Chapter 5.04 BUSINESS OPERATIONS TAX

“Gross receipts” means the total amount of the sale price of all sales and the total amount charged or received for the performance of any act, service or employment of whatever nature it may be for which a charge is made or credit allowed, whether or not such act, service or employment is done as a part of or in connection with the sale of materials, goods, wares, or merchandise. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature, and any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom an account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from gross receipts shall be cash discounts allowed and taken on sales, any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser, and such part of the sale price of the property returned by purchasers upon recision of the contract of sale as is refunded either in cash or by credit.

“Marijuana” means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, oil, salt, derivative, mixture, or preparation of the plant, its seeds or resin.

“Nonmedical marijuana business” means any business which entails the distribution, delivery, dispensing, exchanging, bartering or sale of nonmedical marijuana, including, but not limited to, transporting, manufacturing, cultivating, compounding, converting, processing, preparing, storing, packaging, wholesale, or retail sales of marijuana and any ancillary products. A business that solely involves medical marijuana activities authorized under Health and Safety Code Section 11362.765, as it may be amended from time to time, is not a nonmedical marijuana business.

“Person” means 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. (Ord. 1040 § 1, 2017; Ord. 599 § 2, 1982; prior code § 3-301)

5.04.020 Revenue measure.

The ordinance codified in this chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation; nor is the licensing of any business, trade or calling under this chapter to be construed as authorizing or sanctioning any departure or failure to comply with licensing provisions of the state or the United States of America, or any other applicable local, state or federal law. (Ord. 599 § 2, 1982; prior code § 3-302)

5.04.030 Substitute for other revenue ordinances.

Any person required to pay a business operations tax for transacting and carrying on any business under this chapter shall be relieved from the payment of any business operations tax for the privilege of doing such business which has been required under any other ordinance of the city, but shall remain subject to the regulatory provisions of such other ordinances. This section shall not apply to inspection fees. (Ord. 599 § 2, 1982; prior code § 3-303)

5.04.040 Effect of ordinance on past actions and obligations previously accrued.

Neither the adoption of the ordinance codified in this chapter nor its superseding of any portion of any other ordinance of the city shall in any manner be construed to affect prosecution for violation of any ordinance committed prior to the effective date of the ordinance codified in this chapter, nor be construed as a violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed or deposited, and any and all rights and obligations thereunto appertaining shall continue in full force and effect. (Ord. 599 § 2, 1982; prior code § 3-304)

5.04.050 License – Required.

Business operations taxes are levied upon all businesses, trades, professions, callings, and occupations in the city in the amounts prescribed in this chapter. A license will be issued after payment of the tax as evidence of compliance with the applicable provisions of this chapter. It is unlawful for any person to transact and carry on any business 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. The city further requires all applicants who qualify as “contractors,” as defined in Business and Professions Code Section 7026 et seq., to provide the city with a signed statement that such applicant is licensed under the provisions of the Business and Professions Code Section 7065 et seq., and that the license is in full force and effect, or, if such applicant is exempt from provisions of Business and Professions Code Section 7065 et seq., he shall furnish proof of the facts which entitle him to such exemption. (Ord. 599 § 2, 1982; prior code § 3-305)

5.04.060 License – Required for branch establishments.

A separate business operations tax license must be obtained for each branch establishment or location of the business transacted and carried on, 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; provided, that the warehouses and distributing plants used in connection with or incidental to a business licensed under the provisions of this chapter shall not be deemed two separate places of business or branch establishments; and, provided further, that any person conducting two or more types of businesses at the same location and under the same management, or at different locations, but which businesses use a single set of integrated set of books and records, may at his option pay only one tax calculated on all gross receipts of the types of businesses under the schedule that applies to the type of business of such person which accounts for the highest percentage of the total gross receipts of all the types of businesses. (Ord. 599 § 2, 1982; prior code § 3-306)

5.04.070 License – Exemptions.

A. Constitution or Statutes of the United States or the State. Nothing in this chapter shall be deemed or construed to apply to any person transacting or carrying on any business exempt by virtue of the Constitution or applicable provisions or statutes of the United States or of the state from the payment to municipal corporations of such business operations taxes as are prescribed in this chapter.

B. Claim for Exemption. 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. The city clerk shall, upon a certification by the tax collector, issue a letter of exemption to such person claiming exemptions without payment to the city of the business operations tax required by this chapter.

C. Charitable Institutions. Organizations of a nonprofit or charitable nature shall be exempt from the payment to the city of a business operations tax required by this chapter, upon the filing of a certified statement with the tax collector stating the facts upon which exemption is claimed. Exemption shall not be granted where the profits of the organization or group go to or are for the benefit of any particular individual.

To qualify for exemption, an applicant organization or group must be able to qualify as a nonprofit and/or charitable organization as such terms are used in the Constitution and statutes of the state. The city clerk shall, upon certification by the tax collector of such proper showing, issue a letter of exemption to such qualifying group or organization without payment of such business operations tax. (Ord. 599 § 2, 1982; prior code § 3-307)

5.04.080 License – Application – Issuance.

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 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 license;

C. The place where such business is to be transacted and carried on;

D. The date of expiration of the license; and

E. Such other information as may be necessary for the enforcement of the provisions of this chapter. (Ord. 599 § 2, 1982; prior code § 3-308)

5.04.090 License – Statement – Required for first license.

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

B. If the amount of the business operations tax to be paid by the applicant is based upon the gross receipts, he shall estimate the gross receipts for the period to be covered by the license to be issued. Such estimate, if accepted by the tax collector as reasonable, shall be used in determining the amount of business operations tax to be paid by the applicant; provided, however, the amount of the business operations tax so determined shall be tentative only, and such person shall, within thirty days after the expiration of the period for which such license was issued, furnish the tax collector with a sworn statement upon a form furnished by the city clerk showing the gross receipts during the period for such license, and the business operations tax for such period shall be finally ascertained and paid in the manner provided by this chapter for the ascertaining and paying of renewal business operations taxes for businesses, after deducting from the payment found to be due the amount paid at the time such first license was issued.

C. The tax collector shall not issue to any such person another license for the same or any other business until such person has furnished him the written statement and paid the business operation tax as required in this chapter. (Ord. 599 § 2, 1982; prior code § 3-309)

5.04.100 License – Statement – Required for renewal.

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 business operations tax to be paid by the applicant, a written statement upon a form to be provided by the city clerk, sworn to or before a person authorized to administer oaths, setting forth such information concerning the applicant’s business during the preceding calendar year as may be required by the tax collector to enable him to ascertain the amount of the business operations tax to be paid by the applicant pursuant to the provisions of this chapter. The tax collector will forward such form to all renewal applicants on June 1st annually by depositing such renewal forms in the United States Post Office, postage prepaid, addressed to the last known business address of the renewal applicant. Nonreceipt of the form thus forwarded does not relieve the renewal applicant of any liability or responsibility under this chapter for obtaining a renewal form, completing it as provided for in this chapter, and filing it with the tax collector. Renewal forms must be filed not later than July 31st annually. A late filing fee of fifteen dollars will be charged for processing a late renewal form. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-310)

5.04.110 License – Statement – Nonconclusive.

No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same 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 audit and verification by the tax collector, his deputies or authorized employees of the city, who are authorized to examine, audit, and inspect such books and records of any licensee or applicant for the amount of business operations tax due. All licensees, applicants for license, and persons engaged in business in the city are required to permit an examination of such books and records for the purpose aforesaid. The information furnished or procured pursuant to this section or SMC 5.04.090 and 5.04.100 shall be confidential. (Ord. 599 § 2, 1982; prior code § 3-311)

5.04.120 License – Statement – Failure to file.

If any person fails to file any required statement within the time prescribed, or if after the demand therefor made by the tax collector he fails to file a correct statement, the tax collector may determine the amount of business operations tax due from such person by means of such information as he may be able to obtain. In case such a determination is made, the tax collector shall give a notice of the amount so assessed by serving it personally or depositing it in the United States Post Office, postage prepaid, addressed to the person so assessed at his last known address. Such person may within ten days after the mailing or service of such notice make application, in writing, to the tax collector for a hearing on the amount of the business operations tax. If such application is made within the time prescribed, the tax collector must cause the matter to be set for hearing within fifteen days before the tax collector. The tax collector will consider all evidence produced, and written notice of the findings will be filed with the city clerk, who will cause such written notice of findings to be served upon the applicant in the manner prescribed above for the service of notice of assessment. (Ord. 599 § 2, 1982; prior code § 3-312)

5.04.130 License – Statement – Extension of time.

In addition to all other powers conferred upon him, the tax collector shall have the power, for good cause shown prior to the deadline, to extend the time required for any sworn statement for a period not exceeding five days, and in such case to waive the penalty that would otherwise have accrued. (Ord. 599 § 2, 1982; prior code § 3-314)

5.04.140 License – Appeal of issuance or refusal to issue.

Any person aggrieved by any decision of an administrative officer or agency in respect of the issuance or refusal to issue such license may appeal to the city council by filing a notice of appeal with the city clerk. The city clerk shall thereupon fix a time and place for hearing such appeal. The city clerk shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office, postage prepaid, addressed to such person at his last known address. (Ord. 599 § 2, 1982; prior code § 3-313)

5.04.150 License – Transfers.

No business 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 therefor and paying a fee of five dollars, have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business has or is to be moved. (Ord. 599 § 2, 1982; prior code § 3-315)

5.04.160 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. 599 § 2, 1982; prior code § 3-316)

5.04.170 License – Duplicates.

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 an affidavit attesting to such fact and, at the time of filing such affidavit, paying to the tax collector the sum of five dollars. (Ord. 599 § 2, 1982; prior code § 3-317)

5.04.180 License – Posting and keeping.

All licensees must post and keep their licenses in the following manner:

A. Any licensee transacting and carrying on business at a 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. Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license upon his person at all times while transacting and carrying on such business. (Ord. 599 § 2, 1982; prior code § 3-318)

5.04.190 Tax – How and when payable.

A. Unless otherwise specifically provided, all annual business operations taxes are for the period beginning July 1st each year through June 30th of the following year, or any fractional part of that period. Business operations taxes are due and payable not later than thirty days from the date of the tax collector’s statement of taxes due. For renewal licenses, business operations taxes are due and payable by August 31st each year or not later than thirty days from the date of the tax collector’s statement of taxes due, whichever date is later.

B. Except as otherwise provided in this chapter, business operations taxes other than annually required under this chapter shall be due and payable in advance for the entire period for which paid. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-319)

5.04.200 Tax – Penalty for failure to pay when due.

For failure to pay business operations taxes when due, the tax collector shall add a penalty of fifty percent of the business operations tax due. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-320)

5.04.210 Tax – Rate.

Every person transacting or carrying on any business other than those businesses enumerated in SMC 5.04.220 to 5.04.420, inclusive, shall pay an annual business operations tax based upon the gross receipts resulting from the operation of such business in accordance with the following scale:

A. Gross receipts of twenty-five thousand dollars or less per year, the sum of thirty-seven dollars and fifty cents;

B. Gross receipts in excess of twenty-five thousand dollars per year, the sum of thirty-seven dollars and fifty cents plus nine dollars for each five thousand dollars of gross receipts, or fraction thereof, in excess of twenty-five thousand dollars per year. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-321)

5.04.220 Tax – Public utilities.

A. Every person transacting or carrying on the business of supplying electrical power, telephone service, water service, gas service, or other public utilities that are not otherwise licensed in this chapter shall pay a business operations tax based upon the annual gross receipts resulting from the operation of the business, in accordance with the following scale:

1. Gross receipts of one hundred thousand dollars or less per year, the sum of thirty-seven dollars and fifty cents;

2. Gross receipts in excess of one hundred thousand dollars per year, the sum of thirty-seven dollars and fifty cents plus thirty-seven dollars and fifty cents for each one hundred thousand dollars of gross receipts, or fraction thereof, in excess of one hundred thousand dollars per year.

B. If any person transacting the business enumerated in this section carries on a retail, wholesale or jobbing business or any other business, he shall be required to obtain a license and pay the tax specified for such other business in addition to the license and tax specified in this section. The receipts enumerated in this section from services performed wholly outside of the city shall not be included in their gross receipts for the purpose of computing the business operations tax. Every person taxed in this section who does not maintain a fixed place of business within the city shall be required to obtain a license and pay the tax specified in this section with respect to any service performed by him within the city. Any franchise to use the streets of the city, heretofore or hereinafter granted to any public utility, shall not be deemed to waive or be in lieu of any of the licensing provisions of this chapter. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-322)

5.04.230 Tax – Businesses dealing in personal services.

A. Except as otherwise provided in this chapter, or by other sections of the municipal code or ordinances, a business in which personal services are of prime material relevance to the production of gross receipts, specifically all of the following businesses, occupations, or professions:

Abstractor

Accountant

Architect

Advertising agent

Appraiser

Assayer

Attorney

Auditor

Bacteriologist

Baths, public, steam

Brokers

Business school

Chemists

Chiropodists

Chiropractor

Civil engineer

Cleaning buildings, windows

Collection agency

Credit bureau

Crematorium

Dancing school

Dancing teacher

Designer

Dental laboratory

Dental technician

Dentist

Dermatologist

Detective

Doctor

Employment agent

Electrical engineer

Engineer

Finance company

Funeral director

Geologist

Grinder

Gunsmith

Income tax expert

Insurance adjuster

Interior decorator

Interpreter

Janitor

Laboratory technician

Landscape architect

Lapidary

Lawyer

Livery stable

Locksmith

Masseur

Mechanical engineer

Medical laboratory

Messenger service

Mineral bath

Music school

Music teacher

Oculist

Optician

Optometrist

Orthopedist

Osteopath

Parking lot

Pathologist

Patrol service

Physician

Physiotherapist

Piano tuner

Plunge

Posture correction

Practitioner nature, etc.

Public stenographer

Radiographer

Sign painter

Storage warehouse

Structural engineer

Surgeon

Surveyor

Taxidermist

Title insurance

Turkish baths

Undertaker

Urologist

Veterinarian

Watch repairing

Weighing machine

X-ray technician

shall pay a business operations tax annually based upon the gross receipts resulting from operations of such business, occupation or profession in accordance with the following scale:

1. Gross receipts of twenty-five thousand dollars or less per year, the sum of thirty-seven dollars and fifty cents;

2. Gross receipts in excess of twenty-five thousand dollars per year, the sum of thirty-seven dollars and fifty cents plus nine dollars for each five thousand dollars of gross receipts, or fraction thereof, in excess of twenty-five thousand dollars per year.

B. Any person who transacts one or more of the businesses, occupations, or professions enumerated in subsection A of this section at one location shall be required to obtain only one license and shall pay the business operations tax specified in this section, based upon the aggregate of his gross receipts realized from the operation of all said businesses, professions or occupations. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-323)

5.04.240 Tax – Vehicle businesses.

Every person carrying on the business enumerated in this section shall pay an annual business operations tax per vehicle as follows:

Business	Annual Tax
Ambulance service	$37.50
Automobile or trucks for hire or rent	37.50
Cleaning and/or laundry trucks (no fixed place of business)	37.50
Dairy products, retail (no fixed place of business)	37.50
Delivery of gasoline, oil, or other petroleum products	75.00
Scooters or motorbikes, rental	37.50
Taxicabs	37.50
Wholesale delivery	52.50
Wholesale pickup	52.50

For the purpose of this section, a truck trailer and semitrailer shall be considered one vehicle. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-323.1)

5.04.250 Tax – Real property rental.

A. Every person engaged in the business of owning, conducting or operating an apartment house, dwelling houses, house court, bungalow, or contiguous dwelling units, containing three or more rental units or other accommodations for dwelling, sleeping or lodging in such place, shall pay a business operations tax for each fiscal year in the amount of seven dollars and fifty cents per rental unit.

B. For the purpose of this section, “rental unit” means each portion of any facility described in subsection A of this section customarily rented to or occupied by a person or family to the exclusion of others, and includes the portion of the premises occupied by the manager thereof or any other person if such portion contains dwelling or sleeping facilities. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-323.2)

5.04.260 Tax – Real estate broker.

Every person transacting or carrying on the business of real estate broker shall pay a business operations tax annually based upon gross receipts resulting from operations of such business in accordance with the following scale:

A. From and after July 1, 1978, gross receipts of twenty-five thousand dollars or less per year, the sum of forty-five dollars;

B. Gross receipts in excess of twenty-five thousand dollars per year, the sum of forty-five dollars plus ten dollars for each five thousand dollars of gross receipts, or fraction thereof, in excess of twenty-five thousand dollars per year. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-323.3)

5.04.270 Tax – Retail businesses not otherwise specified.

Every person transacting or carrying on a retail business, unless otherwise specified in this chapter, shall pay an annual business operations tax based upon the gross receipts resulting from the operation of such business in accordance with the following scale:

At Least	But Less Than	Business Operation Tax
$1.00	$50,000	$37.50

For each additional five thousand dollars gross receipts, or fraction thereof, the business operations tax is four dollars and fifty cents. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-324)

5.04.280 Tax – Automobile, truck, trailer, motorcycle and boat sales.

A. Every person carrying on the business of automobile, truck, trailer, motorcycle, and boat sales, either new or used, shall pay an annual business operations tax based on the following formula:

1. Gross receipts of one hundred thousand dollars or less per year, the sum of seventy-five dollars;

2. Gross receipts in excess of one hundred thousand dollars per year, the sum of seventy-five dollars plus one dollar for each five thousand dollars of gross receipts, or fraction thereof, in excess of one hundred thousand dollars per year.

B. Every person licensed under this section shall also be permitted to rent or lease automobiles, trucks, trailers, motorcycles and boats without an additional license; provided, however, the gross receipts from the leasing or renting shall be added to the gross receipts under this section. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-324.1)

5.04.290 Tax – Wholesale or jobbing business.

Every person transacting and carrying on a wholesale or jobbing business shall pay an annual business operations tax based upon the gross receipts resulting from the operation of such business in accordance with the following scale:

A. Gross receipts of one hundred thousand dollars or less per year, the sum of thirty-seven dollars and fifty cents;

B. Gross receipts in excess of one hundred thousand dollars per year, the sum of thirty-seven dollars and fifty cents plus thirty-seven dollars and fifty cents for each one hundred thousand dollars of gross receipts, or fraction thereof, in excess of one hundred thousand dollars per year. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-325)

5.04.300 Tax – Contractors.

A. Every person transacting or carrying on the business of general engineering or building contractor, or plumbing or electrical roofing contractor, or other specialty contractor, shall pay a business operations tax based upon annual gross receipts resulting from the operation of the business in accordance with the following scale:

At Least	But Less Than	Business Operations Tax
$1.00	$25,000.00	$18.75
25,000.00	50,000.00	37.50
50,000.00	75,000.00	56.25
75,000.00	100,000.00	75.00

For additional gross receipts beyond one hundred thousand dollars, the license tax will follow the above scale in increments of eighteen dollars and seventy-five cents, thirty-seven dollars and fifty cents, fifty-six dollars and twenty-five cents and seventy-five dollars.

B. If any person transacting the business enumerated in this section shall carry on a retail, wholesale or jobbing business or any other business, he shall be required to obtain a license and pay the taxes specified for such other business in addition to the license specified in this section. The receipts of the contractors enumerated herein from contracts performed wholly outside of the city shall not be included in their gross receipts for the purpose of computing the business operations tax. Any such contractor who does not maintain a fixed place of business within the city shall be required to obtain a license and pay the tax specified in this section with respect to any contract or work performed by him within the city.

C. A contractor making application for a business license shall present evidence of having a valid state contractor’s license. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-326)

5.04.310 Tax – Manufacturing.

A. Every person carrying on the business of manufacturing shall pay an annual business operations tax based upon the gross receipts resulting from the operation of such business in accordance with the following scale:

1. Gross receipts of one hundred thousand dollars or less per year, the sum of thirty-seven dollars and fifty cents;

B. If any person carrying on the business of manufacturing also engages in the retail business, whether selling products manufactured by him or not, he shall be required to obtain a license and pay the tax specified for such retail business in addition to the license specified in this section; provided, that any person engaged in the business of manufacturing shall not be required to obtain a license in addition to his manufacturing license to engage in the wholesale or jobbing business with respect to products manufactured by him. (Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-327)

5.04.320 Tax – Nonmedical marijuana businesses.

A. Every person carrying on a nonmedical marijuana business shall pay an annual business operations tax at a rate of up to ten percent of gross receipts.

B. Notwithstanding Elections Code Section 9217 or the maximum tax rate of ten percent of gross receipts imposed under subsection A of this section, the city council may, in its discretion, at any time by ordinance, implement a lower tax rate for all nonmedical marijuana businesses or establish differing tax rates for different categories of nonmedical marijuana businesses, as defined in such ordinance, subject to the maximum rate of ten percent of gross receipts. The city council may, by ordinance, also increase any such tax rate from time to time, not to exceed the maximum tax rate of ten percent of gross receipts established under subsection A of this section. The city council may make other minor technical changes to the ordinance to respond to changes in applicable state law. (Ord. 1040 § 3, 2017)

5.04.330 Tax – Other businesses.

Every person transacting and carrying on the business enumerated in SMC 5.04.330 through 5.04.420 shall pay a business operations tax as set forth in said sections. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-328. Formerly 5.04.320)

5.04.340 Tax – Christmas tree lots.

Every applicant for a business operations license to operate a lot for the sale of Christmas trees shall deposit a surety bond in the amount of two hundred dollars with the city tax collector to insure the lot being left in a clean condition within seven days after the discontinuance of the sale of trees. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-328.7. Formerly 5.04.330)

5.04.350 Tax – Circuses and carnivals.

Every person holding, promoting, managing or giving any concert, traveling show, or exhibition for commercial purposes, whether in a tent or otherwise, shall pay a business operations tax of one thousand one hundred twenty-five dollars for the first three days, or any part thereof, and seventy-five dollars per day thereafter; provided, however, that no license shall be required for any exhibition, show, or concert activity actually given and participated in by local schools, patriotic or civic organizations. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-328.2. Formerly 5.04.340)

5.04.360 Tax – Dances.

Every person carrying on the business of conducting public dances at which an admission fee is charged, collected or received shall pay a business operations tax of seven dollars and fifty cents for each dance with a maximum of thirty-seven dollars and fifty cents per quarter. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-328.3. Formerly 5.04.350)

5.04.370 Tax – Nonappurtenant outdoor advertising structures.

All persons, firms or corporations owning nonappurtenant outdoor advertising structures shall pay a business operations tax of fifteen cents per square foot of reader board area per year. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-328.9. Formerly 5.04.360)

5.04.380 Tax – Pawnshops and pawnbrokers.

All establishments operating as pawnshops and/or persons operating as pawnbrokers and/or businesses which loan money on pledged tangible personal property shall pay a business operations tax of one hundred fifty dollars per year. Such license shall not be issued until and unless the applicant presents a certificate of clearance from the chief of police certifying that the business conforms in all respects with the laws and regulations of the city and the state. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-328.6. Formerly 5.04.370)

5.04.390 Tax – Peddlers and itinerant vendors.

Every person carrying on the business of peddling or selling or soliciting orders for services or goods, wholesale orders excepted from this section, not having a regularly established place of business in the city, shall pay a business operations tax of twenty dollars per day with a maximum of seventy-five dollars per month. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-328.4. Formerly 5.04.380)

5.04.400 Tax – Pinball machines and jukeboxes.

Every person possessing or maintaining, on premises owned or leased by him, any mechanical game, pinball machine, music box, jukebox, or similar game or machine operated solely for amusement shall pay a business operations tax of four percent of gross receipts. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-328.8. Formerly 5.04.390)

5.04.401 Retail cannabis dispensary.

All establishments selling cannabis or cannabis related products for adult use shall pay a business operations tax equal to six percent of annual gross receipts. New cannabis dispensaries shall pay an initial tax for the first quarterly payment based on six percent of two thousand dollars of annual sales per square foot of the dispensary’s floor area. (Example: three hundred square feet of floor area times two thousand dollars equals six hundred thousand dollars of gross receipts times six percent equals thirty-six thousand dollars divided by four equals nine thousand dollars.) Payments are due quarterly on July 1st, October 1st, January 1st and April 1st each year. (Ord. 1043 § 5, 2017)

5.04.402 Nonretail cannabis uses.

All establishments selling wholesale cannabis and cannabis related products, manufacturing cannabis related products, processing cannabis related products, researching cannabis related products, and testing cannabis related products shall pay a business operations tax equal to two percent of annual gross receipts. New nonretail cannabis uses shall pay an initial tax for the first quarterly tax payment based on two percent of one thousand dollars of annual sales per square foot of the use’s floor area. (Example: three hundred square feet of floor area times one thousand dollars equals three hundred thousand dollars of gross receipts times two percent equals six thousand dollars divided by four equals one thousand five hundred dollars.) Payments are due quarterly on July 1st, October 1st, January 1st and April 1st each year. (Ord. 1043 § 5, 2017)

5.04.410 Tax – Retail liquor and beverage stores.

All establishments selling liquor and other beverages and/or retail food items in conjunction with the sale of retail liquor for off-site consumption as the principal sales items shall pay a business operations tax of seventy-five dollars per year. This rate shall not apply to retail food establishments and similar establishments which do not sell liquor or alcoholic beverages as the principal item. (Ord. 1040 § 2, 2017; Ord. 650, 1983. Formerly 5.04.400)

5.04.420 Tax – Vending machines.

The business operations tax for vending machines shall be computed as follows:

Annual Gross Receipts
From	To	Business Operations Tax
$1.00	$1,000.00	$7.50
1,001.00	2,000.00	15.00
2,001.00	10,000.00	30.00
10,001.00	20,000.00	97.50
20,001.00	30,000.00	172.50
30,001.00	40,000.00	247.50
40,001.00	50,000.00	322.50
50,001.00	60,000.00	405.00
60,001.00	70,000.00	487.50
70,001.00	80,000.00	577.50
80,001.00	90,000.00	667.50
90,001.00	100,000.00	757.50

(Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-328.1. Formerly 5.04.410)

5.04.430 Vending machines – Liability for licensing.

The owner of the business establishment and/or premises whereat vending machines are located shall be liable and responsible for the licensing of such vending machines. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-328.10. Formerly 5.04.420)

5.04.440 Vending machines – Impoundment when unlicensed.

Unlicensed vending machines shall be impounded and held under the direction of the chief of police at such location as he may designate. Such operations are subject to redemption upon the payment of the business operations tax which is delinquent, together with a penalty of seven dollars and fifty cents per machine. At the time of such redemption, the owner of the machine shall exhibit credentials or proof establishing ownership and shall further sign a receipt agreeing to hold the city and/or its employees harmless by reason of the delivery of the machine. In the event that any machine remains unredeemed for ninety days, notice of sale shall be sent to the owner of the machine, if his identity can be ascertained, at his last known address by certified mail. When ten days have elapsed after the mailing of the letter, the machine may be sold at public auction and the proceeds shall be paid into the general fund of the city. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-328.11. Formerly 5.04.430)

5.04.450 Tax – Proration.

A. Any business operations tax required to be paid on an annual basis according to this code shall be prorated when the application for the license is made by the new owner of a business which has already been issued a license for the current year.

B. The proration shall take place in the following manner: The new owner of the existing business shall pay one fourth of the annual business operations tax, as computed for the prior owner, for the calendar quarter in which the application is made, and one-fourth of this annual tax for each remaining quarter of the fiscal year. If the transfer and the sale of the business shall be completed without the new owner applying for the business operations license, this proration shall not apply. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-334. Formerly 5.04.440)

5.04.460 Tax – Deemed debt to city.

The amount of any business operations tax imposed by the provisions of this chapter shall be deemed a debt to the city, and any person carrying on any business without first having procured a license from the city so to do shall be liable in an action in the name of the city, brought in any court of competent jurisdiction, for the amount of the business operations tax imposed upon such business. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-330. Formerly 5.04.450)

5.04.470 Tax – Additional amount for street decorations.

Each person who is required to pay a business operations tax pursuant to this chapter shall pay one dollar in addition to the tax otherwise payable. The additional one dollar shall be used for city street decorations. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-335. Formerly 5.04.460)

5.04.480 Investigation of persons and premises to assure compliance.

The tax collector immediately upon the issuance of any license under the provisions of this chapter shall forward a copy thereof to the city clerk who may cause an investigation to be made of the person and premises licensed to ascertain that all applicable laws of the state and provisions of the municipal code of the city are being observed. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-332. Formerly 5.04.470)

5.04.490 Fee for police clearance or investigative report.

Any person who is required to receive a clearance and investigative report from the police department, including fingerprinting and/or investigation, shall pay a fee of fifteen dollars for this service. It is expressly provided that this fee is not a license tax or fee; it shall be solely to cover the cost of enforcement of the regulatory act and procedure. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-332.1. Formerly 5.04.480)

5.04.500 Police clearance required for solicitors, hawkers, peddlers and itinerant vendors.

All solicitors, hawkers, peddlers and itinerant vendors shall be required to obtain police clearance. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-332.2. Formerly 5.04.490)

5.04.510 Violations of state laws and other provisions not authorized.

The granting of a business operations license under the provisions of this chapter shall not be construed as authorizing the violation of any laws of the state or any other provisions of this municipal code. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-333. Formerly 5.04.500)

5.04.520 Tax collector’s duties to be performed by finance director.

All of the provisions of this chapter, providing for the performance of official action on the part of the tax collector, shall be performed by the finance director. (Ord. 1040 § 2, 2017; Ord. 643, 1983; Ord. 599 § 2, 1982; prior code § 3-331. Formerly 5.04.510)

5.04.530 Enforcement.

It is the duty of the chief of police and he is directed to enforce each and all of the provisions of this chapter, and it is his duty to cause a complaint to be filed against any and all persons found to be violating any of the provisions of this chapter. (Ord. 1040 § 2, 2017; Ord. 599 § 2, 1982; prior code § 3-329. Formerly 5.04.520)