Chapter 5.04 BUSINESS LICENSES GENERALLY

A. 1. “Average number of employees” shall be determined by taking the number of employees of a business who are earning wages for work done in the city during pay periods ending the nearest twelfth of each month as shown by Form DE3 of the State Department of Employment, or other form which may hereafter be adopted for reporting payments due under the Unemployment Insurance Act, for each month of the previous calendar year, adding the same and dividing by twelve. In determining the average number of employees for the year, fractions of one-half or more are to be considered as one whole employee. Fractions under one-half are to be excluded.

2. If any employer has been in business less than one year, the employer may use average number of employees for the last quarter. If the employer has not been in business for one quarter, he may estimate the average number of employees who will be employed by him in the city during the remainder of the calendar year.

3. Employers may be required to verify their figures by showing each relevant Form DE3 of the State Department of Employment or by another form which may hereafter be adopted for reporting payments due under the Unemployment Insurance Act.

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

C. “Employee” means all persons engaged in the operation or conduct of any business, whether as owner, any member of the owner’s family, partner, agent, manager, solicitor and any and all other persons employed or working in the business.

D. “Person” includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts, business, or common law trusts, societies and individuals transacting and carrying on any business in the city, other than as an employee.

E. “Tax collector” means the city clerk or any duly authorized employee of the city responsible for collection of business license taxes and/or any taxes imposed and collected by the city. (Ord. 77-6 § 1 (part): Ord. 118 § 1, 1966: prior code § 9200)

5.04.020 Revenue measure.

This Chapter is enacted solely to raise money for revenue for municipal purposes, and it is not intended for regulatory purposes. (Ord. 83-3 § 1, 1983: Ord. 80-2 § 1: Ord. 77-6 § 1 (part): Ord. 118 § 2, 1966: prior code § 9201)

5.04.030 Substitute for other revenue ordinances.

Persons required to pay a license 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 ordinance of the city, and shall remain subject to the regulatory provisions of such other ordinances. (Ord. 77-6 § 1 (part): Ord. 118 § 3, 1966: prior code § 9202)

5.04.040 License-required.

There are imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amount prescribed in Sections 5.04.130 through 5.04.160. 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 so to do or without complying with any and all applicable provisions of this chapter. Exemptions to this section are enumerated in Sections 5.04.200 through 5.04.280. (Ord. 77-6 § 1 (part): Ord. 118 § 5 (part), 1966: prior code § 9203)

5.04.050 License-branch establishments.

A separate license must 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 this chapter shall not be deemed to be separate places of business or branch establishments. (Ord. 77-6 § 1 (part): Ord. 118 § 6, 1966: prior code § 9204)

5.04.060 License-application-issuance and contents.

Every person required to have a license under the provisions of this chapter shall make application for the same to the tax collector of the city, and upon the payment of the prescribed license tax the tax collector shall issue to such person a license which shall contain:

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; and

E. Such other information as may be necessary for the enforcement of the provisions of this chapter. (Ord. 77-6 § 1 (part): Ord. 118 § 8, 1966: prior code § 9208)

5.04.070 Affidavit-first license.

A. Upon a person making application for the first license under this chapter or for a newly established business, such person shall furnish to the tax collector for his guidance in ascertaining the amount of license tax to be paid by the applicant, a written statement, upon a form provided by the tax collector, sworn to before a person authorized to administer oaths, setting forth such information as may be necessary to determine the amount of the license tax to be paid by the applicant.

B. The tax collector shall not issue to any such person another license for the same or any other business, until such person shall have furnished to him the written statement and paid the license tax as required in this chapter. (Ord. 77-6 § 1 (part): Ord. 118 § 9, 1966: prior code § 9209)

5.04.080 Affidavit-renewal license.

In all cases, the applicant for the renewal of a license shall submit to the tax collector for his guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement, upon a form to be provided by the tax collector, written under penalty of perjury, or sworn to before a person authorized to administer oaths, setting forth such information concerning the applicant’s business during the preceding year as may be required by the tax collector to enable him to ascertain the amount of the license tax to be paid by the applicant pursuant to the provisions of this chapter. (Ord. 77-6 § 1 (part): Ord. 118 § 10, 1966: prior code § 9210)

5.04.090 No license transferable-amended license for changed location.

No license issued pursuant to this Chapter 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 therefore and paying a fee of three dollars and fifty cents have the license amended to authorize the transacting and carrying on such business under the license at some other location to which the business is or is to be moved. (Ord. 2003-14, Amended, 01/06/2004; Ord. 77-6 § 1 (part): Ord. 118 § 15, 1966: prior code § 9216)

5.04.100 Unexpired licenses heretofore issued.

Where a license for revenue purposes has been issued to any business by the city and the tax paid therefor 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 chapter shall not be payable until the expiration of the term of such unexpired license. (Ord. 77-6 § 1 (part): Ord. 118 § 16, 1966: prior code § 9217)

5.04.110 Duplicate license.

A duplicate license may be issued by the tax collector to replace any license previously issued under this Chapter 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 tax collector a duplicate fee of three dollars and fifty cents. (Ord. 2003-14, Amended, 01/06/2004; Ord. 77-6 § 1 (part): Ord. 118 § 17, 1966: prior code § 9218)

5.04.120 Posting and keeping licenses.

All licenses must be kept and posted in the following manner:

A. Fixed Place of Business. Any licensee transacting and carrying on business at 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. No Fixed Place of Business. Any licensee transacting and carrying on business but not operating at a fixed placed of business in the city shall keep the license upon his person at all times while transacting and carrying on such business. (Ord. 77-6 § 1 (part): Ord. 118 § 18, 1966: prior code § 9219)

5.04.130 License tax-generally.

Every person transacting and carrying on any business other than those enumerated in Sections 5.04.140, 5.04.150 and 5.04.160 shall pay a license fee as follows:

A. First owner or employee, forty dollars annually;

B. All over one employee, in addition, each, ten dollars annually. (Ord. 83-3 § 2, 1983: Ord. 80-2 § 2 (part): Ord. 77-6 § 1 (part): Ord. 162 § 1, 1971: Ord. 118 §§ 21, 22, 1966: prior code § 9222)

5.04.140 License tax-flat rate.

Flat rate license taxes for the following enumerated businesses shall be as follows:

A. Dances, thirty dollars per day;

B. Auction houses, sixty dollars annually, plus two dollars per month for each occupied space or stall;

C. Astrologers, fortunetellers, seers, two hundred dollars per week;

D. Roominghouses and boardinghouses, ten dollars per quarter;

E. Skating rinks, twenty dollars per day;

F. Carnivals, street fairs, two hundred dollars per day;

G. Boxing and wrestling exhibitions, twenty-five dollars per day;

H. Solicitors, thirty dollars per day;

I. Itinerant vendors, hawkers, or peddlers, thirty dollars per day;

J. Wholesale suppliers of materials, goods and services to fixed places of business in the city shall pay a fee of ten dollars per quarter. (Ord. 80-2 § 2 (part): Ord. 77-6 § 1 (part): Ord. 162 § 2, 1971: Ord. 122 § 1, 1966: Ord. 118 § 23 (part), 1966: prior code § 9223)

5.04.150 License tax-delivery by vehicle.

A. Every person not having a fixed place of business within the city, who delivers goods, materials, services, wares, and/or merchandise to places within the city, shall pay a license tax of ten dollars per quarter.

B. Upon the issuance of a license to a person covered under this section, the tax collector shall deliver to the licensee one windshield sticker for each commercial vehicle used by the licensee in the conduct of his business, which windshield sticker shall be attached to the windshield of such vehicle. Each such sticker shall have thereon the words, “GALT, CALIFORNIA,” and shall be of such form and color and contain such information as the tax collector shall determine. (Ord. 80-2 § 2 (part): Ord. 77-6 § 1 (part): Ord. 118 § 24, 1966: prior code § 9224)

5.04.160 License tax-coin-operated vending machines.

A. As per Section 16002.5 of the Business and Professions Code of California, the license tax for any individual or firm whose business is limited exclusively to renting, leasing, or operating vending machines shall be based upon gross receipts. The following schedule is to be used in computing such tax in the city:


Gross Receipts	Amount of Tax
$1.00 to $5,000.00 5,001.00 and above	$40.00 annually 40.00 plus 3/10 of 1% (.003) per each additional dollar of gross receipts in excess of $5,000.00 annually.

When a merchandise vending machine is owned by the owner of a business upon whose premises the machine is located, then such machines shall be exempt from the payment of gross receipts tax; provided, a business license has been issued to such owner under the provisions of this chapter and the use of such vending machine is incidental to the business so licensed.

B. Upon the issuance of a license for any business covered by this section, the tax collector shall deliver to the licensee a sticker for each vending machine used by the licensee, which sticker shall be conspicuous on such machine, and shall contain such information as the tax collector shall determine. (Ord. 80-2 § 2 (part): Ord. 77-6 § 1 (part): Ord. 118 § 23 (part), 1966: prior code § 9225)

5.04.170 License tax-how and when payable.

A. Unless otherwise specifically provided, all annual license taxes, under the provisions of this Chapter, shall be due and payable in advance on the first day of January of each calendar year; provided, the license taxes covering new operations, commenced after the first day of January, may be prorated for the balance of the license period.

B. License taxes, in whole or in part, will not be returned to anyone who goes out of business between license tax due dates.

C. Except as otherwise provided in this chapter, license taxes, other than annual, required under this chapter shall be due and payable as follows:

1. Semiannual license taxes, on the first day of January and the first day of July of every year;

2. Quarterly license taxes, on the first day of January, April, July and October of every year;

a. Exception - Quarterly applicants doing business within the city limits on an ongoing basis pay license fees at the time of application or renewal for all quarters through calendar year end;

3. Monthly license taxes, on the first day of each and every month;

4. Weekly license taxes, on Monday of each week in advance;

5. Daily license taxes, each day in advance. (Ord. 2003-14, Amended, 01/04/2004; Ord. 89-03 § 1: Ord. 77-6 § 1 (part): Ord. 118 § 19, 1966: prior code § 9220)

5.04.180 License tax-penalty for failure to pay when due.

For failure to pay a license tax when due, the tax collector shall add a penalty of ten percent of the license tax on the last day of each month after the due date thereof, providing that the amount of such penalty to be added shall in no event exceed sixty percent of the amount of license tax due. (Ord. 77-6 § 1 (part): Ord. 118 § 20, 1966: prior code § 9221)

5.04.190 Evidence of doing business.

When any person, by use of signs, circular, cards, telephone book, or newspapers, 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 governmental agency indicating that he is in business in the city, and such person fails to deny by a sworn statement given to the tax collector that he is not conducting a business in the city, after being requested to do so by the tax collector, then these facts shall be considered prima facie evidence that he is conducting a business in the city. (Ord. 77-6 § 1 (part): prior code § 9205)

5.04.200 Exemption-businesses exempt under state or federal statutes.

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 the state from the payment of such taxes as are prescribed in this chapter.

B. 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 the state shall not be liable for payment of the tax imposed by this chapter. (Ord. 77-6 § 1 (part): Ord. 118 §§ 5, 7 (part), 1966: prior code § 9206 (part))

5.04.210 Exemption-charitable organizations.

A. The provisions of this Chapter shall not be deemed or construed to require the payment of a license tax to conduct, manage or carry on any business, occupation or activity from any institution or organization recognized by the State of California or Internal Revenue Service of the United States as a “domestic non profit organization” to conduct business which is wholly for benefit of charitable, religious or nonprofit purposes from which profit is not derived, either directly or indirectly, by any individual, provided, however, that nothing in this section shall be deemed to exempt any such organization or association from complying with any of the provisions of this chapter requiring a permit from the city council or any commission or officer to conduct, manage or carry on any profession, trade, calling or occupation.

B. The exemption provisions of this section shall be construed to extend only to the nonprofit aspects of a charitable organization’s activities or events. Any business conducted by an otherwise exempt charitable organization which is unrelated to the organization’s charitable purpose is subject to the business license tax.

C. The exemption provisions of this section shall not apply to any person, business, corporation or organization conducting any business, occupation or activity related to the business license tax provision of this chapter in conjunction with an exempt charitable organization unless the person or entity would separately qualify as an exempt charitable organization. Any non-exempt person or entity shall obtain a business license prior to commencing any business, occupation or activity in the city. (Ord. 2006-09, Repealed and Replaced, 07/18/2006)

5.04.215 Exemption - businesses owned and conducted by minors.

Businesses owned and conducted by minors under the age of eighteen (18) years shall be exempt from the business tax provisions of this Chapter where all of the following conditions exist and legal documentation is provided to support that:

A. All persons engaged in the operation of the business are under the age of eighteen (18) years;

B. All persons engaged in the operation of the business have a bona fide ownership interest in the business; and

C. Gross receipts do not exceed $5,000 per year.

(Ord. 2006-09, Added, 07/18/2006)

5.04.220 Exemption-businesses conducted in home in residential zone.

Every person commencing, transacting and carrying on in the city any business in a home in a residential zone, whose annual gross receipts from such business is one thousand dollars or less, shall be exempted from the payment of a license tax under this chapter. Where the annual gross receipts from such business exceeds such sum, all provisions of this chapter shall apply. To determine eligibility for the exemption, the owner of the business may be required to furnish a copy of schedule “C” from his latest Federal Income Tax form. If business has not been in existence long enough to have filed a schedule “C,” the person may be required to open his financial records to inspection and must then furnish a schedule “C” the following year. (Ord. 77-6 § 1 (part): Ord. 118 § 7 (part), 1966: prior code § 9206 (part))

5.04.225 Exemption - special events.

Sponsors of special events may request the City Council to waive the business license tax in part or whole for the event sponsor and/or participants of the special event when the waiver is for a limited period of time and the sponsor and/or participants do not otherwise conduct business within the City of Galt either directly or indirectly by posting, advertising or other means as described in this Chapter and, when the City Council determines a blanket waiver of the business license tax for such event is in the best interest of the City. (Ord. 2006-09, Added, 07/18/2006)

5.04.230 Exemption-persons discharged from armed services.

No license tax payable under this chapter section 5.04.130 shall be payable by any owner of any business who has received an honorable discharge from active duty, as disclosed on DD214, in one of the United States armed services. (Ord. 2000-01a, Amended, 02/15/2000, actual ord. 2000-01 (computer fatal error during input); (Ord. 77-6 § 1 (part): Ord. 118 § 7 (part), 1966: prior code § 9206 (part))

5.04.240 Exemption-farmers, poultry men, or horticulturists.

The provisions of this chapter shall not be deemed to include or apply to farmers, poultry men, or horticulturists, who may sell exclusively their own products. This exception shall not apply to nurseries or other establishments which buy goods for resale as well as selling their own goods. (Ord. 77-6 § 1 (part): Ord. 118 § 7 (part), 1966: prior code § 9206 (part))

5.04.250 Exemption-banks.

The provisions of this chapter shall not be deemed to include or apply to banks, including national banking associations by virtue of subdivision 1(a) of Section 27, Article XIII of the California Constitution. (Ord. 77-6 § 1 (part): Ord. 118 § 7 (part), 1966: prior code § 9206 (part))

5.04.260 Exemption-insurance company or association.

The provisions of this chapter shall not apply to any insurance company or association by virtue of subdivision (f) of Section 28, Article XIII of the California Constitution. (Ord. 77-6 § 1 (part): Ord. 118 § 7 (part), 1966: prior code § 9206 (part))

5.04.270 Exemption-intercity transportation business.

The provisions of this chapter shall not be deemed to include or apply to any intercity transportation business by virtue of Section 4303 of the Public Utilities Code of California. (Ord. 77-6 § 1 (part): Ord. 118 § 7 (part), 1966: prior code § 9206 (part))

5.04.280 Exemption-filing of claim statement.

Any person claiming an exemption pursuant to Sections 5.04.200 through 5.04.270 shall file a sworn statement with the tax collector stating the facts upon which the exemption is claimed. In the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this chapter. (Ord. 77-6 § 1 (part): Ord. 118 § 7 (part), 1966: prior code § 9206 (part))

5.04.290 Exemption-interstate commerce.

A. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce. In any case where a license tax is believed by a licensee or applicant for license to place an undue burden upon such commerce, he may apply to the city tax collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at, or within six months after payment of the prescribed license tax. The applicant shall, by affidavit and supporting testimony, show his method of business and such other information as the tax collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The tax collector shall then conduct an investigation, and, after having first obtained the written approval of the city attorney, shall fix as the license tax for the applicant, an amount that is reasonable and nondiscriminatory, or if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the tax collector shall have the power to base a license tax upon a percentage of gross receipts or any other measure which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this chapter. Should the tax 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 therefore provided that no additional license tax during any one calendar year shall be required after the licensee shall have paid an amount equal to the annual license tax as prescribed in this chapter.

B. Any person claiming an exemption pursuant to this section shall file a verified statement with the tax collector stating the facts upon which exemption is claimed.

C. The tax collector 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.

D. The tax collector, after giving notice and a reasonable opportunity for hearing 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 herein. (Ord. 77-6 § 1 (part): Ord. 118 § 7-A, 1966: prior code § 9207)

5.04.300 Statements not conclusive.

No statements shall be conclusive as to the matters set forth therein, nor shall the filing preclude the city from collecting by appropriate action such sum as is actually due and payable under this chapter. Such statement and each of the several items therein contained shall be subject to verification by payroll records upon request by the tax collector, his deputies, or authorized employees of the city. (Ord. 77-6 § 1 (part): Ord. 118 § 11 (part), 1966: prior code § 9211)

5.04.310 Confidentiality.

The information furnished or secured pursuant to sections 5.04.010, 5.04.070, 5.04.080 and 5.04.200 through 5.04.300 shall be confidential. Any unauthorized disclosure or use of such information by any officer or employee of the city shall constitute a misdemeanor and such officer or employee shall be subject to the penalties provided by section 21.01.050. (Ord. 2006-07, Amended, 06/06/2006; Ord. 77-6 § 1 (part): Ord. 118 § 11 (part), 1966: prior code § 9212)

5.04.320 Failure to file statement or corrected statement.

A. If any person fails to file any required statement within the time prescribed, or if after demand therefore made by the tax collector he fails to file a corrected statement, the tax collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain.

B. If such a determination is made, the tax 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 Galt, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within fifteen (15) days after the mailing or serving of such notice, make application in writing to the tax collector for a hearing on the amount of the license tax. Such hearing shall be set and conducted pursuant to section 21.03.060. (Ord. 2006-07, Amended, 06/06/2006; Ord. 77-6 § 1 (part): Ord. 118 § 12, 1966: prior code § 9213)

5.04.330 Judicial review.

Any person aggrieved by any decision of the hearing officer with respect to the issuance or refusal to issue such license may seek judicial review pursuant to section 21.03.070. (Ord. 2006-07, Repealed and Replaced, 06/06/2006)

5.04.340 Additional power of tax collector.

In addition to all other power conferred upon him, the tax collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding thirty days, and in such case to waive any penalty that would otherwise have accrued, and shall have the further power, with the consent of the council, to compromise any claim as to the amount of license tax due. (Ord. 77-6 § 1 (part): Ord. 118 § 14, 1966: prior code § 9215)

5.04.350 License tax a debt.

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 pursuant to sections 21.01.060 and 21.01.080. (Ord. 2006-07, Amended, 06/06/2006; Ord. 7706 § 1 (part): Ord. 118 § 26, 1966: prior code § 9226)

5.04.360 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. 77-6 § 1 (part): Ord. 118 § 27, 1966: prior code § 9227)

5.04.370 Violation and enforcement.

A. It shall be the duty of the tax collector and he or she is directed to enforce each and all of the provisions of this chapter, and the chief of police shall render such assistance in the enforcement of this chapter as may from time to time be required by the tax collector and the city council.

B. The tax collector and each and all of his or her 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 in this Chapter, and demand an exhibition of its license certificate. Any person having such license certificate heretofore issued, in his possession or under his control, who willfully fails to exhibit the same on demand shall be guilty of an offense and subject to the penalties as provided for by Chapter 21.01 of Title 21. (Ord. 2006-07, Amended, 06/06/2006; Ord. 92-04 § 7: Ord. 77-6 § 1 (part): Ord. 118 § 25, 1966: prior code § 9228)