Article 4 — General Duties of City's Tax Collector

• (a) Generally. The Tax Collector shall be empowered to issue all necessary rules and regulations to implement the provisions of this article and to do all things necessary and proper to effectuate the purpose and intent of this article.

• (b) Determination of Business Classification. The Tax Collector shall make all determinations of the class of business in which an applicant for a business license is deemed to be engaged under this chapter.

  • (1) Application for Reclassification. In the event an applicant disagrees with the determination of the Tax Collector as to the class of business in which the applicant is engaged, the applicant may file an application for reclassification with the Tax Collector, on the form prescribed by the Tax Collector. The application shall set forth with specificity the facts upon which it is based. Upon receipt of a reclassification application, the Tax Collector shall investigate and review the matter and shall either affirm the original classification or assign a new classification and shall notify the applicant of the decision in writing.

  • (2) Limitation on Applications. The Tax Collector may refuse to accept an application for reclassification from an applicant who has applied for reclassification within the previous 12 months if the application fails to state material and relevant facts which were not and could not have been presented in the previous reclassification application.

  • (3) Finality of Director's Determination. The decision of the Director on an application for reclassification shall be final.

• (c) Apportionment of Taxes. Where, by reason of the provisions of the Constitution of the United States or the Constitution of the State of California, the business license tax imposed by this article cannot be enforced without there being an apportionment according to the amount of business done in the City, or in the State of California, as the case may be, the Tax Collector may make such rules and regulations for the apportionment of the tax as are necessary to comply with constitutional requirements. Such rules and regulations shall be approved by the City Attorney prior to becoming effective.

• (d) Deposit of Taxes and Fees with City Treasurer. The Tax Collector shall, at the end of each business day, deposit with the City Treasurer all business license taxes, and penalties thereon, as authorized by this article, which were collected during that business day.

• (Ord. 543, § 3)

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

(Ord. 543, § 3)

The Tax Collector shall prepare and issue a license to every applicant who pays the business license tax required by this article unless the applicant has been denied a business license pursuant to Section 3-1.316. When the required license tax has been paid, the Tax Collector shall deliver the original license to the licensee named therein and shall retain a copy thereof on file with the City. Each license shall designate the amount of the tax paid, the date of expiration, the name of the licensee, the type of business licensed, and, if a fixed place of business, the address at which such business is to be conducted.

(Ord. 543, § 3)

No license tax shall be refunded unless it is determined by the Tax Collector that the tax has been paid in error, computed incorrectly, overpaid, or collected illegally. No refund shall be made unless a request is received by the Tax Collector within one year after the payment of the license tax.

(Ord. 543, § 3)

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

(Ord. 543, § 3)

In addition to his or her other powers, the Tax Collector shall have the further power, with the consent of the City Council, to compromise any claim as to the amount of the license tax due. (Ord. 543, § 3)

• (a) Inspection. The Tax Collector may inspect all places of business in the City to ascertain whether there has been compliance with the provisions of this article. The Tax Collector, all police officers of the City, and any other duly authorized agent or authorized employee of the City, shall be authorized to examine the books and records of all persons licensed to do business for the purpose of ascertaining the amount of license taxes required to be paid. Such persons shall also be authorized to enter, at any reasonable time, any place of business required to be licensed by this article, to demand the production of the business license, books, records and other documents, and to enforce the provisions of this article and of Article 2.

• (b) Licensee's Duty to Maintain Records. Every person subject to the provisions of this article shall maintain complete records concerning all personnel employed in the business conducted by such person, including payroll records, personnel records, withholding tax records, and all records and reports as to labor, wages, or personnel made to, or required by, all governmental regulatory agencies. Such records shall be maintained for a period of not less than three years. No person required to keep such records shall refuse to allow any authorized representative of the Tax Collector to inspect said records at reasonable times and places, and in no event later than 72 hours after an inspection request has been made.

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

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

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

• (f) (Reserved)

• (g) Prompt Judicial Review. Any interested person or entity may seek judicial review of a final City decision made pursuant to this article in accordance with the provisions of Section 1-2.08 of the Artesia Municipal Code.

• (Ord. 543, § 3; Ord. 564U, § 4)

Article 5

Modification, Suspension and Revocation

Any business license issued by the City may be conditioned, modified, suspended or revoked for cause by the City Council pursuant to Section 3-1.501 through 3-1.506. (Ord. 543, § 3)

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

(Ord. 543, § 3)

If the Tax Collector determines that a hearing by the City Council is warranted, written notice of the hearing shall be given to the licensee not less than 10 days prior thereto. (Ord. 543, § 3)

• (a) Right to Witnesses. The licensee or legal representative of the licensee shall have the right to call witnesses to testify on behalf of the licensee.

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

• (c) Decision. The City Council shall issue its decision in writing. The decision shall contain a determination of the issues presented.

• (Ord. 543, § 3)

After hearing, the City Council may, in its sole and absolute discretion, condition, modify, suspend or revoke a business license for any business activity required to be licensed under this chapter if the City Council finds that one or more of the following conditions exist:

• (a) Business Activities Involving First Amendment Activities.

  • (1) That the building, structure, premises or equipment used in the conduct of the business does not comply with any health, zoning, fire, or building and safety laws of the State or ordinances of the City;

  • (2) That the licensee, or any employee, agent or manager of the licensee, has violated any Federal or State statute or any ordinance or regulation of the City in the course of exercising any rights under the business license which is being considered for revocation;

  • (3) That the licensee, or any employee, agent or manager of the licensee, has knowingly or should have known that they made any false, misleading or fraudulent statement of material fact in the application for the license, or in any report or statement required to be filed with the Tax Collector or the City Council;

  • (4) That the licensee has failed or refused to notify the Tax Collector of any change in facts as required by this chapter within five days after such change;

  • (5) That the licensee, or any employee, agent or manager of the licensee, has violated any conditions or restrictions of the business license, including failure to allow an inspection of the business premises or the property pursuant to this Code;

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

  • (7) That the licensee has unpaid State or local fees, fines, costs, or taxes.

• (b) Business Activities Not Involving First Amendment Activities.

  • (1) That the building, structure, premises or equipment used in the conduct of the business does not comply with any health, zoning, fire, or building and safety laws of the State or ordinances of the City;

  • (2) That the licensee, or any employee, agent or manager of the licensee, has violated any Federal or State statute or any ordinance of the City in the course of exercising any rights under the business license which is being considered for revocation;

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

• (4) That the licensee, or any employee, agent or manager of the licensee, has knowingly or should have known that they made any false, misleading or fraudulent statement of material fact in the application for the business license, or in any report or statement required to be filed with the Tax Collector or the City Council;

  • (5) That the licensee has failed or refused to notify the Tax Collector of any change in facts as required by this chapter within five days after such change;

  • (6) That the licensee, or any employee, agent or manager of the licensee, has violated any conditions or restrictions of the business license, including failure to allow an inspection of the business premises or the property pursuant to this Code;

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

  • (8) That the licensee, or any employee, agent or manager of the licensee, has violated any rule or regulation adopted by the City Council or any other governmental agency relating to the licensee's business;

• (9) That the licensee has unpaid State or local fees, fines, costs or taxes.

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

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

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

• (c) Whenever a business license is suspended or revoked, the Tax Collector shall take into possession the business license for the subject business activity. The licensee shall surrender the business license and license stickers, or similar evidence of a license, to the Tax Collector.

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

• (Ord. 543, § 3)

• (a) Filing. Unless an alternative procedure is specified in this chapter regarding an appeal from a decision of the Tax Collector, any person aggrieved by any decision of the Tax Collector may file with the Tax Collector a notice of appeal to the City Council within 10 days of the date of mailing of the decision. The notice shall be signed by the appellant or the legal representative of the appellant and shall be sufficient if it states that the appellant appeals from a specified decision or a particular part thereof. The notice of appeal shall state the grounds upon which the appeal is based and any argument, evidence or legal points and authorities in support of those grounds.

• (b) Effect of Notice of Appeal. If a timely appeal is filed, the effect of the Tax Collector's decision shall be stayed pending the City Council's resolution of the matter unless the Tax Collector specifically finds that the public health and safety will be endangered by any such stay.

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

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

• (Ord. 543, § 3)

Upon receipt of a timely notice of appeal and the deposit of estimated costs, the Tax Collector shall notify the City Clerk of the request for appeal. The Tax Collector shall give not less than 10 days' prior written notice to the appellant, and to the licensee if other than the appellant, of the date, time, and place of the hearing.

(Ord. 543, § 3)

• (a) Transmission of Documentation. Upon the filing of a notice of appeal and the deposit of estimated costs, the Tax Collector shall transmit to the City Council the documentation on the matter. Copies of the documentation shall also be delivered to the appellant and to the licensee, if other than the appellant.

• (b) Conduct of Hearing. Upon receipt of the transcript required by Subsection (a), the City Council shall conduct the appeal. To the extent reasonably feasible, the hearing on the appeal shall be conducted not later than 30 days after the filing of a notice of appeal. The City Council may, at its discretion, receive new evidence or testimony which is not part of the record upon a showing that it could not, in the exercise of due diligence, have been presented at the time of the Tax Collector's decision. The City Council may hear and consider additional argument and points and authorities of law prior to rendering any decision on the appeal.

• (c) City Council Action. Upon reviewing the evidence and considering the parties' arguments and any points and authorities of law submitted, the City Council may either:

  • (1) Render a decision upholding, reversing, or modifying in any respect the decision of the Tax Collector; or

(2) Remand the matter to the Tax Collector with directions. (Ord. 543, § 3)