CHAPTER 1
LICENSING BUSINESS FOR REVENUE
ARTICLE 5. EXCLUSIONS AND EXEMPTIONS
SECTION:
§2162: Free Licenses For Exempt Businesses; Duty To Obtain; Violations
§2160 EXCLUSIONS
The following businesses specified in this Section shall, to the extent mentioned herein, be excluded from the operation of this Chapter, and the terms hereof shall not be deemed or construed to require the payment of a license tax for such businesses.
A. Banks, to the extent that the City may not levy a license tax upon them under the provisions of article XIII, section 27 of the Constitution of the State of California.
B. Insurers, including insurance companies or associations and reciprocal or interinsurance exchanges together with their corporate or other attorneys in fact considered as a single unit, and insurance agents on that portion of their income derived from insurance premiums paid by their customers.
C. The business of a commercial traveler not having a fixed place of business in the City whose business is limited to goods, wares and merchandise sold or dealt in at wholesale in this State.
D. Express corporations, freight forwarders, motor transportation brokers, and highway freight haulers under the jurisdiction of the Public Utilities Commission as provided in Public Utilities Code section 4301 et seq.
E. Airlines and all-cargo air carriers, except as to revenues derived exclusively from intrastate operations.
F. Any person whom the City is not authorized to license under the terms of any law or constitution of the United States or of the State of California.
The Director of Finance may require the filing of a verified statement from any person claiming to be excluded under the provisions of this Section, which statement shall set forth all facts upon which the claim for exclusion is made. The Director of Finance may allow or disallow the claim for exclusion, and if disallowed the claimant shall forthwith make application for a business license, and shall obtain the necessary license prior to engaging in business.
The provisions of §2136 and §2137 regarding administrative hearings and appeal procedure for licensees and applicants is hereby made applicable to claimants for exclusions. (Ord. 540, §2, adopted 1961; amd. by Ord. 603, §7, adopted 1970; Ord. 933, §1, adopted 1993)
§2161 EXEMPTIONS
The provisions of this Chapter shall not be deemed or construed to require the payment of a license tax to conduct, manage or carry on the following businesses or occupations:
A. Charitable Institutions: From any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes, or from which profit is not derived either directly or indirectly by any person; nor shall any license be required for the conduction of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects, whenever the receipts of any such program are appropriated to any church, school, religious or benevolent purpose within the City; nor shall any license be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, State, County or Municipal organization or association whenever the receipts of any such program are to be appropriated for the purposes and objects for which such association or organization was formed.
B. Interstate Commerce: In any case where the payment of a license tax would cast an undue burden upon the right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States respecting interstate commerce. In any case where a license tax is believed by a licensee or applicant to place an undue burden upon such commerce, he may apply to the Director of Finance for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application must be made within six (6) months after payment of the prescribed license tax. The applicant shall, by affidavit and supporting testimony, show his method of business and such other information as the Director of Finance shall require in order to determine the extent of the burden made upon interstate commerce by such tax. If the Director of Finance finds that the prescribed license tax imposes an undue burden upon interstate commerce, then he is hereby authorized and directed to adjust the license tax so as to assure that the license tax assessed shall be uniform with that assessed on businesses of a like nature so long as such amount does not exceed the amount prescribed by this Chapter. If the license tax has already been paid the Director of Finance shall order a refund of the amount paid in excess of the adjusted amount.
C. Farmers: The actual grower and producer of ranch, farm, orchard, vineyard or poultry produce or products for the sale or delivery of the such produce or products actually grown or produced by him.
D. Blind: Any business conducted, carried on or managed solely by a totally blind person, the profits of which business are intended for and go entirely to such blind person.
E. Veterans: The distribution of circulars and the hawking, peddling and vending of any goods, wares or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor, insofar as the same may be legally permissible, by an honorably discharged or honorably relieved soldier, sailor or marine of the United States or Confederate States who served in the Civil War, any Indian war, the Spanish-American War, any Philippine insurrection, the Chinese Relief Expedition or the World War of 1914 and years following, who is a voter of this State, and who is physically unable to obtain a livelihood by manual labor.
F. Fairs: The construction, management, or carrying on of any business upon and within a State sponsored fairgrounds during the time of holding of any official fair in and upon said fairgrounds.
The Director of Finance may allow or disallow the claim for exemption, and if disallowed, the claimant shall forthwith make application for a business license, and shall obtain the necessary license prior to engaging in business. The provisions of §§2136 and 2137 regarding administrative hearings and appeal procedure for licensees and applicants is hereby made applicable to claimants for exemptions. (Ord. 540, §2, adopted 1961, amd. by Ord. 603, §8, adopted 1970)
§2162 FREE LICENSES FOR EXEMPT BUSINESSES; DUTY TO OBTAIN; VIOLATIONS
Whenever the Director of Finance shall have determined that any person is exempt from the payment of the license taxes herein prescribed because of the operation of an exempt business, he shall, upon application for the same, issue a business license free of any charge to such person, which said license shall be the same form and shall continue for the same duration as if the business required payment of a license tax, except that the words "FREE LICENSE" shall be clearly affixed thereto together with a statement of the reason therefor. It shall be the duty of every person claiming an exemption from payment of the license taxes prescribed by this Chapter, to make application for and obtain the appropriate license prior to commencing, engaging in or continuing business as provided in this Chapter. Free licenses shall be subject to the same rules regarding nontransferability, posting and keeping as other licenses. Violation of this Section shall be punishable as provided in §2175 of this Code. (Ord. 540, §2, adopted 1961)