Chapter 5.04
BUSINESS LICENSES GENERALLY
Sections:
5.04.020 Chapter enacted as revenue measure.
5.04.030 License and regulations compliance required.
5.04.040 Separate licenses required for each business—Exceptions.
5.04.060 Issuance by city clerk.
5.04.070 License authorization by council when.
5.04.080 Pay periods designated.
5.04.100 Exemptions from fees.
5.04.110 Fees constitute debt—Liability for chapter violation.
5.04.130 Demands or notices not required.
5.04.140 Form and contents of license.
5.04.150 Nontransferable—Exceptions.
5.04.180 Unlawful to operate business without a license.
5.04.190 Chapter not to permit unlawful business.
5.04.010 Definitions.
For the purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section:
A. “Business” includes professions, trades and occupations, to include occupations in all and every kind of calling, whether or not carried on for profit.
B. “Certified statement” means an affidavit of certification made under penalty of perjury.
C. “City” means the city of Patterson, a municipal corporation of the state, in its present incorporated form or any later reorganized, consolidated, enlarged or reincorporated form.
D. “Garage sale” (including yard sale, patio sale, rummage sale) means sales of used personal property owned by the resident(s) of a residential property, homeowner associations, neighborhood groups, or other multi-resident groups, not including property purchased for resale or the goods and wares of a merchant of any description.
E. “Gross receipts” include the total of amounts actually received or receivable from sales and the total amounts received or receivable for the performance of any act or service of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or services done as a part of or in connection with a sale of materials, goods, wares or merchandise. Included in “gross receipts” are all receipts, cash, credits and property of any kind and nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from “gross receipts” are all the following:
1. Cash discounts allowed and taken on sales;
2. Credit allowed on property accepted as part of the purchase price, and which property may later be sold;
3. Any tax required by law to be included in or added to the purchase price, and collected from the consumer or purchaser;
4. Property, which is the subject of the contract of sale, which is subsequently returned to the seller and for which a refund in either cash or credit is given;
5. Amounts collected for others where the business is acting as an agent or trustee, to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the city clerk with the names and addresses of the others and the amounts paid to them;
6. That portion of the receipts of a general contractor which represent payments to subcontractors, provided that such subcontractors are licensed under this chapter and provided the general contractor furnishes the city clerk with the names and addresses of the subcontractors and the amount paid each subcontractor;
7. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;
8. As to a real estate agent or broker, the sales price of real estate sold for the account of others, except that portion which represents commission or other income to the agent or broker;
9. As to a retail gasoline dealer, a portion of his receipts from the sale of motor vehicle fuels, equal to the motor vehicle fuel license tax imposed by and previously paid under the provisions of Part 2 of Division 2 of the Revenue and Taxation Code of the state;
10. As to a retail gasoline dealer, the special motor fuel tax imposed by paragraph 4041 of Title 26 of the United States Code, if paid by the dealer or collected by him from the consumer or purchaser;
11. As to trading stamp companies, the “gross receipts” shall be measured in terms of stamp sales to merchants;
12. Receipts from the sale of real property, when such sale is merely incidental to carrying on a business;
13. The amount of gross receipts which has been subject to a license tax paid by any other city.
F. “Merchant” means any person selling goods, wares and merchandise or services of any description within the city, either as a sole business, or in connection with some other business, and any person engaging in business within the city; except, however, peddlers, solicitors and all other persons whose business is specifically defined in or for whose business a separate and distinct license fee is provided and required under this chapter.
G. “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. Notwithstanding the definition herein of “person,” professional people shall be individually licensed as provided in this chapter.
H. “Professional person” means any accountant, chiropractor, dentist, engineer, lawyer, optometrist, osteopath, physician, surgeon, veterinarian or mortician who solicits, sells or offers to sell any professional services in the city.
I. “Sale” includes the transfer in any manner or by any means whatsoever of the title to property for a consideration; the serving, supplying or furnishing for a consideration; the serving, supplying or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall be likewise deemed as “sale.” The foregoing definition shall not be deemed to exclude any transaction which in effect results in a “sale” within the contemplation of law.
J. “Solicitors and peddlers” means every person not having a fixed place of business in the city, who travels from place to place or house to house, or temporarily occupies space in any other business establishment within the city, who makes demonstrations of or solicits, takes orders or canvasses for the sale of, or sells any goods, wares, merchandise, insurance, subscriptions to periodicals or magazines, or things or articles of value of any nature, kind or description. (Ord. 724 (part), 2012: Ord. 557 § 1, 1996; Ord. 287 § 1, 1978; Ord. 240 § 1, 1974; Ord. 236 (part), 1974).
5.04.020 Chapter enacted as revenue measure.
This chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation. (Ord. 236 (part), 1974).
5.04.030 License and regulations compliance required.
It is unlawful for any person to commence, establish, maintain or carry on any business enterprise, whatever, in the city:
A. Without first obtaining a license from the city, whether the business enterprise or the person is subject to a city license tax under this chapter or not;
B. Without fully complying with any and all other regulations of such business contained in this chapter, or other regulatory provisions now existing or hereafter to be adopted by the city. (Ord. 236 (part), 1974).
5.04.040 Separate licenses required for each business—Exceptions.
A separate license shall be required and obtained for each kind or class of business carried on at one location; except, however, in case of merchants where the license fee is to be determined and paid on the basis of the amount of gross sales or gross receipts, and if all such gross sales or gross receipts of such merchant are reported under one application for license. One license only shall be required of and shall be issued for the business of the merchant. This exception shall not apply to the separate licenses or the separate license fees required for the operation or maintenance of billiard or pool tables, card tables, music or electric phonograph machines, pin marble games, or other similar games or devices, amusement machines and devices and weighing machines. (Ord. 236 (part), 1974).
5.04.050 Application.
All applications for license shall be made to the city clerk on forms furnished by the clerk and shall state all facts necessary and proper to be known and stated for the issuance of such license, including the kind or character of the business or business enterprise, the location thereof, the full name and residence of the proposed licensee, the period of time such business or business enterprise is intended to be continued, or for which the proposed license is to be issued, and such other facts or information as the city clerk may require. If the license fee payable under this chapter is fixed or to be determined by the amount of gross sales or gross receipts, then for new businesses and business enterprises not previously licensed, the application shall state an estimate of the amount of such gross sales or gross receipts anticipated for the period for which the license is proposed to be issued. For established businesses and businesses previously licensed, the application shall state the amount of gross sales or gross receipts for the last preceding license period. All applications for license shall be verified by the applicant. Whenever a license is applied for, which must be approved by the city council before being issued; or whenever a license is applied for to conduct a business of a temporary nature, the city clerk may require the person applying for a license to add his thumb and fingerprints to the application therefor. (Ord. 236 (part), 1974).
5.04.060 Issuance by city clerk.
On receiving proper application therefor and containing the necessary information, it shall be the duty of the city clerk to issue a license under this chapter to every person paying a license fee or entitled to such license. The clerk shall determine the business classification of the applicants; provided that any person may appeal to the city council from the decision of the clerk as to such classification, and the council, after hearing, shall fix and determine the classification and the amount of tax required for such license, and the determination of the council shall be final. In no case shall any mistake by the city clerk stating the amount of the license fee prevent the collection of what shall be actually due, with all costs against any licensee, or against anyone commencing or carrying on any business enterprise within the city, without a license. (Ord. 236 (part), 1974).
5.04.070 License authorization by council when.
Whenever any person desires to engage in any business in the city, enumerated in this section, such person shall petition the city council for license therefor, which petition shall state the name of the applicant and any other information which the city council may by resolution require. On consideration thereof, the council may authorize the same to be issued in whole or in part or rejected in whole or in part. No license or permit shall be issued for the conduct of any such business, except as ordered by the council. Such businesses are the following: Athletic exhibitions, boxing contests, carnivals and circuses. (Ord. 556 § 1, 1996: Ord. 236 (part), 1974).
5.04.080 Pay periods designated.
All license fees shall be payable in advance in lawful money of the United States at the office of the city clerk, or at such other place as is from time to time lawfully designated by resolution of the city council.
A. Annual Licenses. The annual license fees in this chapter shall be due and payable to the city on or before the tenth of July of each year. Any person liable to pay an annual license fee, but who does business for only a portion of a quarterly period, shall nevertheless be required to pay a fee in an amount equal to one-fourth of the annual fee. To obtain an annual license, if a report of gross sales or gross receipts is required, such sales or receipts shall be reported for the previous year, or, in the case of a new business or one not previously licensed, the gross sales or gross receipts reasonably intended or expected for the ensuing year.
B. Monthly Licenses. The monthly license fees in this chapter shall be due and payable to the city on or before the tenth day of each month.
C. Weekly Licenses. The weekly license fees in this chapter shall be due and payable to the city each Monday.
D. Daily Licenses. The daily license fees in this chapter shall be due and payable to the city each day. (Ord. 320 § 1, 1980; Ord. 326 (part), 1974).
5.04.090 License tax.
A. The amounts or rates of license fees to be paid by a person engaging in or carrying on any business or business enterprise in the city are fixed and determined as follows:
1. For public utilities, except those specifically exempted by state or federal law from the imposition of a license fee by a municipality upon the business of conducting a public entity, and except those operating under a revenue-producing franchise issued by the city, license fees shall be based on gross receipts as set forth in the schedule in subsection (A)(4) of this section.
2. For the following businesses:
a. Boxing and wrestling matches, fifty dollars per exhibition.
b. Carnivals, two hundred fifty dollars per week.
c. Circuses, fifty dollars per day.
d. Palmistry, clairvoyance and similar practices and fortune telling, five hundred dollars per quarter.
e. Dances at which admission is charged, twenty-five dollars each.
f. Merry-go-rounds, five dollars per day.
g. Portable skating rinks, fifty dollars per quarter.
h. Patent medicine vending, two hundred dollars per quarter.
i. Peddling or soliciting, ten dollars per day.
j. Selling bankrupt, depreciated or damaged stock of goods when the same are represented as being sold for less than the usual course of business, two hundred dollars per quarter.
k. Traveling exhibitions such as telescopes, microscopes, lung tester, ball and knife or ring throwing or any similar exhibitions for which no other rate is fixed herein, twenty-five dollars per week.
l. Traveling, advertising and sales promotional enterprises, whether operating directly or under sponsorship of a local organization, where any remuneration is received by such enterprise for its activity within the city, twenty-five dollars per quarter.
m. Traveling theatrical promoters or enterprises, whether operating directly or under sponsorship of a local organization for theatrical performances in the city, at which admission is charged, ten dollars per day for the first three days, six dollars per day thereafter.
n. Trucks, using city streets; every automobile truck using the city streets for the transportation or delivery of goods, wares and merchandise, except as are exempted from the payment of municipal license fees by state or federal law, and except when such trucks are used in connection with businesses already paying a license fee under this chapter, and except those who are under the highway carriers uniform business license tax pursuant to Section 4303 of the Public Utilities Code, ten dollars per quarter per truck.
o. Garage sales, two dollars and fifty cents each, for a sale not to exceed two consecutive days; second or more sales within any calendar year, ten dollars each.
p. Billiard and pool halls and card rooms, two dollars per table per quarter, in addition to merchants gross receipts license, hereinafter specified.
3. All contractors and subcontractors, including plumbing, refrigeration, roofing, trucking and hauling, shall pay a license tax based upon gross receipts at the following rates:
|
Average |
License Fee Per Annum |
||
|---|---|---|---|
|
$ |
0.00 |
to $ 3,000.00 |
$ 40.00 |
|
$ |
3,000.01 |
to $ 6,000.00 |
70.00 |
|
$ |
6,000.01 |
to $12,000.00 |
100.00 |
|
$ |
12,000.01 |
to $16,000.00 |
120.00 |
|
Over $16,000.01 |
140.00 |
||
4. Every merchant and person engaging in a retail business within the city, and each and every professional person engaging in business within the city, except those businesses otherwise provided for in subsections (A)(1), (A)(2) and (A)(3) of this section, shall pay annual license tax, based upon average monthly gross receipts at the following rates:
|
Average |
License Fee Per Annum |
||
|---|---|---|---|
|
$ |
0.00 |
to $ 3,000.00 |
$40.00 |
|
$ |
3,000.01 |
to $ 6,000.00 |
70.00 |
|
$ |
6,000.01 |
to $12,000.00 |
100.00 |
|
$ |
12,000.01 |
to $16,000.00 |
120.00 |
|
Over $16,000.01 |
140.00 |
||
5. For all businesses and enterprises not specified in subsections (A)(1), (A)(2), (A)(3) or (A)(4) of this section including, but not limited to, businesses and persons carrying on or conducting or managing a brokerage, other than commission broker, manufacturing, processing, public utilities, or wholesale business from a fixed place of business within the city, a minimum license fee of ten dollars per quarter shall be imposed; provided, that the city council may, in its discretion and after hearing, exact a higher license fee than the minimum fee herein specified. Five days’ notice of the time and place of such hearing shall be given to the applicant before the higher license fee is exacted.
6. Every person not having a fixed place of business in the city who engaged in business within the city, which business is not specifically licensed by any other section of this chapter, shall pay a license tax equal to .03′ on each dollar of gross receipts resulting from the business done within the city, payable annually; provided, however, that for any license year during which the annual gross receipts resulting from the operation of the business within the city do not exceed two thousand dollars, the total amount of the business license tax shall be ten dollars. Every person licensed under this section shall file a declaration of gross receipts resulting from business done within the city quarterly on forms prescribed by the city.
B. 1. None of the license taxes provided for by this section shall be so applied as to occasion an undue burden upon interstate or intercity commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the state of California.
2. When, by reason of the provisions of the Constitution of the United States or the Constitution of the state of California, the license tax imposed by this section cannot be enforced without there being an apportionment according to the amount of the business transacted and carried on in the city, the city clerk may make such apportionment of the tax as is necessary or desirable to overcome the constitutional objections.
3. In any case where a license tax is believed by a licensee or applicant to place an undue burden upon interstate or intercity commerce or be violative of such constitutional clauses, he may apply to the city clerk for an adjustment of the tax. Such application may be made before, at, or within six months after payment of the prescribed tax. The applicant shall, by sworn statement and supporting testimony, show his method of business and the gross volume or estimated gross volume of business and such other information as the city clerk may deem necessary in order to determine the extent, if any, of such undue burden or violation. The city clerk shall then conduct an investigation, and, after having first obtained the written approval of the city attorney, shall fix as the tax for the applicant, an amount that is reasonable and nondiscriminatory, or if the tax has already been paid, shall order a refund of the amount over and above the tax so fixed. (Ord. 724 (part), 2012: Ord. 556 § 2, 1996; Ord. 422 § 1, 1987: Ord. 287 §§ 2, 3, 1978; Ord. 236 (part), 1974).
5.04.100 Exemptions from fees.
A. No person shall be exempt from the necessity of procuring a license to do business in the city. License fees, however, will not be charged for licenses in the following cases:
1. Disabled war veterans who are exempt by state law from the payment of a license fee;
2. Solicitors, peddlers and hawkers engaged in interstate commerce and who are, by law, exempt from payment of a license fee, by virtue of the fact that they are engaged in interstate commerce;
3. Persons transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or other state from the payment to municipal corporations of such license fees or taxes;
4. A person soliciting or taking orders for goods, wares or merchandise as a wholesaler from bona fide or retail merchants in the city;
5. Persons conducting dances, concerts, lectures, parties or entertainment where all the receipts are appropriated exclusively to any church, school, religious, benevolent, patriotic or other public or beneficial purpose of a local character within the city;
B. In each of the above cases, the person claiming exemption from license shall first present satisfactory evidence to the city clerk that he is entitled to such exemption, which evidence shall include a written statement under oath setting forth such facts and giving such information as the clerk may require; and provided further that all such persons shall comply with all the other provisions of this chapter. (Ord. 240 § 2, 1974; Ord. 236 (part), 1974).
5.04.110 Fees constitute debt—Liability for chapter violation.
A. The amount of any license fee imposed by this chapter shall be deemed a debt to the city, and any person engaged in any business in the city without having secured the required license from the city to do so or having failed to pay in full the license fees provided in this chapter shall be liable to legal action in the name of the city in any court of competent jurisdiction for the amount of such license fee, plus any court costs incurred by the city.
B. The conviction and punishment of any person for transacting any business without a license shall not excuse or exempt such person from the payment of any unpaid license fees.
C. Nothing herein shall prevent a criminal prosecution for any violation of the provisions of this chapter. (Ord. 236 (part), 1974).
5.04.120 Cash bond.
A. A cash bond in the amount of fifty dollars shall be paid to and deposited with the city clerk in connection with the application for license for every person beginning the operation of a new business or business enterprise in the city and by every person who makes application for a license to conduct a business or business enterprise in the city and who has not heretofore been issued a previous license by the city for the conduct of such business or business enterprise. Such bonds shall be required of each applicant regardless of whether the applicant is exempt from payment of license fees under the terms of this chapter. If the applicant is exempt from the payment of license fees under this chapter, the cash bond hereby required of such applicant shall be returned to the applicant at the expiration of ninety days from and after the issuance of license to such applicant; provided, that the applicant has not violated any of the terms and provisions of this chapter, or other regulatory provisions of this code, or other ordinances of the city and has not given any false statements in his application for a license. If the applicant has violated any of the terms or provisions of this chapter, or other regulatory provisions of this code, or other ordinances of the city, or has given any false statements in his application for a license, the cash bond shall be forfeited to the city.
B. In the case of persons engaging in a business or business enterprise for which a license fee is payable under this chapter, the cash bond required shall be to secure the payment to the city for all license fees payable for six months after the first issuance of a license and to secure the faithful performance of the other provisions of this chapter and other and regulatory provisions of this code or other ordinances of the city, by the applicant. The cash bond shall be used and applied to the payment of such license fees, if such fees are not otherwise paid by the applicant when due; and if the applicant otherwise violates any of the terms and provisions of this chapter or other regulatory provisions of this code, or other ordinances of the city, the cash bond shall be forfeited to the city. At the expiration of six months after the original issuance of a license, the cash bond shall be returned to the applicant; provided, that such applicant’s license fees are paid in full and the applicant has not violated any of the terms and provisions of this chapter or other regulatory provisions of this code, or other ordinances of the city. (Ord. 236 (part), 1974).
5.04.130 Demands or notices not required.
No personal demands or notices to any persons owing any license fee, or additions for delinquencies under this chapter shall be necessary in order that such persons incur or be charged with the penalties of this chapter. (Ord. 236 (part), 1974).
5.04.140 Form and contents of license.
Each license issued under this chapter shall be upon the forms furnished by the city clerk and shall set forth and contain the name of the licensee, or of the business licensed; the address of the licensee, and the location of the business licensed; the period of time covered by such license; the amount of the license fee, if any payable for such license; and such other information as the clerk may deem necessary or proper. (Ord. 236 (part), 1974).
5.04.150 Nontransferable—Exceptions.
No license granted or issued under any provision of this chapter shall be transferable or assignable, except in the case of bona fide sale of the entire business for which such license was issued; and then only in case such is reported to the city clerk and the consent of such clerk to such assignment is obtained. The licensed business shall be carried on only at or from the place specified in the license, unless any change in location is reported to the city clerk, and the consent of the clerk to such change in location is obtained. (Ord. 236 (part), 1974).
5.04.160 Display of license.
Every person having a license under the provisions of this chapter shall produce and exhibit the same when applying for a renewal thereof; and whenever requested to do so by any police officer or by any officer authorized to issue or inspect licenses or to collect license fees. (Ord. 236 (part), 1974).
5.04.170 Revocation—Hearing.
The city council reserves the right to revoke any license issued under this chapter upon good cause shown. No license shall be revoked until after hearing, before the city council, notice of which hearing shall be given to a license holder not less than five days in advance of the date of such hearing, which notice shall either be delivered to the licensee personally, or left at his place of business, if he conducts his business in a fixed, bona fide and established place in the city, or by mailing the notice to him at the mail addresses stated on his application. Upon revocation of license, the city council may, in such cases as it deems proper, order refunded to the person whose license is revoked the cash bond and any prepaid license fees of such person. If the revocation of license is for violation of the terms and provisions of this chapter, this code or other regulatory ordinances of the city, the cash bond shall be forfeited to the city and the refund shall not exceed the amount of prepaid license fees. (Ord. 236 (part), 1974).
5.04.180 Unlawful to operate business without a license.
The conducting or operation by any person of any business enterprise, as the same is defined in this chapter, without having any unrevoked license from the city to do so, fully paid and in effect at the time, and without complying with any and all regulations of such business contained in this chapter is unlawful. (Ord. 236 (part), 1974).
5.04.190 Chapter not to permit unlawful business.
No provisions of this chapter shall ever be held or construed as licensing or permitting the establishment or carrying on of any unlawful business, game or other activity. Every such unlawful business, game or other activity is prohibited and no license shall be authorized or issued therefor. (Ord. 236 (part), 1974).
5.04.200 Enforcement.
It is the duty of the city clerk and the chief of police, and of all other lawfully authorized officers or employees of the city, to enforce the provisions of this chapter and to make collections of the license fees imposed. (Ord. 236 (part), 1974).
5.04.210 Effect.
Persons required to pay a license tax for transacting and carrying on of 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, or any other provision of the code of the city, and shall remain subject to the regulatory provisions of other ordinances and code provisions. (Ord. 236 (part), 1974).
5.04.220 Constitutionality.
If any section, subsection, sentence, clause or phrase of the ordinance codified in this section is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of said ordinance. The council declares that it would have passed said ordinance. The council declares that it would have passed said ordinance, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases have been declared invalid or unconstitutional, and if for any reason said ordinance should be declared invalid or unconstitutional, then the original ordinance or ordinances shall be in full force and effect. (Ord. 287 § 4, 1978).