Monrovia Municipal Code Ch. 5.04 General Provisions

This chapter shall be known and referred to as the “Business License Code” of the city.

(`83 Code, § 5.04.010)

It is the intent of the City Council, by the adoption and amendment of the provisions of this chapter, to provide regulatory provisions only, with regard to specific businesses, as set forth in this chapter and to prescribe a schedule of business license taxes, for revenue purposes only, for all businesses, in the amounts and manner as set forth in this chapter. In the event that any business regulated by the provisions of this chapter which is now or hereafter declared by appropriate legal authority to be regulated by the laws of the state to the exclusion of the right of regulations by this city, the provisions of this chapter which are regulatory in nature shall not be deemed to apply to such business or businesses, except that the imposition of the business license tax as set forth in this chapter shall, notwithstanding such determination, apply thereto.

(`83 Code, § 5.04.020)

For the purposes of this title, the following words and phrases shall have the following meanings, unless it is apparent from the context that a different meaning is intended:

ADVERTISING VEHICLE. The business of operating upon the streets any motor or other vehicle equipped with music or a musical device, loudspeaker or other device for attracting attention by sound, for commercial advertising purposes.

APARTMENT HOUSE. Shall be as defined in the building code.

BASIC BUSINESS LICENSE TAX. The annual tax established by resolution of the City Council which is applicable to all businesses except those businesses for which specific tax rates have been determined. The basic business license tax shall consist of a lump sum tax and an incremental charge per additional employee.

BUILDING CODE. The Uniform Building Code, as adopted by § 15.04.010.

BUSINESS. The conduct of any enterprise, trade, calling, vocation, profession, occupation, including but not limited to the renting or leasing of apartments located within the city, or any other means of livelihood carried on within the city, whether or not the same has a fixed place of business in the city.

BUSINESS BY VEHICLE. The business of operating any motor vehicle, wagon or any other vehicle for the purpose of transporting, selling or repairing of goods, wares, merchandise or other personal property of any kind from such vehicle, or for the purpose of soliciting for work, labor or services to be performed at a residence or place of business of the consumer or to be performed upon goods, wares, merchandise or other personal property of such consumer, which are to be taken, for such purpose, to a plant or establishment inside or outside of the city. BUSINESS BY VEHICLE shall not be deemed to include the delivery or pickup of goods, wares or merchandise as an incident to the conduct of another business.

BUSINESS LICENSE TAX or TAX. A business license tax imposed pursuant to the provisions of this chapter by reason of the conduct of business within the city.

CHIEF. The duly appointed, acting and qualified Chief of Police of the city, or his authorized deputy.

• CITY ATTORNEY. The duly appointed, acting and qualified City Attorney of the city.

• CITY MANAGER. The duly appointed, acting and qualified City Manager of the city.

• COIN. Any slug, token, plate, disc, plug, key, check or other device or thing of value.

COMMERCIAL AND INDUSTRIAL PROPERTY RENTAL BUSINESS. Owning and renting or leasing to another person or entity any non-residential real property, building, structure or portion thereof for the commercial or industrial purposes of the renter or lessee.

CONDUCT. The conducting, managing or carrying on of a business in any capacity.

CONTRACTOR. Any person licensed, or required to be licensed, as such, by virtue of the provisions of the Cal. Business and Professions Code.

COUNCIL. The City Council of the city.

EMPLOYEE. A person engaged in the operation or conduct of any business, whether as owner, any member of the owner's family, partner, agent, manager, solicitor, and all other persons employed or working in connection with the business.

ENGAGED IN BUSINESS. The operating, conducting, managing or the carrying on of any business in the city, as owner, officer, agent, manager, employee, servant or lessee, whether or not a profit or gain therefrom is actually made.

GARDENER. An individual who maintains landscaping by providing such services as mowing lawns, removing dead vegetation, watering, raking, or planting and fertilizing vegetation. A GARDENER as defined herein shall not include individuals who remove or trim trees, install irrigation systems, or who perform other than maintenance services.

GROSS RECEIPTS. The total amount received as and for the sale price of all goods, wares and merchandise sold and/or the total amount charged and received for the performance of any act, service or employment of whatever nature, for which a charge is made or credit allowed, whether or not such act, service or employment is done as part of or in connection with the sale of materials, goods, wares or merchandise or the rendition of personal services. 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 property sold, the materials used, labor or service costs, interest paid or payable, losses or other expenses whatsoever attributable to sale activities or personal services.

HOTEL. Shall be as defined in the Building Code.

ITINERANT VENDOR. Any person, other than a sidewalk vendor operating with a valid permit issued in accordance with Chapter 5.98, who engages in a temporary or transient business in the city, selling goods or any other things of value, with the intention of engaging in such business in the city for a period of not more than 120 days, and who, for the purpose of engaging in such business, hires, leases, or occupies any room, building or other place for the exhibition or sale of goods or other things of value. If the place in which a business is conducted is hired, leased, or occupied 120 days or less, such fact shall be presumptive evidence that the business conducted therein is a temporary or transient business.

LICENSE. A business license issued pursuant to the provisions of this chapter.

LICENSE COLLECTOR. An officer or employee of the city who is appointed as the city's License Collector, whose primary duty is to enforce the provisions of this chapter.

LICENSEE. A person holding a valid business license issued pursuant to the provisions of this chapter.

LODGING HOUSE. Shall be as defined in the Building Code.

MECHANICAL AMUSEMENT DEVICE. Any machine or device which, upon the insertion of a coin, slug or token in any slot or receptacle attached to the machine or connected therewith, operates or which may be operated for use as a game, contest or amusement, or for the dispensing of music, or which may be used for any such game, contest, amusement or music, and which does not contain a payoff device for the return of slugs, money, coin, checks, tokens or merchandise. MECHANICAL AMUSEMENT DEVICE shall also mean the use of any microscope, phonograph or any kinetoscope, giograph, projectoscope or other instrument or machine of like character, lung tester, muscle tester, galvanic battery, weighing machine, ball, knife or ring throwing, and all devices or contraptions of a similar nature. Each such device or contraption shall be considered and licensed as a separate business.

MOBILE VENDOR. Any person engaged in the business of selling food in a fully self contained commercial motor vehicle. This includes retail ice cream, frozen desserts and candy products, hot and cold foods, fruits, vegetables and similar food products.

MOTEL. Shall be as defined in the Building Code.

OUT-OF-TOWN CONTRACTOR. A contractor which does not maintain a fixed place of business in the city.

PEDDLER. Any person, other than a sidewalk vendor operating with a valid permit issued in accordance with Chapter 5.98, who goes from house to house, place to place, or in or along the streets within the city selling or making immediate delivery, or offering for sale and immediate delivery any goods, wares or merchandise or anything of value, in possession of the peddler, or offering to perform personal services to persons other than manufacturers, wholesalers, jobbers or retailers in such commodities.

PERMIT. A permit required to be issued prior to the conduct of any business referred to in this chapter.

PERMITTEE. A person holding a valid permit issued pursuant to the provisions of this chapter.

PERSON. Any individual, corporation, partnership, association, incorporated or not, Massachusetts business or common law trust, societies, joint venture or other associations of individuals transacting or conducting any business in the city.

PREMISES. All land, buildings, structures, equipment and appurtenances connected with, or used in, conducting any business.

RESIDENTIAL RENTAL BUSINESS. Any room, group of rooms, building, or structure designed to be rented or leased to a tenant for residential purposes. Such units shall include hotel and motel rooms, apartments, and mobile home spaces located in recognized mobile home parks and used for dwelling purposes; provided, however, that an owner-occupied unit shall not be a residential rental unit. It is presumed that every unit owned but not occupied by the owner is a residential rental unit.

SOLICITOR. Any person who engages in the business of going from house to house, place to place, in or along the streets within the city, selling or taking orders for goods, wares or merchandise, or other things of value for future delivery, or for services to be performed in the future.

SPECIAL BUSINESS ACTIVITIES. Business activities which are conducted on a periodic or short-term basis on either private or public property. SPECIAL BUSINESS ACTIVITIES shall include such events as sidewalk sales; street sales during special events such as carnivals, fiestas and street fairs; tent sales; and other similar events. SPECIAL BUSINESS ACTIVITIES shall not include activities where no business is conducted. SPECIAL BUSINESS ACTIVITIES shall not include peddlers, solicitors, and itinerant vendors.

VENDING MACHINES. Any self-service device or machine available for public use which, upon insertion of coins or tokens, will dispense a service, food, drink or other type of merchandise.

WRITTEN NOTICE. A written communication which shall be addressed to the party involved, at his or her last known address, postage prepaid, deposited in the course of transmission of the United States Postal Service.

(`83 Code, § 5.04.030) (Ord. 93-21 § 1, 1993; Ord. 93-25 § 1, 1993; Ord. 2008-07 § 2, 2008; Ord. 2010- 20 § 1, 2010; Ord. 2015-07 § 2, 2015; Ord. 2015-15 § 3, 2015; Ord. 2017-05 § 4, 2017; Ord. 2018-12 § 2, 2019)

Persons required to pay a tax pursuant to this chapter shall not be relieved from the payment of any tax for the privilege of doing such business required under any other applicable law of the city, and such persons shall remain subject to all other applicable regulatory provisions of other ordinances and provisions of this code, except as expressly provided in this chapter.

(`83 Code, § 5.04.040)

Neither the adoption of this chapter nor its superseding of any portion of any other law of the city shall in any manner be construed to affect the pending prosecution for the violation of any other such law committed prior to the effective date of this chapter, being June 6, 1978; nor shall the same be construed as a waiver of any license or any penal provision applicable to any such violation; nor shall the same be construed to affect the validity of any bond or cash deposit of tax imposed, whether or not paid, required by any other such law.

(`83 Code, § 5.04.050)

(A) Exemption. Licenses shall be issued, but no tax shall be required for, of or from the following:

(1) Those persons engaged in a business exempted from the payment of a tax imposed by the provisions of this chapter, by virtue of the Constitution and the laws of this state or of the United States;

(2) Any institution or organization which conducts a business wholly for the benefit of charitable, religious, educational or benevolent purposes and from which profit is not derived either directly or indirectly by any person;

(3) Any employee or direct agent of a licensee conducting the business of such licensee;

(4) To conduct a sale at public auction of articles of personal property belonging to residents of the city, which articles are not part of the stock-in-trade or any part of such stock-in-trade of any business; or any such auction which is conducted pursuant to appropriate judicial authority;

(5) Every honorably discharged or honorably relieved soldier, sailor or marine of the United States who is physically disabled, shall not be required to pay a business license tax for the peddling or vending of any goods, wares, or merchandise owned by the veteran, except spirituous, malt, vinous or other intoxicating liquor, providing that said persons exhibit to the License Collector evidence of such character as shall satisfy the License Collector that the applicant is a voter of this state and has received an honorable discharge from the United States military and has a service-connected disability;

(6) Farmers, poultrymen and horticulturists shall not be required to pay a business license tax for the privilege of selling exclusively their own produce. This exemption shall not apply to nurseries or other commercial establishments who buy goods for resale as well as selling their own produce.

(7) Café musician. For the purposes of this section, a CAFÉ MUSICIAN shall be defined as any person playing a musical instrument in any place or establishment where food or alcoholic beverages are sold, offered for sale, or given away, who shall be an employee, or independent contractor, of such place or establishment. CAFÉ MUSICIAN shall not include an owner, manager or operator of such place or establishment;

(8) Real estate auctioneer. A REAL ESTATE AUCTIONEER shall be any real estate auctioneer whose business is limited exclusively to auctioning real estate; provided, however, that such real estate auctioneer shall not be exempt from the provisions of this section if the auctioneer maintains a permanent place of business in the city;

(9) Those persons engaged in business whose annual gross sales or receipts for each of the preceding three years is less than $5,000 per year as verified by certified copies of state and federal income tax returns.

(B) Procedure.

(1) Any person claiming an exemption pursuant to this section shall file a verified statement with the License Officer stating the facts upon which exemption is claimed. The License Officer, upon proper showing contained in the verified statement, shall issue a license to such person claiming the exemption under this section without payment to the city of the tax required by this chapter.

(2) The burden of proof in all cases shall be upon the applicant to establish pursuant to the provisions of this chapter a valid basis for the exemption for the payment of a tax imposed by this chapter.

(3) If the License Officer denies issuance of an exempt license for the reason that the applicant has not qualified for such exemption pursuant to the provisions of this chapter, the License Officer shall, within five days of such decision, give the applicant written notice of such denial. The applicant shall have ten days after notice of such denial to appeal in writing to the Development Review Committee. Upon receipt of a timely filed written appeal the Development Review Committee shall consider all applicable documents and staff reports relating to the matter and shall permit the applicant either in writing or in person to present the factual basis claimed for such exemption. The Development Review Committee shall determine, based upon such evidence, whether or not the applicant is qualified for such exemption, and shall make findings of fact thereon. The Development Review Committee shall give the applicant written notice of such decision within ten days from the completion of the review and/or hearing of the appeal.

(4) Within ten days after the mailing of such notice of decision by the Development Review Committee the applicant may appeal the decision of the Development Review Committee to the City Council. The appeal to the City Council shall be filed in writing with the City Clerk and shall state the basis of the appeal. Upon receipt of such appeal, the City Clerk shall place the appeal on the agenda of the City Council for hearing. The City Council shall conduct a hearing and shall consider all relevant evidence including but not limited to all applicable staff reports and documentation submitted by the applicant. The applicant shall be given a reasonable opportunity to be heard in conjunction with such hearing. The City Council shall make findings of fact upon conclusion of the hearing and shall determine whether the exemption should be granted. The applicant shall be given written notice of the decision of the Council and said decision shall be final and conclusive.

(`83 Code, § 5.04.060) (Ord. 82-42 §§ 1, 2, 1982; Ord. 82-43 §§ 1, 2, 1982)

The issuance of a license or permit pursuant to this chapter shall not entitle the licensee or permittee to engage in any business or other activity in violation of any other applicable law.

(`83 Code, § 5.04.070)

No license or permit issued under this chapter shall be transferred or assigned, nor shall such be construed as authorizing any person other than the licensee or permittee to engage in the licensed business, except as provided in this chapter.

(`83 Code, § 5.04.080)

In no event shall any mistake made by the License Collector in stating the amount of the tax or receiving such tax prevent or prejudice the collection by the city of the amount of tax actually due, together with any penalty applicable thereto, and all costs of collection, from any person for conducting any business activity without a license or for refusing to pay the taxes specified in this chapter. Overpayments, erroneous or duplicate payments shall be reimbursed upon approval of the City Council.

(`83 Code, § 5.04.090)

Any person engaging in business in the city without first obtaining a business license and paying all taxes due therefor or any person failing to pay a business license tax when due shall be assessed a penalty of 20% of the unpaid amount of such tax on the last calendar day of each month after the due date thereof. In no event shall any penalty assessed under this chapter exceed an amount equal to 100% of such license tax.

(`83 Code, § 5.04.100) (Ord. 93-21 § 2, 1993)

The amount of any tax, penalty and filing and processing fee imposed under this chapter shall be deemed to be a debt to the city. Any person carrying on any business without first having procured a license from said city to do so shall be liable to the city for an amount equal to the amount of such tax, penalty and filing and processing fee, if any, together with all appropriate costs of collection, including reasonable attorney fees, if litigation is reasonably required to collect the same.

(`83 Code, § 5.04.110)

All amounts due and unpaid, as and for business license taxes, penalties, filing and processing fees, and all appropriate costs of collection, including reasonable attorney fees, shall be collectible by civil actions, filed in the name of the city. All remedies prescribed or permitted by law 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.

(`83 Code, § 5.04.120)

The License Collector and any city police officer shall have and may exercise the authority to enter, free of charge, at any time, any place of business for which a license and/or permit is required under this chapter, and to demand the exhibition of a current license and/or permit by any person engaged or employed in the transaction of such business. Failure to exhibit such license and/or permit upon demand shall be deemed to be a violation of the provisions of this chapter.

(`83 Code, § 5.04.130)

The conviction and punishment of any person having engaged in business without a license and/or permit, as required by this chapter, shall not excuse or exempt such person from the payment of any business license, tax, penalty, any applicable filing and processing fee, and costs of collection due and unpaid at the time of such conviction.

(`83 Code, § 5.04.140)

Any person violating any provision of this chapter is guilty of a misdemeanor and shall be subject to the penalty therefor as set forth in § 1.16.010. Any such person is guilty of a separate offense for each and every day during which or a portion of which a violation of the provisions of this chapter is committed, continued or permitted to be continued by such person.

(`83 Code, § 5.04.150)

Any business required under this title to have a regulatory license or permit prior to operation of the business shall be denied the license or permit, if the business is an illegal or unlawful business or practice under the laws of the United States, the laws of the State of California, the federal and state constitutions, this code, or any other applicable law, ordinance, rule or regulation; or involves the furnishing, sale, or provisioning of any service, good, or product that is illegal or prohibited under the laws of the United States, the laws of the State of California, the federal and state constitutions, this code, or any other applicable law, ordinance, rule or regulation; or the business, or any part, conduct, or aspect of the business, is prohibited in the particular location or zone by any law, statute, rule, or regulation.

(Ord. 2008-07 § 3, 2008)

(A) A permit for special business activities or special event permit shall be issued by the Department of Community Development within a reasonable time following written application, if the Director of Community Development or his or her designee determines that:

(1) The applicant has not made a material misrepresentation in the permit application;

(2) The applicant has not materially violated conditions of a previous city permit, or the ordinances or regulations of the city;

(3) The special event will not conflict with a previously approved special event;

(4) The special event will not exceed the city’s or the applicant’s ability to provide sufficient personnel to ensure the event will be conducted without any adverse impact on public health, safety, or welfare;

(5) Sufficient parking and loading will be available to accommodate any special event that results in a change in occupancy classification, exceeds occupancy limits, or converts parking spaces to uses other than parking;

(6) The special event will not result in substantial adverse impacts on pedestrian and vehicular circulation; and

(7) The special event will not have a substantial adverse impact on the public health, safety or welfare.

(B) The Director of Community Development or his or her designee may impose reasonable written conditions on such a permit as are necessary to enable the making of all written findings above.

(C) Applicants for a permit shall pay the applicable permit fee established by resolution of the City Council.

(D) The decision of the Director may be appealed pursuant to the procedure and time limitations for appeals set forth in Chapter 5.10. The decision of the Development Review Committee on any such appeal timely filed shall be final.

(Ord. 2012-08 § 5, 2012)