Hillsborough Municipal Code Ch. 5.04 Business Tax

A. The purpose of the business taxes imposed by this chapter is to create revenue for the town.

B. The business taxes and administrative fees imposed by this chapter shall go into full force and effect on July 1, 1985.

C. The payment of any business tax and administrative fee required by this chapter, its acceptance by the town and the issuance of said license to any person shall not entitle the holder hereof to carry on any business called for by the license, unless he has complied with all requirements of this municipal code and any other applicable laws or regulations. Nothing in this Chapter 5.04 shall be deemed to authorize or allow any commercial activity prohibited by Section 17.16.020 (which was added to the Hillsborough Municipal Code by Ordinance No. 390 adopted February 14, 1984). The town's issuance of a business license shall in no way relieve the holder thereof from responsibility for any personal injury or property damage resulting from said holder's conducting business in the town.

(Ord. 411, 1985; prior code § 31.2.58)

The following definitions shall be used in interpreting this chapter:

A. "Business" means an art, profession, trade or occupation and all and every kind of calling, carried on for profit (including nonprofit corporations which have taxable income).

B. "Conduct" means operate, manage, control, carry on, transact or engage in.

C. "Contractor" means any person who does construction, improvement, alteration, repair, or maintenance work for an agreed price, or who holds himself out to the public as in said business, or who erects, constructs, alters or repairs any building or structure for the purpose of selling or renting the same.

D. "Employer" means a person registered with the state and federal government as an employer and required by law to do any of the following: withhold state or federal income tax from employees, pay the social security tax imposed on employers, or maintain workers' compensation insurance.

E. "Gross Receipts" means:

1. For a business other than a Category E business, as defined in Section 5.04.340, renewing its license, the total amount of the sale prices in dollars of all goods sold in the town and/or the total amount of consideration, valued in dollars, received for the performance of any act or service rendered in the town during the most recently completed fiscal year of the business, and for a Category E business, the total amount of commissions received for the sale of real property located in the town.

2. For a business applying for a license for the first time, the same amounts as set forth in subsection E.1 above but as applicable to the current fiscal year of the business, as estimated by the business in an appropriate written affidavit.

3. "Gross Receipts" shall include all receipts, cash, credits and property of any kind without any deductions therefrom on account of the cost of the property sold, cost of materials used, labor or services costs, interest paid or payable, losses, or any other expenses whatsoever, and shall include any sales commissions.

4. The following shall be excluded from "Gross Receipts":

a. Cash discounts allowed or taken on sales;

b. Sales, use or transient occupancy taxes required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

c. Regarding property returned by purchasers upon rescission of contracts of sale, such part of the sale price as is refunded to such purchaser in either cash or by credit;

d. Amounts collected for others where the business is acting as an agent or trustee to the extent that said amounts are paid to those for whom collected, provided that the agent or trustee has furnished the business tax collector with the names and addresses of those for whom the amounts were collected and the amounts paid to them (contractors and subcontractors are not agents or trustees of each other);

e. With respect to Gross Receipts calculated by Category B subcontractors, amounts received by Category B subcontractors from Category B contractors, which amounts have been or will be included in such Category B contractors' Gross Receipts calculations for purposes of Section 5.04.020E.1 or 2.

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

g. Amounts collected as membership dues or assessments.

h. That portion of the receipts related to the sale of goods or services to the Town of Hillsborough.

F. "Person" means any domestic or foreign corporation, association, syndicate, joint stock corporation, partnership of every kind, club, natural person, or other entity conducting any business in the town other than as an employee; provided, however, that an individual employed by an owner or occupant (hereinafter "Owner/Occupant") of residential real property in the town to do construction, improvement, alteration, repair or maintenance work to such residential real property requiring a building permit from the town shall be a "Person" for purposes of this chapter if the "Owner/Occupant" is not a "Person." Examples of individuals who are employees and therefore not "Persons" and therefore not required to obtain a business license or pay a business tax and administrative fee under this chapter are domestics (such as maids, cleaning persons, bartenders, etc.) directly employed by a resident of the town and other casual household help directly employed by a resident of the town. Businesses (such as house cleaning services, pool cleaning services, gardening services, etc.) which supply their employees to perform services for a resident of the town are "Persons" for purposes of this chapter.

G. "Tax year" means the period commencing on the first day of July of any calendar year and ending on the thirtieth day of June of the immediately following calendar year.

(Ord. 311, 1985; prior code §§ 31.2.04; 31.2.24)

(Ord. No. 747, § 3, 5-14-2018)

The office of business tax collector is hereby created. The business tax collector shall be appointed by the city manager and may have other official duties such as the collector of licenses and permits, or as a deputy treasurer of the town.

(Prior code § 31.2.08)

A. It shall be the duty of the business tax collector and he shall have the power to administer this chapter in accordance with the terms hereof.

B. The business tax collector as herein established shall be responsible for all moneys collected under the provisions of this chapter and shall submit a monthly report to the city manager, showing all receipts for the month and their sources, with a certified copy thereof to the city clerk.

(Prior code § 31.2.12)

A. No person shall conduct any business in the town without having procured a business license from the town and paid the business tax and administrative fee imposed by this chapter; provided, however, that no person which pays the town a franchise fee pursuant to a franchise agreement with the town shall be required to procure a business license or pay the business tax or administrative fee imposed by this chapter. A new business license and the payment of a new business tax and administrative fee shall be required for each tax year in which a person conducts business in the town.

B. For a business applying for a license for the first time, the business tax imposed by this chapter shall be calculated based on estimated gross receipts as set forth in Section 5.04.020, Subsection E.2. At the end of the fiscal year for which said estimate is made, the business shall file with the business tax collector a written statement showing the actual gross receipts for said period, as defined in Section 5.04.020, subsection E.1. If the tax based on the actual gross receipts exceeds the tax based on the estimated gross receipts imposed at the time the license was issued, the licensee shall thereupon pay said excess to the town. If the tax based on the actual gross receipts is less than the tax based on the estimated gross receipts, said excess shall be applied to the amount owing for the business' license for the next tax year or shall be refunded to the licensee in cash, at the option of the licensee.

(Ord. 411, 1985; Ord. 355 § 1, 1978: prior code § 31.2.16)

A separate license must be obtained for each separate category of business (as defined in Section 5.04.340) conducted in the town by a person, and each license shall authorize the licensee to conduct only the category of business licensed thereby.

(Ord. 411, 1985; prior code § 31.2.20)

When any person by the use of signs, circulars, cards, telephone books, or newspapers, advertises, holds out, or represents that he conducts business in the town, or when any person holds an active license or permit issued by a governmental agency indicating that he conducts business in the town, and said person fails to affirm by a sworn statement given to the business tax collector that he is not conducting business in the town, after being requested to so affirm by the business tax collector, then these facts shall be considered prima facie evidence that he is conducting business in the town.

(Ord. 411, 1985; prior code § 31.2.28)

The failure by a person conducting business in the town to obtain a business license shall constitute a violation of this chapter, and each day that said business is conducted without a license shall constitute a separate and distinct violation of this chapter.

(Ord. 411, 1985; prior code § 31.2.36)

None of the business taxes provided for by this chapter shall be so applied as to cause an undue burden upon interstate commerce, or a violation of the equal protection or due process clauses of the constitutions of the United States or the State of California.

In any case where a business tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or to be violative of the equal protection or due process clauses, the licensee shall apply to the business tax collector for an adjustment of the tax. Such application may be made before, at, or within six months after payment of the prescribed business tax. The applicant shall, by sworn statement and supporting testimony, show its method of business and such other information as the business tax collector deems necessary in order to determine the extent, if any, of such undue burden or violation. The business tax collector shall then conduct an investigation and, after having first obtained the written approval of the city attorney, shall fix as the business tax for the applicant an amount that is reasonable and nondiscriminatory, or if the business tax has already been paid, shall order a refund of the amount over and above the business tax so fixed.

(Ord. 411, 1985; prior code § 31.2.32)

A. The provisions of this chapter shall not apply to any business, occupation, event, or activity (including any entertainment, concert, exhibition, or lecture on scientific, historical, literary, religious, or moral subjects) conducted for religious, charitable, philanthropic or educational purposes, provided that convincing evidence is furnished to the business tax collector which establishes that one hundred percent of the net income derived from any such business, occupation, event or activity will be devoted to religious, charitable, philanthropic or educational purposes including reasonable administrative costs thereof. Qualification for exemption from taxation by any person carrying on any such activities under subsection 501(c) or (d) of the United States Internal Revenue Code of 1954 or any successors to said subsections shall automatically exempt said person from any and all business taxes and administrative fees imposed by this chapter.

B. This section shall not be deemed to exempt any institution or organization from complying with any other chapter of this municipal code.

C. Notwithstanding any other provision of this section, the exemption provided by this section shall not be deemed applicable with regard to the conducting of any unrelated trade or business, as defined in the Internal Revenue Code of 1954 as amended and regulations thereto, by or on behalf of a religious or charitable institution or organization.

D. When activities otherwise exempt under subsection A of this Section 5.04.100 are conducted for or on behalf of an exempt institution or organization by a contractor, concessionaire or the like for profit, the exemption provided in subsection A shall not excuse said contractor, concessionaire or the like from the requirements of obtaining a business license under this chapter. The gross receipts of said contractor, concessionaire or the like shall not include amounts turned over to the exempt institution or organization and not returned to said contractor, concessionaire or the like.

(Ord. 411, 1985; prior code § 31.2.32)

The provisions of this chapter shall not apply to second units as described in Chapter 17.52 or to the second units' primary dwellings as defined in Section 17.52.010.

(Ord. 648 § 2, 2003)

Any person under eighteen years of age whose annual gross income from all business done within the town is less than one thousand dollars shall be exempt from the requirements of this chapter.

(Ord. 411, 1985; prior code § 31.2.40)

An individual who engages in the construction of improvements to or installs equipment in or on real property or improvements used exclusively for a single-family residence, of which the individual is the legal owner and in which he resides or intends to reside, shall be exempt from the requirements of this chapter; provided, that if said residence is offered for sale within one year of the completion of the construction or installation, he shall pay the business tax and administrative fee assessed against a general contractor by this chapter.

(Ord. 411, 1985; prior code § 31.2.44)

The City Council or City Manager may at any time revoke an exemption from the tax imposed by this chapter which has been previously been granted to any person if in the Council's or City Manager's opinion the person is not entitled to the exemption.

(Ord. 411, 1985; prior code 31.2.52)

Before any business license is issued to any person, said person shall make application therefor to the business tax collector. The applicant shall state the name and business mailing address of the party to whom the license is to be issued, the nature of the trade or business to be pursued, the number of vehicles to be used in the Town in connection with the business, and such other information as may be deemed by the business tax collector to be necessary for the enforcement of the provisions of this chapter. The making of any intentionally or knowingly false, inaccurate, or misleading statement on said application or the making of any statement on said application with the knowledge that the applicant has insufficient basis for ascertaining the truth or accuracy of such statement shall be a violation of this chapter and shall be grounds for refusal or revocation of a business license if such statement is not corrected.

(Ord. 411, 1985; prior code § 31.2.54)

Upon the submission of an application as provided in Section 5.04.140, and the tendering of the business tax (or the appropriate portion thereof) and administrative fee required by this chapter, the business tax collector shall process the application and review the same for compliance with the provisions of this chapter. The business tax collector may submit said application to any other officials or departments of the Town for the purposes of determining whether the business to be licensed meets the requirements of federal and state law and other Town ordinances.

(Ord. 411, 1985)

A. Upon receiving the approval of the officials or departments, if any, to which the application has been referred, the business tax collector shall prepare and issue a license which shall contain on its face the following information:

1. name of the business;

2. business mailing address;

3. business license number (which shall also appear on the decal stickers in subsection B. below);

4. type of business by category;

5. date of issuance of license; and

6. date of expiration of license.

B. At the time of the issuance of a license, the business tax collector shall also issue prenumbered decal stickers, one for each of the vehicles operated by said business. Said stickers shall be affixed as set forth in Section 5.04.210.

(Ord. 411, 1985)

In no case shall any mistake by any officer or employee of the Town in stating the amount of a business tax prevent or prejudice the collection by the Town of what should be actually be due from any person who is subject to the provisions of this chapter.

(Ord. 411, 1985)

A. Any license issued pursuant to the provisions of this chapter may be revoked for any of the following reasons:

1. preservation of the peace, health, safety or general welfare of the Town and its residents;

2. operation of a category of business other than that for which the licensee is licensed;

3. knowing or intentional misstatement by the licensee of the amount of its gross receipts on the license application;

4. violation by the licensee of any federal or state law or Town ordinance (including this chapter).

Such revocation shall take place only after a hearing held before the City Council after written notice to the licensee stating the grounds of complaint against it and the time and place of said hearing. Service of said notice shall be completed either by delivery to the licensee personally, or by sending said notice through certified United States mail, at least ten (10) days before hearing. Said hearing may be continued from time to time by the City Council. The findings and conclusions of the Council shall be final.

B. A business license may be suspended by the City Manager if such suspension is necessary to preserve the peace, health, safety or general welfare of the Town. Such suspension shall not continue for more than thirty days unless within said thirty days a hearing is held by the City Council pursuant to subsection A of this Section 5.04.180.

(Ord. 411, 1985)

No license for any current or future tax year shall be issued to any person who, at the time of making application for any license, is indebted to the Town for any unpaid business tax or administrative fee except as otherwise permitted by this chapter.

Each license granted or issued under any provision of this chapter shall authorize the licensee to conduct the category of business therein named, and the license shall not be assignable or transferable.

A. Any licensee conducting business in the Town shall keep the license upon his person at all times while conducting the business for which it was issued.

B. Each vehicle used by a licensee in the town shall have affixed to the left side of its rear bumper (or in such other location as the business tax collector shall determine) a decal sticker indicating that the business tax and administrative fee was paid for the applicable tax year by the licensee. No licensee shall give away, sell, or transfer a decal sticker to any person not entitled to display such sticker under the provisions of this chapter or otherwise permit the use of a decal sticker by such person. The failure to display such a sticker in the manner required by this chapter or the display of a sticker not obtained in conformance with the provisions of this chapter shall constitute a violation of this chapter. During the tax year to which it applies, such decal sticker shall not be removed from the vehicle to which it is affixed unless a licensee permanently discontinues use of said vehicle in said business, in which case said licensee shall be required to remove said sticker. In the event that a licensee uses a substitute vehicle or replaces a vehicle, said licensee shall obtain and affix on the substitute or replacement vehicle an additional sticker and pay a fee of twenty dollars for each such sticker.

(Ord. 562 § 2, 1998; Ord. 411, 1985)

A. All business taxes, unless otherwise expressly stated in this chapter, shall be annual taxes and shall permit the licensee to conduct the category of business stated on the license for one tax year.

B. Except as otherwise set forth in this chapter, all business taxes and administrative fees shall be payable in advance, and in full amount, in lawful money of the United States, at the Town of Hillsborough Town Hall in Hillsborough, California.

C. No greater or lesser amount of money shall be charged or received for any business tax or administrative fee hereunder than is specified therefor in this chapter and no license shall be granted or issued for any period of time other than the full tax year provided in this chapter. Subject to the provisions of subparagraphs E through I of this Section 5.04.220, business taxes and administrative fees shall be due and payable on the first day of the first month of the tax year and shall be delinquent if not paid on or before the first working day of the first month of the tax year; provided, however, that business taxes and administrative fees for businesses first conducted in the Town after the first day of the first month of the tax year shall be due and payable prior to the first day said business was conducted in the Town and shall be delinquent if not paid on or before said date.

D. No later than 30 days prior to the end of each tax year, the business tax collector shall cause a notice to be sent to all holders of current business licenses reminding said persons of their obligation to obtain a new business license for the coming tax year. A person's obligation to comply with the provisions of this chapter shall not be conditioned upon the dispatch or receipt of said notice, however.

E. Any person whose business tax (excluding the administrative fee) for a given tax year exceeds $1,000 under the provisions of this chapter (and any other person for whom full payment of the business tax in a single payment would constitute a hardship, as determined by the city manager pursuant to objective guidelines developed in conjunction with the city attorney) may elect to pay such tax (excluding the administrative fee) in four equal quarterly installments, each such installment to be due and payable on the first working day of the first month of the calendar quarter to which such quarterly installment applies; provided, however, that the provisions of this paragraph E shall not apply to any tax payable according to the provisions of paragraphs G and H of this Section 5.04.220. If any such person first conducts business in the Town after the beginning of the second calendar quarter of the tax year, such person may elect to pay the business tax (excluding the administrative fee) applicable to such tax year in four equal installments spread over the balance of the tax year in a similar manner as determined by the business tax collector.

F. Any other provision of this chapter to the contrary notwithstanding, any person subject to the provisions of this chapter whose total annual business tax (excluding the administrative fee) exceeds $1,000 and whose business historically experiences substantial and unpredictable fluctuations from year to year in the amount of annual gross receipts (pursuant to objective guidelines to be developed by the city manager in conjunction with the city attorney) may, in addition to paying the business tax in quarterly installments as set forth in subparagraph E of this Section 5.04.220, estimate and pay the amount of each such quarterly installment as hereinafter set forth; provided, however, that the provisions of this paragraph F shall not apply to any tax payable according to the provisions of paragraphs G and H of this Section 5.04.220. At the end of each quarter, such person shall list the jobs which such person has begun during such quarter (hereinafter "applicable quarter") and the total value (total bid price plus any applicable modifications) of all such jobs (hereinafter "quarterly gross receipts"). The business tax installment due for the applicable quarter (payable at the beginning of the immediately succeeding quarter) shall be the amount of tax as set forth in paragraph A of Section 5.04.350 calculated on the quarterly gross receipts of such applicable quarter. At the end of the tax year, such person shall pay the total annual business tax due for such tax year (based on such person's actual annual Gross Receipts for such year), less the amounts paid as the first, second, and third quarterly installments hereunder. If the total paid for the first, second, and third quarterly installments does not equal or exceed 80% of the business tax determined to be due on the actual Gross Receipts for such three quarters, such person shall be liable for a penalty in the amount of 10% of the balance of the business tax determined to be due as hereinabove set forth.

G. The tax collectible pursuant to paragraph A of Section 5.04.350 of this chapter on that portion of a person's Gross Receipts which is attributable to business activity for which a building or other permit listing the value of such business activity is issued by the Town shall be paid by such person at the time such permit is applied for. The value of the business activity as set forth on such permit application shall establish the amount of Gross Receipts against which the applicable tax rate as set forth in paragraph A of Section 5.04.350 shall be applied.

H. Any other provision of this Chapter to the contrary notwithstanding, the collection of the business tax and administrative fee set forth in Section 5.04.350, subsections A and B, from persons conducting Category E businesses in the Town shall be accomplished as follows:

1. For fiscal year 85-86:

a. The San Mateo-Burlingame Board of Realtors shall be the agent of the Town for purposes of collecting the administrative fee from persons conducting Category E businesses in the Town. For purposes of facilitating the administration of the Business Tax, $10,000 shall be deemed to be an accurate and fair approximation of the total annual amount which would have been collected had the administrative fee been collected separately from each brokerage firm and each individual broker not included in a brokerage firm. Accordingly the payment by the Board of Realtors of such $10,000 amount to the Town for fiscal year 85-86 (received by the Town on June 20, 1986) constitutes payment in full for Category E Businesses' administrative fees for such fiscal year. The San Mateo-Burlingame Board of Realtors and the brokerage firms and individual brokers who would have otherwise been required pursuant to this Chapter to pay the fiscal year 85-86 administrative fee directly to the Town may establish whatever accounting procedures between themselves they deem appropriate with respect to such payment by the Board of Realtors.

b. The Town shall collect the business taxes owned by persons conducting such Category E businesses directly from such persons according to information provided to the Town by the San Mateo-Burlingame Board of Realtors specifying the appropriate persons and amounts to be billed by the Town pursuant to this paragraph.

2. For fiscal year 86-87 and thereafter:

a. The Town shall collect the administrative fee from persons conducting Category E businesses in the Town directly from such persons.

b. The business tax shall be collectible as set forth in subsection A of Section 5.04.350 as amended by Ordinance 426 adopted May 12, 1986.

3. No penalties for violation or penalties for delinquency as set forth in this chapter (as in effect prior to the passage of Ordinance 426 and this ordinance) shall be imposed upon persons conducting Category E businesses in the town for failure to obtain a Fiscal Year 1985-86 business license or to pay administrative fees or business taxes for Fiscal Year 1985-86 if such persons pay on or before August 31, 1986, the business taxes billed to them by the town pursuant to subsection H.1.b of Section 5.04.220.

I. For purposes of tax year 1985-86 only any tax set forth in paragraph A of Section 5.04.350 which would otherwise be due and payable prior to Monday, September 2, 1985, under the terms of this chapter shall instead be due and payable Monday, September, 1985, and shall be delinquent if not paid on or before such date. Any such tax which is due and payable on or after Monday, September 2, 1985, under the terms of this chapter shall be due and payable as so provided and shall not be subject to any special procedures for tax year 1985-86. The administrative fee set forth in paragraph B of Section 5.04.350 shall in all events be due and payable as set forth in paragraph C of this section 5.04.220.

(Ord. 428, 1986; Ord. 411, 1985)

A. In the event a business which had a business license in the immediately preceding year (whether pursuant to the ordinance codified in this section or to a predecessor ordinance) and which continues to conduct business in the town after the start of a new tax year fails to renew its business license for such new tax year and to pay the administrative fee and the business tax, if any, on or before the due date(s) as set forth in Section 5.04.220, a delinquency penalty of two hundred dollars plus fifty percent of the amount of total annual tax due plus one and one-half percent per month of the amount of tax due shall be imposed.

B. In the event that a person commences business in the town without first obtaining a business license and paying the administrative fee and the business tax, if any, a delinquency penalty of two hundred dollars plus twenty percent of the amount of total annual tax due plus one and one-half percent per month of the amount of tax due shall be imposed on said person, commencing on the date that the person first conducts business in the town.

C. If the business tax collector has knowledge of a person conducting business in the town without a valid current business license, the business tax collector shall cause a reminder notice to be sent to said person advising him of the requirements of this chapter. A person's obligation to comply with the provisions of this chapter shall not be conditioned upon the dispatch or receipt of said notice however.

(Ord. 562 § 3, 1998; Ord. 425, 1986; Ord. 411, 1985)

The amount of any business tax, administrative fee, or penalty imposed by the provisions of this chapter is deemed a debt to the town, and any person conducting any business without first having procured a license from the town to do so shall be liable to an action in the name of the town in any court of competent jurisdiction, for the amount of business tax, administrative fee, and penalties imposed on said business.

(Ord. 411, 1985)

The business tax collector, with the approval of the city manager, may adopt reasonable rules and regulations for the purpose of administering the provisions of this chapter.

(Ord. 411, 1985)

The business tax collector, with the approval of the city manager, may refund any business tax, administrative fee, or penalty which he determines was erroneously collected, but no business tax or administrative fee shall be refunded if, prior to applying for a license, a person has conducted the business for which the license is sought.

(Ord. 411, 1985)

It shall be the duty of the business tax collector to enforce each and all of the provisions of this chapter, and the chief of police shall render such assistance in its enforcement as may from time to time be required by the business tax collector.

(Ord. 411, 1985)

In addition to all other powers conferred upon him, the business tax collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not to exceed thirty days, and in said case, to waive any delinquency penalty that would otherwise have accrued.

(Ord. 411, 1985)

Any person aggrieved by any decision of the business tax collector made pursuant to the provisions of this chapter may appeal therefrom to the city council within ten days after notice of such decision by filing with the city clerk a written notice of appeal. If said appeal is made within the time prescribed, the city clerk shall cause the matter to be set for hearing before the city council within sixty days from the date of receipt of said notice of appeal, giving the appellant not fewer than ten days notice in writing of the time and place of hearing. The city council shall have the authority to determine all questions raised on such appeal. Notices to appellant shall be personally served or deposited in the U.S. Mail, at Burlingame, California, postage prepaid, addressed to the appellant at his last known address. The findings and determination of the council at such hearings shall be final and conclusive, and within three days after such findings and determinations are made, the city clerk shall give notice thereof to the appellant.

In the event that the affected person does not appeal, any decision of the business tax collector shall become final and conclusive on expiration of the time stated in this section for appeal.

(Ord. 411, 1985)

Except as set forth in Section 5.04.280, there shall be no deviation in the taxes, fees, penalties or due dates set out in this chapter unless said deviation is specifically authorized by formal City Council action, after written request by the applicant through the business tax collector on forms provided by the Town.

(Ord. 411, 1985)

It shall be unlawful for the business tax collector or any other employee of the Town or any member of the City Council to make known in any manner any information obtained by an investigation of records and equipment of any person or business; provided, however, that nothing in this section shall be construed to prevent the following:

A. The disclosure to or the examination of records and equipment by another Town employee for the sole purpose of administering or enforcing any provision of this chapter.

B. The disclosure of information to, or the examination of records by federal or state officials, or the tax officials of any other city or county.

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 Town.

D. The disclosure, after the filing of a written request to that effect, to the taxpayer himself, or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any tax, interest or penalty (paid or unpaid); provided, however, that the Town attorney approve each said disclosure.

E. The disclosure of the names and addresses of businesses paying the tax imposed by this chapter, and the general type or nature of their business.

F. The disclosure by way of public meeting or otherwise of such information as is necessary to the City Council in order to permit it to be fully advised as to the facts when a taxpayer appeals a decision of the business tax collector or submits an offer of compromise with regard to a claim asserted against him by the Town for business taxes or when acting upon any other matter.

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

(Ord. 411, 1985)

A. The business tax collector, or his deputies, shall have the power to audit and examine all books and records of any person carrying on or conducting business in the Town for the purpose of ascertaining the amount of business tax required to be paid by the provisions of this chapter. It shall be the duty of every person conducting business in the Town to keep and preserve and bring to Town Hall upon request of the business tax collector books and records in such form as may be required to determine the amount of said tax paid or to be paid. If said person, after a written demand by the Town, refuses to make available for audit, examination or verification said books and records, the business tax collector may, after full consideration of all information within his knowledge concerning the business and activities of the person so refusing, estimate the gross receipts of the business and make an assessment of tax, including delinquency penalties.

B. In case such assessment is made, the business tax collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office to the last known address of the person. For the purpose of this section, a service by mail is completed at the time of deposit.

C. Within ten days after the date of service, the person so assessed may appeal as stated in Section 5.04.290. If the person does not appeal within the time prescribed, the amount so assessed shall be final and shall immediately be due and owing to the town, but penalties as provided in this chapter shall continue to accrue until paid.

D. The town may subpoena the books and records of any person who refuses to make them available to the town.

(Ord. 411, 1985)

Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any officer or employee of the town any material fact in procuring a business license provided for in this chapter is deemed guilty of a misdemeanor, punishable as set forth in Chapter 1.08 of this code, except that the failure to display a decal sticker in the manner required by this chapter as set forth in Section 5.04.210 shall be an infraction and provided, further, that in cases of unpaid administrative fee, sticker fees, taxes, penalties, interest, escrow payments and/or any other amounts provided for hereunder, the city attorney may in addition to or in lieu of misdemeanor prosecution bring civil action in a court of competent jurisdiction to collect such amounts from the responsible party or parties.

(Ord. 588 § 1 (part), 1999; Ord. 425, 04/86; Ord. 411, 1985)

The eight separate tax categories are as follows:

A. Category A Business. Persons conducting the following businesses shall pay the tax imposed upon "Category A" businesses: private clubs.

B. 1.

Category B Permit Businesses. Persons conducting the following businesses shall pay the tax imposed upon "Category B" permit businesses: general contractors, contractors and sub-contractors engaged in the construction, repair, maintenance or servicing or appliance of any type, which require the issuance of a building or other permit listing the value of such business activity by the town. This category shall include, but not be limited to, the following:

artistic iron contractor

brick contractor

building contractor

cabinet maker

cement contractor

electrical contractor

engineering contractor

fence contractor

floor contractor

general contractor

grading contractor

heating contractor

house moving or wrecking contractor

landscape contractor

lighting contractor

masonry contractor

paving contractor

plumbing contractor

plumbing and heating contractor

swimming pool contractor

swimming pool excavation

roofing contractor

sewer and pipeline contractor

sheet metal contractor

sprinkler contractor

tree trimming and felling contractor

T.V.

B. 2.

Category B Nonpermit Businesses. Persons conducting the following businesses shall pay the tax imposed upon "Category B" nonpermit businesses: general contractors, contractors and subcontractors engaged in the construction, repair, maintenance or servicing of real property, improvements to real property, fixtures or appliances of any type, which do not require the issuance of a building or other permit by the town or which require the issuance of a permit which, however does not list the value of the business activity. This category shall include, but not be limited to, the following:

awning contractor

appliance service

artistic iron contractor

asbestos contractor

cabinet maker

drapery and carpet contractor

dry wallboard contractor

floor contractor

formica (or similar) contractor

gas or electric appliance installer

glazing contractor

heating contractor

house cleaning contractor

gardener

insulation and weatherstripping contractor

interior decorator

lathing contractor

lathe and plastering contractor

marble contractor

masonry contractor

overhead door contractor

painting contractor

pest control service

plastering contractor

plumbing contractor

plumbing and heating contractor

swimming pool service

refrigeration contractor

roofing contractor

rug and upholstery cleaning service

sash contractor

sewer and pipeline contractor

sheet metal contractor

shower door installation contractor

sprinkler contractor

tile contractor

tree trimming and felling contractor

T.V.

radio and hi-fi repair service

venetian blind or window shade contractor.

C. Category C Businesses. Persons conducting the following businesses shall pay the tax imposed upon "Category C" businesses: licensed professionals, agents, brokers and salespersons of any kind other than licensed real estate salespersons or brokers.

D. Category D Businesses. Persons conducting the following business shall pay the tax imposed upon "Category D" businesses: auctions, bankruptcy sales and temporary sales.

E. Category E Businesses. Persons conducting the following businesses shall pay the tax imposed upon "Category E" businesses: (1) licensed real estate brokerage firms and (2) individual licensed real estate brokers if not listed as included in the personnel of a licensed real estate brokerage firm which has paid the tax under this Category E.

F. Category F Businesses. Persons conducting the following businesses shall pay the tax imposed upon "Category F" businesses: delivery service to homes, laundry and/or dry cleaning delivery, taxicab service.

G. Category G Businesses. Persons conducting the following businesses shall pay the tax imposed upon "Category G" businesses: all businesses not specifically mentioned in this Section 5.04.340.

H. Category H Businesses. Effective upon passage of this Ordinance, persons conducting the following businesses shall pay the tax imposed upon "Category H" businesses: all title insurance companies with one or more offices in San Mateo County.

(Ord. 426, 1986; Ord. 411, 1985)

A. In addition to the administrative fee set forth in subsection B of this section, the amount of business tax due for each category for each tax year shall be as follows:

For each category except Category B permit, Category E and Category H Businesses:

Seventy-five cents per one hundred dollars (i.e., three-fourths of one percent) of gross receipts; provided, however, that any such category business whose total annual gross receipts do not exceed two hundred fifty thousand dollars may for convenience use the following table to calculate the gross receipts tax of such business rather than calculating such tax exactly. The amount of tax in each bracket represents three-fourths of one percent of the midpoint in the gross receipts in each bracket.

For Category B Permit Businesses:

Seventy-five cents per one hundred dollars (i.e. three-fourths of one percent) of gross receipts (payable at the time the permit is applied for as set forth in subsection G of Section 5.04.220).

For Category E Businesses:

The administrative fees set forth in subsection B of this section shall constitute the sole obligation of category E businesses under this chapter.

For Category H Businesses:

Thirty cents per one thousand dollars face value of each title insurance policy issued by such Category H business insuring the title of real property located in the town (to be a charge payable by the party requesting such title insurance and/or the party paying for such title insurance and to be remitted by the title insurance company to the town within five days after collection thereof by the title insurance company).

B. In addition to the tax set forth in subsection A of this section, each licensee except Category H licensees shall pay an administrative fee for each category license issued to him by the town in order to help defray the costs of issuing, maintaining and enforcing the license. Such administrative fee shall be paid each time such license is issued or renewed. Such administrative fees shall be as follows:

Category A license—$100 administrative fee

Category B permit license—$100 administrative fee

Category B nonpermit license—$100 administrative fee

Category C license—$100 administrative fee

Category D license—$100 administrative fee

Category E license:

1. For licensed real estate brokerage firms: one hundred dollars administrative fee for each office maintained by such firm plus ten dollars for each sales associate among the personnel of such firm;

2. For all others not included in subsection (1) of this category: one hundred dollars for each person conducting Category E business in the town.

Category F license—$100 administrative fee

Category G license—$100 administrative fee

C. Any licensee which pays sales tax which is returned in part to the town shall be allowed a credit against the business tax otherwise due, such credit to be equal to the amount of such sales tax returned to the town by law. (Currently of the six and one-half percent sales tax, five percent goes to the state, one-half percent goes to the Bay Area Rapid Transit District and one percent is returnable to municipalities). Any licensee claiming such credit against the business tax shall document the amount of such eligible sales tax by furnishing such records to the business tax collector as he shall deem necessary.

(Ord. 562 § 4, 1998; Ord. 521, 1993; Ord. 428, 1986; Ord. 426, 1986; Ord. 411, 1985)

The provisions of this chapter shall be construed and applied in a manner consistent with all state and federal laws and the state and federal constitutions.