Chapter 5.08 BUSINESS LICENSES – GENERAL PROVISIONS

This chapter shall be known as the “Business License Tax Code.” It is enacted solely to raise revenue for municipal purposes and is not intended for regulation. [Ord. 1001 § 3, 1995].

5.08.020 Compliance – License required.

It is unlawful for any person, whether as owner, manager, principal, agent, clerk, employee, officer or corporate, or as an officer of any corporation, or otherwise, to commence, manage, engage in, conduct or carry on any business, vocation, profession, calling, show, exhibition or game, in Chapters 5.04 through 5.32 LEMC specified, in the City, without first complying with any and all regulations for such business, vocation, profession, calling, show, exhibition or game contained in Chapters 5.04 through 5.32 LEMC. The carrying on of any such business, vocation, profession, calling, show, exhibition or game specified in Chapters 5.04 through 5.32 LEMC without first having procured a license from said City to do so, or without first having complied with any and all regulations for such business, vocation, profession, calling, show, exhibition or game contained in Chapters 5.04 through 5.32 LEMC constitutes a separate violation of Chapters 5.04 through 5.32 LEMC for each and every day that such violation or failure to comply is continued, permitted or committed. [Ord. 1001 § 3, 1995].

5.08.030 Information confidential.

It is unlawful for the City or any person having an administrative duty pursuant to the provisions of this chapter to make known in any manner whatever the business affairs, operations, or information obtained by investigation of the records and equipment of any person required to obtain a license tax, or any other person visited or examined in the discharge of any official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof set forth in any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person; provided, however, the provisions of this section shall not be construed to prevent:

A. The disclosure to, or the examination of records and equipment by, another City Official, employee or agent for the collection of taxes or for the sole purpose of administering or enforcing any provision of this chapter or collecting taxes imposed by the provisions of this chapter;

B. The disclosure of information to, or the examination of records by, Federal or State official, or the officials of another City or County or City and County if a reciprocal arrangement exists with such other City or County or to a grand jury or court of law upon subpoena;

C. The disclosure of information and results of the 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 such effects, to the taxpayer himself or to his successors, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, of information relating to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, including interest and penalties; provided, however, the City Attorney shall approve such disclosure, and the City may refuse to make any disclosure set forth 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 Council in order to permit it to be fully advised of 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; and

H. The provisions of this section shall be subject to the applicable provisions of the California Public Records Act (Title 1, Division 7, Chapter 3.5, Section 6250 et seq. of the California Government Code). [Ord. 1001 § 3, 1995].

5.08.040 Charge deemed debt to City – Collection.

The amount of each license charge imposed by Chapters 5.04 through 5.32 LEMC or each sum required to be paid hereunder is a debt due the City from any person who engages in any business, vocation, profession, calling, show, exhibition or game required to be licensed without first obtaining a license so to do, and an immediate cause of action shall accrue to the City for the collection thereof in any court of competent jurisdiction. [Ord. 1001 § 3, 1995].

5.08.050 License issuance to person indebted to City.

No license for any ensuing, current or unexpired license period shall be issued to any person who at the time of making application for such license is indebted to the City for any unpaid fees required to be paid under any provisions of Lake Elsinore Municipal Code. Any license issued contrary to the provisions of this section shall be void and of no effect. Any payments from the City to any person conducting or carrying on any business, vocation, profession, calling or show may be held if the person does not have a business license. [Ord. 1001 § 3, 1995].

5.08.060 State licensing.

No person shall be licensed under Chapters 5.04 through 5.32 LEMC as to any business, vocation, pursuit, profession, calling, show, exhibition or game which is regulated or licensed by the State unless at the time of issuance of a City business license hereunder such person is duly licensed by the State. Presentation of a valid unexpired State license shall be prima facie evidence that such person is so licensed by the State. [Ord. 1001 § 3, 1995].

5.08.070 Applicant with fictitious name.

No license shall be issued to any person, firm or partnership conducting or carrying on any business under a fictitious name, unless an affidavit be filed in the office of the County Clerk of Riverside County showing the true names of the owners of such business. Such license may, however, be issued in the true names of the owners of such business without the filing of the affidavit. [Ord. 1001 § 3, 1995].

5.08.080 Posting – Exhibit upon request.

Every person required to have a license under Chapters 5.04 through 5.32 LEMC and carrying on a business at a fixed place shall keep such license posted in a conspicuous place on the premises so as to be readily seen. Every person required to have a license, but not carrying on a business at a fixed place, shall exhibit such license whenever requested to do so by any officer of the City. [Ord. 1001 § 3, 1995].

5.08.090 Transfer and scope of license – Application for transfer.

A. Licenses granted or issued under the provisions of Chapters 5.04 through 5.32 LEMC shall not be transferred, nor shall they authorize any person other than therein named to do business, nor shall they authorize the person therein named to do business at any location or premises except as specified in the license, unless they are transferable licenses and first are transferred by the Business License Officer.

B. Before any license is transferred, the person applying for such transfer shall make application for license as provided in LEMC 5.08.150 and 5.08.160, shall comply with all requirements of Chapters 5.04 through 5.32 LEMC and other ordinances of the City as though there were to be an initial issuance of a license to such transferee, and shall pay the Business License Officer a charge for such transfer equal to 10 percent of the fee then provided by Chapters 5.04 through 5.32 LEMC for original issuance of such license. The location of all business may be transferred upon application to the Business License Officer and the payment of the fee established by resolution. The Business License Officer shall reissue the license at the new location and cancel the previous license.

C. Licenses hereunder shall be transferable excepting the following types and classifications of licenses which shall not be transferred.

1. Any license granted under the provisions of LEMC 5.08.160 or under the exemptions provided in Chapter 5.12 LEMC;

2. Advertising;

3. Amusements of all kinds;

4. Astrologer;

5. Auction;

6. Automobiles and taxicabs for hire;

7. Bankrupt, assigned or damaged goods;

8. Council special permit;

9. Detective, private;

10. Locksmith;

11. Medicine show;

12. Pawnbroker;

13. Secondhand dealer.

D. Any business license transferable as provided in Chapters 5.04 through 5.32 LEMC cannot be transferred from one owner to another. This must be a new license issuance. [Ord. 1001 § 3, 1995].

5.08.100 License – Tax when issued under previous ordinances.

Where a license for revenue purposes has been issued to any business by the City and tax paid therefor under the provisions of any ordinance heretofore enacted and the term of such license has not expired, then the business operations tax prescribed by this chapter for the business shall not be payable until the expiration of the term for such unexpired license. [Ord. 1001 § 3, 1995].

5.08.110 Permit as prerequisite to license issuance.

No license shall be issued hereunder when the provisions of some other ordinance of this City require a permit to be obtained as a prerequisite to entering into such business, until such permit is first applied for or obtained. Any license issued contrary to the provisions of this section shall be void and of no effect. [Ord. 1001 § 3, 1995].

5.08.120 Location to be specified.

Each license shall be issued for a specific location or premises except where Chapters 5.04 through 5.32 LEMC expressly allow otherwise. [Ord. 1001 § 3, 1995].

5.08.130 Other agency review.

The City may refer to any governmental agency any statement and all other information submitted by persons subject to the provisions of this chapter in connection with the conduct of a business regulated or supervised or otherwise the concern of any such agency, including agencies concerned with health regulations, fire safety, police considerations, or any other safeguard of the public interest. Failure to comply with conditions required by other agency review shall result in revocation of the license once granted. [Ord. 1001 § 3, 1995].

5.08.140 Compliance with zoning regulations.

No license shall be issued on any application when the place where the business, trade or occupation sought to be carried on is not in the proper zone or district therefor, or is otherwise not qualified in accordance with the provisions of the zoning ordinances of the City. Any license issued contrary to the provisions of this section shall be void and of no effect. [Ord. 1001 § 3, 1995].

5.08.150 Savings clause.

Neither the adoption of this chapter nor its superseding of any portion of any other chapter shall in any manner be construed to affect prosecution for violation of any chapter or ordinance prior to the effective date of the ordinance codified in this chapter, 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 posed, filed or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect. [Ord. 1001 § 3, 1995].

5.08.160 License not to authorize illegal business.

No license issued under the provisions of Chapters 5.04 through 5.32 LEMC shall be construed as authorizing the conduct or continuance of any illegal or unlawful business or the violation of any ordinance of the City. Any license issued contrary to the provisions of this section shall be void and of no effect. [Ord. 1001 § 3, 1995].

5.08.170 Special permit issuance.

For every business or occupation which requires a special permit from the City Manager, the issuance of said permit shall be based upon a fee set by resolution and a finding by the City Manager or his designee pursuant to the following standards:

A. The business or vocation does not present a substantial danger to the public;

B. The business or occupation does not tend to increase health hazards within the City;

C. The business or occupation does not tend to promote violations of the laws of the State or of the City. [Ord. 1001 § 3, 1995].

5.08.180 Duplicates.

A duplicate license may be issued by the City to replace any license previously issued pursuant to the provisions of this chapter, which license has been lost or destroyed, upon the licensee filing an affidavit attesting to such fact and paying to the City a duplicate license fee as set forth by resolution. [Ord. 1001 § 3, 1995].

5.08.190 Error in license – Effect.

Any error made by the City in preparing a license, stating the kind of business, the location thereof, the amount of the charge therefor, or in determining the proper zone, shall not prejudice the collection by the City of the amount actually due under Chapters 5.04 through 5.32 LEMC or any other ordinance, nor enforcement of any regulations applicable thereto, nor shall the issuance of a license authorize the carrying on of any business, trade or occupation in any zone or location contrary to the provisions of the ordinances of the City. [Ord. 1001 § 3, 1995].

5.08.200 License preparation and issuance.

All licenses shall be prepared and issued by the City upon payment of the sums required to be paid hereunder and the furnishing to the City by the applicant of such information in writing as is necessary to enable the Officer to fully determine whether Chapters 5.04 through 5.32 LEMC and other City ordinances are applicable in the particular circumstances. [Ord. 1001 § 3, 1995].

5.08.210 Records to be kept.

The Business License Department shall keep a record in which shall be entered all licenses issued, the date thereof, to whom issued, for what purpose, the location where the same is to be carried on, any transfers that occur, the time when the license expires, and the amount thereof. [Ord. 1001 § 3, 1995].

5.08.220 Enforcement authority.

The City’s law enforcement agency, all Code Enforcement Officers and all Business License Officers or Supervisors are appointed inspectors of licenses, to examine all places of business and persons liable to procure a license, to see that such licenses are taken out, and to see that all regulatory provisions of Chapters 5.04 through 5.32 LEMC are enforced; and shall have the right to enter free of charge at any time any place of business for which a license is required by Chapters 5.04 through 5.32 LEMC to demand the exhibition of such license for current term by any person engaged or employed in the transaction of such business to ascertain that the required licenses have been procured; and to enforce and perform all of the regulatory provisions of Chapters 5.04 through 5.32 LEMC. [Ord. 1001 § 3, 1995].

5.08.230 License payment – When due.

All licenses specified in Chapters 5.04 though 5.32 LEMC shall be due and payable in advance in full and each person required to have a license shall be liable for payment of the fee for the full term. [Ord. 1001 § 3, 1995].

5.08.240 Payment of other licenses not excused.

Any person required to pay a license fee for conducting a business under this chapter shall not be relieved from the payment of any license fee for the privilege of conducting such business required under any other provision of this code or any other ordinance or regulation of the City or other agency, and such person shall remain subject to such other provisions. [Ord. 1001 § 3, 1995].

5.08.250 License payment – Delinquency penalties.

For failure to pay a business license fee when due upon approval or renewal, the City shall add the following penalties:

A. Twenty-five percent of the business license fees on the fifteenth day of the month following the due date; and

B. Fifty percent on the fifteenth day of the second month following the due date; and

C. Seventy-five percent on the fifteenth day of the third month after the due date; and

D. One hundred percent on the fifteenth day of the fourth month after the due date thereof; provided, that the amount of such penalties to be added shall in no event exceed 100 percent of the business license fee due. [Ord. 1001 § 3, 1995].

5.08.260 License payment – Daily.

Where a license fee in Chapters 5.04 through 5.32 LEMC is fixed at a daily rate, a part of the day shall be deemed a day and the full fee shall be paid for a day or fraction thereof. [Ord. 1001 § 3, 1995].

5.08.270 License payment – Annual and other rates.

A. Unless otherwise provided by law, business licenses shall be issued for a one-year period and the fees, as established by resolution, shall be paid in full at the time of issuance.

B. If an applicant for an annual business license intends to conduct a business for six months or less, said applicant may be granted a business license for six months on the initial issuance of said business license. [Ord. 1001 § 3, 1995].

5.08.280 Application for refund.

A. Any business tax, or penalties or interest thereon, or portion thereof, may be refunded, if they were:

1. Paid more than once;

2. Erroneously or illegally collected;

3. Paid in excess of the corrected amount due;

4. Issued for a business which subsequently does not operate in the City, due to applicant’s inability to obtain additional permits required under any provision of this code. In such case, the applicant shall be entitled to a refund of the business tax paid less a 20 percent administrative processing charge.

B. No refund of moneys howsoever paid or collected shall be allowed in whole or in part unless an application therefor is filed with the City within a period of one year from the expiration of the license period for which a refund is sought, and all such claims for refund must be filed with the City on forms furnished thereby in the manner prescribed by the City. Such application may be made only by the person who made the payment, his or her guardian, executor, administrator or heir. Refunds shall not be made to an assignee of the application. Upon filing of such a claim, and when it is determined that a refund is warranted, the City shall refund the amount warranted, less 20 percent to cover the administrative cost of the refund; provided, however, that in the case of a refund made pursuant to subsection (A)(2) of this section and, where applicable, subsection (A)(4) of this section, no deduction shall be made on account of the administrative cost therefor. The failure to file such application within the time prescribed herein shall bar any future right of recovery.

C. Where the City has determined that a refund is due upon a particular business tax certificate, but where the applicant is at the same time determined to be delinquent or otherwise liable for a business tax upon a separate business license, then in that event, the City shall apply said refund amount to the balance owing and delinquent for said business. The City shall then refund any amount remaining.

D. No refund shall be made where the business license was issued under a misrepresentation of fact by the applicant and/or such application actually engaged in the conduct of the business for which the license was granted prior to the date stated in applicant’s original application.

E. In all cases proof of payment, by the applicant, shall be a prerequisite to any refund. [Ord. 1001 § 3, 1995].

5.08.290 Denial, suspension, revocation.

The City may deny, suspend, revoke, or fail to renew any business license upon a finding by the City, an administrative hearing officer, court of law or other governmental body of any of the below:

A. Any violation of this code, any other code adopted by this code, or any State law that occurred on the premises of the business to which the application or license pertains;

B. Any violation of this code, any other code adopted by this code, or any State law that occurred for which the applicant or an officer of the applicant, if an entity, was responsible; or

C. That information that was provided in the process of obtaining a business license was materially false. If a business license is suspended or revoked, no former business license holder shall conduct any business in the City until the City issues a new business license or the suspension is lifted.

D. The City may withhold, deny or refuse to renew any permit(s), license(s) and/or approval(s) if:

1. A current violation of this code or adopted codes exists on a property relating to the permit(s), license(s), or approval(s), and such permit, license or approval is not required to remedy the violation; or

2. The applicant, holder of the permit, license or approval, or the property owner is subject to any outstanding fines or fees owed to the City. [Ord. 1412 § 3, 2019].

5.08.300 Appeal.

A. Any holder of a business license who is aggrieved by any decision of the City with respect to the issuance, denial, suspension, revocation, or failure to renew a business license under the provisions of this code may appeal the decision by filing a written notice of appeal with the City Clerk within 15 calendar days after such decision is made.

B. The written notice of appeal shall be filed with the City Clerk, along with payment of an appeal processing fee in an amount to be established by resolution of the City Council. The appeal processing fee, however, shall be excused upon a satisfactory showing of undue financial hardship following an application submitted to the City Clerk on forms approved by the City Clerk.

C. The written notice of appeal shall contain the following information: (1) the name of the appellant; (2) the address of the appellant; (3) a brief statement of the nature of the appeal together with any material facts claimed to support the contentions of the appellant; and (4) the signature of the appellant.

D. Upon receipt of a timely and proper appeal, the City Clerk shall forward the appeal to the City’s Nuisance Abatement Board (NAB), which shall schedule a hearing for the appeal in front of the NAB.

E. The City Clerk shall provide notice not later than 10 calendar days before the scheduled hearing by first class mail to the appellant at the address listed on the request for a hearing.

F. The NAB shall issue a written decision after the hearing. The decision of the NAB shall be final.

G. The failure to timely and properly file a request for a hearing with the City Clerk, or the failure to appear at a scheduled and properly noticed hearing, shall constitute a waiver of the right to appeal and a failure to exhaust administrative remedies, and an admission that the City’s action was proper. If appeal is waived for any reason, including as provided under this subsection, the decision of the City official or agent being appealed shall be final, and shall not be further appealable.

H. Any final decision of the NAB shall be subject to judicial review exclusively by writ proceedings pursuant to Code of Civil Procedure Section 1094.5. [Ord. 1412 § 4, 2019].