Article III — LICENSE REQUIREMENTS AND EXEMPTIONS

There is imposed upon each business, trade, profession, calling and occupation specified in this chapter a license tax in the amount hereafter prescribed. It is unlawful for a person to transact business, trade, profession, calling or occupation in the city without a license or without complying with this chapter. This section does not require a person to obtain a license if the requirement conflicts with statutes of the United States or of the State. A person not so required to obtain a license is nevertheless liable for payment of the tax imposed.

(Ord. 181, Sec. 2, 1978)

When a person advertises, holds out, or represents that he is in business in the city, or when he holds an active license or permit issued by a governmental agency indicating that he is in business in the city, or when he fails to deny by a sworn statement given to the collector that he is not conducting a business in the city, after being requested to do so by the collector, then these facts are prima facie evidence that he is conducting a business in the city.

(Ord. 181, Sec. 2, 1978)

A separate license must be obtained for each branch establishment or separate place of business in which a business is carried on and for each separate type of business at the same location. A warehouse and a distributing plant used in connection with a business licensed under this chapter is not a separate place of business or branch establishment within the meaning of this section.

A person conducting two (2) or more types of businesses at the same location and under the same management but which uses a single set or integrated set of books and records, may pay only one tax calculated on all gross receipts of the businesses under the schedule that applies to the type of business which requires the highest percentage payment on such gross receipts, except that a license fee of eighty- nine dollars ($89.00) for each additional branch or location shall be paid upon issuance.

(Ord. 181, Sec. 2, 1978)

If a person believes that the license places an undue burden upon interstate commerce or violates the equal protection or due process clause of the state or federal constitution, he may apply to the collector for an adjustment of the tax. The applicant shall by affidavit and supporting testimony show the method of business and the gross volume or estimated gross volume of business and such other information as the collector considers necessary. The collector shall conduct an investigation and after obtaining the written approval of the city attorney shall fix as the license tax an amount that is reasonable and non- discriminatory. In fixing the license tax, the collector may base the license tax upon a percentage of gross receipts or other measure which assures that the license tax is uniform with that assessed on businesses of like nature. However, the amount fixed shall not exceed the license tax prescribed by this chapter. If the collector determines the gross receipts measure of license tax is 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. No additional license tax during any one calendar year may be required after the licensee pays amount equal to the annual license tax as prescribed in this chapter.

(Ord. 181, Sec. 2, 1978)

This chapter does not apply to a person transacting and carrying on a business exempt by the Constitution or statute of the United States or of the State from the payment of such taxes as prescribed.

(Ord. 181, Sec. 2, 1978)

The following organizations and activities are exempt from payment of the license tax:

A.

Business conducted as a charitable purpose or from which no profit is earned.

B.

The conduct of entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects, whenever the receipts are for a religious, educational or charitable purpose.

C.

The conduct of entertainment, dance, concert, exhibition or lecture by a religious, charitable, fraternal, educational, amateur theatrical group, military, state, county or municipal organization or association, whenever the receipts are for the purpose and objects for which the organization or association is formed, and from which profit is not derived, directly or indirectly, by any person.

(Ord. 181, Sec. 2, 1978)

A disabled veteran holding an honorable discharge from a branch of the military service of the United States is exempt from the payment of the license tax prescribed in this chapter if he is physically unable to earn a livelihood by manual labor and is a qualified voter of the State of California.

(Ord. 181, Sec. 2, 1978)

A self-employed, natural person doing business and whose gross receipts do not exceed one thousand five hundred dollars ($1,500.00) in a calendar year is exempt from this chapter.

(Ord. 343, Sec. 1, 1998)

One who solicits subscriptions for, or sells, or delivers or makes collections for, a newspaper or magazine is exempt from this chapter.

(Ord. 371, 2003)

A natural person who performs gardening, janitorial, housework or similar household or domestic services on a part-time basis and whose gross receipts do not exceed one thousand dollars ($1,000.00) per year is exempt from this chapter.

(Ord. 181, Sec. 2, 1978)

Editor's note— See minimum in 5.04.180 above.

An individual artist (1) who displays a painting, sculpture, photograph, or other examples of fine art in a public building, art gallery or business establishment and the display is incidental to the primary business conducted on the premises and is primarily for cultural and educational purposes and (2) whose gross receipts do not exceed one thousand dollars ($1,000.00) per year is exempt from this chapter.

(Ord. 181, Sec. 2, 1978)

Cross reference— See increased minimum in Section 5.04.180 above.

A person claiming an exemption under this section shall file a sworn statement with the collector stating the facts upon which exemption is claimed. In the absence of such statement substantiating the claim, the person is liable for the payment of the taxes imposed by this chapter.

Upon a proper showing contained in the sworn statement, the collector shall issue a license to a person claiming exemption under this section without payment to the city of the license tax required by this chapter.

The collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke a license granted under this section upon information that the licensee is not entitled to the exemption as provided.

(Ord. 181, Sec. 2, 1978)

The exemption from payment of license tax granted by this chapter does not exempt the person conducting the business from complying with the permit requirements of this chapter.

(Ord. 181, Sec. 2, 1978)