Chapter 34 — TAXATION

This subchapter shall be known as the “Uniform Local Sales and Use Tax Ordinance of the City of Grover Beach” or “this subchapter.”

(Prior Code, § 10000) (Ord. 1, passed 12-28-1959)

The City Council hereby declares that this subchapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: (Prior Code, § 10001)

(A) To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Cal. Revenue and Taxation Code Part 1.5 of Division 2;

(Prior Code, § 10001.2)

(B) To adopt a sales and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Cal. Revenue and Taxation Code Part 1.5 of Division 2;

(Prior Code, § 10001.3)

(C) To adopt a sales and use tax ordinance which imposes a 1% tax and provides a measure thereof that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practical to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the State Sales and Use Taxes;

(Prior Code, § 10001.4)

(D) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible, be consistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this subchapter; and

(Prior Code, § 10001.5)

(E) To adopt a sales and use tax ordinance which can be administered in a manner that will exclude the receipts of particular sales from the measure of the sales tax imposed by this city which have been included in the measure of the sales tax imposed by any other city and county, county other than the county in which this city is located, or city in this state, and avoid imposing a use tax on the storage, use, or other consumption of tangible personal property in this city when the gross receipts from the sale of, or the use of, that property has been subject to a sales or use tax by any other city and county, county other than the county in which this city is located, or city in the state, pursuant to a sales and use tax ordinance enacted under the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2. (Prior Code, § 10001.6)

(Ord. 1, passed 12-28-1959)

This subchapter shall become operative on January 1, 1960, and prior thereto the city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax subchapter, provided, that if the city shall not have contracted with the said State Board of Equalization as above set forth, prior to January 1, 1960, this subchapter shall not be operative until the first day of the first calendar quarter following the execution of such a contract by the city and by the State Board of Equalization. (Prior Code, § 10002) (Ord. 1, passed 12-28-1959)

(A) For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the city at the rate of 1% of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the city on and after the operative date of this subchapter.

(Prior Code, § 10003)

(B) For the purposes of this subchapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer, or his or her agent, to an out-of-state destination. The gross receipts from such sales shall include delivery charges when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the Board of Equalization. (Prior Code, § 10003.1)

(C) Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, all of the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2 as amended and in force and effect on January 1, 1960, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein. (Prior Code, § 10003.2)

r provided and except insofar as they are inconsistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, all of the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2 as amended and in force and effect on January 1, 1960, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein. (Prior Code, § 10003.2)

(D) Wherever, and to the extent that, in Cal. Revenue and Taxation Code Part 1 of Division 2 the state is named or referred to as the taxing agency, the city shall be substituted therefor. Nothing in this section shall be deemed to require the substitution of the name of the city for the word “state” when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the State; nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof, rather than by or against the State Board of Equalization in performing the functions incident to the administration or operation of this subchapter; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state, where the result of the substitution would be to provide an exemption from this tax with respect to certain gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to the tax by the state under the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the state under the said provisions of that Code; and, in addition, the name of the city shall not be substituted for that of the state in Cal. Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, and 6828, as adopted.

(Prior Code, § 10003.3)

(E) If a seller’s permit has been issued to a retailer under Cal. Revenue and Taxation Code § 6067, an additional seller’s permit shall not be required by reason of this subchapter. (Prior Code, § 10003.4)

(F) There shall be excluded from the gross receipts by which the tax is measured:

(1) The amount of any sales or use tax imposed by the state upon a retailer or consumer;

(2) The gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes; and

(3) The gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of the state, the United States, or any foreign government.

(Prior Code, § 10003.5)

(Ord. 1, passed 12-28-1959; Ord. 30, passed 12-6-1961; Ord. 73-12, passed 11-19-1973)

(A) (1) An excise tax is hereby imposed on the storage, use, or other consumption in the city of tangible personal property purchased from any retailer on or after the operative date of this subchapter for storage, use, or other consumption in the city at the rate of 1% of the sales price of the property.

(2) The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

(Prior Code, § 10004)

(B) Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, all of the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2, as amended, and in force and effect on January 1, 1960, applicable to use taxes are hereby adopted and made a part of this section as though fully set forth herein.

(Prior Code, § 10004.1)

(C) (1) Wherever, and to the extent, that in Cal. Revenue and Taxation Code Part 1 of Division 2 the state is named or referred to as the taxing agency, the city shall be substituted therefor.

(2) Nothing in this division (C) shall be deemed to require the substitution of the name of the city for the word “state” when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the state; nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof rather than by or against the State Board of Equalization in performing the functions incident to the administration or operation of this subchapter; and neither shall the substitution be deemed to have been made in this section as though fully set forth herein. (Prior Code, § 10004.2)

en the result of that substitution would require action to be taken by or against the city or any agency thereof rather than by or against the State Board of Equalization in performing the functions incident to the administration or operation of this subchapter; and neither shall the substitution be deemed to have been made in this section as though fully set forth herein. (Prior Code, § 10004.2)

(D) Whenever, and to the extent that, in Cal. Revenue and Taxation Code Part 1 of Division 2 the state is named or referred to as the taxing agency, the name of the city shall be substituted therefor. Nothing in this division (D) shall be deemed to require the substitution of the name of the city for the word “state” when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization or the name of the State Treasury, or of the Constitution of the State; nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this subchapter; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state, where the result of the substitution would be to provide an exemption from this tax with respect to certain storage, use, or other consumption of tangible personal property which would not otherwise be exempt from this tax while such

storage, use, or other consumption remains subject to tax by the state under the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2, or to impose this tax with respect to certain storage, use, or other consumption remains subject to tax by the state under the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2, or to impose this tax with respect to certain storage, use, or other consumption of tangible personal property which would not be subject to tax by the state under the said provisions of that Code; and in addition, the name of the city shall not be substituted for that of the state in Cal. Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, and 6828, as adopted, and the name of the city shall not be substituted for the word “state” and the phrase “retailer engaged in business in this State” in Cal. Revenue and Taxation Code § 6203; nor in the definition of that phrase in Cal. Revenue and Taxation Code § 6203.

(Prior Code, § 10004.3)

• (E) (1) There shall be exempt from the tax due under this section:

• (a) The amount of any sales or use tax imposed by the state upon a retailer or consumer;

(b) The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Cal. Revenue and Taxation Code Part 1.5 of Division 2 by any city and county, county, or city in the state; and

(c) The storage, use, or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(2) In addition to the exemptions provided in the Revenue and Taxation Code §§ 6366 and 6366.1, the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government.

(Prior Code, § 10004.4)

(Ord. 1, passed 12-28-1959; Ord. 30, passed 12-6-1961; Ord. 73-12, passed 11-19-1973)

All amendments of Cal. Revenue and Taxation Code enacted subsequent to the effective date of this subchapter which relate to the sales and use tax and which are not inconsistent with Cal. Revenue and Taxation Code Part 1.5 of Division 2 shall automatically become a part of this subchapter.

(Prior Code, § 10005) (Ord. 1, passed 12-28-1959)

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the city, or against any officer of the state or this city to prevent or enjoin the collection under this subchapter, or Cal. Revenue and Taxation Code Part 1.5 of Division 2, or any amount of tax required to be collected.

(Prior Code, § 10006) (Ord. 1, passed 12-28-1959)

BUSINESS CERTIFICATE TAX

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates, or requires, a different meaning.

BUSINESS. Includes professions, trades, vocations, rentals, leases, enterprises, establishments, and occupations, and all and every kind of calling, any of which is conducted for the purpose of earning in whole, or in part, a profit or livelihood, whether or not a profit or a livelihood actually is earned thereby, whether paid in money, goods, labor, or otherwise.

BUSINESS FLOOR SPACE. Rentable square feet of an office, place of business, or lodging within the city and includes the proportionate share of the building service areas such as lobbies, corridors, and other common areas in a building. The rental square footage shall be computed by measuring to the inside finish of permanent outer building walls and shall include space used by columns and projections necessary to the building. BUSINESS FLOOR SPACE does not include vertical penetrations through the building such as stairs, elevators, or heating ventilation, air conditioning, utility, or telephone systems. If the BUSINESS FLOOR SPACE is owned by the taxpayer, the business floor space will be calculated in the same manner as above and as if the area was rented. BUSINESS FLOOR SPACE , for purposes of defining rentable square feet of an auto dealership or any business which the principal income is derived from selling vehicles, shall include the building and facilities along with the area of the dealer lot that contains the inventory of vehicles or where vehicles are parked. The dealer lot may consist of parking areas on the same or separate lot from the dealer’s facilities or buildings. For purposes of defining business floor space of any business operated out of a personal residence the square footage tax shall be based on the amount of square foot used for business as designated in the home occupation permit application. BUSINESS FLOOR SPACE , for purposes of calculating square footage taxes, shall be based upon the square footage of each vending machine operated within the city and the applicant shall submit a separate business tax certificate application for each vending machine(s) location. BUSINESS LICENSE TAX. A tax payable when the city issues a business tax certificate by every person

conducting, carrying on, or managing any business within the city but does not lease, own, occupy, or otherwise maintain an office or place of business within the jurisdictional boundaries of the city.

BUSINESS SQUARE FOOTAGE TAX. As defined within § 34.037. BUSINESS TAX. Includes both business license taxes and business square footage taxes. (Prior Code, § 10200) (Ord. 18-07, passed 11-6-2018)

The term BUSINESS TAX CERTIFICATE as used in this subchapter shall not be construed to mean a permit. The taxes prescribed by this subchapter constitute a tax for revenue purposes, and are not regulatory permit fees. The payment of the business license tax or business square footage tax required by the provisions of this subchapter and its acceptance by the city, and the issuance of such certificate to any person, shall not entitle the holder thereof to carry on any business unless they have complied with all of the requirements of this subchapter and all other applicable provisions of the city municipal code, or to carry on any business in any building or on any premises designated in such certificate 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 this code.

(Prior Code, § 10201) (Ord. 18-07, passed 11-6-2018)

Except as otherwise expressly provided in this subchapter, no person, whether as principal or agent, clerk, or employee either for himself or herself or for any other person or for any body corporate, or as an officer of any corporation, or otherwise, shall commence or carry on any trade, calling, profession, or occupation in the city, in this subchapter specified, without first having procured a business tax certificate, and without complying with any and all

regulations of such trade, calling, profession, or occupation contained in this subchapter. Any person procuring a business tax certificate shall pay the tax as defined within this subchapter.

(Prior Code, § 10202) (Ord. 18-07, passed 11-6-2018)

(A) Any person carrying on any trade, calling, profession, or occupation without having a business tax certificate to do so shall be liable for the amount of the tax imposed by this subchapter on such trade, calling, profession, or occupation. The amount of such tax, including any penalty or interest thereon, shall be a debt owed to the city.

(B) The City Attorney may file suit in the name of the city, in any court of competent jurisdiction, for any unpaid business license tax or business square footage tax imposed by this subchapter, within three years from the delinquency date thereof.

(C) The conviction and punishment of any person for transacting any trade, calling, profession, or occupation without a business tax certificate shall not excuse or exempt such person from the payment of any business license tax or business square footage tax due and unpaid at the time of such violation of the provisions of this subchapter. (Prior Code, § 10203) (Ord. 18-07, passed 11-6-2018)

(A) Each applicant for a business tax certificate shall properly fill in an application in such form as the Administrative Services Director, or his or her designee, may prescribe.

(B) A certificate, in such form as the Administrative Services Director, or his or her designee, may prescribe, shall be issued on payment of the business license tax or business square footage tax prescribed in this subchapter and shall be in full force and effect until:

• (1) The certificate holder fails to make payments as required by this subchapter;

• (2) Revoked by the Administrative Services Director, or his or her designee;

• (3) Business changes address;

• (4) Business is discontinued;

• (5) Business ownership changes; and/or

• (6) The business tax certificate expires.

(C) A certificate holder with no permanent business address within the city shall be issued a business tax certificate for each business tax certificate period with such business tax certificate showing the expiration date, and shall pay the amount of business license tax as required in this subchapter.

(D) No business tax certificate granted or issued under any provision of this subchapter shall in any manner be transferred or assigned.

(E) In no case shall any mistake made by the Administrative Services Director, or his or her designee, in stating the amount of the business license tax or business square footage tax rate prevent or prejudice the collection of what shall be actually due from anyone carrying on any trade, calling, profession, or occupation subject to a business tax certificate under this subchapter.

(F) No business tax certificate shall be issued to any holder of a delinquent business license tax or business square footage tax until both the business license tax or business square footage tax and penalty or interest shall have been paid.

(Prior Code, § 10204) (Ord. 18-07, passed 11-6-2018)

(A) All business license tax or business square footage taxes, as applicable under this subchapter, shall be paid in advance at the Administrative Services Department. Where a business tax certificate holder conducts several branches or places of business of the same class, a separate business tax certificate shall be secured covering each branch of such business.

(B) The annual business license tax or business square footage tax in this subchapter shall be due and payable on the first business day of January of each year based upon the methodology of calculation of the tax as defined within this subchapter.

(C) No greater or less amount of money shall be charged or received for any business tax certificate than is provided in this subchapter.

(D) The Administrative Services Director, or his or her designee, if he or she deems it necessary in order to ensure payment or facilitate collection of business license taxes or business square footage taxes, may require returns and payment of such taxes for other than the time periods specified in this subchapter. (Prior Code, § 10205) (Ord. 18-07, passed 11-6-2018)

Every person having a business tax certificate under the provisions of this subchapter, and carrying on a trade, calling, profession, or occupation at a fixed place of business, shall keep such business tax certificate posted and exhibited while in force in some conspicuous place where such business is being conducted. Every person having a business tax certificate, and not having a fixed place of business within the city shall carry such business tax certificate with him or her at all times while carrying on the trade, calling, profession, or occupation for which the same was granted. Every person having a business tax certificate under the provisions of this subchapter shall produce and exhibit the same whenever requested to do so by any police officer, or by any person authorized to issue or inspect business tax certificates or certificates for the city, or to collect business license taxes or business square footage taxes for the city.

(Prior Code, § 10206) (Ord. 18-07, passed 11-6-2018)

A police officer or the code compliance officer may enter free of charge, during regular business hours, any place of business for which a business tax certificate is required by this subchapter and demand the exhibition of any such business tax certificate by any person engaged or employed in the transaction of such business. The police officer or code compliance officer shall further have the authority to inspect and verify the pertinent square footage of any building or structure subject to this subchapter.

(Prior Code, § 10207) (Ord. 18-07, passed 11-6-2018)

(A) (1) Every person required to have a business tax certificate pursuant to the provisions of this subchapter shall make a written application to the Administrative Services Director, or his or her designee, and submit the following information:

(a) The nature or kind of business for which the business tax certificate is requested;

(b) The place where the business is to be conducted whether within or outside of the city and, if the business is not to be conducted at a permanent location, the residence address, identified as such, of the owners of the business. For purposes of this subchapter, a post office box is not considered a place of business or a permanent location for purposes of imposing any tax in accordance with this subchapter;

(c) If the application is made for the issuance of business tax certificate to a person to do business under a fictitious name, the names, the last four digits of their Social Security numbers, and residence addresses of the owners of the business;

(d) If the application is made for the issuance of a business tax certificate to a corporation or partnership, the names, franchise tax number, and residence addresses of the officers or partners thereof; and

(e) Any further information that the Administrative Services Director, or his or her designee, may require to enable the issuance of the business tax certificate.

(2) The Administrative Services Director, or his or her designee, will not issue the business tax certificate unless the applicant has submitted the information required within this section and paid the appropriate tax as required under this subchapter as well as any other unpaid business license tax or business square footage tax amount due.

(B) No business tax certificate shall be issued except on the filing of the application herein provided for; and in the event it shall appear that incorrect information is contained in such application and that the business tax certificate collected was not in the correct amount, the city shall be entitled to collect any unpaid balance of such business licensed tax or business square footage tax, or if any business tax certificate holder has overpaid to refund the excess amount collected.

(C) (1) No statements in the application shall be conclusive upon the city, or upon any officer thereof, as to the matters therein set forth, and the same shall not prejudice the right of the city to examine or audit the books or accounts of any person subject to business tax certificate or to recover any amount that may be ascertained to be due, in case such statement should be found to be incorrect.

(2) If any person hereby required to make any such statement shall fail to do so, such person shall be required to pay the business license tax or business square footage tax at such rate as the Administrative Services Director, or his or her designee, may after investigation, fix as the proper rate to be paid by such person, and shall also be deemed guilty of a violation of this subchapter.

(3) The tax shall be at a rate defined within this subchapter, as amended by §§ 34.037 or 34.038. (Prior Code, § 10208) (Ord. 18-07, passed 11-6-2018)

The Administrative Services Director, or his or her designee, or any person having an administrative duty under the provisions of this subchapter to the extent permitted by law, will not make known in any manner whatsoever the business affairs, operations, or information obtained by an investigation of records and equipment of any person required to obtain a business tax certificate, or pay a business license tax or business square footage 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 collection of taxes for the sole purpose of administering or enforcing any provisions of this subchapter; or collecting taxes imposed hereunder;

(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, or city and county, if a reciprocal arrangement exists; or to a grand jury or court of law, upon subpoena;

(C) The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any business 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, or to his or her 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 Administrative Services Director, or his or her designee, may refuse to make any disclosure referred to in this division (D) when in his or her opinion the public interest would suffer thereby;

(E) The disclosure of the names and addresses of persons to whom registration certificates have been issued, the names of officers of corporations and members of partnerships to whom registration certificates have been issued, and the general type or nature of their business;

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

of such information as may be necessary in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of business license taxes or business square footage taxes, or submits an offer of compromise with regard to a claim asserted against him or her by the city for business license taxes or business square footage taxes, or when acting upon any other matter; and

(G) The disclosure of general statistics regarding taxes collected or business done in the city when reported in the aggregate.

(Prior Code, § 10209) (Ord. 18-07, passed 11-6-2018)

(A) Penalties on deficiency determinations made because of underpayment.

(1) The Administrative Services Director, or his or her designee, shall add the penalty designated in the Master Fee Schedule, computed as a percentage of the amount of the additional assessment, to any additional assessment imposed as a result of a deficiency determination made because of underpayment if any part of the deficiency is due to negligent or intentional disregard of any provision of this subchapter.

(2) The Administrative Services Director shall add the penalty designated in the Master Fee Schedule, computed as a percentage of the amount of the additional assessment, to any additional assessment imposed as a result of a deficiency determination made because of underpayment if any part of the deficiency is due to fraud.

(B) Penalties on deficiency determinations made because of failure to file.

(1) The Administrative Services Director, or his or her designee, shall add the penalty designated in the Master Fee Schedule, computed as a percentage of the amount of the unpaid business tax, to a deficiency determination made because of failure to file a return if such failure to file is due to negligent disregard of any provision of this subchapter.

(2) The Administrative Services Director, or his or her designee, shall add the penalty designated in the Master Fee Schedule, computed as a percentage of the amount of the unpaid business tax, to a deficiency determination made because of failure to file a return if the person against whom the deficiency determination is made has previously held a business tax certificate in the city, or if such failure is due to intentional disregard of any provision of this subchapter.

(3) The Administrative Services Director, or his or her designee, shall add the penalty designated in the Master Fee Schedule, computed as a percentage of the amount of the unpaid business tax, to a deficiency determination made because of failure to file a return if such failure is due to fraud.

(C) Penalties for delinquent payment of business tax and deficiency determinations.

(1) The Administrative Services Director, or his or her designee, shall, immediately after one calendar month from the date that business tax, including deficiency determinations are payable, add to all business taxes remaining unpaid the delinquency penalty designated in the Master Fee Schedule, computed as a percentage of the amount of such delinquent business tax, excluding penalties and interest.

(2) The Administrative Services Director, or his or her designee, shall immediately after two calendar months from the date that business taxes, including deficiency determinations, are payable, added to all taxes still remaining unpaid the additional delinquency penalty designated in the Master Fee Schedule, computed as a percentage of the amount of such delinquent taxes, excluding penalties and interest.

ministrative Services Director, or his or her designee, shall immediately after two calendar months from the date that business taxes, including deficiency determinations, are payable, added to all taxes still remaining unpaid the additional delinquency penalty designated in the Master Fee Schedule, computed as a percentage of the amount of such delinquent taxes, excluding penalties and interest.

(D) Interest on deficiency determinations. In addition to the penalty or penalties imposed, interest at the rate of 0.75% per month, or fraction thereof, shall, be paid on the amount of the business tax, exclusive of penalties, from the last day of the first month of the business tax certificate period or periods for which a deficiency determination is imposed until the date of payment.

(E) Extensions of time to make payment. Prior to the due date, the Administrative Services Director, or his or her designee, may extend, for good cause, for a period not to exceed one calendar month, the time to make any return or payment of taxes. No further extension shall be granted. Any person to whom an extension is granted who makes a return and pays the taxes within the period of extension shall not pay any penalty or interest on the amount of the taxes.

(F) Holidays. In the event the last day of the calendar month falls on a Saturday, Sunday, or legal holiday, business taxes may be paid without penalty on the first succeeding business day. Thereafter, the penalty, penalties, or interest provided in this section shall be added.

(Prior Code, § 10210) (Ord. 18-07, passed 11-6-2018)

(A) If the Administrative Services Director, or his or her designee, is not satisfied with the return or returns of business taxes, or the amount of the taxes paid to the city by any person, he or she may compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns, or upon the basis of any information within his or her possession or that may come into his or her possession. One or more deficiency determinations may be made of the amount due for one or more than one annual period. The amount of each deficiency determination is immediately due and payable. Each determination shall become final and delinquent one calendar month after notice thereof as herein provided.

(B) In making a determination, the Administrative Services Director, or his or her designee, shall offset overpayments previously made, if any, together with interest on the overpayments, against any underpayment for a subsequent period or periods, or against penalties and interest on the underpayments. The interest on underpayments and overpayments shall be computed in the manner set forth in this subchapter.

(C) The Administrative Services Director, or his or her designee, shall give written notice of a deficiency determination to each person against whom a determination is made. The notice may be served personally or by mail. In case of service by mail of any notice required by this subchapter, the service is complete at the time of deposit in the United States Post Office.

(D) Except in the case of fraud, intent to evade this subchapter or authorized rules and regulations, or failure to make a return, every deficiency determination shall be made and notice thereof mailed within three years after the last day of the month following the close of the business tax certificate period for which the amount is determined or within three years after the return is filed, whichever period expires later.

(E) If any person fails or refuses to make, within the time provided in this subchapter, any return and payment of said taxes or any portion thereof required by this subchapter or makes a fraudulent return or otherwise willfully attempts to evade this subchapter, the Administrative Services Director, or his or her designee, shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the taxes due. As soon as the Administrative Services Director, or his or her designee, procures facts and information upon which to base the assessment of any tax imposed by this subchapter, he or she shall determine and assess against such

ctor, or his or her designee, shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the taxes due. As soon as the Administrative Services Director, or his or her designee, procures facts and information upon which to base the assessment of any tax imposed by this subchapter, he or she shall determine and assess against such

person the taxes, interest, and penalties provided for by this subchapter. When such a determination is made, the Administrative Services Director, or his or her designee, shall give written notice of the amount so assessed. Such determination and notice shall be made and mailed within three years after discovery by the Administrative Services Director, or his or her designee, of any fraud, intent to evade, or failure to file a return. The amount of each deficiency determination is immediately due and payable. Any determination shall become final and delinquent one calendar month after notice thereof as herein provided.

(F) If the Administrative Services Director, or his or her designee, believes that the collection of any business tax will be jeopardized by delay, or if any determination will be jeopardized by delay, he or she shall thereupon make a determination of the taxes due. The amount determined is immediately due and payable. If the amount specified in the determination is not paid within ten days after service of notice thereof upon the person against whom the determination is made, the amount becomes final and delinquent, and the delinquency penalty or penalties and the interest provided in § 34.030 shall attach to the amount of the taxes, unless a petition for redetermination is filed within ten days.

(Prior Code, § 10211) (Ord. 18-07, passed 11-6-2018)

(A) Any person against whom a determination is made under § 34.031 or any person directly interested may petition for a redetermination within one calendar month after service of notice thereof; provided, however, that a petition for redetermination of a determination made under § 34.031(F) shall be filed within ten days after service of notice thereof. If a petition for redetermination is not filed within the applicable period, the determination becomes final and delinquent at the expiration of the period.

(B) If a petition for redetermination is filed within the applicable period, the Administrative Services Director shall reconsider the determination, and, if the person has so requested in his or her petition, shall grant the person an oral hearing and shall give him or her ten days’ notice of the time and place of the hearing. The Administrative Services Director may continue the hearing from time to time as may be necessary.

(C) The Administrative Services Director, or his or her designee, may decrease or increase the amount of the determination before it becomes final but the amount may be increased only if a claim for the increase is asserted by the Administrative Services Director, or his or her designee, at or before the hearing.

(D) The decision of the Administrative Services Director, or his or her designee, upon a petition for redetermination becomes final and delinquent 15 days after service upon the petitioner of notice thereof.

(E) No petition for redetermination shall be effective for any purpose unless at or before the filing thereof the amount found due in the original determination is paid, or a bond or other security satisfactory to the Administrative Services Director, or his or her designee, is filed with him or her guaranteeing payment of any amount finally determined to be due.

(Prior Code, § 10212) (Ord. 18-07, passed 11-6-2018)

All sellers, consumers, and holders of city business tax certificates shall keep complete records of all business transactions, including sales, receipts, purchases, and other expenditures, and shall retain all such records for purposes of examination by the Department of Administrative Services or their agent or contract services of the city. Such records shall be maintained for a period of at least three years and shall be submitted to the city or its delegated agent or contractor upon request by the city.

(Prior Code, § 10213) (Ord. 18-07, passed 11-6-2018)

(A) Whenever a business license tax or business square footage tax has been paid to the city under a mistake of law or a mistake of fact, the tax shall be refunded when a demand for refund has been made on a form prescribed by the Administrative Services Director. No refund shall be approved after three years from the date of receipt by the city of the money to be refunded.

(B) For purposes of this section, a MISTAKE OF LAW OR FACT shall be defined as follows.

(1) MISTAKE OF FACT. When the money was either paid by the demandant or received by the city because of a mistake of fact when such payment or receipt would not have been made if such mistake had not been made, then refund thereof may be made upon a demand for refund, provided that if the mistake was wholly or partly the city’s and the mistake was induced by an act or statement of the demandant, or if the mistake was wholly the demandant’s and the city has made an investigation, inspection, or examination, or done any similar work or rendered services, the head of the department, division, or bureau may ascertain the value or cost of such and order it deducted from the amount to be refunded. His or her determination shall be final when approved by the Administrative Services Director, or his or her designee, but there shall be added thereto the amount designated for handling charges in the Master Fee Schedule.

(2) MISTAKE OF LAW. When the money was either paid by the demandant or received by the city through a mistake as to the legal necessity for making the payment, refund thereof may be made upon a demand for refund. The demand shall be promptly transmitted to the head of the department involved for his or her recommendation and his or her statement of the facts upon which the recommendation is based. The demand and recommendation shall be presented to the City Attorney for his or her decision thereon.

(C) If the Administrative Services Director, or his or her designee, determines that any overpayment has been made intentionally or by reason of carelessness, he or she shall not allow any interest thereon. (Prior Code, § 10214) (Ord. 18-07, passed 11-6-2018)

(A) Nothing in this subchapter shall be construed as applying to any person conducting any business or occupation exempt from taxation, business license tax, or business square footage tax by virtue of § 14 of Art XIII of the Constitution of the State, or the Constitution of the United States, nor shall it be construed to authorize any act prohibited by any law of the state or by the provisions of this code, or to authorize the conduct of any business for which a permit from the City Council is required, until such permit is obtained.

(B) The provisions of this subchapter shall not apply to commercial travelers or selling agents selling their goods to dealers for future deliveries.

(C) The provisions of this subchapter shall not apply to the renting, letting, or subletting of property by an individual to himself or herself or to an entity wholly owned by him or her.

(D) The provisions of this subchapter shall not be deemed or construed to require the payment of a business license tax or business square footage tax to conduct, manage, or carry on any business, occupation, or activity, or require the payment of any business license tax or business square footage tax from any institution or organization, which is conducted, managed, or carried on wholly for the benefit of charitable, religious, or benevolent purposes.

(E) The provisions of this subchapter shall not apply to credit union corporations.

(F) Any grower or producer of any articles of ranch products who grows or produces said products in the city shall be entitled to a business tax certificate without tax unless the grower or producer sells said products from a produce stand on property located within the city. Any grower or producer qualified by the terms of this subchapter to claim a business tax certificate exemption provided herein shall first file with the Administrative Services Director, or his or her designee, an affidavit setting forth his or her name and address, the amount and variety of produce he or she

proposes to sell, the place where said produce was grown or produced, and that such produce was grown or produced by him or her.

(G) The provisions of this subchapter shall not apply to any commercial cannabis businesses as defined within § 120.02, as amended, that are licensed by the city as a commercial cannabis business and have a state cannabis license. (Prior Code, § 10215) (Ord. 18-07, passed 11-6-2018)

Business license tax and business square footage tax shall be paid, as applicable, by every person conducting, carrying on, or managing any business or profession within the city not otherwise exempted by § 34.035. This includes businesses located outside of the city but conducting business within the city and businesses that are owned, leased, occupied, or maintained within the city. Employees of a business owner that receive a W-2 statement are not subject to this subchapter.

(Prior Code, § 10216) (Ord. 18-07, passed 11-6-2018)

(A) A business square footage tax for the act of privilege of engaging in business activity within the city is hereby levied upon and shall be collected from every person that leases, owns, occupies, or otherwise maintains an office or place of business within the city. The business square footage tax shall be measured by the number of square feet of business floor space for each office or place of business leased, owned, occupied, or otherwise maintained within the city during their reporting period.

(B) Every person conducting, carrying on, or managing any business or profession, not otherwise specifically licensed by or exempted by other sections of this subchapter, shall pay an annual business square footage tax based on the applicable business floor space schedule(s) consistent with this section, whether retail, wholesale, or both. Business square footage taxes shall be based upon the total business floor space as recorded on the records of the business. The following tax amounts in Table 1 below are the amounts imposed by the city for each calendar year after adoption of this subchapter based upon the total applicable business floor space:

(Prior Code, § 10217) (Ord. 18-07, passed 11-6-2018)

A business license tax for the act or privilege of engaging in business activity within the city is hereby levied in the amount of $60 per calendar year starting January 1, and shall be collected from every person that conducts a business within the city but does not lease, own, occupy, or maintain an office or place of business within the city. (Prior Code, § 10218) (Ord. 18-07, passed 11-6-2018)

(A) For every person conducting, carrying on, or managing the business of a lodging or rooming house consisting of any rooms available for rent, the business square footage rate shall be determined by the business floor space as defined within this subchapter. ROOMING HOUSE shall be defined for purposes of this section as any house where lodging is provided for rent.

(B) If any person conducting, carrying on, or managing a lodging or rooming house shall use or permit to be used such lodging or rooming house for the purpose of lewdness, assignation, or prostitution, and shall be convicted for such offenses or any of them in any court of the state then and in either event the business tax certificate, as provided herein, for such lodging or rooming house shall be revoked and shall not hereafter be renewed for a period of one year from and after the date of the final judgment of such conviction.

(Prior Code, § 10219) (Ord. 18-07, passed 11-6-2018)

For every person conducting, carrying on, or managing the business of apartments, flats, or courts consisting of four or more individual living units available for rent or lease at one location, the business square footage rate shall be determined by Table 1 schedule designated in this subchapter as amended. For the purpose of this section, ONE LOCATION is defined to mean one or more lots that are contiguous. (Prior Code, § 10220) (Ord. 18-07, passed 11-6-2018)

When any person shall by use of signs, circulars, cards, Internet websites, or newspapers advertise, hold out, or represent that he or she is in business in the city, or when any person holds an active business tax certificate or permit issued by a governmental agency indicating that he or she is in business in the city, and such person fails to deny by a sworn statement given to the Administrative Services Director, or his or her designee, that he or she is not conducting a business in the city, after being requested to do so by the Administrative Services Director, or his or her designee, then these facts shall be considered prima facie evidence that he or she is conducting a business in the city. (Prior Code, § 10221) (Ord. 18-07, passed 11-6-2018)

All remedies and penalties prescribed by this subchapter or which are available under any other provision of law or equity, including, but not limited to, the State False Claims Act (Cal. Government Code §§ 12650 et seq.) and the State Unfair Practices Act (Cal. Business and Professions Code §§ 17070 et seq.), are cumulative. 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 subchapter.

(Prior Code, § 10225) (Ord. 18-07, passed 11-6-2018)

TRANSIENT OCCUPANCY TAX

This subchapter shall be known as the “Transient Occupancy Tax Ordinance of the City of Grover Beach” or “this subchapter.”

(Prior Code, § 10600) (Ord. 87, passed 7-17-1967)

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates, or requires, a different meaning.

HOTEL. Any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio, hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home, or house trailer at a fixed location or other similar structure or portion thereof.

OCCUPANCY. The use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging, or sleeping purposes.

OPERATOR. The person who is proprietor of the hotel, whether in the capacity of owner, lessee, sub-lessee, mortgagee in possession, licensee, or any other capacity. Where the OPERATOR performs his or her functions through a managing agent of any type or character other than an employ, the managing agent shall also be deemed an OPERATOR for the purposes of this subchapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this subchapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

PERSON. Any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

RENT. The consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, and property and services of any kind or nature, without any deduction therefrom whatsoever.

TAX ADMINISTRATOR. The City Clerk.

TRANSIENT. Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be TRANSIENT until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a TRANSIENT , uninterrupted periods of time extending both prior and subsequent to the effective date of this subchapter may be considered. (Prior Code, § 10601) (Ord. 87, passed 7-17-1967)

For the privilege of occupancy in any hotel/motel, each transient is subject to and shall pay a tax in the amount of 12% of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel/motel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transients ceasing to occupy space in the hotel/motel. If

for any reason the tax due is not paid to the operator of the hotel/motel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator.

(Prior Code, § 10602) (Ord. 87, passed 7-17-1967; Ord. 78-7, passed 6-29-1978; Ord. 91-6, passed 8-5-1991; Ord. 1806, passed 11-6-2018)

• (A) No tax shall be imposed upon:

• (1) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax herein provided;

• (2) Any federal or state officer or employee when on official business; and/or

• (3) Any officer or employee of a foreign government who is exempt by reason of express provisions of federal law or international treaty.

(B) No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the Tax Administrator.

(Prior Code, § 10603) (Ord. 87, passed 7-17-1967)

(A) Each operator shall collect the tax imposed by this subchapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of rent charged, and each transient shall receive a receipt for payment from the operator.

(B) No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that if added, any part will be refunded except in the manner hereinafter provided.

(Prior Code, § 10604) (Ord. 87, passed 7-17-1967)

Within 30 days after the effective date of this subchapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register said hotel with the Tax Administrator and obtain from him or her a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following:

• (A) The name of the operator;

• (B) The address of the hotel;

• (C) The date upon which the certificate was issued; and

(D) The following statement: “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct an unlawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit.”

(Prior Code, § 10605) (Ord. 87, passed 7-17-1967)

Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Tax Administrator, make a return to the Tax Administrator, on forms provided by him or her, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if he or she deems it necessary in order to ensure collection of the tax and he or she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this subchapter shall be held in trust for the account of the city until payment thereof is made to the Tax Administrator. The information furnished or secured pursuant to this section shall be confidential. Any unwarranted disclosure or use of such information by any officer or employee of the city shall constitute a misdemeanor and such officer or employee shall be subject to the penalty provisions of this subchapter. (Prior Code, § 10606) (Ord. 87, passed 7-17-1967)

(A) Original delinquency. Any operator who fails to remit any tax imposed by this subchapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax.

(B) Continued delinquency. An operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a Administrative Services Director Administrative Services Director subsequent delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10% previously first imposed (i.e., compounding interest). Penalties shall continue to accrue under this manner for all subsequent months until complete remittance and payment of penalties is received.

(C) Fraud. If the Tax Administrator determines that the non-payment of any remittance due under this subchapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in divisions (A) and (B) above.

(D) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this subchapter shall pay interest at the rate of 0.5% per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(E) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. (Prior Code, § 10607) (Ord. 87, passed 7-17-1967)

If any operator shall fail or refuse to collect said tax and to make, within the time provided in this subchapter, any report and remittance of said tax or any portion thereof required by this subchapter, the Tax Administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Tax Administrator shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this subchapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by this subchapter. In case such determination is made, the Tax Administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his or her last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest, and penalties, if any, determined by the Tax

Administrator shall become final and conclusive and immediately due and payable. If such application is made, the Tax Administrator shall give not less than five days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest, and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest, and penalties should not be so fixed. After such hearing, the Tax Administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest, and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in § 34.064.

(Prior Code, § 10608) (Ord. 87, passed 7-17-1967)

Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of such tax, interest, and penalties, if any, may appeal to the Council by filing a notice of appeal with the City Clerk within 15 days of the serving or mailing of the determination of tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his or her last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(Prior Code, § 10609) (Ord. 87, passed 7-17-1967)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this subchapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the city, which records the Tax Administrator shall have the right to inspect at all reasonable times. (Prior Code, § 10610) (Ord. 87, passed 7-17-1967)

(A) Whenever the amount of any tax, interest, or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this subchapter it may be refunded as provided in divisions (B) and (C) below provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Tax Administrator within three years of the date of payment. The claim shall be on forms furnished by the Tax Administrator.

(B) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax Administrator that the person from whom the tax has been collected was not a transient; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

(C) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in division (A) above, but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) No refund shall be paid under the provisions of this section unless the claimant establishes the right thereto by written records showing entitlement thereto.

(Prior Code, § 10611) (Ord. 87, passed 7-17-1967)

(A) Any tax required to be paid by any transient under the provisions of this subchapter shall be deemed a debt owed by the transient to the city.

(B) Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city.

(C) Any person owing money to the city under the provisions of this subchapter shall be liable to an action brought in the name of the city for the recovery of such amount.

(Prior Code, § 10612) (Ord. 87, passed 7-17-1967)

REAL PROPERTY TRANSFER TAX

This subchapter shall be known as the “Real Property Transfer Tax Ordinance of the City of Grover Beach” or “this subchapter.” It is adopted pursuant to the authority contained in Cal. Revenue and Taxation Code Part 6.7 (commencing with § 11901) of Division 2.

(Prior Code, § 10701) (Ord. 89, passed 12-4-1967)

There is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the city shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or her or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds $100, a tax at the rate of $0.275 for each $500 or fractional part thereof. (Prior Code, § 10702) (Ord. 89, passed 12-4-1967)

Any tax imposed pursuant to § 34.081 hereof shall be paid by any person who makes, signs, or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed, or issued. (Prior Code, § 10703) (Ord. 89, passed 12-4-1967)

Any tax imposed pursuant to this subchapter shall not apply to any instrument in writing given to secure a debt. (Prior Code, § 10704) (Ord. 89, passed 12-4-1967)

The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to this subchapter with respect to any deed,

instrument, or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor.

(Prior Code, § 10705) (Ord. 89, passed 12-4-1967)

(A) (1) Any tax imposed pursuant to this subchapter shall not apply to the making, delivering, or filing of conveyances to make effective any plan of reorganization or adjustment:

• (a) Confirmed under the Federal Bankruptcy Act, as amended;

• (b) Approve in an equity receivership proceeding in a court involving a railroad corporation, as defined in 11 U.S.C. § 205(m), as amended;

• (c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in 11 U.S.C. § 506(3), as amended; or

• (d) Whereby a mere change in identity, form, or place of organization is effected.

(2) Divisions (A)(1)(a) to (A)(1)(d) above shall only apply if the making, delivery, or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval, or change. (Prior Code, § 10706)

(B) Any tax imposed pursuant to this subchapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in Internal Revenue Code of 1954 § 1083(a), but only if:

(1) The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of 15 U.S.C. § 79(k) relating to the Public Utility Holding Company Act of 1935;

• (2) Such order specifies the property which is ordered to be conveyed; and/or

• (3) Such conveyance is made in obedience to such order.

(Prior Code, § 10707)

(Ord. 89, passed 12-4-1967)

(A) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this subchapter by reason of any transfer of an interest in a partnership or otherwise, if:

• (1) Such partnership (or another partnership) is considered a continuing partnership within the meaning of I.R.C. § 708; and

• (2) Such continuing partnership continued to hold the realty concerned.

(B) If there is a termination of any partnership within the meaning of I.R.C. § 708, for purposes of this subchapter, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.

(C) Not more than one tax shall be imposed pursuant to this subchapter by reason of a termination described in division (B) above, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(Prior Code, § 10708) (Ord. 89, passed 12-4-1967)

The County Recorder shall administer this subchapter in conformity with the provisions of Cal. Revenue and Taxation Code Part 6.7 of Division 2 and the provisions of any county ordinance adopted pursuant thereto. (Prior Code, § 10709) (Ord. 89, passed 12-4-1967)

Claims for refund of taxes imposed pursuant to this subchapter shall be governed by the provisions of Cal. Revenue and Taxation Code Chapter 5 (commencing with § 5096) of Part 9 of Division 1. (Prior Code, § 10710) (Ord. 89, passed 12-4-1967)

UTILITY USERS TAX

This subchapter shall impose a tax upon the use of utility services in the city. The purpose of this tax is to provide additional general revenue for the city.

(Prior Code, § 101201) (Ord. 91-7, passed 8-5-1991)

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates, or requires, a different meaning.

CITY. The City of Grover Beach, California.

GAS. Natural or manufactured gas, or any alternate hydrocarbon fuel which may be substituted therefor. MONTH. A calendar month.

NON-UTILITY SUPPLIER.

(1) A service supplier, other than an electrical corporation serving within the city, which generates electrical energy in capacities of at least 50 kilowatts for its own use or for sale to others; or

(2) A gas supplier, other than a gas corporation, that sells or supplies gas to users within the city.

PERSON. Any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust, society, or individuals.

SERVICE SUPPLIER. Any entity required to collect or self-impose and remit a tax as imposed by this subchapter. SERVICE USER. A person required to pay a tax imposed by this subchapter.

TAX ADMINISTRATOR. The Finance Director of the city.

TELEPHONE CORPORATION, ELECTRICAL CORPORATION, GAS CORPORATION, WATER

CORPORATION, and CABLE TELEVISION CORPORATION. The terms shall have the same meanings as defined

in §§ 234, 218, 222, 241, and 215-5, respectively, of the California Public Utilities Code, except ELECTRICAL CORPORATION , GAS CORPORATION , and WATER CORPORATION shall also be construed to include any municipality, public agency, or person engaged in the selling or supplying of electrical power or gas or water to a service user.

(Prior Code, § 101202) (Ord. 91-7, passed 8-5-1991)

(A) Nothing in this subchapter shall be construed as imposing a tax upon any person when imposition of such tax upon that person would be in violation of the Constitution of the United States or that of the state.

(B) The City Council may, by order or resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to payment of a tax imposed by the subchapter and provided that such classes of persons or service shall be exempt, in whole or in part, from such tax. The Tax Administrator shall prepare a list of the persons exempt from the provisions of this subchapter by virtue of this section and furnish a copy thereof to each service supplier.

(Prior Code, § 101203) (Ord. 91-7, passed 8-5-1991)

(A) There is hereby imposed a tax on the amounts paid for any intrastate telephone services by every person in the city using such services. The tax imposed by this section shall be at the rate of 1% of the charges made for such services and shall be paid by the person paying for such services.

(B) As used in this section, the term CHARGES shall not include charges for services paid for by inserting coins in coin-operated telephones, except that where such coin-operated service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due; nor shall the term CHARGES include charges for any type of service or equipment furnished by a service supplied subject to public utility regulations during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to public utility regulations; nor shall the words TELEPHONE COMMUNICATION SERVICES include land mobile service or maritime mobile services as defined in 47 C.F.R. § 2.1, as said section existed on January 1, 1970. The term TELEPHONE COMMUNICATION SERVICES refers to that service which provides access to a telephone system and the privilege of telephone quality communication with substantially all persons having telephone stations which are part of such telephone system. The telephone users tax is intended to, and does, apply to all charges billed to a telephone account having a situs in the city, irrespective of whether a particular communication service originates and/or terminates within the city.

(C) The tax imposed by this section shall be collected from the service user by the person providing the intrastate telephone communication services, or the person receiving payment for such services. The amount of the tax collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month; or, at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the tax bill in the previous month, shall be remitted to the Tax Administrator on or before the last day of each month.

(D) Notwithstanding the provisions of division (A) above, the tax imposed under this section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under Cal. Revenue and Taxation Code Division 2, Part 20, or the tax imposed under I.R.C. § 4251.

(Prior Code, § 101204) (Ord. 91-7, passed 8-5-1991)

(A) There is hereby imposed a tax upon every person other than an electric or gas corporation using electrical energy in the city. The tax imposed by this section shall be at a rate of 1% of the charges made for such energy by an electrical corporation providing service in the city and shall be billed to and paid by the person using the energy. The tax applicable to electrical energy provided by a non-utility supplier shall be determined by applying the tax rate to the equivalent charge the service user would have incurred if the energy used had been provided by the electrical corporation franchised by the city. Rate schedules for this purpose shall be available from the city. Non-utility suppliers shall install, maintain, and use an appropriate utility-type metering system which will enable compliance with this section. CHARGES , as used in this section, shall include charges made for:

(1) Metered energy; and

(2) Minimum charges for services, including customer charges, service charges, demand charges, standby charges and all other annual and monthly charges, fuel or other cost adjustments, authorized by the State Public Utilities Commission or the Federal Energy Regulatory Commission.

(B) As used in this section, the term USING ELECTRICAL ENERGY shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him or her for use in an automobile or other machinery device apart from the premises upon which the energy was received, provided, however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries; nor shall the term include electricity used and consumed by an electric utility supplier in the conduct of its business; nor shall the term include the mere receiving of such energy by an electric corporation or governmental agency at a point within the city for resale; nor shall the term include the use of such energy in the production or distribution of water by a water utility or a governmental agency.

(C) The tax imposed in this section shall be collected from the service user by the service supplier or non-utility supplier. The tax imposed in this section on use supplied by self-generation or from a non-utility supplier not subject to the jurisdiction of this subchapter shall be collected and remitted to the Tax Administrator in the manner set forth in § 34.106. The amount of tax collected by a service supplier or a non-utility supplier in one month shall be remitted by U.S. mail to the Tax Administrator, postmarked on or before the last day of the following month; or at the option of the person required to collect and remit the tax, an estimate amount of tax measured by the tax billed in the previous month, shall be remitted by U.S. mail, to the Tax Administrator, postmarked on or before the last day of each month. (Prior Code, § 101205) (Ord. 91-7, passed 8-5-1991)

(A) There is hereby imposed a tax upon every person in the city other than a gas corporation or electrical corporation using, in the city, gas which is transported through mains or pipes or by mobile transport. The tax imposed by this section shall be at the rate of 1% of the charges made for the gas and shall be billed to and paid by the person using the gas. The tax applicable to gas or gas transportation provided by non-utility suppliers shall be determined by applying the tax rate to the equivalent charges the service user would have incurred if the gas or gas transportation had been provided by the gas corporation franchised by the city. CHARGES as used in this section shall include:

• (1) That billed for gas which is delivered through mains or pipes;

• (2) Gas transportation charges; and

(3) Demand charges, service charges, customer charges, minimum charges, annual and monthly charges, and any other charge authorized by the State Public Utility Commission or the Federal Energy Regulatory Commission.

• (B) The tax otherwise imposed by this section is not applicable to:

• (1) Charges made for gas which is to be resold and delivered through mains and pipes;

• (2) Charges made for gas used and consumed by a public utility or governmental agency in the conduct of its business;

(3) Charges made by a gas public utility or gas used and consumed in the course of its public utility business; and

(4) Charges made for gas used in the propulsion of a motor vehicle, as authorized in Cal. Vehicle Code.

(C) The tax imposed in this section shall be collected from the service user by the person selling or transporting the gas. A person selling only transportation services to a user for delivery of gas through mains or pipes shall collect the tax from the service user based on the transportation charges. The person selling or transporting the gas shall, on or before the twentieth of each calendar month, commencing on the twentieth day of the calendar month after the effective date of this subchapter, make a return to the Tax Administrator stating the amount of taxes billed during the preceding calendar month. At the time such returns are filed, the person selling or transporting the gas shall remit tax

payments to the Tax Administrator in accordance with schedules established or approved by the Tax Administrator. The tax imposed in this section on use supplied by self-production or a non-utility supplier not subject to the jurisdiction of this subchapter shall be collected and remitted to the Tax Administrator in the manner set forth in § 34.106.

(Prior Code, § 101206) (Ord. 91-7, passed 8-5-1991)

(A) Notwithstanding any other provision of this subchapter, a service user receiving gas or electricity directly from a non-utility supplier not under the jurisdiction of this subchapter, or otherwise not having the full tax due on the use of gas or electricity in the city directly billed and collected by the service supplier, shall report said fact to the Tax Administrator within 30 days of said use and shall directly remit to the city the amount of tax due.

(B) The Tax Administrator may require said service user to provide, subject to audit, filed tax returns, or other satisfactory evidence documenting the quantity of gas or electricity used and the price thereof. (Prior Code, § 101207) (Ord. 91-7, passed 8-5-1991)

(A) There is hereby imposed a tax upon every person in the city using water which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 1% of the charges made for such water and shall be paid by the person paying for such water.

(B) There shall be excluded from the base on which the tax imposed in this section is computed charges made for water which is to be resold and delivered through mains or pipes; and charges made by a municipal water department, public utility, or a city or municipal water district for water used and consumed by such department, utility, or district.

(C) (1) The tax imposed in this section shall be collected from the service user by the person supplying the water. (2) The amount collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month.

(Prior Code, § 101208) (Ord. 91-7, passed 8-5-1991)

(A) There is hereby imposed a tax upon every person in the city using cable television service. The tax imposed by this section shall be at the rate of 1% of the charges made for such service and shall be paid by the person paying for such service.

(B) The tax imposed in this section shall be collected from the service user by the person furnishing the cable television service. The amount collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month. The tax imposed in this section shall apply to all services, including special programs, tiers, or other similar rate structures or billing arrangements furnished by the cable television corporation (provider) to the service user.

(Prior Code, § 101209) (Ord. 91-7, passed 8-5-1991)

(A) Taxes collected from a service user which are not remitted to the Tax Administrator on or before the due dates provided in this subchapter are delinquent.

(B) Should the due date occur on a weekend or legal holiday, the return may be postmarked on the first regular working day following a Saturday, Sunday, or legal holiday.

(Prior Code, § 101210) (Ord. 91-7, passed 8-5-1991)

Any tax required to be paid by a service user under the provisions of this subchapter shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user which has willfully been withheld from the Tax Administrator shall be deemed a debt owed to the city by the person required to collect and remit. Any person owing money to the city under the provisions of this subchapter shall be liable to an action brought in the name of the city for the recovery of such amount.

(Prior Code, § 101211) (Ord. 91-7, passed 8-5-1991)

The duty to collect and remit the taxes imposed by this subchapter shall be performed as follows. (A) (1) Notwithstanding the provisions of § 34.106, the tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practices of the service supplier.

(2) Where the amount paid by a service user to a service supplier is less than the full amount of the service charge and tax which has accrued for the billing period, such amount and any subsequent payments by a service user shall be applied to the utility charge first until such charge has been fully satisfied. Any remaining balance shall be applied to taxes due. In those cases where a service user has notified the service supplier of his or her refusal to pay the tax imposed on said energy charges § 34.112(C) will apply.

(B) (1) The duty to collect the tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this subchapter.

(2) Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing.

(Prior Code, § 101212) (Ord. 91-7, passed 8-5-1991)

(A) The Tax Administrator shall have the power and duty, and is hereby directed to enforce each and all of the provisions of this subchapter.

(B) (1) The Tax Administrator shall have the power to adopt rules and regulations not inconsistent with provisions of this subchapter for the purpose of carrying out and enforcing the payment, collection, and remittance of the taxes herein imposed.

(2) A copy of such rules and regulations shall be on file in the Tax Administrator’s office.

(C) The Tax Administrator may make administrative agreements to vary the strict requirement of this subchapter so that collection of any tax imposed here may be made in conformance with the billing procedures of particular service suppliers so long as said agreements result in collection of the tax in conformance with the general purpose and scope of this subchapter. A copy of each such agreement shall be on file in the Tax Administrator’s office.

(D) The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from the tax imposed by this subchapter. The Tax Administrator shall provide the service supplier with the name of any person who the Tax Administrator determines is exempt from the tax imposed hereby, together with the address and account number to which service is supplied to any such exempt person. The Tax Administrator shall notify the service supplier of termination of any person’s right to exemption hereunder, or the change of any address to which service is supplied to any exempt person.

(E) The Tax Administrator shall provide notice to all service suppliers, at least 90 days prior to any annexation or other change in the city’s boundaries. Said notice shall set forth the revised boundaries by street and address, along with a copy of the final annexation order from LAFCO.

(Prior Code, § 101213) (Ord. 91-7, passed 8-5-1991)

(A) Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by him or her from the amounts remitted to a person required to collect the tax, or that a service user has refused to pay the amount of tax, such person may be relieved of the obligation to collect taxes due under this subchapter from certain named service users for specified billing periods as set forth below.

(B) The service supplier shall provide the city with amounts refused and/or unpaid along with the names and addresses of the service users neglecting to pay the tax imposed under provisions of this subchapter. Whenever the service user has failed to pay the amount of tax for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due.

(C) (1) The Tax Administrator shall notify the service user that the Tax Administrator assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes.

(2) The notice shall be served on the service user by handing it to him or her personally or by deposit of the notice in the U.S. mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user’s address change, to the last known address.

(3) If a service user fails to remit the tax to the Tax Administrator within 15 days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of 25% of the amount of the tax set forth in the notice shall be imposed, but not less than $5.

(4) The penalty shall become part of the tax herein required to be paid. (Prior Code, § 101214) (Ord. 91-7, passed 8-5-1991)

It shall be the duty of every person required to collect and remit to the city any tax imposed by this subchapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at all reasonable times.

(Prior Code, § 101215) (Ord. 91-7, passed 8-5-1991)

(A) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this subchapter, it may be refunded as provided in this section. (B) (1) Notwithstanding the provisions of division (A) above, a service supplier may claim a refund; or take as credit against taxes remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax erroneously or illegally collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit.

(2) A service supplier that has collected any amount of tax in excess of the amount of tax imposed by this subchapter, and actually due from a service user, may refund such amount to the service user and claim credit for such

overpayment against the amount of tax which is due upon any other monthly returns, provided such credit is claimed in a return dated no later than three years from the date of overpayment.

(C) (1) Notwithstanding other provisions of this section, whenever a service supplier, pursuant to an order of the State Public Utilities Commission or a court of competent jurisdiction, makes a refund to service users of charges for past utility services, the taxes paid pursuant to this subchapter on the amount of such refunded charges shall also be refunded to service users, and the service supplier shall be entitled to claim a credit for such refunded taxes against the amount of tax which is due upon the next monthly returns.

(2) In the event this subchapter is repealed, the amounts of any refundable taxes will be borne by the city.

(D) A service supplier may refund the taxes collected to the service user in accordance with this section or by the service supplier’s customary practice.

(Prior Code, § 101216) (Ord. 91-7, passed 8-5-1991)

The service supplier shall, upon notification, terminate or suspend any utility users tax commencing with the first full billing period which occurs after the effective date of such action by the City Council. (Prior Code, § 101218) (Ord. 91-7, passed 8-5-1991)

TRANSACTIONS AND USE TAX

(A) This subchapter shall be known as the “Transactions and Use Tax Ordinance of the City of Grover Beach” or “this subchapter.”

• (B) The “City of Grover Beach” hereinafter shall be called “city.”

• (C) This subchapter shall be applicable in the incorporated territory of the city.

(Prior Code, § 101500) (Ord. 06-12, passed 9-18-2006)

This subchapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

(A) To impose a retail transactions and use tax in accordance with the provisions of Cal. Revenue and Taxation Code Part 1.6 (commencing with § 7251) of Division 2 and Cal. Revenue and Taxation Code § 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this tax subchapter which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose;

(B) To adopt a retail transactions and use tax subchapter that incorporates provisions identical to those of the Sales and Use Tax Law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Cal. Revenue and Taxation Code Part 1.6 of Division 2;

(C) To adopt a retail transactions and use tax subchapter that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the State Sales and Use Taxes; and

(D) To adopt a retail transactions and use tax subchapter that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Cal. Revenue and Taxation Code Part 1.6 of Division 2,

minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this subchapter. (Prior Code, § 101501) (Ord. 06-12, passed 9-18-2006)

OPERATIVE DATE means the first day of the first calendar quarter commencing more than 110 days after the adoption of this subchapter, the date of such adoption being November 7, 2006. (Prior Code, § 101502) (Ord. 06-12, passed 9-18-2006)

Prior to the operative date, the city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax subchapter; provided, that if the city shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

(Prior Code, § 101503) (Ord. 06-12, passed 9-18-2006)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of 1.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the city on and after the operative date of this subchapter. (Prior Code, § 101504) (Ord. 06-12, passed 9-18-2006)

For the purposes of this subchapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated for the purpose of a transactions tax proposed by this subchapter shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. (Prior Code, § 101505) (Ord. 06-12, passed 9-18-2006)

An excise tax is hereby imposed on the storage, use, or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of this subchapter for storage, use, or other consumption in said territory at the rate of 1.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. (Prior Code, § 101506) (Ord. 06-12, passed 9-18-2006)

Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Cal. Revenue and Taxation Code Part 1.6 of Division 2, all of the provisions of Cal. Revenue and Taxation Code Part 1 (commencing with § 6001) of Division 2 are hereby adopted and made a part of this subchapter as though fully set forth herein.

(Prior Code, § 101507) (Ord. 06-12, passed 9-18-2006)

In adopting the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2:

(A) Wherever the state is named or referred to as the taxing agency, the name of the city shall be substituted therefor. However, the substitution shall not be made when:

(1) The word “state” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California;

(2) The result of that substitution would require action to be taken by or against this city or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this subchapter;

(3) In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state, where the result of the substitution would be to:

(a) Provide an exemption from this tax with respect to certain sales, storage, use, or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use, or other consumption remain subject to tax by the state under the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2; or

(b) Impose this tax with respect to certain sales, storage, use, or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

(4) In Cal. Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828.

(B) The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Cal. Revenue and Taxation Code § 6203 and in the definition of that phrase in § 6203. (Prior Code, § 101508) (Ord. 06-12, passed 9-18-2006)

If a seller’s permit has been issued to a retailer under Cal. Revenue and Taxation Code § 6067, an additional transactor’s permit shall not be required by this subchapter.

(Prior Code, § 101509) (Ord. 06-12, passed 9-18-2006)

(A) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the state or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

(B) There are exempted from the computation of the amount of transactions tax the gross receipts from:

(1) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of the state, the United States, or any foreign government;

(2) Sales of property to be used outside the city which is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer, or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this division (B)(2), delivery to a point outside the city shall be satisfied:

(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Cal. Vehicle Code, Chapter 1 (commencing with § 4000) of Division 3, aircraft licensed in compliance with Cal. Public Utilities Code § 21411, and undocumented vessels registered under Cal. Vehicle Code, Division 3.5 (commencing with § 9840) by registration to an out-of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and

(b) With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

(3) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this subchapter;

(4) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this subchapter; and

(5) For the purposes of divisions (B)(3) and (B)(4) above the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

(C) There are exempted from the use tax imposed by this subchapter, the storage, use, or other consumption in the city of tangible personal property:

(1) The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance;

(2) Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of the state, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Cal. Revenue and Taxation Code §§ 6366 and 6366.1;

(3) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this subchapter;

(4) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this subchapter;

(5) For the purposes of divisions (C)(3) and (C)(4) above, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised;

(6) Except as provided in division (C)(7) below, a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer; and

(7) A retailer engaged in business in the city shall also include any retailer of any of the following: vehicles subject to registration pursuant to Cal. Vehicle Code, Chapter 1 (commencing with § 4000) of Division 3, aircraft

licensed in compliance with Cal. Public Utilities Code § 21411, or undocumented vessels registered under Cal. Vehicle Code, Division 3.5 (commencing with § 9840). That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city.

(D) Any person subject to use tax under this subchapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Cal. Revenue and Taxation Code, Part 1.6 of Division 2 with respect to the sale to the person of the property the storage, use, or other consumption of which is subject to the use tax.

(Prior Code, § 101510) (Ord. 06-12, passed 9-18-2006)

All amendments subsequent to the effective date of this subchapter to Cal. Revenue and Taxation Code, Part 1 of Division 2 relating to sales and use taxes and which are not inconsistent with Cal. Revenue and Taxation Code Part 1.6 and Part 1.7 of Division 2, and all amendments to Cal. Revenue and Taxation Code, Part 1.6 and Part 1.7 of Division 2, shall automatically become a part of this subchapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this subchapter.

(Prior Code, § 101511) (Ord. 06-12, passed 9-18-2006)

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against the state or the city, or against any officer of the state or the city, to prevent or enjoin the collection under this subchapter, or Cal. Revenue and Taxation Code, Part 1.6 of Division 2, of any tax or any amount of tax required to be collected.

(Prior Code, § 101512) (Ord. 06-12, passed 9-18-2006)

The city shall prepare and make available to the public an annual report, which presents in summary form expenditures from the prior fiscal year from revenue generated from the transactions and use tax and budgeted expenditures for the upcoming fiscal year.

(Prior Code, § 101513) (Ord. 06-12, passed 9-18-2006)

The City Council shall appoint a citizen committee to review the annual report, and who will provide a report on expenditures of the revenues generated from the transaction and use tax to the City Council. (Prior Code, § 101514) (Ord. 06-12, passed 9-18-2006)

COMMERCIAL CANNABIS BUSINESS TAX

This subchapter shall be entitled the “Commercial Cannabis Business Tax” or “this subchapter,” and is enacted solely to raise revenue for the general governmental purposes for the city and not for purposes of regulation or of raising revenues for regulatory purposes. All of the proceeds from the tax imposed by this subchapter shall be placed in the city’s General Fund and used for the purposes consistent with the General Fund expenditures of the city.

(Prior Code, § 101600) (Ord. 17-04, passed 11-8-2016)

There is established and imposed, a commercial cannabis business tax at the rate set forth in this subchapter. (Prior Code, § 101601) (Ord. 17-04, passed 11-8-2016)

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates, or requires, a different meaning.

BUSINESS. All activities engaged in or caused to be engaged in within the city, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.

CANNABIS. All parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.

CANNABIS BUSINESS or MEDICAL MARIJUANA BUSINESS or NON-MEDICAL MARIJUANA

BUSINESS. Any commercial business activity not limited to testing, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, wholesale, and/or retail sales of cannabis and any ancillary products in the city, whether or not carried on for gain or profit which is permitted by both state and local law.

CANNABIS BUSINESS TAX , BUSINESS TAX , or CANNABIS TAX. The tax due for engaging in commercial cannabis business in the city.

CANOPY. All areas occupied by any portion of a cannabis plant, inclusive of all vertical planes, whether contiguous on any one site. The PLANT CANOPY does not need to be continuous on any premise in determining the total square footage which will be subject to tax.

CULTIVATION FACILITY or GROW SITE. The square footage of any place or location where cannabis or any of its derivatives is cultivated, grown, harvested, packaged, processed, or stored.

DISTRIBUTOR or DISTRIBUTION or DISTRIBUTION FACILITY. A person or facility licensed by the state to engage in the business of purchasing medical cannabis from a licensed cultivator, or medical cannabis products from a licensed manufacturer, for sale to a licensed dispensary.

EMPLOYEE. Each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner’s family, partner, associate, agent, manager, or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter, or any other form of compensation. ENGAGED IN BUSINESS. The commencing, conducting, operating, managing, or carrying on of a cannabis business and the exercise of corporate or franchise powers, whether done as

owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the city or coming into the city from an outside location to engage in such activities. A person shall be deemed ENGAGED IN BUSINESS within the city if:

(1) Such person or person’s employee maintains a fixed place of business within the city for the benefit or partial benefit of such person;

(2) Such person or person’s employee owns or leases real property within the city for business purposes;

(3) Such person or person’s employee regularly maintains a stock of tangible personal property in the city for sale in the ordinary course of business;

(4) Such person or person’s employee regularly conducts solicitation of business within the city:

(5) Such person or person’s employee performs work or renders services in the city on a regular and continuous basis involving more than five working days per year; and/or

(6) Such person or person’s employee utilizes the streets within the city in connection with the operation of motor vehicles for business purposes. The foregoing specified activities shall not be a limitation on the meaning of ENGAGED IN BUSINESS .

EVIDENCE OF DOING BUSINESS. Whenever any person shall, by use of signs, circulars, cards, or any other advertising media, including the use of Internet or telephone solicitation, or represents to a government agency or to the public that such person is engaged in a cannabis business in the city, then these facts may be used as evidence that such person is engaged in business in the city.

GROSS RECEIPTS.

(1) Except as otherwise specifically provided, means the total amount actually received or receivable from all sales; the total amount or 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 a part of or in connection with the sale of materials, goods, wares, or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. 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 materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:

• (a) Cash discounts allowed and taken on sales;

(b) Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as gross receipts;

(c) Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; and

(d) Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts.

(2) Receipts from investments where the holder of the investment receives only interest and/or dividends, royalties, annuities, and gains from the sale or exchange of stock or securities solely for a person’s own account, not derived in the ordinary course of a business; receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business.

(3) Cash value of sales, trades, or transactions between departments or units of the same business.

(4) Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered.

• (5) Transactions between a partnership and its partners.

• (a) Receipts from services or sales in transactions between affiliated corporations. An AFFILIATED CORPORATION is a corporation;

• (b) The voting and non-voting stock of which is owned at least 80% by such other corporation with which such transaction is had;

(c) Which owns at least 80% of the voting and non-voting stock of such other corporation; or

(d) At least 80% of the voting and non-voting stock of which is owned by a common parent corporation which also has such ownership of the corporation with which such transaction is had.

(6) Transactions between a limited liability company and its member(s), provided the limited liability company has elected to file as a Subchapter K entity under the Internal Revenue Code and that such transaction(s) shall be treated the same as between a partnership and its partner(s) as specified in division (8) below.

(7) Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of $1.

(8) Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the Finance Department with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.

MANUFACTURER. A person that conducts the production, preparation, propagation, or compounding of manufactured medical cannabis, or medical cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages medical cannabis or medical cannabis products or labels or relabels its container, that holds a valid state license and that holds a valid local license or permit.

tion, or compounding of manufactured medical cannabis, or medical cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages medical cannabis or medical cannabis products or labels or relabels its container, that holds a valid state license and that holds a valid local license or permit.

PERSON. Without limitation, any natural individual, organization, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non-profit), cooperative, receiver, trustee, guardian, or other representative appointed by order of any court.

SALE. Any sale, exchange, or barter.

SQUARE FOOT or SQUARE FOOTAGE. The maximum canopy area allowed under permit classification by the local agency and/or licensed by the state and shall be the basis for the tax rate calculations for cultivation. TAX ADMINISTRATOR or ADMINISTRATOR. The Finance Director, or such other designated by the City Manager to administer this subchapter.

TESTING LABORATORY. A facility, entity, or site in the state and within city limits that offers or performs tests of medical cannabis or medical cannabis products and is an accredited body by the state and is independent from all other persons involved in the medical cannabis industry.

TRANSPORT. The transfer of medical cannabis or medical cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purpose of conducting commercial cannabis activity authorized by the state.

TRANSPORTER. A person issued a state license and local license to transport medical or non-medical cannabis or medical or non-medical cannabis products where permitted by both state and local law in an amount above the threshold determined by the state permitting agency between facilities that have been issued a state license. (Prior Code, § 101602) (Ord. 17-04, passed 11-8-2016)

Nothing contained in this subchapter shall be deemed to repeal, amend, be in lieu of, replace, or in any way affect any requirements for any license, land use entitlement, or permit required by, under, or by virtue of any provision of any other title or chapter of this code or any other ordinance or resolution of the city, nor be deemed to repeal, amend, be in lieu of, replace, or in any way affect any tax, fee, or other charge imposed, assessed, or required by, under, or by virtue of any other title or chapter of this code or any other ordinance or resolution of the city. Any references made or contained in any other title or chapter of this code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees, or charges, or schedule of license fees provided for in other titles or chapters of this code.

(Prior Code, § 101603) (Ord. 17-04, passed 11-8-2016)

(A) The payment of a cannabis tax required by this subchapter, and its acceptance by the city, shall not entitle any person to carry on any cannabis business unless the person has complied with all of the requirements of this code and all other applicable laws, nor to carry on any cannabis business in any building or on any premises in the event that such building or premises are situated in a zone or locality in which the conduct of such cannabis business is in violation of any law.

(B) No tax paid under the provisions of this subchapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any ordinance of the city. (Prior Code, § 101604) (Ord. 17-04, passed 11-8-2016)

(A) Payment, location. The tax imposed under this subchapter shall be paid to the Administrator in the City Finance Department on or before the prescribed date during regular city business hours. (Prior Code, § 101605)

(B) Time limits. The cannabis tax imposed by this subchapter shall be due and payable as follows.

(1) (a) Each person owing a commercial cannabis cultivation tax under this subchapter shall, on or before the last day of the month following the close of each calendar quarter, prepare a tax statement and remit to the Administrator the tax due on the total square footage of canopy space subject to the tax. The square footage tax due shall be paid based on the type of cultivation permit issued by the state and/or the city and the maximum square footage so permitted or licensed.

(b) The tax will not be prorated or adjusted for reduction in the square footage not utilized by the business. Each business shall pay on or before the last day of the month following the close of each calendar quarter in four equal installments of the annual tax due.

(c) The city may at its discretion determine other methodologies in determining the payment of such tax in order to promulgate collection of said tax in order to reduce the burden of collection which may also include the form of payment in which the city may except for such tax.

(2) Each person conducting any other commercial cannabis business under this subchapter shall, on or before the last day of the month following the close of each calendar quarter, prepare a tax statement to the Administrator of the total gross receipts and the amount of tax owed for the preceding calendar quarter. At the time the tax statement is filed, the full amount of the tax owed for the preceding calendar quarter shall be remitted to the Administrator.

(3) All tax statements shall be completed on forms authorized by the Administrator.

(4) Tax statements and payments for all outstanding taxes owed the city are immediately due to the Administrator upon cessation of business for any reason.

(Prior Code, § 101607)

(C) Payments and communications made by mail; proof of timely submittal.

(1) Whenever any payment, statement, report, request, or other communication received by the Administrator is received after the time prescribed by this subchapter for the receipt thereof, but there is an envelope bearing a postmark showing that it was mailed on or prior to the date prescribed in this subchapter for the receipt thereof, or whenever the Administrator is furnished substantial proof that the payment, statement, report, request, or other communication was in fact deposited in the U.S. mail on or prior to the date prescribed for receipt thereof, the Administrator may regard such payment, statement, report, request, or other communication as having been timely received.

(2) If the due day falls on Saturday, Sunday, or a holiday, the due day shall be the next regular business day on which the city is open to the public.

(Prior Code, § 101608)

(D) When taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this subchapter, the taxes required to be paid pursuant to this subchapter shall be deemed delinquent if not paid on or before the due date specified in division (B) above.

(Prior Code, § 101609)

(E) Penalty for delinquency.

(1) Any person who fails or refuses to pay any cannabis tax required to be paid pursuant to this subchapter on or before the due date shall pay penalties and interest as follows:

(a) A penalty equal to 25% of the amount of the tax in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at a rate established by resolution of the City Council;

(b) An additional penalty equal to 25% of the amount of the tax if the tax remains unpaid for a period exceeding one calendar month beyond the due date, plus interest on the unpaid tax and on the unpaid penalties, calculated at the rate established by resolution of the City Council; and

(c) Interest shall be applied at the monthly rate on the first day the first day of the month for the full month, and will continue to accrue monthly on the tax and penalty until the balance is paid in full.

(2) Whenever a check is submitted in payment of a cannabis tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior to the due date, the taxpayer will be liable for the tax amount due plus the return check fee; penalties and interest as provided for in this section; and any amount allowed under state law.

(3) The cannabis tax due shall be that amount due and payable from the first date on which the person was engaged in cannabis business in the city, together with applicable penalties and interest calculated in accordance with division (E)(1) above.

(Prior Code, § 101611)

(Ord. 17-04, passed 11-8-2016)

(A) Every person or entity whether it is a NOT FOR PROFIT , a NON-PROFIT , or a NON-PROFIT

ORGANIZATION as defined in this section, or a for-profit entity who is engaged in a commercial cannabis cultivation business in the city shall pay an annual cannabis tax on medical marijuana and non-medical marijuana where it is permissible by both state and local law.

(B) The initial tax for both medical and non-medical marijuana shall be set at a rate of $25 per square foot of permitted or licensed canopy space for the first 5,000 square feet and then $10 per square foot of canopy space for the remaining space licensed by the city for cultivation of marijuana.

(C) Every person or entity listed herein that conducts any other cannabis business shall pay a 5% tax on all gross receipts of the business for medical marijuana and 10% tax on all gross receipts of the business for non-medical marijuana.

(D) Beginning on January 1, 2020 and on January 1 of each succeeding year thereafter, the amount of tax imposed by this section may be adjusted up to the equivalent to the most recent change in the annual average of the consumer price index (“CPI”) for all urban consumers in the San Francisco-Oakland-San Jose areas as published by the United States Government Bureau of Labor Statistics; if the City Council by ordinance increases any such tax however related to the “CPI,” no adjustment shall decrease any tax imposed by this section.

(E) (1) All tax methodology based upon taxable square footage shall be equal to the maximum square footage allowed by permit type issued by the city and/or state.

(2) In no case shall the canopy square footage not utilized for the permit type be deducted for the purpose of determining the tax.

(Prior Code, § 101606) (Ord. 17-04, passed 11-8-2016)

The Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this subchapter and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this subchapter.

(Prior Code, § 101610) (Ord. 17-04, passed 11-8-2016)

(A) The Administrator may waive the first and second penalties of 25% each imposed upon any person if the person provides evidence satisfactory to the Administrator that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the person paid the delinquent cannabis tax and accrued interest owed the city prior to applying to the Administrator for a waiver.

(B) The waiver provisions specified in this section shall not apply to interest accrued on the delinquent tax and a waiver shall be granted only once during any 24-month period.

(Prior Code, § 101612) (Ord. 17-04, passed 11-8-2016)

(A) Refunds, credits.

(1) No refund shall be made of any tax collected pursuant to this subchapter, except as provided in division (B) below.

(2) No refund of any tax collected pursuant to this subchapter shall be made because of the discontinuation, dissolution, or other termination of a business.

(3) Any person entitled to a refund of taxes paid pursuant to this subchapter may elect in writing to have such refund applied as a credit against such person’s cannabis taxes for the next calendar quarter. (Prior Code, § 101613)

(B) Refunds and procedures.

(1) Whenever the amount of any cannabis tax, penalty, or interest has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city under this subchapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Administrator within one year of the date the tax was originally due and payable, and the provisions of §§ 33.050 through 33.067.

(2) The Administrator, or the Administrator’s authorized agent, shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. (3) No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant’s books and business records after request by the Administrator to do so.

(4) In the event that the cannabis tax was erroneously paid and the error is attributable to the city, the city shall refund the amount of tax erroneously paid up to one year from when the error was identified. (Prior Code, § 101614)

(Ord. 17-04, passed 11-8-2016)

(A) Application, issuance conditions. Any person desiring to claim exemption from the payment of the tax set forth in this subchapter shall make application upon forms prescribed by the Administrator and shall furnish such information and make such affidavits as may be required by the Administrator.

(Prior Code, § 101615)

(B) General. Except as may be otherwise specifically provided in this subchapter, the terms hereof shall not be deemed or construed to apply to any person when imposition of the tax upon that person would violate the Constitution of the United States or that of the state, or preemptive federal or state law.

(Prior Code, § 101616)

(C) Occasional transactions.

(1) (a) The provisions of this subchapter shall not apply to persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of business at the request of a specific patient, client, or customer.

(b) Provided, that such person does not come into the city for the purpose of transacting business on more than five days during any calendar year.

(2) For any person not having a fixed place of business within the city who comes into the city for the purpose of transacting business and who is not exempt as provided in division (C)(1) above, the cannabis tax payable by such person may be apportioned by the Administrator in accordance with § 34.168. (Prior Code, § 101617)

(Ord. 17-04, passed 11-8-2016)

It shall be the duty of the Administrator, or his or her designee, to enforce each and all of the provisions of this subchapter, and the Police Department shall render such assistance in the enforcement of this subchapter as may from time to time be required by the Administrator.

(Prior Code, § 101618) (Ord. 17-04, passed 11-8-2016)

For purposes of apportionment as may be required by law and for purposes of administration and enforcement of this subchapter generally, the Administrator, with the concurrence of the City Attorney, may from time to time promulgate administrative rules and regulations.

(Prior Code, § 101619) (Ord. 17-04, passed 11-8-2016)

(A) None of the tax provided for by this subchapter shall be applied so as to occasion an undue burden upon interstate commerce or be in violation of the equal protection and due process clauses of the Constitutions of the United States or the state.

(B) If any case where a cannabis tax is believed by a taxpayer to place an undue burden upon interstate commerce or be in violation of such constitutional clauses, the taxpayer may apply to the Administrator for an adjustment of the tax. It shall be the taxpayer’s obligation to request in writing for an adjustment within one year after the date of

payment of the tax. If the taxpayer does not request in writing within one year from the date of payment, then taxpayer shall be conclusively deemed to have waived any adjustment for that year and all prior years.

(C) (1) The taxpayer shall, by sworn statement and supporting testimony, show the method of business and the gross volume of business and such other information as the Administrator may deem necessary in order to determine the extent, if any, of such undue burden or violation.

(2) The Administrator shall then conduct an investigation, and shall fix as the tax for the taxpayer an amount that is reasonable and non-discriminatory, or if the tax has already been paid, shall order a refund of the amount over and above the tax so fixed.

(3) In fixing the tax to be charged, the Administrator shall have the power to base the tax upon a percentage of gross receipts or any other measure which will assure that the tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the tax as prescribed by this subchapter.

(D) Should the Administrator determine that the gross receipt measure of tax to be the proper basis, the Administrator may require the taxpayer to submit a sworn statement of the gross receipts and pay the amount of tax as determined by the Administrator.

(Prior Code, § 101620) (Ord. 17-04, passed 11-8-2016)

(A) The Administrator, or his or her designee, shall have the power to audit and examine all books and records of persons engaged in cannabis business including both state and federal income tax returns, state sales tax returns, or other evidence documenting the gross receipts of persons engaged in cannabis business, and, where necessary, all equipment, of any person engaged in cannabis business in the city, for the purpose of ascertaining the amount of cannabis tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to § 34.172 of any taxes estimated to be due.

(B) It shall be the duty of every person liable for the collection and payment to the city of any tax imposed by this subchapter to keep and preserve, for a period of at least three years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the city, which records the Administrator shall have the right to inspect at all reasonable times.

(Prior Code, § 101621) (Ord. 17-04, passed 11-8-2016)

The amount of any tax, penalties, and interest imposed by the provisions of this subchapter shall be deemed a debt to the city and any person carrying on any cannabis business without first having paid such tax shall be liable in an action in the name of the city in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such business.

(Prior Code, § 101622) (Ord. 17-04, passed 11-8-2016)

(A) If the Administrator is not satisfied that any statement filed as required under the provisions of this subchapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession, or that may come into his or her possession, within three years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at

any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due.

(B) Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under § 34.172.

(Prior Code, § 101623) (Ord. 17-04, passed 11-8-2016)

(A) When authorized; non-payment; fraud.

(1) Under any of the following circumstances, the Administrator may make and give notice of an assessment of the amount of tax owed by a person under this subchapter at any time:

• (a) If the person has not filed any statement required under the provisions of this subchapter;

• (b) If the person has not paid any tax due under the provisions of this subchapter;

• (c) If the person has not, after demand by the Administrator, filed a corrected statement, or furnished to the

Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this subchapter;

(d) If the Administrator determines that the non-payment of any business tax due under this subchapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this subchapter.

(2) The notice of assessment shall separately set forth the amount of any tax known by the Administrator to be due or estimated by the Administrator, after consideration of all information within the Administrator’s knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this subchapter, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

(Prior Code, § 101624)

(B) Notice requirements. The notice of assessment shall be served upon the person either by handing it to him or her personally, or by a deposit of the notice in the U.S. mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Administrator for the purpose of receiving notices provided under this subchapter; or, should the person have no address registered with the Administrator for such purpose, then to such person’s last known address. For the purposes of this section, a service by mail is complete at the time of deposit in the U.S. mail.

(Prior Code, § 101625)

(C) Hearing; application and determination.

(1) Within ten days after the date of service the person may apply in writing to the Administrator for a hearing on the assessment. If application for a hearing before the city is not made within the time herein prescribed, the tax assessed by the Administrator shall become final and conclusive. Within 30 days of the receipt of any such application for hearing, the Administrator shall cause the matter to be set for hearing before him or her not later than 35 days after the receipt of the application, unless a later date is agreed to by the Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Administrator to the person requesting such hearing not later than five days prior to such hearing.

cation for hearing, the Administrator shall cause the matter to be set for hearing before him or her not later than 35 days after the receipt of the application, unless a later date is agreed to by the Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Administrator to the person requesting such hearing not later than five days prior to such hearing.

(2) At such hearing, said applicant may appear and offer evidence why the assessment as made by the Administrator should not be confirmed and fixed as the tax due. After such hearing, the Administrator shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in division (B) above for giving notice of assessment.

(Prior Code, § 101626)

(Ord. 17-04, passed 11-8-2016)

The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this subchapter or of any state law requiring the payment of all taxes.

(Prior Code, § 101627) (Ord. 17-04, passed 11-8-2016)

(A) Unless specifically provided otherwise, any reference to a state or federal statute in this subchapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any amendment thereto, or to any change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation would, under state law, require voter approval of such amendment or interpretation, or to the extent that such change would result in a tax decrease. To the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent.

(B) To the extent that the city’s authorization to collect or impose any tax imposed under this subchapter is expanded as a result of changes in state or federal law, no amendment or modification of this subchapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this subchapter. (Prior Code, § 101630) (Ord. 17-04, passed 11-8-2016)

All remedies and penalties prescribed by this subchapter or which are available under any other provision of law or equity, including, but not limited to, the State False Claims Act (Cal. Government Code §§ 12650 et seq.) and the State Unfair Practices Act (Cal. Business and Professions Code §§ 17070 et seq.), are cumulative. 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 subchapter.

(Prior Code, § 101631) (Ord. 17-04, passed 11-8-2016)

(A) Any person violating any provision of this chapter for which no specific penalty is prescribed shall be subject to § 10.99 of this code of ordinances.

(B) (1) Any person violating any of the provisions of §§ 34.020 through 34.042, or any regulation or rule passed in accordance herewith, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

(Prior Code, § 10223)

(2) The conviction and punishment of any person for failure to pay the required tax in accordance with this subchapter shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such

conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this subchapter or of any state law requiring the payment of all taxes.

(Prior Code, § 10224)

(C) Any person violating any of the provisions of §§ 34.055 through 34.067 shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than $500 or by imprisonment in the County Jail for a period of not more than six months, or by both such fine and imprisonment. Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Tax Administrator, or who renders a false or fraudulent return or claim is guilty of a misdemeanor and is punishable as aforesaid. Any person required to make, render, sign, or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by §§ 34.055 through 34.067 to be made, is guilty of a misdemeanor and is punishable as aforesaid.

(Prior Code, § 10613)

(D) Any person violating any of the provisions of §§ 34.155 through 34.175 or any regulation or rule passed in accordance herewith, shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punishable by a fine of not more than $500 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

(Prior Code, § 101628)

(Ord. 87, passed 7-17-1967; Ord. 17-04, passed 11-8-2016; Ord. 18-07, passed 11-6-2018)