Covina Municipal Code Art. I Business Licenses Generally

For the purposes of CMC § 5.04.010 through 5.04.580 the following words and phrases shall have the meanings respectively ascribed to them in this section:

A. Average Number of Persons Employed. The average number of persons employed daily in the applicant's business during the previous year within the city shall be determined by ascertaining the total number of hours of service performed by all employees of the applicant within the city during the previous year and dividing the total number of hours of service thus obtained by the number of hours of service constituting a year's work of one full-time employee according to the custom or laws governing such employment. In computing the average number of persons employed, fractions of numbers shall be excluded;

B.

"Business"

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

C.

"Collector"

means the city finance director or other city officer charged with the administration of this chapter;

D.

"Employee"

means all persons engaged in the operation or conduct of any business, whether as member of the owner's family, agent, manager, solicitor, and any and all other persons employed or working in the business. For purposes of computing tax based on employees, the average number of employees, as defined in subsection (A) of this section, will be used;

E.

"Fixed place of business"

means the premises within the city where a business is continuously conducted from day to day and regularly kept open for the purposes of such business. "Regular place of business" has the same meaning as "fixed place of business";

F.

"Sworn statement"

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

(1964 Code § 15.1)

The provisions of CMC § 5.04.010 through 5.04.580 are enacted solely to raise revenue for municipal purposes and are not intended for regulation.

(1964 Code § 15.2)

Persons required to pay a license tax for transacting and carrying on any business under CMC § 5.04.010 through 5.04.580 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.

(1964 Code § 15.3)

A. Any license obtained by fraud or misrepresentation shall, upon proof of such fraud or misrepresentation as provided in subsection (C) of this section, be revoked.

B. The city council may revoke, amend, modify, or impose such other or further terms, conditions or restrictions on the terms, conditions or restrictions theretofore placed in said license as the council finds reasonable or necessary to ensure that the business enterprise, occupation or event will not be contrary to, inimical to or jeopardize the preservation of the public peace, safety or welfare of the city or its inhabitants or to be detrimental to other properties or businesses in the vicinity. For purposes of this subsection, there shall be a rebuttable presumption that a business enterprise, occupation or event is contrary to, inimical to or jeopardizes the preservation of the public peace, safety or welfare if there have been at least six verified calls for response made to either the Covina police department or any other law enforcement agency pertaining to any criminal assault, battery, personal injury, vandalism or destruction of property, disturbance of the peace, or disorderly conduct which has occurred at the business enterprise, occupation or event, within any 90-calendar-day period.

C. Prior to any modification or revocation of license, the city manager shall, by his order, give the licensee notice of intent to modify or revoke such license, stating the grounds therefor. The matter shall be set for hearing before the city council and the licensee shall be notified in writing of said hearing not less than 15 days prior thereto. If the council finds upon substantial evidence that such license was obtained by fraud or misrepresentation or that subsection (B) of this section is applicable, the council shall order the license revoked or modified. From and after the making of such order, such license shall be null and void or modified in accordance with the terms imposed by the council.

D. Upon any modification or revocation of license, no refund of any license tax shall be made and the tax shall be forfeited to the city.

E. No business shall be conducted or operated in any manner during any period of license revocation.

(Ord. 07-1937 § 1, 2007; Ord. 1689 § 1, 1989; Ord. 1513 § 1, 1982)

No license shall be issued to engage in any business when the provisions of this code or any other law of this city require a permit to be obtained as a prerequisite to engaging in such business until such permit is first obtained. Any license issued in violation of this section is void.

(1964 Code § 15.4)

A. Any permit granted pursuant to the provisions of this code may be by the city council revoked or suspended as in its discretion may seem just and equitable, or for any reason for which the granting of such permit may be lawfully denied, including but not limited to the operation of a permitted business, occupation or event in a disorderly manner. For purposes of this subsection, there shall be a rebuttable presumption that any permitted business, occupation or event is being operated in a "disorderly manner" if there have been at least six verified calls for response made to either the Covina police department or any other law enforcement agency pertaining to any criminal assault, battery, personal injury, vandalism or destruction of property, disturbance of the peace, or disorderly conduct which has occurred at the permitted business, occupation or event, within any 90-calendar-day period.

B. Such revocation or suspension shall be made only upon a hearing granted to the holder of a permit before the city council after not less than five days' written notice to such permit holder, stating the ground of the complaint and stating the time and place where such hearing will be held. In the event of such revocation or suspension, any license or other certificate issued in connection with the granting of such permit shall, by the holder thereof, be surrendered to the finance director. Such hearing may, by the city council, be continued over from time to time and its findings shall be final and conclusive upon the matter. Such revocation or suspension of any permit shall be in addition to other penalties more specifically provided in CMC § 5.04.010 through 5.04.580.

(Ord. 07-1937 § 2, 2007; 1964 Code § 15.5)

There are imposed upon the businesses, trades, professions, callings and occupations specified in CMC § 5.04.010 through 5.04.580 license taxes in the amounts hereinafter prescribed. It is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so and paying the tax hereinafter prescribed or without complying with any and all applicable provisions of CMC § 5.04.010 through 5.04.580.

This section shall not be construed to require any person to obtain a license prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state. Persons not so required to obtain a license prior to doing business within the city nevertheless shall be liable for payment of the tax imposed by CMC § 5.04.010 through 5.04.580.

(1964 Code § 15.6)

A separate license shall be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of CMC § 5.04.010 through 5.04.580 shall not be deemed to be separate places of business or branch establishments.

(1964 Code § 15.7)

When any person shall by use of signs, circulars, cards, telephone book or newspapers advertise, hold out or represent that he is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he is in business in the city, and such person fails to deny by a sworn statement given to the collector that he is conducting a business in the city after being requested to do so by the collector, then these facts shall be considered prima facie evidence that he is conducting a business in the city.

(1964 Code § 15.9)

No license tax shall be required for, of or from the following:

A. Those exempt from municipal license taxes by virtue of the Constitution and the laws of this state or the United States;

B. Any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any individual; nor shall any license tax be required for any enterprise or entertainment when the receipts derived therefrom are to be apportioned to any church or school or to any religious, benevolent or charitable purpose within the city;

C. Upon written recommendation of a regularly licensed and practicing physician or welfare agency in Los Angeles County, dated within one year of the application to the effect that the applicant is physically unable to obtain a livelihood by manual labor, and stating the nature of physical infirmity, a person may apply for partial or complete exemption from tax liability for the current license period;

D. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license provided for in CMC § 5.04.010 through 5.04.580 upon the grounds that he is an honorably discharged or released soldier, sailor or marine of the United States or Confederate States who is physically unable to obtain a livelihood by manual labor and who is a qualified elector of the state, as provided by Section 16001 of Business and Professions Code or other law of this state, shall, in addition to any other information required by CMC § 5.04.010 through 5.04.580 also file with the collector a certificate of a regularly licensed and practicing physician dated within one year of the application, to the effect that the applicant is physically unable to obtain a livelihood by manual labor and stating the nature of the incapacitation; provided, that no exempt license shall be issued except in cases where the veteran applying therefor is actively engaged in the management and conduct of the business for which the exemption is requested;

E. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license provided for in CMC § 5.04.010 through 5.04.580 upon the grounds that such license casts a burden upon his right to engage in commerce with foreign nations or among the several states or conflicts with the regulations of the United States Congress respecting interstate commerce shall file a verified statement with the collector disclosing the interstate or other character of his business entitling such exemption. Such statement shall contain the name and location of the company or firm for which the orders are to be solicited or secured, the name of the nearest local or state manager, if any, and his address, the kind of goods, wares or merchandise to be delivered, the place from which the same are to be shipped or forwarded, the method of solicitation or taking orders, the location of any warehouse, factory or plant within the state, the method of delivery, the name and location of the residence of the applicant and any other facts necessary to establish the identity of applicant and such claim of exemption. A copy of the order blank, contract form or other papers used by such person in taking orders shall be attached to the sworn statement for the information of the collector;

F. Any person under the age of 18 who is in business for himself; provided, that the gross income of the minor does not exceed $1,500 per year.

(Ord. 1203 § 1, 1973; 1964 Code § 15.10)

Nothing in CMC § 5.04.100 or any subsection thereof shall exempt any person from complying with any of the regulatory measures or provisions of this code save and except the payment of license taxes required hereby.

(1964 Code § 15.11)

Any person claiming an exemption pursuant to CMC § 5.04.100 and 5.04.110 shall file a sworn statement with the collector stating the facts upon which exemption is claimed.

(1964 Code § 15.12)

The city council shall, upon the proper showing contained in the sworn statement, direct the finance director to issue a license to such person claiming exemption under CMC § 5.04.100 through 5.04.120 without payment to the city of the license tax required by CMC § 5.04.010 through 5.04.580.

(1964 Code § 15.13)

The city council shall revoke any license granted pursuant to the provisions of CMC § 5.04.100 through 5.04.130 upon information that the licensee is not entitled to the exemption as provided in CMC § 5.04.010 through 5.04.580.

(1964 Code § 15.14)

Every person required to have a license under the provisions of CMC § 5.04.010 through 5.04.580 shall make application as hereinafter prescribed for the same to the collector of the city, and upon the payment of the prescribed license tax, and if the collector is satisfied that the premises and operations therein conform to the provisions of this code and other regulatory ordinances of the city, the collector shall issue to such person a license which shall contain the following information:

A. The name of the person to whom the license is issued;

B. The business licensed;

C. The place where such business is to be transacted and carried on;

D. The date of the expiration of such license;

E. Such other information as may be necessary for the enforcement of the provisions of this code. The license issued by the collector for the purpose of posting in places of business shall contain no reference to the amount of license tax paid.

(1964 Code § 15.15)

A. Upon a person's making application for the first license to be issued hereunder or for a newly established business, such person shall furnish to the collector a sworn statement, upon a form provided by the collector, setting forth the following information:

1. The exact nature or kind of business for which a license is requested;

2. The place where such business is to be carried on;

3. The names and places of residence for those owning the business;

4. In the event that an application is made for the issuance of a license to a corporation or a partnership, the application shall set forth the names and places of residence of the officers or partners thereof;

5. If the amount of the license tax to be paid by the applicant is based upon the average number of employees, such application shall set forth the average number of employees for the applicable period;

6. A certification that the business will be operated in accordance with all applicable federal, state and city laws and regulations;

7. Any further information which the collector may require to enable him to issue the type of license applied for.

B. If the amount of the license tax to be paid by the applicants is measured by average number of employees, he shall estimate the average number of employees for the period to be covered by the license to be issued. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, that 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 such license was issued, furnish the collector with a sworn statement showing the actual number of employees during such period and pay any additional amount of license tax due at that time.

C. Where application is made for a license to do business in the city, the collector may require approval of such application from the police, fire, health, building and planning departments showing that the premises and operations therein conform to the provisions of this code and other regulatory ordinances of the city.

D. A business license may be issued to an applicant showing only the address of a place of residence in those cases where the city requires the applicant to have a business license for business being conducted elsewhere in the city and the applicant can provide no other business address; provided, however, no business may be conducted at such place of residence.

(Ord. 06-1933 § 1, 2006; Ord. 1429 § 1, 1979; 1964 Code § 15.16)

No license issued pursuant to this title shall be construed as authorizing the conduct or continuance of any unlawful business or the provision or sale of any service or product that is illegal under the laws of the United States, the laws of the state of California, or any ordinance of the city. Licenses issued to unlawful businesses or businesses providing or selling illegal services or products shall be subject to revocation in accordance with CMC § 5.04.035. This section is declaratory of existing law.

(Ord. 06-1933 § 2, 2006)

In all cases, the applicant for the renewal of a license shall submit to the collector for his guidance in ascertaining the amount of the license tax to be paid by the applicant a sworn statement, upon a form to be provided by the collector, setting forth such information concerning the applicant's business during the preceding year as may be required by the collector to enable him to ascertain the amount of the license tax to be paid by the applicant pursuant to the provisions of CMC § 5.04.010 through 5.04.580.

(1964 Code § 15.17)

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 therein contained shall be subject to audit and verification by the collector, his 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 tax due.

(1964 Code § 15.18)

The statement filed pursuant to the information required by the collector in ascertaining the amount of license tax to be paid shall be deemed confidential in character, and shall not be subject to public inspection; provided, that nothing in this section shall be construed to prevent:

A. The disclosure to or the examination of records and equipment by another city official, employee or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of CMC § 5.04.010 through 5.04.580 or collecting taxes imposed hereunder;

B. The disclosure of information to or the examination of records by federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena;

C. The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any license tax liability of the particular taxpayers to the city;

D. The disclosure after the filing of a written request to that effect to the taxpayer himself or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, that the city attorney approves each such disclosure and that the collector may refuse to make any disclosure referred to in this subsection when in his opinion the public interest would suffer thereby;

E. The disclosure of the names and addresses of persons to whom licenses have been issued and the general type or nature of their business;

F. The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of license taxes, or submits an offer of compromise with regard to a claim asserted against him by the city for license taxes, or when acting upon any other matter;

G. The disclosure of general statistics regarding taxes collected or business done in the city.

(1964 Code § 15.19)

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 CMC § 5.04.010 through 5.04.580 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 may be able to obtain.

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

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 Covina, 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 10 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.

(1964 Code § 15.20)

Any person aggrieved by any decision of the collector with respect to the issuance or refusal to issue such license may appeal to the council by filing a notice of appeal with the city clerk. The council shall thereupon fix a time and place for hearing such appeal. The city clerk shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office at Covina, California, postage prepaid, addressed to such person at his last known address. The council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provisions of this code.

(1964 Code § 15.21)

No license issued pursuant to CMC § 5.04.010 through 5.04.580 shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may, upon application therefor and paying a fee in an amount that may be set from time to time by a resolution of the city council, have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business is or is to be moved; provided further, that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer shall not be prohibited by this section. For the purpose of this section, stockholders, bondholders, partnerships or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corporation or other entity.

(Ord. 09-1975 § 1, 2009; 1964 Code § 15.22)

A duplicate license may be issued by the collector to replace any license previously issued under CMC § 5.04.010 through 5.04.580 which has been lost or destroyed, upon the licensee filing statement of such fact and at the time of filing such statement paying to the collector a duplicate license fee as established by the city council on occasion by resolution.

(Ord. 04-1906 § 1, 2004; 1964 Code § 15.23)

An application for a business license to be issued under CMC § 5.04.010 through 5.04.580 shall be accompanied by a fee for processing as established by the city council on occasion by resolution.

(Ord. 04-1906 § 2, 2004)

A. Any licensee transacting and carrying on business at a fixed place of business in the city shall keep the license posted in a conspicuous place upon the premises where such business is carried on.

B. Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license upon his person at all times while transacting and carrying on the business for which it is issued.

C. Whenever identifying stickers, tags, plates or symbols have been issued for each vehicle, device, machine or other piece of equipment included in the measure of a license tax, the person to whom such stickers, tags, plates or symbols have been issued shall keep firmly affixed upon each vehicle, device, machine or piece of equipment the identifying sticker, tag, plate or symbol which has been issued therefor at such locations as are designated by the collector. Such sticker, tag, plate or symbol shall not be removed from any vehicle, device, machine or piece of equipment kept in use during the period for which the sticker, tag, plate or symbol is issued.

D. No person shall fail to affix, as required in this section, any identifying sticker, tag, plate or symbol to the vehicle, device, machine or piece of equipment for which it has been issued at the location designated by the collector, or to give away, sell or transfer such identifying sticker, tag, plate or symbol to another person, or to permit its use by another person.

(1964 Code § 15.24)

All licenses, unless otherwise expressly stated in CMC § 5.04.010 through 5.04.580, shall be annual licenses and shall be payable in advance in lawful money of the United States to the collector on the first day of January of each year, and all such licenses shall expire on December 31st of each year; provided, that license taxes covering new operations commenced after the first day of July may be prorated for the balance of the license period to be 75 percent of the annual license tax prescribed for such business, and new operations commenced after the first day of October may be prorated for the balance of the license period to be 50 percent of the annual license tax prescribed for such business.

Licenses for any shorter period of time shall be payable in advance as issued and shall expire at the close of the period of which the same may be issued. No greater or lesser amount shall be charged or received than is provided in CMC § 5.04.010 through 5.04.580, and no license shall be issued for any period of time other than as provided in CMC § 5.04.010 through 5.04.580.

(Ord. 1447 § 1, 1979; 1964 Code § 15.25)

For failure to pay a license tax when due, the collector shall add a penalty of 20 percent of the original license tax on the first day of each month after the due date thereof; provided, that the amount of such penalty to be added shall in no event exceed 100 percent of the amount of the license tax due.

(Ord. 1447 § 1, 1979; 1964 Code § 15.26)

Refund of any amount, penalty or interest which has been paid more than once or has been erroneously or illegally collected or computed may be allowed by the finance director with the approval of the city treasurer; provided, that a written claim stating the specific grounds upon which the claim is founded has been filed with the finance director within six months after the overpayment was made. Failure to file a claim within the time prescribed constitutes a waiver of any demand against the city on account of any of the foregoing. If a refund is approved, the overpayment shall be credited on any amount then due from the payor under this article, and the balance shall be refunded to the payor or his successors, administrators or executors. If disallowed, notice of disallowance shall be served by the finance director on the claimant personally or by mail. If by mail, service shall be made pursuant to Section 1013 of the Code of Civil Procedure of the state and shall be addressed to the claimant at his address as it appears in the records of the finance director.

(Ord. 1193 § 2, 1972; 1964 Code § 15.27)

It shall be the duty of the collector and he is directed to enforce each and all of the provisions of CMC § 5.04.010 through 5.04.580, and the police chief shall render such assistance in the enforcement hereof as may from time to time be required by the collector or the city council.

The collector, in the exercise of the duties imposed upon him hereunder 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 CMC § 5.04.010 through 5.04.580 have been complied with.

The collector and each and all of his assistants and any police officer shall have the power and authority to enter, free of charge and at any reasonable time, any place of business required to be licensed herein 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 the same on demand, is guilty of a misdemeanor and subject to the penalties provided for by the provisions of this code. The collector and each and all of his deputies or duly authorized assistants and any police officer are authorized and empowered to enforce the provisions of CMC § 5.04.010 through 5.04.580 by means of arrest of, including the issuance of a written notice to appear, or by causing a complaint to be filed against, any and all persons found to be violating any of said provisions.

(Ord. 1353 § 1, 1977; 1964 Code § 15.28)

The amount of any license tax and penalty imposed by the provisions of CMC § 5.04.010 through 5.04.580 is 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.

(1964 Code § 15.29)

The conviction and fine or imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business, nor shall the payment of any license tax prevent a criminal prosecution for the violation of any of the provisions of CMC § 5.04.010 through 5.04.580. All remedies prescribed under CMC § 5.04.010 through 5.04.580 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 of CMC § 5.04.010 through 5.04.580.

(1964 Code § 15.30)

Neither the adoption of CMC § 5.04.010 through 5.04.580 nor their superseding of any portion of any other ordinance of the city shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in CMC § 5.04.010 through 5.04.580, 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.

Where a license for revenue purposes has been issued to any person by the city and the tax paid for the business for which the license has been issued under the provisions of any ordinance heretofore enacted and the term of such license has not expired, then the license tax prescribed for such business by CMC § 5.04.010 through 5.04.580 shall not be payable until the expiration of the term of such unexpired license.

(1964 Code § 15.31)

Any person violating any of the provisions of CMC § 5.04.010 through 5.04.580 or knowingly or intentionally misrepresenting to any authorized officer of the city any material fact in procuring the license or permit provided for in CMC § 5.04.010 through 5.04.580 is guilty of a misdemeanor.

(1964 Code § 15.32)