Azusa Municipal Code Art. I In General

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Business means any profession, trade and occupation and every kind of calling carried on for profit or livelihood.

Business license officer means the person designated by the city council to issue business licenses and permits, enforce the provisions of this chapter and perform the other duties required by this chapter.

Gross receipts means the total amount of the sales prices of all sales, the total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether such service, act or employment is done as a part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit allowed, including all receipts, cash, credits and property of any kind or nature, any amount for which credit is allowed by the seller to the purchaser 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, losses or any other expense whatsoever; provided that cash discounts allowed or taken on sales shall not be included. Gross receipts also includes the amount of any federal manufacturer's or importer's excise tax included in the price of the property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge. But gross receipts shall not include the amount of any state, city or city and county sales and use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale. Gross receipts shall apply only to transactions or business conducted within the city. For businesses that conduct operations within the city and locations outside the city, gross receipts shall be determined under article X of this chapter.

Licensee means any business or person to whom a business license has been issued by the city, including the owner, officer, employee or agent of such business.

Person means all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts business or common law trusts, societies and individuals transacting and carrying on any business in the city.

Street means and includes every street, boulevard, avenue, highway, alley and road within the city, which is indicated as such and opened to public use.

Wheeled vehicle means and includes automobile, truck, tank truck, trailer, wagon, cart and any and all other contrivances used or capable of being used as a means of transportation of persons or property that moves or rolls on one or more wheels.

Wholesale means and includes the sale of goods in gross to retailers who sell to consumers and not by retail, where not less than 75 percent of the gross business of the person engaged in business is at wholesale.

(Code 1971, §§ 5.04.010—5.04.060)

Cross reference— Definitions and rules of construction generally, § 1-2.

The purpose of this chapter is to license, for revenue or regulation, the carrying on in the city of various lawful businesses, professions, trades, callings or occupations. Where it is lawful to license for purposes of both revenue and regulation, the license under this chapter is for both those purposes. Where it is lawful to license only for regulation, the license under this chapter is for that purpose. And where it is lawful to license only for revenue, the license under this chapter is for that purpose only, and the regulatory provisions of this chapter shall not apply.

(Code 1971, § 5.08.010)

Any person required to pay a license tax for transacting and carrying on any business under this chapter shall be relieved from the payment of any license tax for the privilege of doing such business which has been required under any other city ordinance, but shall remain subject to the regulatory provisions of such other ordinance. This section shall not apply to inspection fees.

(Code 1971, § 5.08.020)

Neither the adoption of this chapter nor its superseding of any portion of any other city ordinance shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance from which this chapter is derived nor be construed as a waiver of any license or any penal provision applicable to any such violation nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.

(Code 1971, § 5.08.030)

There are imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amounts prescribed in this chapter, and it is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so or without complying with any and all applicable provisions of this chapter.

(Code 1971, § 5.08.040)

Section 18-5 of this Code notwithstanding, the rates of business licenses as set forth in this Code for the business license tax on each and every business doing business within the city for the purpose of mining, excavation and wood processing shall be increased annually commencing January 1, 1989 and the flat rate business license tax on the rental of four or more units, pursuant to section 18-703 shall also e increased annually, commencing on January 1, 2002. The percentage of change shall be the percentage increase for the year ended on the prior October 1 in the state consumer price index (for all items) as determined by the state department of industrial relations pursuant to Revenue and Taxation Code § 2212. Any adjustment made pursuant to this section shall supersede any maximum or minimum otherwise provided for in this Code.

(Code 1971, § 3.44.010; Ord. No. 00-014, § 2, 3-20-01)

No connection of electricity shall be made for any commercial location, address or unit which has been vacated by its prior occupants, unless such unit has been registered with the business license division.

(Code 1971, § 5.08.042)

A separate license must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location. Each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license. However, warehouses and distributing plants used in connection with and incidental to a business licensed under this chapter shall not be deemed to be separate places of business or branch establishments.

(Code 1971, § 5.08.050)

It is determined that a business is being conducted and a business license is required when any person shall:

(1) By use of signs, circulars, cards, telephone books, newspapers or other means advertise, hold out or represent that he is in business in the city;

(2) File a fictitious business name statement or be in possession of a resale number issued by the state board of equalization; or

(3) Deliver, distribute, supply, manufacture, sell at retail or wholesale, lease, rent, provide a service or generate revenue in any manner within the city.

(Code 1971, § 5.08.052)

(a) Nothing in this chapter shall be deemed or construed to apply to any person transacting and carrying on 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.

(b) Any person claiming an exemption pursuant to this section shall file a verified statement with the business license officer stating the facts upon which exemption is claimed.

(c) The city council shall, upon a proper showing contained in the verified statement, direct the business license officer to issue a license to such person claiming exemption under subsection (a) of this section without payment to the city of the license tax required by this chapter.

(d) The city council may revoke any license granted pursuant to this section upon information that the licensee is not entitled to the exemption as provided in this section.

(Code 1971, § 5.08.060)

State Law reference— Exemptions generally, Business and Professions Code, §§ 16000.5—16002.5.

(a) This chapter does not include or apply to farmers, poultry men or horticulturists who may sell exclusively their own produce. This exemption shall not apply to nurseries or other commercial establishments buying goods for resale as well as selling their own goods.

(b) Other persons exempted shall be as follows:

(1) If by lawful regulations of the state or of the United States the city is at any time denied the right to collect any license fee provided for in this chapter or denied the right to otherwise regulate any business or person regulated in this chapter, such person or such business shall be exempt from this chapter insofar as the collection of the license fee or the regulation of the business or person by the city is so prohibited by the state or by the United States.

(2) This chapter shall not require a license fee to be paid by any clergyman or church or religious, fraternal, charitable, benevolent or nonprofit corporation for activities carried on for religious, charitable or benevolent purposes. However, nothing in this subsection shall exempt any such person from complying with this section and article XVIII of this chapter requiring such person to obtain a permit, but without paying a license fee, from the city council or business license officer to carry on any such religious, charitable or benevolent activity.

(3) Real estate agents or brokers, the sales price of real estate sold for the account of others, except that portion which represents a commission or other income to the agency or broker, including any portion thereof to be remitted to any sales person are exempt from this chapter. As to a real estate agency or broker, the place of business of which or of whom is located outside the city, the commissions or other income included as gross receipts shall include only commissions or other income derived from the sale of real estate located within the city.

(4) Utility companies that pay a franchise fee under this Code are exempt from this chapter, except that they shall pay an annual tax of $500.00 under this section.

(Code 1971, § 5.08.070(a), (b)(1), (2), (7), (8))

Every person required to have a license under this chapter shall make application for the license to the business license officer, and upon the payment of the prescribed tax the business license officer shall issue to such person a license which shall contain the following:

(1) The name of the person to whom the license is issued;

(2) The business licensed;

(3) The place where such business is to be transacted and carried on;

(4) The date of the expiration of such license; and

(5) Such other information as may be necessary for the enforcement of this chapter.

(Code 1971, § 5.08.080)

No license issued pursuant to this chapter shall be transferable. However, if a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may, upon application therefor and paying a fee of $2.00, have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business is or is to be moved.

(Code 1971, § 5.08.090)

If a license for revenue purposes has been issued to any business by the city and the tax paid therefor under any prior ordinance and the term of such license has not expired, the license tax prescribed for the business by this chapter shall not be payable until the expiration of the term of such unexpired license.

(Code 1971, § 5.08.100)

A duplicate license may be issued by the business license officer to replace any license issued under this chapter which has been lost or destroyed, upon the licensee filing an affidavit attesting to such fact and at the time of filing such affidavit paying to the business license officer a duplicate license fee as set by the city council from time to time.

(Code 1971, § 5.08.110)

All licenses must be kept and posted in the following manner:

(1) Any licensee transacting and carrying on business at a fixed place of business in the city shall keep the license posted in a conspicuous place upon the premises where such business is carried on.

(2) Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license upon his person at all times while transacting and carrying on such business.

(3) Any licensee to whom a license has been issued for the operation of a wheeled vehicle shall be issued by the business license officer, in addition to the license certificate, a paper or metal license certificate. This certificate shall at all times during the effective dates thereof be affixed to the windshield, for a sticker, and on the rear of the vehicle in a conspicuous place, for a metal license plate.

(Code 1971, § 5.08.120)

(a) Generally. Whenever the license tax is determined or calculated upon a basis of the number of employees, partners, associates or persons engaged in the applicant's business or occupation, the procedure set out in this section shall be followed at the time of applying for a license.

(b) Calculation of number of employees. When the license tax is determined upon the basis of the number of employees, partners, associates or persons engaged in that business or occupation, the procedures of this subsection shall apply in estimating the average number. If the applicant has not previously been engaged in business in the city or has been so engaged for less than one year, he shall file with the business license officer a sworn statement setting forth the estimated average number of persons he intends to employ in connection with the operation of the business during the ensuing year, and such estimated average number shall be used in arriving at the amount of license fee to be paid.

(c) Average number employed in past year. If the applicant has been engaged in business in the city continuously for one year or more, he shall file with the business license officer a sworn statement showing the average number of persons employed by or associated with him in connection with the business during the year prior to the date to making such application. The statement shall be used by the business license officer in determining the amount of license fee to be paid for the next ensuing year. In determining such average the number of persons so associated with or employed by the applicant on the last business day of each calendar month shall be added together and the sum thereof divided by 12.

(d) Gross receipts calculation. Whenever the license tax is determined or calculated upon a basis of the gross receipts from the conduct of business, the provisions of this subsection shall apply. The license tax for the first year on a new business shall be a flat tax of $90.00 for five employees or less and $150.00 for more than five employees in addition to any gross receipts tax due and payable upon renewal, transfer, or expiration of the business license. Home occupations shall pay a first-year license tax of $50.00 in addition to any gross receipts tax due and payable and upon renewal, transfer, or expiration of the business license. Any business for which a previous business license has been issued and which has not been renewed within six months of expiration shall pay a license tax based on a first year license tax. Thereafter, the tax upon every transfer, expiration, and renewal of the business license shall be based on the gross receipts of the business for the immediately preceding year for which the business license was issued. The business license tax is due and payable at the time the first application for a license is filed, upon the application for the transfer of a license, at the time an application is filed for renewal of the license, or within ten calendar days of the business license expiration, whichever is earlier. Thereafter, each license shall be obtained annually by completing a notice of renewal and submitting the appropriate information and payment of any tax and fees due. Any application for renewal or transfer shall be accompanied by a sworn statement of the amount of gross receipts.

(e) Obtaining information, recordkeeping and audits. The business license officer may obtain any and all information appropriate to determine the amount of the business license tax or fee due and may request and audit such information as set out in section 18-18. Each person subject to any tax in this chapter shall retain, for at least four years, records documenting the information upon which any applicable tax is calculated and which shall support the calculation of tax reflected on that person's return.

(f) Confidentiality. The business license officer, to the extent allowed by law, shall retain as confidential any tax statements, returns and receipts submitted or provided under this chapter; any records required to be submitted by a taxpayer under this chapter; and any business data disclosed to the city as a result of any tax audit under this chapter.

(g) Determination of tax by assessment. If a business fails to apply for a city business license prior to conducting business within the city and after notification by the business license officer still fails to comply with this chapter, the business license officer shall procure such facts and information as he is able to obtain upon which to base an assessment of any tax imposed by this chapter and payable by any business that has failed to make such application and remittance. The business license officer shall proceed to determine and assess against such business the tax, interest and penalties provided for by this chapter and shall give a notice of the amount so assessed by serving a notice of such amount personally or by depositing it in the United States mail, postage prepaid, addressed to the business so assessed at its last known address. The owner or operator may within ten working days after the serving or mailing of such notice make application in writing to the business license officer for a hearing on the amount assessed. If application for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the business license officer become final and conclusive and immediately due and payable. If such application is made, the business license officer shall give not less than five working days' written notice in the manner prescribed in this subsection to the business, its owner or operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties. The hearing shall be conducted by the business license officer. At such hearing, the business owner or operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing, the business license officer shall determine the tax to be remitted and shall give written notice to the owner or operator in the manner prescribed in this subsection of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after 15 working days unless an appeal is made.

(h) Appeal. Any business owner aggrieved by a decision of the business license officer with respect to the amount of such tax, interest and penalties, if any, may appeal to the city council by filing a notice of appeal with the city clerk within 15 working days of the serving or mailing of the determination of tax due. The council shall fix a time and place for hearing such appeal, and the city clerk shall give notice in writing to such owner or operator at his last known address. The findings of the council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in subsection (g) of this section for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(Code 1971, § 5.08.130; Ord. No. 92-014, § 1, 5-4-92; Ord. No. 00-013, § 1, 3-20-01)

The correctness of all sworn statements and other documents upon which the license taxes or other taxes are calculated pursuant to this chapter shall be subject to audit and verification by the business license officer or by his properly authorized deputies or assistants, who are authorized and empowered to inspect and audit the books and records of any and all persons licensed to carry on any business or required to pay any taxes as specified in this chapter. No sworn statement or other document filed with the city in connection with the calculation of such taxes shall be conclusive as to the matters set forth therein nor shall the statement preclude the city from collecting by appropriate action such sum as is actually due and payable pursuant to this chapter. Any licensee or taxpayer refusing to exhibit the necessary books and records, as required by the business license officer or his deputy, shall be guilty of a misdemeanor.

(Code 1971, § 5.08.140)

If any person fails to file any statement required in this chapter within the prescribed time, the business license officer may determine the amount of license tax due from and payable by such person, by means of such information as he may be able to obtain. The business license officer shall give notice of the amount assessed by serving it personally or by depositing it in the United States post office in the city, postage prepaid, addressed to the person so assessed at his last known address. Such person may within ten days after the mailing or serving of such notice make application in writing to the business license officer for a hearing on the amount of the license tax. If such application is not made within the time prescribed, the assessment shall become final, and if such application is made within the time prescribed, the business license officer shall cause the matter to be set for hearing before the city council. The city council shall consider all evidence produced, and the amount of the license tax so determined by the city council shall be the amount due and payable for such license.

(Code 1971, § 5.08.150)

No license shall be issued by the business license officer for any of the businesses set forth in sections 18-696, 18-698, 18-136, 18-10, 18-63, 18-811, and article II of chapter 82 or for any place of amusement, exhibition or entertainment for which a license is required under this Code without the approval of the city council. The application shall be filed with the business license officer upon such forms as the business license officer may prescribe. The city council may impose such terms, conditions and restrictions upon the operation, management and conduct of these businesses, not in conflict with any paramount law, as the council may deem necessary or expedient for the protection of the health, safety and welfare of the city and its inhabitants.

(Code 1971, § 5.08.160)

(a) Every license granted under this chapter or any ordinance is granted and used by all parties receiving or using the license subject to the express condition that the city council may revoke the license at any time when it is determined by the city council that:

(1) Any state of facts exists upon which it would be authorized to deny an application for such license or permit, if required;

(2) The person to whom such license was issued or any of his agents, servants or employees or any other person in charge of or employed about the business for which the license was issued has violated any of the conditions of the license or permit, if any, or terms of this Code or of any law of the state;

(3) The license or permit was obtained by fraudulent representations;

(4) The holder thereof is an unfit person to be trusted with the privileges granted by the license or has conducted his business in an immoral or disorderly manner or has failed to make every reasonable effort to maintain order among his customers and patrons and to prevent violations of law by them; or

(5) The business has been so conducted as to be a public nuisance.

(b) No license shall be revoked without giving the holder thereof an opportunity to appear before the city council and be heard in his own behalf. The city council shall cause a notice of such hearing to be given to the holder of such license at a time not less than five days before the hearing. At the time set for the hearing or at the date to which the hearing may be continued by the city council, the holder of the license may be heard and may present any facts to show why such license shall not be revoked, and the city council shall hear statements from other persons who may attend the hearing and present reasons why the license should or should not be revoked. The city council may, if it so desires, place under oath and question any person before it. The city council may end the hearing when it is convinced that no public good will result from its continuance. At the end of the hearing or at any time within 30 days thereafter, the city council shall determine from the facts produced at the hearing and from any other facts in its possession whether or not the license should be revoked and shall make its order accordingly and may make such order conditional upon the doing or not doing of any act by the holder of the license or his agents or servants which the city council deems for the public good.

(c) On the revocation of the license no part of the money in the hands of the city shall be returned, but such license fee shall be forfeited to the city. Notice of such revocation shall be given to the license holder by the business license officer.

(d) A license may be suspended for such time and subject to such conditions as the city council may impose in the same manner and for the same reasons that a license may be revoked.

(e) The city manager shall also have the power to suspend any license upon his determination that grounds for revocation exist, pending determination by the city council that the license should be revoked or suspended.

(Code 1971, § 5.08.170; Ord. No. 98-09, § 2, 6-15-98)

(a) In addition to the grounds stated in any other section of this Code, the city council, after a hearing as provided in section 18-21, shall suspend for a period of not less than ten days nor more than 60 days a towtruck operator business license or an ambulance operator business license granted pursuant to this chapter if it finds that any such licensee, his agent, employee, general manager or person who is exercising managerial authority of or on behalf of the licensee has been convicted of violating Business and Professions Code § 6152.

(b) In addition to the grounds stated in any other section of this Code, the city council, after a hearing as provided in section 18-21, shall revoke a towtruck operator business license granted pursuant to this chapter if it finds that any such licensee, his agent, employee, general manager or person who is exercising managerial authority of or on behalf of the licensee or any combination of such persons has been convicted of violating Business and Professions Code § 6152 more than once in any 12-month period.

(Code 1971, § 5.08.171)

No refund shall be made on any license issued in accordance with this chapter unless the conducting, managing or carrying on of such business as provided in such license shall become unlawful, either by act of the city council or by act of some other legislative body having jurisdiction therein or when payments thereon have been erroneously made by the licensee. No refund of overpayment of taxes imposed by this chapter shall be allowed in whole or in part unless a claim for refund is filed with the business license officer within a period of 24 months from the last day of the calendar month following the permit for which the overpayment was made, and all such claims for refund of the amount of overpayment must be accompanied by a sworn affidavit, with supporting documents, and filed with the license office. Upon filing of such a claim and the license office determining the validity of the request, a refund may be made in an amount not to exceed the amount overpaid.

(Code 1971, § 5.08.180; Ord. No. 93-07, § 1, 5-3-93)

(a) No person shall be entitled to the issuance of a license to carry on any unlawful business or any business in any building or premises in which such business is not permitted under the building code or fire code or this Code or any business in any zone or location in which such business is not permitted under chapter 86 of this Code, and no such license shall knowingly be issued by the business license officer or any other city officer.

(b) Any license issued to a person who is not entitled thereto under this section shall be null and void.

(c) The payment of a license tax fixed by this chapter and its acceptance by the city and the issuance of the license to any person who is not entitled thereto under this section shall not entitle the holder thereof to carry on any business in or on any building or premises designated in such license if such building or premises do not qualify for such license under the building code or fire code or is situated in a zone or locality in which the conduct of such business is in violation of any zoning or other law or ordinance.

(Code 1971, § 5.08.190)

(a) The business license officer shall enforce each and all sections of this chapter, and the chief of police shall render such assistance in the enforcement of this chapter as may from time to time be required by the business license officer and the city council.

(b) The business license officer, in the exercise of the duties imposed upon him under this chapter, shall examine or cause to be examined all places of business in the city to ascertain whether this chapter has been fully complied with.

(c) The business license officer or any police officer shall have the power and authority to enter, free of charge and at any reasonable time, any place of business required to be licensed in this chapter and demand the exhibit of the license certificate. Any person having such license certificate issued in his possession or under his control who willfully fails to exhibit the license certificate on demand shall be guilty of a misdemeanor and subject to the penalties provided for by this Code.

(Code 1971, § 5.08.200)

The amount of any license tax and penalty imposed by this chapter shall be deemed a debt to the city, and any person carrying on any business without first having procured a license from the city to do so shall be liable to an action in the name of the city in any court of competent jurisdiction for the amount of license tax and penalties imposed on such business.

(Code 1971, § 5.08.210)

The conviction and fine or imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business nor shall the payment of any license tax prevent a criminal prosecution for the violation of this chapter. All remedies prescribed under 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 this chapter.

(Code 1971, § 5.08.220)

(a) The penalty for failure to file a tax return under this chapter shall be five percent per month of the tax due, up to a maximum of 25 percent of the amount of the tax. For each month that an annual tax or other obligation due the city pursuant to this chapter remains unpaid following the date such tax or other obligation is due, there shall be added a penalty of 15 percent of the tax due for each month that payment is delinquent beginning on the tenth day of each month after the due date thereof. For failure to pay a monthly, weekly or daily tax when due, the business license officer shall add a penalty of 15 percent of the tax on the day following the due date thereof and for each day, week or month thereafter. A maximum penalty of 100 percent shall be paid the fifth month following the due date. The amount due in penalties may be abated or waived for reasonable cause, other than willful neglect, at the discretion of the business license officer. Penalties shall be collected in the same manner as the taxes and other obligations pursuant to this chapter and shall not exceed 100 percent of the license tax or fee due.

(b) Interest. In addition to the penalties imposed, any business which fails to remit any tax imposed by this chapter shall pay interest at the maximum rate allowable by law per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(c) Failure to provide records as requested may result in a penalty of $35.00 or 15 percent of the tax, whichever is higher, for each month that the records are not provided beginning on the tenth day of each month after the due date thereof. The maximum penalty under this subsection shall be 50 percent of any tax also due.

(d) Penalties merged with tax. Every penalty imposed and such interest as accrues under this section shall become a part of the tax required in this chapter to be paid.

(Code 1971, § 5.08.230; Ord. No. 93-07, § 2, 5-3-93)

The revenues collected from the taxes imposed and levied by this chapter shall be deposited in the general fund of the city.

(Code 1971, § 5.08.240)

Any business that fails to apply for, or renew an existing business license, and all usual avenues of collection have been exhausted in obtaining payment, shall pay all costs incurred by the city in the collection of the amount due, in addition to all license fees, penalties and interest charges. Such charges shall be confirmed and recovered in accordance with section 14-421 et seq. of the Azusa Municipal Code.

(Ord. No. 93-07, § 3, 5-3-93)

Notwithstanding any provision in this Code to the contrary, any business, operation or use that cannot be conducted or carried out without being in violation of state or federal law shall be prohibited in all planning areas, districts, or zones within the city.

(Ord. No. 07-01, § 1, 1-2-07)