Article 2

• (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 or Announcing 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, the use of signs, circulars, cards, telephone books, directories, the dissemination of pamphlets or handbills, publishing newspaper announcements, and purchasing radio or television commercials or other advertising media by which a person represents that such person is doing business in the City.

• (Ord. 543, § 3)

• (a) Except as otherwise provided in this chapter, all annual license taxes required by the provisions of this chapter shall be due and payable in advance on January 1st of each year; provided; however, license taxes covering new operations commencing after January 1st may be prorated for the balance of the license period in accordance with Section 3-1.203.

• (b) 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.

• (c) The amount of the business license tax to be paid shall be specified in Article 6 of this chapter.

• (d) If the Tax Collector determines, as a result of any audit or other information received, that additional license taxes are to be paid by any business, such additional amount shall be billed by the Tax Collector to the business licensee, and said amount shall be due and payable not later than 30 days after such billing. Penalties on the additional license taxes shall not accrue until after the expiration of the 30th day following the billing for the additional license taxes.

• (Ord. 543, § 3)

• (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, the license tax may be prorated by the Tax Collector on not less than a quarterly basis for such portion of the calendar 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. 543, § 3)

• (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 underreported by an amount equal to or in excess of 10% of the true gross receipts, then, in addition to the penalties authorized by Subsection (b) of Section 3-1.205, 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) hereof, 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 10 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 before the Tax Collector within 30 days. The procedures for appeal of the Tax Collector's decision to the City Council shall be as set forth in Sections 3-1.507 through 3-1.509.

• (Ord. 543, § 3)

• (a) Generally. All business license taxes shall become delinquent if not paid by 5:00 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 5:00 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 15% of the entire license tax, or unpaid portion thereof, on the first day of the month commencing after the due date. For every 30 days' delinquency thereafter, an additional penalty of 10% of the entire license tax, or unpaid portion thereof, shall be added.

• (c) Debt to City. The amount of any license tax and penalty imposed by the provisions of this chapter shall be deemed a debt to the City. An action may be commenced in the name of the City in any court of competent jurisdiction for the amount of any delinquent license tax and penalties.

• (d) Allocation of Payments to Delinquent Taxes. Partial payments made on delinquent taxes and on penalties therefor shall be allocated by the Tax Collector to the taxes and then penalties that have been owning and outstanding for the longest period of time. (Ord. 543, § 3)

• (a) Posting. Every person required to have a business license pursuant to the provisions of this article, 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) Seals. The Tax Collector shall issue business license seals to every person who has paid the prescribed license tax and been issued a business license. A seal shall be displayed in the front window, if any, on the first floor of the premises where such business is carried on and on the vehicle of any business subject to the provisions of Section 3-1.612 of this chapter. A separate fee to cover the City's reasonable cost of preparing and issuing business license seals shall be set forth by resolution of the City Council and shall be paid prior to the time a business license is issued for the business. A penalty of $25 shall be assessed for failure to display such business license seal as required by this section. Commencing on the eleventh day following receipt of written notice from the City of the failure to display such seal, an additional penalty of $5 per day shall be assessed for each day said seal is not displayed, up to a maximum of 20 days.

• (c) 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.

• (d) Vehicles. Every person or company utilizing vehicles to conduct their business in the City shall affix a current year's seal issued by the City on a visible portion of the subject vehicle.

• (e) Presentation on Demand and Inspection. Every person required to have a business license pursuant to the provisions of this article 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. The City may inspect the entire business premises and property to ascertain whether there is compliance with the provisions of this Code. Inspections may occur only during normal hours of operation for that business, Monday through Sunday.

• (Ord. 543, § 3; Ord. 25-976, 1/12/2026)

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 a ten ($10.00) dollar fee, or a fee in such other amount as set forth by resolution of the City Council.

(Ord. 543, § 3)

• (a) No person required by this article 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. 543, § 3)

• (a) Generally. Unless otherwise provided herein, any person violating any of the provisions of. this chapter shall be guilty of a misdemeanor 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.

• (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.

• (c) Cumulative Remedies. All remedies prescribed in this chapter shall be cumulative, and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

• (Ord. 543, § 3)

Article 3 Application Procedures

Except as otherwise provided in Section 3-1.302, 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 10% 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 that 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) Every applicant who is a contractor shall submit evidence that he or she is licensed by the Contractors' State License Board. Such evidence shall be verified with the Contractors' State License Board by the Tax Collector.

• (g) Any additional information which the Tax Collector deems necessary and appropriate. (Ord. 543, § 3)

• (a) List of 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 (Section 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.

  • (4) A minor under the age of 18 years engaged in activities requiring a license under this chapter where such minor engages in those activities for no more than 20 hours in any week.

• (b) Filing of Claims of Exemption. Any person claiming an exemption pursuant to the provisions of this section shall file a verified statement with the Tax Collector stating the facts upon which such exemption is claimed.

• (c) Approval of Exemptions. The Tax Collector, upon a proper showing contained in the verified statement, shall issue a license to such person claiming an exemption pursuant to the provisions of this section without payment to the City of the license tax required by this chapter.

• (d) Revocation of Exemptions. The Tax Collector, after giving notice and a reasonable opportunity for a hearing to the licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to an exemption as provided for in this section.

• (Ord. 543, § 3)

In addition to the information required by Section 3-1.301 of this article, upon the filing of an application for a business license for a newly-established business where the amount of the license tax to be paid is measured by gross receipts, the applicant shall furnish to the Tax Collector, for his or her guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement, upon a form provided by the Tax Collector, setting forth such information as may be necessary to determine the amount of the license tax to be paid by the applicant. The applicant shall estimate the gross receipts for the period to be covered by the license on this written form. If accepted by the Tax Collector as reasonable, the applicant's estimate shall be used in determining the amount of the license tax; provided, however, the amount of the license tax so determined shall be tentative only, and such person, within 30 days after the expiration of the period for which such license was issued, shall furnish the Tax Collector with a statement prepared under penalty of perjury, on a form provided by the Tax Collector, the applicable tax during the period of such license. The license tax shall be finally ascertained and paid after deducting from the payment found to be due the amount paid at the time the license was first issued. Any excess payment shall be refunded to the applicant. The Tax Collector shall not issue to any such person another license for the same or any other business until such person shall have furnished to the Tax Collector the written statement and paid the license tax as required by the provisions of this section. (Ord. 543, § 3)

• (a) Investigation and Inspections. The Tax Collector shall, from time to time, designate the investigations and inspections required for particular businesses when those businesses have submitted a first-time application for a business license, as generally indicated by the following guides:

  • (1) The Planning Department shall be required to review all applications, other than renewal applications, for compliance with the zoning, subdivision and like provisions of this Code.

  • (2) The Building and Safety Department shall review applications involving a change of occupancy of any portion of a building, and in such other circumstances as may involve questions of compliance with City building, electrical, plumbing and other construction codes.

  • (3) The Fire Department shall review applications which involve businesses or premises which may constitute substantial fire risks, or any risks of serious danger to human life or property.

  • (4) The Sheriff's Department shall review applications for businesses which affect public morals, involve substantial danger or fraud or deception, pose unusual police problems, may involve the handling or receiving of stolen goods to a higher degree than usual, tend to affect traffic control, involve public assembly, include police type functions, are of a kind which tend to attract or involve undesirable persons, or otherwise substantially affect public safety.

  • (5) The Health Department shall be required to review applications for business involving the preparation, storage or sale of food or drink, except in sealed containers.

  • (6) Other departments, agencies or officers shall review applications when the proposed business poses special problems dealt with by such department, agency or officer.

• (b) Exceptions to Investigations and Inspections. The Tax Collector may grant exceptions from the requirements of an inspection and investigation, when, in his or her opinion, its literal application is not required to accomplish the objectives of such requirements and this section.

• (c) Investigation and Inspection Fees. A one time investigation and inspection fee shall be paid by the applicant upon application for the first year of a business license. The fee shall be as calculated based on the number of departments the Tax Collector determines is required for the application. The fee for each department's review shall be as follows:

  • (1) Planning Department: $25.

  • (2) Building and Safety Department: $25.

  • (3) Fire Department: $25.

  • (4) Sheriff's Department (routine check): $25.

  • (5) Other inspections and investigations by City personnel at $25 per hour.

  • (6) Outside personnel: actual cost billed to City.

  • (7) "Like for like" review (no change in use from one owner to another): $25.

  • (8) Outside personnel: actual cost billed to City.

• (d) Exemption from Investigation and Inspection Fee. The investigation and inspection fee provided in Subsection (a) of this section shall not apply to any business, trade or profession that is estimated to have less than $150,000 in gross annual receipts in the first 12 months of its operation.

• (Ord. 12-790, § 3)

• (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. Notwithstanding these requirements, warehouses and distributing plants used in connection with and incidental to a business licensed under this chapter shall not be deemed separate places of business or branch establishments. In addition, automobile sales lots operated by one owner, where no separate books are maintained for separate locations, shall not be deemed separate places of business or branch establishments.

• (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. 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. 543, § 3; Ord. 12-790, § 4)

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. 543, § 3; Ord. 12-790, § 4)

The Tax Collector or other appropriate officer or body may examine under oath any applicant to determine who is the real party in interest in the business for which a license is sought. If the Tax Collector is satisfied that the application is not in the interest of the person in whose name the application is made, he or she may deny the license. If the Tax Collector finds that the application is in the interest of one whose license has been revoked or who has been refused a license, he or she may treat the application as though made by the real party in interest, and the limitation on future applications of Section 3-1.312 shall apply.

(Ord. 543, § 3; Ord. 12-790, § 4)

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. 543, § 3; Ord. 12-790, § 4)

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 this article, 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. (Ord. 543, § 3; Ord. 12-790, § 4)

A licensee who changes his or her place of business or who locates a business previously operated without a fixed place of business may, upon application therefor and paying a fee of $10 or such other amount as is hereafter fixed by resolution of the Council, have the license amended to reflect the new address.

(Ord. 543, § 3; Ord. 12-790, § 4)

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 of this Title 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 of this Title, or for which a conditional use permit is required by Title 9 of this Code, shall be void upon the revocation or expiration of any such business permit or conditional use permit. (Ord. 543, § 3; Ord. 12-790, § 4)

• (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 this chapter 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. 543, § 3; Ord. 12-790, § 4)

The Tax Collector shall have the power, for good cause shown, to extend the time for filing any application or statement required by the provisions of this chapter for a period not exceeding 30 days and, in such cases, to waive any penalty which would otherwise have accrued. (Ord. 543, § 3; Ord. 12-790, § 4)

• (a) No statement required by the provisions of this chapter shall be conclusive as to the matters set forth therein, nor shall the filing of any such statement preclude the City from collecting by appropriate action such sums as are actually due and payable pursuant to the provisions of this chapter.

• (b) All statements required by the provisions of this chapter, shall be subject to audit and verification by the Tax Collector, or deputies or authorized agents, 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. All licensees, applicants for licenses, and persons engaged in business in the City are hereby required to permit an examination of such books and records for purposes of ensuring compliance with the provisions of this chapter.

• (Ord. 543, § 3; Ord. 12-790, § 4)

Except for the information specified in Section 3-1.314, 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 (Government Code Section 6250 et seq.). (Ord. 543, § 3; Ord. 12-790, § 4)

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 subsection 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. 543, § 3; Ord. 12-790, § 4)

The Tax Collector shall not approve an application for a business license or an application for the renewal thereof if substantial evidence exists regarding, and based on that substantial evidence, the Tax Collector makes any of the following findings:

• (a) The building, structure, premises, or the equipment used to conduct the business activity fails to comply with all applicable health, zoning, fire, building and safety laws and regulations;

• (b) The applicant has knowingly or should have known that they made any false, misleading or fraudulent statement of material fact in the application for the business license, in the application for renewal of the business license or in any report or statement required to be filed with the Tax Collector;

• (c) The business is prohibited by any Federal, State or local law or regulation, or prohibited in the particular location or zone by any law or regulation;

• (d) The applicant is found to have committed a crime involving moral turpitude which is substantially related to the business activity for which the license is being sought;

• (e) The applicant is in violation of a provision of the Artesia Municipal Code or owes taxes, fees, costs, or penalties pursuant to this chapter or any other provision of the Artesia Municipal Code;

• (f) The application is for renewal or for a new license for the period immediately following a period during which the applicant was licensed for the same business or activity and any ground for revocation as set forth in Section 3-1.505 exists.

• (Ord. 543, § 3; Ord. 12-790, § 4; Ord. 25-976, 1/12/2026)

• (a) Limitation on New Applications. If an applicant's business license application for a particular business activity has been denied, the Director shall not process a new application by that applicant for that business activity for a 12 month period after the denial unless the Director determines that the reason for the denial has been cured and no longer exists.

• (b) Appealability. The denial of an application by the Director may be appealed to the City

Council pursuant to Section 3-1.507 of this chapter. (Ord. 543, § 3; Ord. 12-790, § 4)