Fremont Municipal Code Art. II Business Tax Rates and Measures

Every person engaged in carrying on any business, trade, profession, calling, or occupation specified in this chapter shall, as a portion of the business tax imposed, pay a registration tax of $30.00 per year, $10.00 per quarter or $4.00 per month, upon commencing business and annually, quarterly or monthly, as appropriate thereafter. All other business taxes provided for in this chapter for the privilege of engaging in any business are imposed in addition to the registration tax. The registration tax shall not be refundable except as provided in Section 5.05.160 and shall not be prorated. The registration tax is due and payable prior to the commencement of a newly established business and is due and payable at the same time as any other business tax which is due and payable pursuant to this chapter. A separate registration tax shall be due for each fixed place of business and for each business not having a fixed place of business.

A new registration transfer tax shall be paid under the following circumstances:

(a) When a person transfers 50 percent or more of his/her interest (or more than 50 percent of the stock or assets of a business operated at a fixed place of business), the transferee shall first report such change to the collector and pay a registration transfer tax in the amount of $30.00 regardless of whether the transfer is made under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer.

(b) When a person transfers the location of a fixed place of business within the city, or changes the name of the business, he or she shall first report such change to the collector and pay a registration transfer tax of $30.00.

(c) When a person simultaneously makes more than one transfer or change described in subsection (a) or (b) of this section he or she shall pay only one registration transfer tax.

(d) When effecting a transfer of ownership as described in subsection (a) of this section, the new owner must furnish documentary proof indicating the nature of the transaction. Also, the transferee shall pay a business tax and registration tax for such period as would have been required of the former owner. Such tax as applicable shall be due upon the date of the transfer. In the event the transferee is unaware of the gross receipts or gross payroll of the transferor, the transferee shall furnish his or her gross receipts or gross payroll and such other information as the collector may deem necessary to determine the tax due. The collector shall then compute and fix as the business tax for the transferee an amount that is reasonable and nondiscriminating and the approximate amount that the transferor would have paid the city had the transfer of ownership not been effected. (Ord. 1876 § 2, 6-6-89; amended during 2012 reformat. 1990 Code § 5-1200.)

Every person conducting, carrying on, or managing any business which consists predominantly of selling at retail any goods, wares, merchandise or commodities shall pay an annual business tax of $0.25 for each $1,000 of gross receipts. For purposes of this section, all persons operating a business consisting of retail and/or wholesale sales which operates from a residential district shall pay an annual business tax of $0.30 for each $1,000 of gross receipts. (Ord. 1876 § 2, 6-6-89; Ord. 16-2009 § 7, 7-21-09. 1990 Code § 5-1201.)

Every person conducting, carrying on or managing any business consisting of providing services for other persons, repairs or improvements to or on real or personal property, or the renting and leasing of personal property shall pay an annual business tax of $1.00 for each $1,000 of gross receipts. (Ord. 1876 § 2, 6-6-89; Ord. 16-2009 § 8, 7-21-09. 1990 Code § 5-1202.)

(a) Generally. Every person conducting, carrying on, or engaged in a profession or vocation requiring a period of specialized training and certification shall pay an annual business tax of $1.30 for each $1,000 of gross receipts.

(b) Real Estate Broker.

(1) A real estate broker who has a fixed place of business in the city shall pay an annual business tax of $38.00 for each fixed place of business, plus an additional business tax of $25.00 for each person performing services at such fixed place of business as a licensed real estate salesperson, not including the broker, office manager or other salesperson in charge of the office.

(2) A real estate broker who does not have a fixed place of business in the city shall not be deemed to be doing business in the city unless in a calendar year he or she has been engaged in three or more revenue-generating transactions with respect to real property in the city or earned $10,000 or more in commissions or fees with respect to real property in the city, whichever occurs first. Whenever such a real estate broker has earned such amount in fees or commissions, or has been engaged in three or more revenue-generating transactions with respect to real property in a calendar year, whichever occurs first, he or she shall be required to pay a business tax of $30.00 for such calendar year.

(3) As used in this section, “transaction” shall mean performance of services as a selling broker with respect to real property, or performance of services as a listing broker with respect to real property which has been sold during the listing period, or performance of service as an appraiser of real property. Where a sale of real property is consummated by a broker who is also the listing broker with respect to the property involved, two transactions shall be deemed to have occurred with respect to such broker.

(4) If a real estate broker, who has a fixed place of business in the city, also operates a real estate office in another city, any Fremont listings or sales generated from the out-of-town location shall be deemed to be operations of a real estate broker not having a fixed place of business in the city of Fremont for purposes of this section. (Ord. 1876 § 2, 6-6-89; Ord. 16-2009 § 9, 7-21-09. 1990 Code § 5-1203.)

(a) Every person conducting, carrying on or managing a business as a licensed contractor and who undertakes to, or offers to undertake to, or purports to have the capacity to undertake to, or submits bids to, or does himself or herself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation, or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith, is defined as a contractor. The term “contractor” as used in this section also includes subcontractors and specialty contractors.

(1) Every contractor with a fixed place of business in the city shall pay an annual business tax of $95.00 per calendar year, plus $0.10 for each $1,000 of gross receipts.

(2) Every contractor who does not have a fixed place of business in the city shall pay a business tax of $30.00 per calendar quarter, plus $0.10 for each $1,000 of gross receipts.

(b) Any newly established contractor with a fixed place of business in the city may have the business taxes prorated depending upon the calendar quarter said business begins operating. A contractor who does not have a fixed place of business in the city may elect to pay a business tax on an annual basis in accordance with subsection (a)(1) of this section.

(c) For purposes of this section, the gross receipts of a contractor shall not include the gross receipts only of any persons attributable to construction, structural additions, or improvements for which a tax is required pursuant to Section 5.05.280 (where such person is required to pay a tax pursuant to such section); provided, that such contractor lists his/her subcontractors and the amounts paid or payable to such subcontractors for any such construction. (Ord. 1876 § 2, 6-6-89; amended during 2012 reformat. 1990 Code § 5-1204.)

(a) Every person who constructs a new dwelling, makes additions in habitable space to any existing dwelling, or improves land as a mobile home lot shall be subject to a business tax consisting of a flat rate for new residential construction or mobile home lots, or a square footage tax on all additions to existing residential structures for such construction. The collector shall set the annual rates effective July 1st of each year based on the changes in the gross national product (GNP) deflator.

The addition to a dwelling of a patio structure, garage or shed shall not be deemed to add habitable space to a dwelling. The number of square feet of floor area shall be determined by the building official based on the data submitted by the applicant.

(b) The business tax shall be due and payable upon the issuance of the building permit. No building permit shall be issued until such tax has been paid.

(1) In the case of improvement of land in a mobile home lot, the business tax shall be due and payable upon commencement of the improvement. No work shall be commenced until the tax has been paid. Delinquency penalties for failure to pay when due shall be as prescribed in Section 5.05.150(a).

(2) The tax shall be paid by or on behalf of the contractor/owner as taxpayer to the collector, who shall certify such payment to the building official.

(c) The business tax shall be refundable in the event that the building permit is issued and has thereafter expired and become null and void because the building and work authorized by such permit was not commenced within 180 days from the date of such permit.

(d) Any person who is required to pay a business tax pursuant to this section shall only be required to pay the contractors flat rate as prescribed in Section 5.05.270. (Ord. 1876 § 2, 6-6-89. 1990 Code § 5-1204.1.)

(a) Every person conducting, carrying on or managing any business consisting of manufacturing or selling at wholesale any goods or merchandise, maintaining administrative offices with minimal sale of goods, merchandise or services, or providing telephone or telegraph services shall pay an annual business tax of $0.30 for each $1,000 of gross payroll.

(b) Every person conducting, carrying on or managing a business of quarrying shall pay an annual business tax of $1.00 for each $1,000 of gross payroll. For the purposes of this section, “quarrying” shall also mean producing earth, rock, crushed stone, building stone, slate, limestone, gravel, sand, minerals, or other similar material products. (Ord. 1876 § 2, 6-6-89. 1990 Code § 5-1205.)

(a) Every person conducting, carrying on or managing any business consisting of entertainment, recreation or amusement shall pay an annual business tax of $1.50 for each $1,000 of gross receipts. This classification includes but is not limited to: archery ranges/instruction, bowling alleys, firearm shooting ranges, golf courses/instruction, ranges, indoor and outdoor motion picture theaters, pool and billiard halls, rental animals for recreation riding, skating rinks, sporting events, swimming pools, theaters at which live entertainment is presented, vehicle courses/racing, game or computing arcades.

(b) Every person whose business is of a temporary nature and is unable to determine to the satisfaction of the collector their gross receipts shall pay a business tax as follows: amusement rides, $11.00 per day per ride; entertainment, occasional or casual, $0.25 per seat per day; public dancing, $63.00 per day or $103.00 per quarter; street musicians, $11.00 per day per person. (Ord. 1876 § 2, 6-6-89; Ord. 19-2004 § 3, 7-13-04. 1990 Code § 5-1206.)

(a) Every person conducting, carrying on, or managing any business of offering for lease or rental any residential real property, commercial real property or industrial real property shall pay an annual business tax of $1.30 for each $1,000 of gross receipts. For purposes of this section, persons who rent, lease or manage no more than four residential dwelling units shall not be deemed to be in business. This exception shall not apply to persons who rent five or more residential dwelling units, or who rent any commercial or industrial real property in the city. Persons who rent commercial or industrial real property in the city shall also report all residential units.

(b) Every person conducting, carrying on or managing a trailer court, mobile home park or similar enterprise shall pay an annual business tax of $12.00 for each $1,000 of gross receipts.

Each person who rents real property to others and is subject to this tax shall not be required to pay more than one registration tax for all lots (including buildings) in the city.

The business taxes provided for herein are cumulative. If the same lot, dwelling unit, office or other space, or any portion thereof is leased and subleased to more than one person in the same time period, each separate lease or sublease to each person shall constitute the rental of a rental unit. Taxes provided for herein are in addition to any business taxes which may be required to be paid by real estate brokers, agents or other persons engaged in business and taxes pursuant to other provisions of this chapter.

(c) Every person conducting, carrying on or managing any business of renting out accommodations substantially on a transient occupancy basis shall pay a business tax of $1.00 for each $1,000 of gross receipts. This classification includes but is not limited to hotels, motels, bed-and-breakfast inns, etc. (Ord. 1876 § 2, 6-6-89. 1990 Code § 5-1207.)

Every person with no fixed place of business in the city who is engaged within the city in a business of conducting, managing or running, driving or operating any vehicle used for transportation, selling, collecting, or delivery of goods, merchandise, or other personal property of any kind, or of soliciting for work, labor or services to be performed upon the public streets in or from a vehicle shall pay a business tax of $30.00 per year in advance per vehicle used in the city. However, such persons may elect to pay a tax pursuant to Section 5.05.250 for all remaining tax periods other than the original tax period. (Ord. 1876 § 2, 6-6-89. 1990 Code § 5-1208.)

(a) Carnival or Circus. Any person conducting, carrying on or managing any business which consists of operating a carnival or circus shall pay a business tax of $420.00 for the first day of operation and $210.00 for each additional day of operation.

(b) Canvassers and Solicitors. Any person who engages in the business of going from house to house, place to place, on or along the streets within the city, or by telephone, selling or taking orders for, or offering to sell or take orders for, goods, merchandise or other things of value for future delivery or for service to be performed in the future shall pay a business tax of $85.00 per person per calendar quarter or $35.00 per person per month.

Any business which conducts its business through the use of persons assigned as solicitors to established and defined routes regularly serviced by such solicitors may, pursuant to Section 5.05.240, pay an annual business tax in lieu of the tax for each solicitor prescribed by this section, based on the total annual gross receipts derived from all orders solicited by such solicitors. Regular service to a route shall be deemed to have been accomplished if in each quarter not less than 50 percent of the houses and places upon a route from which an order was taken in the same or previous quarter are solicited, canvassed or an order taken.

(c) Christmas Tree Lots. Any person conducting, carrying on or managing any business consisting of selling Christmas trees shall pay a business tax of $65.00 per month.

(d) Itinerant Vendors. Any person who engages in a temporary business in the city by selling or offering for sale any goods, merchandise or things or articles of value for a period of not more than 120 days in any calendar year shall pay a business tax of $75.00 per month per location per person.

(e) Peddlers.

(1) Any person who engages in the business of going from house to house, place to place, on or along the streets within the city and making immediate delivery or offering for sale and immediate delivery such items as food, beverages, home-manufactured articles, novelties, notions, toys, souvenirs, flowers, medicines, or patent medicines shall pay a business tax of $45.00 per person or vehicle per calendar quarter.

(2) Any person who engages in the peddling of wearing apparel, cloth, furs, jewelry, cosmetics, perfume, toilet articles, silver or plated ware, household furnishings, auto parts or accessories, cooking utensils or any other goods, wares or merchandise not otherwise specifically taxed pursuant to this chapter shall pay a business tax of $210.00 per person per month.

(f) Tool Sharpeners and Curb Painters. Any person traveling from house to house or place to place for the purpose of grinding or sharpening scissors, knives, cutlery or mechanical tools, making keys, or painting house or address numbers upon private real property or an adjacent street curb shall pay a business tax of $25.00 per person per day.

(g) Warehousing. Any person conducting, carrying on or managing any business consisting of maintaining or renting warehouse and storage space shall pay an annual business tax of $65.00 for every 50,000 square feet of floor space. (Ord. 1876 § 2, 6-6-89. 1990 Code § 5-1209.)