Gilroy Municipal Code Art. III Exemptions from License Tax

The provisions of this chapter shall not be deemed or construed to require the payment of a license to conduct, manage, or carry on any business, occupation, or activity, or require the payment of any license from 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, firm, or corporation; nor shall any license be required for the conducting of any entertainment, dance, concert, exhibition, or lecture on scientific, historical, literary, religious, or moral subjects, whenever the entire receipts from the same are to be appropriated to any church or school, or to any religious or benevolent purpose; nor shall any license be required for the conducting of any entertainment, dance, concert, exhibition, or lecture, whenever the receipts from the same are to be appropriated for the purposes and objects for which such association or organization was formed and from which profit is not derived, either directly or indirectly, by any individual, firm, or corporation; provided, however, that nothing in this section contained shall be deemed to exempt any such institution or organization from complying with the provisions of this ordinance requiring such institution or organization to obtain a permit from the city council, or proper officer, to conduct, manage, or carry on any profession, trade, calling or occupation.

(Ord. No. 646, § 11)

None of the license fees provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce. In any case where a license fee is believed by a licensee or applicant for license to place an undue burden upon such commerce, he may apply to the city license collector for an adjustment of the fee so that it shall not be discriminatory, unreasonable, or unfair as to such commerce. Such application may be made before, at, or within six months after payment of the prescribed license fee.

(Ord. No. 646, § 11)

The applicant described in the preceding section shall, by affidavit and supporting testimony, show his method of business and the gross volume or estimated gross volume or estimated gross value of business and such other information as the city license collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The city license collector shall then conduct an investigation, comparing applicant’s business with other businesses of like nature and shall make findings of fact from which he shall determine whether the fee fixed by this chapter is unfair, unreasonable or discriminatory as to applicant’s business and shall fix as the license fee for the applicant, an amount that is fair, reasonable and nondiscriminatory, or, if the fee has already been paid, shall order a refund of the amount over and above the fee so fixed.

(Ord. No. 646, § 11)

In fixing the fee to be charged, the city license collector shall have the power to base the fee upon a percentage of gross sales, or any other method which will assure that the fee assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the fees as prescribed by this chapter. Should the city license collector determine the gross sales measure of the fee to be the fair basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the city or annually, a sworn statement of the gross sales and pay the amount of fee therefor; provided, that no additional fee during any one calendar year shall be required after the licensee shall have paid an amount equal to the annual license as provided in this chapter.

(Ord. No. 646, § 11; Ord. No. 85-7, § 14, 2-19-1985)

Any person aggrieved by the action of the city license collector in the assessing of the fee as provided in this chapter shall have the right of appeal to the city council. Such appeal shall be taken by filing with the city council, within fourteen days after notice of the action complained of has been mailed to such person’s last known address, a written statement setting forth fully the grounds for the appeal. The city council shall set a time and place for a hearing on such appeal and notice of such hearing to be held at a regular council meeting within thirty days of receipt by the council of notice of appeal, shall be given to the appellant. The decision and order of the council on such appeal shall be final and conclusive.

(Ord. No. 646, § 11)

Every honorable discharged soldier, sailor, or marine from the military or naval service of the United States who is unable to earn a livelihood by manual labor, may hawk, peddle or vend any kind of goods, wares, or merchandise, other than spirituous, vinous, malt or alcoholic liquors, in the city, without paying a license tax or obtaining a license therefor, under a permit for that purpose issued by the license collector; and the city collector shall issue such permit to any person making satisfactory proof that he is entitled thereto under the provisions thereof; provided, that no such permit shall be issued until the applicant complies with the regulations for soliciting as set forth in Chapter 16A.

(Ord. No. 646, § 11)

Editor’s note: Ord. No. 85-7, § 15, adopted February 19, 1985, repealed § 13.36. Former § 13.36 was concerned with farmers, poultrymen, or horticulturists, and derived from Ord. No. 646, § 11.

In all cases of doubt as to any applicant being entitled to an exemption from license tax, or from the application of any of the provisions of this chapter, the burden of establishing the right to exemption shall be upon the applicant. All applications for exemption in such cases shall be referred to the city council, which shall consider and act upon the same and grant or refuse such exemptions as in the use of its discretion it shall deem just.

(Ord. No. 646, § 11)