Long Beach Municipal Code Div. IV Administration, Enforcement and Penalties

It shall be the duty of the Director of Financial Management, and he is hereby directed, to administer and enforce each and all of the provisions of this Chapter, and the Chief of Police shall render such assistance in the enforcement of this Chapter as may from time to time be required by the Director of Financial Management.

(Ord. C-6259 § 1 (part), 1986)

Each applicant for a business license shall file a written statement with the City upon prescribed forms indicating the type of business activity to be conducted, officers of the firm, and such further information as may be deemed necessary by the Director of Financial Management.

(Ord. C-6259 § 1 (part), 1986)

A. A separate license shall be obtained for each branch establishment or separate office or place for carrying on any business or pursuit within the City and the amount thereof, unless otherwise specified, shall be equal to the amount specified for carrying on the original business or pursuit.

B. Independent contractors licensed from multiple locations within the City shall only pay a business license tax for one (1) location in the amount specified for carrying on such business pursuit. Additional locations within the City, for the same independent contractor, shall be exempt from paying a business license tax.

C. This Section shall not be construed to require any existing business licensed at a fixed location within the City to obtain an additional license for conducting the same type of business at a different location as booth selling, provided that any such business subject to the provisions of Title 5 of this Code shall comply with all applicable requirements of that Title 5 and shall notify the Police Department of such booth selling.

(ORD-20-0003 § 1, 2020; Ord. C-7191 § 1, 1994: Ord. C-6259 § 1 (part), 1986)

Whenever a person engages at the same location in two (2) or more businesses which are taxed on the basis of the number of employees under different provisions of this Chapter, such person may, as an alternative to the normal method of calculating his license fees, elect to combine all such employees and pay a tax determined by applying to those employees the highest per employee tax rate of the activities taxed and, additionally, the sum of each flat rate tax increment applicable to each of the businesses engaged in at the location.

(Ord. C-6259 § 1 (part), 1986)

Upon a person's making application for the first license to be issued for a new established business, he shall furnish to the Director of Financial Management, for guidance in ascertaining the amount of license to be paid by the applicant, a written statement upon a form provided by the Director of Financial Management setting forth such information as may be therein required and as may be necessary to properly determine the amount of the license to be paid by the applicant.

If the amount of the license to be paid by the applicant is based upon the average number of persons employed or upon the gross receipts of his business, he shall estimate the average number of persons to be employed in his business, or the gross receipts of his business, as the case may be, for the period to be covered by the license to be issued. Such estimate, if accepted by the Director of Financial Management as a reasonable one, shall be used in determining the amount of license to be paid by the applicant; provided, however, the amount of the license 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 said Director with a statement, upon a form furnished by the Director, showing the exact average number of persons employed in such business, or the exact gross receipts of such business, as the case may be, during the period of such license, and the license for such period shall be finally ascertained and paid in the manner provided by this Chapter for the ascertaining and paying of renewal of licenses for other businesses, after deducting from the payment found to be due the amount paid at the time such first license was issued.

No license shall be issued to any such person for the same or any other business until such person shall have furnished to it the written statement and paid the license as hereinabove required.

All statements required to be filed under this Section shall include a declaration substantially as follows:

"I swear under penalty of perjury that the statements herein are true and correct."

(Ord. C-6259 § 1 (part), 1986)

A. Every person subject to a business license tax under this Chapter shall, before the license expires and becomes delinquent, file with the Director of Financial Management a written 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 Director to enable administration of the provisions of this Chapter, and shall pay at such time the amount of the tax computed thereon.

B. The written statement provided for herein shall be on a form prescribed by the Director of Financial Management and shall include a declaration substantially as follows:

"I swear under penalty of perjury that the statements herein are true and correct."

(Ord. C-6259 § 1 (part), 1986)

A. The Director shall refer such application to the appropriate departments of the City in order that it may be ascertained whether the business proposed to be conducted or the premises in which it is proposed to locate such business will comply with applicable fire, building safety, zoning, health and other laws and regulations.

B. The Director may issue a conditional license under this Chapter for the applicant to conduct business during the investigation period if: all necessary applications have been completed by the applicant, the business tax and application fees have been paid, no department has declared the building or structure "unsafe" as defined in Section 102 of the current edition of the California Uniform Building Code, and the business has not had an application denied pursuant to the provisions of this Chapter within the past year. A conditional license shall not be valid for a period longer than one hundred eighty (180) days from the date of application. During such period, based upon review by the appropriate departments of the City, the applicant may be rejected for failure to comply with applicable laws and regulations at any time. Within one hundred eighty (180) days, if no departments have rejected the applicant or requested an extension of the time to review same, the Director shall issue the license.

C. The Director, at his sole discretion, may issue a notice of nonoperation during the investigation period when a department determines the building or structure unsafe and corrections are required prior to the safe operation and continuation of the business. Following completion and City approval of any City mandated corrections, a conditional license or a business license may be issued.

(Ord. C-7849 § 1, 2003: Ord. C-6259 § 1 (part), 1986)

In the event that a particular department of the City rejects an application for the reason that such business or the location at which it is proposed to conduct the same will not so comply with applicable laws and ordinances, the Director Of Financial Management shall not issue such license.

(Ord. C-6259 § 1 (part), 1986)

Any applicant for a business license whose application for such license has been denied by the Director of Financial Management may, within ten (10) days after such denial, appeal therefrom to the City Council by filing with the Director a notice of such appeal setting forth the decision and the grounds upon which he deems himself aggrieved thereby. The applicant shall pay to the Director at the time of filing the notice of appeal the fee set by resolution of the City Council for appeals hereunder. The Director shall thereupon make a written report to the City Council reflecting such determination denying the business license. The City Council at its next regular meeting following the filing of said appeal, or within ten (10) days following the filing thereof, shall set said appeal for hearing to be held not less than ten (10) days nor more than thirty (30) days thereafter and such hearing may for good cause be continued by the order of the City Council. Upon the hearing of the appeal the City Council may overrule or modify the decision of the Director appealed from and enter any such order or orders as are in harmony with this Title and such disposition of the appeal shall be final.

(Ord. C-6325 § 8, 1986: Ord. C-6259 § 1 (part), 1986)

A. Every new license tax shall be due and payable on or prior to the date of commencement of the transacting or carrying on of the business, trade, profession, calling or occupation for which a tax is imposed under the provisions of this Chapter.

B. Each license tax for an existing business involving the rental of residential property shall be due and payable on July 1 of each year, and shall be deemed delinquent thirty (30) days after the due date if not paid.

C. Each license tax for an existing business involving vehicles requiring decals shall be due and payable on January 1 of each year, and shall be deemed delinquent thirty (30) days after the due date if not paid.

D. Each license tax for an existing business involving vending machine operations is due and payable on July 1 of each year, and shall be deemed delinquent thirty (30) days after the due date if not so paid.

E. Each license tax for an existing business involving all other business activities shall be due and payable on the anniversary date of issuance of each year, and shall be deemed delinquent thirty (30) days after the due date if not so paid.

(Ord. C-7783 § 15, 2002; Ord. C-6259 § 1 (part), 1986)

All license taxes provided for by this Chapter shall be due and payable in advance and the applicant who fails to pay for the license within thirty (30) days after the due date shall pay in addition to the taxes a penalty for nonpayment in the sum equal to twenty-five percent (25%) of the total amount. Additional penalties will be assessed in the following manner: ten percent (10%) shall be added on the first day of each calendar month following the month of the imposition of the twenty-five percent (25%) penalty if the tax remains unpaid; up to a maximum of one hundred percent (100%) of the tax payable on the due date. License taxes remitted correctly addressed and with postage prepaid, and placed in the United States mail, will not be delinquent if the postmark date stamped on the envelope is on or prior to the due date. The postmark shall govern the determination of whether the tax is delinquent.

Notwithstanding the above, any delinquent license taxes owed by businesses which have commenced operations after January 1, 1996, paid to the City between January 1, 1997, and March 31, 1997, shall not be subject to the above-described penalties.

(Ord. C-7438 § 4, 1996: Ord. C-6259 § 1 (part), 1986)

Licenses issued pursuant to this Chapter are not transferable or assignable by the licensee to any other person, nor shall any tax paid by any person under the provisions of this Chapter be applied in whole or in part to the payment of any tax due or to become due from any other person, except that a license issued for rental of apartment houses and commercial and industrial spaces attaches to the property and is transferable to the new owner if a sale occurs prior to the expiration of the license.

(Ord. C-6259 § 1 (part), 1986)

No person holding a license required by this Chapter shall permit any unlicensed independent contractor to use the license, the licensed premises or the licensee's name for the purpose of evading payment of any license tax or of evading any other provision of this Code.

(Ord. C-6259 § 1 (part), 1986)

Every person licensed under this Chapter who changes the location of his place of business shall, prior to engaging in such business at the new location, have the City endorse the new location on the license therefor, and a fee for the actual cost of making such endorsement, as determined by the director of financial management, shall be paid by such person at the time of endorsement.

(Ord. C-6259 § 1 (part), 1986)

Whenever any person shall, by use of signs, circulars, cards or any other advertising media, including the use of telephone solicitation, hold himself out as, or represent that he is, doing business in the City, then these facts may be used as evidence that such person is doing business in the City.

(Ord. C-6259 § 1 (part), 1986)

A. Every person having a license issued under this Title shall prominently display such license. If such business is operated from a vehicle or a boat, the vehicle or boat shall have affixed thereon an identifying decal issued by the City. In the event of loss of such license or decal, the City shall charge a replacement fee in an amount established by the Director of Financial Management to cover the actual cost to the City of replacement.

B. No person shall reproduce, duplicate, copy or alter an original business license for the purpose of circumventing the prominent display requirement of this Section or giving a false or misleading impression that any duplication of an original City business license is valid and that the appropriate business license tax therefor has been paid.

C. No person who has a valid license issued by the City in his possession or under his control shall fail to exhibit the same on demand.

D. If the business license is for a business involving amusement or vending machines, each machine shall bear, in a conspicuous and visible place, a valid license decal issued by the City.

(Ord. C-6325 § 9, 1986: Ord. C-6259 § 1 (part), 1986)

Whenever it is necessary to examine any books and records of any person doing business in the City to ascertain the amount of any license fee or taxes or the amount of gross revenue generated by the primary and secondary business activities being conducted, the City shall have the power and authority to examine such necessary books and records during normal business hours.

(Ord. C-6259 § 1 (part), 1986)

A. In no case shall any mistake in the amount collected for any license tax or any penalty prevent the collection of the amount actually due for such license.

B. In case a mistake is made in the issuance of any license in the classification under which such license was issued, then a new license shall be issued in the proper classification in lieu thereof, under the date of the original license, and the licensee shall pay any additional amount required by such a change.

(Ord. C-6259 § 1 (part), 1986)

Application for refund made pursuant to this Chapter must be filed with the City by the person entitled to the refund within one (1) year after payment of the money to the City. Refunds are authorized to be made payable only to the person or persons who paid the money and are subject to the conditions for payment of refunds in Section 3.48.040 of this Title.

(ORD-06-0011 § 6, 2006: Ord. C-7849 § 2, 2003: Ord. C-6259 § 1 (part), 1986)

Any application for refund must be made by the person entitled to the money within one (1) year after payment of the money to the City. No refund shall be made of any moneys paid for the issuance or renewal of any license required by this Chapter, except where, for any reason:

A. An application for a license is denied; or

B. An application is withdrawn prior to the issuance of the license; or

C. There is paid for any license an amount in excess of that required in this Chapter; or

D. The tax for any license required in this Chapter is paid more than once for the same term; or

E. Following the issuance of a license, it is determined that such license was not required by the terms of this Chapter for the business or occupation of the licensee; or

F. Following the issuance of a license, it is determined that such licensee has not engaged in, nor held himself or herself out as being engaged in, such business or occupation at any time after the effective date of the license.

The amount of the refund shall be the full amount of the license tax paid less an amount determined by the Director of Financial Management which shall cover the cost of investigation and issuance of the license; or

G. Legislation is enacted by the City, State or federal government making the business or occupation covered by the license unlawful. The amount of the refund shall be computed on the unearned portion of the license tax dating from the time the business or occupation covered by the license actually ceased to be conducted or engaged in; or

H. The business or occupation covered by the license actually ceases to be conducted or engaged in because the person in whose name the license is issued dies, sustains an incapacitating illness or injury, or enters permanent active duty in the Armed Forces of the United States. The amount of the refund shall be computed on the unearned portion of the license fee dating from the time the business or occupation covered by the license actually ceased to be conducted or engaged in; or

I. If the person entitled to the refund is an individual and such person becomes deceased, the refund may be made to such person or persons entitled to receive the money.

(Ord. C-6325 § 10, 1986: Ord. C-6259 § 1 (part), 1986)

A. Whenever any person fails to comply with any provision of this Chapter pertaining to business license taxes or any rule or regulation adopted pursuant thereto or with any other provision or requirement of law, including, but not limited to, this Municipal Code and any grounds that would warrant the denial of initial issuance of a license hereunder, the Director of Financial Management, upon hearing, after giving such person ten (10) days' notice in writing specifying the time and place of hearing and requiring him or her to show cause why his or her license should not be revoked, may revoke or suspend any one (1) or more licenses held by such person. The notice shall be served in the same manner as notices of assessment are served under Section 3.80.444. The Director shall not issue a new license after the revocation of a license unless he or she is satisfied that the registrant will thereafter comply with the business license tax provisions of this Chapter and the rules and regulations adopted thereunder, and until the Director collects a fee, the amount of which shall be determined by Director in an amount to recover the actual costs of processing, in addition to any other taxes that may be required under the provisions of this Chapter.

B. Any person who engages in any business after the business license issued therefor has been suspended or revoked, and before such suspended license has been reinstated or a new license issued, shall be guilty of a misdemeanor.

(Ord. C-6259 § 1 (part), 1986)

Any licensee whose license is revoked under this Chapter shall have the right, within ten (10) days after the date of mailing of the written notice of revocation, to file a written appeal to the City Council. Such appeal shall set forth the specific ground or grounds on which it is based. The City Council shall hold a hearing on the appeal within thirty (30) days after its receipt by the City, or at a time thereafter agreed upon, and shall cause the appellant to be given at least ten (10) days' written notice of such hearing. At the hearing, the appellant or its authorized representative shall have the right to present evidence and a written or oral argument, or both, in support of its appeal. The determination of the City Council on the appeal shall be final.

(Ord. C-6259 § 1 (part), 1986)

No person having an administrative duty pursuant to the provisions of this Chapter shall make known in any manner whatever the business affairs, operations, or information obtained by an investigation of the records and equipment of any person required to obtain a business license, or pay a business tax, or any other person visited or examined in the discharge of the official duty of the Director of Financial Management, or the amount or the source of income, profits, losses, or expenditures, or any particular thereof, set forth in any statement or application, or amended statement or application, or copy of either, or in any book containing any abstract or particulars therein to be seen or examined by any person; provided, however, the provisions of this Section shall not be construed to prevent:

A. Disclosures to, or the examination of records and equipment by, another City official, employee, or agent for the collection of taxes for the sole purpose of administering or enforcing the provisions of this Chapter or collecting the business taxes imposed by the provisions of this Chapter;

B. The disclosure of information to, or the examination of records by, federal or State officials of another City or County, or City and County, if the reciprocal arrangement exists, or to a grand jury or court of law upon a subpoena;

C. The disclosure of information and the results of examinations of records of particular taxpayers, or relating to particular taxpayers, to a court of law for proceedings brought to determine the existence of the amount of any business tax liability of such particular taxpayers of the City;

D. The disclosure, after the filing of a written request to the effect, to the taxpayer himself, or to his successors, receivers, trustees, executors, administrators, assignees, or guarantors if directly interested, of information as to items included in the measure of any paid business tax, any unpaid business tax, or any amount of business tax required to be collected, including interest and penalties; further provided, however, that the Director of Financial Management or his designee may refuse to make any disclosure referred to in this Subsection when, in his opinion, the public interest would suffer thereby;

E. The disclosure of the names and business addresses of persons to whom business licenses have been issued and the general type and nature of their businesses;

F. The disclosure, by way of public meeting or otherwise, of such information as may be necessary to the Council in order to permit the Council to be fully advised as to the facts when a taxpayer files a claim for the refund of business taxes, or submits an offer of compromise with regard to a claim asserted against him by the City for business taxes, or when acting upon any other matter; and

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

(Ord. C-6259 § 1 (part), 1986)

The Director of Financial Management is hereby delegated the authority, and may, from time to time, promulgate such administrative rules and regulations as may be necessary and proper to effectuate the purposes of this Chapter and to facilitate the Director's responsibility to administer and enforce its regulations. The scope of the Director's delegated authority shall include, but not be limited to, rules and regulations relating to apportionment of the business license tax, computation of the average number of employees for one (1) or more classifications of businesses and defining the nature of a change of business ownership and its impact on any existing business license under this Chapter.

(Ord. C-6259 § 1 (part), 1986)

A. The determination of the tax applicable to a business or activity not expressly set forth herein shall be that business tax applicable to the business or activity expressly set forth herein which, in the opinion of the Director of Financial Management, is most nearly comparable. The Director may, in addition, require compliance with any other provision of this Code regulating the imposition of business tax of the particular business or activity determined to be most nearly comparable.

B. In any case, where a licensee or applicant for a license believes that he is placed in the wrong business or class of businesses, he may apply to the Director for a change in his classification. Such application may be made before, at, or within three (3) months after payment of the prescribed business tax. The applicant shall, by affidavit and supporting testimony, show such information as the Director may deem necessary in order to determine the proper classification. The Director may conduct his own investigation and shall have the administrative duty of determining the proper classification. Such determination by the Director shall be deemed final.

(Ord. C-6259 § 1 (part), 1986)

In the case of an audit or investigation by the City, the Director may make a deficiency determination or assessment for license taxes not paid or remitted by a person required to pay or remit, as evidenced by information provided by such person or other persons to the Director, or based upon a reasonable estimate of the Director if complete evidence is not provided by the person required to pay or remit the tax. Such reasonable estimate shall be entitled to a rebuttable presumption of correctness. In the absence of fraud or other intentional misconduct, an audit period of review shall not exceed a period of three (3) years immediately preceding the date of receipt of a written notice (by such person) from the Director, or his or her authorized representative, notifying commencement of an audit. In the absence of fraud or other intentional misconduct, an investigation period for tax compliance shall not exceed a period of three (3) years immediately preceding the date the investigator contacted the taxpayer, or his or her authorized representative, notifying commencement of an investigation. The applicable statute of limitations shall commence from the date of receipt from the City of a written finalized deficiency determination or assessment by the Director or his or her authorized representative, which shall be issued within a reasonable time after all necessary information has been provided by the person required to pay or remit the tax.

(Ord. C-7849 § 3, 2003)

The amount of any license tax, penalties and interest imposed by the provisions of this Chapter shall be deemed a debt to the City, and any person carrying on any business without first having procured a license under this Chapter from the City to do so, or having an appropriately renewed and valid license hereunder, shall be liable to an action in the name of the City in any court of competent jurisdiction for the amount of the license tax, and penalties if any, imposed on such business.

(Ord. C-6259 § 1 (part), 1986)

If the Director of Financial Management is not satisfied that any statement filed as required under the provisions of this Chapter is correct, or that the amount of tax is correctly computed, he may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement, or upon the basis of any information in his possession or that may come into his possession. One (1) or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Sections 3.80.443 through 3.80.445.

(Ord. C-6259 § 1 (part), 1986)

A. Under any of the following circumstances, the Director of Financial Management may make and give notice of an assessment of the amount of tax owed by a person under this Chapter:

1. If the person has not filed any statement or return required under the provisions of this Chapter;

2. If the person has not paid any tax due under the provisions of this Chapter;

3. If the person has not, after demand by the Director, filed a corrected statement or return, or furnished to the Director adequate substantiation of the information contained in a statement or return already filed, or paid any additional amount of tax due under the provisions of this Chapter;

4. If the Director determines that the nonpayment of any business tax due under this Chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this Chapter.

B. The notice of assessment shall separately set forth the amount of any tax known by the Director to be due or estimated by the Director, after full consideration of all information within his 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.

(Ord. C-6259 § 1 (part), 1986)

The notice of assessment shall be served upon the person either by handing it to him 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 license issued to him or to such other address as he shall register with the Director of Financial Management for the purpose of receiving notices provided under this Chapter; or, should the person have no license issued to him and should he have no address registered with the Director for such purpose, then to such person's last known address. For the purposes of this Section, a service by mail is completed at the time of deposit in the United States mail.

(Ord. C-6259 § 1 (part), 1986)

Within ten (10) days after the date of service the person may apply in writing to the Director of Financial Management for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the license tax assessed by the Director shall become final and conclusive. Within thirty (30) days of the receipt of any such application for hearing, the Director shall cause the matter to be set for hearing before the Director or a billing officer designated by the Director not later than thirty (30) days after the date of application, unless a later date is agreed to by the Director and the person requesting the hearing. Notice of such hearing shall be given by the Director to the person requesting such hearing not later than five (5) days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment, as made by the Director, should not be confirmed and fixed as a license tax. After such hearing the Director shall determine and reassess the proper tax to be charged and shall forthwith give written notice thereof to the licensee in the manner prescribed in Section 3.80.444 for giving notice of assessment.

(Ord. C-6259 § 1 (part), 1986)

Any person violating any of the provisions of this Chapter or any regulation or rule passed in accordance herewith, or knowingly or intentionally misrepresenting to any officer or employee of this City any material fact in procuring the license herein provided for, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment for a period of not more than six (6) months, or by both such fine and imprisonment.

(Ord. C-6259 § 1 (part), 1986)

The conviction and punishment of any person for failure to pay the required license tax shall not excuse or exempt such person from any civil action for the license tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this Chapter or of any State law requiring the payment of all license taxes.

(Ord. C-6259 § 1 (part), 1986)

A. Except for the taxes imposed by Sections 3.80.221 and 3.80.246, and except for any tax measured by gross receipts in Section 3.80.253, each tax, including each of its components, imposed in Division II of this Chapter, shall be automatically adjusted on July 1, 2002, and on July 1 of each year thereafter, upward or downward, equivalent to the most recent change in the annual average of the Consumer Price Index as published by the United States Department of Labor for the Los Angeles-Riverside-Orange County area.

B. For purposes of calculating the annual inflation/deflation factor under this Section, the base year shall be that year ending with December 31, 2000, unless otherwise specified in a tax rate section of Division II of this Chapter. Rates shall next be adjusted on July 1, 2002, and annually thereafter, based on the annually calculated change from the base year. The July 1, 2002, adjustment shall be for the change in the average CPI for the year ending December 31, 2001.

(Ord. C-7783 § 16, 2002: Ord. C-6986 § 3, 1992: Ord. C-6837 § 13, 1990: Ord. C-6259 § 1 (part), 1986)