Grass Valley Municipal Code Ch. 5.04 Business Licenses Generally

For the purpose of this chapter the following words and phrases shall have the meanings respectively ascribed to them by this section.

"Business" means any business, commercial enterprise, trade, calling, vocation, profession, or any means of livelihood, whether or not carried on for gain or profit, including the offering of real property for rental by the owner of such property.

"Calendar year" means the period from January 1 of one year to December 31 of the same year.

"City" means the City of Grass Valley, California.

"Collector" means the director of finance or other city officer or employee charged with the administration of this chapter.

"Employee" means all persons engaged in the operation or conduct of any business, whether as owner, any member of the owner's family, partner, agent, manager, or solicitor, and also any and all other persons employed or working in the business eighteen hours or more per week.

"Fixed place of business" means premises occupied in the city for the particular purpose of conducting a business thereat and regularly kept open for that purpose.

"Gross receipts" means the total of amounts actually received or receivable from all sales; the total amount of compensation actually received or receivable 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 part of, or in connection with, the sale of materials, goods, wares or merchandise; and gains realized from trading in stocks or bonds, interest income, carrying charges, rents, royalties, fees, commissions, dividends, or other emoluments, however designed. Included in "gross receipts," are all receipts, cash, credits, and property of any kind or nature, without any deduction from them on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded from them:

1. Any tax required by law to be included in or added to the purchase price and collected from the customer or purchaser;

2. Cash discounts allowed and taken on sales;

3. Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded in either cash or by credit;

4. Amounts collected for others where the business is acting as an agent of trustee, to the extent that such amounts are paid to those for whom collected; provided, that the business furnish the collector with the names and addresses of the others and the amounts paid to them;

5. Receipts or refundable deposits, except that refundable deposits forfeited and taken into the income of the business shall not be excluded;

6. As to alcohol, alcoholic beverages, bars, restaurants, liquor stores and like businesses dispensing and/or selling alcoholic beverages, only that portion of the gross receipts related to the sale of alcohol shall be exempt;

7. Amounts received or receivable by persons having a fixed place of business within the city for acts or services performed outside the city, but only to the extent a business tax has been paid to the city or cities in which the acts or services were performed.

"Person" means all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts business or common law trusts, societies and individuals transacting and carrying on any business in the city.

"Quarter" means the period of three calendar months, the quarters beginning with the first day of January, April, July and October of each year; the word "quarter" includes fractions thereof.

"Sworn statement" means an affidavit sworn to before a person authorized to take oaths or a declaration or certification made under penalty of perjury.

(Ord. 470 § 2 (part), 1991: prior code § 12-1)

A. This chapter shall be administered by the collector or his designee acting as the collector.

B. The collector may make such rules and regulations not inconsistent with the provisions of this chapter as may be necessary or desirable to supplement or clarify such provisions or aid in their enforcement.

When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the business tax imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the city, or in the State of California, as the case may be, the collector may make such rules and regulations for the apportionment of the tax as are necessary or desirable to overcome the constitutional objections.

C. The determination of the type or class of business or businesses a taxpayer is engaged in, or about to engage in, shall be an administrative function of the collector.

In cases where a taxpayer believes he is placed in the wrong business or class of business or businesses, he may apply in writing to the collector for a change in classification setting forth in full the reason for requesting such change. The collector shall conduct an investigation and shall thereupon render a decision in writing as to the proper classification or classifications.

If the taxpayer is aggrieved by the collector's decision, he shall have the right of appeal to the city council.

D. In addition to all other powers conferred upon him, the collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not exceeding thirty days and, in such case, to waive any penalty that would otherwise have accrued. Interest, however, shall be added to any tax determined to be payable.

E. The collector shall have such other powers as are set out in this chapter or as may be prescribed by the city council.

(Ord. 470 § 2 (part), 1991: prior code § 12-2)

The ordinance codified in this chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation.

(Ord. 470 § 2 (part), 1991: prior code § 12-3)

Except as provided in this chapter, any person required to pay a license tax for transacting and carrying on any business under this chapter shall be relieved from the payment of any license tax for the privilege of doing such business which may be required under any other ordinance of the city, but shall remain subject to the regulatory provisions of such other ordinance. This section shall not apply to inspection fees.

(Ord. 470 § 2 (part), 1991: prior code § 12-4)

Neither the adoption of the ordinance codified in this chapter nor its superseding of any portion of any other ordinance of the city, shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in this chapter, nor be construed as a waiver of any license or any penal provision applicable to any such violation, or be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.

(Ord. 470 § 2 (part), 1991: prior code § 12-5)

When a person shall sell or offer to sell any foods, wares, merchandise, service, or other thing of value in the city; or when he shall, by use of signs, circulars, cards, telephone book, newspaper, radio or television, advertise, hold out or represent that he is commencing, engaging in, conducting, operating, managing, carrying on, or soliciting any business in the city; or when any person holds an active license or permit issued by a governmental agency indicating he is in business in the city and such person fails to deny by a sworn statement that he is conducting a business in the city, after having been requested to do so by the collector; then these facts shall be considered prima facie evidence that he is conducting or engaging in business in the city.

(Ord. 470 § 2 (part), 1991: prior code § 12-6)

There are imposed upon the businesses specified in this chapter, license taxes in the amounts prescribed in this chapter, and it is unlawful for any person to transact and carry on any business in the city without first having procured a license from the city to do so or without complying with any and all applicable provisions of this chapter.

(Ord. 470 § 2 (part), 1991: prior code § 12-7)

Before any license is issued to any person, such person shall make written application therefor, signed by the applicant, to the collector of the city; such application must state the nature or kind of business for which the license is required, the place where such business will be carried on or conducted, social security or federal identification number, a State Board of Equalization number and the names of the owners of the business. In cases where such business is not to be conducted or carried on at a permanent place of business in the city, then such application shall state the residence of the owners of such business. Businesses exempt or excluded per Section 5.04.190 of this chapter require a written application.

(Ord. 470 § 2 (part), 1991: prior code § 12-8)

Every person required to have a license under the provisions of this chapter shall make application for the license to the collector of the city, as provided in this chapter, and upon the payment of the prescribed tax, the collector shall issue to such person a license which shall contain:

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

B. The business licensed;

C. The place where such business is to be transacted and carried on;

D. The date of the expiration of such license;

E. Such other information as may be necessary for the enforcement of the provisions of this chapter. The license issued for the purpose of posting in places of business shall contain no reference to the amount of license tax paid.

(Ord. 470 § 2 (part), 1991: prior code § 12-9)

The amount of any license imposed by this chapter shall be deemed a debt to the city and any person carrying on any business defined in this chapter without having a license from the city to do so, shall be liable to an action in the name of the city in any court of competent jurisdiction, for the amount of the license by this chapter imposed on such business, together with all penalties then due on the amount in any such action.

(Ord. 470 § 2 (part), 1991: prior code § 12-10)

All licenses, unless otherwise expressly stated in this chapter, shall be construed to be annual licenses, and shall be payable on the first day of January of each year and all such licenses shall expire on December 31 of each year. If a license remains unpaid thirty days after the payable date it shall be considered delinquent. Licenses for any quarter within the calendar year shall be payable in advance as issued and shall expire at the close of the quarter for which the license may be issued; no greater or less amount shall be charged or received than is provided in this chapter and no license shall be issued for any period of time other than in this chapter provided.

(Ord. 470 § 2 (part), 1991: prior code § 12-11)

No license issued pursuant to this chapter shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may, upon application for the license and paying a transfer fee, have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business is or is about to be moved; provided, further, that transfer, whether by sale or otherwise, to another person under such circumstances, that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer, shall not be prohibited by this section. For the purpose of this section, stockholders, bondholders, partnerships or other persons holding an interest in a corporation or other entity defined in this chapter to be a person, are regarded as having the real or ultimate ownership of such corporation or other entity. Nothing in this section may be construed to conflict with or supersede the requirements of Section 5.04.170.

(Ord. 470 § 2 (part), 1991: prior code § 12-12)

Where a license for revenue purposes has been issued to any business by the city and the tax paid for it under the provisions of any ordinance enacted before the ordinance codified in this chapter, and the term of such license has not expired, then the license tax prescribed for the business by this chapter shall not be payable until the expiration of the term of such unexpired license.

(Ord. 470 § 2 (part), 1991: prior code § 12-13)

A duplicate or amended license may be issued by the collector to replace any license previously issued under the provisions of this chapter which has been lost or destroyed or has a need to be amended, upon the licensee's filing an affidavit attesting to such fact, and at the time of filing such affidavit paying to the collector a fee for processing a duplicate or amended license.

(Ord. 470 § 2 (part), 1991: prior code § 12-14)

Every person having a license under the provisions of this chapter shall keep such license posted or exhibited while in force, in some conspicuous part of the place of business. Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license at a place where it can be readily inspected.

The payment of a license tax and the issuance of a license to any person by the city shall not entitle the licensee to carry on any business unless he has complied with all the requirements of this code and all other applicable laws, nor to engage in, or to carry on, any business in any building or in any premises designated in such license in the event such building or premises are situated in an area or locality in which the conduct of such business is in violation of this code or any other law.

(Ord. 470 § 2 (part), 1991: prior code § 12-15)

The rate and amount of business license taxes, fees, penalties, fines and interest related to this chapter, shall be established by resolution of the city council.

(Ord. 470 § 2 (part), 1991: prior code § 12-16)

A separate license must be obtained for each branch establishment or location of the business transacted and carried on within the city, and each license shall authorize the licensee to transact and carry on only the business licensed by it at the location and 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 chapter shall not be deemed to be separate places of business or branch establishments.

(Ord. 470 § 2 (part), 1991: prior code § 12-17)

In the event that any person is conducting two or more types of businesses at the same location and under the same management, but which use a single set or integrated set of books and records, may at his option, pay only one license tax which shall be the tax that applies to the business requiring the highest license tax payment.

(Ord. 470 § 2 (part), 1991: prior code § 12-18)

A. 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 the State of California for the payment of such fees as are prescribed in this chapter.

B. Any person claiming an exemption pursuant to this section shall file a sworn statement with the collector stating the facts upon which exemption is claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the fees imposed by this chapter.

C. The provisions of this chapter shall not be deemed to require payment of a license fee by any doctor, lawyer, architect, dentist or other professional person not having a fixed place of business within the city who is called upon to come into the city to render services; provided, however, that nothing in this section or any subsection of it shall exempt any person from complying with any of the regulatory measures or provisions of the ordinances of the city save and except the payment of license fees required thereby; provided, further that any license exempt of fee is nontransferable.

D. The provisions of this chapter shall not apply to public utilities which are subject to and are paying a franchise tax to the city, except that any such firm when engaged in selling goods, wares or merchandise at retail shall be subject to license of such selling business.

E. Highway Carrier. Persons who operate vehicles for hire and pay Public Utilities Commission taxes for intercity (between cities) activities shall be exempt. Pursuant to the California Public Utilities Code (Highway Carriers Uniform Business License Tax Act), Chapter 3, Section 4301 et seq., and the regulations promulgated thereunder, intracity (within the city) business activities shall not be entitled to such exemption.

F. Bank/financial Institution. Any bank or financial institution which pays taxes under the California Revenue and Taxation Code Sections 23181 and 23182 shall be exempt.

G. Insurance Companies. Insurance companies are exempt under the provisions of Article XIII, Section 28 of the California Constitution. Independent insurance brokers shall not be exempt.

H. The provisions of this chapter shall not apply to any auctioneers who are licensed and regulated under provisions of Chapter 5.08 of this title.

I. The provisions of this chapter shall not apply to any garbage collectors who are licensed and regulated under the provisions of this code.

J. The city council 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 in this section.

K. An exemption will be revoked whenever there is reason to believe that any person to whom a tax exempt certificate was issued pursuant to this section has furnished false or misleading information in the affidavit.

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

M. The 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 in this section.

(Ord. 470 § 2 (part), 1991: prior code § 12-19)

A. The collector shall not issue a license to any person for conducting any business while there is pending any action under this chapter against that person as the holder of any license at the same location until such action has been concluded.

B. No license for any ensuing, current or unexpired period shall knowingly be issued or renewed to any person who at the time of making application therefor is indebted to the city for any unpaid business license tax.

C. If any person shall have made payment for his license with a check which was returned by the bank upon which it was drawn because of insufficient funds a fee, to be set by council resolution, for insufficient funds will be added to the amount of license tax due. The collector may thereafter require that such person make payment of his business license tax by cash, money order, or certified check.

D. Payment of business license tax is required prior to license issuance.

(Ord. 470 § 2 (part), 1991: prior code § 12-20)

A. No refund shall be issued for any business which ceases to exist or changes ownership after an annual license tax is paid.

B. No tax collected under the provisions of this chapter shall be refundable or prorated in any manner, except that if the business subject to the tax shall establish to the satisfaction of the collector it has overpaid the tax and shall, within a period of one year from the day on which the overpayment was made, file with the collector a claim for refund. Upon the filing of such a claim and when the collector determines that an overpayment has been made, the collector may refund, or allow credit on a renewal, of the amount overpaid.

(Ord. 470 § 2 (part), 1991: prior code § 12-21)

A. No statements shall be conclusive as to the matters set forth therein, nor shall the filing of them preclude the city from collecting by appropriate action such sum as is actually due and payable under the provisions of this chapter. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector or authorized employees of the city who are 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 tax due.

B. All persons subject to the provisions of this chapter shall keep complete records of business transactions, including sales, receipts, purchases and other expenditures, and shall retain all such records for examination by the collector. Such records shall be maintained for a period of at least three years. No person required to keep records under this section shall refuse to allow authorized representatives of the collector to examine those records at reasonable times and places.

(Ord. 470 § 2 (part), 1991: prior code § 12-22)

It is unlawful for the collector or any person having an administrative duty under the provisions of this chapter to make known in any manner whatever the business affairs, operations or information obtained by an investigation of records and equipment of any person required to obtain a license or pay a license tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income profits, losses, expenditures or any particular thereof set forth in any statement or application, or to permit any statement or application or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person; provided, that nothing in this section shall be construed to prevent:

A. The disclosure to, or the examination of records and equipment by, another City official, employee or agent for the collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter or collecting taxes imposed under the provisions of this chapter;

B. The disclosure of information to, or the examination of records by, federal or State officials or the tax officials of another city or county if a reciprocal arrangement exists, or to a grand jury or court of law upon subpoena;

C. The disclosure of information and the results of the examination of records of particular taxpayers, or relating to particular taxpayers, or to a court of law in a proceeding brought to determine the existence or amount of any license tax liability of the particular taxpayers to the city;

D. The disclosure, after the filing of a written request to that effect, to the taxpayer himself or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, however, that the city attorney approves each such disclosure and that the collector may refuse to make any disclosure referred to in this subsection when, in his opinion, the public interest would suffer thereby;

E. The disclosure of the names and business addresses of persons to whom licenses have been issued and the general type or nature of their business;

F. The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of license taxes or submits an offer of compromise with regard to a claim asserted against him by the city for license taxes, or when acting upon any other matter;

G. The disclosure of general statistics regarding taxes collected or business done in the city.

(Ord. 470 § 2 (part), 1991: prior code § 12-23)

In all cases where the amount of license to be paid by any person is based upon the number of employees, such person shall, before obtaining a license for his business, render to the collector a sworn statement showing the average number of employees employed by such person during the license period next preceding the date of such statement.

No such statement shall be conclusive upon the city or upon any officer thereof as to the matters therein set forth, and it shall not prejudice the rights of the city to recover any amount that may be ascertained to be due from said persons, in addition to the amount shown by such statement to be due in case such statement be found to be incorrect. The correctness of all such statements shall be subject to verification by the collector or an employee of the city authorized and empowered to inspect and audit all books and records of any and all persons licensed to carry on any business specified in this chapter.

(Ord. 470 § 2 (part), 1991: prior code § 12-24)

A. If any person fails to file any required statement within the time prescribed or if, after demand therefor made by the collector, he fails to file a corrected statement, or if any person subject to the tax imposed by this chapter fails to apply for a license, the collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain.

B. If the collector is not satisfied with the information supplied in applications or statements filed, he may determine the amount of any license tax due by means of any information he may be able to obtain.

C. If such a determination is made, the collector shall give notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within fifteen days after the mailing or serving of such notice, make application in writing to the collector for a hearing on the amount of the license tax. If such application is made, the collector shall cause the matter to be set for hearing within fifteen days before the city council. The collector shall give at least ten days' notice to such person of the time and place of hearing in the manner prescribed above for serving notices of assessment. The city 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 prescribed above for serving notices of assessment.

(Ord. 470 § 2 (part), 1991: prior code § 12-25)

Any person aggrieved by any decision of the collector with respect to any provision of this chapter may appeal to the city council by filing a notice of appeal with the clerk of the council within fifteen days after notice of the decision of the collector. The city council shall thereupon fix a time and place for hearing such appeal not later than thirty days after the notice of appeal is received by the clerk. The clerk of the council shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to such person at his last known address. The city council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of the ordinance codified in this chapter.

(Ord. 470 § 2 (part), 1991: prior code § 12-26)

A. It shall be the duty of the collector and he is directed to enforce each and all of the provisions of this chapter.

B. The chief of police shall render such assistance in the enforcement of these provisions as may from time to time be required by the collector.

C. The collector and each and all of his 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 under the provisions of this chapter and demand the exhibit of the license certificate. Any person having such license certificate theretofore issued in his possession or under his control who willfully fails to exhibit it on demand shall be guilty of an infraction and subject to a penalty.

D. The conviction and fine of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business, nor shall the payment of any license tax prevent a criminal prosecution for the violation of any of the provisions of this chapter. 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.

(Ord. 470 § 2 (part), 1991: prior code § 12-27)

For failure to pay a business tax when due, the collector shall add a penalty to the business license tax. Where an audit or inspection of the books or records of a business reveals the amount of business tax paid for any business tax period is less than the amount which was actually due, it shall be deemed for purposes of this section that such deficiency was a failure to pay a business tax when due. Interest charges shall be added to all taxes imposed and remaining unpaid after delinquency, including any deficiency in payment of taxes. Penalties and interest as provided in this section shall be assessed from the date when the deficiency was required to be paid pursuant to this chapter. The collector may, for good cause shown, waive all or any part of any otherwise applicable penalty and interest.

(Ord. 470 § 2 (part), 1991: prior code § 12-28)

Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any authorized officer of this city any material fact in procuring the license or permit provided for in this chapter shall be deemed guilty of a misdemeanor punishable under Chapter 1.12 of this Code, nevertheless, that any violation or offense may be deemed an infraction punishable under Chapter 1.12 of this Code and charged as such in the discretion and at the election of the prosecuting attorney, in which event the punishment therefor shall not be imprisonment but a fine not to exceed the amounts specified by Chapter 1.12 of this Code as then in effect. Every day a violation of any provision of this chapter continues constitutes a separate offense.

(Ord. 470 § 2 (part), 1991: prior code § 12-29; Ord. No. 791, § 1, 9-26-2017)