Lodi Municipal Code Art. I General Provisions

The purpose of the provisions of this chapter is solely to provide for necessary regulation of lawful business being conducted within the city, in order to protect the public health, safety, and welfare of the people of the city. Business license registration fees charged under the provisions of this chapter shall be revenue-neutral in that they may not exceed the reasonable costs of providing the regulatory services included in the business license registration program.

(Ord. No. 2023, § 1, 3-6-2024)

Every person conducting or carrying on business as defined in this chapter anywhere in the city shall register by obtaining a business license registration certificate. A separate business license shall be obtained for each physical location (including branch establishments) or for each business operated on a mobile basis.

(Ord. No. 2023, § 1, 3-6-2024)

The following persons and organizations are exempt from the provisions of this Chapter:

A. Minors Under the Age of Eighteen. Businesses owned and conducted by minors under the age of eighteen years shall be exempt from the business license registration provisions of this chapter where all of the following conditions exist and legal documentation is provided to support that:

1. All persons engaged in the operation of the business are under the age of eighteen years; and

2. All persons engaged in the operation of the business have a bona fide ownership interest in the business.

B. Charitable, Religious and Nonprofit Organizations.

1. Organization Activities. The provisions of this chapter shall not be deemed or construed to require the payment of a business license registration fee to conduct, manage or carry on any business, occupation or activity of any institution or organization recognized by the state of California or Internal Revenue Service of the United States as a "Domestic Non-Profit Organization" to conduct business which is wholly for the benefit of charitable, religious or nonprofit purposes and from which a profit is not derived, either directly or indirectly, by any person.

2. Nonexempt Activities. The exemption provisions of this section shall not be construed to extend to any person, business, corporation or organization receiving a fee, wage, stipend, salary, remuneration, compensation or pay for performance of any business, occupation or activity related to exempt organization activities. Any such person, business corporation or organization shall be subject to the business license registration provisions of this chapter and shall obtain a business license registration certificate prior to any business, occupation or activity being undertaken in the city.

C. Conflicts with Federal and State Laws or Contractual Agreements. The provisions of this chapter shall not be construed to require a person to obtain a business license registration certificate prior to doing business within the city if such requirement conflicts with the applicable statutes, laws or constitution of the United States or the state of California or other contractual obligations or franchise agreements. The finance director may develop administrative guidelines concerning exemptions, apportionment and any other matters which the finance director determines as necessary for the lawful and effective implementation of this chapter.

D. Certain Home Occupations.

1. Every person commencing, transacting and carrying on in the city any business in the individual's home in a residential zone, not as a nonconforming use, whose annual gross receipts from such business is three thousand dollars or less shall not be required to pay a business registration fee

2. Persons who by reason of age or infirmity are physically unable to earn a livelihood through ordinary means of labor or business, whose annual gross receipts from such business is five thousand dollars or less shall not be required to pay a business registration fee.

E. Public Utilities. This chapter shall not be deemed or constructed to require payment of a business license registration fee by any public utility which pays to the city a franchise tax; provided that a license fee shall be required for any retail sales conducted in the city by such public utility. Where a business license registration fee is imposed on a public utility, it shall not differ from the rate imposed on mercantile, manufacturing and other business corporations.

F. Disabled Veterans. Veterans of the armed forces of the United States qualified under the provisions of the Business and Professions Code Section 16001 shall not be required to pay a business license registration fee.

G. Residential Rental Units. Persons renting four or less residential units within the city shall not be required to pay a business license registration fee.

H. Street Fairs and Special Events. Sponsors of street fairs or special events may request the city council to waive the business license registration fee in part or whole for participants of a street fair or special event when the waiver is for a limited period of time and a participant does not otherwise conduct business within the city either directly or indirectly by positing, advertising or other means as described in Section 3.01.450; and, when the city council determines a blanket waiver of the business license registration fee for a street fair or special event is in the best interest of the city.

(Ord. No. 2023, § 1, 3-6-2024)

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

"Business" means and includes professions, trades, vocations, rentals, leases, enterprises, establishments and occupations and all and every kind of calling, any of which is conducted for the purpose of earning in whole, or in part, a profit or livelihood, whether or not a profit or a livelihood actually is earned thereby, whether paid in money, goods, labor or otherwise, and whether or not the business has a fixed place of business in the city.

"City" means the city of Lodi.

"Finance director" means the individual designated by the city manager to collect business license registration fees pursuant to the provisions of this chapter.

"Person" means and include all domestic and foreign corporations, associations, syndicates, joint-stock corporations, partnerships of every kind, clubs, California trust, business and other common law trusts, societies and individuals transacting and carrying on any business in the City, other than an employee.

"Sworn statement" means an affidavit sworn to before a person authorized to take oaths or a declaration or certification made under the penalty of perjury.

(Ord. No. 2023, § 1, 3-6-2024)

For purposes of this chapter, the broad classifications used are defined as follows:

A. Administrative headquarters: any business operation where the principal business transacted consists of providing administrative or management related services such as, but not limited to, recordkeeping, data processing, research, advertising, public relations, personnel administration, legal and corporate headquarters services, to other locations where the operations of the same business are conducted which lead more directly to the production of gross receipts.

B. Contractors: any person who is licensed as a contractor by the state of California and who undertakes to or offers to undertake to or purports to have the capacity to undertake to or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith, is defined as a contractor. The term "contractor" includes subcontractor and specialty contractor.

C. Manufacturers: any person conducting, managing or carrying on a business consisting mainly of manufacturing, packing or processing any goods, wares, merchandise or produce.

D. Professions: any person, group, association, partnership, firm or corporation engaged in a profession or vocation licensed by the state, related to a licensed profession or vocation, and/or requiring a period of specialized training such as, but not limited to, physicians, dentists, attorneys and accountants.

E. Public utilities: any person, including the city, engaged in the business of providing utility services to the general public or to private businesses including such services as electrical, gas, sanitary and garbage, water, sewer, cable television and telephone.

F. Recreation and entertainment: any person engaged in the business of providing directly recreation, entertainment or amusement services.

G. Rental of residential property: any person engaged in the business of renting or letting a building or structure to a tenant for purposes of dwelling, sleeping or lodging (i.e., apartment, duplex, condominium or other residential property rental excluding hotels and motels).

H. Rental of nonresidential property: any person engaged in the business of renting or letting a building or structure to a tenant for purposes of conducting business (i.e., commercial retail space, office buildings, warehouses or other nonresidential property use). Space occupied by the owner is exempt.

I. Retail: any person conducting, managing or carrying on the business consisting mainly of selling at retail any goods.

J. Services: any business providing services, repairs or improvements to or on real and personal property; renting or leasing personal property to businesses or persons; involving the operation of hotel or motel; providing services to persons such as, but not limited to, laundries, cleaning and dyeing, shoe repair, barber and beauty shops, photographic studios and transportation.

K. Wholesale: any person conducting, managing or carrying on the business consisting mainly of selling at wholesale any goods.

L. Miscellaneous: any person engaged in a business not specifically described by other provisions of this chapter and not otherwise exempt.

(Ord. No. 2023, § 1, 3-6-2024)

The provisions of this chapter are severable. Should any portion of this chapter be deemed invalid by a court of competent jurisdiction, the remaining provisions of this chapter shall remain in full force and effect.

(Ord. No. 2023, § 1, 3-6-2024)