Chapter 7 — BUSINESS LICENSE TAX

For the purposes of this Chapter, unless otherwise apparent from context, certain words and phrases used in this Chapter are defined as follows:

Business: That which occupies time, attention and labor for the purpose of livelihood or profit of a person.

City: The City of Hidden Hills.

Doing business: The exercise of some of the functions of business or the carrying on of business by the performance of an act giving rise to some legal obligations. "Doing business" shall also include acts which are compensated or remunerated for, in whole or in part, by donations or contributions in due course where they are the chief source of such livelihood or profit.

Gross receipts: The total amounts actually received or receivable from the transfer of title, possession or the furnishing of any tangible real or personal property, the total amounts 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 any materials, goods, wares or merchandise and the value of any other consideration received of any kind or nature whatsoever, without any deduction therefrom on account of the costs of the property sold, the cost of the materials, labor or services, interest paid or payable or losses or expenses whatsoever.

Person: Any person, firm or corporation, including a person doing business under a fictitious name, associations of individuals, partnerships, clubs, syndicates, joint stock corporations, business or common law trusts or societies.

(Ord. 177, 8-19-85)

It shall be unlawful for any person to maintain, conduct, carry on or commence to maintain, conduct or carry on any business within the City without first having obtained a license to do so as provided in this Chapter.

(Ord. 177, 8-19-85; 1994 Code)

Any person required to have a license under this Chapter shall make an application, in writing, for such license with the City Manager. Such application shall contain the following information:

A.

The name of the applicant, if a natural person, or the name and type of entity of the applicant, if a firm or corporation;

B.

The exact location of the particular place and premises which the applicant proposes to establish, open, maintain or conduct such business if the business is to be conducted in a fixed place. If the business is not to be conducted in a fixed place, the routes of territory to be covered or service area;

C.

The nature and kind of business the applicant proposes to conduct;

D.

A statement that the applicant is the only person interested in conducting or carrying on the business;

E.

A statement as to whether any license or order authorizing a license formerly issued to such applicant or to any of his agents or to any person interested in such business has ever been cancelled or revoked by the City;

F.

A statement of the anticipated annual gross receipts of the business within the City. To the extent authorized by law, the information required by this subparagraph shall be maintained as a trade secret and confidential; and

G.

A verification by affirmation or oath by the applicant if a natural person or by the oath of one of the officers of the firm or corporation that the information provided in the application is true and correct.

(Ord. 177, 8-19-85; 1994 Code)

A.

Power of City Manager: Upon the filing of an application for any license required by this Chapter, the City Manager may make such investigation of the application as deemed appropriate. Thereafter, the City Manager may grant or deny the application.

B.

Denial of License; Appeal: If the application for a license required by this Chapter is denied, the City Manager shall so inform the applicant, in writing, setting forth the basis of the denial. The applicant may appeal the decision of the City Manager denying the application by requesting a hearing before the City Council; provided, such request is filed, in writing, with the City Manager within 15 days after the mailing of the City Manager's notice of denial. If the denial of the application is appealed, the City Council shall conduct a public hearing to determine whether facts found by the City Manager as a basis for denial are true and whether such facts constitute a sufficient basis for denial of the application. Such hearing shall be

conducted, so far as practicable, in accordance with the provisions of the California Administrative Procedures Act. [1]

C.

Issuance of License:

If the City Manager grants the application, then the City Manager shall issue a license to the applicant upon the deposit of the required fees.

A license issued pursuant to this Chapter shall distinctly specify that it is subject to cancellation by the licensee or suspension or revocation by the Council and shall distinctly show its date of issuance. The license shall also state that it is valid until June 30 of the fiscal year issued and that it shall be automatically renewed, subject to continued payment of the required fees, unless cancelled, suspended or revoked.

(Ord. 177, 8-19-85; 1994 Code)

Gov. Code §§ 11370 et seq.

A.

Rate: The license fee for all businesses is one percent of all gross receipts.

B.

Exemptions from Fees: The following persons are exempt from the payment of license fees:

Any business exempt by virtue of the Constitution or applicable statutes of the United States or of the State from the payment of such fees.

Persons who are employed by or who are direct representatives of a licensee shall not be required to pay a license fee for doing any part of the work of the licensee.

Businesses with annual gross receipts less than $15,000.00.

Persons doing business with the City but only as to such business.

The owner of any franchise from the City who pays the franchise fees to the City under an obligation imposed by the franchise. 2 [2]

C.

Quarterly Payment of Fees; Delinquency:

On October 10, January 10, April 10 and July 10 of each year, the licensee shall submit a sworn statement setting forth the licensee's gross receipts for the prior quarter ending October l, January 1, April 1 and July 1, respectively. The sworn statement shall be accompanied by the business license fee for the quarterly period so reported.

All licenses issued pursuant to the provisions of this Chapter shall be delinquent if the fee thereof is not paid on the date when the fee is due. The City Manager shall assess a penalty of five percent for each month of delinquency or fraction thereof until paid; provided, in no event shall the amount of penalty exceed 100 percent of the license fee due.

Notwithstanding Section 2-7-8 of this Chapter, no penalty or forfeiture shall be assessed or levied against a person who has failed to make timely payment of business license fees as of the effective date hereof if payment of the business license fees are received on or before September 30, 1987.

D.

Apportionment of Fees for Undue Burden or Violation of Constitution: None of the license fees provided for by this Chapter shall be applied so as to occasion an undue burden upon interstate commerce or be violative of equal protection or due process clauses of the Constitutions of the United States and the State.

Application for Adjustment of Tax: If the licensee or applicant believes that the license fee places an undue burden on interstate commerce or violates such constitutional clauses, he may apply to the City Manager for an adjustment of tax. Such application shall be made at or within six months after payment of the license fee. The applicant shall, by sworn statement and supporting testimony, show his method of business and the gross volume or estimated gross volume of business and such other information as the City Manager may deem necessary in order to determine the extent, if any, of such undue burden or violation.

Investigation of Request: The City Manager shall then conduct an investigation and determine the validity of the request and shall then fix the license fee for the applicant at an amount that is reasonable and nondiscriminatory or, if the license fee has already been paid, shall order a refund of the amount over and above the license fee so fixed.

Power of Manager to Fix Fee: In fixing the license fee to be charged, the City Manager shall have the power to base the license fee upon a percentage of gross receipts or any other measure which will assure that the license fee assessed shall be uniform with that assessed on businesses of a like nature, so long as the amount assessed does not exceed the license fee prescribed by this Chapter. Should the City Clerk determine that the gross receipts measure of license fee to be proper basis, he may require the applicant to submit, either at the time of termination of the applicant's business in the City or at the end of each three- month period, a sworn statement of gross receipts and pay the amount of license tax therefor; provided, that no additional license fee during any calendar year shall be required after the licensee shall have paid an amount equal to the annual license fee as prescribed by this Chapter.

(Ord. 177, 8-19-85; Ord. 191, 3-2-87; Ord. 194, 7-6-87; 1994 Code)

See Chapter 6 of this Title.

A.

Initial Term: The initial term of a license issued pursuant to this Chapter shall commence on the date of issuance and terminate on June 30 next following the date of issuance. After the initial term of the license, the license shall be automatically renewed for the period from July l to June 30 of each fiscal year thereafter subject to payment of the required fees, unless the license is cancelled, suspended or revoked as herein set forth.

B.

Exhibition of License: Any person conducting a business required to be licensed by the provisions of this Chapter shall post the license in a conspicuous place at the place of business and keep the license posted until its date of expiration and then remove it. It shall be unlawful for any licensee to conduct any business within the City without exhibiting the license or facsimile thereof.

C.

Transferability: No license issued pursuant to this Chapter shall be transferred; provided, however, 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 the license at some other location to which the business has been moved or is to be moved.

(Ord. 177, 8-19-85; 1994 Code)

A.

Suspension or Revocation:

In addition to the violation of any other provision of this Chapter, the following constitutes grounds for suspension or revocation of a license:

a.

Willfully performing any act not authorized by such license;

b.

Not keeping, conducting, maintaining or carrying on in a decent, orderly, quiet and lawful manner the business described in the license;

c.

Willfully and knowingly committing violations of City, County, State or Federal laws;

d.

Using fraud or misrepresentation in obtaining the license;

e.

Failing to deposit or pay all applicable rates, fees and charges established by this Chapter in a timely manner; or

f.

Failure to reasonably estimate the amount of the license fee.

The City Manager shall suspend or revoke the license of any licensee who fails to comply with the terms and conditions of this Chapter. At least 15 days prior to the effective date of the suspension or revocation, the City Clerk shall:

a.

Provide the licensee with a written statement of the facts upon which such suspension or revocation is based;

b.

Inform the licensee of the licensee's right to appeal the decision to the City Council; and

c.

Notify the licensee that the licensee will be unable to conduct business within the City when the license is suspended or revoked.

B.

Cancellation: Licensee may cancel any license issued pursuant to this Chapter by filing a written statement of intent to cancel with the City Manager. Such cancellation shall be effective as of the date the statement is received by the City Manager.

C.

Licenses; Effect of Cancellation, Suspension or Revocation: If a license is suspended pursuant to the provisions of this Chapter, the period of suspension shall be for such time as the Council may direct. If a license is revoked pursuant to the provisions of this Chapter, no further license shall be issued or granted to such person within one calendar year. If a license is cancelled pursuant to the provisions of this Chapter, then a new license shall be issued only when a new application is submitted; provided, however, if a license is cancelled after the City Manager has notified the licensee that the license will be suspended or revoked, then no new license shall be issued during the period of the proposed suspension or for one calendar year in the case of proposed revocation. It shall be unlawful for any person to conduct or assist in the conducting of business within the City after the cancellation, suspension or revocation of the license without first having procured a license to do so as provided herein.

D.

Council Hearing for Suspension or Revocation:

If the licensee files a written request with the City Manager requesting a hearing before the City Council within 15 days after the City Manager's notice of suspension or revocation, then the Council shall conduct such a public hearing concerning such suspension or revocation.

The Council shall determine whether the facts alleged by the City Manager as grounds for the suspension or revocation are true and whether such facts constitute sufficient grounds for suspension or revocation. Such hearing shall be conducted so far as practicable in accordance with the California Administrative Procedures Act. [3]

(Ord. 177, 8-19-85; 1994 Code)

Gov. Code §§ 11370 et seq.

The City Manager and Sheriff shall enforce the provisions of this Chapter. The City Manager, in the exercise of such enforcement duties, shall examine or cause to be examined all places of business in the City to ascertain whether the provisions of this Chapter have been complied with.

(Ord. 177, 8-19-85)

A.

Misdemeanor Declared: Any person having such license in his possession or under his control who willfully fails to exhibit such license on demand shall be guilty of a misdemeanor.

B.

Unpaid or Delinquent Fees: [4] Any unpaid license fee or delinquency assessment shall be recoverable in a civil action brought by the City for such purpose. If the City files a legal action to enforce collection of the license fee or penalties, the delinquent party shall be liable to pay reasonable attorneys' fees as set by the court in addition to the fee and penalties due.

C.

All remedies prescribed herein are cumulative, and the use of one or more remedies shall not bar the use of any other remedy.

(Ord. 177, 8-19-85)

See also Section 2-7-5(C)(3) of this Chapter.