Beverly Hills Municipal Code Art. 2 Business Tax

A. Registration Required: No person shall transact, engage in, carry on or permit the operation of any business in the city without first registering and obtaining a current valid registration certificate from the department of finance administration. A violation of this section or of any other provision of this article is unlawful and constitutes a misdemeanor as provided in title 1, chapter 3, article 1 of this code.

B. Term Of Registration: Each registration, unless otherwise specified in this article, shall expire annually on December 31.

C. Revenue Measure; Tax Imposed: A business tax is hereby imposed in the amount prescribed in the applicable section. The required business tax is imposed pursuant to the taxing power of the city of Beverly Hills solely for the purpose of obtaining revenue. A business tax must be paid by every person engaged in any business or occupation conducted within the city of Beverly Hills.

D. Regulatory Permit May Also Be Required: Where this code requires a regulatory permit to engage in a specific type of business or activity, approval and issuance of a regulatory permit for such business or activity shall be a prerequisite to commencement of the business or activity.

E. Registration Certificate: A registration certificate shall be prepared and issued by the department of finance administration when the following conditions have been met:

1. The registration form has been completely filled out and signed by the owner, agent, corporate officer or other duly appointed and authorized person.

2. All taxes, penalties and interest owing have been received by the department of finance administration.

3. All required regulatory permits have been approved and issued.

F. Nontransferability Of Registration Certificate: Registration certificates issued pursuant to this article shall not be transferable by the registrant to any other person or registrant, nor shall any tax paid by any registrant under the provisions of this article be applied in whole or in part to the payment of tax due, or to become due, from any other person or registrant. This subsection shall not apply to a change in ownership of the registrant where the same business continues to be conducted thereafter.

G. Identification Sticker: Whenever the business tax for a business imposed under the provisions of this article is measured by the number of vehicles, devices, machines, or other pieces of equipment used, or whenever the business tax is measured by the gross receipts from the operation of coin operated devices, the department of finance administration shall issue, in addition to and concurrent with the registration certificate, for each tax period for which the business tax has been paid, one identifying sticker or symbol for each vehicle, device, machine or for each coin operated device used in a business where the tax is measured by the gross receipts from such coin operated devices. (Ord. 96-O-2255, eff. 3-22-1996)

A. Nothing in this article shall be construed as requiring the payment of any tax for engaging in a business or the doing of an act when such payment would constitute an unlawful burden upon or an unlawful interference with interstate or foreign commerce, or which payment would be in violation of the constitution of the United States or the constitution of the state of California.

B. Subject to first applying for and obtaining a business tax registration certificate with the classification of exempt from the city, the following persons and activities are exempt from taxation:

1. Nonprofit or charitable organizations including, without limitation, fraternal, educational, civic, state, military, county and municipal organizations or associations (hereafter collectively "nonprofit entities"), which have the appropriate tax designation or classification from federal and state taxing authorities.

2. Religious institutions which have the appropriate tax designation or classification from federal and state taxing authorities.

3. Credit unions which have the appropriate tax designation or classification from federal and state taxing authorities.

4. Family daycare homes licensed pursuant to state law and as defined in section 10-3-100 (Words Defined). Family daycare homes shall not be required to file a request for exempt registration under section 3-1-203 (Filing of Exemption Required).

C. Notwithstanding the provisions of subsection B of this section, exempt entities shall not be exempt from the payment of a tax in their sponsorship or participation in events involving the theater or arts, dances, concerts, lectures, sports or similar activities unless all of the net proceeds, defined for these purposes as the net amount derived from revenues of the event less the direct costs of the event, derived from the event are used for the operation of these entities or institutions, or for some other nonprofit charitable or benevolent purpose.

D. No person engaged in business in the city shall be entitled to a tax exemption by virtue of the sponsorship or participation of any nonprofit entity or religious institution (regardless of any revenue sharing or other form of compensation) in an otherwise taxable activity or event, including, without limitation, those described in subsection B of this section.

E. An exemption granted for any activity set forth in subsection B of this section is void and payment of the entire business tax is required if said activity was conducted in such a manner that the city would not have granted an exemption had same been accurately described or fully disclosed in the application for an exemption. Furthermore, the failure to use net proceeds in the manner required by subsection C of this section shall result in any exemption being void and the entire business tax being immediately due. All tax obligations arising by reason of this section shall be immediately due and payable along with any penalties and interest.

F. For the purposes of this section, city purchases shall be exempt from the calculation of the required business tax as follows:

1. Whenever the measure of the business tax is based on gross receipts, the person subject to the business tax may exclude from the business tax calculation the dollar value of purchases made directly by the city of Beverly Hills from the person subject to the tax.

2. Whenever the measure of the business tax is based on gross payroll, number of persons employed, number of vehicles, devices, or articles of equipment used, the person subject to the business tax may exclude from the business tax calculation the dollar value of the payroll, hours related to the persons employed, hours related to the number of vehicles, devices, or articles of equipment used in providing goods or services related to purchases made directly by the city of Beverly Hills from the person subject to the tax.

(Ord. 96-O-2255, eff. 3-22-1996; Ord. 24-O-2894, eff. 6-7-2024)

A. Any person claiming an exemption from these tax requirements, including exemptions claimed under subsection 3-1-202F of this article, shall register in the manner prescribed in subsection 3-1-201A, "Registration Required", of this article, and within the time requirements of section 3-1-206, "Due Dates", of this article, as classification Z, exempt business or exempt business transactions.

B. A request for exempt registration from these tax requirements shall be granted by the director of finance administration only when the requesting person fully and completely meets the requirements of section 3-1-202 of this article.

C. A request for exempt registration from these tax requirements shall be denied by the director of finance administration if the registration form is incomplete or proper documentation of tax designation or classification from federal or state taxing authorities is not included or if the person fails to fully and completely meet the requirements of section 3-1-202 of this article. (Ord. 96-O-2255, eff. 3-22-1996)

No registration or payment of tax required by this article shall be construed as authorizing any person to conduct an illegal business or a legal business in an illegal manner. (Ord. 96-O-2255, eff. 3-22-1996)

The following words and phrases whenever used in this article shall be construed as defined in this section, unless from the context a different meaning is intended or unless a different meaning is specifically defined and more particularly directed to the use of such words or phrases:

AGENT, AGENCY OR BROKER: A person or business, who by authority acts as an intermediary, representative, or agent, on behalf of, or in the place of another person in the purchase or sale of insurance, real or personal property, stocks, bonds, securities, notes, negotiation of contracts for personal or professional services or appearances or other similar items of value and receives compensation, either directly or indirectly, in the form of commission or otherwise for services rendered. Notwithstanding the preceding sentence, the definition of agent, agency or broker does not include a "real estate salesperson" as defined in this section.

APARTMENT HOUSE: A building, or portion of a building, which is designed, built, rented, leased, let, or hired out to be occupied, or which is occupied, as the home or residence of three (3) or more families.

BUSINESS: Any occupation, activity, enterprise, profession, trade, or undertaking of any nature conducted or engaged in, or ordinarily conducted or engaged in, with the object of gain, benefit or advantage, whether direct or indirect, to the taxpayer or to another person. The term shall include operations of subsidiary or independent entities conducted for the benefit of others and at no profit to themselves, including nonprofit businesses and trade associations. A person shall not be deemed to be engaged in business solely by reason of receipt of dividend or interest income from passive investments.

BUSINESS CLASSIFICATION: The class or type of business activity conducted within the city of Beverly Hills as determined by the director of finance administration or the director's designates.

BUSINESS TAX: The tax imposed upon a person engaged in business within the city of Beverly Hills and is calculated by multiplying the measurement focus of the businesses classifications by the tax rate for the businesses classification.

COMMERCIAL REAL PROPERTY: All real property, including improvements thereto, of any kind or nature which is owned, held, used, or operated for commercial or industrial purposes but shall not include the leasing or rental of real property for residential purposes.

EMPLOYEE: Means and includes any individual who qualifies as an employee within the meaning of division 4, part 1, chapter 2, article 2, of the California Labor Code and any individual in the service of an employer, under an appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed, and includes, but is not limited to, all of the enumerated categories in subsection (a) through (f) of California Labor Code section 3351, regardless of whether workers' compensation benefits pursuant to division 4, part 1, section 3200 et seq., of the California Labor Code are required to be paid. Nothing herein shall be deemed to incorporate any provisions from said Labor Code relating to scope of employment. The Labor Code provisions in effect at the time this ordinance is effective shall apply.

ENGAGED IN BUSINESS: The conducting, operating, managing, participating in or carrying on, of a business by a person whether in the capacity of an owner, principal, partner, officer, agent, representative, broker, employee, servant, independent contractor, lessee or other person.

FINANCIAL INSTITUTION: An institution as defined by the California Financial Code, section 31041.

GROSS RECEIPTS: Except as otherwise specifically provided, the term "gross receipts" as used in this article shall mean the gross receipts of the calendar year and is defined as follows:

The total amount of the sales price 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 of 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, without limitation, all receipts, cash, credits, forfeited or retained deposits of any kind and property of any kind or nature, in any amount for which credit is allowed by the seller to the purchasers without any deductions 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. Gross receipts shall also include 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.

Excluded from gross receipts shall be:

A. Cash discounts allowed and taken on sales;

B. The value of property accepted as part of the purchase price for subsequent resale;

C. Any California state, city or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

D. Any city of Beverly Hills transient occupancy tax required to be included in or added to the price of a room and collected from a transient;

E. Such part of the sales price of property returned by the purchaser upon the recision of the contract or sale as is refunded either in cash or by credit;

F. Deposits which by law or contract must be refunded and are actually refunded;

G. Collections for others when the business is acting as an agent or trustee to the extent that payments are made to those for whom collected;

H. The cash value of sales, trades, or transactions between departments or units of the same business; and

I. The amount of gross receipts which has been the measure of a business tax paid to any other city.

HOTEL, MOTEL OR ROOMING HOUSE: Any building or portion thereof designed or used for lodging persons for a period of less than thirty (30) consecutive days. Hotels, motels and rooming houses shall include, without limitation, any establishment held out to the public as a hostel, inn, time share project, tourist court, or motel, but shall not include hospitals or governmental buildings where persons are detained under legal restraint, such as jails or prisons.

MEASUREMENT FOCUS: The measurement of a business's activities within the city through the use of a standard designated by this article for each business classification. Measurement focus includes such measures of business activity as gross receipts, gross payroll, gross operating expenses, number of vehicles, machines, devices or articles of equipment used, or the number of persons employed.

NUMBER OF NONPROFESSIONAL PAYROLL HOURS; PROFESSIONAL BUSINESS CLASSIFICATIONS: The total number of nonprofessional payroll hours recorded, including, but not limited to, regular, overtime, part time, vacation, compensated absences, and all other hours for which compensation of any form is provided, of nonprofessional persons employed in the registrant's business within the city of Beverly Hills in the previous calendar year.

NUMBER OF PAYROLL HOURS; NONPROFESSIONAL BUSINESS CLASSIFICATIONS: The total number of payroll hours recorded, including, but not limited to, regular, overtime, part time, vacation, compensated absences, and all other hours for which compensation of any form is provided, of persons employed in the registrant's business within the city of Beverly Hills in the previous calendar year.

NUMBER OF PROFESSIONAL AND SEMIPROFESSIONAL PAYROLL HOURS; PROFESSIONAL BUSINESS CLASSIFICATIONS: One of the following:

A. Where the professional business being registered bills its clientele based on total professional and/or semiprofessional hours of service provided, the total number of professional and semiprofessional hours charged to client accounts, whether compensation of any form whatsoever has been received, in the previous calendar year.

B. Where the professional business being registered does not bill its clientele based on total professional and/or semiprofessional hours of service provided, the total number of professional and semiprofessional payroll hours recorded, including, but not limited to, regular, overtime, part time, vacation, compensated absences, and all other hours for which compensation of any form is provided, of professional and semiprofessional persons employed in the registrant's business within the city of Beverly Hills, in the previous calendar year.

PERSON: Any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, domestic or foreign corporations, associations, syndicates, partnerships of every kind, Massachusetts business or common law trusts, societies, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise transacting and carrying on any business in the city other than as an employee.

PROFESSIONAL: Any person who engages in an occupation of technical expertise which generally requires a higher education and certification by a governmental agency.

PUBLIC UTILITY: Any person furnishing the public with communications, water, light, gas, heat, power, or other public utilities or services subject to regulation by the public utilities commission of the state.

REAL ESTATE SALESPERSON: A person who, pursuant to Business and Professions Code section 10000 et seq., or its successor, is licensed as a salesperson, or is licensed as a broker and is acting in the capacity of a salesperson under a written agreement with a broker, and for compensation or in expectation of a compensation undertakes activities of a salesperson.

REGISTER: To complete, execute and file a city approved application with the department of finance administration by each person prior to the commencement of business operation and the payment of all required taxes and any penalties and interest. This definition shall include any reference to "registering" and "registration".

REGISTRANT: A person to whom a registration certificate has been issued by the department of finance administration.

REGISTRATION CERTIFICATE: A document issued by the department of finance administration to evidence the satisfactory completion of registration for a specified period of time.

SEMIPROFESSIONAL: A person who assists or studies under a professional, either as an apprentice or employee, or one who participates in the operation of a professional occupation as a technical employee.

TAX RATE: The rate of taxation established for each business classification. (Ord. 96-O-2255, eff. 3-22-1996; amd. Ord. 96-O-2256, eff. 4-5-1996; Ord. 05-O-2467, eff. 4-16-2005; Ord. 05-O-2467, eff. 4-16-2005)

All Business Taxes shall be paid to the Department of Finance Administration in lawful money of the United States and taxes required hereunder shall be received in advance by the Department of Finance Administration except where otherwise specifically provided, and shall be due and payable at the following times:

A. Annual Business Taxes: On January 1 of each calendar year, except that the Business Tax for real estate salespersons shall be due quarterly as follows: April 1, July 1, October 1 and January 1.

B. Newly Established Business: On or before the first day of operation in the City.

C. Construction Project Taxes: On or before the first day work commences on the project.

D. Taxes Arising From Assessment: On the date established by subsection 3-1-213B of this chapter.

E. Taxes Arising From Amendments To This Article: When a person first becomes subject to Business Tax by reason of an amendment of this article, or because of such an amendment, becomes subject to Business Tax under a section not previously applicable to such person or on a basis not previously applicable to such person, any new or additional tax required to be paid by reason of this article, as so amended, shall be due and payable upon the effective date of the amending ordinance unless an operative date different from the effective date of the amendment is specified therein. (Ord. 96-O-2255, eff. 3-22-1996; amd. Ord. 05-O-2467, eff. 4-16-2005)

A. Delinquent Dates: Unless otherwise specifically provided for in other provisions of this article, all Business Taxes required to be paid thereby shall be deemed delinquent if not received on or before the close of business thirty (30) calendar days after the date the tax first became due.

B. Penalties:

1. Initial Delinquency: Any person who fails to pay the required tax by the date stated in subsection A of this section shall pay a penalty on the first calendar day of the first day that the tax is delinquent and on each subsequent calendar day, equal to one percent (1%) of the tax due, or unpaid portion thereof; provided, however, the amount of such penalty to be added for the first thirty (30) calendar days of delinquency shall in no event exceed ten percent (10%) of the amount of the tax due.

2. Continuing Delinquency: Any person who fails to pay any delinquent tax, penalties and interest due on or before the first calendar day of the second thirty (30) calendar day period that the tax is due shall pay a penalty of ten percent (10%) of the tax due, or unpaid portion thereof and on the first calendar day of each subsequent thirty (30) calendar day period shall pay a penalty of ten percent (10%) of the tax due, or unpaid portion thereof; provided, however, the amount of all initial delinquency and continuing delinquency penalties to be added shall in no event exceed fifty percent (50%) of the amount of the total tax due.

3. Reduction Or Elimination Of Penalties: Notwithstanding anything contained in this subsection B, any person that is obligated to pay a penalty as a result of a delinquency in the payment of taxes, penalties or interest, as provided in subsection B1 or B2 of this section may apply to the Director of Finance for a reduction or elimination of such penalty or penalties. The Director shall grant a reduction or elimination of such penalty or penalties as provided below only if the Director determines that the person meets one of the following criteria:

a. The person has voluntarily reported the delinquency that was not otherwise previously known or discovered by the City and has paid the total sum of delinquent taxes and interest due under subsection D of this section within thirty (30) days after issuance by the City of an audit report calculating such sum. The voluntary report of delinquency shall be made upon forms and pursuant to procedures to be promulgated by the Director of Finance; or

b. The person's delinquency was discovered other than by a voluntary report as provided in subsection B3a of this section, but the person nonetheless has paid the total sum of delinquent taxes, penalties and interest due under subsection D of this section within thirty (30) days after issuance by the City of an audit report calculating such sum.

If the Director determines that the person has met the criterion set forth in subsection B3a of this section, then the penalty or penalties otherwise due for such delinquency shall be eliminated. If the Director determines that the person has met the criterion set forth in subsection B3b of this section, then the penalty or penalties otherwise due for such delinquency shall be limited to ten percent (10%) of the amount of the total tax due.

No person shall be entitled to elimination or reduction of any penalty unless timely payment of taxes, interest and any applicable penalties shall be made as provided in this section. The failure to make a timely payment as provided in this section or the taking of any other action to otherwise contest the results of the City's audit report shall constitute a complete waiver of any right to seek reduction or elimination of any penalty pursuant to this section. This subsection B3 shall not apply to any delinquency after that delinquency becomes the subject of an assessment of Business Taxes.

C. Overpayment: For the purposes of allowing overpayments as credit against underpayments of the aforementioned taxes, whenever such overpayment has been received by the City within the three (3) years preceding the current tax year, or during any year for which the taxpayer, at the request of the Director of Finance Administration, has executed a waiver of the defense of the statute of limitations with regard to any claim the City may have for Business, Sales or Use Taxes, the Director of Finance Administration, when making determinations of the amount of taxes due the City, shall make an allowance of credit for any such overpayments. Whenever an overpayment has been made prior to an underpayment, no penalty or interest shall apply upon the amount of the underpayment satisfied by the prior overpayment.

D. Interest: In addition to the penalties imposed, any person who fails to pay any tax required to be paid by this article shall pay interest at the rate of one and one-half percent (1.50%) per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the tax first became delinquent until paid. Interest shall run during any period of time for which an extension of time has been granted by the Director of Finance Administration. Interest required by any of the provisions of this section shall not be subject to waiver or compromise other than as the Council may direct.

E. Penalties And Interest Merged With Tax: Except for the purposes of calculation of interest and penalties, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.

F. Audits: Nothing in this article or this section shall obligate the City or the Director of Finance to conduct any audit, including, without limitation, an audit pursuant to section 3-1-212 of this chapter, as a prerequisite to any assessment or enforcement of the tax, penalty or interest obligations in this article. (Ord. 96-O-2255, eff. 3-22-1996; amd. Ord. 10-O-2580, eff. 5-23-2010; Ord. 18-O-2750, eff. 4-6-2018)

A. Unless otherwise provided in this article, every person who engages in any business within the City must register with the Department of Finance Administration and pay a separate Business Tax for:

1. Each establishment or location within the City at which registrant conducts business; and

2. Each type of business as set forth in section 3-1-219 of this chapter which a registrant conducts at every primary and branch establishment within the City.

Where business is engaged in from one or more locations outside the city, only one registration for each classification of business is required for engaging in that business in the city from all such outside locations. (Ord. 96-O-2255, eff. 3-22-1996)

No refund of an overpayment of taxes imposed by this code shall be made except under the following procedure:

A. No claim for refund shall be accepted nor shall any refund be made by the director of finance administration unless the director receives a complete and executed claim form with all required supporting documentation or records within one calendar year from the date the claimed overpayment was tendered to the department of finance administration. Claim forms shall be furnished upon request by the department of finance administration to any person who seeks a refund.

B. There shall be no refund of taxes paid where a business vacates its premises or otherwise ceases business operations during the term of the business tax calendar year.

C. The director of finance administration shall refund taxes paid when it has been determined by the director of finance administration that the tax was paid in error, computed incorrectly, overpaid, or collected illegally.

D. Nothing contained in this section shall modify, extend or suspend the one calendar year deadline to make a claim in the manner stated in subsection A of this section nor shall the timely filing of a claim extend any state statute of limitations which constitutes a bar to the recovery of a tax refund. (Ord. 96-O-2255, eff. 3-22-1996)

The business tax is computed by multiplying the measurement focus for the classification of the business being registered by the tax rate for the classification of the business being registered as defined in section 3-1-219 of this article. Where the measurement focus is based on an estimation, the registrant shall estimate the tax due by multiplying the estimated measurement focus for the classification of the business being registered by the tax rate for the classification of the business being registered as defined in section 3-1-219 of this article. The business tax shall be based on the estimate, if such estimate is reasonable as compared to criteria established by the director of finance administration, otherwise the tax shall be based on the criteria established by the director of finance administration. The registrant shall pay the business tax as determined; provided however, the amount of the tax so determined shall be tentative only, and the registrant, within thirty (30) calendar days after the expiration of the period for which such tax was deposited, shall furnish the department of finance administration information showing the actual tax calculation for the period along with any taxes due as a result of an underestimation by the registrant. Any taxes due and not paid within thirty (30) calendar days after the expiration of the period for which such tax was deposited shall be considered delinquent and subject to penalties and interest as required by section 3-1-207 of this article. If the registrant overestimated the tax due, any excess shall first be credited to the renewal of the business registration. After fulfillment of any renewal requirement, or other amounts owing the city of Beverly Hills, any remaining overpayment shall be refunded to the registrant. (Ord. 91-O-2126, eff. 11-8-1991; amd. Ord. 96-O-2255, eff. 3-22-1996)

Every person who, under the provisions of this article, is subject to a business tax and who has a fixed place of business shall notify the department of finance administration in writing of any change in location of such fixed place of business or mailing address within thirty (30) days thereafter. (Ord. 96-O-2255, eff. 3-22-1996)

A. Duty To Enforce: It shall be the duty of the director of finance administration and the director's deputies, designates or any other person deemed appropriate by the director, and the director and other such designated individuals are hereby directed to enforce each and all of the provisions of this article, and the chief of police shall render such assistance in the enforcement of this article as may from time to time be required by the director of finance administration. The director of finance administration may make such rules and regulations as are not inconsistent with the provisions of this article as may be necessary or desirable to aid in the enforcement of the provisions of this article.

The determination of the classification of business a registrant is engaged in, or is about to engage in, or the determination of the number of vehicles, machines, devices, or articles of equipment used, or the number of persons employed or the gross receipts, gross operating expenses or gross payroll, for the computation of tax to be paid shall be an administrative function of the director of finance administration or the directors designated representative.

B. Inspection And Examination Of Places Of Business: The director of finance administration, and the director's deputies, designates or any other person deemed appropriate by the director, shall have the authority to inspect and examine all places of business in the city to ascertain whether or not the provisions of this article have been complied with.

C. Audit And Examination Of Records And Equipment: The director of finance administration and the director's deputies, designates or any other person deemed appropriate by the director, shall have the power to audit and examine all books, and records, and, where necessary, all equipment, of any person engaged in business in the city for the purpose of ascertaining the amount of business tax, sales or use tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying the statements, or any item thereof, when filed by any taxpayer pursuant to this article. If such person, after written demand by the director of finance administration or the director's deputies, designates or any other person deemed appropriate by the director, refuses to make available for audit, examination or verification such books, records or equipment as the director of finance administration or the director's deputies, designates or any other person deemed appropriate by the director, requests, the director of finance administration may make an assessment in the manner provided in 3-1-213 of this article of any taxes estimated to be due.

D. Extension Of Time For Filing: The director of finance administration may extend the time for filing any statement required under the provisions of this article for a period not to exceed forty five (45) calendar days under the following circumstances:

1. The city council of the city of Beverly Hills has declared a state of emergency within thirty (30) calendar days of the annual renewal date and as a result of conditions that caused the declaration of emergency the timely filing of annual renewals by local businesses would be affected. The director of finance administration shall notify the city manager of the director's intent to extend the time for filing prior to issuing notification of the extension. If the city manager concurs with the director of finance administration's decision to extend the time for filing, all registrants will be notified of the extension of the time for filing by publication in a newspaper of general circulation.

2. Upon receipt of a written request from a registrant who is a sole proprietor or the only person with the information necessary to complete the registration form and who provides proof that the timely filing of registration was not possible as result of the death or severe illness of the registrant or an immediate family member, herein defined as a spouse, parent, brother, sister, child, grandparent or in-law of the registrant. The decision of the director of finance administration to either grant or deny an extension shall be served upon the registrant by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the registrant at the address of the location of the business registered with the department of finance administration within fifteen (15) calendar days from the date of the receipt of the request for extension.

If an extension is granted, no penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension in the manner provided by in this article. Taxes become delinquent on the first day after the last day of the extension.

E. Rules And Regulations; Apportionment: When, by reason of the constitution of the United States or the constitution of the state of California, the business tax imposed by this article cannot be enforced without there being apportionment according to the amount of business done in the city of Beverly Hills, or in the state of California, as the case may be, the director of finance administration may make such rules and regulations for the apportionment of the tax as necessary or desirable to overcome the constitutional objections. Such rules and regulations shall be approved by the city attorney prior to becoming effective.

F. Payments And Requests, Made By Mail: Whenever any payment, statement, report, request or other communication is received by the department of finance administration after the time prescribed by this article for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed prior to the time prescribed in this article for the receipt thereof, or whenever the director of finance administration is furnished substantial proof that the payment statement, report, or request for communication was in fact deposited in the United States mail prior to the time prescribed for receipt thereof, the director of finance administration may regard such payment, statement, report, request or other communication as having been timely received. (Ord. 96-O-2255, eff. 3-22-1996)

A. Assessment Of Taxes: If the director of finance administration is not satisfied that any statement filed as required under the provisions of this article is correct, or that the amount of tax is correctly computed, or that the business classification has been correctly determined, or that any tax is due or may be due to the city of Beverly Hills under the provisions of this article, the director of finance administration, or the director's designate, may compute and determine the amount to be paid and make an assessment upon the basis of the facts contained in the statement or upon the basis of any information in the city's possession or that may come into the city's possession. One or more assessments of the amount of tax due for a given period or periods may be made. When a person discontinues engaging in a business, an assessment may be made at any time within three (3) years thereafter as to any tax liability arising from engaging in such business.

B. Application Of Penalties To Assessment; Due Date Of Tax: The due date of the assessed taxes for the purpose of application of penalties shall be one of the following:

1. The due date of the original tax obligation; or

2. The date the assessment becomes final if the director of finance administration makes the following findings as a part of the assessment:

a. The business was property registered and a current registration certificate was issued or the registrant was eligible for issuance of a current registration certificate prior to the findings of the assessment; and

b. The assessment is the result of a tax underpayment; and

c. The underpayment of the tax was the result of incorrect information provided, in writing, by fax or documented telephone conversation or other verifiable means of communication, to the registrant by finance administration staff; and

d. The incorrect information provided by finance administration staff was not the result of incorrect or incomplete information provided by the registrant but rather by an administrative error by finance administration staff.

C. Notice Of Assessment: A notice of assessment shall be prepared and shall separately set forth the amount of any tax known or estimated to be due by the director of finance administration and any penalties or interest due as of the date of its preparation.

D. Service Of Assessment: The notice of assessment shall be served upon the registrant or person by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the registrant at the address of the location of the business registered with the department of finance administration. Should the person not have previously registered the business, then the notice of assessment shall be served to the person's last known address. For the purpose of this section, a service by mail is complete at the time of deposit in the United States mail.

E. Right To Hearing: Within fifteen (15) calendar days after the date of service, the registrant or person assessed may apply in writing to the director of finance administration for a hearing on the assessment.

F. No Timely Request For Hearing: If the registrant or person does not request a hearing upon the assessment 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 of Beverly Hills, but penalties and interest as provided by this article shall continue to accrue until paid.

G. Time Of Hearing; Notice: If the registrant or person requests a hearing, the director of finance administration shall cause the matter to be set for hearing not later than ninety (90) calendar days after the date of the request. Notice of the time and place of the hearing shall be mailed to the registrant or person assessed as prescribed in subsection B of this section not later than fifteen (15) calendar days before the date set for hearing and, if the director of finance administration desires said registrant or person to produce specific records at such hearing, such notice shall designate the records required to be produced.

H. Administrative Hearing: The hearing prescribed by this section shall be before the director of finance administration or the duly appointed representative of the director of finance administration. At the hearing, the registrant or person assessed may submit evidence why the assessed tax interest and penalties should not be fixed. The registrant or person may be represented by counsel.

I. Decision Of The Director Of Finance Administration: Upon completion of the hearing, the director of finance administration, or the director's designate, shall determine the proper tax, interest and penalties to be remitted and shall give written notice to the registrant or person assessed in the same form and in the same manner as the notice of assessment and within thirty (30) calendar days from the conclusion of the hearing at which time the assessment shall become final.

J. Effect Of Delay In Administrative Proceedings: Failure of the director of finance administration to set any hearing within the time prescribed in this section and failure of the director of finance administration to complete any procedure prescribed in this section within the period stated shall not affect the validity of any proceedings taken hereunder.

K. Effect Of Payment Of An Assessment: Acceptance of any payment upon an assessment shall not preclude the director of finance administration from subsequently levying another assessment in any case where the original assessment does not correctly reflect the actual tax liability.

L. Appeal From The Decisions Of The Director Of Finance Administration: Any registrant or person assessed not in agreement with the decision of the director of finance administration with respect to the amount of such tax, interest and penalties, if any, may appeal to the city council as provided in title 1, chapter 4, article 1 of this code. (Ord. 96-O-2255, eff. 3-22-1996)

It shall be unlawful for the department of finance administration, or for any city official, to release information in its possession (hereafter "confidential information") regarding a registrant to any other person without the prior written authorization of registrant, except in the following instances:

A. For use in the enforcement of any provision of this code. This exception shall include the use of confidential information by the city council or other city officials or representatives in connection with the resolution, compromise or adjustment of any claim relating to a tax liability;

B. For examination of any governmental taxing authority if reciprocal arrangements with said agency exists, or to a grand jury;

C. To a court of law in an action involving a registrant's tax liability;

D. To the registrant's successor, receiver, trustee, executor, administrator, assignee, guarantor or a duly appointed agent or representative. The release of confidential information by the director of finance administration to any such person upon the director's receipt of a request in writing shall not be made without prior written approval of the city attorney who shall review the legal standing of the person requesting disclosure;

E. The name and address of the registrant may be released to any person requesting this information for any reason;

F. If otherwise required by law. (Ord. 96-O-2255, eff. 3-22-1996)

A. Registrants indebted to the city of Beverly Hills for unpaid taxes, penalties or interest (hereafter "the delinquency") may, upon a determination by the director of finance administration that: 1) the registrant lacks the present ability to pay the entire sum due and 2) a reasonable basis exists to believe that registrant can successfully make monthly payments on a timely basis, enter into a written agreement with the city for a period not to exceed three (3) years for the installment payment of the delinquency on such terms as the director may approve.

B. Any installment or other partial payment received by the department of finance administration, whether or not as a result of a written agreement pursuant to this section, shall be applied to that portion of the delinquency which first arose in time.

C. Any agreement executed pursuant to this section, shall include, without limitation, provisions reciting the registrant's admission that the delinquency is presently due, the continued accrual of interest, an acceleration clause, the recovery of attorney fees and costs in any litigation to enforce the agreement, the reservation of all of the city's rights and remedies to enforce its laws, as well as a recital that no penalties shall be applied to the unpaid portion of the delinquency for the period covered by the agreement so long as all installment payments are timely made. (Ord. 96-O-2255, eff. 3-22-1996)

Any person who fails to register a business and pay a business tax according to the provisions of this article shall be liable to the city in any action brought in a court of competent jurisdiction. (Ord. 96-O-2255, eff. 3-22-1996)

The conviction of any registrant or person for a failure to pay a tax liability or for a violation of any other provision of this article shall not excuse the obligation to pay a tax, penalty or interest charge, nor shall the total or partial payment of a tax, penalty or interest charged bar a prosecution. The remedies provided in this code are cumulative and the exercise of one remedy shall not preclude the exercise of any other remedies. (Ord. 96-O-2255, eff. 3-22-1996)

Except where a repealing or amendatory ordinance specifically provides otherwise, the amendment or repeal of any provision of this article shall not be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the city of Beverly Hills by any person pursuant to provisions of said article as they existed prior to such amendment or repeal. The rule of construction required by this section is declared to be in clarification and confirmation of the existing intent of said article, and is not to be construed as applying solely to the effect of repealing or amending ordinances adopted subsequent to the effective date of this section. (Ord. 96-O-2255, eff. 3-22-1996)

Every person who engages in business, whether or not at a fixed place in the city, shall first pay a business tax to the department of finance administration as computed for the following activities:

A. Classification A; Corporate Headquarters And Business And Personal Services: All registrants engaged in business classified by finance administration as classification A, corporate headquarters or business and personal services, shall pay an annual basic tax plus a per employee tax for each employee, based on the annualized average number of persons employed in the prior calendar year or in the case of a new business an estimate by the registrant of the average number of persons to be employed during the current calendar year, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification A.

B. Classification B; Retail, Wholesale, Manufacturing, And Contractors: Except as provided in section 3-1-220 of this chapter regarding business license taxes for contractors, all registrants engaged in businesses classified by finance administration as classification B, retail, wholesale, manufacturing and contractors, shall pay an annual basic tax plus a gross receipts tax for each one thousand dollars ($1,000.00) of gross receipts in excess of sixty thousand dollars ($60,000.00), based on the annualized actual gross receipts of the prior calendar year or in the case of a new business an estimate by the registrant of the gross receipts during the current calendar year, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification B.

All registrants classified as contracting businesses pursuant to section 3-1-220 of this chapter shall pay the gross receipts tax specified in section 3-1-220 of this chapter.

C. Classification C; Professions And Semiprofessions: All registrants engaged in businesses classified by finance administration as classification C, professions and semiprofessions, shall pay an annual tax for each professional and semiprofessional, based on the annualized average number of professional and semiprofessional persons engaged in business in the prior calendar year or in the case of a new business an estimate by the registrant of the average number of professional and semiprofessional persons to be engaged in business during the current calendar year, plus a per employee tax for each nonprofessional employee, based on the annualized average number of nonprofessional persons employed in the prior calendar year or in the case of a new business an estimate by the registrant of the average number of nonprofessional persons to be employed during the current calendar year, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification C.

D. Classification D; Used Car Dealers: All registrants engaged in the business of selling used automobiles, other than vehicles accepted as a part of the purchase price for a new automobile and classified by finance administration as classification D, used car dealers, shall pay an annual basic tax plus a gross receipts tax for each one thousand dollars ($1,000.00) of gross receipts in excess of sixty thousand dollars ($60,000.00), based on the annualized actual gross receipts of the prior calendar year or in the case of a new business an estimate by the registrant of the gross receipts during the current calendar year, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification D.

E. Classification E; Residential Property Renting And Leasing: All registrants engaged in the business of conducting or operating a hotel or apartment house or leasing or renting of any residential property, dwelling unit, or room for dwelling, sleeping, or lodging and classified by finance administration as classification E, residential property renting and leasing, shall pay an annual gross receipts tax for each one thousand dollars ($1,000.00) of gross receipts, provided, however, the total gross receipts average greater than three thousand six hundred dollars ($3,600.00) per unit, based on the annualized actual gross receipts of the prior calendar year or in the case of a new business an estimate by the registrant of the gross receipts during the current calendar year, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification E.

F. Classification F; Commercial Property Renting And Leasing: All registrants engaged in the business of leasing or renting any commercial property, and which are not subject to the provisions of subsection E of this section, and classified by finance administration as classification F, commercial property renting and leasing, shall pay an annual gross receipts tax for each one thousand dollars ($1,000.00) of gross receipts, provided, based on the annualized actual gross receipts of the prior calendar year or in the case of a new business an estimate by the registrant of the gross receipts during the current calendar year, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification F.

G. Classification G; Agencies, Lenders, Brokerages, And Other Similar Services: All registrants engaged in the business of an agency, lender, brokerage, or other service, and classified by finance administration as classification G, agencies, lenders, brokerages and other similar services, shall pay an annual gross receipts tax for each one thousand dollars ($1,000.00) of gross receipts, provided, based on the annualized actual gross receipts of the prior calendar year or in the case of a new business an estimate by the registrant of the gross receipts during the current calendar year, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification G.

G.1. Classification G.1; Real Estate Salesperson: All registrants engaged in the business of a real estate salesperson, and classified by finance administration as classification G.1, shall pay a quarterly gross receipts tax of one dollar ($1.00) for each one thousand dollars ($1,000.00) of gross receipts for business activity performed in that quarter. Such gross receipts shall be apportioned between jurisdictions pursuant to administrative rules and regulations established by the department of finance administration. The quarterly business tax payment shall be collected and remitted by the real estate broker who employs or otherwise compensates the real estate salesperson. All taxes collected by the real estate broker pursuant to this section shall be held in trust for the account of the city until payment thereof is made to the city.

H. Classification H; Depository Financial Institutions; Branch And Sale Offices: Depository financial institutions; branch and sale office locations.

I. Classification I; Oil Production: All registrants engaged in the business of extracting oil from a well where the well, or any portion of the well, is located in, passes through, or is bottomed under real property in the city, and classified by finance administration as classification I, oil production, shall pay an annual tax within sixty (60) calendar days after December 31 of each calendar year as follows:

1. Wells Located Entirely Inside The City: A basic minimum tax plus a subsequent additional tax, based on each barrel which is produced during the calendar year in excess of ten thousand (10,000) barrels, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification I, wells inside the city.

2. Wells Located Outside The City: A basic minimum tax plus a subsequent additional tax, based on each barrel which is produced during the calendar year in excess of ten thousand (10,000) barrels, as established in the city of Beverly Hills "schedule of taxes, fees and charges" for classification I outside the city. (Ord. 96-O-2255, eff. 3-22-1996; amd. Ord. 01-O-2361, eff. 1-2-2001; Ord. 01-O-2370, eff. 3-8-2001; Ord. 05-O-2467, eff. 4-16-2005; Ord. 05-O-2481, eff. 8-16-2005)

A. Contracting Business, Defined: As used in this section, "contracting business" means any business classified by finance administration as classification B, retail, wholesale, manufacturing and contractors, where the person engaging in the business is required, pursuant to the contractor's state license law (Business And Professions Code section 7000 et seq.), to hold a license from the state of California in order to engage in such business.

B. Project, Defined: As used in this section, "project" means all operations, transactions, or other business conducted in relation to the construction, improvement, maintenance, or other development of a single site.

C. Project Registration Required: No person shall, for any project, transact, engage in, carry on, or permit the operation of any contracting business in the city without first registering for that project with the department of building and safety. A person registering a project under this section need not register pursuant to subsection 3-1-201A of this chapter with respect to any business conducted by that person on a project registered under this subsection.

D. Contracting Registration: Registration required by subsection C of this section shall be reflected on the building permit or other technical permit issued for the project when the following conditions have been met:

1. All application materials, as required by the director of building and safety, have been completely filled out and signed by the owner, agent, corporate officer, or other duly appointed and authorized person.

2. All taxes, penalties, and interest owing under this article for any business covered by the certificate have been received by the department of building and safety or the department of finance administration.

E. Term Of Registration: A registration under this section shall remain valid until all work is completed by the registrant on the project that is the subject of the registration.

F. Scope Of Contracting Registration: Each building permit or other technical permit shall clearly indicate on its face both the name of the registrant who has been issued the contracting registration and a description of the project to which the contracting registration applies.

G. Calculation Of Business Tax On Contracting Businesses: All registrants engaged in contracting businesses shall pay a gross receipts tax on each project based on an estimate by the registrant of the gross receipts for that project. This tax shall be levied on the entire amount of the gross receipts at the same rate established for each one thousand dollars ($1,000.00) of annual gross receipts exceeding sixty thousand dollars ($60,000.00) for classification B in the city of Beverly Hills "schedule of taxes, fees, and charges". This tax shall be in lieu of any tax that would otherwise be required by section 3-1-219 of this chapter for gross receipts associated with activities that are taxed pursuant to this section.

H. Due Dates For Business Taxes On Contracting Businesses: As provided in section 3-1-206 of this chapter, any business tax imposed pursuant to this section shall be paid in lawful money of the United States and shall be collected by the department of building and safety and shall be due and payable on or before the first day that the taxpayer commences work on the project for which the tax is imposed.

I. Expiration Of Period For Which Tax Is Collected: For the purposes of section 3-1-210 of this chapter, the period for which the tax calculated pursuant to subsection G of this section has been deposited shall be deemed to expire upon finalization or expiration of all building and technical permits for the project.

J. Applicability Of This Article To Business Tax Collected Under This Section: Except where specifically made inapplicable by the terms of this section, all provisions of this article shall apply to the business tax collected under this section.

K. Relation To Previous Collection Method: No person subject to the registration requirements of subsection C of this section shall, in aggregate over all periods in which a tax is imposed pursuant to this section or section 3-1-219 of this chapter, be required to pay taxes calculated under the provisions of this section and section 3-1-219 of this chapter that would exceed the amount of taxes that would have been owed by the registrant under section 3-1-219 of this chapter prior to the enactment of this section. Any payments made by a person in excess of that amount shall be treated as overpayments as of the final day (the "calculation date") of the first calendar year in which: 1) no taxes were due from that person under this article and 2) no taxes would have been due from that person under section 3-1-219 of this chapter prior to the enactment of this section. Such overpayments may be refunded only pursuant to the requirements of section 3-1-209 of this chapter, treating the calculation date as the date the claimed overpayment was tendered. (Ord. 01-O-2361, eff. 1-2-2001; amd. Ord. 01-O-2370, eff. 3-8-2001)