Modesto Municipal Code Art. 1 Requirements, Regulations and Penalties

* Prior history: Former Article 1 of Chapter 1, Licensing in General, was added by Ord. 238-C.S., amended by Ords. 246-C.S., 335-C.S., 407-C.S., 433-C.S., 546-C.S., 918-C.S., 958-C.S., 1129-C.S., 1138-C.S., 1338-C.S., 1339-C.S., 1498-C.S., 1597-C.S., 1617-C.S., 1618-C.S., 2840-C.S., 2885-C.S., 3013-C.S., 3027-C.S., 3086-C.S., 3113-C.S, and replaced by Ord. 3266-C.S.

For the purposes of this chapter, the words and phrases used herein shall have the following meaning unless the context shows a different meaning.

(a) Business. All professions, trades and occupations and all and every kind of calling carried on for profit or livelihood.

(b) Business District. Any area zoned for business purposes by the zoning regulations of the City.

(c) Commission Broker. One who, for a commission or fee, handles the buying and/or selling of commodities, or an agent or an agency for marketing manufactured goods or other commodities, but who does not take ownership of commodities sold.

(d) Day. The term "day" shall mean a calendar day. If the last day for performance of any act provided for shall be a holiday the act may be performed upon the next business day with the same effect as if it had been performed upon the day appointed. For purposes of this section, the Friday in November immediately after Thanksgiving Day shall be considered a holiday.

(e) Director. The Finance Director, or his/her duly authorized deputies or assistants who may be charged with the collection of license taxes and the issuance of licenses.

(f) Fixed Place of Business. A place of business in the City of Modesto occupied for the particular purpose of conducting the business thereat and regularly kept open for that purpose with a competent person in attendance for the purpose of attending to said business.

(g) Gross Receipts. The total amount of the sale price of all sales and the total amount charged or received for the performance of any act, service, or employment for whatever nature it may be, for which a charge is made or credit allowed. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature and any amount for which credit is allowable by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service cost, interest paid or payable, or losses or other expenses whatever.

The following shall be excluded from gross receipts:

(1) Cash discounts allowed and taken on sales;

(2) Value of property accepted as part of the purchase price;

(3) Any taxes collected which are separately stated and collected for and paid to a governmental agency;

(4) Such part of the sale price of property returned by the purchaser upon recision of the contract of sale as is refunded either in cash or by credit;

(5) Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;

(6) Collection for others where the business is acting as an agent or trustee to the extent that payments are made to those for whom collected;

(7) Sales of real estate by an agent or sales of commodities by a commission broker, except that portion of the sale which represents commissions or other income to the agent;

(8) That portion of the receipts of a general contractor which represents payments to subcontractors, providing such subcontractors are licensed under Article 2 of this chapter and further provided that the general contractor furnishes the Director with the names and addresses of the subcontractors and the amounts paid each subcontractor; and

(9) The amount of gross receipts which has been subject to a license tax paid to any other city.

(10) Receipts of an Independent Physician Association, as defined herein: Independent Physician Association ("IPA") means a legal "person" organized in accordance with California law having all of the following characteristics:

(i) One hundred (100) percent ownership or control by California licensed medical doctors ("members");

(ii) With the exception of members who are employed by, or are partners in a medical group practice, and who contract with the IPA, all IPA members practice independently of other members;

(iii) Enter into direct contracts with "Health Plans" as defined in Health and Safety Code Section 1345(F), as amended from time to time;

(iv) Contracts between IPA and Health Plans must provide for payment by Health Plans to IPA for medical services to Health Plan enrollees; and

(v) IPA contracts in (iv) above must make IPA a fixed fee administrator with no risk for gains or losses from capitation revenues paid to it by Health Plans. "Capitation" being a fixed amount paid by a Health Plan to IPA or its members per Health Plan enrollee per month, and "Fixed Fee" being either a sum stated, or a fixed percentage of capitation received.

(h) Itinerant Vendor. Any person who shall travel from town to town, house to house, apartment to apartment, office to office, place to place, person to person, or any combination thereof for the purpose of selling, offering for sale, or soliciting orders for, goods, wares, or merchandise at retail, but shall not include selling and delivering, or offering to sell and deliver, items of food and drink for human consumption by a vendor to regular customers along established routes in accordance with invitations previously made to such vendor to make regular calls at specific intervals at such premises for said purpose.

An itinerant vendor shall include but not be limited to a hawker, peddler, street vendor, sidewalk vendor, flower vendor, arts or crafts vendor, or a vendor from a truck or vehicle. An itinerant vendor shall not include any authorized agent or representative of a person having a fixed place of business in the City of Modesto, nor shall it include a charitable institution which sponsors an occasional bazaar, festival, or rummage sale at which the goods, wares or merchandise have been purchased by, prepared by, or donated to the charitable institution and at which no other person makes a profit, nor shall it include youth and senior part-time occupations as set forth in Section 6-1.106.

(i) Manufacturing. One who engages in the business of manufacturing, fabricating or processing any materials, raw or partly wrought, into goods, wares or merchandise, or assembling or packaging any manufactured or processed materials, whether such manufactured or processed goods are sold or distributed to wholesalers, brokers, or other channels for the purpose of resale.

(j) Month. The term "month" shall mean a calendar month.

(k) Operator. The term "operator" shall mean any person operating a business subject to the tax, including, but not limited to, the owner or proprietor of such premises, lessee, sublessee, mortgagee in possession, licensee or any other person otherwise operating such business.

(l) Person. The term "person" shall mean any individual, firm, company, partnership, limited liability partnership, joint venture, association, proprietorship, social club, fraternal organization, joint stock company, domestic or foreign corporation, limited liability corporation, estate, trust, business trust, receiver, trustee, trustee in bankruptcy, administrator, executor, assignee, syndicate, or any other group or combination acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, excepting: the United States of America, the State of California, and any political subdivision of either thereof upon which the City is without power to impose the tax herein provided.

Whenever the term "person" is used in any clause in this Article imposing either a tax liability or a penalty for failure to perform any act, such term shall include any natural person who as an individual or with a spouse and/or lineal descendants owns or controls fifty (50) percent or more of the voting stock of a corporation obligated to file returns and pay or remit tax; and in addition, is a person with the power to control the fiscal decision-making process by which the corporation allocates funds to creditors in preference to its tax obligations. An individual who is an officer or director of a "person," as defined above, shall rebuttably be presumed to be a person with the power to control said entity's fiscal decision-making processes.

Whenever the term "person" is used in any clause prescribing and imposing a penalty, the term as applied to associations shall include the owners or part owners thereof, and as applied to corporations, the officers, shareholders and directors thereof, in their individual capacities, if such owners, officers, shareholders and directors have charge of the affairs of said association or corporation.

(m) Processor. One who engages in business of converting an article, substance or commodity into marketable form for the purpose of resale by changing its physical or chemical composition.

(n) Public Utility. Any person furnishing the public with communication, water, light, heat, power or other public utility or service subject to regulation by the Public Utilities Commission of the State of California.

(o) Return. The term "return" shall mean any written statement required to be filed pursuant to this chapter and containing information necessary to the determination of the tax, such as a declaration of gross receipts.

(p) Tax Collector. The term "Tax Collector" shall mean the Finance Director, as defined herein, or his or her designee.

(q) Taxpayer. The term "taxpayer" shall mean a person required under this chapter to file a return or pay or remit a tax.

(r) Vehicle. Every device, in, upon, or by which any person or property is or may be transported or drawn upon a public highway.

(s) Wholesaler. One who engages in the business of selling or soliciting the sale of goods, wares, merchandise, or services for the purpose of resale and not to consumers or users thereof.

(Added by Ord. 3266-C.S., § 1, amended by Ord. 3320-C.S., § 1, effective 10-8-03)

The provisions of this chapter are enacted solely to raise revenue for municipal purposes, and are not intended for regulation.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

(a) There are hereby 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, trade, profession, calling or occupation in the City of Modesto without first having procured a license from said City so to do; or without complying with any and all applicable provisions of this chapter.

(b) Any person carrying on for profit or livelihood, excepting persons providing services on behalf of a charitable organization as defined by State and Federal law, the solicitation of money for furnishing or performing, or attempting to furnish or perform, any services associated with the cleaning, washing, polishing or providing care to the exterior portion of a vehicle including, but not limited to, windshields or windows, must procure a business license from the City. Every person having a license issued under this section shall carry such license with them at all times while carrying on the occupation described in this section. Every person having a license under this section shall produce and exhibit the same, when requested to do so by any police officer, or by any officer or employee authorized to issue, inspect, or collect licenses.

(c) 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 of the State of California.

(d) 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 of the State of California shall be liable for payment of the license tax imposed by this chapter.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

The payment of a license tax required by the provisions of this chapter, and its acceptance by the City, and the issuance of such license to any person shall not entitle the holder thereof to carry on any business unless he/she has complied with all the requirements of this Code and all other applicable laws, nor to carry on any business in any building or on any premises designated in such license in the event that such building or premises are situated in a zone or locality in which the conduct of such business is in violation of any law.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Persons required to pay a 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 provisions of this Code.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

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 the following businesses or occupations:

(a) Charitable Institutions, Etc. 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 person; nor shall any license be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects, whenever the receipts of any such entertainment, concert, exhibition or lecture are to be appropriated to any church, or school, or to any religious or benevolent purpose within the City; nor shall any license 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 purposes and objects for which such association or organization was formed, and from which profit is not derived, either directly or indirectly by any person; provided, however, that nothing in this section contained shall be deemed to exempt any such institution or organization from complying with the provisions of any law of the City requiring such institution or organization to obtain a permit from the proper board, or officer to conduct, manage or carry on any profession, trade, calling or occupation; provided that such institution or organization shall file with the Director satisfactory proof by affidavit that the receipts of such business are to be used for the purposes herein specified.

(b) Disabled Veterans. Any disabled veteran who is physically unable to obtain a livelihood by manual labor and having honorable discharge or release papers showing disability incurred while in the service in the armed forces of the United States, shall have the right to distribute circulars and hawk, peddle and vend any goods, wares or merchandise owned by him/her without the payment of any license or tax upon the following terms and conditions:

The applicant shall furnish evidence satisfactory to the Director that he/she is physically unable to obtain a livelihood by manual labor, an honorably discharged or released member of the armed forces of the United States and that he/she sustained disability while serving in the armed forces of the United States during a war or military campaign in which the United States was engaged.

(c) Agricultural Producers. The actual grower and producer of ranch, farm, orchard, vineyard or poultry produce or products, who, by himself or by an agent or employee, sells or delivers to the market or at a loading platform such produce or products actually produced or grown by him.

(d) Blind. Any business conducted, carried on or managed solely by a totally blind person.

(e) Part-Time Occupations. Any part-time occupation conducted or carried on solely by any natural person under the age of eighteen (18) years, or sixty-five (65) years of age or older. Part-time occupation as used in this subsection means an occupation in which the annual gross receipts do not exceed ten thousand dollars ($10,000.00).

(g) Garage Sales. Any garage sale held or conducted in accordance with the provisions of Section 10-2.506 of this Code. Garage sale as used in this subsection means the sale at retail or used or secondhand goods or merchandise at dwellings and on residentially zoned property; such sales are commonly known as patio sales, yard sales, etc.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Except as may be otherwise specifically provided in this chapter, the terms hereof shall not be deemed or construed to apply to any of the following persons:

(a) Any public utility which pays to the City a tax under a franchise or similar agreement, or any publicly owned public utility.

(b) Banks, including national banking associations, to the extent that a city may not levy a license tax upon them under the provisions of Article XIII, Section 27, Subdivision 1(a) of the State Constitution.

(c) Insurance companies and associations to the extent that a city may not levy a license tax upon them under the provisions of Article XIII, Section 28 of the State Constitution.

(d) City, Public Entity and Constitutional Exemptions. Nothing in this Article shall be construed as imposing a tax upon:

(1) The City;

(2) The State of California, or any county, municipal corporation, district or other political subdivision of the State, except where any constitutional or statutory immunity from taxation is waived or is not applicable;

(3) The United States of America, or any of its agencies or subdivisions, except where any constitutional or statutory immunity from taxation is waived or is not applicable; or

(4) Any person when imposition of such tax upon that person would be in violation of the Constitution or statutes of the United States or the Constitution or statutes of the State of California.

The Director may require the filing of a verified statement from any person claiming to be excluded by the provisions of this section, which statement shall set forth all facts upon which the exclusion is claimed.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Each applicant for a license shall complete and sign an application on forms provided by the City, except as otherwise provided in this chapter. Such forms shall require such information as the Director shall deem necessary to determine the proper license tax to be paid by the applicant, including the name and address of the individual if a single proprietor, the names and addresses of all owners if a firm, or the names and addresses of all principal officers if a corporation, the name of the business, the address at which the business is to be conducted, the type of business, and the activities to be carried on for which the license is being sought. Upon determining the license tax due, the Director shall indicate the amount on the application form, and upon payment of the tax, shall issue to the applicant a receipt for taxes paid.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

A separate license must be obtained for each branch establishment or location of the business transacted or carried on, including any branch establishment or location of a business required to be licensed under the Business and Professions Code of the State of California, or for which a license has been obtained under the Business and Professions Code of the State of California, and for each separate type of business at the same location; 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 or separate types of business.

Except as otherwise provided in this section, each license shall authorize the licensee to transact and carry on only the type of business licensed thereby at the location or in the manner designated in such license.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

(a) The determination of which business or businesses, or type or class of business or businesses, a licensee or applicant for a license is engaged in, or about to engage in, shall be an administrative function of the Director.

(b) In any case where a licensee or applicant for a license believes that he/she is placed in the wrong business or class of businesses he/she may apply to the Director for a change in his/her classification. Such application may be made before, at, or within three (3) months after payment of the prescribed license 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/her own investigation and shall have the administrative duty of determining the proper classification. Any applicant or licensee aggrieved by the decision of the Director shall have the right of appeal to the City Council. Such appeal shall be taken by filing with the Director, within fifteen (15) days after notice of the decision of the Director, a written statement setting forth the grounds for the appeal. The City Clerk shall set a time and place for a hearing on such appeal within thirty (30) days after the receipt of the appeal. The decision and order of the Council if backed by substantial evidence shall be final and conclusive.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

(a) All license taxes due hereunder shall be paid in advance at the office of the Director unless otherwise expressly provided, and shall be due and payable and delinquent as follows:

(1) Daily License. Due on its effective date and delinquent at 5:00 p.m. of due day.

(2) Weekly License. Due on Monday of each week and delinquent at 5:00 p.m. on Friday of said week.

(3) Monthly License. Due on the 1st day of each month for which the license is sought and delinquent at 5:00 p.m. on the last day of the month.

(4) Quarterly License. Due on the 1st day of October, January, April and July and delinquent at 5:00 p.m. on the last day of the first month in which the quarterly license is due.

(5) Quarterly Gross Receipts Tax. Due on the 1st day of October, January, April and July for the preceding quarterly period and delinquent at 5:00 p.m. on the last day of the month following the quarterly license period.

(6) Yearly Gross Receipts Tax. Due on the 1st day of January for the preceding yearly period and delinquent at 5:00 p.m. on the last day of the month following the yearly license period.

(7) Semiannual License. Due on the 1st day of July and January and delinquent at 5:00 p.m. on the last day of the first month in which the semiannual license is due.

(8) Annual License. Due on the 1st day of January and July and delinquent at 5:00 p.m. on the last day of January and July.

(9) Annual Registration Tax. Due on the 1st day of January and July and delinquent at 5:00 p.m. on the last day of January and July.

(b) In lieu of paying said license taxes at the office of the Director as specified in subsection (a) hereof, said license taxes may be deposited in United States mail, postage prepaid, on the due date, provided the transmitting envelope contains a postage cancellation stamp showing cancellation not later than 12:00 p.m. on the due day.

(c) If the due day falls on Saturday, Sunday or a holiday, the due day shall be the next regular business day on which the City Hall is open to the public.

(d) The Director may, for good cause, extend for not more than thirty (30) days the time for filing any report or paying any sum required to be paid hereunder. The extension may be granted at any time provided a written request therefor is filed with the Director prior to the delinquency date.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

(a) If any taxpayer fails to make a timely return, the Tax Collector may make a determination based upon an estimate of the amount of the total tax liability of the taxpayer. The estimate shall be made for the period or periods in respect to which the person failed to timely make a return, failed to timely make a prepayment or failed to timely remit a tax, and may be based upon any information which is in the Tax Collector's possession or may come into his or her possession. Upon the basis of this estimate, the Tax Collector shall compute and determine the amount required to be paid to the City, adding to the sum thus computed an additional cost equal to twenty (20) percent thereof: One (1) or more determinations may be made for one or more than one (1) period.

In making a determination, the Tax Collector may offset overpayments for a period or periods, together with interest on the overpayments, against underpayments for another period or periods, against additional costs, and against the interest on the underpayments. The amount of the determinations, exclusive of additional costs, shall bear interest at the rate of one (1) percent per month, or fraction thereof, from the last day of the month following the close of the quarterly period for which the amount or any portion thereof, should have been returned until the date of payment.

(b) Upon making his or her determination, the Tax Collector shall serve the person or persons determined to be liable therefor with written notice of the determination and penalty, the notice to be served personally or by mail.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Except as otherwise provided herein no proration of any license tax due hereunder shall be made for any portion of the period for which a license is payable, except that in a case of a newly established business, the annual registration tax may be prorated for the number of months remaining in the year at the time of application for license. For the purpose of proration a fractional part of a month shall be considered as a full month.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Every person conducting, carrying on or managing a business who is required to pay a business license tax measure by gross receipts shall file a quarterly declaration of gross receipts for the previous quarter on or before the last day of the first month of the following quarter with the Director on forms prescribed by the City.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Every person conducting, carrying on or managing a business who is required to pay a business license tax measure by gross receipts shall file a yearly declaration of gross receipts for the previous year on or before the last day of the first month of the following year with the Director on forms prescribed by the City.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

In the event any business subject to a license tax measured by gross receipts closes or changes ownership, said business shall file a closing return with the City and pay the business license tax due thereon within thirty (30) days from the time of closing or changing ownership of said business. A closing return shall be considered delinquent if not filed within the specified time.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

No statement required to be filed by the applicant or licensee shall be conclusive upon the City or the Director whenever it shall appear to the satisfaction of the Director that such statement does not set forth the true facts of the business for which a license is required. The Director may thereupon withhold the issuance of a license until the applicant shall have furnished satisfactory evidence of the truth of such statement.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Every person having a license issued under the provisions of this chapter, and carrying on a trade, calling, profession, or occupation at a fixed place of business, shall keep such license posted and exhibited while in force in some conspicuous part of said place of business. Every person having such a license, and not having a fixed place of business shall carry such license with him/her at all times while carrying on the trade, calling, profession or occupation for which the same was granted. Every person having a license under the provisions of this chapter shall produce and exhibit the same, whenever requested to do so by any police officer, or by any officer or employee authorized to issue, inspect or collect licenses.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

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 tax of five dollars ($5.00), be issued a new license to authorize the transacting and carrying on of such business under said license at some other location to which the business is or is to be moved. Any change in type of business will be construed as a new business and subject to the provisions of Section 6-1.103.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

A duplicate license may be issued by the Director to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing statement of such fact, and at the time of filing such statement paying to the Director a service charge of one dollar ($1.00).

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Every person licensed under the provisions of this chapter shall, if he/she wishes to continue to carry on, conduct or manage the business in the City upon expiration of the license, renew the license by paying the taxes required in this chapter as provided in the section under which the original license was issued. It shall be the responsibility of the licensee to advise the Director of any changes in the type of business, the activities carried on, or changes in ownership from that shown on the original license. Any change in type of business or business activities conducted, or change in ownership, will require a new application to be prepared and the appropriate license tax to be paid. No license shall be renewed if the licensee is delinquent in any charges imposed by this chapter or delinquent in filing reports required by this chapter.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Any license issued under the provisions of this chapter may be revoked by the Director upon the failure on the part of the licensee to pay the taxes, costs or other charges imposed by this chapter or to file reports as required by this chapter within six (6) months after such charges or reports become delinquent.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Financial information furnished or secured pursuant to this chapter, the disclosure of which would result in unfair competitive disadvantage to the person supplying such information, shall be deemed confidential in character, and shall not be subject to public inspection and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration and enforcement of this chapter, subject to the provisions of the California Public Records Act.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

The Director and his/her assistants and any City 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. It shall be the duty of the Director to cause a complaint to be filed against all persons refusing access of authorized City employees to that person's business license certificate.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

Every person who begins the operation of a new business subject to a license under the provisions of Sections 6-1.201, 6-1.202, 6-1.204, 6-1.206, and 6-1.207, of this chapter, upon making application for a license, shall deposit with the Director the amount of one hundred dollars ($100.00) or a savings and loan certificate and share in a form approved by the City Attorney a guarantee that the license tax will be paid. Said deposit or savings and loan certificate and share shall be refunded:

(a) At the expiration of six (6) months from the first of the next ensuing quarter, provided, however that no refund or deposit or savings and loan certificate and share shall be made unless all charges imposed under the terms of this chapter shall have been paid and all reports required by this chapter shall have been filed with the Director on or before the delinquent date for two (2) consecutive quarters.

(b) Upon cessation of business in the City, providing all charges imposed by this chapter shall have been paid and final reports required by this chapter shall have been filed.

(c) At the expiration of one (1) year from the first of the next ensuing year, provided, however, that no refund of deposit or savings and loan certificate and share shall be made unless all charges imposed under the terms of this chapter shall have been paid and all reports required by this chapter shall have been filed with the Director on or before the delinquent date for the previous year.

Provided further that the Director may apply said deposit or savings and loan certificate and share, or any portion thereof to the business license tax or other taxes due the City from said business; and provided further that the Director may declare said deposit or savings and loan certificate and share forfeited for failure to report and pay the liability to the City within six (6) months after the report becomes delinquent. Such forfeiture shall not relieve or excuse the licensee from payment of the balance of license tax due and unpaid.

Every change in ownership of a business shall be construed as the commencement of a new business by the owner, and shall require the payment of a license tax and the deposit of one hundred dollars ($100.00) as above stated or a savings and loan certificate and share. The Director may waive the deposit or savings and loan certificate and share requirements for a new or additional business operated by a person previously licensed under this chapter, providing said person has had a satisfactory experience in payment of license taxes to the City.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

An additional cost is a sum of money payable to City of Modesto for a taxpayer's failure to comply with the provisions of Section 6-1.111 of this chapter. Such costs shall be as follows:

(a) Delinquency, Time Value of Delinquent Sum. To all delinquent license taxes there shall be added an additional sum of five (5) percent of the amount of taxes due per month or fraction thereof until paid; the maximum additional sum imposed on any one delinquency shall not exceed twenty-five (25) percent of the amount of taxes due.

(b) Fraud. If the Director determines that the nonpayment of any license tax due under this chapter is due to fraud, a charge of twenty-five (25) percent of the amount of the tax may be added thereto in addition to the sums set forth in subparagraphs (a) and (d) of this section.

(c) Additional Costs Merged with Tax. Every cost imposed under the provisions of this section shall become a part of the tax herein required to be paid.

(d) The costs/additional sums described herein are cumulative and potentially in addition to those found in the California False Claims Act at California Government Code Section 12650, et seq. as it currently exists, and as that Act may be interpreted or amended in the future.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

The Director may waive or refund additional costs assessed on delinquent license tax in his/her sound discretion, for good cause shown. He/she may also refund taxes in an amount less then twenty thousand dollars ($20,000.00) under the same circumstances. Any aggrieved person may appeal the final decision of the Director to the City Council.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

In any action brought under or arising out of any of the provisions of this Code or of any ordinance imposing a license tax, the fact that a party thereto represented himself as engaged in any business or calling for the transaction of which a license is required, or that such party exhibited a sign indicating such business or calling shall be conclusive evidence of the liability of such party to pay a license tax for such business.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

It shall be the duty of the Director, and he/she is hereby directed to enforce each and all of the provisions of this chapter, and the Police Chief shall render such assistance in the enforcement hereof as may from time to time be required by the Director or the Council.

The Director in the exercise of the duties imposed upon him/her hereunder, and acting through his/her deputies or duly authorized assistants, 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.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

The amount of any license tax and interest, additional cost or other charge imposed by the provisions of this chapter shall be deemed a debt to the City. An action may be commenced in the name of said City in any court of competent jurisdiction, for the total amount of any delinquent tax and additional sums authorized by this section, or in this chapter.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

All remedies prescribed in 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 hereof.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)

No person shall knowingly or intentionally misrepresent to any officer or employee of this City any material fact in procuring the license or permit herein provided for.

(Added by Ord. 3266-C.S., § 1, effective 9-26-02)