Los Alamitos Municipal Code Art. IV Exemptions

Nothing contained in this chapter shall be deemed or construed as applying to any person managing or carrying on, or engaging in, any business or occupation exempt from taxation by municipal corporations under the laws and constitution of the state, and the laws and constitution of the United States.

(Ord. 354 § 24, 1977)

A. Affidavit. No business license required by the city for the practice, transaction or carrying on of any profession, trade, calling, occupation or business shall be presumed to apply to any part of such practice, transaction or carrying on of any profession, trade, calling, occupation or business which is a part of interstate commerce; or in which such practice, transaction or carrying on of any profession, trade, calling, occupation or business is conducted as an agency or department of the United States government for which such government has failed to make provision allowing states and municipalities to so tax. In order that necessary information may be available to determine whether it is entitled to exemption on grounds of being engaged in interstate commerce, such person shall file with the license collector an affidavit of exemption, upon a form to be furnished by the license collector, in which the following information shall be disclosed:

The name and location of the company or firm for which the orders are to be solicited or secured; the name of the nearest local or state manager, if any, and his or her address; the kind of goods, wares or merchandise to be delivered; the place from which the same are to be shipped or forwarded; the method of soliciting or taking orders; the location of any warehouse, factory or plant within the state; the method of delivery; the name and location of the residence of the applicant; a copy of the order blank, the contract form or other papers used by the applicant in taking orders; a late photograph of the applicant; and any other facts necessary to establish such claim of exemption.

B. Exempt License Permit. If the license collector is satisfied from the foregoing that the applicant is entitled to exemption because he is in good faith engaged in interstate commerce, he shall issue an exempt business license permit for the current quarter.

C. Restrictions as to Use of Exempt License Permit. The business solicitation activities of such person shall be confined to business establishments only within the city except that such person may call upon private residences, provided he has been requested or invited so to do by the owner or occupant of said private residence, the request or invitation having been obtained or received from the owner or occupant by any legitimate means other than direct door-to-door personal contact.

(Ord. 354 § 25, 1977)

A. Every honorable discharged or honorably released soldier, sailor or Marine of the United States who has served in any Indian War, the Spanish American War, Philippine Insurrection or in the Chinese Relief Expedition, in World I, World War II, the Korean Campaign or Vietnam, who is physically unable to obtain a livelihood by manual labor, and who shall be qualified elector of the state, shall have the right to distribute circulars and to hawk, peddle and vend any goods, wares or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor, without payment of any business license tax whatsoever; provided, that no such exempt business license shall be issued without first being approved by the city council, and before any such license shall be approved by the city council for issuance by the license collector, the following requirements shall be complied with by every applicant for such exempt license:

1. Every applicant shall furnish a certificate of physical disability executed by a qualified surgeon of the U.S. Navy, Air Force, Army or Marines, and a certificate of honorable discharge from the U.S. Navy, Air Force, Army or Marines, and a written recommendation from a representative of the local post of the American Legion and the Veterans of Foreign Wars, or the Veterans Service Officer of the county.

2. Every applicant shall furnish two identification photographs, one to be attached to the license issued to the applicant and the other to be attached to the copy retained by the license collector. The applicant shall also sign both copies of such license at the time of the issuance thereof.

3. Every applicant shall be fingerprinted by the police department for identity purposes before any license is issued.

B. An exempt business license under the provisions of this section, when issued is subject to the following conditions:

1. It is not transferable and is for the exclusive use of the licensee named.

2. Applicant's identification photograph shall be attached to the license at all times, and failure to comply herewith is grounds for revocation of the license and for refusing its renewal and the issuance of a new license thereafter.

3. Should a business license be found in the possession of one other than the licensee named, it shall be surrendered up to the license collector and canceled, and neither the licensee named nor the holder thereof shall thereafter be entitled to hold a business license under the provisions of this section.

4. The licensee named shall identify him or herself by his or her signature whenever required to do so by a police officer, license inspector or license collector of the city.

5. Whenever the licensee uses a wagon, cart, dray, basket or other vehicle or receptacle for the vending of any such goods, wares or merchandise, then the business license shall be carried in a license holder attached to such vehicle or receptacle, and any business license issued under the provisions of this section shall expire 30 days from and after the date of issuance and a new business license thereafter shall be issued pursuant to the provisions of this section.

(Ord. 354 § 26, 1977)

The provisions of this chapter shall not be deemed or construed to require the payment of a business license tax by a commercial traveler or drummer whose business is limited to taking orders for future delivery of goods, wares and merchandise sold in this state at wholesale, and who deals directly with established places of business in the city.

(Ord. 354 § 27, 1977)

No person who has entered into and holds an agreement with the city for the operation of a concession upon city property, and for which a rental is paid to the city, shall be required to obtain a business license under the terms of this chapter.

(Ord. 354 § 28, 1977)

Any resident of the city who conducts a minor business activity, which is not in violation of zoning or other laws, and whose average gross receipts from such business activity does not exceed $1800 per year and such business is operated by the proprietor and has no employees shall be exempt from payment of a license tax; provided, that this exemption shall not apply to any person who, after having received 15 days' written notice of demand therefor from the license collector, shall fail to provide proof satisfactory and a sworn statement to the license collector of having earned less than that amount.

(Ord. 354 § 29, 1977)

The payment of business license tax shall not be required by a natural person, 17 years of age or under, solely because he engages in the business of lawn mowing, yard or custodial maintenance work; provided he has no employees working for him.

(Ord. 354 § 30, 1977)

A. Nonprofit Activity. The provisions of this chapter shall not be deemed or construed to require the payment of a license tax to conduct, manage or carry on any business, occupation or activities, or require the payment of any business license tax from any institution or organization so conducted, managed or carried on, wholly for the benefit of charity purposes or from which profit is not derived, whether directly or indirectly, by any person.

The applicant shall include with the application a copy of its tax-exempt status letter pursuant to Section 170(c)(2) of the Internal Revenue Code.

A nonprofit organization is one in which all of the personal property and assets of the organization, or any of the proceeds of said assets, cannot be distributed to the members of the organization. The organization should have, if a corporation in its articles, or if unincorporated, in its by-laws, provisions substantially as follows in order to qualify as a nonprofit organization:

B. Entertainment Proceeds Retained Locally. No business license tax shall be required for the conducting of any entertainment, concert, rummage sale, exhibition or lecture on scientific, historical, literary or religious or moral subjects whenever the receipts of such entertainment, concert, rummage sale, exhibition or lecture are to be appropriated to any school, or to any religious or benevolent purposes within the city.

C. Receipts to Organization. No business license tax shall be required for the conducting of any entertainment, dance, concert, rummage sale, exhibition or lecture by a religious, charitable, fraternal, educational, military, state, county or municipal organization or association, whenever the receipts of any such entertainment, dance, concert, rummage sale, exhibition or lecture are to be appropriated for the purpose and objects for which such association or organization was formed and from which profit is not derived, either directly or indirectly, by any person.

D. Permit. Nothing contained in this section shall be deemed or construed to exempt any such association or organization from complying with the provisions of Chapter 5.50 regarding the activities of peddling, canvassing and soliciting.

(Ord. 354 § 31, 1977; Ord. 695 § 2, 2006)