Kingsburg Municipal Code Ch. 5.04 Business Licenses Generally

A. The provisions of this chapter are for raising revenue for municipal purposes and is not intended for regulation.

B. The scope and construction of this chapter is subject to the exemptions and regulations defined herein.

(Amended during 5-08 supplement; prior code § 37-1000)

For the purpose of this chapter certain words and terms as used therein are defined as follows:

"Affidavit" includes a declaration made under penalty of perjury.

"Auctioneer, itinerant" means an auctioneer who is not the owner or who has no lease on a place of business in the city where he/she conducts his/her auction, or an auctioneer who has a lease on a place of business in the city for the conduct of his/her auction for a period of less than three months.

"Bankrupt sale" includes a sale for the benefit of creditors either directly or indirectly, or a sale advertised as a bankrupt sale or sale for the benefit of creditors.

"Business" includes professions, trades, and occupations and all and every kind of calling whether or not carried on for profit.

"City" means the city of Kingsburg, unless another city is indicated by the context.

"Close out sale" means a sale advertised as a close out sale where the person conducting said sale has not conducted such business at a fixed place of business in the city for at least one year.

"Contractor" means a person defined as a contractor by Section 7026 of the Business and Professions Code of the State of California, or as a contractor by the provisions of Article 2, Chapter 9, Division 3, of the Business and Professions Code of the State of California.

"Financing" means the business of loaning money, advancing credit, or loaning credit, whether security of any kind is taken for such loan or advance or not, or purchasing or discounting of any obligation of money due or to become due, or any evidence of any obligation of money due or to become due, whether such obligation is secured, guaranteed, or not; but does not include or apply to the conduct of a banking business under the laws of the state or of the United States, or to the business of a pawn broker or a business of a real estate broker when otherwise subject to other provisions of this chapter.

"Fire sale" means the sale of goods or merchandise salvaged, or claimed to have been salvaged, from a fire, wreck or other calamity, or a sale of goods or merchandise advertised as a fire or wreck sale.

"Fixed place of business" means a permanent store, office or other place where business is legally and regularly transacted from month to month in such manner as business of that nature is generally or customarily carried on and conducted and when the circumstances show an intention to become an established, fixed and continuous part of the regular and legitimate business life of the city. In all other cases such facts must be shown by the proof of a bona fide lease or rental agreement to the premises where such business is to be conducted, such lease or rental agreement to be for a minimum period of not less than six months.

"Gross receipts" means the total amount of the sale price of all sales of materials, goods, wares, or merchandise, and/or the total amount of commission or other remuneration charged or received for the performance of any act or service, of whatever nature it may be, for which charge is made or credit is allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares, or merchandise. Included in "gross receipts" shall be receipts, cash, credits, and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, receipts of agents, brokers, or trustees received as commissions or fees earned or charges of any nature made or compensation of any nature received for the performance of any services as agent, broker, or trustee, or profits received when such agent, broker, or trustee participates as a principal in any transaction. The following shall be excluded from gross receipts:

A. Cash discounts allowed and taken on sales;

B. Value of property accepted as part of the purchase price for subsequent resale;

C. Any fees collected which are separately stated and collected for and paid to a governmental agency;

D. Such part of the sale price of property returned by the purchaser upon rescission of the contract of sale as is refunded either in cash or by credit;

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

F. Collection for others where the business is acting as an agent or trustee to the extent that payments are made to those for whom collected;

G. Sales of real estate by an agent or sales of commodities by a commission broker, except that portion of the sale which represents commissions of other income to the agent or broker;

H. The amount of gross receipts which has been the measure of a license fee paid to any other city.

"Itinerant vendor" or "itinerant merchant" means any person, whether principal or agent, who engages in a temporary or transient business in the city, selling or offering to sell, goods, wares, or merchandise or any other thing of value, with the intention of conducting such business for a period of less than six months and who for the purposes of such business hires, leases or occupies any room, doorway, vacant lot, building or other place, for the exhibition for sale of goods, wares, merchandise or other thing of value. If any such place, occupied or used for such business, is rented or leased for a period of less than six months, such fact shall be presumptive evidence that the business carried on there is a transient business; and any person so engaged shall not be relieved from the provisions of this chapter or from payment of the license fees herein provided for such business by reason of any temporary association with any local dealer, trader, merchant or auctioneer.

"Peddler" means any person who, at any place in the city other than a fixed place of business, sells or takes orders or offers to sell or takes orders, sells and makes immediate delivery or offers for sale and immediate delivery or for future delivery not for resale, any goods, wares, merchandise or other thing or service to be performed.

"Person" means and includes 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 as an employee.

"Public utility" means any person furnishing the public with communication, water, light, gas, heat, power or other public utility or service subject to regulation by the Public Utilities Commission of the state.

"Retail business" means every business conducted for the purpose of selling or offering for sale any goods, wares, or merchandise other than as part of a "wholesale business," as elsewhere defined herein.

"Solicitor" means a person taking orders for any photographs, goods, wares, or merchandise or taking pictures and not having a regular place of business in the city or who is not an agent or representative of a person having a regularly established place of business in the city.

"Wholesaler" means every person conducting business exclusively for the purpose of selling or offering for sale goods, wares, or merchandise in wholesale lots to retailers for resale at retail.

"Wreck sale" means the same as "fire sale."

"Year" means a calendar year, beginning on the first day of January.

(Amended during 5-08 supplement; prior code § 37-4000)

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

B. This section shall not be construed to require any person to obtain a license prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state.

C. Persons not required to obtain a license prior to doing business within the city because of conflict with applicable statutes of the United States or of the state shall, notwithstanding, be liable for payment of the fee imposed by this chapter.

D. The business license issued pursuant to this chapter constitutes a receipt for the license fee paid and shall have no other legal effect.

E. Persons required to pay a license fee for transacting or carrying on any business under this chapter shall not be relieved from the payment of any fee or charge in connection with any license to do business as may be required by any other chapter of this code or other ordinance of this city, and shall remain subject to the regulatory provisions of such other chapter or ordinance.

(Amended during 5-08 supplement; prior code § 37-1001)

A. Every person required to have a license under the provisions of this chapter shall make application of the same to the city clerk, and upon payment of the prescribed license fee the city clerk shall issue to such person a license which shall contain: (1) the name of the person to whom the license is issued and the date of issuance; (2) kind or kinds of the business licensed; (3) the place where such business is to be transacted and carried on, if any; (4) the date of the expiration of such license; and (5) such other information as may be necessary or convenient for the enforcement of the provisions of this chapter.

(Amended during 5-08 supplement; prior code § 37-1007)

A. All licenses granted under the provisions of this chapter, or any Section hereof, or any amendment hereto, are granted and accepted by all parties receiving said licenses, with the express understanding that the city council may revoke the same at any time if any of the conditions of said license or any of the terms of this chapter have been violated, or if the said license was obtained by fraudulent representations; provided, however, that before revoking any license the holder of such license shall be served with a written notice of intent to revoke in the manner provided in Section 1.12.010 of this code, which notice shall notify said holder to appear before the city council at a meeting thereof to be held no earlier than five days after the day of service of such notice, at which time said holder may show cause, if any he/she may have, why said license should not be revoked. Upon the failure of such holder of a license to appear before the city council, or, if, after such hearing the city council finds there is good and sufficient cause for revoking such license, the said license shall be revoked and the findings of the council thereupon shall be conclusive. It shall be unlawful for the holder of such license to continue the business, trade or occupation for which such license was issued after the same has been revoked, and upon ratification of the revocation of any license, no part of the money paid for such revoked license shall be returned, but such license fee shall be forfeited to the city and the license returned to the city clerk.

(Amended during 5-08 supplement; prior code § 37-1017)

Any person aggrieved by any decision of the city clerk with respect to the issuance or refusal to issue a license may appeal to the city council by filing a notice of appeal with the business license clerk of the city. The business license clerk shall thereupon fix a time and place for hearing such appeal. The business license clerk shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office at Kingsburg, California, postage prepaid, addressed to such person at his/her last known address. The city council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provisions of this chapter. Such notice of appeal by any person so aggrieved shall be made within thirty (30) days from the date of issuance of such license, or within thirty (30) days from the date of refusal to issue such license.

(Amended during 5-08 supplement; prior code § 37-1012)

A. The business license clerk, his/her deputies or designee, and all police officers of the city are hereby appointed inspectors of the licenses and are authorized to examine all places of business and persons liable to pay any license fee, and to see that such licenses are taken out, and shall have the power: (1) to make arrest for violation of any of the provisions of this chapter; (2) to enter free of charge, at any time, any place of business for which a license is required by this chapter and to demand the exhibition of such license for the current term by any person engaged or employed in the transaction of such business, and if such person shall then and there fail to exhibit such license, such person shall be liable to the penalty provided for violation of this chapter.

(Amended during 5-08 supplement; prior code § 37-1018)

In addition to all other powers conferred upon him/her, the business license clerk shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding thirty (30) days, and in such case to waive any penalty that would otherwise have accrued; and shall have the further power, with the consent of the council, to compromise any claims as to amount of license fee due.

(Amended during 5-08 supplement; prior code § 37-1013)

A duplicate license may be issued by the city clerk to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing a statement of such fact, and at the time of filing such statement paying to the city clerk a duplicate license fee established by resolution.

(Amended during 5-08 supplement; prior code § 37-1015)

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

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

B. Any licensee transacting and carrying on business, but not operating at a fixed place of business in the city, shall keep the license upon his/her person at all times while transacting and carrying on such business, or in the case where a license fee is imposed in connection with individual vehicles, such license shall be kept in such vehicle.

(Amended during 5-08 supplement; prior code § 37-1016)

A. Upon a person making application and payment of a first time application fee as established by resolution for the first license to be issued hereunder, or for a newly established business, in all cases where the amount of license fee to be paid is measured by gross receipts, such person shall furnish to the city clerk, for his/her guidance in ascertaining the amount of license fee to be paid by the applicant, a written statement upon a form provided by the city clerk under penalty of perjury setting forth such information as may be required therein, and as may be necessary to determine the amount of the license fee to be paid by the applicant.

B. If the amount of the license to be paid by the applicant is measured by gross receipts, he/she shall estimate the gross receipts for the period to be covered by the license to be issued. Such estimate, if accepted by the city clerk as reasonable, shall be used in determining the amount of license fee to be paid by the applicant; provided, however, the amount of the license fee so determined shall be tentative only, and such person shall, within thirty (30) days after the expiration of the period for which such license was issued, furnish the city clerk with a written statement under penalty of perjury upon a form furnished by the city clerk, showing the gross receipts during the period of such license, and the license fee for such period shall be finally ascertained and paid in the manner provided by this chapter for the ascertaining and paying of renewal license fees for other businesses, after deducting from the amount found to be due, the amount paid at the time such first license was issued.

C. The city clerk shall not issue to any such person another license for the same or any other business until such person shall have furnished to him/her the written statement provided in subsection (B) above and paid the license fee as herein required.

(Amended during 5-08 supplement; prior code § 37-1008)

Every license as provided herein shall become null and void at the expiration of the term for which it is issued. When a license for revenue purposes has been issued to any business by the city and the fee paid therefor under the provisions of this chapter heretofore enacted, and the term of such license has not expired, then the license fee prescribed for said business by this chapter shall not be payable until the expiration of the term of such unexpired license.

(Amended during 5-08 supplement; prior code § 37-1005)

In all cases the applicant for the renewal of a license shall submit to the city clerk for his/her guidance in ascertaining the amount of the license fee to be paid by the applicant a written statement under penalty of perjury upon a form to be provided by the city clerk setting forth such information concerning the applicant's business during the preceding year as may be required by the said city clerk to enable him/her to ascertain the amount of the license fee to be paid by said applicant pursuant to the provisions of this chapter.

(Amended during 5-08 supplement; prior code § 37-1009)

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

(Amended during 5-08 supplement; prior code § 37-1014)

A. Each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license.

B. A separate license must be obtained for each branch establishment or separate location of a business, provided that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments.

C. Where a person conducts several types of business under identical ownership, business name, and management at a single location, he/she may elect to conduct all transactions under a single license for that business so transacted by him/her which has the highest classification and fee rate; but if he/she does not so elect, he/she shall obtain a separate license for each separate type of business conducted by him/her at such location, in which case he/she shall segregate and report separately the gross receipts from each type of business, in those instances where a business fee for such type of business is determined by gross receipts.

D. Where a person conducts both retail and wholesale transactions in a particular business, he/she may elect to conduct all such transactions under the appropriate retail license and at retail fee rates; but if he/she does not so elect, he/she shall obtain separate licenses for the retail and wholesale portions of his/her business, in which case he/she shall segregate and report separately the gross receipts from retail and wholesale transactions.

(Amended during 5-08 supplement; prior code § 37-1002)

All business license fees are due and payable on the first day of January of each year and shall be delinquent on the first day of April of each year.

(Amended during 5-08 supplement; Ord. 463 (part), 1987: Ord. 428 § 2, 1984: prior code § 37-1003)

A. The amount of any license fee imposed by this chapter and any and all penalties for non-payment thereof as herein provided shall be deemed a debt to the city, and any person commencing or conducting any business in the city for which a license is required by this chapter without having a license hereunder so to do, shall be liable to an action in the name of said city in any court of competent jurisdiction for the recovery of the amount of the license fee imposed by this chapter for such business, together with all penalties then due thereon as in this chapter provided, and for the additional sum equal to the actual attorney fees and legal costs to be included and assessed in any cause of action and any judgment recovered in such action.

B. All license fees imposed by this chapter shall be paid in advance at the office of the city clerk.

(Amended during 5-08 supplement; prior code § 37-1006)

All business licenses fees which are not paid prior to the delinquent date shall have a fifteen percent (15%) penalty added. An additional fifteen percent (15%) penalty shall be added on the last day of each succeeding month until the fee is paid, penalty not to exceed ninety percent (90%) of the license fee due.

(Amended during 5-08 supplement; Ord. 463 (part), 1987: prior code § 37-1004)

The provisions of this chapter shall not be deemed or construed to require the payment of a license fee to conduct, manage, or carry on any business, occupation, or activity from any institution or organization 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 individual, nor shall any license fee be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious, or moral subjects within the city whenever 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 or charitable purpose; nor shall any license fee be required for the conducting of any entertainment, dance, concert, exhibition, or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association whenever 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 individual; provided, however, that nothing in this section shall be deemed to exempt any such organization or association from complying with any of the provisions of this code or any other ordinance of the city requiring a permit to conduct, manage, or carry on any profession, trade, calling, occupation or activity.

(Amended during 5-08 supplement; prior code § 37-3001)

No license fee payable hereunder shall be payable by any person who has received an honorable discharge or release from active duty in one of the United States armed services, and who is physically unable to obtain a livelihood by manual labor, who is a voter of this state, in connection with the distribution of circulars, or the hawking, peddling, or vending of any goods, wares or merchandise owned by him, except spirituous, malt, vinous, or other intoxicating liquor.

(Amended during 5-08 supplement; prior code § 37-3002)

Any public utility, possessing a franchise granted by the city and making payments under said franchise to the city, shall not be subject to the provisions of this chapter.

(Prior code § 37-3004)

A. None of the license fees provided for by this chapter shall be so applied so as to occasion an undue burden upon interstate commerce.

B. In any case where a license fee is believed by a licensee or applicant for license to place an undue burden upon interstate commerce, he/she may file with the city clerk a petition for an adjustment of the fee so that it shall not be discriminatory or unreasonable as to such interstate commerce.

C. Such petition shall be filed at, or within six months after payment of the prescribed license fee. The petitioner shall, by affidavit and supporting testimony, show his/her method of doing business and the gross volume or estimated gross volume of his/her business and such other information as the city clerk may deem necessary in order to determine the extent, if any, of such undue burden on such interstate commerce.

D. The city clerk shall conduct an investigation, and, after having first obtained the written approval of the city attorney, shall fix as the license fee for the petitioner an amount that is reasonable and non-discriminatory, or if the license fee has already been paid, shall order a refund of the amount over and above the license fee so fixed.

E. Within ten (10) days after his/her decision, the city clerk shall give such petitioner notice thereof and shall file a copy of such decision with the city council.

F. The petitioner may appeal such decision, according to the procedure provided for appeals, by filing notice of appeal with the city clerk within six months from the service of such notice of such decision upon him.

(Amended during 5-08 supplement; prior code § 37-3003)

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

(Amended during 5-08 supplement; prior code § 37-3000)

A. Any person claiming an exemption pursuant to this article shall file a verified statement with the city clerk stating the facts upon which exemption is claimed.

B. The city clerk shall, upon a proper showing contained in the verified statement, issue a license to such person without payment to the city of the license fee required by this chapter.

C. The city clerk shall file a report of his/her decision with the city council; and if his/her decision is adverse, shall within ten (10) days thereafter give the claimant notice of his/her decision.

D. The city council may at any time conduct a hearing on and consider whether the licensee has ceased to be entitled to the exemption provided in this article by reason of change of circumstances, or whether such licensee was not entitled to the exemption because of facts not stated in the claim for exemption, and for such purpose shall fix a time and place for hearing such matter. Notice of hearing shall be given, and said hearing shall be conducted and said matter determined substantially in the manner provided in the case of appeals. The decision of the council in such case shall be immediately effective.

E. The provisions of Section 5.04.060 relating to review of decisions of the city clerk shall also apply to exemptions.

(Amended during 5-08 supplement; prior code § 37-3005)

A. If any person fails to file any required statement within the time prescribed, or, if after demand therefor made by the city clerk, he/she fails to file a corrected statement, the city clerk may determine the amount of license fee due by such person by means of such information as he/she may be able to obtain.

B. If such determination is made, the city clerk shall give notice of the amount so assessed by serving it personally, or by depositing it in the United States Post Office at Kingsburg, California, postage prepaid, addressed to the person so assessed at his/her last known address. Such person may, within fifteen (15) days after the mailing or serving of such notice, make application in writing to the city clerk for a hearing on the amount of the license fee. If such application is made, the city clerk shall cause the matter to be set for hearing no less than fifteen (15) days or more than thirty (30) days thereafter before the city council. The city clerk shall give at least ten (10) days' notice to such person of the time and place of the hearing in the manner prescribed above for serving notices of assessment. The city council shall consider all evidence produced, and shall make findings thereon, which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed above for serving notices of assessment.

(Amended during 5-08 supplement; prior code § 37-1011)

A. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the items therein contained shall be subject to audit and verification by the city clerk, his/her deputies or authorized employees of the city, who are hereby authorized to examine, audit and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee due.

B. All licensees, applicants for licenses and persons engaged in business in the city are hereby required to permit an examination of such books and records for the purposes aforesaid.

C. The information furnished or secured pursuant to this section, or Sections 5.04.110 and 5.04.130 of this chapter, shall be confidential. Any unauthorized disclosure or use of such information by any officer or employee of the city shall constitute a misdemeanor and such officer or employee shall be subject to the penalty provisions of this chapter, in addition to any other penalties provided by law.

(Amended during 5-08 supplement; prior code § 37-1010)