Downey Municipal Code Part 1 General

It is the intent of the City Council of the City of Downey, by the adoption and amendment of the provisions of this chapter, to provide regulatory provisions only, with regard to specific businesses, as set forth hereinafter, and, to prescribe a schedule of business license taxes, for revenue purposes only, for all businesses, in the amounts and manner as set forth hereinafter. It is also the intent of the City Council of the City to ensure that all businesses intending to operate in the City meet certain minimum zoning, fire, building and safety, and other requirements of the Downey Municipal Code prior to and during the operation of said business. In the event that any business regulated by the provisions of this chapter, which is now, or hereafter, declared by appropriate legal authority, to be regulated by the laws of the State, to the exclusion of the right of regulation by this City, the provisions of this chapter which are regulatory, in nature, shall not be deemed to apply to such business or businesses, except that the imposition of the business license tax, as set forth herein, shall, notwithstanding such determination, apply thereto.

(Added by Ord. 1304, adopted 9-25-12)

This chapter shall apply to all persons conducting a business, profession or trade within the City regardless of whether such person maintains a fixed place of business in the City and whether such person may primarily conduct his or her business, profession or trade elsewhere. Unless exempted by the provisions of this chapter, a person shall be deemed to be conducting a business, profession or trade within the City if he or she, agents or employees offer, solicit, sell, contract, construct, make or deliver or repair, or perform acts or services in respect to such business, trade or profession within the City.

(Added by Ord. 1304, adopted 9-25-12)

"Businesses, professions and trades,"

as used herein, means all kinds of vocations, occupations, professions, enterprises, establishments, and all other kinds of activities and matters, together with all devices, machines, vehicles, and appurtenances used therein, any of which are conducted, used, or carried on for the purpose of earning in whole or in part a profit or livelihood whether or not a profit or livelihood actually is earned thereby. "Business, professions and trades" shall include, without being limited thereto, trades and occupations of all and every kind of calling carried on within the City of Downey, salesmen, brokers, retailers, wholesalers, vendors, suppliers, peddlers, professions, the renting or supplying of living quarters or board, or both for four or more guests, tenants or occupiers, and any other type of endeavor entered into within the City of Downey for the purpose of earning a livelihood or profit in whole or in part whether paid for in money, goods, labor, or otherwise and whether said business, profession, or trade has a fixed place of business in the City.

"Gross receipts"

means the total amount of the sale price of all sales and the total amount charged or received 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. Included in "gross receipts" shall be all 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 the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from "gross receipts" shall be cash discounts allowed and taken on sales; credit allowed on property accepted as part of the purchase price and which property may later be sold; any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected; that portion of the receipts of a general contractor which represents payments to subcontractors, provided that such subcontractors are licensed under this chapter, and provided the general contractor furnished the tax collector with the names and addresses of the subcontractors and the amounts paid each subcontractor.

"License"

means a business tax certificate issued pursuant to this chapter.

"Tax Collector"

means the Director of Finance or designee.

(Added by Ord. 1304, adopted 9-25-12)

(Added by Ord. 34, adopted 6-10-57; repealed by Ord. 1304, adopted 9-25-12)

The purpose of this chapter is solely to raise revenue for municipal purposes and is not intended for regulation.

(Added by Ord. 34, adopted 6-10-57)

Any person required by this chapter to pay a license tax shall not be relieved from the payment of any license tax required by any other provisions of this Code and shall not be relieved from any regulations by other provisions of this Code.

(Added by Ord. 34, adopted 6-10-57)

There are hereby imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amounts hereinafter prescribed. No person shall transact and carry on any business, trade, profession, calling or occupation in the City without first having procured a license from said City so to do or without complying with any and all applicable provisions of this chapter.

This chapter 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 of California.

Persons not required to obtain a license prior to doing business within the City because of conflict with applicable statutes of the United States or of the State of California shall be liable for payment of the tax imposed by this chapter.

(Added by Ord. 34, adopted 6-10-57)

A separate license must be obtained for each branch establishment or location or separate place of business in which the trade, calling, profession or occupation required to be licensed hereunder is carried on. When any person conducts at one place more than one business, classified separately by this chapter, such person may, upon application and payment of the highest license fee among such classifications, be licensed to conduct all such businesses at such place. Warehouses and distributing plants used in connection with and incidental to a business license under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments.

(Added by Ord. 34, adopted 6-10-57)

Nothing in this chapter shall be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the constitution or applicable statutes of the United States or of the State of California from the payment of such taxes as are herein prescribed.

None of the license taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce. In any case where a license tax is believed by a licensee or applicant for license to place an undue burden upon such commerce, he may apply to the Tax Collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at, or within six months after payment of the prescribed license tax. The application shall, by affidavit and supporting testimony, show his or her method of business and the gross volume or estimated gross volume of business and such other information as the Tax Collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The Tax Collector shall then conduct an investigation, and, after having first obtained the written approval of the City Attorney, shall fix as the license tax for the applicant, an amount that is reasonable and nondiscriminatory, or if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the Tax Collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this chapter. Should the Tax Collector determine the gross receipts measure of license tax to be the proper basis, he or she 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, provided that no additional license tax during any one calendar year shall be required after the licensee shall have paid an amount equal to the annual license tax as prescribed in this chapter.

Any person claiming an exemption pursuant to this section shall file a verified statement with the Tax Collector stating the facts upon which exemption is claimed.

The Tax Collector shall, upon a proper showing contained in the verified statement, issue a license to such person claiming exemption under this section without payment to the City of the license tax required by this chapter.

The Tax Collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein.

(Added by Ord. 34, adopted 6-10-57)

The provisions of this chapter shall not require the obtaining of a license to commence or conduct any business or require the payment of any license fee, by any bona fide institution or organization which is commenced and conducted wholly for the benefit of charitable purposes or from any non-profit organization not regularly or primarily engaged in business and from which profit is not derived either directly or indirectly by any person, nor shall any license or license fee be required for the commencing and conducting of any entertainment, concert or exhibition or lecture or scientific, historical, literary, religious, or moral subject or subjects whenever the receipts or net proceeds of such entertainment, concert, exhibition, or lecture are appropriated or turned over to any bona fide church or school or to any bona fide religious or benevolent purposes, nor shall any license or fee be required for the conducting of any entertainment, dance, concert, exhibition, or lecture, circus, carnival or show, whenever the receipts or proceeds for any such entertainment, dance, concert, exhibition, lecture, circus, carnival, or show are appropriated for a bona fide charitable, religious, or benevolent purpose and from which profit is not derived, either directly or indirectly by any person; except and provided, however, that in the event any organization referred to in this section merely sponsors such exhibition, show, dance, or other event or events as referred to herein AND only a percentage of the total receipts is to be appropriated to the organization sponsoring such undertaking then, in this event, in addition to first having obtained a permit therefor, the person for whom such sponsoring organization is acting shall pay a license fee as provided in this chapter for such event, but shall be entitled to a refund equal to the total amount received by such organization sponsoring such undertaking, but not to exceed the amount of such license fee so paid. Certification of the amount received by the sponsoring organization shall be made in writing to the Tax Collector by the sponsoring organization.

(Added by Ord. 154, adopted 11-22-60)

(a) Application. Every person required to have a license under the provisions of this title, shall make an application therefor, in a form prescribed by the Tax Collector. The contents of the application shall be specified by the Tax Collector. Upon the payment of the prescribed tax therefor and upon determination that none of the grounds for denial as specified in Section 6206(b) exist, the Tax Collector shall issue to such person a license which shall contain:

(1) The name of the person to whom the license is issued;

(2) The business licensed;

(3) The place where such business is to be transacted and carried on;

(4) The date of the expiration of such license;

(5) Such other information as may be deemed necessary.

(b) Grounds for Denial. The Tax Collector of the City shall deny any application for a business license or for the renewal thereof if the Tax Collector makes any of the following findings and/or determinations:

(1) The applicant has not first obtained or has not maintained in full force and effect any separate and distinct regulatory permit, conditional use permit, or other entitlement that is required pursuant to the provisions of the Downey Municipal Code or other applicable law;

(2) The building, structure, premises, location, or the equipment used to conduct the business activity fails to comply with all applicable health, zoning, fire, building and safety laws and regulations;

(3) The applicant has knowingly made any false, misleading, or fraudulent statement of material fact in the application for the business license, in the application for renewal of the business license, in the application for any permit which is a pre-requisite to the acquisition of a business license, or in any report or statement required to be filed with the Tax Collector;

(4) The business is prohibited by any Federal, State, or local law or regulation, or prohibited in the particular location or zone by any law or regulation;

(5) The applicant is in violation of a provision of the Downey Municipal Code or owes taxes, fees, or penalties pursuant to this chapter or any other provision of the Downey Municipal Code;

(6) The application is for a license (new or renewal) for the same or substantially similar business activity for which the applicant has had a business license denied or revoked by the City of Downey within the preceding 12 months.

(c) Notice of Denial. Upon determining the existence of any factors specified in Section 6206(b), the Tax Collector shall advise the applicant by serving upon the applicant a notice of denial in writing within 10 business days of such determination. The notice of denial shall state the Tax Collector's findings and/or determinations that justify denial of the business license application, and shall include a summary of the evidence upon which such findings and/or determinations are based.

(d) Appeal of Denial of License. The denial of any business license by the Tax Collector may be appealed to the City Council pursuant to the provisions of Section 6301(f) of this article.

(Added by Ord. 1304, adopted 9-25-12)

Upon a person making application for the first license to be issued hereunder or for a newly established business, in all cases where the amount of license tax to be paid is measured by gross receipts, such person shall furnish to the Tax Collector for this guidance in ascertaining the amount of license tax to be paid by the applicant, a written statement, upon a form provided by the Tax Collector, sworn to before a person authorized to administer oaths, setting forth such information as may be therein required and 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, he shall estimate the gross receipts for the period to be covered by the license to be issued. Such estimate, if accepted by the Tax Collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, however, 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 Tax Collector with a sworn statement, upon a form furnished by the Tax Collector, showing the gross receipts during the period of such license, and the license tax for such period shall be finally ascertained and paid in the manner provided by this chapter for the ascertaining and paying of renewal license taxes for other businesses, after deducting from the payment found to be due, the amount paid at the time such first license was issued.

The Tax Collector shall not issue, to any such person another license for the same or any other business, until such person shall have furnished to him the written statement and paid the license tax as herein required.

(Added by Ord. 34, adopted 6-10-57)

In all cases, the applicant for the renewal of a license shall submit to the Tax Collector for his or her guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement, upon a form to be provided by the Tax Collector, written under penalty of perjury, or sworn to before a person authorized to administer oaths, setting forth such information and any additional information, as determined by the Tax Collector, concerning the applicant's business during the preceding year as may be required by the said Tax Collector to enable him or her to ascertain the amount of the license tax to be paid by said applicant pursuant to the provisions of this chapter.

(Added by Ord. 34, adopted 6-10-57; amended by Ord. 1304, adopted 9-25-12)

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 Tax Collector, his or her deputies, or authorized employees of the City, who are hereby 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 fee due.

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 for the purposes aforesaid.

The information furnished or secured pursuant to this section or Sections 6207 and 6207.1 of this chapter shall be confidential. No officer or employee of the City shall make any unauthorized disclosure or use of such information.

(Added by Ord. 34, adopted 6-10-57)

If any person fails to file any required statement within the time prescribed, or if, after demand therefor made by the Tax Collector, any person fails to file a corrected statement, the Tax 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 such a determination is made, the Tax 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 Downey, California, postage prepaid, addressed to the person so assessed at his or her last known address. Such person may, within 15 days after the mailing or serving of such notice, make an application in writing to the Tax Collector for a hearing on the amount of the license tax. If such an application is made, the Tax Collector, shall cause the matter to be set for hearing within 15 days before the Council. The Tax Collector shall give at least 10 days' notice to such person of the time and place of the hearing in the manner set forth in this section 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 set forth in this section for serving notices of assessment.

(Added by Ord. 34, adopted 6-10-57)

Any person aggrieved by the administration of the provisions of this chapter may, after seeking relief from the Tax Collector, appeal to the City Council pursuant to the provisions of Section 6301(f) of this article.

(Added by Ord. 34, adopted 6-10-57; amended by Ord. 426, adopted 10-24-72; Ord. 1304, adopted 9-25-12)

In addition to all other powers conferred upon him or her, the Tax Collector shall have the power, for good cause, shown, to extend the time for filing any required sworn statement, and in such case to waive any penalty that would otherwise have accrued on the fee or tax involved, and shall have the further power, with the consent of the Council, to compromise any claim as to the amount of license tax due.

(Added by Ord. 34, adopted 6-10-57; amended by Ord. 426, adopted 10-24-72)

Any license issued pursuant to the provisions of this chapter shall be personal to the respective licensee and may not be transferred; provided, however, in those cases where a transfer is occasioned by operation of law, or in cases where the owner or one of the owners of the licensed business continues in the ownership of the licensed business after a change in ownership, the license shall remain valid for the remainder of the license period during which such changes occurred.

When there occurs a change of ownership of less than 50% of any business licensed pursuant to the provisions of this chapter, and such change of ownership is coupled with a change of the kind of entity owning such business, the new entity shall immediately apply for a new business license as provided for in this chapter for the balance of the license period remaining for the prior entity. If a new license shall be issued for the balance of the license period remaining for the prior entity, such license shall be issued without any additional fees or charges being assessed or collected for such change in entity or ownership.

(Amended by Ord. 154, adopted 11-22-60)

A duplicate license may be issued by the Tax Collector to replace any license previously issued pursuant to the provisions of this chapter, which has been lost or destroyed upon the licensee filing a statement of such fact and at the time of filing such statement paying to the Tax Collector a duplicate license fee of one dollar ($1.00).

(Added by Ord. 34, adopted 6-10-57)

All licenses shall be kept and posted in the following manner:

(a) Any license transacting and carrying on a 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 a business but not operating at a fixed place of business in the City shall keep the license upon his or her person at all times while transacting and carrying on such business.

(c) In all instances in which a license place or tag is required for the use of any vehicle, such license plate or tag shall be conspicuously and permanently attached to the rear of the respective vehicles for which such license plates or tags are respectively issued.

(Amended by Ord. 154, adopted 11-22-60)

Unless otherwise specifically provided annual license taxes due under this chapter shall be due and payable in advance on the first day of January of each year.

Except as otherwise specifically provided license taxes other than annual license taxes due under the provisions of this chapter shall be due and payable as follows:

(a) Semi-annual license taxes shall be due and payable in advance on the first day of January and the first day of July of each year.

(b) Quarterly license taxes shall be due and payable in advance on the first day of January, April, July and October.

(c) Monthly license taxes shall be due and payable in advance on the first day of each and every month.

(d) Weekly license taxes shall be due and payable in advance on Monday of each week.

(e) Daily license taxes shall be due and payable each day in advance.

(Added by Ord. 34, adopted 6-10-57)

For failure to pay any license fee at the time required by this chapter, the Tax Collector shall add a penalty of 20% of the license fee or $10, whichever is greater, to said license fee on the last day of month following the due date, and thereafter, on the last day of each succeeding month 20% of the license fee shall be added providing, however, that the amount of the penalty shall at no time exceed the total amount of the tax due.

(Added by Ord. 34, adopted 6-10-57; amended by Ord. 154, adopted 11-22-60; Ord. 771, adopted 11-23-84)

Every annual license issued pursuant to this chapter shall expire on the December 31st following the date of its issuance. Every semi-annual license issued hereunder shall expire on the following December 31st or June 30th, whichever occurs first after the date of issuance. Every quarterly license issued hereunder shall expire on the next succeeding March 31st, June 30th, September 30th, or December 31st, whichever date occurs first after the date of the issuance of the license. Every monthly license, issued hereunder shall expire on the last day of the month during which such license was issued. Every weekly license issued hereunder shall expire on the Saturday next following its day of issuance. Every daily license issued hereunder shall expire at midnight on the day issued.

(Added by Ord. 34, adopted 6-10-57)

It shall be the duty of the Tax Collector, and he or she is hereby directed to enforce each and all of the provisions of this chapter, and the Chief of Police shall render such assistance in the enforcement thereof as may from time to time be required by the Tax Collector or the City Council.

The Tax Collector in the exercise of the duties imposed upon him or her hereunder, and acting through his or her deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the City to ascertain whether there has been compliance with the provisions of this chapter.

The Tax Collector and each and all of his or 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 herein, and demand an exhibition of its license certificate. Any person having such license certificate theretofore issued, in his or her possession or under his or her control, shall exhibit the same on demand.

(Added by Ord. 34, adopted 6-10-57)

The amount of any license tax and penalty imposed by the provisions of this chapter shall be deemed 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.

(Added by Ord. 34, adopted 6-10-57)

All remedies prescribed hereunder 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 this chapter.

(Added by Ord. 34, adopted 6-10-57)

In the event any other provision of this Code requires a permit to be issued before any business or activity may be carried on, then no business license shall be issued therefor unless and until the permit required by this Code has been issued and is valid and in good standing.

(Added by Ord. 493, adopted 10-28-75)

No license or permit issued pursuant to this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business or practice, or the furnishing, sale, provisioning of any service, good, or product that is illegal under this Code, the laws of the County of Los Angeles, the laws of the State of California, and the laws of the United States of America. Licenses issued to an unlawful business or businesses providing or selling illegal services or products shall be subject to revocation in accordance with this Code.

(Added by Ord. 1304, adopted 9-25-12)