I. BUSINESS LICENSES GENERALLY
Chapter 5.04
GENERAL PROVISIONS
Sections:
5.04.010 Revenue measure.
5.04.020 Article not exclusive.
5.04.030 License and tax requirements.
5.04.040 License—Separate for branch establishments or multiple legal entities.
5.04.050 Evidence of doing business.
5.04.060 Constitutional apportionment.
5.04.070 Exemptions.
5.04.080 Effect of article on past actions and unexpired licenses.
5.04.010 Revenue measure.
This article is enacted solely to raise revenue for municipal purposes and is not intended for regulation. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-102)
5.04.020 Article not exclusive.
Persons required to pay a license tax for transacting and carrying on any business under this article shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance or provision of this code, and shall remain subject to the regulatory provisions of other ordinances and code provisions. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-103)
5.04.030 License and tax requirements.
A. There are imposed upon the businesses, trades, professions, callings and occupations specified in this article 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 procuring a license from the city so to do and paying the tax hereinafter prescribed or without complying with any and all applicable provisions of this article.
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 statutes of the United States or of the state of California. 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 article. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-104)
5.04.040 License—Separate for branch establishments or multiple legal entities.
A separate license must be obtained for each legal entity, 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 licensed under the provisions of this article shall not be deemed separate places of business or branch establishments. Any person conducting multiple businesses, but for which those businesses use a single set or integrated set of books and records, shall pay only one tax calculated on all gross receipts of the businesses. The number of separate legal entities conducting business in the same location but using separate sets for books and records for which business license taxes must be paid is limited as specified in Section 5.24.020. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-105)
5.04.050 Evidence of doing business.
When any person, by use of signs, circulars, cards, telephone books or newspapers, advertises, holds out or represents that he is conducting business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he is conducting business in the city, and such person fails to deny by a sworn statement given to the collector that he is not 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. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-106)
5.04.060 Constitutional apportionment.
A. No Undue Burden. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce or to violate the equal protection and due process clauses of the Constitutions of the United States and the state of California.
B. Apportionment Appeal Rights. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or to violate constitutional nexus requirements or other applicable law, the licensee or applicant may apply to the collector for an adjustment of the tax. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation, and, upon 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. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will ensure 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 as prescribed by this article. Should the collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the city or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor; provided, that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this article. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-107)
5.04.070 Exemptions.
A. Exemptions as Matter of Law. Nothing in this article 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 the state of California from the payment of such taxes as are prescribed in this article.
B. Charitable (Nonprofit) Organizations. No business license tax imposed under this article shall be deemed or construed to apply to any person transacting and carrying on any business, which business is conducted, managed or carried on wholly as an organization exempt from federal income taxes as defined under Section 501(c) of the United States Internal Revenue Code.
C. Farmers Markets. Nothing in this article shall be deemed or construed to apply to any person transacting and carrying on any business, which business is conducted, managed or carried on exclusively in participation with a farmers market approved by the city, whether held on public or private property.
D. Claiming an Exemption. Any person claiming an exemption pursuant to this section shall file a sworn statement with the collector stating the facts upon which exemption is claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this article. Businesses claiming an exemption under subsection B of this section shall be required to provide a copy of the Internal Revenue Service determination letter or similar document that certifies the exempt status granted under Section 501(c) of the Internal Revenue Code.
E. Non-Fee License Issuance. The collector shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the city of the business license tax required by this article.
F. Revocation of Exemption. The collector, after giving notice and a 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 exemption as provided in this section. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-108)
5.04.080 Effect of article on past actions and unexpired licenses.
A. Neither the adoption of the ordinance codified in this article nor its 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 herein, nor be construed to waive any tax or license requirement 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 pertaining thereto shall continue in full force and effect.
B. 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 the business by this article shall not be payable until the expiration of the term of such unexpired license. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-131)