Chapter 4
BUSINESS LICENSING*
Sections:
3-4.02 Effect on other fees and charges.
3-4.05 Licenses required to conduct business.
3-4.06 Time to procure licenses.
3-4.07 Fiscal year established.
3-4.08 Fiscal year allocation.
3-4.10.01 Business license processing service charge.
3-4.11 Notice not required to be given.
3-4.39 Retail and general business.
3-4.42 Assessments: Administrative remedies.
3-4.43 Contractors engaged in business sales.
3-4.44 Miscellaneous businesses.
3-4.49 Delinquencies: Penalties.
3-4.50 Reclassifications of business types.
3-4.53 Licenses nontransferable.
3-4.54 Duties of the Director of Finance.
3-4.55 Duties of the City Attorney.
3-4.57 Refunds of overpayments.
* Chapter 4 entitled ’Licensing”, consisting of Section 3-4.01, continuing in effect Ordinance Nos. 497 N.C.S., 502 N.C.S., 567 N.C.S., and 29 C-M, and Section 3-4.02, as added by Ordinance No. 543-82 C-M, effective February 25, 1982, repealed by Ordinance No. 675-85 C-M, effective June 25, 1985.
3-4.01 Purpose.
This chapter is enacted solely to raise revenue for municipal purposes and not for purposes of regulation.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.02 Effect on other fees and charges.
Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any other charge, fee, or license tax for the privilege of doing such business as may be imposed by the City, and such persons shall remain subject to the regulatory provisions of other ordinances, resolutions of the City, and this Code.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.03 Definitions.
For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:
(a) “Business” shall mean and include all professions, trades, occupations, and callings carried on for profit or livelihood, including every kind of commercial enterprise, and including the operation of games, machines, and mechanical devices.
(b) “Concessioner” shall mean the person who rents or leases a portion of a premises for some specific use.
(c) “Construction contractor” shall mean every person conducting or carrying on a business and who is required to be licensed as a contractor by the State and who undertakes to, or offers to undertake to, or purports to have the capacity to undertake to, or submits bids to, or does personally or by or through others construct, alter, repair, add to, improve, move, wreck, or demolish any building, highway, railroad, excavation, or other structure, project, development, or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith. The term contractor shall also include subcontractor and specialty contractor.
(d) “Consultant” shall mean a person who gives expert or professional advice to another person for a fee or consideration.
(e) “Contract construction business” shall mean all business activities carried out by construction contractors.
(f) “Employee” shall mean a person who works for an employer, where right or control exists with such employer, where directions on the performance of work can be given by such employer, and where breach of contract is not involved if work is halted by the employer or employee; furthermore, if there is prima fade evidence that a person is included on the payroll deductions, such as Federal taxes and social security, he may be considered to be an employee.
(g) “Engaging in business” shall mean commencing, carrying on, managing, conducting, or continuing in business and also the exercise of corporate or franchise powers as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business.
(h) “Gross receipts” shall mean the total of amounts actually received or receivable from sales and the total amounts actually or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service 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, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from “gross receipts” shall be the following:
(1) Cash discounts allowed and taken on sales;
(2) Credit allowed on property accepted as part of the purchase price and which property may later be sold;
(3) Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
(4) Such part of the sales price of property returned by purchasers upon the rescission of the contract of sale as is refunded either in cash or by credit; and
(5) Receipts of refundable deposits, except that refundable deposits forfeited and taken into the income of the business shall not be excluded.
(i) “Itinerant vendor” shall mean and include all persons, both principal and agent, who engage in a temporary and transient business in the City selling articles of wearing apparel, dry goods, fancy goods, notions, jewelry, cutlery, groceries, harnesses, machinery, vehicles of all kinds, hardware, photographs or photography, tinware, mill products, or merchandise of any class or character with the intention of continuing such business in the City for a period of not more than ninety (90) days and who, for the purpose of carrying on such business, has no fixed place of business, or hires, leases, or occupies any room, building, or structure for the exhibition or sale of such merchandise of any class or character, or from which room, building, or structure the sales are to be made or business solicited by means of samples or deliveries from house to house. Any such person or firm so engaged shall not be relieved from the provisions of this section by reason of associating temporarily with any local dealer, trader, merchant, or auctioneer or by conducting such temporary or transient business in connection with, or as a part of, or in the name of any local dealer, merchant, or auctioneer.
(j) “Manufacturing business” shall mean and include any business wherein persons are engaged in making materials, raw or partly finished, or assembling finished parts into articles suitable for use.
(k) “Person” shall mean and include all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, businesses, common law trusts, societies, and individuals transacting and carrying on any business in the City other than as an employee.
(l) “Professional” shall mean any person engaged in a business or activity characterized by or conforming to the technical or ethical standards of a profession, including, but not limited to, the following:
(1) Accountants, certified and public;
(2) Appraisers;
(3) Acupuncturists;
(4) Architects;
(5) Assayers;
(6) Attorneys;
(7) Chemists/pharmacists;
(8) Chiropractors;
(9) Consultants;
(10) Dentists;
(11) Dermatologists;
(12) Designers, building;
(13) Electrologists;
(14) Engineers:
(i) Chemical;
(ii) Civil;
(iii) Consulting;
(iv) Electrical;
(v) Hydraulic;
(vi) Mechanical;
(vii) Mining; and
(viii) Structural;
(15) Entomologists;
(16) Geologists;
(17) Landscape architects;
(18) Opticians;
(19) Optometrists;
(20) Osteopaths;
(21) Physicians;
(22) Physical therapists;
(23) Psychoanalysts;
(24) Physiotherapists;
(25) Podiatrists;
(26) Radiologists;
(27) Real estate brokers and agents;
(28) Roentgenologists;
(29) Surgeons; and
(30) Veterinarians.
Each person engaged in one of the professions set forth in this subsection, and such other professions as may be defined by the Director of Finance, shall be deemed to be conducting a separate business for the purposes of the business license tax, regardless of the business entity, association, or employment under which such professional may practice or conduct business.
(m) “Retail business” shall mean every business conducted for the purpose of selling or offering for sale any goods, wares, or merchandise other than as part of a wholesale business as defined in subsection (o) of this section.
(n) “Sale” shall mean the transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying, or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The definitions of sale shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.
(o) “Wholesale business” shall mean every business conducted solely for the purpose of selling goods, wares, or merchandise in whole lots for resale.
(§ l, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.04 Imposition of tax.
The City does hereby license, as provided in this chapter, each and every kind of business and profession and all shows, exhibitions, and games mentioned in this chapter transacted, conducted, exhibited, or carried on in the City and does hereby fix and impose a license tax upon the same at the rates named and prescribed in this chapter.
(a) For businesses or branch establishments seeking a new business license within the Watsonville Enterprise Zone, the license tax shall be waived, for the first calendar year of operation of such business allocated and pro-rated pursuant to Section 3-4.08, should the City of Watsonville be designated a State Enterprise Zone, providing the applicable business meets both of the following conditions:
(1) The business shall be a new industrial or commercial/retail establishment or new branch commercial/retail establishment (Section 3-4.09); and
(2) The business shall create at least one new permanent, full-time equivalent job within the Watsonville Enterprise Zone.
(b) The license tax waiver shall not apply to industrial/commercial/retail businesses seeking a business license renewal or amendment.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985, as amended by § 1, Ord. 1025-97 C-M, eff. May 8, 1997)
3-4.05 Licenses required to conduct business.
No person, firm, or corporation within the corporate limits of the City, either for himself or as the agent of another, shall engage in, conduct, or carry on any business, profession, or game or exhibit any show or exhibition mentioned in this chapter without first procuring and having a license therefor.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.06 Time to procure licenses.
All licenses required by the provisions of this chapter shall be procured, and the license tax therefor paid in advance, either daily, weekly, monthly, quarterly, or yearly as the day, week, month, quarter, or year is made the basis of payment or is the period of time upon which the license tax is based.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.07 Fiscal year established.
For the purposes of issuing licenses and collecting license taxes, the fiscal year of the City shall commence July 1 and end the next June 30, and each fiscal year shall be divided into quarters as follows: July, August, and September shall constitute the first quarter; October, November, and December shall constitute the second quarter; January, February, and March shall constitute the third quarter; and April, May, and June shall constitute the fourth quarter.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.08 Fiscal year allocation.
For the purposes of issuing license and collecting taxes, where the license tax is fixed on the year basis only, the fiscal year commencing July 1 and ending June 30 shall be used as the basis for issuing the license and collecting the tax, except that persons commencing business after October 1 shall pay three-fourths ( 3/4) of the yearly rate; persons commencing business after January 1 shall pay one-half (1/2) of the yearly rate; and persons commencing business after April 1 shall pay one-fourth (¼) of the yearly rate for the fiscal year.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.09 Branch establishments.
A separate license shall be obtained for each branch establishment or location of business transacted and carried on and for each separate business at the same location; provided, however, warehouses and distributing plants used in connection with or incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.10 Rates of tax imposed.
The rates of license tax upon the various named kinds of businesses and professions, excluding retail sales on gross receipts, and on all shows, exhibitions, and games mentioned in this chapter transacted, conducted, exhibited, or carried on in the City which shall be paid by all persons engaged in or carrying on business are hereby fixed and established in Sections 3-4.12 through 3-4.37 of this chapter which are intended as examples of the various kinds of businesses, occupations, and professions subject to the license tax and shall not be all inclusive.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.10.01 Business license processing service charge.
That a Business License Processing Service Charge shall be imposed against each business license issued by the City. The purpose of such charge is to cover the cost of accepting, processing, and maintaining business licenses. The amount of such charge shall be in an amount established, from time to time, by resolution of the Council.
(§ 1, Ord. 1175-04 C-M, eff. May 25, 2004)
3-4.11 Notice not required to be given.
The Director of Finance shall not be required to send a renewal, delinquency, or other notice or bill to any person subject to the provisions of this chapter, and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.12 “A” names.
|
(a) |
Academies (dancing and riding) |
$50.00 per year |
|
(b) |
Advertising agencies |
$50.00 per year |
|
(c) |
Air-conditioning services |
$50.00 per year |
|
(d) |
Aircraft service and maintenance |
$50.00 per year |
|
(e) |
Air freight and charter |
$50.00 per year |
|
(f) |
Ambulance firms |
$50.00 per year |
|
(g) |
Amusement arcades |
$100.00 per year |
|
(h) |
Auctioneers |
$100.00 per year |
|
(i) |
Answering services |
$125.00 per year |
|
(j) |
Automobile garages |
$100.00 per year |
|
(k) |
Automobile for hire (trucks, buses, and vans) |
|
|
(1) |
With a fixed place of business |
$50.00 for one vehicle, plus $10.00 for each additional vehicle per year |
|
(2) |
Without a fixed place of business |
$50.00 per vehicle per year |
|
(l) |
Automobile repairs (excluding automobile garages) |
$100.00 per year |
|
(m) |
Automobile towing |
$50.00 per year |
|
(n) |
Automobile wrecking |
$50.00 per year |
|
(o) |
Automobile accessories and parts |
$100.00 per year |
|
(p) |
Automobile dealers |
$250.00 per year |
|
(q) |
Athletic clubs |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.13 “B” names.
|
(a) |
Bakeries |
$50.00 per year |
|
(b) |
Bail bonding |
$50.00 per year |
|
(c) |
Barber shops |
$50.00 per year |
|
(d) |
Beauty parlors |
$50.00 per year |
|
(e) |
Bicycle repair shops |
$50.00 per year |
|
(f) |
Bicycle sales |
$50.00 per year |
|
(g) |
Billiard and pool halls |
$100.00 per year |
|
(h) |
Blacksmiths |
$50.00 per year |
|
(i) |
Body repair shops |
$50.00 per year |
|
(j) |
Bookkeepers and tax services |
$50.00 per year |
|
(k) |
Boardinghouses and lodging houses for more than two guests |
$50.00 per year |
|
(l) |
Bottling works |
$100.00 per year |
|
(m) |
Bowling alleys |
$100.00 per year |
|
(n) |
Builders and contractors |
$75.00 per year |
|
(o) |
Business services |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.14 “C” names.
|
(a) |
Cabinet shops |
$50.00 per year |
|
(b) |
Candy, wholesale |
$125.00 per year |
|
(c) |
Canning, preserving, and frozen food plants |
$250.00 per year |
|
(d) |
Card rooms |
See Section 5-6.02 of Chapter 6 of Title 5 of this Code |
|
(e) |
Cardboard and aluminum recycling |
$50.00 per year |
|
(f) |
Carnivals and circuses |
$100.00 per day |
|
(g) |
Carpet cleaning services |
$50.00 per year |
|
(h) |
Car washes |
$50.00 per year |
|
(i) |
Catering services |
$50.00 per year |
|
(j) |
Catering trucks |
$100.00 per year |
|
(k) |
Chimney sweepers |
$50.00 per year |
|
(l) |
Cigars, tobacco, cigarettes, and supplies |
$50.00 per year |
|
(m) |
Cleaning and dyeing clothes |
$50.00 per year |
|
(n) |
Cobblers |
$50.00 per year |
|
(o) |
Cocktail lounges, bars, and saloons |
$150.00 per year |
|
(p) |
Coin dealers |
$50.00 per year |
|
(q) |
Cold storage plants |
$250.00 per year |
|
(r) |
Collection agencies |
$50.00 per year |
|
(s) |
Construction contractors (as defined in subsection (c) of Section 3-4.03 of this chapter) |
$75.00 per year |
|
(t) |
Convalescent hospitals |
$50.00 per year |
|
(u) |
Creameries |
$150.00 per year |
|
(v) |
Credit agencies |
$50.00 per year |
|
(w) |
Crop dusting |
$50.00 per year |
|
(x) |
Contractors |
$75.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.15 “D” names.
|
(a) |
Dance halls |
$200.00 per year |
|
(b) |
Delicatessens |
See restaurants (subsections (d) and (e) of Section 3-4.29 of this chapter) |
|
(c) |
Delivery services |
$100.00 per year |
|
(d) |
Distributors, water |
$50.00 per year |
|
(e) |
Distributors, wholesale products |
$100.00 per year |
|
(f) |
Doughnut shops |
$50.00 per year |
|
(g) |
Drafting services |
$50.00 per year |
|
(h) |
Drain, sewer, and septic tank cleaning |
$50.00 per year |
|
(i) |
Drapery installation services |
$50.00 per year |
|
(j) |
Drilling companies |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.16 “E” names.
|
(a) |
Electrical appliance and refrigeration repairs |
$50.00 per year |
|
(b) |
Electrical energy and gas |
$150.00 per year |
|
(c) |
Electrical, retail |
See Section 3-4.39 of this chapter |
|
(d) |
Electrolysis |
$50.00 per year |
|
(e) |
Engravers |
$50.00 per year |
|
(f) |
Express offices |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.17 “F” names.
|
(a) |
Fabricated metal product |
$50.00 per year |
|
(b) |
Feed yards |
$50.00 per year |
|
(c) |
Finance company offices |
$50.00 per year |
|
(d) |
Floor cleaning |
$50.00 per year |
|
(e) |
Foundries |
$50.00 per year |
|
(f) |
Funeral directors |
$100.00 per year |
|
(g) |
Furnace cleaning and repairs |
$50.00 per year |
|
(h) |
Furniture refinishing |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.18 “G” names.
|
(a) |
Gardeners |
$50.00 per year |
|
(b) |
Gasoline, retail service stations |
$100.00 per year |
|
(c) |
Gasoline, wholesale |
$100.00 per year |
|
(d) |
Go-cart tracks |
$50.00 per year |
|
(e) |
Golf, miniature |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.19 “H” names.
|
(a) |
Handyman services |
$50.00 per year |
|
(b) |
Health studios and spas |
$50.00 per year |
|
(c) |
Home occupations (services) |
$50.00 per year |
|
(d) |
House movers |
See construction contractors (subsection(s) of Section 3-4.14 of this chapter) |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.20 “I” names.
|
(a) |
Ice cream parlors and candy stores |
$100.00 per year |
|
(b) |
Interior decorators |
$50.00 per year |
|
(c) |
Itinerant vendors, peddlers, and jobbers (as defined in subsection (i) of Section 3-4.03 of this chapter) |
$100.00 per year; $30.00 per month; $6.00 per day |
|
(d) |
Investment companies |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.21 “J” names.
|
(a) |
Janitorial services |
$50.00 per year |
|
(b) |
Job printing offices |
$50.00 per year |
|
(c) |
Junk yards |
$50.00 per year |
(§ l, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.22 “K” names.
|
(a) |
Kennels |
$50.00 per year |
|
(b) |
Key shops |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.23 “L” names.
|
(a) |
Laboratories |
$50.00 per year |
|
(b) |
Laundries |
$50.00 per year |
|
(c) |
Locksmiths |
$50.00 per year |
|
(d) |
Lumber yards |
$100.00 per year |
|
(e) |
Loudspeakers |
$10.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.24 “M” names.
|
(a) |
Machine shops |
$50.00 per year |
|
(b) |
Mail order shops |
$50.00 per year |
|
(c) |
Manufacturing and electronic industries |
$125.00 per year |
|
(d) |
Manufacturing soft drinks |
$100.00 per year |
|
(e) |
Martial arts studios |
$50.00 per year |
|
(f) |
Medical clinics |
See professional persons (subsection (l) of Section 3-4.27 of this chapter) |
|
(g) |
Modeling schools |
$50.00 per year |
|
(h) |
Monuments and tombstones |
$50.00 per year |
|
(i) |
Motels and hotels |
$75.00 per year |
|
(j) |
Motorcycle repairs |
$50.00 per year |
|
(k) |
Motorcycle sales |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.25 “N” names.
|
(a) |
Newspaper publishing |
$75.00 per year |
|
(b) |
News dealers and newsstands |
$50.00 per year |
|
(c) |
Notary publics |
$50.00 per year |
|
(d) |
Nurseries, child care |
$50.00 per year |
|
(e) |
Nursing homes |
$50.00 per year |
|
(f) |
Nurseries, plants and gardens |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.26 “O” names.
|
(a) |
Office services |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.27 “P” names.
|
(a) |
Packinghouses |
$100.00 per year |
|
(b) |
Paint sales |
$50.00 per year |
|
(c) |
Pawnbrokers |
$100.00 per year |
|
(d) |
Personal services (party planning and cooking) and catering |
$50.00 per year |
|
(e) |
Pest control |
$50.00 per year |
|
(f) |
Photography |
$50.00 per year |
|
(g) |
(Not used) |
|
|
(h) |
Pinball, video, and any game of skill mechanically and electronically operated |
$25.00 per year for each machine |
|
(i) |
Pizza parlors |
See restaurants (subsections (d) and (e) of Section 3-4.29 of this chapter) |
|
(j) |
Private investigators |
$100.00 per year |
|
(k) |
(Not used) |
|
|
(l) |
Professional persons as defined in subsection (l) of Section 3-4.03 of this chapter |
$100.00 per year |
|
For each additional member of such partnership or association |
$50.00 per year |
|
|
(m) |
Public warehouses |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.28 “Q” names.
(None).
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.29 “R” names.
|
(a) |
Radiator repair shops |
$50.00 per year |
|
(b) |
Rental services |
$50.00 per year |
|
(c) |
Repair services |
$50.00 per year |
|
(d) |
Restaurants |
|
|
(1) Zero to four employees |
$50.00 per year |
|
|
(2) Five or more employees |
$100.00 per year |
|
|
(e) |
Restaurants serving alcoholic beverages |
$100.00 per year |
|
(f) |
Retail sales |
See Section 3-4.39 of this chapter |
|
(g) |
Retail vending of food and beverages without a fixed place of business |
See catering trucks (subsection (j) of Section 3-4.14 of this chapter) |
(§ 1, Ord. 675-85 C-M, eff, June 25, 1985)
3-4.30 “S” names.
|
(a) |
Selling meat, wholesale |
$50.00 per year |
|
(b) |
Selling trading stamps |
$50.00 per year |
|
(c) |
Septic tank services |
$50.00 per year |
|
(d) |
Shooting galleries |
$50.00 per year |
|
(e) |
Silk screen printers |
$50.00 per year |
|
(f) |
Skating rinks |
$100.00 per year |
|
(g) |
Sport schools |
$50.00 per year |
|
(h) |
Stamp dealers |
$50.00 per year |
|
(i) |
Storage facilities |
$50.00 per year |
|
(j) |
Swimming pool maintenance |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.31 “T” names.
|
(a) |
Tanneries |
$100.00 per year |
|
(b) |
Taxidermists |
$50.00 per year |
|
(c) |
Tailoring |
$50.00 per year |
|
(d) |
Telegraph offices |
$50.00 per year |
|
(e) |
Telephone solicitors |
$100.00 per year |
|
The fee for each business or association where the initial contacts or uninvited contacts are made with prospective customers by telephone solicitations in any manner or form, in addition to the regular business license tax, shall be One Hundred and no/100ths ($100.00) Dollars per year. No fee shall be due from any church, school, or charitable, benevolent, or social organization conducting a telephone solicitation where the initial contacts or uninvited contacts are made with prospective donees; provided, however, such charitable and nonprofit organizations shall make a written application upon a form prescribed by the Director of Finance in order to determine such exempt status. |
||
|
(f) |
Temporary service businesses |
$50.00 per year |
|
(g) |
Theaters, theatrical performances, plays, concerts, and movies |
|
|
(1) Where seating capacity does not exceed 300 |
$100.00 per year |
|
|
(2) Where seating capacity exceeds 300 but less than 600 |
$150.00 per year |
|
|
(3) Where seating capacity exceeds 600 |
$200.00 per year |
|
|
(h) |
Travel agencies |
$50.00 per year |
|
(i) |
Truck renting and leasing |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.32 “U” names.
|
(a) |
Upholstery shops |
$50.00 per year |
|
(b) |
Uniform supply services |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.33 “V” names.
|
(a) |
Vegetable and fruit evaporating plants |
$50.00 per year |
|
(b) |
Vending machines |
|
|
(1) One to nine machines |
$50.00 per year |
|
|
(2) Ten or more machines |
$100.00 per year |
|
|
(c) |
Vinegar plants |
$100.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.34 “W” names.
|
(a) |
Weed control services |
$50.00 per year |
|
(b) |
Welding shops |
$50.00 per year |
|
(c) |
Wholesale merchandise establishments |
$100.00 per year |
|
(d) |
Window cleaning |
$50.00 per year |
(§ l, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.35 “X” names.
|
(a) |
X-ray laboratories |
$50.00 per year |
(§ 1, Ord. 675-85 C-M. eff. June 25, 1985)
3-4.36 “Y” names.
(None).
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.37 “Z” names.
(None).
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.38 Multiple businesses.
Any person engaged in conducting or carrying on more than one kind of business or game or exhibiting more than one kind of show or exhibition for which a license is required by this chapter shall procure a separate license and pay the prescribed tax for each such kind of business or game engaged in or carried on and for each such show or exhibition exhibited, except as otherwise provided in this chapter.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.39 Retail and general business.
Every person engaging in any business consisting of selling at retail any goods, wares, merchandise, or commodities, or engaging in any trade, occupation, service, or calling in which the general nature and purpose is retail business, shall pay an annual license tax based on the annual gross receipt of the retail business as set forth in the following schedule:
|
Annual Gross Receipts |
Annual Tax |
|
$0 — 100,000 |
$100.00 |
|
100,001 — 200,000 |
150.00 |
|
200,001 — 300,000 |
200.00 |
|
300,001 — 400,000 |
250.00 |
|
400,001 — 500,000 |
300.00 |
|
500,001 — 600,000 |
350.00 |
|
600,001 — 700,000 |
400.00 |
|
700,001 — 800,000 |
450.00 |
|
800,001 — 900,000 |
500.00 |
|
900,001 — 1,000,000 |
550.00 |
|
1,000,001 — 1,500,000 |
600.00 |
|
and $50.00 for each increment or fraction of $500,000 above $1,500,000.00 |
|
The maximum fee for 1995-96 is One Thousand Two Hundred ($1200.00) and no/100ths Dollars, 1996-97 is One Thousand Eight Hundred ($1,800.00) and no/100ths Dollars and without limit thereafter.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985, as amended by § 1, Ord. 971-95 C-M, eff. July 1, 1995)
3-4.40 License applications.
(a) Any person applying for a first license or renewal license shall make an application upon a form provided by the Director of Finance, which form shall provide such information as may be required and as may be necessary to determine the nature of the business and the classification and amount of tax due.
(b) For a first license subject to the gross receipts tax, the applicant shall estimate the gross receipts for the period to be covered by the license to be issued. Such estimate, if accepted by the Director of Finance as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, however, the amount of the license tax so determined shall be tentative only, and such person, within thirty (30) days after the expiration of the period for which such license was issued, shall furnish a sworn statement, upon a form furnished by the Director of Finance, showing the gross receipts during the period of such license, and the license tax for such period shall be finally ascertained and paid in the manner provided for the ascertaining and paying of renewal license taxes after deducting from the payment found to be due the amount paid at the time such first license was issued.
No license renewal shall be issued to any such person for the same or any other business until such person shall have furnished the sworn statement and paid the license tax as required by this chapter.
(c) In all cases the applicant for the renewal of a license shall submit to the Director of Finance for guidance in ascertaining the amount of the license tax to be paid by the applicant a sworn statement, upon a form to be provided, setting forth such information concerning the applicant’s business during the preceding year as may be required by the Director of Finance to enable the Director of Finance to ascertain the amount of the license tax to be paid by the applicant pursuant to the provisions of this chapter.
(d) No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the statement preclude the City from collecting by appropriate action such sum as is actually due and payable pursuant to the provisions of this chapter. Such statement and each of the several items therein contained shall be subject to audit and verification by the Director of Finance or authorized employees of the City who are hereby authorized to examine, audit, and inspect such books and records of any licensee or applicant for a license as may be necessary in their judgment to verify or ascertain the amount of license tax due.
(e) All persons subject to the gross receipts tax shall keep complete records of business transactions, including sales, receipts, purchases. and other expenditures, and shall retain all such records for examination by the Director of Finance. Such records shall be maintained for a period of at least three (3) years.
(f) It shall be unlawful for the Director of Finance or any other person having an administrative duty under the provisions of this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of the records and equipment of any person required to obtain a license, or pay a license tax, or any other person visited or examined in the discharge of an official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person; provided, however, nothing in this section shall be construed to prevent:
(1) The disclosure to, or the examination of records and equipment by, another City official, employee, or agent for the collection of taxes for the sole purpose of administering or enforcing any provision of this chapter or collecting the taxes imposed by this chapter;
(2) The disclosure of information and results of examinations of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any license tax liability of the particular taxpayers to the City;
(3) The disclosure, after the filing of a written request to that effect, to the taxpayer, or to the successors, receivers, trustees, executors, administrators, assignees, and guarantors of the taxpayer, if directly interested, or information as to the items included in the measure of any paid tax, any unpaid tax, or amounts of tax required to be collected or interest and penalties; further provided, however, that the City Attorney approves each such disclosure and that the Director of Finance may refuse to make any disclosure referred to in this subsection when the public interest would suffer thereby;
(4) The disclosure of the names and addresses of persons to whom licenses have been issued and the general type or nature of such business;
(5) The disclosure by way of appeal at a public meeting or otherwise of such information as may be necessary for the Board of Review or the Council to be fully advised as to the facts when a taxpayer files a claim for the refund of license taxes, or an assessment proceeding by the City for license taxes, or when acting upon any other matter; and
(6) The disclosure of general statistics regarding taxes collected or business done in the City.
(§ l, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.41 Audits of records.
The correctness of all statements of gross receipts shall be subject to audit and verification by the Director of Finance, the City Attorney, or by their properly authorized deputies or assistants who are authorized and empowered to inspect and audit the books and records of any and all persons subject to the gross receipts tax provided in this chapter. No statement filed by a licensee shall be conclusive upon the City on any matters contained therein. The Director of Finance, with the prior consent of the City Attorney, may deputize a qualified accountant. Any licensee refusing to exhibit the necessary books and records, as required by the Director of Finance, shall be guilty of an infraction.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.42 Assessments: Administrative remedies.
(a) Assessment of taxes. Whenever the Director of Finance determines that any tax is due or may be due to the City under the provisions of this chapter, the Director of Finance may make and give notice of an assessment of such tax.
(b) Service of assessments; Right to hearings. The notice of assessment shall be served upon the person either by personal delivery or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business appearing on the face of the registration certificate issued to the business or to such other address, as shall be registered with the Director of Finance, for the purpose of receiving notices provided under this chapter. Should the person have no registration certificate issued and should the person have no address registered with the Director of Finance for such purpose, such notice shall be sent to such person’s last known address. For the purposes of this section, service by mail shall be complete at the time of deposit in the United States mail. Within fifteen (15) days after the date of service, the person assessed may either apply in writing to the Director of Finance for a hearing on the assessment or may file a written request that such hearing be waived. If the person neither requests a hearing upon the assessment nor requests a waiver of the hearing within the prescribed time, the amount of the assessment shall be final, and the amount thereof shall immediately be due and owing to the City, but penalties and interest as provided by this chapter shall continue to accrue until paid.
(c) Waivers of hearings. If the person requests that the hearing be waived, the Director of Finance may either grant such request and notify the person thereof in writing or may deny the request and set the assessment for a hearing at the time and in the manner set forth in subsection (d) of this section. If the Director of Finance grants the request for a waiver of the hearing, the administrative proceedings prescribed by this section shall be deemed exhausted, and the City shall have the right to bring an action in any court of competent jurisdiction to collect the amount of the assessment, plus such penalties and interest as may have accrued thereon as provided by this chapter.
(d) Time of hearings: Notices. If the person requests a hearing upon the assessment or if the Director of Finance denies the request for a waiver of the hearing, the Director of Finance shall cause the matter to be set for a hearing before the Board of Review not later than ninety (90) days after the date of the application or, at the case may be, the date of the denial of the Director of Finance of the request for a waiver of the hearing. Notice of the time and place of the hearing shall be mailed to the person assessed not later than fifteen (15) days before the date set for the hearing and, if the Director of Finance desires the person to produce specific records at such hearing, such notice may designate the records required to be produced.
(e) Administrative hearings. The hearings prescribed by this section shall be held before the Board of Review. The Board of Review shall be composed of the City Manager, the Assistant City Manager, and the City Attorney or the duly appointed representative of each. At the hearing the person assessed and the Director of Finance may submit such evidence as they believe to be relevant to their respective positions. The Board of Review may require the presentation of additional evidence from either the person assessed, or from the Director of Finance, or from both, and may continue the hearing from time to time for the purpose of allowing the presentation of additional evidence.
(f) Decisions of the Board of Review. Upon the completion of the hearing, the Board of Review may (1) affirm the assessment, (2) increase the assessment, or (3) decrease the assessment, as the evidence may require, but the amount of the assessment shall not be increased unless the claim for the increase is asserted on behalf of the City either before or during the hearing. Written notice of the decision of the Board of Review shall be given to the person assessed in the form and in the same manner as the notice of assessment.
(g) Exceptions. Within fifteen (15) days after the date of service of the notice of decision of the Board of Review, the person assessed may file written exceptions to the decision of the Board of Review but shall not be required to do so. Upon the filing of written exceptions, the Board of Review may either deny the exceptions or modify its decision as it deems appropriate. If the Board of Review modifies its decision, it shall cause a written notice of the decision, as required by subsection (f) of this section, to be given to the person assessed at the time and in the manner provided therein. If the Board of Review does not modify its decision within thirty (30) days after the service of such exceptions, the exceptions shall be deemed denied.
(h) Effect of delays in administrative proceedings. The failure of the Director of Finance to set any hearing within the time prescribed in this section and the failure of the Board of Review to complete any procedure prescribed in this section within the period stated shall not affect the validity of any proceeding taken pursuant to this section.
(i) Effect of payment of assessments. The acceptance of any payment upon an assessment, the validity of which has not previously been passed upon by the Board of Review, shall not preclude the Director of Finance from subsequently levying another assessment in any case where the original assessment does not truly reflect the correct tax liability.
(j) Appeals. Within fifteen (15) days after the notice of decision of the Board of Review, the person assessed may appeal to the Council. The decision of the Council shall be final, and such decision or failure to appeal shall exhaust the administrative remedy.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.43 Contractors engaged in business sales.
Any contractor engaged in the business of selling goods, wares, or merchandise or a retailer or wholesaler in addition to a contracting business, in addition to the contractor’s business license provided for in this chapter, shall secure a license for such retail or wholesale business as required by this chapter.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.44 Miscellaneous businesses.
(a) Any person engaged in a business not covered by other provisions of this chapter shall be subject to a license tax Fifty ($50.00) and no/100ths Dollars per year.
|
(b) |
Movie production activities |
Sum to be determined by the City Manager based upon the extent of the activities and costs to the City |
|
(c) |
Selling by invitation or appointment (with no fixed place of business) |
$50.00 per year |
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.45 Due dates of taxes.
The license tax imposed by the provisions of this chapter shall be due and payable and shall constitute a debt due and owing to the City on the first day of any fiscal year for which it has been paid, from all persons, on that day engaged in on any business for which a license tax is required. The license tax of all persons commencing or beginning to carry on any such business on any day after the first day of any fiscal year shall become due and payable and shall constitute a debt due and owing to the City on the first day of which the business shall be carried on. The license tax of all persons, firms, or corporations commencing or beginning to carry on any such business for which a license tax is required by the provisions of this chapter and where such license tax is fixed by the day, month, quarter, or year shall become due and payable and constitute a debt due and owing the City on the first day on which such business shall be carried on for the full amount of such daily, monthly, quarterly, or yearly rate as the case may be. In all instances where, under the provisions of this chapter, a license is to be issued for a single day or any portion of a day or a single performance or exhibition, the license tax shall be due and payable and shall constitute a debt due and owing the City on each day for which it is required in advance.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.46 Issuance of licenses.
All licenses issued pursuant to the provisions of this chapter shall be signed by the Director of Finance or his deputy, and each license shall state the name of the person to whom it is issued, the nature of the business, show, exhibition, or game thereby licensed, the date and time for which it is issued, and the amount of the license tax to be paid therefor.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.47 License records.
The Director of Finance shall keep a license record in which shall be entered the names of all persons to whom a license is issued pursuant to the provisions of this chapter, the date of the issuance of such license, the nature of the business, show, exhibition, or game thereby licensed, the time for which the license is issued, and the amount of license tax paid therefor.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.48 Display of licenses.
Every person to whom a license is issued pursuant to the provisions of this chapter shall keep the license conspicuously posted in or about the place where the business, show, exhibition, or game thereby licensed is conducted, exhibited, or carried on and, upon demand, shall exhibit the license to the Director of Finance, or to any of his deputies, or to any police officer.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.49 Delinquencies: Penalties.
To every license tax imposed to be paid by any person engaged in doing business in the City shall be added twenty-five (25%) percent of the license tax as a penalty upon the failure to pay the license tax within thirty (30) days after the tax is due, and an additional twenty-five (25%) percent if not paid within sixty (60) days after the tax is due, and it shall be the duty of the Director of Finance to collect such penalties before issuing any license to any person.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.50 Reclassifications of business types.
In any case where a licensee or an applicant for a license believes that the individual business is not assigned to the proper classification under this chapter because of circumstances peculiar to such business, as distinguished from other businesses of the same kind, such person may apply to the Director of Finance for a reclassification. Such application shall contain such information as the Director of Finance may deem necessary and require in order to determine whether the applicant’s individual business is properly classified. The Director of Finance shall then conduct an investigation following which the Director of Finance shall assign the applicant’s individual business to a classification shown to be proper on the basis of such investigation. The proper classification shall be that which, in the opinion of the Director of Finance, most nearly fits the applicant’s individual business.
The reclassification shall not be retroactive but shall apply at the time of the next regularly ensuing calculation of the applicant’s tax, except where the applicant applies for a reclassification within thirty (30) days after the original classification in which case the reclassification shall be retroactive.
The Director of Finance shall notify the applicant of the action taken on the application for a reclassification. Such notice shall be given by serving it personally or by depositing it in the United States post office at Watsonville, California, postage prepaid, addressed to the applicant at his last known address. Such applicant, within fifteen (15) days after the mailing or serving of such notice, may make a written request to the Director of Finance for a hearing on his application for a reclassification. If such request is made within the time prescribed, the Director of Finance shall cause the matter to be set for a hearing before the Council within fifteen (15) days. The Director of Finance shall give the applicant at least ten (10) days’ notice of the and place of the hearing in the manner prescribed in this section for serving the notice of the action taken on the application for a reclassification. The Council shall consider all evidence adduced, and its findings thereon shall be final. Written notice of such findings shall be served upon the applicant in the manner prescribed in this section for service of the notice of the action taken on the application for a reclassification.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.51 Exemptions.
No tax or fee prescribed by this chapter shall be deemed or construed to apply to any of the following persons who are exempted from the payment thereof:
(a) Agricultural. When the tax or fee applies to growers of livestock, poultry, or agricultural products for sale or disposal by growers only;
(b) Charitable and nonprofit organizations. Any church, school, charitable, benevolent, or social organization conducting any exhibition, show, or performance for the exclusive benefit of such church, school, benevolent, or social organization and any bona fide church, bona fide school, bona fide veterans organization, or bona fide charity conducting any sale or business for the exclusive benefit of such church, school, veterans organization, or charity provided such church, school, veterans organization, or charity is located within the corporate limits of the City. Such exemption shall not apply to any person operating any business, show, sale, exhibition, or enterprise for profit who shares such profit with any church, school, veterans organization, charity, or charitable benevolent or social organization;
(c) Conflicts with Federal and State laws. Any person conducting any business exempt by virtue of the Constitution or applicable statutes of the United States or of the State from the payment to municipal corporations of such taxes as are prescribed in this chapter;
(d) Disabled veterans. Any honorably discharged military person from the military, air force, coast guard, or naval service of the United States of America who is unable to earn a livelihood by manual labor and who hawks, peddles, or vends any kind of goods in the City provided such person has obtained, in advance, a written permit issued by a veterans’ service officer of the County and a written permit from the City Manager;
(e) Employees. No person who is an employee or who is the direct representative of a licensee shall be required to pay a license tax for doing any part of the work of such licensee;
(f) Growers. Persons selling or otherwise disposing of livestock, poultry, or agricultural products raised by the seller only;
(g) Nurses. Nurses shall be exempt from license taxes;
(h) Rooming houses. Rooming houses with two (2) rental rooms or less; and
(i) Teachers. Teachers or instructors, including, but not limited to, teachers or instructors of the fine arts, such as painting, vocal and instrumental music, drawing, sculpturing, ceramics, pottery, dancing, dramatics, and arrangements, provided all of the following conditions exist:
(1) That instructions are given only in the homes of the teacher or instructor or student:
(2) That the teacher or instructor has no employee or employees; and
(3) That the teacher or instructor is not required to hold a City sales tax permit.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.52 Violations: Penalties.
(a) Businesses violating laws. The issuance of a license pursuant to this chapter shall not entitle the licensee to engage in any business which for any reason is in violation of any law or provision of this Code.
(b) Separate violations. The conducting of business in the City without first having procured a license from the City to do so or without complying with any and all regulations of such business contained in this chapter shall be a separate violation for each and every day such business is so carried on.
(c) Penalties for violations. Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any officer or employee of the City any material fact in procuring the license provided for by this chapter shall be subject to the penalties provided in Chapter 2 of Title 1 of this Code.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.53 Licenses nontransferable.
No license issued pursuant to the provisions of this chapter shall be transferred or assigned.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.54 Duties of the Director of Finance.
The Director of Finance shall make a diligent effort to discover all persons conducting any business in the City for which a license is required by the provisions of this chapter.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.55 Duties of the City Attorney.
The Director of Finance at any time may request the City Attorney to bring a suit in the name of the City for the recovery of any license tax from any person who conducts a business without procuring the license required by this chapter and without paying the prescribed license tax for the recovery of such license tax and penalties due thereon.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.56 Enforcement.
It shall be the duty of the Director of Finance and the Director of Finance is hereby directed to enforce each and all of the provisions of this chapter, and the Chief of Police shall render such assistance in the enforcement of the provisions of this chapter as may from time to time be required by the Director of Finance or the Council.
The Director of Finance, in the exercise of the duties imposed by this chapter and acting through deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the City to ascertain whether the provisions of this chapter have been complied with.
The Director of Finance and all assistants and any police officer shall have the power and authority to enter, free of charge, and at any reasonable time during business hours, any place of business required to be licensed by this chapter and demand an exhibition of the license of such business. Any person to whom a license is issued, in its possession or under its control, shall exhibit the license on demand.
It shall be the duty of the Director of Finance and each assistant to enforce this chapter against any and all persons found to be violating any of its provisions.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.57 Refunds of overpayments.
No refund of an overpayment of taxes imposed by this chapter shall be allowed in whole or in part unless a claim for a refund is filed with the Director of Finance within a period of one year after the last day of the calendar month following the period for which the overpayment was made, and all such claims for refunds of the amount of the overpayment shall be filed with the Director of Finance on forms furnished by him and in the manner prescribed by him. Upon the filing of such claim, and when the Director of Finance determines that an overpayment has been made, the amount overpaid shall be refunded.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.58 Effect of annexations.
All existing businesses brought under the jurisdiction of the City by annexation procedures shall conform to the provisions of this chapter within ninety (90) days after the effective date of such annexation.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)
3-4.59 Rules and regulations.
The Director of Finance may make such rules and regulations not inconsistent with the provisions of this chapter as may be necessary or desirable to aid in the enforcement of the provisions of this chapter.
(§ 1, Ord. 675-85 C-M, eff. June 25, 1985)