Burbank Municipal Code Art. 8 Business Tax

This article is enacted solely to raise revenue for municipal purposes and is not intended for regulation. The payment of a business tax required by the provisions of this article shall not entitle the payor to carry on any business unless the payor has complied with all of the requirements of this article and all other provisions of this code or State law. [Added by Ord. No. 2357; formerly numbered Section 14-120; renumbered by Ord. No. 3058, eff. 2/21/87; 2939.]

A. Schedule of Taxes: No person shall engage in any business at any location in the City without first having paid the business tax specified in the Burbank Fee Resolution for each such business.

B. Computation of Tax: Except as otherwise provided in this article, the business tax shall consist of two (2) components. The first component shall be a basic or minimum tax to be levied against all businesses, at each business location, doing business within the City. The second component shall be an additional levy for each employee, not exceeding three thousand (3,000) employees, as of July 1 of each year, employed or retained by each such business according to the classifications designated in the Burbank Fee Resolution. The basic tax and the additional levy when added together shall yield the total business tax liability of each business.

C. Adjustment Factor: Effective January 1, 1985, and each succeeding January 1 thereafter, the schedule of business taxes established by the City Council and designated in the Burbank Fee Resolution shall be adjusted in accordance with the provisions of this subsection. On November 1 of each year, the Building Director shall review the current Producers’ Price Index (PPI) published by the Bureau of Labor Statistics of the Department of Labor. When such index differs from the index for the previous November 1, the factor of increase or decrease shall be applied to the schedule of business taxes. Such factor shall be computed by dividing the PPI for the current November 1 by that pertaining to the previous November 1. The business taxes then in effect shall be multiplied by said factor and rounded off to the nearest nickel, to determine the adjusted business taxes for the following calendar year.

D. Definitions: Unless the particular provisions or the context otherwise requires, the definitions contained in this subsection shall govern the construction, meaning, and application of the words and phrases used in this article.

BUILDING DIRECTOR: The Building Official or the designee of the Building Official.

BUSINESS: Each and every activity concerned with the making, supplying, and distribution of commodities or services, including, but not limited to, every profession, trade, occupation, and all and every kind of calling.

EMPLOYEE: “Employee” as such term is defined in 42 USC Section 410(j) of the Social Security Act. For the purposes of this article, the term “employee” shall include any person licensed as a real estate salesperson pursuant to the Business and Professions Code of the State of California and working under the supervision of a licensed real estate broker.

E. Professionals:

1. Every person conducting, carrying on, or managing any of the following professions or services shall pay the annual business tax designated in the Burbank Fee Resolution: appraiser, architect, artist, assayer, attorney at law, bacteriologist, business counselor, certified public accountant, chemist, chiropodist, chiropractor, civil engineer, chemical engineer, consulting engineer, dentist, designer, detective, draftsman, economist, electrical engineer, engraver, entomologist, geologist, hydraulic engineer, illustrator, insurance adjustor, insurance broker, landscape architect, lapidary, lithographer, masseur, masseuse, mechanical engineer, mining engineer, oculist, optician, optometrist, osteopath, osteopathist, physical therapist, physician, psychologist, psychiatrist, public accountant, real estate broker, surgeon, surveyor, veterinarian, or other profession or service determined by the Building Director to be similar thereto.

2. Except as provided in subsection E3 of this section, a person acting as the employee of another person shall not be subject to a business tax under subsection E1 of this section.

3. Each employee who has a right to share in any profits (other than by way of a profit sharing, pension, annual bonus, or similar plan) of their employer carrying on a profession or business enumerated in subsection E1 of this section, shall be subject to a business tax under said subsection.

4. Each member of any partnership or other association carrying on a profession or business enumerated in subsection E1 of this section shall be subject to a business tax under said subsection. [Added by Ord. No. 2357; formerly numbered Section 14-120.1; renumbered by Ord. No. 3058, eff. 2/21/87; 2964, 2951, 2939.]

A. Gross Receipts: Every person engaged in the business of operating, providing, renting or leasing coin operated machines shall pay a business tax in an amount equal to a percentage, specified in the Burbank Fee Resolution, of the gross receipts derived from the operation of such machines within the City.

B. Coin Operated Machine: “Coin operated machines”, as used herein, shall mean machines and devices other than those specified in subsection C of this section, the operation of which results from the insertion of a coin, slug, or token of value, whether placed or inserted directly into such machines or devices, or into devices causing their operation, and shall include, but not be limited to, coin operated vending machines, phonographs and other music machines and devices, radios, television sets, pinball machines and other amusement devices, weighing machines and devices, and baggage checking devices.

C. Exemption: Nothing herein shall be construed to require the payment of any business tax for any coin operated telephone, or any coin box for the receipt of fares on any carrier, or any coin operated machine or device entirely owned, operated, and supplied by the owner or operator of a business for the convenience of its employees, visitors, customers, or tenants, which business is specifically taxed by other provisions of this article.

[Added by Ord. No. 2357; formerly numbered Section 14-120.2; renumbered by Ord. No. 3058, eff. 2/21/87; 2939, 2811, 2551, 2537, 2435, 2389, 2381, 2363.]

Every person who is required to have a state contractor’s license and who is conducting, carrying on, or managing the business of a contractor or subcontractor in the City shall pay a business tax as determined by the volume of work schedule, designated in the Burbank Fee Resolution, from jobs or projects located within the City. [Added by Ord. No. 2357; formerly numbered Section 14-120.3; renumbered by Ord. No. 3058, eff. 2/21/87; 2939.]

For every person conducting, carrying on or managing the business of a service laundry, laundromat, laundry route operator, laundry collector, cleaning and laundry service, or any similar business, the business tax shall be determined by the gross receipts schedule designated in the Burbank Fee Resolution. [Added by Ord. No. 2435; formerly numbered Section 14-120.4; renumbered by Ord. No. 3058, eff. 2/21/87; 2939.]

A. Apartments and Bungalows: For every person conducting or carrying on or managing an apartment, flat, court, bungalow, or rooming house, consisting of three (3) or more individual living units or rooms available for rent, the business tax shall be as designated in the Burbank Fee Resolution.

B. Hotels and Motels: For every person conducting or carrying on or managing a hotel or motel, the business tax shall be as designated in the Burbank Fee Resolution. [Added by Ord. No. 2939; formerly numbered Section 14-120.5; renumbered by Ord. No. 3058, eff. 2/21/87.]

For every person conducting or carrying on or managing a business involving the rental or lease of commercial, retail, office, wholesaling, or manufacturing property or space, the business tax shall be as designated in the Burbank Fee Resolution. Each business location shall be taxed separately. [Added by Ord. No. 2939; formerly numbered Section 14-120.6; amended by Ord. No. 3197, eff. 8/18/90; 3058.]

Persons exempted from the payment of license fees by Section 3-6-412 of this code shall be similarly exempt from the payment of business taxes imposed by this article. Nothing contained in this article shall be deemed or construed to apply to any person engaged in a profession solely as an employee of a person subject to, or exempted from, a business tax imposed by this article or a license fee imposed by other provisions of this code. Persons engaged in any home occupation permitted by Section 10-1-661 of this code shall not be subject to any business tax or registration fee imposed by this article if the gross receipts from such occupation is less than one thousand two hundred dollars ($1,200.00) per year.

[Added by Ord. No. 2357; formerly numbered Section 14-121; renumbered by Ord. No. 3058, eff. 2/21/87; 2939, 2435, 2363.]

License application fees, license fees, permit application fees, permit fees and special business license taxes imposed by other provisions of this code are in addition to the business taxes imposed by this article and persons required to pay taxes under this article must obtain any required permit or license for the business being conducted and pay such additional fees or taxes in the manner and at the times provided. [Added by Ord. No. 2357; formerly numbered Section 14-121.1; renumbered by Ord. No. 3058, eff. 2/21/87.]

Every person required to pay a tax under this article shall furnish to the Building Director on forms provided for such purpose, a sworn statement, accompanied by a registration fee specified in the Burbank Fee Resolution, setting forth the following:

A. The name and address of the business and whether a sole proprietorship, partnership, corporation or other business entity.

B. The exact nature or kind of business.

C. The place or places where business is conducted or to be conducted.

D. The names and residence addresses of the owners of the business, and if a corporation, the names and residence addresses of the principal officers thereof.

E. The number of employees employed or retained by the business on the July 1 immediately preceding the filing of the application.

F. Such other information as the Building Director may require.

In the event the nature or kind of business so conducted is changed so as to require the payment of an additional or different tax under the provisions of this article, the person conducting such business shall file an amended sworn statement setting forth the exact nature or kind of business being conducted and pay any additional tax which may be due. Changes of address or ownership shall be promptly reported to the Building Director. [Added by Ord. No. 2357; formerly numbered Section 14-121.2; renumbered by Ord. No. 3058, eff. 2/21/87; 2939.]

A. Issuance of Certificate: Upon compliance with provisions of Section 2-4-810 of this article, the Building Director shall issue to the registrant a Business Tax Registration Certificate which shall state:

1. The name of the person to whom issued.

2. The classification of the business engaged in.

3. The address of the location from which the business is conducted.

B. Posting and Keeping: Every person engaged in a business subject to tax under the provisions of this article shall keep the registration certificate issued therefor posted in a conspicuous place upon the premises at or from which the business is conducted.

C. Not Transferable; Exception: No Business Tax Registration Certificate issued under this article shall be transferable; provided, however, that where a Business Tax Registration Certificate has been issued for a particular place, such certificate may, upon application therefor and paying the fee specified in the Burbank Fee Resolution, be amended so as to show conduct of such business at some other location. [Added by Ord. No. 2357; formerly numbered Section 14-121.3; renumbered by Ord. No. 3058, eff. 2/21/87; 2939, 2435.]

The Building Director or designees of the Building Director may enter free of charge, at any time, any place of business for which a registration certificate is required by this article and demand the exhibition of any such certificate by any person engaged or employed in the transaction of such business. The Building Director or designees of the Building Director shall also have the power to collect and receive money in payment of business taxes. [Added by Ord. No. 2939; formerly numbered Section 14-121.4; renumbered by Ord. No. 3058, eff. 2/21/87.]

A. When Payable: Annual taxes imposed by this article shall be payable in advance on January 1 of each year or on the day business is commenced, whichever is later. Taxes imposed on a daily basis shall be payable in advance prior to the commencement of each day of business.

B. Prorating: When a business is commenced in the second or subsequent quarter of any calendar year, the annual tax applicable to such business, except an annual tax based on costs of production, charges for related services, volume of work or gross receipts, shall be prorated as of the first day of the quarter.

C. Estimated Tax: Except as otherwise provided in this article, if the amount of tax to be paid by any person under the provisions of this article is based upon costs of production, charges for related services, volume of work or gross receipts, they shall estimate their costs of production, charges for related services, volume of work or gross receipts, for the period involved and such estimate, if accepted by the Building Director as reasonable, shall be used in determining the amount of tax to be paid, provided, however, that the amount of tax so determined shall be tentative only and such person shall, within thirty (30) days after the expiration of the period for which the tax is paid, furnish the Building Director with a sworn statement showing the costs of production, charges for related services, volume of work or gross receipts, as the case may be, and the actual tax due for such period. Should the amount of tax actually due be in excess of the estimated tax previously paid, such excess shall be paid forthwith, together with such penalties as may be applicable. If the actual tax due is less than the estimated tax previously paid, such excess shall be credited against the tax payable for the succeeding calendar year, or in the event such person is no longer engaged in a business subject to a tax under the provisions of this article, such excess shall be refunded.

D. Statements Not Conclusive: No statement of any person subject to a tax under the provisions of this article shall be conclusive as to the matters therein set forth, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable hereunder. [Added by Ord. No. 2357; formerly numbered Section 14-122; renumbered by Ord. No. 3058, eff. 2/21/87; 2939, 2537, 2435, 2363.]

Annual taxes payable on January 1 shall be deemed delinquent if not paid on or before the close of business on January 31. When a business subject to an annual tax is commenced after January 1, the tax payable by such business shall be deemed delinquent if not paid within thirty (30) days after the commencement of operations. Taxes imposed on a daily basis shall be deemed delinquent if not paid prior to the close of each day of business. [Added by Ord. No. 2357; formerly numbered Section 14-122.1; renumbered by Ord. No. 3058, eff. 2/21/87.]

Whenever a tax imposed by this article is not paid on or before the delinquency date, a penalty in an amount specified in the Burbank Fee Resolution shall be imposed, unless it is demonstrated to the satisfaction of the Building Director that the failure to pay the tax before the delinquency date was due to excusable neglect. In addition to the penalty or penalties imposed, interest at the rate of one percent (1%) per month, or fraction thereof, shall be paid on the amount of the business taxes due and unpaid. [Added by Ord. No. 2357; formerly numbered Section 14-122.2; renumbered by Ord. No. 3058, eff. 2/21/87; 2939, 2363.]

A. Credits: Whenever any license fee imposed by other provisions of this code is repealed concurrently with the imposition of a business tax under this article, the unexpired prorated portion of such license fee shall be credited against the tax payable.

B. Refunds: Whenever it is established to the satisfaction of the Building Director that the amount of any tax under this article has been overpaid or paid more than once or has been erroneously or illegally collected or received, it may be refunded. [Added by Ord. No. 2357; formerly numbered Section 14-122.3; renumbered by Ord. No. 3058, eff. 2/21/87; 2939.]

A. Debt: Any person carrying on any trade, calling, profession, occupation, or business without having obtained a Business Tax Registration Certificate shall be liable for the amount of the business tax imposed by this article, the Burbank Fee Resolution, and the rules and regulations promulgated thereunder. The amount of such business tax, including any penalty or interest thereon, shall be a debt owed to the City.

B. Conviction: The conviction and punishment of any person for transacting any trade, calling, profession, occupation, or business without having obtained a Business Tax Registration Certificate pursuant to the provisions of this article shall not excuse or exempt such person from the business tax due and unpaid at the time of any such violation of the provisions of this article. [Added by Ord. No. 2939; formerly numbered Section 14-122.4; renumbered by Ord. No. 3058, eff. 2/21/87.]

The Building Director may prescribe, from time to time as may be deemed necessary or desirable, rules and regulations, not in conflict with this article, relating to the administration and interpretation of this article and the business tax portion of the Burbank Fee Resolution, and the classification of trades, callings, professions, occupations, and businesses contained therein. [Added by Ord. No. 2939; formerly numbered Section 14-122.5; renumbered by Ord. No. 3058, eff. 2/21/87.]

All holders of Business Tax Registration Certificates shall keep complete employee records, including payroll records or other documentation approved by the Building Director, which may demonstrate compliance with this article and shall retain all such records for examination by the Building Director or designees of the Building Director. Such records shall be maintained for a period of at least three (3) years. [Added by Ord. No. 2939; formerly numbered Section 14-122.6; renumbered by Ord. No. 3058, eff. 2/21/87.]

Council may, by resolution, cause the development, implementation and administration of a business tax penalty amnesty program, whereby temporarily, for a specified period of time, certain elements of Article 8, Title 2 Chapter 4 of the Burbank Municipal Code will not be applied. [Added by Ord. No. 3686, eff. 2/18/06.]