Ceres Municipal Code Ch. 12 Business License Tax

For the purposes of this chapter, the following terms shall have the following meanings:

Business means professions, trades, and occupations, and all and every kind of calling, whether or not carried on for profit.

Collector means the City Tax Collector, Finance Director, other City officer, and their designees, charged with the administration of this chapter.

Gross receipts means the total of amounts actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares, or merchandise. Included in "gross receipts" shall be all receipts, cash, credits, and property of any kind or nature, 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, or losses or other expenses whatsoever. Excluded from "gross receipts" shall be the following:

1. Cash discounts allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

4. Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit;

5. Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the Collector with the names and addresses of the others and the amounts paid to them;

6. That portion of the receipts of a general contractor which represent payments to subcontractors, provided the general contractor furnishes the Collector with the names and addresses of the subcontractors and the amounts paid to each subcontractor, and further provided that such subcontractors secure a license under this chapter and pay the business license taxes which represent payments received from the general contractor;

7. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;

8. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker;

9. As to a retail gasoline dealer, a portion of his receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and previously paid under the provisions of part 2 of division 2 of the Revenue and Taxation Code of the State of California;

10. As to a retail gasoline dealer, the special motor fuel tax imposed by section 4041 of title 26 of the United States Code if paid by the dealer or collected by him from the consumer or purchaser;

11. That portion of gross receipts which represent business conducted in another jurisdiction and which portion of gross receipts has been taxed by that jurisdiction, provided the business submits proof satisfactory to the Collector of such taxation and the payment thereof.

Person means any individual, trust, firm, joint stock company, corporation, partnership, association, city, county, district, state, local agency, or state department, and includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, societies, and individuals transacting and carrying on any business in the City other than as an employee.

Sale includes the transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying, or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.

Sworn statement means an affidavit sworn to before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.

(Ord. No. 2020-1058, § 4, 3-23-2020)

This chapter is enacted solely to raise revenues for municipal purposes and is not intended for regulation.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person who engages in business with the City shall pay a business license tax at the rate set, from time to time, by resolution of the City Council.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Any person conducting two or more types of businesses at the same location and under the same management, but which businesses use a single set or integrated set of books and records, may, at his or her option, pay only one tax calculated on all gross receipts of the businesses under the schedule that applies to the type of business of such person which requires the highest percentage payment on such gross receipts as set pursuant to Section 3.12.300.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. None of the license taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the State of California.

B. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he may apply to the Collector for an adjustment of the tax.

1. Such application may be made before, at, or within six months after payment of the prescribed license tax.

2. The applicant shall, by sworn statement and supporting testimony, show this method of business and the gross volume or estimated gross volume of business and such other information as the Collector may deem necessary to determine the extent, if any, of such undue burden or violation.

3. The Collector shall investigate and, after having first obtained the written approval of the City Attorney, fix as the license tax for the applicant in a reasonable and nondiscriminatory amount. In the alternative, if the license tax has already been paid, the Collector shall order a refund of the amount over and above the license tax so fixed.

4. In fixing the license tax to be charged, the Collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this chapter.

5. Should the Collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant's business in the City, or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor, provided that no additional license tax during any one calendar year shall be required after the licensee shall have paid an amount equal to the annual license tax as prescribed in this chapter.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. The following are exempted from the payment of a license tax under this chapter:

1. 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 of California from the payment of such taxes as are herein prescribed;

2. Any public utility or franchisee possessing a franchise granted by the City, and making an annual payment under the franchise;

3. Any charitable institution, organization, or association organized and conducted for charitable purposes only. This exemption shall not apply to promoters employed by charitable organizations.

4. Any soldier, sailor, or marine of the United States who is currently on active duty or has received an honorable discharge or a release from active duty under honorable conditions from such service. Spouses or widows of such soldiers, sailors, or marines shall also be exempt;

5. Any natural person or group of persons under the age of 18 years who are bona fide residents of the City and have been so domiciled for at least 30 calendar days prior to filing a claim for exemption;

6. Any person conducting or staging any concert, exhibition, lecture, dance, amusement or entertainment where the receipts, if any are derived therefrom, are to be used solely for charitable or benevolent purposes and not for private gain or for the private gain of any person in whole or in part;

7. Any religious, fraternal, educational, military, state, county or municipal organization or association conducting any business which is open to members thereof only and not open to the public; and

8. Any religious, fraternal, educational, military, state, county or municipal organization or association conducting or staging any amusement or entertainment, concert, exhibition, lecture, dance or athletic event, when the receipts derived are to be wholly for the benefit of such organization and not in the whole or any part for private gain of any person.

B. Any person claiming an exemption pursuant to this section shall file a sworn statement with the Collector stating the facts upon which exemption is claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this chapter.

C. The Collector shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the City of the license tax required by this chapter.

D. The Collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein. In cases of revocation, the procedure and right of appeal shall be provided as in [business permit appeal procedure].

(Ord. No. 2020-1058, § 4, 3-23-2020)

Except as may be otherwise specifically provided in this chapter, the terms hereof shall not be deemed or construed to apply to any of the following:

A. Banks, to the extent that a City may not levy a license tax upon them under the provisions of article XIII, section 27 of the California Constitution.

B. Insurance companies and associations, to the extent that a City may not levy a license tax upon them under the provisions of article XIII, section 28 of the California Constitution.

C. Financial corporations and banks, to the extent the City may not levy a license tax upon them under Revenue and Taxation Code section 23182.

D. Any person whom the City is not authorized to license under any law or Constitution of the United States or the State. The Collector may require the filing of a verified statement from any person claiming to be excluded by the provisions of this section, which statement shall set forth all facts upon which the exclusion is claimed.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. If the amount of the license tax to be paid by the applicant is measured by gross receipts, the applicant shall estimate the gross receipts accepted by the Collector as reasonable, which will then be used in determining the amount of license tax to be paid by the applicant.

B. The amount of the license tax so determined shall be tentative only, and such person shall, within 30 days after the expiration of the period for which the license was issued, furnish the Collector with a sworn statement, upon a form furnished by the Collector, showing the gross receipts during the period of the license.

C. The license tax for such period shall be finally ascertained and paid in the manner provided by this chapter for the ascertaining and paying of renewal license taxes for other businesses, after deducting from the payment found to be due, the amount paid at the time such first license was issued.

(Ord. No. 2020-1058, § 4, 3-23-2020)

No statements shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items contained therein shall be subject to audit and verification by the Collector, his or her deputies, or authorized employees of the City, who are authorized to examine, audit, and inspect such books and records of any licensee or applicant for license as may be necessary in their judgment to verify or ascertain the amount of license fee due.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the Collector, he fails to file a corrected statement, or if any person subject to the tax imposed by this chapter fails to apply for a license, the Collector may determine the amount of license tax due from such person by means of such information as he or she may be able to obtain.

B. If the Collector is not satisfied with the information supplied in statements or applications filed, he or she may determine the amount of any license tax due by means of any information he may be able to obtain.

C. If such a determination is made, the Collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Ceres, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within 15 days after the mailing or serving of such notice, make application in writing to the Collector for a hearing on the amount of the license tax. If such application is made, the Collector shall cause the matter to be set for hearing within 15 days before the City Council. The Collector shall give at least ten days' notice to such person of the time and place of hearing in the manner prescribed above for serving notices of assessment. The Council shall consider all evidence produced, and shall make findings thereon, which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed above for serving notices of assessment.

(Ord. No. 2020-1058, § 4, 3-23-2020)

In addition to all other power conferred upon him, the Collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not exceeding 30 days, and in such case to waive any penalty that would otherwise have accrued, except that six percent simple interest shall be added to any tax determined to be payable.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. Unless otherwise specifically provided, all annual registration taxes, under the provisions of this chapter, shall be due and payable in advance on April 1 of each year.

B. A licensee paying a tax covering a new operation commencing in the first quarter of a licensing year shall pay the entire license tax; in the second quarter of a licensing year shall pay 75 percent of the license tax; in the third quarter of a licensing year shall pay 50 percent of the license tax; and in the fourth quarter of the licensing year shall pay 25 percent of the license tax.

C. The monthly business license tax imposed by sections 3.12.030 through 3.12.070 of this chapter shall be computed by excluding the credits applicable as listed in section 3.12.010, items 4 through 11 of the definition for "gross receipts," but the fee must not be lower than the minimum license tax as set pursuant to section 3.12.300 of this chapter.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. Business licenses shall be delinquent 35 days from the date when due. For failure to pay a license tax when due, the Collector shall add a penalty of ten percent of the license tax on the last day of each month after the due date thereof, providing that the amount of such penalty to be added shall in no event exceed 30 percent of the amount of the license tax due.

B. No license or sticker, tag, plate, or symbol shall be issued, nor one which has been suspended or revoked shall be reinstated or reissued, to any person who, at the time of applying therefor, is indebted to the City for any delinquent license taxes, unless such person, with the consent of the Collector, enters into a written agreement with the City, through the Collector, to pay such delinquent taxes, plus ten percent annual interest upon the unpaid balance, in monthly installments, or oftener, extending over a period of not to exceed one year.

C. If any person has failed to apply for and secure a valid license to operate a business, the business license tax due shall be that amount due and payable from the first date on which the person was engaged in business in the City together with applicable penalties.

D. Should court action be required to collect any business tax or penalties, any additional penalty shall be charged equal to costs of suit, including attorney's fees. The penalties shall be added to the tax and they shall become due and payable and collected along with the delinquent tax.

E. In any agreement so entered into, such person shall acknowledge the obligation owed to the City and agree that, in the event of failure to make timely payment of any installment, the whole amount unpaid shall become immediately due and payable and that his current license shall be revocable by the Collector upon 30 days' notice. In the event legal action is brought by the City to enforce collection of any amount included in the agreement, such person shall pay all costs of suit incurred by the City or its assignee, including reasonable attorney fees. The execution of such an agreement shall not prevent the prior accrual of penalties on unpaid balances at the rate provided hereinabove, but no penalties shall accrue on account of taxes included in the agreement, after the execution of the agreement, and the payment of the first installment and during such time as such person shall not be in breach of the agreement.

(Ord. No. 2020-1058, § 4, 3-23-2020)

No refund of an overpayment of taxes imposed by this chapter shall be allowed in whole or in part unless a claim for refund is filed with the Collector within a period of three years from the last day of the calendar month following the period for which the overpayment was made, and all such claims for refund of the amount of the overpayment must be filed with the Collector on forms furnished by him and in the manner prescribed by him. Upon the filing of such a claim and when he determines that an overpayment has been made, the Collector may refund the amount overpaid.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person conducting, carrying on or managing a retail business from a fixed place of business within the City shall:

A. Pay an annual registration tax, as set pursuant to section 3.12.300; and

B. Pay a business license tax as set pursuant to section 3.12.300 on each dollar of monthly gross receipts, computed quarterly, and payable quarterly, on forms provided by the Collector.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person conducting, carrying on or engaging in business as a contractor from a fixed place of business in the City shall pay an annual registration tax as set pursuant to section 3.12.300 and, in addition thereto, shall pay a business license tax as set pursuant to section 3.12.300 on each dollar of monthly gross receipts resulting from the operation of said business, computed quarterly and payable quarterly. Any contractor who sells merchandise or wares in connection with the business shall include these receipts when computing the tax. For the purpose of this chapter, a contractor is defined as any person who contracts for a project with another person; who is licensed by the State of California as a contractor, architect or registered civil engineer acting solely in his professional capacity; or who, in any capacity other than an employee of another with wages as the sole compensation, undertakes to or offers to undertake to or submits a bid to, or does himself or by or through others construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation, or other structure, project, development or improvement, or do any part thereof, including the erection of scaffolding, or other structures or works in connection therewith.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person, not having a fixed place of business within the City, who engages in business as a contractor within the City shall pay an annual business registration tax as set pursuant to section 3.12.300 and, in addition thereto, shall pay a business license tax as set pursuant to section 3.12.300 on each dollar of monthly gross receipts resulting from the business done within the City, computed quarterly and payable quarterly on forms provided by the Collector.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person conducting, carrying on or managing any profession, occupation, service or trade from a fixed place of business within the City, which business is not otherwise specifically licensed by this chapter, shall pay an annual registration tax as set pursuant to section 3.12.300 and, in addition thereto, shall pay a business license tax as set pursuant to section 3.12.300 on each dollar of the monthly gross receipts resulting from the operation of said business, computed quarterly and payable quarterly, with the exception of those businesses or similar businesses listed in section 3.12.200.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person carrying on, conducting or managing a wholesale business from a fixed place of business within the City shall pay an annual registration tax as set pursuant to section 3.12.300 and, in addition thereto, shall pay a business license tax as set pursuant to section 3.12.300 on each dollar of the monthly gross receipts.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person conducting, carrying on or managing any of the following businesses or businesses similar in nature within the City shall pay a business license tax as set pursuant to section 3.12.300 unless otherwise designated by the Collector:

A. Auctioneer, itinerant;

B. Ambulance operator;

C. Fireworks booths;

D. Christmas trees seller;

E. Billboard operator;

F. Sno-Cone, ice cream or food by vehicle operator;

G. Trimming/yard/trash hauling servicers;

H. Day nursery operator;

I. Fortunetelling.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person whether residing within the City, or outside the City, who is engaged in the business of renting or leasing any building, structure, or real property within the City to other persons for compensation shall pay a business license tax as set pursuant to section 3.12.300. It is the intention of the City Council pursuant to the provisions of this Section to impose a business license tax upon those persons who rent or lease single-family residential units (including mobilehome park or trailer court units or space rental), multiple-family residential units (including hotels, motels, boarding houses, apartment houses, duplexes, triplexes or fourplexes), commercial buildings, and industrial buildings.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person who, in the City, engages in the business of conducting, carrying on, exhibiting, or maintaining any of the hereinafter listed amusements, games or entertainments shall pay a quarterly or daily license tax as set pursuant to section 3.12.300:

A. Carnival;

B. Circus;

C. Traveling side show;

D. Public dance, where admission is charged;

E. Moving picture or theatrical show, at a fixed place within the City;

F. Moving picture or theatrical show, other than those having a fixed place in the City;

G. Merry-go-rounds, ferris wheels, and other mechanical riding devices, when not operated as a part of a carnival or circus.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Every person not having a fixed place of business within the City, and not being herein otherwise licensed or classified, who delivers goods, wares, or merchandise of any kind by vehicle or who provides any service by the use of vehicles in the City, shall pay a quarterly license tax as set pursuant to section 3.12.300; provided, that in the case of businesses also soliciting door-to-door, the rates in section 5.04.310 [2] shall also apply; provided, that any such person may elect to pay a license tax under the appropriate classification of section 3.12.150, measured by gross receipts from business done within the City and further provided that any such person who makes deliveries of goods, wares, or merchandise of any kind to only one place of business within the City shall pay a license tax as set pursuant to section 3.12.300.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Footnotes:

--- (2) ---

Editor's note— The provisions originally codified in 5.04.310, which pertained to restrictions on soliciting and peddling, have been removed from the Code.

Every person not having a fixed place of business within the City who engages in business within the City and is not subject to the provisions of section 3.12.230 shall pay a license tax at the same rate prescribed herein for persons engaged in the same type of business from and having a fixed place of business within the City.

(Ord. No. 2020-1058, § 4, 3-23-2020)

The Collector may make rules and regulations not inconsistent with the provisions of this chapter as may be necessary or desirable to aid in the enforcement of the provisions of this chapter.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. The Collector is directed to enforce each and all of the provisions of this chapter.

B. The Chief of Police shall render such assistance in the enforcement hereof as may from time to time be required, by the Collector or the City Council.

C. The Collector, in the exercise of the duties imposed upon him under this Title and acting through his deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the City to ascertain whether the provisions of this chapter have been complied with.

D. The Collector and each and all of his or her assistants and any police officer shall have the power and authority (upon obtaining an inspection warrant) to enter free of charge, and at any reasonable time, any place of business required to be licensed by this chapter, and demand an exhibition of its license. Any person having such license theretofore issued, in his possession or under his control, who willfully fails to exhibit it on demand, shall be guilty of a misdemeanor. It shall be the duty of the Collector and each of his assistants to cause a complaint to be filed against any and all persons found to be violating any of these provisions.

E. Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any officer or employee of this City any material fact in procuring the license or permit or in failing to procure said license or permit after due notification, as provided for shall be deemed guilty of a misdemeanor.

(Ord. No. 2020-1058, § 4, 3-23-2020)

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

(Ord. No. 2020-1058, § 4, 3-23-2020)

All remedies prescribed hereunder shall be cumulative and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof.

(Ord. No. 2020-1058, § 4, 3-23-2020)

A. Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the City, and shall remain subject to the regulatory provisions of other ordinances.

B. 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 January 1, 2019, 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.

C. Where a license for revenue purposes has been issued to any person by the City prior to January 1, 2019, the tax paid for the business for which the license has been issued, and the term of such license has not expired, then the license tax prescribed for said business by this chapter shall not be payable until the expiration of the term of such unexpired license.

(Ord. No. 2020-1058, § 4, 3-23-2020)

All business license taxes authorized by the provisions of this chapter shall be set and established or modified from time to time by resolution of the City Council. The resolution shall identify the specific category of business or type of fee authorized by this chapter, state the amount of the tax rate applicable to each such category, and state the effective date of such tax rates.

Prior to passing any such resolution establishing or modifying any tax rate pursuant to this section, the City Council shall hold at least one public hearing. Notice of said public hearing shall be published one time in the Ceres Courier, the official newspaper of the City, at least ten days prior to the public hearing.

(Ord. No. 2020-1058, § 4, 3-23-2020)