Cudahy Municipal Code Art. II General Provisions

This title shall apply to all persons engaged in business within the boundaries of the city. The provisions of this chapter shall apply to all businesses; provided, however, that if any provisions of Chapter 5.08 CMC are inconsistent with the provisions of this chapter as applied to a particular business or person, the provisions of Chapter 5.08 CMC shall prevail. (Ord. 505 § 1. 2002 Code § 6-2.1).

It shall be unlawful for any person to engage in or purport to engage in, either directly or indirectly, any business activity in the city without first obtaining a business license and paying the required taxes therefor. A person may only engage in business within the city if he or she has a valid business license issued for that business pursuant to this chapter and he or she is in full compliance with all of the provisions of this chapter and all applicable laws. (Ord. 505 § 1. 2002 Code § 6-2.2).

A person engaged in business in the city may apply for a business license under a fictitious name only if the name has been registered in compliance with all of the provisions of applicable federal, state and local laws and regulations. In all other cases, a person engaged in business in the city must obtain a business license in the true name of the person or persons applying for the business license. (Ord. 505 § 1. 2002 Code § 6-2.3).

No license issued under the provisions of this chapter and no provision of this chapter shall be construed as authorizing a person to engage in any illegal or unlawful business. (Ord. 505 § 1. 2002 Code § 6-2.4).

(1) Affidavit – First License. An applicant for a first license or for a newly established business shall furnish to the director a written statement on a form provided by the director, sworn to or before a person authorized to administer oaths, setting forth such information as may be necessary to determine the amount of the license tax to be paid by the applicant. 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 for the period to be covered by the license, and report the applicable tax therefor. In the case of auto emission testing stations, the applicant shall estimate the number of vehicles to be tested for the period to be covered by the license, and report the applicable tax therefor. Such reports may be used in determining the amount of license tax to be paid by the applicant.

(2) Affidavit – Renewal of License. An applicant for a renewal of a license shall submit to the director a written statement on a form to be provided by the director, written under a penalty of perjury, or sworn to before a person authorized to administer oaths, setting forth such information concerning the applicant’s business during the preceding year as may be required by the director to enable him to ascertain the amount of the license tax to be paid by said applicant pursuant to the provisions of this title.

(3) Certain Dealers, Required Records. Each licensee or other person engaged in business as a secondhand dealer, pawnshop dealer, junk dealer, salvage yard, or auctioneer shall maintain and keep such records as may be required by the director and make such reports to such person or other law enforcement agencies as may be required by such agencies. It is the intention of the council to require the same reports, records, and documents to be kept and submitted by the persons engaging in such businesses as are required by the provisions of the Los Angeles County Code regulating and licensing businesses in the unincorporated areas of the county.

(4) Statements Not Conclusive. No affidavits, records or other statements made by an applicant or licensee 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 statements shall be subject to audit and verification by the director. All licensees, applicants for licenses, and persons engaged in business in the city are hereby required to permit an examination of such books and records as may be necessary to verify or ascertain the amount of license fees due. (Ord. 505 § 1. 2002 Code § 6-2.5).

(1) Separate License Requirement. A separate business license is required for each branch or location of a business and for each separate type of business at a single location. Each license shall authorize the licensee to engage in only the business stated therein at the location or in the manner designated in such license; provided, however, that a person may obtain licenses for separate locations either by submitting a combined application for two or more locations or by submitting separate applications for each location; provided further, however, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments. For used car lots operated by one owner where no separate books are maintained for separate locations, a flat fee of $25.00 per year shall be paid for each separate location in addition to the tax for the gross receipts of the entire business.

(2) Calculation of Taxes. If two or more activities of one person are taxable under this chapter at the same rate and on the same tax basis, the person may calculate and report the tax due for the activities as a group. If two or more activities are taxable on the same tax basis, but at different tax rates, the person may calculate the tax for each activity separately or may calculate the tax for the activities as a group by applying the highest tax rate applicable to any activity in the group. If two or more activities are taxed on differing tax bases, the tax must be calculated for each activity separately. (Ord. 505 § 1. 2002 Code § 6-2.6).

The director or other appropriate officer or body may examine under oath any applicant to determine who is the real party in interest in the business for which a license is sought. If the director is satisfied that the application is not in the interest of the person in whose name the application is made, he or she may deny the license. If the director finds that the application is in the interest of one whose license has been revoked or who has been refused a license, he or she may treat the application as though made by the real party in interest, and the limitation on future applications of CMC 5.04.170(1) shall apply. (Ord. 505 § 1. 2002 Code § 6-2.7).

(1) Posting Licenses. All business licenses shall be kept and posted in the following manner:

(a) Any license issued for a fixed business location in the city shall be displayed by the licensee in a conspicuous place on the premises for which the license is issued.

(b) Any license issued for a business that is not conducted from a fixed location in the city shall be kept upon the person of the licensee while he or she is engaged in business in the city. If the licensee engages in business in the city through several individuals or other agents, duplicate licenses may be issued for named agents by the director. No person other than the director shall copy or otherwise duplicate any license issued under this chapter.

(c) Any licensee using a motor vehicle in connection with his business shall affix on the lower left corner of windshield a decal, to be furnished by the city, showing that a current license has been issued.

(2) Enforcement. The director, any law enforcement officer, and any other person authorized by the director shall have the authority to enter any place of business taxed under this chapter at any reasonable time and demand an exhibition of its license. No person to whom a license was issued or who has custody or control of a license shall willfully fail to exhibit the license upon the demand of a person authorized to inspect it under this section. (Ord. 505 § 1. 2002 Code § 6-2.8).

(1) Categories. The taxes imposed by this title shall not apply to:

(a) Any business or activity which is exempt from the payment of tax imposed by this title by virtue of the provisions of a franchise agreement which is binding on the city at the time the receipts are received or costs incurred, or by virtue of provisions of the laws or Constitution of the United States or of the state of California;

(b) Any business or activity of a public utility relating to the provision of local, interstate, or international telecommunications services, except to the extent the public utility engages in retail merchandising within the city;

(c) Any business or activity which is wholly for the benefit of charitable purposes; or for any entertainment, concert, exhibition or lecture on scientific, historical, literary or religious subjects within the city where the receipts are to be appropriated to a church or school not operated for profit or to a religious or benevolent purpose;

(d) Any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, nonprofit educational, military, or governmental organization or association where the receipts are to be appropriated for the purpose and objects for which such organization or association was formed and from which profit is not derived, either directly or indirectly, by any individual;

(e) Any business for which the applicant is a person who has received an honorable discharge or release from active duty in one of the United States armed services who is physically unable to obtain a livelihood by manual labor; and

(f) The publication or sale of newspapers, magazines or other periodicals regularly issued at average intervals not exceeding three months.

(2) Statement of Exemption. Any person claiming an exemption from the tax imposed by this chapter shall file a verified statement of exemption on a form prescribed by the director. (Ord. 505 § 1. 2002 Code § 6-2.9).