3-6 BUSINESS LICENSE TAX.

This section is enacted to register businesses, trades, occupations and professions in the Town of Danville for the purpose of Revenue and regulation and is enacted pursuant to Business and Professions Code §§460 and 16000, Government Code §37101 and California Constitution Article XI, §7. (Ord. #93-3, §1)

The following words and phrases whenever used in this section shall be construed as defined in this section.

a. Business (Class “A” License) shall include all activities engaged in or caused to be engaged in within the Town of Danville, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, including home occupations, lease or rental of residential or non-residential real estate, and every other kind of activity whether or not carried on for gain or profit, and whether or not engaged in as a principal or as an independent contractor, but shall not include the services rendered by an employee to his or her employer.

b. Amusement and Itinerant Businesses (Class “B” License) includes only those businesses which are (1) not operated or carried on regularly throughout the year in the Town of Danville, such as circuses, carnivals and other exhibitions or entertainments on an occasional basis and not otherwise licensed and (2) involve the operation of a temporary place of sale.

c. Annual Marketplace (Class “C” License) shall mean any event that occurs at a regularly scheduled time or times throughout the year and involves the sale of products or goods by vendors, farmers, artisans and/or crafts people located at individual, temporary stalls where money is directly collected for the products or goods sold. For the purpose of this section, Street Fairs (Class C-1 License) shall fall within this category.

d. Collector shall mean the Financial Services Manager or other person the Town Manager may designate to administer the business license program.

e. Employee means every person engaged in the operation or conduct of any business whether as an owner, any member of owner’s family, partner, associate, agent, manager or solicitor, and any and all other persons engaged in such business. In addition, an “employee” means any person who works for or receives a salary for work from which Federal Withholding tax or Federal Insurance Compensation Act (FICA) funds have been withheld.

f. 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.

g. Full time equivalent employee shall be calculated by ascertaining the total number of hours of service including vacation, or other paid leave, performed by all employees of applicant within the Town of Danville during the previous year ending on June 30th 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 (1) full-time employee according to the custom or laws governing such employment. In the absence of other such standards, two thousand (2000) hours of service per year shall constitute one (1) full-time employee.

Danville during the previous year ending on June 30th 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 (1) full-time employee according to the custom or laws governing such employment. In the absence of other such standards, two thousand (2000) hours of service per year shall constitute one (1) full-time employee.

h. Gross Receipts includes the total of amounts actually received or receivable from sales and for the performance of any act or service for which a charge is made or credit allowed, whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise. “Gross receipts” shall include all receipts, cash, credits, and property of any kind of nature without deduction of the cost of the property sold, cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.

• i. Itinerant Businesses see paragraph b.

• j. Town means the Town of Danville, a municipal corporation of the State of California.

• (Ord. #93-3, §1)

There are hereby imposed upon the businesses, trades professions, calling and occupations specified in this section business license fees in the amounts set forth in subsection 3-6.14. It shall be unlawful to engage in business in the Town without first procuring a business license unless an exemption is granted.

This section shall not be construed to require any person to obtain a license prior to doing business within the Town if such

requirement conflicts with applicable statutes of the United States government or of the State of California. Persons not so required to obtain a license prior to doing business within the Town nevertheless are encouraged to comply with the reporting requirements of the section as set forth in subsection 3-6.8. (Ord. #93-3, §1)

Exemptions must be requested and acceptable proof must be presented to the Collector that shows the business meets one (1) or more of the following criteria:

a. Nonprofit organizations as defined in Section 501 (c)(1), (2) or (3) of the Internal Revenue Code, as it currently exists or is hereafter amended.

b. Businesses exempt from local taxation by virtue of the Constitution or applicable statutes of the United States or the State of California.

c. Businesses conducting any entertainment, concert, exhibition, or lecture on scientific, historical, literary, or charitable subjects within the Town whenever all the gross receipts of any such entertainment, concert, exhibition or lecture are to be appropriated to any church or school or to any charitable purpose within the Town.

Registration under this section is not required of a nonprofit institution, corporation, organization, or association organized or conducted for nonprofit purposes only, when the receipts derived are wholly for the benefit of the organization and not in whole or in part for the private gain of any person. This exemption does not apply to a promoter employed by a nonprofit institution, corporation, organization or association.

d. Businesses with annual gross receipts less than ten thousand ($10,000) dollars per year.

e. Businesses which rent or lease to others no more than four (4) residential dwelling units.

(Ord. #93-3, §1)

“License,” as used in this section, does not mean a permit. Any other permits or licenses which are required otherwise than by this section remain in effect and are not superseded by this section. The fees prescribed by this section constitute a tax for revenue and regulatory purposes. The payment of a license tax required by the provisions of this section, and its acceptance by the Town, and the issuance of a business license to any person, shall not entitle the holder thereof to carry on any business unless he/she has complied with all of the requirements of this section and all other applicable laws, nor to carry on any business in any building or on any premises designated in such license 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. #93-3, §1)

When any person makes use of signs, circular, cards, telephone books or newspapers and advertises, holds out or represents that he or she is in business in the Town, or when any person holds an active license or permit issued by a governmental agency indicating that he or she is in business in the Town, and such person fails to deny by a sworn statement given to the Collector that he or she is conducting a business in the Town, after being requested to do so by the Collector, then he or she will be presumed to be conducting a business in the Town. (Ord. #93-3, §1)

A separate license must 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 this section shall not be deemed to be separate places of business or branch establishments. (Ord. #93-3, §1)

The organizer, promoter or sponsor of an annual marketplace is responsible for collecting and paying to the Collector the fees for all vendors, farmers, artisans and/or crafts people. If the annual marketplace is sponsored by a community service organization, the sponsor shall not be responsible for collection of fees for vendors unless such vendors are directly engaged by the sponsor. The promoter which contacts with the participating vendors shall be responsible for collection and payment of the vendor fees to the Collector. (Ord. #93-3, §1)

After the submission of a business license application and payment of the prescribed fee to the Collector, the Town shall issue a license which shall contain the following:

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

• b. Identification of the business licensed;

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

• d. The expiration date of such license; and

• e. Such other information as the Collector may determine.

• (Ord. #93-3, §1)

a. All licenses issued, except daily licenses, and the first license issued to a new business, shall be issued and due for renewal effective July 1st and shall expire on the subsequent June 30th.

b. New businesses shall have fees prorated to the beginning of the quarter in which the business is established and the license will expire June 30th.

c. All daily licenses are due in advance no later than the day prior to the start of the business activity for which the license is necessary.

(Ord. #93-3, §1)

No license granted or issued under any provisions of this section shall be in any manner transferred or assigned, or authorize any person other than the person named in the license to carry on the business therein named, or to transact such business in any place other than the place of location therein named, without the written consent of the Collector endorsed thereon. At the time such license is assigned or transferred or 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 Collector a fee, as provided in subsection 3-6.14, for each assignment or transfer. (Ord. #93-3, §1)

a. Every person having a license under the provisions of this section and carrying on a business at a fixed place of business shall keep such license posted and exhibited in some conspicuous part of said place of business.

b. Every person having a license and not having a fixed place of business shall carry such license in possession at all times while carrying on the business for which the same was granted.

• c. Every vendor having a license shall keep such license prominently displayed.

• (Ord. #93-3, §1)

A license or renewal of a license may be denied for any of the following causes:

• a. The application is not the form provided, and/or does not contain the required information;

• b. The application contains materially false information;

• c. Noncompliance with requirements of this section;

d. The vehicle to be used in the business is inadequate or unsafe for the purpose for which it is to be used, or the building or structure where the business is located does not comply with applicable laws;

e. The business would interfere with or unreasonably obstruct the free flow of vehicular traffic, or other means of travel on any public street, or with pedestrian traffic on the sidewalks;

• f. Appropriate permits for the business have not been obtained from the Town;

• g. The conduct of the business or activity will be contrary to law; or

h. The conduct of the business or activity will interfere with the preservation of the peace, health, safety or welfare of the public.

• (Ord. #93-3, §1)

If a business license tax remains unpaid the Collector shall:

a. Impose twenty-five (25%) percent penalty for an annual license tax which is not paid within thirty (30) days of the due date;

b. Impose twenty-five (25%) percent penalty for a daily license tax which is not paid by the close of the day when it was due; and

c. In addition to the penalties imposed, any person who fails to pay any license fee within thirty (30) days of the due date shall pay interest at the rate of one and one half (1 1/2%) percent per month or fraction thereof, on the amount of the fee and penalties from the date on which the license fee is delinquent, until paid. (Ord. #93-3, §1)

The amount of any license fee, penalty and interest imposed by the provisions of this section shall be deemed a debt to the Town; and any person carrying on any business without first having procured a license from the Town to do so shall be liable to action in the name of the Town in any court of competent jurisdiction, for the amount of license, penalties and interest imposed on such business. The Town may collect the debt through any legal means including attachment and lien of business property. (Ord. #93-3, §1)

It is the duty of the Collector, and he/she is directed, to enforce each and all of the provisions of this section. After July 1, 1993 each department of the Town which issues permits for work to be done and/or engages in any applicable business activity shall require the production of a valid unexpired license prior to the issuance of such a permit or initiation of work.

The Collector, in the exercise of the duties imposed upon him/her under this section, and acting through deputies or duly authorized assistants, may examine or cause to be examined from time to time all places of business in the Town to ascertain whether such businesses have complied with the provisions of this section. Absent consent to enter the premises, the Collector shall request the City Attorney to obtain the necessary judicial authority for entry and inspection.

The Collector, each and all of his/her 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 in this section and demand an exhibition of its license certificate. Any person, having such license certificate heretofore issued in his/her possession or under his/her control, who willfully fails to exhibit the same on demand, shall be guilty of an infraction. It shall be the duty of the Collector and each of his/her assistants to cause a complaint to be filed against any and all persons found to be violating any of said provisions. (Ord. #93-3, §1)

The conviction and punishment of any person for transacting any business without obtaining a license shall not excuse or exempt such person from the payment of any license tax due or unpaid at the time of such conviction, and nothing in this section shall prevent a criminal prosecution of any violation of the provisions of this section. All remedies prescribed under this section are cumulative and the use of one (1) or more remedies by the Town shall not bar the use of any other remedy for the purpose of enforcing the provisions of this section. (Ord. #93-3, §1)

Violation of the provisions of this section shall be an infraction. (Ord. #93-3, §1)

a. Any person aggrieved by any decision of the Collector with respect to the issuance or refusal to issue a license, or the amount of a license tax, may appeal to the Town Manager by filing a written notice of appeal setting forth in full the grounds

of the appeal, with the City Clerk of the Town.

b. The Town Manager is authorized to issue such regulations as may be reasonable and necessary to hear and determine such appeals. Such regulations shall be in writing, approved by the Town Council and available to any person so requesting them.

c. The amount of any license tax finally determined, as provided in this section, or any other section of this section, shall be due and payable as of the date the original license fee was due and payable, together with any penalties and interest that may be due thereon; provided, however, if the amount of such license tax is fixed in accordance with the original statement of the applicant, then no penalty or interest shall attach by reason of any delinquency. (Ord. #93-3, §1)

The Collector, or any authorized employee of the collector is authorized to examine the payroll records of any person subject to this section for the purpose of verifying the accuracy of any application or, if no application was made, to ascertain the license fees due under this section. For persons claiming exemption based on less than ten thousand ($10,000) dollars annual gross receipts, Collector or authorized employee is authorized to examine any appropriate books, papers or records associated with gross receipts. Every licensee or business operating in the Town of Danville is directed and required to furnish to the Collector, or his/her duly authorized agent or employee, the means, facilities and opportunity for making such examination and investigations as are authorized by this section. The Collector is authorized to examine any person, under oath, for the purpose of verifying the accuracy of any application made, or, if no application was made, to ascertain the license fees due under this section, and for this purpose may compel the production of payroll records or, if appropriate, books, papers and records applicable to gross receipts and the attendance of all persons before him/her, whether as parties or witnesses, whenever he/she believes such persons have knowledge of such matters. The refusal of such examination by any employer or person subject or presumed to be subject to the license fees shall be deemed a violation of this section.

It shall be unlawful for the Collector or any person having an administrative duty under the provisions of this section to be known in any manner the business affairs, operation, or information obtained by an investigation of records of any business subject to this section provided however that nothing in this section shall be construed to prevent any disclosure required by law or the disclosure, of general statistics regarding Business License Fees collected or business done in the Town of Danville. (Ord. #93-3, §1)

Whenever the amount of any tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or received by the Town under this section, it may be refunded provided a verified claim in writing, stating the specific grounds upon which said claim is founded, is filed with the Collector within three years from the date of payment. The claim shall be audited by the Collector and shall be made in accordance with current Town refund procedures. If the claim is approved, the refund may be refunded or may be credited on any amounts then due and payable from the person from whom it was collected or by whom paid, and the balance may be refunded to such person or to his/her administrators or executors. (Ord. #93-3, §1)