Coalinga Municipal Code Art. 1 Taxation and Control

It shall be unlawful for any person either for himself or for any other person, to commence or carry on any business taxed pursuant to this article in the City, without having procured a business certificate from said City, and the carrying on of any business without first having procurred a certificate from said City shall constitute a separate violation of this Code for each and every day that such business is so carried on.

(Ord. 546, eff. July 2, 1988)

For the purpose of the business tax provisions of this article certain words and phrases are defined and certain provisions shall be construed as herein set out, unless it shall be apparent from their context that a different meaning is intended.

(Ord. 546, eff. July 2, 1988)

The term "business" includes all activities engaged in or caused to be engaged in within this City with the object of gain, benefit or advantage, whether direct or indirect, to the taxpayer or to another or to others, but shall not include the services rendered by an employee to his employer or a casual or isolated transaction. Although an activity of a taxpayer may be incidental to another or other of his business activities, each such activity shall be considered to be business engaged in within the meaning of this article.

(Ord. 546, eff. July 2, 1988)

"Sale" or "sell" shall be deemed to include and refer to: The making of any transfer of title, in any manner or any means whatsoever, to property for a price, and to the serving, supplying or furnishing, for a price, and to the serving, supplying or furnishing, for a price of any property fabricated or made at the special order of customers who do or do not furnish directly or indirectly the specifications threfor. A transaction whereby the possession of property is transferred, but 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 the law.

(Ord. 546, eff. July 2, 1988)

"Engaging in business" means commencing, conducting or continuing in business and also the exercise of corporate or franchise powers as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business.

(Ord. 546, eff. July 2, 1988)

"Gross receipts" except as otherwise specifically provided, means the gross receipts of the preceding year of the taxpayer or part thereof, and is defined as follows:

The total amount received or receivable from all sales; the total amount of compensation 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 is done as a part of or in connection with the sale of materials, goods, wares, or merchandise; and grains realized from trading in stocks or bonds, interest, discounts, rents, royalties, fees, commissions, 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, except the following shall be excluded therefrom:

(a) Cash discounts allowed and taken on sales;

(b) Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales prices shall be included as gross receipts;

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

(d) Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as it's refunded either in cash or by credit;

(e) Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;

(f) Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those from whom collected, provided the agent or trustee has furnished the City with the names and addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustee;

(g) Cash value of sales, trades or transactions between departments or units of the same business;

(h) Transactions between partnership and its partners;

(i) Receipts from services or sales in transactions between affiliated corporations. Any affiliated corporation is a corporation: (i) The voting and nonvoting stock of which is owned at least eighty percent by such other corporation with which such transaction is had; or (ii) which owns at least eighty (80) percent of the voting and nonvoting stock of such other corporation; or (iii) at least eighty (80) percent of the voting and nonvoting stock of which is owned by a common parent which also has such ownership of the corporation with which such transaction is had;

(j) Receipts from investments where the holder of the investment receives only interest and/or dividends;

(k) Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business.

(Ord. 546, eff. July 2, 1988)

"Person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

(Ord. 546, eff. July 2, 1988)

A separate certificate must be obtained for each and every branch establishment or separate place of business of which a business is carried on.

(Ord. 546, eff. July 2, 1988)

The taxes prescribed by the provisions of this article constitute a tax for revenue purposes, and are not regulatory permit fees. The payment of a business tax required by this article, and its acceptance by the City, and the issuance of a certificate to any person shall not entitle the holder thereof to carry on any business unless he has complied with all of the requirements of this Code and all other applicable laws, nor to carry on any business in any building or on any premises designated in such certificate in the event that such building or premises are situated in a zone or locality in which the conduct of such business is in violation of any law.

(Ord. 546, eff. July 2, 1988)

The following information for each business tax certificate article shall be available for inspection by the public during business hours:

(a) The name and address of the business;

(b) The name in which the certificate is issued;

(c) The name and address of the owner of the business, if such name and address are shown on the records filed pursuant to this article.

The Director of Finance may enact such regulations as are necessary to permit reasonable public access to the information. Such regulations may prescribe the time and manner in which to receive and act upon requests for such information.

(Ord. 546, eff. July 2, 1988)

Every person required to have a certificate under the business tax provisions of this article shall make application for the same to the Finance Department of the City, and upon payment of the prescribed tax to said department, said department shall issue to said person a certificate which shall contain (1) the name of the business; (2) the place where the business is to be carried on; (3) the type of business; (4) the date of the expiration of such certificate; and such other information as the Finance Department shall determine.

(Ord. 546, eff. July 2, 1988)

All annual business tax certificates issued under this article, except the first certificate issued to newly established business, shall be considered to be issued on January 1st of each year and shall expire on December 31st of the same year.

All businesses that are conducting their usual and customary activities as of January 1st of the current tax year are required to pay, in full, for the entire certificate year.

(Ord. 546, eff. July 2, 1988)

Every person subject to a business tax or registration fee shall, before the business tax or registration fee becomes delinquent, file with the Finance Department a written statement setting forth the then applicable factor or factors that constitute the measure of the fee, togther with such other information as shall be required by the Finance Department to enable it to administer the provisions of this article and shall pay at such time the amount of the fee computed thereon.

The written statment provided for herein shall be on a form prescribed by the Finance Department and shall include a declaration substantially as follows: "I declare under penalty of perjury that to my knowledge all information contained in this statement is true and correct".

(Ord. 546, eff. July 2, 1988)

A person applying for a first certificate for a newly established business shall pay a registration fee in the amount of twenty-five dollars ($25.00). In addition, at the end of the calendar year in which the business commenced, but no later than March 1st of the following year, the taxpayer will be required to file an amended declaration and pay a first year tax, less registration fee, based upon the tax base and rate applicable to the business classification. If the business terminates prior to the end of the year in which the business began, the taxpayer will be liable for a first year tax based upon the tax base and rate applicable of the business classification for the period that the business was in operation.

(Ord. 546, eff. July 2, 1988)

In addition to the information required to be included in the written statement of the applicant for a first business tax certificate and of the taxpayer for a renewal of certificate, as provided in Sections 3-1.112 and 3-1.113 above, each applicant who is subject to the Contractors License Law, shall state that he is licensed under such law, that this license is in full force and effect, and the number thereof, or, facts which entitle him to such exemption.

(Ord. 546, eff. July 2, 1988)

No statement in this article required shall be conclusive upon the City or any department, division, officer or agent thereof, and whenever it shall appear to the satisfaction of the Finance Department and it shall have reason to believe that such statement does not set forth the true facts of the business for which a certificate is required, the said department may withhold the issuance of a certificate therefor until such time as the applicant shall furnish to the said Department satisfactory evidence of the truth of such statement. If such evidence is not furnished to the Finance Department within a reasonable time, or should it at any time appear to said department that by reason of error, misrepresentation, fraud, or any other cause whatsoever, the business tax has not been properly fixed for any certificate issued, the said department shall give not less than five (5) days written notice to the taxpayer to show cause, at a time and place fixed in said notice, why a tax to be determined by the said department and specified in said notice, should not be fixed for such certificate. At such hearing the taxpayer shall appear and offer evidence why such specified tax should not be fixed as the business tax. After such hearing, or in the event the taxpayer fails to appear, the Finance Department shall determine the proper tax to be charged forthwith give written notice to the taxpayer of such determination and the amount of the tax.

Any tax finally determined shall be due and payable as of the date the original business tax was due and payable, together with any penalties that may be due thereon; provided, however, if such tax shall be fixed in accordance with the original statement of the taxpayer, then no penalty shall attach to such tax by reason of any delinquency.

(Ord. 546, eff. July 2, 1988)

The statements filed pursuant to the provisions of this article shall be deemed confidential in character and shall not be subject to public inspection, and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration of this article.

(Ord. 546, eff. July 2, 1988)

No certificate granted or issued under the business tax provisions of this article shall be in any manner transferred or assigned, or authorize any person other than the person named in the certificate to carry on the business therein named or to transact such business at any place other than the place or location therein named without the written consent of the Finance Director endorsed thereon. At the time such certificate is assigned or transferred on the place of location for the carrying on of such business is changed, the person applying for such transfer or change shall pay to the Finance Department a fee of twenty-five dollars ($25.00) for each assignment or transfer.

(Ord. 546, eff. July 2, 1988)

Every person having a business tax certificate and carrying on a business at a fixed place of business shall keep such certificate posted and exhibited while in force in some conspicuous part of said place of business.

Every person having such a certificate and not having a fixed place of business shall carry such certificate with him/her at all times while carrying on the business for which the same was granted.

(Ord. 546, eff. July 2, 1988)

The Finance Department shall issue a duplicate business tax certificate to replace any certificate issued under the business tax provisions of this article which has been lost or destroyed at no cost to the taxpayer for the first duplicate certificate. Each replacement certificate issued thereafter will be issued at a cost of twenty-five dollars ($25.00)s.

(Ord. 546, eff. July 2, 1988)

Every annual business tax or registration fee renewal which is not paid on or before March 1st of each year, or within fifteen (15) days after commencing business for a newly established business, is hereby declared delinquent, and the Finance Department shall thereupon add to said business tax registration fee and collect a penalty of twenty-five (25) percent of the tax so delinquent.

(Ord. 546, eff. July 2, 1988)

Whenever a check is submitted in payment of a business tax and said check is subsequently returned unpaid by the bank upon which said check is drawn, and the check is not redeemed prior to the expiration of the renewal or registration due date, the taxpayer will be liable for the tax amount plus penalties and interest as provided for in this article.

(Ord. 546, eff. July 2, 1988)

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

(Ord. 546, eff. July 2, 1988)

The Finance Director is not required to send a renewal, delinquency or other notice or bill to any persons subject to the provisions of this article and failure to send such notice or bill shall not effect the validity of any tax or penalty due under the provisions of this article.

(Ord. 546, eff. July 2, 1988)

In addition to the penalties imposed, any person who fails to remit any business tax imposed by the business tax provisions of this article shall pay interest at the rate of one and one-half (1½) percent per month or fraction thereof, on the amount of the tax and penalties from the date on which the business tax first became delinquent until paid.

(Ord. 546, eff. July 2, 1988)

The amount of any business tax and penalty imposed by this article shall be deemed a debt to the City; and any person carrying on any business without first having procured a business tax certificate from said City shall be liable to any action in the name of said City in any court of competent jurisdiction, for the amount of tax and penalties imposed on such business.

The amount of tax, penalty and interest imposed under the provisions of this article is hereby assessed against the business property on which the tax is imposed on those instances where the owner of the business and the business property are one and the same. If the taxes are not paid when due, such tax shall constitute an assessment against such business property and shall be a lien on the property for the amount thereof, which lien shall continue until the amount thereof including all penalties and interest are paid, or until it is discharged of record.

(Ord. 546, eff. July 2, 1988)

The Finance Director shall file with the City Manager a written notice of those persons on whom the City will file liens. Upon receipt of such notice the City Manager shall present the same to the City Council, and the City Council shall forthwith, by resolution, fix a time and place for a public hearing on such notice.

The Finance Director shall cause a copy of such resolution and notice to be served upon the owner of the business/business property not less than five (5) days prior to the time fixed for such hearing. Such service shall be by mailing a copy of such resolution and notice to the owner of the business/business property at his/her last known address. Service shall be deemed complete at the time of deposit in the United States Mail.

(Ord. 546, eff. July 2, 1988)

With the confirmation of the report by the City Council, the delinquent tax charges contained therein which remain unpaid by the owner of the business/business property shall constitute a special assessment against said business property and shall be collected at such time as is established by the County Assessor for inclusion in the next property tax assessment.

The Finance Director shall turn over to the County Assessor for inclusion in the next property tax assessment the total sum of unpaid delinquent charges consisting of the delinquent business taxes, penalties and interest at the rate of eighteen (18) percent per annum from the date of recordation to the date of lien, an administrative charge of thirty dollars ($30.00) and a seven dollar ($7.00) release of lien fee. Thereafter, said assessment may be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure of sale as provided for delinquent ordinary municipal taxes. The assessment liens shall be junior to liens previously imposed upon the property and paramount to all other liens except for those of state, county and municipal taxes with which it shall be on parity. The lien shall continue until the assessment and all interest and charges due and payable thereon are paid. All taxes applicable to the levy, collection and enforcement of municipal taxes shall be applicable to said special assessments.

(Ord. 546, eff. July 2, 1988)

The conviction and punishment of any person for transacting any business without a business tax certificate shall not excuse or exempt such person from the payment of any business tax due or unpaid at the time of such conviction, and nothing herein shall prevent a criminal prosecution of any violation of the business tax provisions of this article.

(Ord. 546, eff. July 2, 1988)

Every person, firm or corporation who, at a fixed and permanent place of business or otherwise, sells any goods, wares or merchandise or articles or thing of any description whatsoever, shall pay the following license fees:

(a) When the average monthly sales are less than one thousand dollars ($1,000.00), the sum of seven dollars fifty cents ($7.50) per quarter;

(b) When the average monthly sales are one thousand dollars ($1,000.00), but less than two thousand dollars ($2,000.00), the sum of twelve dollars fifty cents ($12.50) per quarter;

(c) When the average monthly sales are two thousand dollars ($2,000.00), but less than three thousand dollars ($3,000.00), the sum of fifteen dollars ($15.00) per quarter;

(d) When the average monthly sales are three thousand dollars ($3,000.00), but less than five thousand dollars ($5,000.00), the sum of twenty dollars ($20.00) per quarter.

(e) When the average monthly sales are five thousand dollars ($5,000.00) and over, the sum of one dollar fifty cents ($1.50) per month, payable quarterly, shall be paid for each increase of one thousand dollars ($1,000.00), or portion thereof, in sales per month over and above the twenty dollar ($20.00) rate for five thousand dollars ($5,000.00).

(Ord. 546, eff. July 2, 1988)

Every person, firm or corporation, owning, operating or conducting any wholesale business outside the City, and who carries on or engages in the business of selling or delivering to retailers the goods, wares, merchandise or services of said business in the City, directly or indirectly, individually or by agent, representative or otherwise, shall pay to the City a quarterly license fee as set forth in Section 3-1.130 above. The minimum quarterly payment shall be five dollars ($5.00) per quarter; this rate shall apply when the average monthly sales are less than five hundred dollars ($500.00).

(Ord. 546, eff. July 2, 1988)

(a) The term "temporary business" means any business operated or conducted in the City for less than a cumulative total of thirty (30) days in a calendar year.

(b) Notwithstanding any other provision of this chapter, no business certificate shall be issued for any temporary business, and no person, firm or corporation shall commence or carry on a temporary business within the City, unless it is one of the following:

(1) A temporary business that has a point of sale within the City and is conducted as part of an existing business then operating in the City, as evidenced by a current business certificate;

(2) A temporary business conducted as part of a special event permitted by the City to take place on public property or public rights-of-way;

(3) A temporary business conducted or directly sponsored by a non-profit organization that maintains a business address within the City.

(§ 1, Ord. 691, eff. April 30, 2004)