Chapter 3.40 BUSINESS LICENSE TAX AND REGULATIONS

This chapter is enacted to raise revenue for municipal purposes and is not intended for regulation of businesses. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.020 General provisions--Definitions.

Except where the context otherwise requires, the definitions contained in this section shall govern the construction of this chapter. The word “may” is always directory and discretionary and not mandatory; the word “shall” is always mandatory and not directory or discretionary. All following definitions refer to business operations in the city:

“Business” means professions, trades and occupations and all and every kind of calling or enterprise and carried on for profit or livelihood. Doing business includes, as well, persons holding a fictitious business name certificate, a State Board of Equalization resale permit, a listing in the commercial directory of Pacific Bell Yellow Pages, Pacific Bell Business White Pages, newspaper, local business guide, real estate multiple listing book, and other similar listings.

“Carnival” means all manner of sideshows, freak or other exhibitions, feats of strength, games of skill, merry-go-rounds, ferris wheel or any other amusement device (mechanical or otherwise), merchandise booths for the sale of novelties or notions, and all other activities incident to a carnival presented upon the streets, or parking lots or vacant property within the city, and for which a charge of admission is made, either for general entrance or for entrance into or participation in any portion or department thereof.

The terms “certified farmers’ market” and “producer” shall have the same meaning as defined in Section 1392.2, “Definitions,” of Article 6.5 of Subchapter 4 of Chapter 1 of Division 3 of Title 3, “Food and Agriculture,” of the California Code of Regulations.

“Circus” means any exhibition of a menagerie or collection of animals, feats of horsemanship, acrobatic performances, wire or rope dancing, clowns, singers or any other show held in a tent or under canvas cover or in a building and for which a charge of admission is made.

“City” means the city of Half Moon Bay, California, including all of the territory and jurisdiction thereof as presently constituted, and any and all of the same which shall later come into existence by any manner or means whatsoever.

“Collector” or “director” means the director of finance of the city.

“Contractor” means an individual or entity, as defined by and as required to be licensed under the California Business and Professions Code, generally involved in any aspect of design, construction, maintenance or repair of structures, and improvement to real property.

“Employee” means any person working in, or engaged in, the operation or conduct of any business, excluding independent contractors, including, but not limited to, the owner, a member of the owner’s family, any person on the business payroll, partner, officer, agent, manager, full or part-time.

“Fixed place of business” means a structure occupied by a business in the city which is regularly kept open with someone in charge thereof for the transaction of business during customary business hours. Upon approval of the city council, businesses may be considered “fixed places of business” although no structure exists on the premises.

“Flea market” means a market, with no fixed place of business, usually in the open air, selling antiques, used household goods and curios, and the charging of person to sell new or used merchandise. The sponsor shall get a flea market permit.

“Independent contractor” means a nonemployee working at a business.

“Licensee” means any person to whom a business license has been issued pursuant to this chapter.

“No fixed place of business” means any business that does not come within the definition under “fixed place of business” in this chapter. A “home occupation” shall be considered as being within the definition of “no fixed place of business.”

“Pawnbroker” means any person who receives personal property in pledge as security for a loan and includes any person who purchases personal property absolutely but gives the seller a preference right to purchase back the personal property.

“Peddler” means a person selling an item with no fixed place of business.

“Person” means all firms; domestic and foreign corporations; associations; syndicates; partnerships; joint ventures; clubs; trusts; societies; and any officer or agent thereof; and any natural person transacting, engaging in or carrying on any business in the city but excluding an employee.

“Solicitor” means a person taking sales orders with no fixed place of business. (Ord. C-2014-04 §3(A), 2014; Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.030 General provisions--Compliance with other requirements.

Any person required to pay a business license tax under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other provision of this code, and shall remain subject to the regulatory provisions of other chapters of this code. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.040 General provisions--Effective date of tax.

The taxes imposed by this chapter shall become operative as of July 1, 1993. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.050 Exemptions--Exclusions.

A. Businesses Exempt by Constitution or Statutes. Nothing contained in this chapter shall be deemed or construed as applying to any person transacting, engaging in 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 payment of taxes prescribed herein.

B. Charitable Organization. Nothing contained in this chapter shall be deemed or construed to require the payment of any license tax by any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes and from which profit is not derived, either directly or indirectly, by any person. Proof of nonprofit status shall be supplied by a charitable organization by the Articles of Incorporation of the organization, approved by the state of California or suitable documentation approved by the director.

C. Disabled Veterans. Nothing contained in this chapter shall be deemed or construed to require the payment of any license tax by any honorably discharged or relieved veteran named in Section 16001 of the Business and Professions Code of California, or as amended, who is physically unable to earn a livelihood by manual labor and who is a voter of this state, and who desires to hawk, peddle or vend goods, wares or merchandise owned by him, or to distribute circulars.

D. Public Utility. Any public utility possessing a franchise granted by the city, and making annual payments under said franchise to the city, shall not be subject to the provisions of, this chapter.

E. Child and Adult Care. Residential care or other facilities for the care of children or adults which serve six or fewer persons shall not be subject to the provisions of this chapter.

F. Instructors. Persons providing instruction solely for a city-sponsored program through the city’s parks and recreation department.

G. City Contract Employees. Persons providing a service in city buildings solely to fill a regular city payroll position.

H. Waivers. In addition to the exemptions provided in this section, the city council may waive the business license fee for a person or entity for good cause where the business is conducted for the benefit of the community. The application for such a waiver shall be accompanied by a twenty-five dollar fee. (Ord. 7-96 §§2, 3, 1996; Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.060 License tax--License required.

No person shall transact, engage in or carry on any business within the city without first having procured a license from the city to so do and having paid the tax prescribed in this chapter, and having complied with any and all applicable regulations concerning the use and occupancy of the premises from which the business is to be conducted. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.070 License tax--Multiple businesses.

Any person conducting more than one business at any one location may be issued a single license for all such businesses upon application and payment. (Ord. 6-94 §1(part), 1994).

3.40.080 Fees payable.

All business license taxes shall be payable in advance annually on or before October 1st of each year and shall cover the fiscal year period of October 1st through September 30th. (Ord. 2-99 §1(part), 1999: Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.090 License tax--Imposed on business.

There is imposed a license tax upon every person transacting, engaging in or carrying on any business within the city in accordance of the following schedule:

Fee Schedule	Businesses With Fixed Place of Business	Businesses Without Fixed Place of Business
No. of Employees	License Tax Per Year	License Tax Per Year
0 - 4	$100.00	$125.00
5 - 14	250.00	275.00
15 - 49	500.00	525.00
50 - 99	1,000.00	1,025.00
100+	1,500.00	1,525.00

(Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.100 Minimum business license tax.

Any business not expressly exempt or provided for under this chapter must pay a minimum business license tax of one hundred dollars. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.110 License tax--Method of computing number of employees.

The total number of employees for whom a tax is to be paid shall be determined in the following manner:

A. For any business having a fixed place of business in the city, the total number of employees shall be the greatest number of persons employed or taking part in the business during any twenty-four hour period within the twelve-month period ending on September 30th just preceding the date of application for a license, or any renewal thereof;

B. For any business not having a fixed place of business in the city, the total number of employees shall be the greatest number of persons employed or taking part in the business during any twenty-four-hour period in which the licensee transacted, engaged in or carried on a business in the city within the twelve-month period ending on September 30th just preceding the date of application for a license, or any renewal thereof. (Ord. 2-99 §1(part), 1999: Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.120 Miscellaneous business license taxes.

A.	Carnival	$150.00 per day;
B.	Circuses	$150.00 per day;
C.	Solicitors	$35.00 per day;
D.	Peddlers	$35.00 per day;
E.	Certified farmers’ market master license*	$400.00 per year.

* Any license issued to a certified farmers’ market pursuant to this section shall be deemed to cover producers, other than those that have a fixed place of business within the city of Half Moon Bay, that sell agricultural products at said licensed certified farmers’ market.

(Ord. C-2014-04 §3(B), 2014: Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.130 Mechanical amusement devices.

A. For the purpose of this section, words and terms shall mean and be construed as follows:

1. “Mechanical amusement device” means any machine, device, contrivance or apparatus, the operation or use of the deposit or placing of any coin, plate, disk, slug or key into any slot receptacle, crevice or other opening, or by the payment of any fee or fees, for its use as a game or contest of any description, or which may be used for any such game or contest, or for the amusement of the user, and the use or possession of which is not prohibited by any laws of the state.

2. “Distributor” means any person who, as owner, agent, employee or otherwise, distributes, places, installs or delivers a mechanical amusement device or devices, in or to any premise in the city, or who keeps or stores within the city any such mechanical amusement device or devices for the purpose of distributing, placing, installing or delivering the same.

3. “Operator” means any person who, as owner, lessee, employee, agent or otherwise, operates, installs, keeps, maintains, permits or allows to be operated, installed or maintained any mechanical amusement device in or upon premises owned, leased, managed, operated or controlled by such person within the city.

B. Amusement Devices.

1. Every distributor of mechanical amusement devices shall pay an annual license tax of seventy-five dollars.

2. Every operator of mechanical amusement devices shall pay an annual license tax as follows:

Pinball machines	$150.00 per machine;
Miniature bowling alley	150.00 per machine;
Other mechanical amusement devices	36.00 per machine.

(Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.170 License tax--Fees and charges.

All fees and charges required to be paid under the provisions of this chapter, except those specified in this chapter shall be fixed by resolution of the city council. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.180 License--Application.

Each person making application for the first license to be issued under this chapter, or a license for a newly established business, shall furnish to the collector a sworn statement by the owner, officer or responsible agent of the business (upon a form provided by the collector) setting forth the following information:

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

B. The place where such business is to be carried on, and if the same is not to be carried on at any fixed place of business, the places of residence of the owners of the business;

C. If the license is to be issued to a person doing business under a fictitious name, the application shall set forth the names and places of residence of the owners of the business;

D. If the license is to be issued to a corporation or a partnership, the application shall set forth the names and places of residence of the officers or partners thereof;

E. The number of employees employed in the business which is the subject of the application; and

F. Any further information which the collector may require. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.190 License--Issuance.

The collector is authorized to issue licenses required to be obtained under this chapter upon persons making application therefor, furnishing the sworn statement when required, and paying the license tax imposed. Each license issued shall state upon its face:

A. The name of the person to whom issued;

B. The kind of business licensed;

C. The location of such business;

D. The date of expiration of the license;

E. Such other information as shall be deemed necessary by the collector to enforce this chapter. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.200 License--Conformance to other regulations required.

The payment of a license tax and the issuance of a license to any person by the city shall not entitle the licensee to carry on any business which for any reason is in violation of applicable laws, nor to engage in or to carry on any business in any building or in any premises designated in such license in the event such building or premises are situated in an area or locality in which the conduct of such business is in violation of this code, or any ordinance of the city, or any other law. (Ord. C-8-08 §1, 2009: Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.210 License--Transferring and amending.

No license issued to any person shall be transferable to any other person. If a license is issued authorizing a person to transact, engage in and carry on a business at a particular place, such licensee may upon application therefor and payment of a fee have the license amended to authorize the transacting, engaging in and carrying on of such business under the license at another location to which the business has been or is to be moved. A transfer of ownership of any business for which a license has been issued 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 constitute a transfer requiring amendment of the license. For the purpose of this section, stockholders, bondholders, partnerships or other persons holding an interest in a corporation or other entity defined in this chapter to be a person are regarded as having the real or ultimate ownership of such corporation or other entity. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.220 License--Duplicate license.

Upon application therefor and payment of a fee, the collector may issue a duplicate of any unexpired license which has been lost or destroyed. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.230 License renewal.

When applying for the renewal of any license previously issued, the licensee shall submit to the collector upon a form to be provided by the collector, a sworn statement setting forth such information concerning the licensee’s business during the preceding year as may be required to enable the collector to ascertain the amount of license tax to be paid. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.240 License--Keeping and posting.

Any person transacting, engaging in and carrying on a business at a fixed place of business in the city shall keep the license issued under this chapter posted in a conspicuous place upon the premises where such business is carried on.

Any person transacting, engaging in and carrying on a business but not operating at a fixed place of business in the city shall keep the license issued under this chapter upon his person at all times while transacting, engaging in and carrying on such business. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.250 License--Producing for inspection.

It is unlawful for any person to whom a license has been issued to fail or to refuse to produce the same for inspection when required to do so by the collector, or any employee of the city working under the direction of the collector, or by the chief of the department of public safety or any public safety officer. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.260 License--Verification of sworn statements.

A. No sworn statement required to be filed shall be conclusive as to the matter set forth therein. The filing of a sworn statement shall not preclude the city from collecting any sum of money actually due and payable under this chapter by appropriate action; and

B. The collector shall have the right to examine and audit at all reasonable times the books and records of any licensee, or person making application for a license in order to:

1. Verify any sworn statement filed and the items contained therein; and

2. Verify or ascertain the amount of any business license tax due. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.270 License--Determination of tax upon failure to file statements or application--Notice.

If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the collector that person fails to file a corrected statement, or if any person subject to the tax imposed by this chapter fails to apply for a license, the collector shall proceed in such manner deemed best to obtain facts and information on which to base the estimate of the tax due. In case such 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 mail, postage prepaid, addressed to the person so assessed at that person’s last known place of address. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.280 License--Determination of tax--Application for hearing.

The person so assessed may within fifteen days after the serving or mailing of the notice referred to in this chapter make application in writing to the collector for a hearing with the director on the amount of the license tax assessed. If application for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the collector shall become final and conclusive and immediately due and payable. If such application is made, the collector shall give not less than ten days written notice in the manner prescribed herein to the person to show cause at a time and place fixed in the notice (which shall be not more than fifteen days after receipt of the application for a hearing) why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the person may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.290 License--Determination of tax following hearing.

After a hearing on the amount of tax assessed, the collector shall determine the proper tax to be paid, and shall thereafter give written notice to the person so assessed in the same manner as prescribed in Section 3.40.270 of this code for giving notice of an assessment. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in this chapter. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.300 License tax payments--Generally.

A. All annual license taxes shall be due and payable in advance on the first day of October each year, and shall become delinquent thirty days thereafter. License taxes covering new business operation, commenced after the first day of July, shall be due and payable on the day such business is commenced, and shall be delinquent thirty days thereafter. The license fee for a new business commenced after the first day of April shall be fifty percent of the annual license fee for that business specified in this chapter; and

B. Daily license taxes shall be due and payable on each day in advance. Unless otherwise specifically provided, license taxes shall not be prorated. (Ord. 2-99 §1(part), 1999: Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.310 License tax payments--Penalty for delinquency.

For failure to pay a license tax when due, the collector shall add to the amount due a penalty of twenty-five percent of the amount of the license tax on the last day of each month after the due date thereof until paid, provided the amount of such penalty to be added shall in no event exceed one hundred percent of the amount of the license tax due. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.320 License tax payments--Penalty for fraud.

If the collector determines that the nonpayment of any license tax due under this chapter is due to fraud, a penalty of five hundred percent of the tax due or five hundred dollars, whichever is greater, in addition to the penalties stated in Section 3.40.310 of this code. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.330 License tax payments--Interest.

In addition to the penalties imposed, any person who fails to pay any tax imposed by this chapter shall pay interest at the rate of one percent per month, or fraction thereof, on the amount of the tax exclusive of penalties, from the date on which the tax first became delinquent until paid. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.340 License tax payments--Penalty and interest become part of tax.

Every penalty imposed upon any person and such interest as accrues, under the provisions of this chapter, shall become a part of the tax required to be paid. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.350 License tax payments--Payment required prior to license issuance.

The collector shall not issue any license or reissue one previously revoked, whether for the same or another business, to any person who at the time of application is indebted to the city for any delinquent license taxes until that person shall have paid any delinquent license taxes, together with any penalty and interest, and shall have furnished to the collector any sworn statement required in this chapter. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.360 License tax payments--Filing period for refunds.

Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the collector within three years from the last day of the calendar month following the period of time for which the amount which is the subject of the claim was paid. The claim shall be on a form furnished by the collector. No refund shall be paid unless the claimant establishes his right thereto by written records showing entitlement thereto. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.370 License tax payments--Collection of debt.

The amount of any license tax, interest and penalty, and all other fees and charges required to be paid under this chapter, shall be deemed a debt due to the city. The city may maintain a civil action thereon in its own name in any court of competent jurisdiction for the amount thereof, together with its court costs. The civil action may include a lien on business assets. Such civil action shall not be a bar to any criminal action provided by law or by this chapter. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.400 Appeals.

A. Who May Appeal. Any person aggrieved by any decision of the collector pursuant to this chapter may appeal to the director by filing an appeal with the director in accordance with the requirements of Chapter 1.25. The decision of the director shall be final.

B. Serving Notice of Hearing. The director shall fix a time and place for hearing such appeal. The director shall give notice thereof in writing to such person by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to such person at his last known place of address, or in the case of a licensee, to the place of business set forth in the license.

C. Determination Authority. The director shall have authority to determine all questions raised on such appeal at the time of the hearing. No determination so made by the director shall conflict with any substantive provision of this chapter.

D. Suspension of Penalties. No penalty provided for in this chapter shall be imposed after the filing of an appeal, or prior to the completion of the hearing on the appeal and the making of a determination of the subject of the appeal by the director. (Ord. C-7-08 §3, 2008: Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.410 Enforcement--Duties of collector.

A. It shall be the duty of the collector to enforce each and all of the provisions of this chapter, and the chief of the department of public safety shall render such assistance in the enforcement hereof as may from time to time be required.

B. The collector in the exercise of the duties imposed under this chapter shall examine or cause to be examined all business conducted in the city to ascertain whether the provisions of this chapter have been complied with. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).

3.40.420 Violation--Penalty.

A. Any person or entity violating any of the provisions, or failing to comply with any of the requirements, of this chapter shall be guilty of a misdemeanor. The city attorney shall have discretion to prosecute any such violation of this chapter as an infraction.

B. Except in cases where a different punishment is prescribed by any ordinance of the city, any person convicted of a misdemeanor for violation of an ordinance of the city is punishable by a fine of not more than one thousand dollars, or by imprisonment not to exceed six months, or by both such fine and imprisonment.

C. Any person convicted of an infraction for violation of this chapter is punishable by:

1. A fine not exceeding one hundred dollars for a first violation;

2. A fine not exceeding two hundred dollars for a second violation of the same ordinance within one year; or

3. A fine not exceeding five hundred dollars for each additional violation of the same ordinance within one year.

D. Each person is guilty of a separate offense for each and every day during any portion of which any violation of any provision of this chapter is committed, continued or permitted by any such person, and he shall be punishable accordingly.

E. In addition to the penalties set out in this chapter, any condition caused or permitted to exist in violation of any of the provisions of this chapter shall be deemed a public nuisance and may be, by the city, summarily abated as such, and each day such condition continues shall be regarded as a new and separate offense. (Ord. 6-94 §1(part), 1994: Ord. 6-93 §2(part), 1993).