McFarland Municipal Code Ch. 5.04 Business Licenses

The ordinance codified in this chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation.

(Ord. 7 §2, 1957)

As used in this chapter, the following terms and phrases shall have the meanings ascribed to them in this section:

A. "Amusement machine" means any mechanical, electrical, electronic or other machine, apparatus, contrivance or device, which may be operated or played by the placing or deposit therein of a coin, check, slug, ball, token, card or other article, or by paying for the use thereof in advance or after use, involving in its operation or play either skill or chance, including but not limited to pinball machines, bowling game machines, shuffleboard machines, marble game machines, video game machines, or any other similar machine or device. The term "amusement machine" does not include phonographs, jukeboxes or other music machines.

B. "Arcade" means any business with a fixed place of business which maintains on the premises four or more amusement machines available for use and play by the public generally or by patrons of such business, whether the business of arcade is conducted as a single business or in conjunction with another business.

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

D. "Distributor" means any person engaged in the business of selling, renting or placing on consignment or on commission basis or otherwise with any person any amusement machine in or at any place of business in the city.

E. "Gross receipts" 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 "gross receipts" shall be all 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 materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from "gross receipts" shall be the following:

1. Cash discounts allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

4. 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;

5. 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, provided the agent or trustee has furnish the collector with the names and addresses of the others and the amounts paid to them;

6. As to a prime contractor or subcontractor to which Section 7108.5 of the California Business and Professions Code applies, the amounts received on account of the work performed by subcontractors, to the extent of each subcontractor's interest within.

7. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker;

8. As to a retail gasoline dealer, a portion of his receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and previously paid under the provisions Part 2 of the Division 2 of the Revenue and Taxation Code of the State of California;

9. As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code if paid by the dealer or collected by him from the consumer or purchaser;

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

11. As to a public utility operating in the city under a franchise or franchises from the city and which makes franchise payments to the city, that portion of gross receipts used in calculating the franchise fees.

F. "Person" 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.

G. "Residential property rental" means the business of managing, operating or renting any apartment house, duplex, hotel, motel, mobile home park, rooming or boardinghouse with two or more residential units. For purpose hereof, the number of residential units aforesaid shall exclude that unit, if any, occupied by the applicant; provide, however, that the management, operation or rental of three or less residential units shall not be deemed a residential property rental for the purposes of this chapter.

(Ord. 190 §1, 1982; Ord. 7 §1, 1957)

(Ord. No. 063-2017, § 2(A), 1-27-17; Ord. No. 064-2017, § 2(A), 2-9-17; Ord. No. 075-2017, § 3, 11-9-17; Ord. No. 005-2018, § 1(A), 6-14-18)

Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the city, and shall remain subject to the regulatory provisions of other ordinances.

(Ord. 7 §3, 1957)

There are imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person to transact and carry on any business, profession, trade, calling or occupation in the city without first having procured a license from the city so to do or without complying with any of the applicable provisions of this chapter. 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 the state. 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 the state shall not be liable for payment of the tax imposed by this chapter.

(Ord. 210 §3, 1987: Ord. 7 §4, 1957)

Editor's note— Ord. No. 8-2025, § 2, adopted Sept. 24, 2025, repealed § 5.04.045, which pertained to commercial cannabis and derived from Ord. No. 063-2017, § 2(A), adopted Jan. 27, 2017; Ord. No. 064-2017, § 2(A), adopted Feb. 9, 2017; and Ord. No. 075-2017, § 4, adopted Nov. 9,2017.

A separate license must be obtained for each branch establishment or location of the business transacted and carried on. Each license shall authorize the licensee to transact and carry on any business or businesses at said location.

(Ord. 20 §1, 1958: Ord. 7 §5, 1957)

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 of such taxes as are prescribed in this chapter.

B. None of the license taxes provided for by this chapter shall be so applied as to occasion an undue burden on interstate commerce. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon such commerce, he may apply to the finance department for an adjustment of the tax so that it will not be discriminatory or unreasonable as to such commerce. Such application may be made before, at, or within six months after payment of the prescribed license tax. The applicant shall, by affidavit and supporting testimony, show his method of business and the gross volume or estimated gross volume of business and such other information as the finance department may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The finance department shall then conduct an investigation, and, after having first obtained the written approval of the city attorney, shall fix as the license tax for the applicant, an amount that is reasonable and nondiscriminatory, or if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the finance department shall have the power to base the license tax upon any measure which will ensure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this chapter. Any person claiming an exemption pursuant to this section shall file a verified statement with the finance department stating the facts upon which the exemption is claimed. The finance department 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. The finance department, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided in this section.

(Ord. 7 §6, 1957)

(Ord. No. 8-2025, § 3, 9-24-25)

A. Every person required to have a license under the provisions of this chapter shall make application for the same to the finance department of the city. Such application shall be made upon a form provided by the finance department and shall set forth such information as may be required by the finance department as necessary to determine properly the amount of the license to paid.

B. All applications shall be reviewed and approved by the city of McFarland community development director or his/her designee prior to issuance by the finance department. All required planning entitlements and permits must be obtained by the applicant prior to approval of a business license application.

C. Each business license issued hereunder shall be conditioned upon the following and each licensee shall comply with same:

1. All written conditions or limitations imposed upon the permit;

2. Payment of all fees required by this chapter;

3. Cooperating with the police department and all other departments of the city in connection with the investigation of any criminal activity in or around the business premises and to assist in the investigation thereof; and

4. The business and premises on which it is conducted shall not be in violation of any local, state, or federal laws or regulations including, without limitation, all laws, rules and regulations within the McFarland Municipal Code. For nonconforming uses, please refer to McFarland Municipal Code Chapter 17.137, nonconforming uses. For any conflict arising between business type and Municipal Code provisions, a conditional use permit shall be sought. For conditional use permit, please refer to McFarland Municipal Code Chapter 17.152.

D. A business license shall not be issued or renewed if the property owner or business owner has any outstanding zoning, code enforcement and/or building violations on the subject property.

E. Upon approval of the business license application and upon the payment of the prescribed license tax the finance department shall issue to such person a license which shall contain: (i) The name of the person to whom the license is issued, (ii) the business licensed, (iii) the place where such business is to be transacted and carried on, (iv) the date of the expiration of the license, and (v) such other information as may be necessary for the enforcement of the provisions of this chapter.

(Ord. 7 §7, 1957)

(Ord. No. 073-2017, § 1(A), 12-14-17; Ord. No. 8-2025, § 4, 9-24-25)

Any person aggrieved by any decision of the finance department with respect to the issuance, refusal, to issue such license may appeal to the council by filing a notice of appeal with the city clerk. The council shall thereupon fix a time and place of 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 U.S. Post Office at McFarland, California, postage prepaid, addressed to such person at his last known address. The council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter.

(Ord. 7 §8, 1957)

(Ord. No. 073-2017, § 1(B), 12-14-17; Ord. No. 8-2025, § 5, 9-24-25)

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 license may upon application therefor and paying a fee of fifteen dollars have the license amended to authorize the transacting and carrying on of such business at some other location to which the business is or is to be moved.

(Ord. 7 §9, 1957)

(Ord. No. 005-2018, § 1(B), 6-14-18)

A duplicate license may be issued by the finance department to replace any license previously issued under this chapter 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 finance department a duplicate license fee of fifteen dollars.

(Ord. 7 §10, 1957)

(Ord. No. 005-2018, § 1(C), 6-14-18; Ord. No. 8-2025, § 6, 9-24-25)

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 person at all times while transacting and carrying on such business.

(Ord. 7 §11, 1957)

A business license may be suspended or revoked, temporarily or permanently, upon the permittee's failure to comply with all written conditions or limitations of the permit or the requirements of Section 5.04.070(C). Upon suspension or revocation of any permit, no other application by the same permittee or his or her agent to carry on a similar business or activity shall be filed for a period of one year from the date of such suspension or revocation.

(Ord. No. 073-2017, § 1(C), 12-14-17)

A suspension or revocation shall be final unless appealed to the city manager by the permittee within ten days after service of written notice of the suspension or revocation on the permittee. The filing of any appeal shall not stay any action to correct any violation of the permittee which may be pending. Any appeal shall be in writing and shall set forth fully the grounds upon which the appeal is based. The city manager shall determine the appeal based on the writings. The city manager shall send notice of his or her decision to the permittee within thirty days of receipt of all of the written materials required by the city manager. The city manager's decision shall be final.

(Ord. No. 073-2017, § 1(D), 12-14-17)

All license fees payable under this chapter shall be due and payable in full as follows:

A. Annual licenses: In advance on the first day of July.

B. Quarterly license taxes: In advance on the first day of January, April, July and October of each year.

C. Monthly licenses: On the first day of each and every month in advance.

D. Daily licenses: In advance each day.

(Ord. 7 §12, 1957)

For failure to pay a license tax when due, the finance department shall add a penalty of twenty-five percent of the license tax on the last day of the month after the due date thereof and the penalty and license tax shall bear interest from and after the due date until paid at the rate of twenty-five percent for each month delinquent thereafter providing that the amount of any penalty shall in no event exceed one hundred percent of the amount of the license tax due.

(Ord. 7 §13, 1957)

(Ord. No. 005-2018, § 1(D), 6-14-18; Ord. No. 8-2025, § 7, 9-24-25)

A. Every person who commences, conducts, engages in or carries on any business listed hereinafter in this subsection shall pay a business license tax comprised of the base, annual, per event, daily, and/or tax plus the unit tax amount times the number of units calculated, respectively, for each such classification of business as hereinafter specified.

B. Every person who engages in any business within the city except those businesses set forth in subsection A of this Section 5.04.140 shall pay an annual business tax based upon gross receipts at the rates to be calculated to the nearest cent as set forth below:

City of McFarland License Fee Schedule Annual Gross Receipts

1. Base fee on all business license: Fifteen dollars.

2. California state fee on all business license: Four dollars. May be revised by state of California.

For the sales and service or the rendering of any service whatsoever.

Note: You may report your gross receipts on a calendar or fiscal basis as long as it is for a full year. Please report by the same method each year. If you have been doing business in the city of McFarland for less than twelve months, enter an estimate of your gross receipts for twelve months.

C. The business license tax and gross receipts may be modified from time to time by city council resolution.

(Ord. 276 §1(part), 1996; Ord. 210 §1(b), 1987; Ord. 190 §2, 1982; Ord. 89 §1, 1965: Ord. 60 §1, 1961: Ord. 50 §1, 1961; Ord. 29 §1, 1958; Ord. 7 §14, 1957)

(Ord. No. 005-2018, § 1(E), 6-14-18; Ord. No. 0004-2021, § 4, 6-10-21; Ord. No. 11-2024, § 2, 8-22-24; Ord. No. 8-2025, § 9, 9-24-25; Ord. No. 8-2025, § 10, 9-24-25; Ord. No. 10-2025, § 2, 10-3-25)

Every person not having a fixed place of business within the city who is not subject to the provisions of Section 5.04.140, who delivers goods, wares or merchandise of any kind by vehicles in the city or who provides any service by the use of vehicles in the city shall pay a license tax of one hundred fifty dollars per year.

(Ord. 276 §1(part), 1996; Ord. 89 §2, 1965: Ord. 7 §15, 1957)

(Ord. No. 005-2018, § 1(F), 6-14-18)

Every person not having a fixed place of business within the city who engages in business within the city and is not subject to the provisions of Sections 5.04.140 or 5.04.150, shall pay a license tax of one hundred fifty dollars per year.

(Ord. 89 §3, 1965: Ord. 7 §16, 1957)

(Ord. No. 005-2018, § 1(G), 6-14-18)

Every person who engages in business at a fixed place of business within the city and is not subject to the provisions of Section 5.04.140 shall pay an annual license tax of fifty dollars.

(Ord. 276 §1(part), 1996; Ord. 7 §17, 1957)

Whenever a business shall be first commenced during the year or any quarter thereof, the license tax shall be prorated for the months remaining in the license period after the first day of the month in which the business is commenced. Provided, however, that there shall be no proration of daily licenses and there shall be no proration of licenses for any person who does not have an established place of business in the city and provided further, that the minimum license fee under any proration shall be fifteen dollars.

(Ord. 66 §1, 1962: Ord. 60 §2, 1961: Ord. 7 §19, 1957)

(Ord. No. 005-2018, § 1(H), 6-14-18)

The licensing of any business, occupation or activity carried on wholly for the benefit of charitable purposes from which profit is not derived either directly or indirectly by any person, or to the conducting of any entertainment, dance, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects whenever the receipts from such entertainment, dance, concert, exhibition or lecture go to any church, school, or to any religious or benevolent purpose within the city, or to any federal, military, fraternal or local chamber of commerce within the city, may be waived by the city council provided an application is made therefor with the city clerk of the city at least ten days prior to a regular city council meeting.

(Ord. 117 §1, 1970: Ord. 7 §20, 1957)

(Ord. No. 005-2018, § 1(I), 6-14-18)

It shall be the duty of the finance department of the city and who by the ordinance codified in this section, directed to 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 finance department or the city council. The finance department, in the exercise of the duties imposed upon him under this chapter, shall examine or cause to be examined all places of business in the city to ascertain whether the provisions of this chapter have been complied with. The finance director, each and all of his 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 in this chapter, and demand an exhibition of its license. Any person having such license theretofore issued, in his possession or under his control, who willfully fails to exhibit the same on demand shall be guilty of a misdemeanor and subject to the penalties provided by this chapter. It shall be the duty of the finance director to cause a complaint to be filed against any and all persons found to be violating any of the provisions of this chapter.

(Ord. 7 §21, 1957)

(Ord. No. 8-2025, § 8, 9-24-25)

The city manager or his designee may revoke a business license if the business should be registered with the board of equalization and collecting and forwarding the sales tax accordingly but fails to do so.

(Ord. No. 005-2018, § 1(J), 6-14-18)

In no case shall any mistake made by the director in stating the amount of a license tax prevent or prejudice the collection by the city of what shall be actually due from any carrying on a business subject to a license tax under this chapter.

(Ord. No. 005-2018, § 1(J), 6-14-18)

A. No statements 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 several items therein contained shall be subject to audit and verification by the collector, his deputies, or authorized employees of the city, who are hereby authorized to examine, audit, and inspect such books and records of any certificate holder or applicant for business tax certificate, as may be necessary in their judgment to verify or ascertain the amount of business tax due.

B. All persons subject to the provisions of this chapter shall keep complete records of business transactions, including sales, receipts, purchases, and other expenditures, and shall retain all such records for examination by the collector. Such records shall be maintained for a period of at least five years. No person required to keep records under this section shall refuse to allow authorized representatives of the collector to examine the records at reasonable times and places.

(Ord. No. 005-2018, § 1(J), 6-14-18)

A. It is unlawful for the collector or any person having an administrative duty under the provisions of this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any person required to obtain a business tax certificate, or pay a business tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person. Provided that nothing in this section shall be construed to prevent:

B. The disclosure to, or the examination of records and equipment by, another city official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter, or collecting taxes imposed hereunder;

C. The disclosure of information to, or the examination of records by, federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena;

D. The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any business tax liability of the particular taxpayers of the city;

E. The disclosure after the filing of a written request to that effect, to the taxpayer himself, or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, however, that the city attorney approves each such disclosure and that the collector may refuse to make any disclosure referred to in this paragraph when in his opinion the public interest would suffer thereby;

F. The disclosure of the names and addresses of persons to whom business tax certificates have been issued, and the general type or nature of their business;

G. The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for 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;

H. The disclosure of general statistics regarding taxes collected or business done in the city;

I. The disclosure of information and examination of records of any business tax certificate holder who is a litigant in any lawsuit involving the city and such information is relevant to the issues in such lawsuit.

(Ord. No. 005-2018, § 1(J), 6-14-18)

If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the collector he fails to file a corrected statement, or if any person subject to the tax imposed by this chapter fails to apply for a business tax certificate, the collector may determine the amount of business tax due from such person by means of such information as he may be able to obtain. In case of failure to apply for a business tax certificate, a twenty-five percent penalty shall be added to the tax due. If the collector is not satisfied with the information supplied in statements or applications filed, he may determine the amount of any business tax due by means of any information he may be able to obtain. If such a determination is made the collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at McFarland, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within fifteen days after the mailing or serving of such notice, make application in writing to the collector for a hearing on the amount of the business tax. If such application is made, the collector shall cause the matter to be set for hearing within thirty days before the city council. The collector shall give at least ten days' notice to such person of the time and place of hearing in the manner prescribed above for serving notices of assessment. The 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.

(Ord. No. 005-2018, § 1(J), 6-14-18)

The amount of licenses taxes to be paid to the city by any person engaged in or carrying on any profession, trade, calling, occupation or business hereinafter designated is hereby fixed and established by separate resolution from time to time by the city council. Such license tax shall be paid by every person engaged in carrying on or maintaining any such profession, trade, occupation, calling or business in the city.

(Ord. No. 005-2018, § 1(J), 6-14-18)

The amount of any license tax and penalty and interest imposed by this chapter shall be deemed a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent license tax and penalties and interest.

(Ord. 7 §22, 1957)

(Ord. No. 005-2018, § 1(L), 6-14-18)

Editor's note— Ord. No. 005-2018, § 1(L), adopted June 14, 2018, renumbered § 5.04.210 as § 5.04.270.

All remedies prescribed under this chapter 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.

(Ord. 7 §23, 1957)

(Ord. No. 005-2018, § 1(L), 6-14-18)

Editor's note— Ord. No. 005-2018, § 1(L), adopted June 14, 2018, renumbered § 5.04.220 as § 5.04.280.

Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in procuring the license or permit provided for in this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars or by imprisonment in the county jail for a period not exceeding six months, or by both such fine and imprisonment.

(Ord. 7 §24, 1957)

(Ord. No. 005-2018, § 1(L), 6-14-18)

Editor's note— Ord. No. 005-2018, § 1(L), adopted June 14, 2018, renumbered § 5.04.230 as § 5.04.290.