Chapter 5.16
EXEMPTIONS AND EXCLUSIONS
Sections:
5.16.010 Minimum gross receipts.
5.16.020 Minors, sixteen years and younger.
5.16.030 Charitable organizations.
5.16.040 Charitable entertainments.
5.16.050 Nonprofit organizations.
5.16.060 Receipts for private gain prohibited.
5.16.120 Claims for exemption.
5.16.130 Revocation of exemption.
For statutory provisions which provide exemptions to municipal licensing of businesses, see California Business and Professions Code §§16000 et seq.
5.16.010 Minimum gross receipts.
A. Any person transacting business within the city and having a fixed place of business in the city or operating out of his home in the city having gross receipts for the license tax year of less than one thousand dollars shall not be required to pay a license tax; provided, however, that such person shall be required to comply with all the provisions of this title pertaining to transacting business within the city and may be required by the tax collector to file a statement certifying to the fact that his gross receipts from such business transacted within the city were less than one thousand dollars within such license year.
B. This exemption shall apply to persons whose place of business, whether it is a fixed place of business or the individual’s home, is maintained for said business purposes for at least three months out of each license year. (Ord. 923 §5.1, 1977).
5.16.020 Minors, sixteen years and younger.
Every natural person of the age of sixteen years and under whose annual gross receipts from any and all businesses are one thousand dollars or less shall be exempt from payment of any license tax under the provisions of this title. (Ord. 923 §5.2, 1977).
5.16.030 Charitable organizations.
The following organizations shall be exempt from the payment of a business license tax under the provisions of this title:
Any charitable institution, organization or association organized for charitable purposes and conducted for charitable purposes only. (Ord. 923 §5.3, 1977).
5.16.040 Charitable entertainments.
Any person conducting or staging any concert, exhibition, lecture, dance, amusement or entertainment where the receipts, if any, derived therefrom are to be used solely for charitable or benevolent purposes and not for private gain shall be exempt from the payment of any business license tax under the provisions of this title. (Ord. 923 §5.4, 1977).
5.16.050 Nonprofit organizations.
The following organizations or associations shall be exempt from the payment of any business license tax imposed by the provisions of this title upon any of the following businesses, entertainments or activities:
A. Any religious, fraternal, student cooperative, educational, military, state, county or municipal organization or association for the conducting of any business which business is open to the members thereof only and not open to the public;
B. Any religious, fraternal, educational, military, state, county or municipal organization or association for the conducting or staging of any amusement or entertainment, concert, exhibition, lecture, dance or athletic event, when the receipts derived are to be used wholly for the benefit of such organization and not for private gain of any person;
C. Any student organization, association or cooperative sanctioned by the educational institution from which the membership is drawn, for the conducting or staging of any amusement or entertainment, concert, exhibition, lecture, dance or athletic event when the receipts derived are to be used wholly for the benefit of such organization and not for private gain of any person;
D. Any organization or association for the conducting or staging of any amusement or entertainment, concert, exhibition, lecture, dance or athletic event, when the use of the premises upon which activity is conducted or staged is a municipal use. Municipal use is a use or performance which benefits the city as a whole or an organization or activity which benefits the city as a whole, and which is sponsored by an organization deriving all or part of its income from the city, or is for the benefit of an organization or activity supported in whole or part by the city. (Ord. 923 §5.5, 1977).
5.16.060 Receipts for private gain prohibited.
For the purposes of Sections 5.16.040 and 5.16.050, the payment of necessary expenses incurred in the conducting or staging of any amusement or entertainment, concert, exhibition, lecture, dance or athletic event from the receipts derived therefrom shall not be deemed to be the use of said receipts for private gain of any Person. (Ord. 923 §5.6, 1977).
5.16.070 Teachers.
The provisions of this title shall not require the payment of license tax for the teaching of musical, artistic or educational subjects when the following conditions exist:
A. The teaching is done at the residence of the teacher or at the residence of the pupil, or pursuant to a contract for services with the city of Vacaville recreation department;
B. The teacher employees no assistant, does not display an advertising sign at the residence, and does not make a general practice of selling merchandise in connection with the teaching. (Ord. 1280 §1, 1986; Ord. 923 §5.7, 1977).
5.16.080 Employees.
Any natural person engaged in any of the businesses, professions, or occupations mentioned in this chapter, solely as an employee of any other person conducting, managing or carrying on any such business in the city and not owner, partner, associate or principal in such business shall be exempt from payment of any business license tax on said business, profession or occupation. (Ord. 923 §5.8, 1977).
5.16.090 Interstate commerce.
Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any business license provided for in this title upon the ground that such license casts a burden upon his right to engage in commerce with foreign nations or among the several states or conflicts with the regulations of the United States Congress respecting interstate commerce shall file a verified statement with the tax collector disclosing the interstate or other character of his business entitling such exemption. Such statement shall state the name and location of the company or firm for which the orders are to be solicited or secured, the name of the nearest local or state manager, if any, and his address, the kind of goods, wares, or merchandise to be delivered, the place from which the same are to be shipped or forwarded, the method of solicitation or taking orders, the method of delivery, the name and location of the residence of the applicant, and any other fact necessary to establish such claim for exemption. (Ord. 923 §5.9, 1977).
5.16.100 Disabled veterans.
Any person who has received an honorable discharge or release from active duty in one of the United States armed services who is physically unable to obtain a livelihood by manual labor and who is a voter of this state shall be entitled to a license under the provisions of this title, without payment of tax therefor, to distribute circulars or to hawk, peddle and vend any goods, wares, or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor, provided, however, that such person first exhibit to the tax collector, upon applying for such license, satisfactory evidence of his eligibility therefor. (Ord. 923 §5.10, 1977).
5.16.110 Blind persons.
Any blind person or any indigent person who by reason of the infirmities of age, loss of limb or other disabling cause is unable to obtain livelihood by other means than street vending or entertaining or house-to-house selling shall be entitled to a tax-exempt license. For all persons who are not bona fide residents of the city, this exemption shall not cover a period which exceeds two days in any one month. (Ord. 923 §5.11, 1977).
5.16.120 Claims for exemption.
Any person desiring to claim exemption from the payment of a license tax shall make application therefor upon forms prescribed by the tax collector and shall furnish such information and make such affidavits as may be required. Upon the determination being made that the applicant is entitled to exemption from the payment of license taxes for any reason set forth in this title, the tax collector shall issue a free license to such person which shall show upon its face that the license tax is exempt. This section shall not apply to natural persons engaged in any business solely as an employee of another person and not as an owner, partner, associate or principal in such business. (Ord. 923 §5.12, 1977).
5.16.130 Revocation of exemption.
The tax collector may revoke any free license granted pursuant to the provisions of this title upon information that the licensee is not entitled to an exemption from payment of a license on the business for which such license is granted. Notice of revocation shall be given in the same manner and within the same time as is provided for notices of assessment in Section 5.20.120, and the licensee shall have the same right of hearing and of appeal as is provided in Sections 5.20.120 and 5.20.130. (Ord. 923 §5.13, 1977).
5.16.140 Exclusions.
A. Except as may be otherwise specifically provided in this title, the terms of this chapter shall not be deemed or construed to apply to any of the following businesses engaged in by any of the following persons:
1. Any person engaged in the business of operating cigarette vending machines, jukeboxes or other mechanical amusement devices shall not be governed by any section of Chapter 15.08 but shall comply with all sections of Chapter 5.36 and any amendments thereto;
2. Any person engaged in the business of operating a taxicab shall not be governed by any section of Chapter 5.08 but shall comply with all sections of Chapter 5.32 and any amendments thereto;
3. Any gas or electric public utility which pays to the city a tax under any franchise agreement with the city;
4. Banks, including national banking associations to the extent provided by Article XIII, Section 16, subdivision l(a) of the State Constitution;
5. Insurance companies and associations as to the extent provided by Article XIII, Section 14 of the State Constitution;
6. Any person whom the city is not authorized to license for revenue purposes only because of any law or constitution of the United States or the state.
B. The tax collector may require the filing of a verified statement from any person claiming to be excluded by the provisions of this section, which statement shall set forth all facts upon which the exclusion is claimed. (Ord. 923 §5.14, 1977).