Hercules Municipal Code Art. 3 Exemptions

Any person claiming an exemption pursuant to the provisions of this Chapter shall file a verified statement with the Director of Finance stating the facts upon which such exemption is claimed. The Director of Finance, upon a proper showing contained in the verified statement, shall issue an exemption certificate to such person claiming exemption.

After giving notice and a reasonable opportunity for hearing to such person, the Director of Finance may revoke any exemption certificate granted upon information that such person is not entitled to the exemption as provided in this Chapter.

The following shall be exempt from the business license tax imposed by this Chapter:

(a) Any person who is exempt by virtue of the Constitution or applicable statutes of the United States or the State of California.

(b) If the business license tax imposes an undue burden on interstate commerce. In any case when a license tax is believed by a licensee or applicant for a license to place an undue burden upon such commerce, such person may apply to the Director of Finance for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at or within six (6) months after payment of the prescribed license tax. The applicant shall, by affidavit and supporting testimony, show his method of business and the gross volume or estimated gross volume of business and such other information as the Director of Finance may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The Director of Finance shall then conduct an investigation and make a full report thereof to the Council, which shall fix as the license tax for the applicant an amount which is reasonable and nondiscriminatory, or, if the license tax has been paid, shall order a refund of the amount over and above the license tax so fixed.

(c) Any person who is a minor under the age of eighteen (18) years and whose gross receipts do not exceed one thousand dollars ($1,000) per year.

(d) Any business, occupation or activity which is conducted, managed or carried on wholly for the benefit of charitable purposes and from which profit is not derived, either directly or indirectly, by any person.

(e) The conduct of any entertainment, concert, exhibition or lecture on scientific, historical, literary or religious subjects when the receipts of any such entertainment, concert, exhibition or lecture are to be appropriated to any church or school or to any religious or benevolent purpose.

(f) The conduct of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association when the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objects for which such organization or association was formed and from which profit is not derived, either directly or indirectly, by any person; provided, that any such organization or association shall not be exempt from complying with the provisions of this Code requiring a permit from the Council or any commission or officer to conduct, manage or carry on any profession, trade, calling or occupation.

(g) Any association or organization whose sole financial support is from dues or voluntary contributions and from which profit is not derived, either directly or indirectly, by any person.

(h) Any fee class contractors earning less than twenty thousand dollars ($20,000) annually.

(i) Contractors providing professional services to the City.

(Ord. 533 § 2, 2021)