Chapter 2.08 BUSINESS LICENSE TAX*

* Prior ordinance history: Ords. 648, 650, 676, 684, 688, 689, 707, 714, 725, 730, 762, 773, 818, 832, 836, 900, 919, 922, 940, 941, 1012, 1031, 1041, 1069, 1073, 1091, 1098, 1100, 1123, 1145, 1152, 1187, 1198, 1265, 1291, 1298, 1303, 1312, 1355, 1376, 1434, 1680, 1695, 1781, 1814, 1816, 1821, 1858.

2.08.010 Title.

This chapter shall be known, and may be cited, as the “Business License Tax Ordinance.”

(Ord. 1949 § 1 (part), 5-25-93)

2.08.020 Purpose.

This chapter is enacted solely for the purpose of raising revenue for general municipal purposes. It is not intended to be regulatory. The payment of a business license tax required by this chapter, its receipt by the city and the issuance of a business license to any person shall not entitle the holder thereof to conduct any business unless such person has complied with all requirements of this code and all other applicable laws, nor to conduct any business in any building or on any premises designated in such business license if such building or premises are in a zone or locality in which the conduct of such business is in violation of any statute or ordinance.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.030 Definitions.

A. For purposes of this chapter, the following terms shall have the following meanings unless it is apparent from their context that a different meaning is intended:

1. “Agent” means a person who acts for, on behalf of or in the place of another person and who receives compensation, either directly or indirectly, for services rendered.

2. “Broker” means a person who acts as an independent contractor in the purchase or sale of insurance, real or personal property, stocks, bonds, certificates, notes or other items of value.

3. “Brokerage” means a business involving the purchase or sale of insurance, real or personal property, stocks, bonds, certificates, notes or other items of value.

4. “Business” means all commercial, industrial and entrepreneurial activities engaged in or caused to be engaged in within the city, including any trade, profession, occupation, vocation, calling or livelihood, and the activities of independent contractors, but excluding the services rendered by an employee to his or her employer.

5. “Business license” means the license issued to a person under this chapter which evidences payment of the applicable tax prescribed or authorized by this chapter.

6. “City” means the city of South Gate, a municipal corporation of the state of California.

7. “Contractor” means a person who, individually or by or through others, undertakes to construct, alter, repair, add to, subtract from, improve, remove or demolish any building or structure, or portion thereof. The following shall not be included within this definition:

a. A person acting solely in the capacity of an architect or civil engineer;

b. An owner-builder as defined in this section;

c. Employees of a contractor.

8. “Engage in business” means to commence, operate, manage or carry on a business, or to exercise corporate or franchise powers, whether as an owner or by means of one or more officers, agents, managers, employees, servants or otherwise, within the boundaries of the city, regardless of whether the business is operated from a fixed location within the boundaries of the city.

9. “Gross receipts” means the total amount charged and received during an annual license period for the performance of any act or service, or for the sale of any product or commodity, whether for cash, credit or property of any kind; provided, however, that the following shall be excluded in determining gross receipts:

a. Cash discounts allowed or taken;

b. Any transaction which is exempted from taxation by the laws or constitution of California or of the United States;

c. Any tax required by law to be added to a purchase price and collected from the purchaser or consumer;

d. Such portion of any payment previously received which is refunded upon the return of property by a purchaser to a seller.

10. “Independent contractor” means a person who is engaged to aid in the business of any other person, whether as a professional, as defined herein, or whether pursuant to any license, certificate or registration authorized by the California Business and Professions Code, as the same now exists or as may hereafter be amended, and who receives remuneration either through commission or pursuant to any contract of employment not involving the payment of regular wages or salary.

11. “Listing/leads service” means the business of obtaining and listing leads or information on various classifications and categories of personal property, including furniture, electrical appliances, toys, sporting goods, boats, tools, machinery and automobiles, and the furnishing of lists of such leads and information to other persons for a monetary consideration all or any portion of which is paid in advance of any consummation of a transaction involving the purchase, sale, lease, rental or use of the personal property involved. This term shall not apply to the activities of any real estate broker or real estate salesperson.

12. “Mailing address only” means the maintenance by a person, at any location in the city, of a mailing address for any business, and at which location no business activities are conducted, no employees are engaged, and no stock-in-trade, supplies or equipment is kept or maintained.

13. “Manufacturing business” means all activities of a commercial or industrial nature wherein labor or skill is applied to materials, by hand or machinery, so that, as a result thereof, a new, different or useful article of tangible personal property or article of trade or commerce is produced. Said term includes the production or fabrication of specially made or custom-made articles for sale or distribution.

14. “Motel-residential” means an existing transient motel, as defined in this section, which has been previously constructed, modified or expanded in compliance with the development standards specified in Section 11.40.150 and which, pursuant to a conditional use permit, is converted into one or more buildings or structures where all units therein are occupied or intended or designed for occupancy by individuals who are required by the owner or operator thereof to execute a contract of tenancy for a period in excess of thirty consecutive calendar days.

15. "Motel-transient" means one or more attached or detached buildings or structures containing units for dwelling, lodging or sleeping purposes where a majority of such units open directly to the outside and where parking facilities or parking spaces are adjacent or in close proximity to each unit, and such units are occupied by individuals for a period of less than thirty consecutive calendar days. Such term shall be deemed to include tourist courts, motor courts, automobile courts and motor lodges.

16. "Owner-builder" means any person engaging in the construction of a single-family dwelling, including the construction of accessory structures or additions thereto, which single-family dwelling is or will be occupied by such person. An owner-builder shall not be required to obtain any business license or pay any business license tax; provided, however, that any subcontractor engaged by an owner-builder shall be subject to all applicable provisions of this chapter.

17. "Person" means any individual, domestic or foreign corporation, firm, association, syndicate, joint-stock company, partnership, joint venture, club, business or common law trust, society, estate, receiver, retirement plan, trustee or any other group or combination of individuals or entities acting as a unit.

18. "Professional" means any person, including any professional corporation, wherever located, engaged in or carrying on within the city, any profession requiring satisfactory compliance with written or oral examination standards adopted by a branch of the state or federal government. Such professions include, but are not limited to, architects, attorneys, accountants, auditors, audiologists, chiropractors, clinical social workers, dentists, electrologists, engineers, geologists, gemologists, herbalists, marriage, family and child counselors, morticians, naturopaths, nurses (registered), oculists, opticians, optometrists, osteopaths, physicians, podiatrists, psychologists, speech pathologists, surveyors and veterinarians.

19. "Service business" means a business engaged in providing or performing labor for the benefit of another within the city; or supplying some service for the benefit of another within the city which does not produce a tangible commodity; or an activity in which any person performs any personal service for another; or services pursuant to which real or personal property, stocks, bonds or other financial instruments, evidences of debt, contracts of insurance or any money or credits are exchanged, leased, transferred or loaned. Said term also includes every business engaged in maintaining, storing, cleaning, improving or repairing tangible commodities within the city, whether or not such business is conducted from fixed premises, a vehicle, or a mobile location within or outside the city. Said term shall not be deemed to include theatrical performances, exhibitions or temporary amusements, nor professional services, nor telephone services.

20. "Tax collector" means the finance director of the city or such other person as the director shall designate.

21. "Taxpayer" means a person required to pay a tax imposed by this chapter.

22. "Wholesale business" means the business of selling goods, wares, merchandise or other products for the purpose of resale and not to the ultimate consumer.

B. The definitions set forth in Chapter 2.10, as they relate to words, terms and phrases utilized in this chapter, shall be applicable in interpreting and construing such words, terms and phrases.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.040 Business license required.

A. Generally. It is unlawful for any person to commence or conduct, to purport to commence or conduct, or to engage in any business in the city, either directly or indirectly, without first obtaining a business license and paying the required tax therefor.

B. Advertising Businesses. No person shall advertise or announce a business located in the city unless a business license for such business has been obtained pursuant to this chapter. Advertising or announcing includes, but is not limited to, disseminating pamphlets or handbills, publishing newspaper announcements, and purchasing radio or television commercials.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.050 Business license taxes—Payment.

A. Business license taxes shall be paid in advance to the tax collector in lawful money of the United States or by a check or money order drawn on a bank in the United States. Any license issued upon payment by check shall be void if such check fails to the clear the bank.

B. If the tax collector, as a result of any audit or other information received, determines that additional license taxes are to be paid by any business, such additional amount, plus any penalties or interest thereon, shall be billed by the tax collector to the business licensee, and said amount shall be due and payable not later than ten days after such billing.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.060 Business license taxes—Proration by tax collector.

A. Proration of Fixed Annual License Tax. If the applicable license tax for a new business is established as a fixed amount which is to be paid annually, whether on a calendar or fiscal year basis, the license tax may be prorated by the tax collector on not less than a quarterly basis for such portion of the calendar or fiscal year as then remains; provided, however, that the applicant shall also pay the required license tax for the next succeeding annual license period.

B. Proration of Other License Taxes. If the applicable license tax for a new business is not established as a fixed amount which is to be paid on an annual basis, and the business license is to be issued during the last quarter of a license period, the tax collector may prorate the license tax on not less than a monthly basis for such portion of the license period as then remains; provided, however, that the applicant shall also pay the required license tax for the next succeeding license period.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.070 Business license taxes—Delinquencies.

A. Generally. All business license taxes shall become delinquent if not paid by five p.m. on the date that the tax becomes due and payable. If the date that the tax becomes due and payable falls on a Saturday, Sunday, a date on which city offices are closed or a national or state holiday, the tax will be delinquent if not paid by five p.m. on the next working day.

B. Penalties. For failure to pay the business license tax when due, the tax collector shall add a penalty of fifteen percent of the entire license tax, or unpaid portion thereof, on the first day of the month commencing after the due date. For every thirty days’ delinquency thereafter, an additional penalty of ten percent of the entire license tax, or unpaid portion thereof, shall be added.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.080 Business licenses—Issuance to persons operating under fictitious names.

A business license may be issued to a person operating under a fictitious business name who has complied with all of the applicable provisions of the California Business and Professions Code. Otherwise, all licenses shall be issued in the true name of the person applying for a license, as it appears on the application for a license.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.090 Unlawful business.

No business license issued under the provisions of this chapter shall be construed as authorizing any business activity which is prohibited under the laws of the United States, the federal or state constitutions, this code or any applicable law, ordinance, rule or regulation. Any such business license shall be void.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.100 Duplicate license.

A licensee shall report to the tax collector the loss of any license, whether in the form of a sticker, tag, card, certificate or otherwise. The tax collector shall issue a duplicate to the licensee upon the payment of the fee established by resolution of the city council.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.110 Presentment of license.

A. Posting. Every person required to have a business license pursuant to the provisions of this chapter, and who conducts, manages or carries on a business activity at a fixed location, shall keep such license posted in a conspicuous place on the business premises.

B. Carrying. Every person required to have a business license pursuant to the provisions of this chapter and who does not have a fixed place of business shall carry such license at all times when conducting the business activity for which such license was issued.

C. Presentation on Demand. Every person required to have a business license pursuant to the provisions of this chapter shall produce the license when requested by any city official who is authorized to issue or collect license taxes, or who is authorized to conduct inspections or otherwise enforce the provisions of this chapter or of this code.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.120 Payment of other applicable fees.

A. No person required by this chapter to pay license taxes shall be relieved from the payment of any applicable regulatory, inspection or permit fees, or from compliance with any regulations required by any other provisions of this code.

B. In connection with any new business license issued under the provisions of this chapter, which business license requires a prior inspection by the health officer, or the issuance of a certificate of occupancy by the director of building and safety, or both, the applicant shall pay all applicable fees pertaining thereto, and shall arrange for all necessary inspections by such officials or their designees.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.130 Tax collector—Duties.

A. Generally. The tax collector and authorized deputies shall be empowered with the right to issue citations and to issue all necessary rules and regulations to implement the provisions of this chapter and to do all things necessary and proper to effectuate the purpose and intent of this chapter. (Ord. 1962 § 1, 10-26-93).

B. Apportionment of Taxes. Where, by reason of the provisions of the Constitution of the United States or the Constitution of the State of California, the business license tax imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the city, or in the state of California, as the case may be, the tax collector may make such rules and regulations for the apportionment of the tax as are necessary to comply with constitutional requirements. Such rules and regulations shall be approved by the city attorney prior to becoming effective.

C. Deposit of Taxes and Fees with City Treasurer. The tax collector shall, at the end of each business day, deposit with the city treasurer all business license taxes and business permit fees, and penalties thereon, as authorized by this chapter and by Chapter 2.10, which were collected during that business day.

(Ord. 1962 § 1, 10-26-93; Ord. 1949 § 1 (part), 5-25-93)

2.08.140 No license issued or renewed where applicant is indebted to city.

No business license shall knowingly be issued or renewed when, at the time of making application for any license or renewal thereof, the applicant is indebted to the city for any unpaid license taxes, permit fees, transient occupancy taxes or unpaid invoices for any rates, fees or charges imposed pursuant to this code. The tax collector may enter into an agreement with any person so indebted to the city to establish a schedule for the payment of such indebtedness and any delinquencies and interest thereon. In such agreement, the debtor shall acknowledge such debt to the city and shall agree that if any default occurs in the payment of any installment agreed to be paid thereunder, the entire amount to be paid shall become immediately due and payable, and that, if suit is brought to enforce collection of the amount agreed to be paid under such agreement, the debtor shall pay all costs of suit incurred by the city, including reasonable attorneys’ fees. If such an agreement is executed, and all other provisions of this chapter are complied with, a license for the applicable license period may be issued to such person upon payment of the license tax prescribed for such license period, together with any penalties thereon.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.150 License not transferable.

No license issued pursuant to this chapter may be transferred; provided, however, that where a license is issued authorizing a person to conduct business at a specified location, the licensee may, upon application and payment of a fee in an amount established by resolution of the city council, have the previously issued license amended so as to authorize the conduct of such business at a different location, except as may otherwise be provided in this chapter or in Chapter 2.10.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.160 Preparation and issuance of licenses.

The tax collector shall prepare and issue a license to every person who pays the business license tax required by this chapter. When the required license tax has been paid, the tax collector shall deliver the original license to the licensee named therein and shall retain a copy thereof on file with the city. Each license shall designate the amount of the tax paid, the date of expiration, the name of the licensee, the type of business licensed, and, if a fixed place of business, the address at which such business is to be conducted.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.170 Errors in issuance of licenses.

No error or mistake on the part of any person issuing a license, including an error in the determination of the amount of any license tax due, shall preclude the collection by or for the city of the amount actually due from anyone commencing or conducting any business which is subject to payment of such license tax.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.180 Licenses for each business activity.

A. Except as otherwise provided in this chapter, a separate license shall be obtained and a separate tax paid for each type of business activity and for each branch establishment. Each license shall authorize the licensee named therein to commence and conduct only the business activity described in such license and only at the location designated therein.

B. Any person who operates a separately owned department or concession in a department store or similar retail establishment shall pay a license tax in accordance with the provisions of this chapter for the department or concession so operated.

C. Two or more persons shall not jointly apply for or be issued one business license to cover two or more businesses which are separately owned.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.190 Enforcement.

A. Inspection. The tax collector may inspect all places of business in the city to ascertain whether there has been compliance with the provisions of this chapter. The tax collector, all police officers of the city, and any other duly authorized agent or authorized employee of the city, shall be authorized to examine the books and records of all persons licensed to do business for the purpose of ascertaining the amount of license taxes required to be paid. Such persons shall also be authorized to enter, at any reasonable time, any place of business required to be licensed by this chapter, to demand the production of the business license, books, records and other documents, and to enforce the provisions of this chapter and of Chapter 2.10.

B. Licensee’s Duty to Maintain Records. Every person subject to the provisions of this chapter shall maintain complete records concerning all personnel employed in the business conducted by such person, including payroll records, personnel records, withholding tax records and all records and reports as to labor, wages or personnel made to, or required by, all governmental regulatory agencies. Such records shall be maintained for a period of not less than three years. No person required to keep such records shall refuse to allow any authorized representative of the tax collector to inspect said records at reasonable times and places, and in no event later than seventy-two hours after an inspection request has been made.

C. Enforcement Personnel. For the purpose of enforcement of this chapter, the tax collector may, with the prior authorization of the city council, engage accountants, auditors, investigators and consultants to examine the books and records of any person doing business in the city. Such books and records may include, without limitation, income tax returns as filed with the franchise tax board, and sales or transactions and use tax records maintained by the State Board of Equalization. Any failure or refusal on the part of any person licensed or required to be licensed under this chapter to produce documents, or to permit their examination by duly authorized personnel, shall constitute a violation of this code.

D. Enforcement Remedies. The conviction of any person for violating any provisions of this chapter shall not relieve such person from paying the license tax for a business, nor shall the payment of any license tax preclude a criminal prosecution for the violation of any provisions of this chapter. All remedies prescribed hereunder shall be cumulative, and the use of one or more remedies shall not bar the use of any other remedy for the purpose of enforcing this chapter.

E. Sealing of Illegal Coin-Operated Devices. In addition to such other remedies as may be available to the city, the tax collector, or any other duly designated employee of the city, shall be authorized to seal any coin-operated machine or device which is determined to be illegally placed or maintained within the city, or which does not have conspicuously displayed thereon any tag or other identification required by this chapter evidencing that the applicable business license tax has been paid. The sealing of any machine or device shall not preclude the city from confiscating such machine or device. When any such machine or device has been sealed by the city, it shall be unlawful for any person to break, cut, remove, mutilate or destroy such seal without the prior written consent of the tax collector.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.200 Evidence of doing business.

The use of signs, circulars, cards, telephone books, directories, newspapers or other advertising media by which a person represents that such person is doing business in the city, may be used as evidence that the person is doing business in the city.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.210 Refunds.

No license tax shall be refunded unless it is determined by the tax collector that the tax has been paid in error, computed incorrectly, overpaid or collected illegally, or the business has ceased operations for reasons beyond its control, or in any other instance where the tax collector, with the concurrence of the city manager, determines that a refund of the prorated amount of an unexpired business license is appropriate and proper. No refund shall be made unless a request is received by the tax collector within one year after the payment of the license tax. With respect to the determination of whether a refund is appropriate, the decision of the tax collector is final. Refunds will only be made to the person or company that paid for the license. Refunds will apply to license fees only; late payments or penalties paid will not be refunded.

(Ord. 2341 § 1, 11-14-17: Ord. 1949 § 1 (part), 5-25-93)

2.08.220 Permit prerequisite.

The tax collector shall not issue any license for any business, profession, trade, commercial enterprise or occupation for which a business permit is required pursuant to Chapter 2.10 of this code until such permit is obtained. The tax collector shall not issue or renew a license if any such permit has been revoked or has expired and has not been reinstated or renewed. Any license issued under this chapter for any business, profession, trade, commercial enterprise or occupation for which a business permit is required by Chapter 2.10, or for which a conditional use permit is required by Title 11 of this code, shall be void upon the revocation or expiration of any such business permit or conditional use permit.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.230 Application.

Every person desiring to conduct, manage or carry on any business, profession, trade, commercial enterprise or occupation in the city shall file with the tax collector a form provided by the city, sworn to or made under penalty of perjury, setting forth the following information, as may be applicable:

A. The applicant’s name, home address and telephone number, social security number and California driver’s license number. If the applicant is a corporation, the name shall be exactly as set forth in its articles of incorporation. Additionally, a corporate applicant shall set forth the names and addresses of all directors, any stockholder owning ten percent or more of the shares of the corporation, and the name and address of an officer who is duly authorized to accept service of legal process. If the applicant is a partnership, the names and addresses of each general partner shall be stated. If one or more of the partners is a corporation, the provisions of this subsection pertaining to a corporate applicant shall apply to that partner;

B. The exact nature or type of business for which a license is requested, including each separate and distinct type of business conducted or to be conducted under the same ownership on the premises;

C. The address of the intended business. No post office box, mailbox or message service shall be set forth as the true address of the business for purposes of this chapter. A post office box, mailbox or message service may be used as the mailing address of the business for business purposes only. If the business is not to be carried on at any permanent location, the application shall include the residence addresses of the owners of the business;

D. The estimated average number of employees the applicant expects to employ during the period for which the license is to be issued;

E. Every applicant which is an employer, and which applies for any business license issued pursuant to the authority conferred by Section 37101 of the Government Code, or Section 7284 of the Revenue and Taxation Code, shall complete and sign a declaration, in a form provided by the tax collector, which declaration complies with the requirements of Section 3700 of the Labor Code;

F. Any additional information which the tax collector deems necessary and appropriate.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.240 Application for renewal of business license.

A. In all cases, an applicant for the renewal of a license shall submit to the tax collector a statement sworn to or made under penalty of perjury setting forth such information concerning the applicant’s business during the preceding year as may be required to enable the tax collector to ascertain the amount of license tax to be paid by the taxpayer pursuant to the provisions of this chapter.

B. Every applicant which is an employer, and which applies for the renewal of any business license issued pursuant to the authority conferred by Section 37101 of the Government Code, or Section 7284 of the Revenue and Taxation Code, shall complete and sign a declaration, in a form provided by the tax collector, which declaration complies with the requirements of Section 3700 of the Labor Code.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.250 Exemptions.

A. General Exemptions. Unless otherwise specified herein, no license tax shall be required of:

1. The Federal Government or the state of California, or any political subdivisions, agencies or instrumentalities thereof;

2. Any person engaging in any business exempt from the payment of a business license tax by virtue of the Constitution or laws of the state of California, or the Constitution or laws of the United States;

3. Any organization, whether or not incorporated, that is organized and operated exclusively for religious, charitable, fraternal, educational, cultural, civic or other exempt purposes or functions as specified in Article I of Chapter 4 of the California Revenue and Taxation Code (§§ 23701 et seq.), and which has been determined by the franchise tax board to be exempt from taxation, or which has established its exemption under Section 501(c)(3) of the Internal Revenue Code; provided, however, that any such organization shall be required to pay the applicable license tax for any unrelated trade or business of such organization, the income of which is subject to taxation under Section 23731 of the California Revenue and Taxation Code or Section 512 of the Internal Revenue Code.

B. Limited Exemptions. The tax collector, upon application being made therefor, and upon the applicant presenting evidence of its eligibility therefor, shall issue a business license endorsed as partially or wholly exempt from taxes as follows:

1. A minor under the age of eighteen years engaged in activities requiring a license under this chapter where such minor engages in those activities for no more than twenty hours in any week;

2. Any veteran or widow of any veteran of any United States war or conflict who is a resident of the city shall be entitled to a credit of twenty-five dollars against the business license tax required by this chapter in any year in which the net income of such person from the business is (or is established to be in the case of an initial license) less than ten thousand dollars per year;

3. Notwithstanding the provisions of subsection 2 hereof:

a. Every honorably discharged or honorably relieved soldier, sailor or marine of the United States who served in any Indian war, the Spanish-American War, any Philippine insurrection, the Chinese Relief Expedition, the World War of 1914 and years following, or World War II, who is physically unable to obtain a livelihood by manual labor, and who is a voter of this state, may distribute circulars, and hawk, peddle and vend any goods, wares or merchandise owned by him, except spirituous malt, vinous or other intoxicating liquor, without payment of any license tax or fee whatsoever; provided, however, that he is registered with the city, and the tax collector shall issue to such soldier, sailor or marine, without cost, a license therefor,

b. Every person who was honorably discharged or honorably relieved from the military, naval or air service of the United States who served on or after June 27, 1950, and prior to February 1, 1955, or on or after August 5, 1964, and prior to a future date to be established by the Legislature, who is physically unable to obtain a livelihood by manual labor, and who is a resident of this state, may distribute circulars, and hawk, peddle and vend any goods, wares or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor, without payment of any license tax or fee whatsoever, and the tax collector shall issue to such person, upon registering with the city, a license therefor without cost.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.255 Public information.

Except for the information specified in Section 2.08.260, a business license application and the contents thereof shall be subject to public inspection and copying pursuant to the provisions of the California Public Records Act.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.260 Confidential information.

Information regarding gross receipts furnished or obtained pursuant to the provisions of this chapter shall be confidential, shall not be subject to public inspection, and shall be maintained in such a manner that it is not disclosed to anyone who is not charged with the administration of this chapter. Nothing in this section shall be construed to prevent:

A. The disclosure to, or examination of such information by, a city official, employee or agent responsible for the collection of license taxes, for the sole purpose of administering or enforcing the provisions of this chapter;

B. The disclosure of such information to a grand jury or court of law, upon subpoena;

C. The disclosure of such information to a court of law in a proceeding brought to determine the existence or amount of any license tax liability of the particular person or licensee hereunder;

D. The disclosure, after the filing by or on behalf of the licensee of a written request to that effect, to the licensee, or to the licensee’s successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information regarding the computation of any paid or unpaid license tax, or amounts of license tax and any penalties required to be collected; provided, however, that the city attorney shall approve each such disclosure and the tax collector may refuse to make any disclosure referred to in this paragraph when, in the opinion of the tax collector, the public interest in disclosure is outweighed by the public interest served by not making the information public;

E. The disclosure to the city council, by way of public meeting or otherwise, of such information as may be necessary to enable the city council to be fully advised as to the facts when a licensee files a claim for refund of license taxes, or submits an offer of compromise with regard to a claim asserted by the city for license taxes, or when acting upon any other matter in the course of city business.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.270 Failure to file statement or corrected statement.

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

B. If, as a consequence of any audit of a business licensee conducted by or on behalf of the tax collector, it is determined that the gross receipts reported to the city by such business licensee have been under-reported by an amount equal to or in excess of ten percent of the true gross receipts, then, in addition to the penalties authorized by subsection B of Section 2.08.070, the tax collector shall add the costs incurred by the city in conducting such audit.

C. If a determination is made by the tax collector pursuant to subsections A or B of this section, the tax collector shall give written notice of the amount of license tax, penalties and audit costs so assessed by serving it on the licensee personally or by depositing such notice in the United States mail, postage prepaid, addressed to the person so assessed at such person’s last known address. Such person may, within ten days after the mailing or serving of such notice, make application in writing to the tax collector for a hearing on the amount of the license tax, penalties and audit costs so assessed. If such application is made, the matter shall be set for hearing by the tax collector within thirty days. The procedures for appeal, as set forth in Sections 2.08.340 through 2.08.360, shall be applicable.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.280 Modification, suspension or revocation.

Any business license issued by the city may be conditioned, modified, suspended or revoked for cause by the city council pursuant to Sections 2.08.290 through 2.08.330.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.290 Revocation—Initiation of hearing.

A hearing to determine whether an existing license should be conditioned, modified, suspended or revoked shall be initiated by a written statement of charges. Such statement may be initiated by any commission, department, agency or employee required to review or inspect the licensed business activity for compliance with city regulations. Such statement shall be submitted to the tax collector.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.300 Revocation—Notice to licensee.

If the tax collector determines that a hearing by the city council is warranted, written notice of the hearing shall be given to the licensee not less than ten days prior thereto.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.310 Procedures for revocation hearing by the city council.

A. Right to Witnesses. The licensee or legal representative of the licensee shall have the right to call witnesses to testify on behalf of the licensee.

B. Rules of Evidence. Hearings need not be conducted according to technical rules of evidence. Oral evidence shall be taken only on oath or affirmation.

C. Decision. The city council shall issue its decision in writing. The decision shall contain a determination of the issues presented.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.320 Grounds for revocation of business license.

After hearing, the city council may condition, modify, suspend or revoke a business license for any business activity required to be licensed under this chapter if the city council finds that one or more of the following conditions exist:

A. Business Activities Involving First Amendment Activities.

1. That the building, structure, premises or equipment used in the conduct of the business does not comply with any health, zoning, fire or building and safety laws of the state or ordinances of the city;

2. That the licensee, or any employee, agent or manager of the licensee, has violated any federal or state statute or any ordinance or regulation of the city in the course of exercising any rights under the business license which is being considered for revocation;

3. That the licensee, or any employee, agent or manager of the licensee, has knowingly made any false, misleading or fraudulent statement of material fact in the application for the license, or in any report or statement required to be filed with the tax collector or the city council;

4. That the licensee, or any employee, agent or manager of the licensee, has published, uttered or disseminated any false, deceptive or misleading statements or advertisements in connection with the licensed business;

5. That the licensee has failed or refused to notify the tax collector of any change in facts as required by this chapter within five days after such change;

6. That the licensee, or any employee, agent or manager of the licensee, has violated any conditions or restrictions of the business license;

7. That the licensee, or any employee, agent or manager of the licensee, has allowed, or failed to prevent, the use of the business or the business premises as a base for unlawful or criminal activity, including, but not limited to, solicitation, prostitution or drug trafficking.

B. Business Activities Not Involving First Amendment Activities.

2. That the licensee, or any employee, agent or manager of the licensee, has violated any federal or state statute or any ordinance of the city in the course of exercising any rights under the business license which is being considered for revocation;

3. That the licensee, or any employee, agent or manager of the licensee, has been found to have committed a crime of moral turpitude which bears a substantial relationship to the conduct of the business activity for which the business license is being considered for revocation;

4. That the licensee, or any employee, agent or manager of the licensee, has knowingly made any false, misleading or fraudulent statement of material fact in the application for the business license, or in any report or statement required to be filed with the tax collector or the city council;

5. That the licensee, or any employee, agent or manager of the licensee, has published, uttered or disseminated any false, deceptive or misleading statements or advertisements in connection with the operation of the licensed business;

6. That the licensee has failed or refused to notify the tax collector of any change in facts as required by this chapter within five days after such change;

7. That the licensee, or any employee, agent or manager of the licensee, has violated any conditions or restrictions of the business license;

8. That the licensee has been held liable for, or has been convicted of, any offense involving the maintenance of a nuisance resulting from any act performed in exercising any rights under the business license which is being considered for revocation;

9. That the licensee, or any employee, agent or manager of the licensee, has violated any rule or regulation adopted by the city council or any other governmental agency relating to the licensee’s business;

10. That the licensee has conducted the licensed business in a manner contrary to the public health, safety and welfare.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.330 Effect of revocation or suspension.

A. No refunds of any business license fees shall be made to any licensee upon revocation of a business license.

B. Following revocation of any business license for cause under this chapter, no business license to conduct the same business activity shall be issued to the same person for a period of one year.

C. Whenever a business license is suspended or revoked, the tax collector shall take into possession the business license for the subject business activity. The licensee shall surrender the business license and license stickers, or similar evidence of a license, to the tax collector.

D. Upon revocation or suspension of a business license, the licensee shall immediately cease operation of the business activity. Except as otherwise provided, if the license is suspended, the licensee may resume operation upon expiration of the suspension period.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.340 Appeal to city council from tax collector’s decision.

A. Filing. Unless an alternative procedure is specified in this chapter regarding an appeal from a decision of the tax collector, any person aggrieved by any decision of the tax collector may file with the tax collector a notice of appeal to the city council within ten days of the date of mailing of the decision. The notice shall be signed by the appellant or the legal representative of the appellant and shall be sufficient if it states that the appellant appeals from a specified decision or a particular part thereof. The notice of appeal may state briefly the grounds upon which the appeal is based but shall contain no argument, evidence or legal points and authorities.

B. Effect of Notice of Appeal. If a timely appeal is filed, the effect of the tax collector’s decision shall be stayed pending the city council’s resolution of the matter unless the tax collector specifically finds that the public health and safety will be endangered by any such stay.

C. Deposit of Estimated Costs. With every notice of appeal filed pursuant to this section, the appellant shall deposit with the tax collector an amount which the tax collector estimates will cover the cost of production of a transcript of documentation on the matter, including the record of any hearing conducted by the tax collector, which resulted in the decision on which the appeal is taken.

D. Accounting of Funds. The tax collector shall keep a permanent and accurate account of all deposits received on appeal. If the actual cost of the transcript exceeds the amount deposited by the appellant, the appellant shall pay the deficiency; if it is less, the tax collector shall refund the difference to the appellant.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.350 Appeals—Notice of hearing.

Upon receipt of a timely notice of appeal and the deposit of estimated costs, the tax collector shall notify the city clerk of the request for appeal. The tax collector shall give not less than ten days prior written notice to the appellant, and to the licensee if other than the appellant, of the date, time and place of the hearing.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.360 Appeals—Hearing procedure.

A. Transmission of Documentation. Upon the filing of a notice of appeal and the deposit of estimated costs, the tax collector shall transmit to the city council the transcript of the documentation on the matter. Copies of the transcript shall also be delivered to the appellant and to the licensee, if other than the appellant.

B. Conduct of Hearing. Upon receipt of the transcript required by subsection A of this section, the city council shall conduct the appeal. To the extent reasonably feasible, the hearing on the appeal shall be conducted not later than thirty days after the filing of a notice of appeal. The city council may, at its discretion, receive new evidence or testimony which is not part of the record upon a showing that it could not, in the exercise of due diligence, have been presented at the time of the tax collector’s decision. The city council may hear and consider additional argument and points and authorities of law prior to rendering any decision on the appeal.

C. City Council Action. Upon reviewing the evidence and considering the parties’ arguments and any points and authorities of law submitted, the city council may either:

1. Render a decision upholding, reversing, or modifying in any respect the decision of the tax collector; or

2. Remand the matter to the tax collector with directions.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.370 Business license taxes—General.

A. Every person conducting any business, profession, trade, commercial enterprise or occupation in the city shall pay the license taxes applicable to such business, profession, trade, commercial enterprise or occupation which are established from time to time by resolution of the city council, unless otherwise exempted therefrom by this chapter, the Constitution or laws of the state of California, or by the Constitution or laws of the United States.

B. If a business, profession, trade, commercial enterprise or occupation is subject to the payment of a gross receipts tax, the following requirements shall be applicable:

1. The tax on gross receipts for an established business, profession, trade, commercial enterprise or occupation shall be based upon the gross receipts for the preceding calendar year.

2. The tax on gross receipts for a new business, profession, trade, commercial enterprise or occupation shall be based upon the applicant’s estimate of gross receipts to be received during the first three months of business activity, and thereafter extrapolated for the annual license period, or portions thereof remaining.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.380 Payment of business license taxes—Calendar year.

Business license taxes, as established by resolution of the city council, shall be due and payable to the tax collector on the first day of January of each calendar year by every person engaged in a business, profession, trade, commercial enterprise or occupation involving the following:

A. Advertising services:

1. Outdoor advertising (billboards);

2. Benches;

3. Arc lights;

4. Distributors of commercial handbills (All licensees shall be provided with a copy of Chapter 7.02 of the code, and shall acknowledge, in writing, that they have read and understand the provisions thereof.)

B. Commercial vehicles:

1. Catering;

2. Gasoline or oil;

3. Meat (retail delivery);

4. Gardener;

5. Ice cream trucks;

6. All other categories of commercial vehicles (excluding vehicles for hire).

(Every vehicle used for conducting a business, as specified in this subsection, shall, upon payment of the required license tax, be issued a tag by the tax collector. Such tag shall be affixed to the vehicle in a conspicuous location, as specified by the tax collector.)

(Ord. 1949 § 1 (part), 5-25-93)

2.08.390 Payment of business license taxes and gross receipts tax—Calendar year.

Business license taxes and a gross receipts tax, as established by resolution of the city council, shall be due and payable to the tax collector on the first day of January of each calendar year by every person engaged in a business, profession, trade, commercial enterprise or occupation involving the following:

A. Contractors;

B. Private patrol service;

C. Vending machine business, where such business is limited exclusively to renting, leasing or operating coin-operated vending machines in the city (excluding amusement machines);

D. Vending machines, coin-operated, which are owned by and operated within an established place of business within the city (excluding amusement machines);

E. Amusement machines (juke boxes, video game machines, pool tables, shuffleboards, pinball machines and similar coin-operated amusement devices);

F. Vehicles for hire, including taxicab and limousine services.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.400 Payment of business license taxes—Fiscal year.

Business license taxes, as established by resolution of the city council, shall be due and payable to the tax collector on the first day of July of each year, said date being the commencement of the city’s fiscal year, by every person engaged in a business, profession, trade, commercial enterprise or occupation involving the following:

A. Rental of real property;

B. Financial institutions (not otherwise exempt);

C. Hotel/rooming house;

D. Motel-residential and transient.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.410 Payment of business license taxes and gross receipts tax—Fiscal year.

Business license taxes and a gross receipts tax, as established by resolution of the city council, shall be due and payable to the tax collector on the first day of July of each year, said date being the commencement of the city’s fiscal year, by every person engaged in a business, profession, trade, commercial enterprise or occupation involving the following:

A. Auction house;

B. Billiard parlor/pool hall;

C. Close-out, bankruptcy or fire sale;

D. Dancehall (public);

E. Dancehall (private);

F. Entertainment;

G. Indoor merchandising center vendor;

H. Insurance brokers (excluding insurance companies and agents of insurance companies);

I. Laundry equipment business, (limited exclusively to renting, leasing or operating laundry equipment in the city, whether or not coin-operated);

J. Listing/leads service;

K. Massage establishment; bath parlor; and fortunetelling;

L. Mailing address only;

M. Manufacturing business;

N. Mobile home park;

O. Model studio;

P. Pawnbroker and secondhand dealer;

Q. Peddler and solicitor (commercial);

R. Professional services (not elsewhere classified);

S. Real estate brokers (excluding real estate brokers working solely as salespersons in the employ of another real estate broker);

T. Restaurant/cafe (serving alcoholic beverages);

U. Restaurant/cafe (not serving alcoholic beverages);

V. Retail business (not elsewhere classified);

W. Service business (not elsewhere classified);

X. Wholesale sales;

Y. Utility company business;

Z. Mobile and stationary vending as described in Section 2.10.970;

AA. Other business (not elsewhere classified).

(Ord. 2357 §§ 5, 6, 12-11-18; Ord. 1949 § 1 (part), 5-25-93)

2.08.420 Payment of business license taxes—Daily, monthly or for limited period.

Business license taxes, as established by resolution of the city council, shall be due and payable to the tax collector, prior to the conduct of any business activity, on a daily, monthly or periodic basis as specified herein:

A. Daily:

1. Portable advertising equipment:

a. Arc light,

b. Sign or loudspeaker mounted on vehicle;

2. Auctioneer of personal property;

3. Carnival or concession;

4. Dance (public);

5. Dance (private; special; or youth);

6. Peddler and solicitor (commercial).

B. Monthly:

1. Christmas tree sales (retail).

C. Limited period:

1. Fireworks (retail sales from twelve noon on June 28th through twelve midnight on July 4th).

(Ord. 1949 § 1 (part), 5-25-93)

2.08.430 Violations.

A. Generally. Unless otherwise provided herein, any party violating any of the provisions of this chapter shall be guilty of a misdemeanor or an infraction and punishable as provided for in this code. Where the conduct constituting the violation is of a continuing nature, each day that the conduct continues shall be deemed a separate and distinct violation. In addition to any fine imposed, the party in violation shall be responsible for a penalty fee incurred and payment in full of the business license fee and all penalties imposed.

B. False Statements. Any person who knowingly makes any false statement in any application for a business license or in any report or document required under this chapter is guilty of a misdemeanor and shall be punishable as provided for in this code.

(Ord. 2011 § 1 Exh. A (part), 8-27-96: Ord. 1962 § 2, 10-26-93; Ord. 1949 § 1 (part), 5-25-93)

2.08.440 Severability.

If any section, subsection, sentence, clause, phrase or portion of this chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this chapter. The city council declares that it would have adopted this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, phrases, or portions be declared invalid or unconstitutional.

(Ord. 1949 § 1 (part), 5-25-93)

2.08.450 License fees and permit fees for material recovery facilities.

A. Business Permit Required. Prior to the issuance of a business license, the operator of a material recovery facility shall apply for and obtain a business permit. The fee for such a business permit shall be as set forth in the South Gate fee resolution.

The business permit issued to the operator of a material recovery facility shall require compliance with the conditions and requirements set forth in Section 2.10.725(B) of this code.

B. Business License Tax (Calendar Year) and Gross Receipts Tax/Permit Fee (Quarterly). The operator of a material recovery facility shall pay to the license collector a business license tax in the sum of seventy dollars on or before the first day of January of each calendar year, plus a gross receipts tax in the sum of ten percent of the gross receipts collected from the operation of the scale weighing the solid waste for disposal at the material recovery facility. Notwithstanding the above, the operator of a material recovery facility may pay the city a permit fee in an amount and under the terms and conditions set forth in a written agreement between the operator and the city, in lieu of paying the gross receipts tax. The gross receipts tax or permit fee established in this subsection, or by written agreement, as the case may be, shall be payable quarterly during each business license year. (Ord. 2193 § 1, 5-24-05)

(Ord. 2193 § 1, 5-24-05: Ord. 1980 § 1, 1-24-95)

2.08.460 Not applicable to First Amendment activities.

No license or permit as specified in this title is required for any vendor engaged in traditional expressive speech, performing or petitioning activities.

(Ord. 2357 § 2, 12-11-18)