Healdsburg Municipal Code Art. I In General

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

"Business"

means professions, trades and occupations and all and every kind of callings carried on for profit or livelihood.

"Collector"

means the office of employee of the City designated by resolution of the City Council to administer this chapter and to collect taxes hereunder, and, if no other person be designated by resolution, the collector is the finance director appointed by the City Manager.

"Fixed place of business"

means the premises occupied for the particular purpose of conducting the business thereat, and regularly kept open for that purpose with a competent person in attendance for the purpose of attending to such business.

"Gross receipts"

means the total amount of the sale price of all sales and the total amount charged or received for the performance of any act, service or employment of whatsoever nature it may be, for which a charge is made or credit allowed, whether or not such service, act or employment is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, and any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor service costs, interest paid or payable, the cost of transportation of the property prior to its purchase or losses or other expenses whatsoever. Excluded from "gross receipts" shall be cash discounts allowed and taken on sales; and tax required by law to be included in or added to the purchase price, and collected from the consumer or purchaser; and such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit.

"Itinerant vendor"

shall mean, for the purpose of this chapter, all those persons or businesses having no fixed place of business in the City who nevertheless conduct business in the City by selling goods directly to the consumer rather than to another business for resale to the public, including the sale of goods to nonprofit or charitable organizations whose members then sell directly to consumers rather than through a retail business or store. It shall not mean those businesses or persons who exclusively wholesale goods to businesses, having permanent locations in the City, for subsequent sale at retail to consumers at said permanent locations.

"Jobbing business"

means every business conducted solely for the purpose of selling goods, wares or merchandise in job lots to wholesale merchants for resale at wholesale to the trade by such wholesale merchants.

"Person"

means all domestic and foreign corporations, associations, syndicates, joint stock corporations, cooperative marketing corporations, partnerships of every kind, clubs, common law trusts, societies and individuals transacting and carrying on any business in the City.

"Quarter"

means a period of three calendar months. The quarters begin on the first day of July, October, January and April of each year. The quarter shall include fractions thereof.

"Retail business"

means any activity carried on for profit or livelihood by a person or persons who act as sellers at retail of tangible personal property, including sales at auction of tangible personal property owned by the sellers or others, and including sales made for storage, use, or other consumption, directly or by auction.

"Vehicle"

means every device in, upon or by which any person or property is or may be transported or drawn upon a public street or highway, except devices moved by human power or used exclusively upon stationary rails or tracks.

"Wholesale business"

means every business conducted solely for the purpose of selling goods, wares or merchandise in wholesale lots to retail merchants for resale at retail to the trade by such retail merchants.

(Code 1964 § 11-1; Ord. 773 § 1, 1985)

This chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation.

(Code 1964 § 11-2; Ord. 773 § 1, 1985)

Any person required to pay a license tax for transacting or carrying on any business under this chapter shall be relieved from the payment of any license tax for the privilege of doing such business, which has been required under any other ordinance of the City, unless otherwise specifically provided herein, but shall remain subject to the regulatory provisions of such other ordinance.

(Code 1964 § 11-3; Ord. 773 § 1, 1985)

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

The following are exempt from paying business license taxes:

A. Any charitable institution, organization, or association organized and conducted for charitable purposes only. The exemption shall not apply to promoters employed by charitable organizations.

B. Any natural person of 18 years of age or less whose annual gross receipts from any and all business are $1,000 or less.

C. Any person conducting or staging any concert, exhibition, lecture, dance, amusement or entertainment where the receipts, if any are derived therefrom, are to be used solely for charitable or benevolent purposes and not for private gain or for the private gain of any person in whole or in part.

D. Any public utility which pays to the City a tax under a franchise or similar agreement.

E. Any religious, fraternal, educational, military, state, county or municipal organization or association conducting any business which is open to members thereof only and not open to the public.

F. Any religious, fraternal, educational, military, state, county or municipal organization or association conducting or staging any amusement or entertainment, concert, exhibition, lecture, dance or athletic event, when the receipts derived are to be wholly for the benefit of such organization and not in the whole or any part for private gain of any person.

G. Any person under any section hereof for engaging in a business dealing solely in farm products produced by him or on land owned by him.

(Code 1964 § 11-4; Ord. 773 § 1, 1985)

Any person desiring to claim exemption from the payment of a license tax and to have a free license issued to him shall make application therefor upon forms prescribed by the collector and shall file a verified statement (state exemption certificate) with the tax collector stating the facts upon which the exemption is claimed. Upon the determination being made that the applicant is entitled to an exemption from the payment of license taxes for any reason set forth in this chapter, the collector shall issue a free license to such person which shall show upon its face that the license tax is exempt.

(Code 1964 § 11-5; Ord. 773 § 1, 1985)

Except as may be otherwise specifically provided in this chapter, the terms hereof shall not be deemed or construed to apply to any of the following persons:

A. Banks, to the extent that a city may not levy a license tax upon them under the provisions of Article XIII, Section 27 of the California Constitution.

B. Insurance companies and associations, to the extent that a city may not levy a license tax upon them under the provisions of Article XIII, Section 28 of the California Constitution.

C. Any person whom the City is not authorized to license under any law or Constitution of the United States or the state. The collector may require the filing of a verified statement from any person claiming to be excluded by the provisions of this section which statement shall set forth all facts upon which the exclusion is claimed.

(Code 1964 § 11-6; Ord. 773 § 1, 1985)

The collector shall, upon a proper showing contained in the verified statement, issue a license to such person claiming exemption under HMC § 5.04.040 and § 5.04.050, without payment to the City of the license tax required by this chapter.

(Code 1964 § 11-7; Ord. 773 § 1, 1985)

The collector may revoke any license granted pursuant to the provisions of HMC § 5.04.070 upon information that the licensee is not entitled to the exclusion as provided herein.

(Code 1964 § 11-8; Ord. 773 § 1, 1985)

There are hereby imposed upon the businesses, trades, professions, callings and occupations specified in this chapter, license taxes in the amounts hereinafter prescribed, and it shall be unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the City without first having procured a license from the City so to do, or without complying with any and all applicable provisions of this chapter.

(Code 1964 § 11-9; Ord. 773 § 1, 1985)

A separate license shall be obtained for each branch establishment or location of the business transacted and carried on, and for each separate type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments; provided, further, that when such separate businesses or branch establishments are owned, maintained and operated by the same person, and when the aggregate of the license fees payable by such person on account of all such branch establishments or separate businesses exceeds the maximum license tax, if one is specified herein, that would be payable by such person if operating only a single establishment or business, he shall be required to pay such maximum license tax, and no more.

(Code 1964 § 11-10; Ord. 773 § 1, 1985)

A. Every person required to have a license under the provisions of this chapter shall make application for the same to the City Clerk and tax collector, and upon the payment of the prescribed tax the collector shall issue to such person a license which shall contain:

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

2. The business licensed;

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

4. The date of the expiration of such license; and

5. Such other information as may be necessary for the enforcement of the provisions of this chapter.

B. The application shall furnish all information required to enable the collector to properly classify the business of the applicant, and determine the proper license to be paid by such applicant. Each applicant for a license must properly fill in one of such applications, sign the same and certify, under penalties of perjury, that the contents thereof are true and correct; or sign and swear to the same before the collector, a deputy collector or some other person authorized to administer oaths. The collector and his deputies and assistants are authorized to administer oaths in all matters pertaining to the duties of their respective offices.

The completed applications shall be submitted to the collector, who shall compute the proper amount of the license or registration fee, and on payment of the license or registration fee shall issue the appropriate license.

(Code 1964 § 11-11; Ord. 773 § 1, 1985)

A. Upon a person making application for the first license to be issued hereunder, or for a newly established business, in all cases where the amount of license tax to be paid is based upon gross receipts or is graduated according to some other sliding scale, such person shall furnish to the collector, for his guidance in ascertaining the amount of license tax to be paid by the applicant, a written statement upon a form provided by the collector, signed by him and certified under penalties of perjury to be true and correct, or sworn to before the collector, his deputies or assistants, or any person authorized to administer oaths, setting forth such information as may be therein required and as may be necessary properly to determine the amount of the license tax to be paid by the applicant.

B. If the amount of the license tax to be paid by the applicant is based upon the amount of his gross receipts, he shall estimate the amount of his gross receipts for the period to be covered by the license for the purpose of determining the licensing bracket which will be applicable to him for the period to be covered by the license to be issued. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant.

(Code 1964 § 11-12; Ord. 773 § 1, 1985)

If the amount of the license tax to be paid by the applicant is graduated according to some sliding scale other than gross receipts, the applicant shall furnish to the collector, for his guidance in ascertaining the amount of license tax to be paid by him, a certified or sworn statement upon a form provided by the collector, setting forth such information as may be therein required and as may be necessary properly to determine the amount of license tax to be paid by the applicant and which statement shall show, among other things, the number of vehicles or tonnage thereof, the number of seats, chairs, rooms, tables or other units used or involved in such person's business as of the time of filing such application. Such person shall thereupon pay the required license tax in advance, computed in accordance with the information contained in such statement.

(Code 1964 § 11-13; Ord. 773 § 1, 1985)

In all cases, the applicant shall, upon filing his application, pay not less than the prescribed minimum license tax in advance, without being prorated, to cover the remaining portion of the current license period; except, that in the case of annual licenses, only the minimum fee shall be prorated as follows:

A. If application is made during the first quarter, 100 percent of the annual fee shall be paid.

B. If application is made during the second quarter, 75 percent of the annual fee shall be paid.

C. If application is made during the third quarter, 50 percent of the annual fee shall be paid.

D. If application is made during the fourth quarter, 25 percent of the annual fee shall be paid.

(Code 1964 § 11-14; Ord. 773 § 1, 1985)

A. In all cases, the applicant for the renewal of a license shall submit to the collector for his guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement upon a form to be provided by the collector, sworn to before the collector, his deputies or assistant, or by any person authorized to administer oaths, or certified under the penalties of perjury to be true and correct, setting forth such information concerning the applicant's business during the preceding license period as may be required by the collector to enable him to ascertain the amount of the license tax to be paid by such applicant pursuant to the provisions of this chapter, and such statement shall be used as the basis for determining the amount of license tax to be paid by the applicant for the renewal period.

B. Where the license tax to be paid under any section of this chapter is based upon gross receipts, only one such statement need be filed during any calendar year, unless the collector requires a corrected statement to be filed, which statement shall be filed at the time the first license is procured, as provided in HMC § 5.04.120, and thereafter on or before the first day of July of each year.

(Code 1964 § 11-15; Ord. 773 § 1, 1985)

No license issued pursuant to this chapter shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may, upon application therefor, have the license amended to authorize the transacting and carrying on of such business under such license at some other location to which the business is or is to be moved.

(Code 1964 § 11-16; Ord. 773 § 1, 1985)

A duplicate license may be issued by the collector to replace any license previously issued under this chapter, which has been lost or destroyed, upon the licensee filing an affidavit attesting to such fact.

(Code 1964 § 11-17; Ord. 773 § 1, 1985)

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

A. Any licensee transacting and carrying on business at a fixed place of business in the City shall keep the license posted in a conspicuous place upon the premises where such business is carried on.

B. Any licensee transacting and carrying on business, but not operating at a fixed place of business in the City, shall keep the license upon his person at all times while transacting and carrying on such business, or if used under HMC § 5.04.380, then the license shall be displayed prominently in the vehicle.

(Code 1964 § 11-18; Ord. 773 § 1, 1985)

In addition to all other powers conferred upon him/her, the collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 30 days and, in such case, to waive any penalty that would otherwise have accrued, and shall have the further power, with the consent of the City Council, to compromise any claim as to the amount of license tax due.

(Code 1964 § 11-19; Ord. 773 § 1, 1985)

No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable under this chapter.

The information furnished or secured pursuant to this section or HMC § 5.04.120 to § 5.04.150 are not public records and shall be confidential. Any unwarranted disclosure or use of such information by an officer or employee of the City shall constitute a misdemeanor and such officer or employee shall be subject to the penalty provided by HMC § 1.08.010.

(Code 1964 § 11-20; Ord. 773 § 1, 1985)

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

In case a determination is made, the collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Healdsburg, California, postage prepaid, addressed to the person so assessed at his last-known address. Such person may, within 10 days after the mailing or serving of such notice, make application in writing to the collector for a hearing on the amount of the license tax. If such application is made within the time prescribed, the collector shall cause the matter to be set for hearing within 15 days before the City Council. The collector shall give at least 10 days' notice to such person of the time and place of hearing in the manner prescribed above for the service of notice of assessment. The City Council shall consider all evidence produced and written notice of its findings thereon, which findings shall be final, shall be served upon the applicant in the manner prescribed above for service of notice of assessment. Such hearings may be continued from time to time by the City Council upon good cause therefor being shown.

(Code 1964 § 11-21; Ord. 773 § 1, 1985)

Any person aggrieved by any decision of an administrative officer or agency, with respect to the issuance or refusal to issue such license, may appeal to the City Council by filing a notice of appeal with the City Clerk. The City Council shall thereupon fix a time and place for hearing such appeal. The City Clerk shall give notice to such person of the time and place of hearing by serving it personally, or by depositing it in the United States post office in Healdsburg, California, postage prepaid, addressed to such person at his last-known address. Such hearing may be continued from time to time by the City Council upon good cause therefor being shown.

(Code 1964 § 11-22; Ord. 773 § 1, 1985)

Unless otherwise specifically provided, all annual license taxes under this chapter shall be due and payable in advance on the first day of July of each year; further, annual license taxes covering new operations commenced after the first day of July shall be due and payable in advance at the time of filing application, prorated in accordance with the provisions of HMC § 5.04.140.

All licenses issued under this chapter shall expire, unless renewed on or before the date on which the license tax is payable next succeeding the issuance or last renewal of such license.

(Code 1964 § 11-23; Ord. 773 § 1, 1985)

The amount of any license tax and penalty imposed by the provisions of this chapter shall be deemed a debt to the City and any person carrying on any business without first having procured a license from the City so to do shall be liable to an action in the name of the City, in any court of competent jurisdiction, for the amount of the license tax, and penalties, imposed upon such business. No portion of a license fee, once paid, is refundable, unless erroneously levied or erroneously calculated.

(Code 1964 § 11-24; Ord. 773 § 1, 1985)

No license issued under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business.

(Code 1964 § 11-25; Ord. 773 § 1, 1985)

For failure to pay a license tax when due, the collector shall add a penalty of 10 percent annual license tax on the last day of each month after the due date thereof; providing, that the amount of such penalty to be added shall in no event exceed 50 percent of the annual amount of the license tax, and no license shall be issued to or renewed for any applicant who is delinquent in the payment of such license tax or penalty until such license tax and penalty are both paid in full.

(Code 1964 § 11-26; Ord. 773 § 1, 1985)

The conviction and imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business, nor shall the payment of any license tax prevent a criminal prosecution for the violation of any of the provisions of this chapter. All remedies prescribed hereunder shall be cumulative and the use of one or more remedy by the City shall not bar the use of any other remedy by the City for the purpose of enforcing the provisions hereof.

(Code 1964 § 11-27; Ord. 773 § 1, 1985)

It shall be the duty of the collector, who is hereby directed, to enforce each and all of the provisions of this chapter, and the chief of police shall render such assistance in the enforcement hereof as may from time to time be required by the collector or the City Council.

The collector, in the exercise of his duties hereunder, acting alone or by his/her duly authorized deputies or assistants, may require any business subject to license tax measured by gross receipts to produce its books and records to the extent necessary to enable the collector to make determination of the accuracy of the gross receipts reported by the business; whenever there is reasonable cause to believe that the gross receipts reported are not accurate, the collector shall have the right to go on the premises of each such business and to audit the books of account thereof to the extent necessary at reasonable times.

The collector, assistant, and any police officer shall have the power and authority to enter, free of charge and at any reasonable time, any place of business required to be licensed herein and demand an exhibition of its license certificate. Any person having such license certificate theretofore issued in his/her possession or under his/her control who willfully fails to exhibit the same on demand shall be guilty of a misdemeanor and subject to the penalty provided for by HMC § 5.04.260. It shall be the duty of the collector, and each assistant, to cause a complaint to be filed against any and all persons found to be violating any of such provisions.

(Code 1964 § 11-28; Ord. 773 § 1, 1985)