Isleton Municipal Code Ch. 3.24 Business Operation Tax

Footnotes:

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Editor's note— Ord. No. 2013-03, adopted June 26, 2013, amended the Code by repealing former ch. 3.24, §§ 3.24.010—3.24.470, and adding a new ch. 3.24. Former ch. 3.24 pertained to similar subject matter, and derived from Ord. No. 333.

It shall be unlawful for any person, either for himself or for any other person, to commence, transact, engage in or carry on any business, trade, profession, calling, occupation or gainful activity in the city without having paid the applicable business operation tax and procured a valid business operations tax certificate. Compliance with such requirements shall not be construed to be a condition precedent to engaging in any business or occupation within the city where the imposition of such a condition precedent would be contrary to law.

(Ord. No. 2013-03, 6-26-2013)

For the purpose of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section, unless otherwise specifically provided:

A. Administrator shall mean the city clerk or his/her designee.

B. Business shall mean any business, commercial enterprise, trade, calling, vocation, profession, or any means of livelihood whether or not carried on for gain or profit, and includes the offering of real property for rental by the owner of such property.

C. City shall mean the City of Isleton, a municipal corporation, in the State of California.

D. City treasurer shall mean the city treasurer of the City of Isleton or his/her designee.

E. Engaged in business, carrying on a business, or transacting business, herein used interchangeably, shall mean commencing, conducting, operating, managing, engaging in or carrying on of a business by any person, whether done as owner or by means of an officer, agent, manager, employee, servant, or lessee of any of them, whether operating from a fixed location in the city or coming into the city from an outside location to engage in said activities.

F. Gross receipts shall have the same meaning as said term is defined in California Revenue and Taxation Code 6012 et seq. as the same now reads or is hereafter amended.

G. Person shall include all domestic and foreign corporations; associations; syndicates; joint stock corporations, partnerships of every kind; clubs, Massachusetts business or common law trusts; societies, and individuals, transacting and carrying on any business in the city, other than strictly as a salaried employee.

H. Certificate or business operations tax certificate shall mean the receipt given by the city treasurer which indicated that the tax imposed by this chapter has been paid.

(Ord. No. 2013-03, 6-26-2013)

A. General. Business operation taxes imposed by this chapter do not apply to a person transacting and carrying on a business exempted by the constitution or statute of the United States or the State of California from the payment of the tax prescribed.

Any person claiming an exemption under subsections B or C of this section shall file a sworn statement with the administrator stating the facts upon which exemption is claimed. In the absence of such statement substantiation the claim, the person is liable for the payment of the taxes imposed by this chapter.

Upon a proper showing contained in the sworn statement, the administrator shall issue certificate to a person claiming exemption under subsections B or C without payment to the city of the tax required by this chapter.

The administrator, after giving notice and a reasonable opportunity for hearing to a taxpayer, may revoke a certificate granted under this section upon information that the business is not entitled to the exemption as provided.

B. Charitable and non profit organizations. Except as otherwise provided in this chapter, the following organizations and activities are exempt from payment of the business operations tax:

1. Business conducted by a charitable, non-profit or eleemosynary corporation, association or organization of the net proceeds of said business are used exclusively by such corporation, association or organization for the purpose which would qualify as a charitable deduction under § 17214 of the Revenue and Taxation Code of the States of California, if said net proceeds were received as a gift by said organization.

2. The conduct of entertainment, concert, exhibition or lecture on scientific, historical, literary, religion or moral subjects, whenever the receipts are for a religious, educational or charitable purpose.

3. The conduct of entertainment, dance, concert, exhibition or lecture by a religious, chartable, fraternal, educational, amateur theatrical group, military, state, county or municipal organization or association, whenever the receipts are for the purposes and objects for which the organization or association is formed, and from which profit is not derived, directly or on directly, by any individual.

C. Disabled veterans. A disabled veteran holding an honorable discharge from a branch of military service of the United States is exempt from the payment of the business operations tax prescribed by this chapter, if such person is physically unable to earn a livelihood by other means.

D. Other requirements. The exemption from payment of business operations tax granted by this section does not exempt the person conducting the business from complying with any and all requirements of the city ordinances.

(Ord. No. 2013-03, 6-26-2013)

The taxes prescribed by this chapter constitute taxes for revenue purposes only, and are not regulatory permit fees. Such taxes shall be in addition to any regulatory permit fee imposed by this chapter adopted by the city. Nothing in this chapter shall be construed as giving city officers any regulatory power over persons engaged in business.

(Ord. No. 2013-03, 6-26-2013)

The payment of a tax required by the provisions of this chapter and its acceptance by the city, and the issuance of a certificate to any person, shall not entitle the holder thereof to carry on any business, unless he has complied with all other applicable laws of the city, or to carry on any business in any building or on any premises designated in the 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 the city ordinances. The payment of such tax and its acceptance by the city shall in no way relieve the tax payer from complying with the applicable laws of the city, nor shall it be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner; nor as requiring the payment of a tax for the doing of any act which would constitute an unlawful burden upon or an unlawful interference with interstate or foreign commerce, or which would be in violation of the Constitution of the United States or of the State of California.

(Ord. No. 2013-03, 6-26-2013)

A. Contents of certificate. All business operations tax certificates shall be prepared and issued by the city clerk upon payment to the city treasurer of the sum required by the provisions of this chapter to be paid therefore. Each certificate so issued shall contain the following:

1. The name of the person to whom it is issued and the name under which the business is to be operated.

2. The type of business.

3. The address of the location from which the business is conducted, or where no fixed place of business is maintained within the city, the mailing address of the person to whom the certificate has been issued. A post office box shall not be sufficient address for this purpose. The mailing address so appearing shall be the address to which all notices required or authorized in this chapter shall be sent, unless the business obtaining the certificate shall request in writing that another address be used for such purpose.

4. A receipt for the amount of tax paid.

5. The retail sales tax certificate number issued by the board of equalization, if any.

6. The date of expiration of the certificate.

B. Validity of certificate. A certificate shall be valid only after the administrators stamp or endorsement had been affixed thereto indication payment had been received of the amount of the tax and penalties thereon, if any. A certificate, however, which had been paid for by check or bank draft which was subsequently dishonored by the bank upon which it was drawn shall not be a valid certificate even though the administrators stamp or endorsement appears therein, and the person operating the business for which the certificate was issued shall be deemed to be operating without a valid certificate and shall be subject to the penalties provided in this chapter for so operating.

C. Separate certificate required. A separate certificate must be obtained for each branch establishment or separate place of business in which the trade, calling, profession or occupation is carried on, and each certificate shall authorize the person obtaining it to carry on, pursue or conduct only that trade, calling, profession or occupation described in such certificate and only at the location or place of business indicated thereon. Where more than one kind of business is conducted at any one location, a separate certificate shall be obtained for each kind of business. Any interpretation hereunder shall be made by the administrator.

D. Transferability.

1. A certificate issued under the provisions of this chapter shall be valid only for the person to whom it is issued to conduct the business specified thereon and at the location for which it was issued and for the period of time indicated on the endorsed thereon in the case of a change of business ownership or location and after payment of a transfer processing fee established by resolution of the city council.

2. No person shall use or attempt to use any certificate which has been issued to another person or for a different type of business or for another location or which has expired.

3. Any person holding a certificate shall notify the administrator if he/she ceases to operate the business or purposes to move it to another location.

E. Posting and keeping certificate.

1. Every person engaged in a business subject to tax under the provisions of this chapter, which business is conducted at or from a fixed place of business in the city shall keep the certificate issued therefore posted in a conspicuous place upon the premises at or from which the business is conducted at all times during business hours.

2. Every person engaged in a business subject to tax under the provisions of this chapter, but not operating from a fixed place of business in the city, shall keep the certificate issued therefore upon his person at all times while engaged in the business for which it was issued.

3. It shall be an infraction for any person to fail to post and keep posted or fail to carry upon his person, as the case may be, any certificate or certificates required by the provisions of this chapter to be posted or carried upon his person, or to giveaway, sell or transfer any certificate or permit issued to any other person, or to permit its use by another person.

4. The administrator shall issue a duplicate business tax certificate to replace any certificate issued under this chapter which has been lost or destroyed, on payment of a fee established by resolution of the city council.

F. Records to be kept.

1. Records. All persons subject to the provisions of this title shall keep complete records of business activities and transaction and any other record and data relevant to establishing and verifying tax liability hereunder; and shall retain all such records and date for examination by the administrator for a period of at least three years. No person required to keep records under this section shall refuse to allow authorized representatives of the administrator to examine said records at reasonable times and places for the purpose of administering and enforcing this chapter.

2. Confidentiality. The administrator and his/her deputies or authorized representatives shall not make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any person required to pay a tax under the provisions of this chapter. Nothing in this section shall be construed to prevent the disclosure to or examination of records by another city agent for the sole purpose of administering or enforcing any of the provisions of this chapter or auditing of accounts of the administrator; federal or state officials; a grand jury or court of law, upon subpoena, or in a proceeding to determine the existence or amount of any tax liability of the particular taxpayer to the city. The disclosure of names and addresses of persons to whom certificates have been issued and the general type of their business, together with general statistics regarding business taxes collected or business done in the city, shall not be prohibited hereunder.

(Ord. No. 2013-03, 6-26-2013)

A. Application for first certificate. A person making application for the first certificate to be issued hereunder, or for a newly established business or for a new ownership of a previously established business shall furnish to the administrator a sworn statement, on a form provided by the administrator, setting forth the following information:

1. The exact nature or kind of business for which a certificate is requested;

2. The place where such business is to be carried on, and if the same is not to be carried on at any permanent place of business, the place of residence of the owner.

3. The fictitious name or names under which the business will be operated, if any, and the name of the person to whom the certificate is issued.

4. Such further information as the administrator may deem necessary to enable him/her to issue the certificate applied for.

B. Determination of type of business; exemption. The determination of the type of business or business a taxpayer is engaged in or about to engage in and the eligibility for an exemption or exemption shall be an administrative function of the administrator.

If the taxpayer is aggrieved by the administrators decisions, he/she shall have the right of appeal to the city council by filing a written notice of appeal within 15 days of the administrators decision.

C. Renewal of certificate. Every person subject to a business tax shall, upon the time of renewal of the business tax certificate, file with the administrator a sworn statement setting forth the then applicable factor or factors that constitute the measure of the tax, together with such other information as shall be required by the administrator to administer the provisions of this chapter and shall pay at such time the amount of the tax computed thereon.

D. Notice not required. The administrator is not required to send a renewal, delinquency or other notice or bill to any person subject to the provisions of this chapter and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.

E. Certificate withheld.

1. No certificate for any ensuing, current or unexpired period shall knowingly be issued to any person who at the time of the making of the application thereof is indebted to the city for any unpaid business operation tax.

2. Checks returned. If any person shall have upon one or more occasions made payment of the tax with a check which was returned by the bank upon which it was drawn unpaid, the administrator may thereafter require that such person make payment of the business operations tax by cash payment or by money order or certified check.

(Ord. No. 2013-03, 6-26-2013)

A. How paid. Taxes shall be paid in lawful money of the United States.

B. When payable. Except as hereinafter provided, all business operations taxes shall be payable annually, in advance, on October 1 of each year. The business operation tax for business commenced after March 31 of any year shall be equal to one-half of the annual tax and shall also be paid in advance.

C. Rate of tax. Except as provided in section 3.24.090, the business operation tax for each business shall be $80.00 base fee per year plus 0.1 percent of gross revenue per year.

D. Delinquency. The business operation tax shall become delinquent, if not paid within 30 days of the day on which the tax is due. Any tax which is paid after delinquency shall be subject to a penalty of 25 percent of the amount of the tax, plus interest at the rate of one and one-half percent per month for each month or portion of a month from the date of delinquency to the date of payment.

E. Refunds. No tax or portion of a tax shall be refunded or pro-rated as a result of the cessation of the business, for whatever reason, during the periods for which the tax was paid.

If a business subject to the tax shall file a written claim for refund within one year of the payment of the tax and shall establish to the satisfaction of the administrator that the tax has been overpaid, the administrator shall refund the amount so overpaid.

(Ord. No. 2013-03, 6-26-2013)

A. Exceptions established. The rate of tax established by subsection 3.24.080.C shall not apply to the business described in this section.

1. Out of town businesses with no physical location within the city shall only pay tax on gross receipts for business done within the city.

2. Public utilities that pay a franchise fee under a franchise agreement within the city.

3. Agriculture unless conducting retail activities within the city.

B. Constitutional apportionment. None of the business operations taxes provided for in this chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the State of California.

In any case where a taxpayer believes the tax places an undue burden upon interstate commerce or to be violative of such constitutional clauses, he/she may apply to the administrator for an adjustment of the tax. Such application may be made before, at, or within six months after payment of the prescribed business operations tax. The applicant shall, by sworn statement and supporting testimony, show the method of business and the gross volume of business within and outside of the City and such other information as the administrator may deem necessary in order to determine the extent, if any, of such undue burden or violation. The administrator shall them conduct an investigation, and after having first obtained the written approval of the city attorney, shall fix as the tax for the applicant, an amount that is reasonable and nondiscriminatory. If the tax determined by the administrator exceeds the tax paid, a refund of the amount over and above the tax so fixed shall be made. 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 business of like nature, so long as the amount assessed does not exceed the tax as prescribed by this chapter.

C. Laundry equipment. The business operations tax imposed upon the business of renting, leasing or operating laundry equipment pursuant to Business and Professions Code 16002.2 shall be based exclusively upon the gross receipts derived from such equipment within the city at a rate to be established by resolution of the city council.

D. Coin-operated vending machines. The business operations tax imposed upon the business of renting, leasing or operating coin-operated vending machines pursuant to Business and Professions Code 16002.5 shall be based exclusively upon the gross receipts derived from such machines within the city at a rate to be established by resolution of the city council.

E. Commercial traveler. Pursuant to Business and Professions Code 16002, no business operations tax shall be imposed upon any commercial traveler whose business is limited to goods, ware and merchandise sold or dealt at wholesale in California.

F. Real estate auctioneer. Pursuant to business and Professions Code 16002.1 no business operations tax shall be imposed upon a real estate auctioneer whose business is limited exclusively to auctioning real estate and does not maintain a permanent place of business with the city.

G. Festivals, etc. Operators of festivals, street fairs or similar events which utilize city streets and/or city property shall pay a business operations tax in an amount established by the city council at the time the event is approved. Said tax shall be in addition to the amount the operator is required to pay the city to cover the cost of police protection and traffic control; fire inspections and protection; waste collection and removal and other expenses incurred by the city, including administration and overhead. Each vendor who does not hold a valid business operators tax certificate and who is authorized by the operator to sell food, beverages, goods, wares, merchandise or services during said event, but not to exceed three days. Such tax shall be paid in advance to the operator, who shall remit such taxes to the city on the next business day. All vendors shall be subject to such reasonable rules and regulations as established by the operator and the city council and all ordinances adopted by the city.

H. Independent contractors. Independent contractors who operate under the license of the holder of a business operations tax certificate, such as real estate and insurance agents, and independent contractors who are licensed by the state and share space in a business operated by a barber or hair dresser who is the holder of a business operations tax certificate shall pay a tax in the amount of $50.00 per year payable in advance.

I. Delinquency. The provisions of section 3.24.080 dealing with the time of payment and penalties and interest on delinquency shall apply to the businesses covered by this section.

(Ord. No. 2013-03, 6-26-2013)

A. Sales tax collected and paid to the state.

B. Amount paid by a general contractor licensed by the city to a sub-contractor licensed by the city. Proof is required to include the name, address and Isleton business license number of the sub-contractor. Also, the amount paid to each sub-contractor.

C. Amount of gross receipts earned in another jurisdiction on which a business operations tax is paid to that jurisdiction. Copy of a business license and amount of apportionment to each jurisdiction.

D. Amount paid to another jurisdiction for business license.

E. Trustees' collections for others.

(Ord. No. 2013-03, 6-26-2013)

A. Enforcement by the city officers. It shall be the duty of the administrator, his/her deputies, agents and employees, and they and each of them are hereby directed, to enforce each and all of the provisions of this chapter, and the county sheriff department shall render such assistance in the enforcement hereof as may from time to time be required by the city council. Each department of the city which issues permits or entitlement of use shall require the production of a valid unexpired certificate prior to the production of a valid unexpired certificate prior to the issuance of such a permit.

In the exercise of the duties imposed upon the administrator hereunder, and acting through his/her deputies, or duty authorized assistants, the administrator 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.

B. Violation. Every person violating any provision of this chapter or knowingly or intentionally misrepresenting to any officer or employee of this city a material fact in procuring the certificate herein provided for shall be deemed guilty of a separate offense for each day or portion thereof, during which such violation continues and shall be punishable thereof as provided in this section. Any person violating the provisions of this chapter is guilty of an infraction punishable as provided in Government Code § 36900(b).

The conviction and punishment of any person for engaging in any business without a valid certificate shall not relieve such person from paying the taxes, penalties and interest due and unpaid at the time of such conviction, nor shall the payment of any tax or penalty prevent a criminal prosecutions for the violation of any of the provisions of this chapter. All remedies prescribed in this chapter shall be cumulative and 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 chapter.

Any sum required to be paid under the provisions of this chapter shall be deemed a debt owed to the city, and any person who engages in any business without first obtaining and paying for a valid certificate as required by this chapter shall be liable to the city, in action and in the name of the city in any court of competent jurisdiction for recovery of any such sum.

C. Rules and regulation; apportionment. The administrator may make such rules and regulations not inconsistent with the provisions of this chapter as may be necessary or desirable to supplement or clarify such provisions or aid in their enforcement.

When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the business tax imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done within the city, the administrator may make such rules and regulations for the apportionment of the tax as are necessary or desirable to overcome the constitutional objections.

Such rules and regulations shall be known as "business operations tax rules and regulations" shall be placed in written form and numbered consecutively, and shall be approved by the city attorney before becoming effective. A copy of the "business operations tax rules and regulations" shall be filed with the city clerk.

The administrator is authorized to waive part or all of any penalty for the late payment upon making a finding that the imposition of the penalty would cause an undue hardship or that the failure to make timely payment was due to excusable neglect or other good cause.

D. Determination of tax by administrator. If any person subject to the tax imposed by this chapter fails to pay the tax, the administrator shall proceed in such manner as he/she may deem best to obtain facts and information on which to base his/her estimate of the tax due.

As soon as the administrator shall procure such facts and information as he/she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any person who has failed or refused to make such report and remittance, he/she shall proceed to determine and assess against such person the tax, interest and penalties provided for by the chapter.

E. Recomputation of tax by administrator. If the administrator has reasonable cause to believe the return or returns of the amount of tax required to be paid to the city by any person under this chapter is erroneous, he/she may compute and determine the amount required to be paid upon the basis of any information with his/her possession. One or more deficiency determinations may be made of the amount due for one or more periods.

F. Notice of administrator determination. The administrator shall give to the person written notice of any determinations made pursuant to this chapter. This notice may be served personally or by postage prepaid mail addressed to the person at the address as it appears in the records of the administrator. In case of service by mail of any notice required under this chapter, the service is complete at the time of deposit in the United States mail.

G. Hearing determination. Any person receiving a notice from the administrator may, within 15 days after service or mailing of such notice, make application in writing to the city council for a hearing to review the amounts determined and assessed under this chapter. If such, application is not made within the time prescribed, the tax, interest, and penalties if any, determined by the administrator shall become final and conclusive and immediately due. The council may hear the matter itself or may refer the matter to an impartial hearing officer. The decision by the city council to the hearing officer shall be final and conclusive and shall be served upon the appellant. Any amount determined shall be due and payable upon the service of notice.

(Ord. No. 2013-03, 6-26-2013)

The adoption of this chapter shall not relieve any person from any obligation or liability for payment of a license tax arising under ordinances previously enacted and such obligation or liability shall continue.

(Ord. No. 2013-03, 6-26-2013)