La Palma Municipal Code Art. I In General

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Daily means commences at the hour of 8:00 a.m. of any day and ends at 8:00 a.m. of the next day.

Gross payroll means the gross payroll of the preceding fiscal year, before deductions of any kind are made.

Gross receipts.

(1) The term "gross receipts" means, except as otherwise specifically provided, the gross receipts of the preceding fiscal year and includes the total of amounts actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in the term "gross receipts" shall be all receipts, cash, credits, redemption stamps, and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.

(2) Excluded from the term "gross receipts" shall be the following:

a. Cash discounts allowed and taken on sales;

b. Any tax which is measured by the sales price or the gross receipts from the sale or which is a stated sum per unit of such property sold, included in or added to the purchase price and collected from the consumer or purchaser;

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

d. Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected;

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

f. As to a real estate agency or broker, the sales price of real estate sold for the account of others except that portion which represents a commission or other income to the agency or broker including any portion thereof to be remitted to any salesperson or salespersons. As to a real estate agency or broker, the place of business of which or of whom is located outside the City, the commissions or other income included as gross receipts shall include only commissions or other income derived from the sale of real estate located within the City;

g. Credit allowed on property accepted as part of the purchase price and collected from the consumer or purchaser;

h. The difference between the balance owed and paid on a defaulted purchase or finance contract upon repossession by seller and the amount received from resale of the repossessed article by the repossessing seller;

i. Cash value of sales, trades or transactions between departments or units of the same business.

Pawnbroker means every person conducting, managing, or carrying on the business of loaning money, either for himself/ herself or for any other person, upon any personal property, personal security, or purchasing personal property and reselling or agreeing to resell such property to the vendor or other assignee at prices previously agreed upon. Nothing in this chapter shall be deemed to apply to the loaning of money on personal property or personal security by any bank authorized to do so under the laws of this State or of the United States.

State Law reference— Similar provision, Financial Code § 21000.

Person means all domestic and foreign corporations, firms, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, businesses, or common law trusts, societies, and individuals engaged in any business in the City.

Quarter annual means commences on any day of issuance of such license and ends three months after such day.

Sound vehicle means any motor vehicle having mounted thereon, or attached thereto, any sound amplifying equipment, including any machine or device for the amplification of the human voice, of music or of any other sound.

Special permit committee means the City Manager, Community Development Director and a representative of the Police Department comprise a committee to investigate, conduct hearings and issue special permits and consider the revocation or extension of special permits in accordance with the provisions of this chapter.

Unpaid license fee means not only all license fees owing for licenses therefrom issued, but also any sums or amount which the City would have received had a license been issued as required by this chapter.

(Code 1975, § 13-1; Ord. No. 99, § 1; Ord. No. 103, § 1; Ord. No. 79-3, § 8; Ord. No. 84-3, § 1; Ord. No. 84-10, § 1; Ord. No. 84-11, § 1; Ord. No. 2004-04)

License provisions of this chapter are enacted solely to raise money for municipal purposes and are not intended for regulation.

(Code 1975, § 13-2; Ord. No. 99, § 2)

No license issued under the provisions of this chapter shall be construed as authorizing the conduct of or continuance of any illegal or unlawful business.

(Code 1975, § 13-3; Ord. No. 99, § 3)

The amount of any license imposed by this chapter together with any penalties accruing thereon shall be deemed a debt due to the City from the person required to pay the same and an immediate cause of action shall accrue to the City for the collection thereof in any court of competent jurisdiction.

(Code 1975, § 13-4; Ord. No. 99, § 4)

Persons required to pay a license tax for transacting or carrying on any business under the provisions of this chapter shall not be relieved from the payment of any other applicable fee required under any other ordinances of the City and shall remain subject to the regulatory provisions of other ordinances of the City.

(Code 1975, § 13-5; Ord. No. 99, § 5; Ord. No. 84-10, § 2; Ord. No. 84-11, § 2)

(a) Except as set forth in subsections (b) and (c) of this section, no person shall, as principal, agent, clerk, employee, corporate officer, or otherwise, for himself/herself or for any other person, commence or carry on any business specified in this article in the City, without having first:

(1) Applied for and received a license certificate specifying such business;

(2) Paid for the required license tax;

(3) Obtained any permit required by this chapter or any other ordinance of the City;

(4) Paid any permit fee required; and

(5) Paid any investigation, processing, or inspection fee required.

(b) A license shall not be required of a separate business conducting live entertainment incidental to the operation of a separate food-serving establishment if all of the following conditions are satisfied:

(1) The location, occupancy, and use of the food-serving establishment is in compliance with a valid conditional use permit for which revocation proceedings have not been commenced, and the conditional use permit authorizes the live entertainment as an incidental use to the operation of the food-serving establishment;

(2) The food-serving establishment shall have a current, valid business license; and

(3) At least five business days prior to the performance of the live entertainment by the business, the food-serving establishment shall have furnished to the Business License Division the name, mailing address, telephone number, emergency contact telephone number and current driver's license number with regard to each person affiliated with the business scheduled to perform the live entertainment.

(c) A license shall not be required of a separate business whose business activity in the City is limited to providing entertainment or food concessionaire services for community events under contract with the City.

(Code 1975, § 13-6; Ord. No. 99, § 7; Ord. No. 84-10, § 3; Ord. No. 84-11, § 3; Ord. No. 2008-03, § 1)

(a) A separate license must be obtained for each branch establishment or location of the business engaged in and each license shall authorize the licensee to engage only in the business licensed thereby at the location or in the manner designated in such license; 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.

(b) Every person who operates any business, whether upon a cost rental or commission basis as a concession or upon rented floor space in or upon the premises of any person licensed under any provision of this chapter, shall be required to obtain a separate and independent license pursuant to the appropriate provisions of this chapter and shall be subject to all of the provisions of this chapter.

(Code 1975, § 13-7; Ord. No. 99, § 8)

In the event that any business conducted, managed or carried on in the City is organized as a partnership or joint venture, the scheduled license fee need be paid only by such partnership or joint venture and not by each individual partner or joint venture.

(Code 1975, § 13-8; Ord. No. 99, § 9)

Except as otherwise expressly provided in this chapter, any person conducting, managing or carrying on two or more businesses licensed by this chapter at the same location shall be required to apply for and obtain a license for only one of such businesses; provided, however, that if the amount of such license differs for such businesses, such person shall obtain a license for that business for which the largest fee or amount is provided by this chapter; provided, further, that in cases where the license tax upon two or more businesses is based upon the gross annual receipts of such businesses, then one license shall be issued on the basis of the combined total gross receipts of the several businesses.

(Code 1975, § 13-9; Ord. No. 99, § 10)

(a) 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 to municipal corporations of such taxes as are herein prescribed.

(b) 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 or from which profit is not derived, either directly or indirectly, by any individual, firm, or corporation; 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 on scientific, historical, literary, religious or moral subjects within the City are to be appropriated to any church or school or to any religious or benevolent 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, firm, or corporation; provided, that nothing in this section shall be deemed to exempt any such organization or association from complying with the provisions of any ordinance of the City requiring a permit from the City Council or any commission or officer to conduct, manage or carry on any profession, trade, calling or occupation.

(c) Any person claiming an exemption pursuant to this chapter shall file a verified statement with the Business License Division stating the facts upon which exemption is claimed.

(d) The Business License Division shall, upon a proper showing contained in the verified statement, issue a license to such person claiming exemption under this section without payment to the City of the license tax required by this chapter.

(e) The Business License Division may revoke any license granted pursuant to the provisions of this chapter upon information that the licensee is not entitled to the exemption as provided in this section.

(Code 1975, § 13-10; Ord. No. 99, § 11)

Every person required to have a license under the provisions of this chapter shall make application for the same to the Business License Division of the City upon forms prescribed by the City. The Business License Division shall issue to such person a license which shall contain:

(1) The name of the person to whom the license is issued.

(2) The business licensed.

(3) The place where such business is to be transacted and carried on.

(4) The date of the expiration of such license.

(5) Such other information as may be necessary for the enforcement of the provisions of this chapter.

(Code 1975, § 13-11; Ord. No. 99, § 12)

All annual license fees under the provisions of this chapter shall be due and payable in lawful money of the United States, in advance, on August 1 of each year. All business licenses issued after August 1 shall pay the full license fee in advance, with the exception of those issued in the final quarter shall be prorated to be one-quarter of the annual fee, with the minimum busines license fee being $10.00, excluding the processing fee, which shall not be prorated.

(Code 1975, § 13-12; Ord. No. 99, § 13; Ord. No. 114; Ord. No. 84-10, § 4; Ord. No. 84-11, § 4; Ord. No. 85-01, § 1; Ord. No. 85-10; Ord. No. 2004-04)

(a) At the time of renewal of any business license based on gross receipts, verification of the business's total gross receipts shall be presented to the City in the following manner:

(1) Those businesses that have business income totally comprised of retail sales shall present a copy of Board of Equalization Department of Business Taxes, State, Local and District Sales and Use Return for the previous year.

(2) Those businesses that have business income of other than retail sales shall present a copy of the business income tax return filed with the State Franchise Tax Board for the previous year.

(b) At the time of renewal of any business license based on gross payroll, each business shall present a copy of the federal withholding tax for the previous year.

(c) Such documents shall be subject to verification by the Business License Division, his or her deputies or authorized employees of the City who are hereby authorized to examine 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.

(d) The information furnished or secured pursuant to this section shall be confidential to the extent permitted by law. Any unlawful and unauthorized disclosure or use of such information by any officer or employee of the City shall constitute a misdemeanor.

(e) If any person fails to file such required documents at the time of renewal, the Director of Finance may determine the amount of license tax due from such person by means of an assessment as set forth in section 22-16.

(f) No license for any succeeding current or unexpired license term shall knowingly be issued to any person who, at the time of making application for any license, is indebted to the City for any unpaid license fee.

(Code 1975, § 13-13; Ord. No. 99, §§ 14—16; Ord. No. 84-10, § 5; Ord. No. 84-11, § 5; Ord. No. 85-01, § 2)

A duplicate license may be issued to replace any license previously issued hereunder which has been lost or destroyed, upon the licensee filing an affidavit attesting to such fact, and at the time of filing such affidavit, paying a duplicate license fee in an amount established by resolution of the City Council.

(Code 1975, § 13-14; Ord. No. 99, § 19; Ord. No. 84-10, § 6; Ord. No. 84-11, § 6)

(a) It shall be the duty of the Finance Director to enforce each and all of the provisions of this chapter, and the Police Chief shall render assistance in the enforcement of this chapter as may from time to time be required by the Finance Director or the City Council.

(b) The Finance Director, in the exercise of the duties imposed upon him or her under this chapter and acting through his or her deputies or duly authorized assistants, may examine or cause to be examined all places of business in the City to ascertain compliance with the provisions of this chapter.

(c) The Finance Director and each and all of his or her assistants and any police officer shall have the power and authority to enter, free of charge and at any reasonable time, any place of business required to be licensed herein and demand an exhibition of its license certificate. Any person possessing such a license certificate, who willfully fails to exhibit the same on demand, shall be guilty of a misdemeanor and subject to the penalties provided for by the provisions of this chapter.

(d) Each department of the City which issues permits for work to be done shall require the production of a valid unexpired business tax certificate prior to the issuance of such a permit.

(e) Final building inspection approvals shall be issued only when it is ascertained by the building division that all business license liability of the prime contractor and all subcontractors employed by the prime contractor has been fully satisfied.

(Code 1975, § 13-15; Ord. No. 99, § 18; Ord. No. 84-10, § 7; Ord. No. 84-11, § 7)

(a) Assessment.

(1) Whenever the Finance Director determines that any tax is due or may be due to the City under the provisions of this chapter, the Finance Director may make and give notice of an assessment of such tax.

(2) The notice of assessment shall separately set forth the amount of any tax known by the Finance Director to be due or estimated by the Finance Director, after full consideration of all information within his or her or her knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

(b) Service of assessment; right to hearing. The notice of assessment shall be served upon the person either by delivering it to him or her personally, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business appearing on the face of the business license certificate issued to the business or to such other address as he or she shall register with the Finance Director for the purpose of receiving notices provided under this chapter; should the person have no such certificate issued to him or her and should he or she have no address registered with the Finance Director for such purpose, then to such person's last known address. For the purpose of this section, a service by mail is complete at the time of deposit in the United States mail. Within 15 days after the date of service, the person addressed may either apply in writing to the Finance Director for a hearing on the assessment or may file a written request that such hearing be waived. If the person neither requests a hearing upon the assessment nor requests a waiver of hearing within the prescribed time, the amount of the assessment shall be final, and the amount thereof shall immediately be due and owing to the City, but penalties and interest as provided by this chapter shall continue to accrue until paid.

(c) Waiver of hearing. If the person requests that the hearing be waived, the Finance Director may either grant such request and notify the person thereof in writing or may, at the discretion of the Finance Director, deny the request and set the assessment for hearing at the time and in the manner prescribed by subsection (b) of this section. If the Finance Director grants the request for waiver of hearing, the administrative proceedings prescribed by this section shall be deemed exhausted and the City shall have the right to bring an action in any court of competent jurisdiction to collect the amount of the assessment, plus such penalties and interest as may have accrued thereon as provided by this chapter.

(d) Time of hearing; notice. If the person requests a hearing upon the assessment or if the Finance Director denies the request for waiver of hearing, the Finance Director shall cause the matter to be set for hearing before a board of review, as specified in subsection (e) of this section, not later than 90 days after the date of the application, or as the case may be, the date of the Finance Director's denial of the request for waiver of hearing. Notice of the time and place of the hearing shall be mailed to the person addressed not later than 15 days before the date set for hearing and, if the Finance Director desires said person to produce specific records at such hearing, such notice may designate the records required to be produced.

(e) Administrative hearing. The hearing prescribed by this section shall be before a board of review. The board of review shall be composed of the City Manager, Police Chief, and the Community Services Director, or the duly appointed representative of each. At the hearing the person assessed and the appropriate City representative may submit such evidence relevant to their respective positions. The board of review may require the presentation of additional evidence and may continue the hearing from time to time for the purpose of allowing the presentation of additional evidence.

(f) Decision of the board of review. Upon completion of the hearing, the board of review may:

(1) Affirm the assessment;

(2) Increase the assessment; or

(3) Decrease the assessment as the evidence may require;

but the amount of the assessment shall not be increased unless the claim for the increase is asserted on behalf of the City either before or during the hearing. Written notice of the decision of the board of review shall be given to the person assessed in the same form and in the same manner as the notice of assessment.

(g) Exception. Within 15 days from the date of service of the notice of decision of the board of review, the person assessed may file written exceptions to the decision of the board of review, but shall not be required to do so. If the person does not do so, the person shall nevertheless be deemed to have exhausted the administrative proceedings provided by this section. Upon filing of written exceptions, the board of review may either deny the exceptions or modify its decision, as it deems appropriate. If the board of review modifies its decision, it shall cause a written notice of decision as required by subsection (f) of this section, to be given to the person assessed at the time, and in the manner provided therein. If the board of review does not modify its decision within 30 days from the service of said exceptions, the exceptions shall be deemed denied.

(h) Effect of delay in administrative proceedings. Failure of the Finance Director to set any hearing within the time prescribed in this section and failure of the board of review to complete any procedure prescribed in this section within the period stated shall not affect the validity of any proceedings taken hereunder.

(i) Effect of payment of an assessment. Acceptance of any payment upon an assessment, the validity of which has not previously been passed upon by the board of review, shall not preclude the Finance Director from subsequently levying another assessment in any case where the original assessment does not truly reflect the correct tax liability.

(Code 1975, § 13-15.1; Ord. No. 84-10, § 8; Ord. No. 84-11, § 8)

(a) All licenses shall be paid for in lawful money of the United States of America.

(b) All daily license fees shall be paid in advance of each day.

(c) All annual licenses on a flat rate basis become due and payable on the anniversary date of the license.

(d) All annual licenses on a gross receipts basis become due on the anniversary date of the license.

(Code 1975, § 13-16; Ord. No. 2004-04)

Any license fee or portion thereof, or any penalty hereafter paid more than once or erroneously paid, may be refunded, provided that a claim therefor, duly verified by the person paying such fee or penalty, or his or her authorized representative, agent or attorney, shall have been filed with the Finance Director within 100 days after the date that the fee was erroneously paid. Such claims shall be processed in the same manner as other claims and demands.

(Code 1975, § 13-16.1; Ord. No. 84-10, § 9; Ord. No. 84-11, § 9)

(a) No license shall be issued to any person failing to present any land use permit required by chapter 44 of this Code or who has failed to comply with the provisions of any other regulation having to do with trade, business or occupation or for a use that is not in compliance with all City, State, and federal laws and regulations.

(b) A business license shall only be issued after approval of all departments possessing any regulatory powers over the business of the applicant, and after compliance with all applicable requirements of this Code.

(Code 1975, § 13-17; Ord. No. 99, § 20; Ord. No. 84-10, § 10; Ord. No. 84-11, § 10; Ord. No. 2008-05, § 1(13-17), 12-2-2008)

(a) 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 in an amount established by resolution of the City Council, have the license amended to authorize the transacting and carrying on of such business under such license at some other location to which the business is or is to be moved.

(b) No person shall loan his or her license to another.

(Code 1975, § 13-18; Ord. No. 99, §§ 21, 22; Ord. No. 84-10, § 11; Ord. No. 84-11, § 11)

In addition to all other power conferred upon him or her, the Finance Director shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 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 claim as to amount of license tax due.

(Code 1975, § 13-19; Ord. No. 99, § 23)

(a) Any person aggrieved by any decision of the Finance Director with respect to the issuance or refusal to issue a license pursuant to this chapter may appeal to the City Council by filing a notice of appeal with the City Clerk accompanied by an appeal processing fee in an amount established by resolution of the City Council. The City Council shall thereupon fix a time and place for hearing such appeal. The City 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 mail at La Palma, California, postage prepaid, addressed to such person at his or her last known address.

(b) If the decision of the City Council at such hearing is made in favor of the person initiating the appeal, such person, or his or her authorized representative, may file a duly verified claim for refund of the appeal processing fee with the Finance Director within 100 days of the council action. Such claims shall be processed in the same manner as other claims and demands.

(Code 1975, § 13-20; Ord. No. 99, § 24; Ord. No. 84-10, § 12; Ord. No. 84-11, § 12)

(a) Any licensee engaged in a business at a fixed place of business shall keep the license issued to him or her posted in a conspicuous place upon the premises where such business is conducted. Any licensee not operating from a fixed place of business shall keep the license issued to him or her upon his or her person at all times while engaged in the business within the City.

(b) No person shall exhibit a delinquent or revoked business license.

(Code 1975, § 13-21; Ord. No. 99, § 25; Ord. No. 84-10, § 13; Ord. No. 84-11, § 13)

(a) The licenses in this chapter shall be due and payable to the Business License Division and a penalty of ten percent shall be added to each license remaining unpaid 30 days after it becomes due. On the first day of each month thereafter that such fee remains unpaid, an additional penalty of ten percent of such unpaid fee shall be added; provided, that the maximum amount shall not exceed an amount equal to the amount of such fee and provided, that a penalty of ten percent will be added on the 16th day a fee is due for those unpaid license fees based on a gross receipts basis and an additional ten percent every 30 day thereafter.

(b) The conviction and imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business, nor shall the payment of any license tax prevent a criminal prosecution for the violation of any of the provisions of this chapter. All remedies prescribed hereunder 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.

(Code 1975, § 13-22; Ord. No. 99, §§ 26, 27)

In addition to the penalties imposed, any business that fails to remit the tax due shall pay interest at the rate of one percent per month, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(Code 1975, § 13-22.1; Ord. No. 84-10, § 14; Ord. No. 84-11, § 14)

Neither this chapter nor its superseding of any portion of any other ordinance of the City shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of this chapter, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed or deposited and all rights and obligations thereunto appertaining shall continue in full force and effect.

(Code 1975, § 13-23; Ord. No. 99, § 6)