § 15.19.)

5.04.200 License tax – Alternate determination – Appeal.

If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the collector he fails to file a corrected statement, or if any person subject to the tax imposed by CMC 5.04.010 through 5.04.580 fails to apply for a license, the collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain.

If the collector is not satisfied with the information supplied in statements or applications filed, he may determine the amount of any license tax due by means of any information he may be able to obtain.

If such a determination is made, the collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Covina, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within 15 days after the mailing or serving of such notice, make application in writing to the collector for a hearing on the amount of the license tax. If such application is made, the collector shall cause the matter to be set for hearing within 15 days before the city council. The collector shall give at least 10 days’ notice to such person of the time and place of hearing in the manner prescribed above for serving notices of assessment. The 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 above for serving notices of assessment. (1964 Code § 15.20.)

5.04.210 License – Determination appeal.

Any person aggrieved by any decision of the collector with respect to the issuance or refusal to issue such license may appeal to the council by filing a notice of appeal with the city clerk. The council shall thereupon fix a time and place for hearing such appeal. The city clerk 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 Covina, California, postage prepaid, addressed to such person at his last known address. The council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provisions of this code. (1964 Code § 15.21.)

5.04.220 License – Transferability – Exemptions.

No license issued pursuant to CMC 5.04.010 through 5.04.580 shall be transferable; provided, that 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 in an amount that may be set from time to time by a resolution of the city council, have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business is or is to be moved; provided further, that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer shall not be prohibited by this section. For the purpose of this section, stockholders, bondholders, partnerships or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corporation or other entity. (Ord. 09-1975 § 1, 2009; 1964 Code § 15.22.)

5.04.230 License – Replacement.

A duplicate license may be issued by the collector to replace any license previously issued under CMC 5.04.010 through 5.04.580 which has been lost or destroyed, upon the licensee filing statement of such fact and at the time of filing such statement paying to the collector a duplicate license fee as established by the city council on occasion by resolution. (Ord. 04-1906 § 1, 2004; 1964 Code § 15.23.)

5.04.235 Business license application fee.

An application for a business license to be issued under CMC 5.04.010 through 5.04.580 shall be accompanied by a fee for processing as established by the city council on occasion by resolution. (Ord. 04-1906 § 2, 2004.)

5.04.240 License – Posting and keeping.

A. Any licensee transacting and carrying on business at a fixed place of business in the city shall keep the 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 at a fixed place of business in the city shall keep the license upon his person at all times while transacting and carrying on the business for which it is issued.

C. Whenever identifying stickers, tags, plates or symbols have been issued for each vehicle, device, machine or other piece of equipment included in the measure of a license tax, the person to whom such stickers, tags, plates or symbols have been issued shall keep firmly affixed upon each vehicle, device, machine or piece of equipment the identifying sticker, tag, plate or symbol which has been issued therefor at such locations as are designated by the collector. Such sticker, tag, plate or symbol shall not be removed from any vehicle, device, machine or piece of equipment kept in use during the period for which the sticker, tag, plate or symbol is issued.

D. No person shall fail to affix, as required in this section, any identifying sticker, tag, plate or symbol to the vehicle, device, machine or piece of equipment for which it has been issued at the location designated by the collector, or to give away, sell or transfer such identifying sticker, tag, plate or symbol to another person, or to permit its use by another person. (1964 Code § 15.24.)

5.04.250 License – Term – Tax payment.

All licenses, unless otherwise expressly stated in CMC 5.04.010 through 5.04.580, shall be annual licenses and shall be payable in advance in lawful money of the United States to the collector on the first day of January of each year, and all such licenses shall expire on December 31st of each year; provided, that license taxes covering new operations commenced after the first day of July may be prorated for the balance of the license period to be 75 percent of the annual license tax prescribed for such business, and new operations commenced after the first day of October may be prorated for the balance of the license period to be 50 percent of the annual license tax prescribed for such business.

Licenses for any shorter period of time shall be payable in advance as issued and shall expire at the close of the period of which the same may be issued. No greater or lesser amount shall be charged or received than is provided in CMC 5.04.010 through 5.04.580, and no license shall be issued for any period of time other than as provided in CMC 5.04.010 through 5.04.580. (Ord. 1447 § 1, 1979; 1964 Code § 15.25.)

5.04.260 License tax – Delinquent payment penalty.

For failure to pay a license tax when due, the collector shall add a penalty of 20 percent of the original license tax on the first 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. 1447 § 1, 1979; 1964 Code § 15.26.)

5.04.270 License tax – Refunds.

Refund of any amount, penalty or interest which has been paid more than once or has been erroneously or illegally collected or computed may be allowed by the finance director with the approval of the city treasurer; provided, that a written claim stating the specific grounds upon which the claim is founded has been filed with the finance director within six months after the overpayment was made. Failure to file a claim within the time prescribed constitutes a waiver of any demand against the city on account of any of the foregoing. If a refund is approved, the overpayment shall be credited on any amount then due from the payor under this article, and the balance shall be refunded to the payor or his successors, administrators or executors. If disallowed, notice of disallowance shall be served by the finance director on the claimant personally or by mail. If by mail, service shall be made pursuant to Section 1013 of the Code of Civil Procedure of the state and shall be addressed to the claimant at his address as it appears in the records of the finance director. (Ord. 1193 § 2, 1972; 1964 Code § 15.27.)

5.04.280 Enforcement.

It shall be the duty of the collector and he is directed to enforce each and all of the provisions of CMC 5.04.010 through 5.04.580, and the police chief shall render such assistance in the enforcement hereof as may from time to time be required by the collector or the city council.

The collector, in the exercise of the duties imposed upon him hereunder 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 CMC 5.04.010 through 5.04.580 have been complied with.

The collector and each and all of his assistants and any police 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 herein and demand an exhibition of its license. Any person having such license theretofore issued, in his possession or under his control, who willfully fails to exhibit the same on demand, is guilty of a misdemeanor and subject to the penalties provided for by the provisions of this code. The collector and each and all of his deputies or duly authorized assistants and any police officer are authorized and empowered to enforce the provisions of CMC 5.04.010 through 5.04.580 by means of arrest of, including the issuance of a written notice to appear, or by causing a complaint to be filed against, any and all persons found to be violating any of said provisions. (Ord. 1353 § 1, 1977; 1964 Code § 15.28.)

5.04.290 License tax a debt.

The amount of any license tax and penalty imposed by the provisions of CMC 5.04.010 through 5.04.580 is 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. (1964 Code § 15.29.)

5.04.300 Remedies cumulative.

The conviction and fine or imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business, nor shall the payment of any license tax prevent a criminal prosecution for the violation of any of the provisions of CMC 5.04.010 through 5.04.580. All remedies prescribed under CMC 5.04.010 through 5.04.580 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 CMC 5.04.010 through 5.04.580. (1964 Code § 15.30.)

5.04.310 Limitations.

Neither the adoption of CMC 5.04.010 through 5.04.580 nor their superseding of any portion of any other ordinance of the city shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in CMC 5.04.010 through 5.04.580, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.

Where a license for revenue purposes has been issued to any person by the city and the tax paid for the business for which the license has been issued under the provisions of any ordinance heretofore enacted and the term of such license has not expired, then the license tax prescribed for such business by CMC 5.04.010 through 5.04.580 shall not be payable until the expiration of the term of such unexpired license. (1964 Code § 15.31.)

5.04.320 Violation a misdemeanor.

Any person violating any of the provisions of CMC 5.04.010 through 5.04.580 or knowingly or intentionally misrepresenting to any authorized officer of the city any material fact in procuring the license or permit provided for in CMC 5.04.010 through 5.04.580 is guilty of a misdemeanor. (1964 Code § 15.32.)

Article II. Business License Tax Rates

5.04.330 Generally.

The amount of license tax to be paid to the city by any person engaged in or carrying on any profession, trade, calling, occupation or business designated in CMC 5.04.010 through 5.04.580 is fixed and established as provided in CMC 5.04.340 through 5.04.580. (1964 Code § 15.33.)

5.04.340 Advertising – Outdoor advertising.

Every person engaged in the business of constructing, erecting, installing, maintaining or operating outdoor advertising, advertising structures, billboards, advertising signs, painted signs on structures, signboards or similar devices shall pay a license tax of $60.00 per year for each advertising structure so used; provided, that the provisions of this section shall not apply to signs affixed to the building in which a licensed business is being operated, which signs refer only to such business, nor to “for sale” or “for rent” signs on real estate. (Ord. 1530 § 1, 1982; 1964 Code § 15.34.)

5.04.350 Advertising – Benches.

Every person engaged in the business of erecting or maintaining any bench upon which any kind of advertising matter is placed or displayed shall pay a license tax of $60.00 per year for the first advertising bench, plus $7.00 per year for each additional bench. (Ord. 1530 § 1, 1982; Ord. 1390 § 1, 1978; Ord. 1304 § 1, 1975; Ord. 1287 § 1, 1974; 1964 Code § 15.35.)

5.04.360 Advertising – Searchlights.

Every person engaged in the business of operating any wheeled vehicle equipped with a searchlight for attracting attention shall pay a license tax of $5.00 per day for each vehicle so used. (1964 Code § 15.36.)

5.04.370 Advertising – Vehicles.

Every person engaged in the business of operating and who operates upon public streets or property any vehicle equipped with a musical device, loudspeaker, sign or other advertising matter and devices for attracting attention shall pay a license tax of $10.00 per day for each vehicle so used. (1964 Code § 15.37.)

5.04.380 Amusement and vending machines.

A. Vending and amusement machines shall be taxed as follows:

1. Every person who permits, upon premises over which that person has control, either as a business or in connection with any business, the use or operation of any pinball machine, or any mechanical, electric or electronic amusement or game machine or device, or other similar apparatus, the operation or use of which results from, or is permitted or allowed by, the insertion of any coin, slug or token of value into the machine, device, game or apparatus, or into any device or receptacle attached thereto, or by the payment of any fee or fees, shall pay a business license tax therefor of $75.00 per year or fractional part thereof for each such machine, device, game or apparatus.

2. Every person renting, leasing, owning or maintaining as a business, or in connection with any business, any jukebox or any other similar mechanical, electric, or electronic apparatus for the playing of records or music, any vending machine, or any washing machine or dryer, the operating or use of which results from, or is permitted or allowed by, the insertion of any coin, slug, or token of value into such apparatus or into any receptacle attached thereto, or by the payment of any fee or fees, shall pay a license tax therefor based upon the gross receipts derived within the city limits directly attributable to the machines located within the city in the amount of $30.00 for the first $5,000 or fractional part thereof, plus $1.50 for each additional $1,000 or fractional part thereof in excess of $5,000. The city may demand an audit of any such licensee and require him to submit a copy of the state sales and use tax returns filed relative to such machines.

B. Every coin- or token-operated device or contraption of any kind, including amusement machines, music boxes, and vending machines, shall have securely affixed thereto in a conspicuous location a statement of the name, address and telephone number of the person maintaining, operating or supplying same and shall be provided by the owner or operator of the machine at his expense.

C. Each person owning or operating such machines shall file with the license collector a complete list of all such machines or devices owned by him or under his control and operated within the city, including the kind of machine or device, its serial number, the location where each machine or device is to be operated, and such other information as the license collector deems necessary, and shall keep such list updated as machines are added or replaced. The owner or person in control of the business establishment wherein the machine or device, as described in subsection (A)(2) of this section, is located shall be responsible for the full amount of the business license tax required hereunder if the owner of the machine or device has not paid the license tax due and payable thereon; however, penalties shall not accrue against the business owner until the month following his original billing.

D. The license collector shall seal the coin opening or slots in a manner which will render inoperative the coin-operating device upon any vending machine or any mechanical amusement device which is available to the public for operation and to which no city identification is attached as required by this code. A filing and processing fee in the amount of $10.00 shall be paid to the license collector by the owner or operator of any such machine so sealed for the removal of any such seal. No person shall operate or permit the operation of any machine so sealed, without first submitting evidence to the license collector that a valid business license is in effect, and that the filing and processing fee has been paid. It is unlawful for any person other than the license collector to break or remove any such seal.

E. No license tax or identification shall be required for the maintenance or operation of any postage stamp machine, newsrack, as defined in CMC 11.32.020, or from machines vending items for $0.10 or less.

F. No license tax or identification shall be required for any vending machine which is entirely owned and supplied by the owner or operator of the premises where installed or his employees and is maintained solely for the convenience of employees, visitors or customers and from which profit is not derived by him or the business, either directly or indirectly.

The license taxes prescribed in this section for the first unit of gross receipts shall be due and payable at the time the application for the license is filed. Within 30 days after the end of the calendar year for which the license is issued or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicant, as the case may be, shall file a declaration under penalty of perjury specifying the total amount of gross receipts received from the operation of the machine during the license period. If any additional taxes are due upon the basis of the gross receipts from any such machine, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued.

As used in this section, “gross receipts” means the total number of dollars actually removed from the machine during the license period without any deduction whatsoever. (Ord. 1554, 1983; Ord. 1530 § 1, 1982; Ord. 1527 §§ 1, 2, 1982; Ord. 1456 § 1, 1980; Ord. 1447 § 1, 1979; 1964 Code § 15.38.)

5.04.400 Bowling alleys or billiards and similar devices.

Every person engaged in a business where billiards or pool are played, or bowling or tenpin alleys, shuffleboard, table shuffleboards, skee-ball or any similar device not operated by the insertion of any coin, slug, or token into any receptacle attached thereto, shall pay a license tax of $40.00 per year for the first table, alley or device, plus $12.00 per year for each additional table, alley or device, and such license shall include the right to sell tobacco, confections, soft drinks and lunches. (Ord. 1530 § 1, 1982; 1964 Code § 15.40.)

5.04.410 Carnivals, circuses and similar exhibitions.

Every person conducting, managing, or carrying on any transient fair, carnival, circus, theatrical performance or other similar exhibition shall pay a license tax of $190.00 per day while same is in operation. No license shall be issued under this section until an application has been made and a permit issued and in full force and effect as required by CMC Title 17. (Ord. 1530 § 1, 1982; 1964 Code § 15.41.)

5.04.420 Contractors.

A. Every person engaged in the business of general engineering contractor or general building contractor and licensed as such by the state shall pay a license tax of $70.00 per year.

B. Every person engaged in the business of specialty contractor, including, but not limited to, electrical, plumbing, painting, roofing, etc., and licensed as such by the state, shall pay a license tax of $60.00 per year.

C. No license shall be required from an owner of property who builds or improves structures thereon or appurtenances thereto and does such work himself for his own use and occupancy, but shall be required when any building which is being constructed is intended or offered for sale or constructed as a business venture with the purpose of gain or profit. (Ord. 1530 § 1, 1982; 1964 Code § 15.42.)

5.04.430 Dancing and entertainment.

A. Every person engaged in the business of conducting, maintaining or operating a public dance or cafe dance open to the public, with or without charge, shall pay an annual license tax of $150.00.

B. Every person engaged in the business of conducting a dance hall, night club, restaurant, hotel, cafe, coffee shop, cabaret, club, barroom, beer tavern, or beer garden, in which entertainment as defined in Chapter 5.28 CMC is conducted, shall pay an annual license tax of $100.00.

C. No license shall be issued under this section until an application has been made and a permit issued and in full force and effect as required by Chapter 5.28 CMC. (1964 Code § 15.43.)

5.04.440 Delivery/service vehicles.

Every person not having a fixed place of business in the city who makes retail deliveries in the city of any goods, wares or merchandise of any kind by vehicle, or wholesale deliveries more frequently than twice each month, or who provides any service by the use of vehicles in the city and who serves regular customers on a regularly established route, shall pay an annual license tax of $45.00 per vehicle so used in the business in the city, except when a different license tax is specifically provided for by some other subsection of CMC 5.04.010 through 5.04.580. (Ord. 1530 § 1, 1982; 1964 Code § 15.44.)

5.04.445 Fortune-telling.

Every person engaged in the business of fortune-telling as defined in Chapter 5.60 CMC shall pay a license tax of $300.00 per year. (Ord. 1609 § 3, 1985.)

5.04.450 Hospitals.

Every person engaged in the business of conducting, managing or operating a hospital, nursing home, convalescent home, maternity home or any other place where care or treatment is provided shall pay a license tax of $50.00 per year, plus $4.00 per year for each bed. (Ord. 1530 § 1, 1982; 1964 Code § 15.45.)

5.04.460 Laundromats.

Every person engaged in the business of operating a self-service laundry, laundromat or dry cleaners shall pay a license tax of $52.00 per year, plus $1.25 cents per year for each machine over 30. (Ord. 1530 § 1, 1982; 1964 Code § 15.46.)

5.04.470 Manufacturers, wholesalers and industrial businesses.

Every person engaged in the business of manufacturing, warehousing or distributing any product, selling at wholesale or conducting any business considered to be of a manufacturing or industrial nature, unless otherwise expressly provided for elsewhere in CMC 5.04.010 through 5.04.580, shall pay an annual license tax of $50.00, plus $5.00 per year for each employee of the first 24 employees in excess of one, plus $4.00 per year for each employee in excess of 25. (Ord. 1530 § 1, 1982; 1964 Code § 15.47.)

5.04.480 Pawnbrokers.

Every person engaged in the business of pawnbroker shall pay a license tax of $150.00 per year. (Ord. 1530 § 1, 1982; 1964 Code § 15.48.)

5.04.490 Professions.

All persons engaged in any business, profession or occupation hereinafter enumerated in this section, and other similar callings considered to be of a professional nature, shall pay an annual license tax based upon the average number of professional members and the average number of employees, computed as follows: for the first member of the firm practicing his profession, $52.00 per year, plus the sum of $30.00 per year for each additional professional, plus $8.00 per year for each of the first four employees, plus $6.00 per year for each additional employee. No license shall be required from a professional person under this section not having a fixed place of business within the city who is called upon to come to the city to render services on a nonrecurring basis:

A. Architects;

B. Attorneys;

C. Certificate public accountants;

D. Chiropractors;

E. Dentists;

F. Engineers (all types);

G. Funeral directors and morticians;

H. Ophthalmologists and oculists;

I. Optometrists;

J. Osteopaths;

K. Physicians and surgeons;

L. Podiatrists;

M. Psychiatrists;

N. Psychologists;

O. Public accountants;

P. Veterinarians. (Ord. 1530 § 1, 1982; 1964 Code § 15.49.)

5.04.500 Rental accommodations.

Every person engaged in the business of conducting or operating a hotel, motel, rooming house, boardinghouse, lodging house, bungalow court, apartment house, inn, mobile home park, trailer court or any other accommodations for dwelling, sleeping or lodging in any place, whether occupied or not, shall pay an annual license tax of $38.00 for four or more rental units, plus $6.00 per year for each rental unit over four. (Ord. 1530 § 1, 1982; 1964 Code § 15.50.)

5.04.510 Retail, services and general businesses.

A. Every person engaged in the business of selling to the general public at retail, goods, wares, merchandise or services, or conducting a business of a retail or service nature, unless otherwise expressly provided for in CMC 5.04.010 through 5.04.580 and 11.48.010, and all persons engaged in any business or occupation not specifically provided for elsewhere in CMC 5.04.010 through 5.04.580 and 11.48.010, shall pay an annual license tax of $52.00, plus $8.00 per year for each employee of the first four employees in excess of one, plus $6.00 per year for each employee in excess of five.

B. Every business vendor engaged in the business of selling to the general public at retail, goods, wares, merchandise or services at a city sponsored/cosponsored event may elect to pay a daily license tax of $15.00 as an alternative to subsection (A) of this section. (Ord. 02-1890 § 3, 2002; Ord. 94-1774 § 1, 1994; Ord. 1530 § 1, 1982; 1964 Code § 15.51.)

5.04.520 Rubbish and junk collectors.

Every person engaged in the business of collecting, delivering, buying or selling or otherwise dealing in junk, salvage, rubbish, waste or garbage in the city from any premises in the city shall pay an annual license tax of $77.00 for the first vehicle, plus $64.00 per year for each additional vehicle so operated, and be subject to and governed by Chapter 8.08 CMC and any other regulatory laws or ordinances. (Ord. 1530 § 1, 1982; 1964 Code § 15.52.)

5.04.530 Shoeshining stands.

Every person engaged in the business of operating a shoeshining or shoe-polishing stand shall pay a license tax of $15.00 per year. (Ord. 1530 § 1, 1982; 1964 Code § 15.53.)

5.04.540 Skating rink.

Every person engaged in the business of operating any ice or roller skating rink shall pay an annual license tax of $180.00. (Ord. 1530 § 1, 1982; 1964 Code § 15.54.)

5.04.550 Solicitors and peddlers.

A. Every person not having a fixed place of business in the city who engages in the business of selling or offering for sale any goods, wares or merchandise, or any article or services, or conducting surveys or polls, or any other form of activity involving canvassing, soliciting or peddling from house to house or place to place, or upon the streets and public places within the city, shall pay a license tax of $15.00 per day or $40.00 per calendar quarter, with no proration thereof, for each solicitor or peddler so engaged. No person shall be issued a license for carrying on the business set forth in this section unless a permit therefor, in full force and effect, has been issued by the finance director in accordance with the terms and provisions of Chapter 5.24 CMC.

B. Notwithstanding the foregoing or any other provisions of CMC 5.04.010 through 5.04.580, the collector may issue a principal solicitor’s license to every person either employing or contracting with one or more individuals for solicitor’s services as hereinbefore defined. If a principal solicitor elects to use the provisions of this subsection, no principal solicitor’s license shall be issued until the applicant files with the collector a list of all solicitors employed or retained by the applicant or with whom the applicant has a contract, and unless the applicant executes an agreement that he will, within five days thereafter, notify the collector in writing of every change in personnel of those soliciting for him. In such an event, the solicitor’s license tax shall be included within the principal solicitor’s license tax, but each individual solicitor must obtain a permit in accordance with the terms and provisions of Chapter 5.24 CMC. Nothing herein contained shall be deemed to grant to a principal solicitor the privilege of soliciting unless there is maintained in full force and effect for each individual solicitor a permit in accordance with the terms and provisions of Chapter 5.24 CMC. The license tax for a principal solicitor’s license shall be $200.00 annual tax, with no proration thereof. (Ord. 1530 § 1, 1982; 1964 Code § 15.55.)

5.04.560 Taxicabs.

Every person operating any taxicab for carrying passengers for hire shall pay an annual license tax of $52.00 for the first vehicle so operated, plus $35.00 per year for each additional vehicle; provided, that no license shall be issued under this section until full compliance has been made and approval granted as required by Chapter 5.44 CMC. (Ord. 1530 § 1, 1982; 1964 Code § 15.56.)

5.04.570 Theaters – Generally.

For conducting, managing or carrying on a motion picture theater or any other type theater or auditorium, the annual license tax shall be based on the number of spectator seats or car spaces as follows:

0 – 500 seats or spaces: $65.00

Over 500 seats or spaces: $0.20 each seat or space. (Ord. 1530 § 1, 1982; 1964 Code § 15.57.)

5.04.580 Theaters – Motion picture makers.

Every person engaged in the business of taking motion pictures for professional or commercial use shall pay a license tax of $300.00 per day. (Ord. 1530 § 1, 1982; 1964 Code § 15.58.)

Article III. Shoppers Lane Parking Improvement Area

5.04.590 Establishment.

A parking improvement area, denoted as “Shoppers Lane parking improvement area,” has been established by the ordinance codified in this article. (1964 Code § 17A.1.)

5.04.600 License tax – Subject businesses.

All businesses within the Shoppers Lane parking improvement area, except those exempt by law, are subject to the taxes imposed by this article. (1964 Code § 17A.2.)

5.04.610 License tax – Imposition.

There is imposed on all businesses within the Shoppers Lane parking improvement area a special business license tax, in addition to the business license tax required by CMC 5.04.010 through 5.04.580. The provisions of CMC 5.04.030 shall not relieve any business from the payment of the special business license tax provided for by this article, and the tax imposed hereby is in addition to any and all other taxes imposed by any other ordinance of the city. (1964 Code § 17A.3.)

5.04.620 License tax – Computation.

Taxes imposed by this article shall be computed according to the following rates and classifications: Each business within the Shoppers Lane parking improvement area shall pay an annual special business tax equal to one-half times the annual principal business license fee. (Ord. 1194 § 1, 1972; 1964 Code § 17A.4.)

5.04.630 Business licensing.

Businesses required to pay taxes under this article shall obtain licenses in accordance with the provisions of CMC 5.04.010 through 5.04.580. (1964 Code § 17A.5.)

5.04.640 License tax – Payment – Procedure.

Taxes imposed by this article shall be paid in accordance with the provisions of CMC 5.04.010 through 5.04.580 and this article, in the same manner and at the same time as annual license fees. (1964 Code § 17A.6.)

5.04.650 License tax – Payment – Refusal.

No person shall fail or refuse to pay any tax imposed by this article, and all civil and criminal penalties and interest provided for in CMC 5.04.010 through 5.04.580 shall apply to the taxes imposed by this article. (1964 Code § 17A.7.)

5.04.660 License tax – Contributions by exempt businesses.

Any business which is exempt by law from the payment of the tax or whose place of business is outside the Shoppers Lane parking improvement area may make a voluntary contribution to the parking improvement area for the purposes provided in this article. (1964 Code § 17A.8.)

5.04.670 License tax – Disposition.

The purposes for which the taxes imposed by this article shall be used, less the cost of collection, are the following: the construction or maintenance of parking facilities for the benefit of the area. (1964 Code § 17A.9.)

5.04.680 Fund – Created.

There is created a special fund designated as the “Shoppers Lane parking improvement area fund” into which all revenues derived from taxes and contributions under this article, less the cost of collection, shall be placed, and such funds shall be used only for the purposes specified in CMC 5.04.670. (1964 Code § 17A.10.)

5.04.690 Fund – Expenditures.

The city council may annually approve a budget to include an estimate of expenditures to be made from the Shoppers Lane parking improvement area fund to carry out the purposes of CMC 5.04.670. (1964 Code § 17A.11.)

For statutory provisions authorizing cities to license for regulation and revenue all lawful businesses, see Government Code § 37101; for statutory provisions authorizing cities to license business in the exercise of the police power and for the purpose of regulation, see Business and Professions Code §§ 16000 – 16003.