Montague Municipal Code Ch. 5.04 Business License Taxes

BUSINESS LICENSE TAXES

Sections:

• 5.04.010 Definitions. 5.04.020 License tax imposed. 5.04.030 License required. 5.04.040 Applications for new business licenses. 5.04.045 Tax according to gross sales and for various miscellaneous businesses. 5.04.050 Application—Filing and contents. 5.04.060 Application—Disposition by clerk—Hearing. 5.04.061 Prerequisites to issuance—Certification from fire chief. 5.04.062 Prerequisites to issuance—Health certificate. 5.04.063 Prerequisites to issuance—Places selling intoxicating liquors. 5.04.064 Prerequisites to issuance—Proof of state license or permit. 5.04.065 Prerequisites to issuance—Proof of coverage for Workers' Compensation or exemption therefrom.

• 5.04.070 Contents of license certificates. 5.04.080 Displaying license certificates. All current license certificates shall be posted or kept in a manner as follows.

• 5.04.090 Transferability. 5.04.100 Terms of licenses. 5.04.110 Revocation. 5.04.120 Suspension—Generally. 5.04.121 Suspension—During suspension or revocation of state licenses.

• 5.04.122 Suspension—During revocation, suspension or refusal of health permit. 5.04.123 Suspension—During suspension or revocation of transient occupancy registration certificate.

• 5.04.130 Rentals or concessions on licensed premises. 5.04.140 Fixed place of business when services performed outside city. 5.04.150 Proprietors of roominghouses, apartment houses and trailer parks. 5.04.200 Exemptions—Interstate or foreign commerce. 5.04.201 Exemptions—Persons exempted by state law. 5.04.202 Exemptions—Nonprofit or charitable organizations. 5.04.203 Exemptions—Employees of licensed businesses. 5.04.204 Exemptions—Proprietors of rental or lease properties. 5.04.205 Exemptions—Issuance to disabled veterans. 5.04.210 Information required with applications for licenses pertaining to motor vehicles. 5.04.220 Duties of city clerk. 5.04.230 Relation of chapter to other regulatory provisions. 5.04.240 Purpose—Payment prerequisite to engage in certain businesses. 5.04.250 Separate licenses. 5.04.300 When fees due and payable—Delinquency charges. 5.04.310 Proration generally. 5.04.320 License taxes and penalties constitute debt to city—License fees set by resolution.

• 5.04.330 Mistakes by clerk—Prorating taxes—Refunds. 5.04.340 Information confidential. 5.04.400 Businesses conducted in city parks. 5.04.430 Transfer of business. 5.04.500 Enforcement.

• 5.04.540 Penalty for violation—Misdemeanor.

For the purpose of this chapter, the following words and phrases, when used in this chapter, shall have the following meaning, unless otherwise specified:

A. “Goods, wares and merchandise” means stock in trade, and personal property of every name and nature, carried on hand for sale or offered for sale.

B. “Peddler” means and includes every person who travels from place to place, doorway of any room or building, unenclosed vacant lot or parcel of land, who sells, or offers for sale, any goods, wares or merchandise in his possession.

C. “Person,” unless otherwise indicated by the text, means any domestic or foreign corporation, firm, partnership, association, club, organization, cooperative, business trust, society and individual, whether acting as principal, agent, partner, corporation, officer, clerk, driver or other employee.

D. Words of the singular number shall include the plural number, and words used in the masculine gender shall include the feminine gender.

E. “Business” includes all trades, professions, vocations, occupations, callings, operations, rendering of service, conduct of fairs, trade or commerce, of whatever kind or nature, engaged in for profit, directly or indirectly.

F. “Gross sales” refers to the gross total amount of receipts from the sales and/or services of any kind or nature received in the conduct or operation of such business or rendering of services. Sales tax and receipts from sales of alcoholic beverages shall be excluded from computation of gross sales.

G. “Fixed place of business” means the premises occupied in the city for the particular purpose of conducting a business and regularly kept open for that purpose with a competent person in attendance for the purpose of attending to the business.

• H. “Newly established business” means a business in existence and operation for less than twelve months.

I. “Employee” means all persons engaged in the operation or conduct of any business, whether as owner, any member or owner, any member of owner's family, partner, agent, manager, solicitor, broker, salesperson and any and all other persons employed or working in the business.

J. “Vehicle” means every device in, upon or by which any person or property is or may be transported or drawn upon a public street or highway. (Ord. 89-12 (part), 1989; Ord. 54 § 2, 1937)

For the purpose of regulating the various businesses, trades and callings carried on within the limits of the city and also for producing revenue to carry on the public functions of this city, the license tax for each such business, trade or calling is fixed as specified in this chapter, and it is unlawful to carry on such business in this city without paying such license tax. (Ord. 54 § 1, 1937)

No person shall commence or carry on in the city any business without first having procured from the city a license to do so, or without complying with all other applicable regulatory measures contained in this code and all other ordinances and laws of the city, the county and the state. (Ord. 89-12 (part), 1989; Ord. 54 § 6 (part), 1937)

Every person desiring to enter into business in the city shall pay to the city clerk at the time of application such sum as may, from time to time, be set by the city council by resolution for this purpose. (Ord. 89-12 (part), 1989; Ord. 54 § 6 (part), 1937)

A. Every person renewing a business license shall be required to pay a license tax based upon gross sales in such amounts and upon such conditions as may be, from time to time, set by the city council by resolution for this purpose.

B. Every person who operates a circus, menagerie or carnival or a dog or pony or tent show or is a peddler or solicitor or operator of a taxicab shall be required to pay a license tax or fee as may, from time to time, be set by the city council by resolution for this purpose. (Ord. 89-12 (part), 1989)

Applications for licenses under this chapter shall be filed with the city clerk by each prospective licensee on a form provided therefor. Such application shall supply the following and any other pertinent information the city clerk may require:

A. A full identification of the applicant and all persons directly interested in the business or the proceeds therefrom. Such identification shall include the following:

1. If a corporation, the names and addresses of the president, secretary and directors thereof and the address of its principal place of business,

2. If a partnership, the names and addresses of all partners, whether active or inactive or special or limited partners and the address of its principal place of business,

3. If some other form of organization other than a corporation or partnership, the exact nature thereof, the addresses of all persons interested in the management, operation or profit thereof;

B. The location of the proposed business and the name and address of the owner of the premises if the proposed business is to operate in or from a fixed place within the city, or if it is not to do so, then the location of the place from which the proposed business will be operated;

C. The exact nature of the proposed business and the name under which it will be operated. (Ord. 89-12 (part), 1989; Ord. 165 (part); Ord. 54 § 12, 1937)

The city clerk may approve any application for a license and issue to the applicant the license certificate therefor, or, at the clerk's discretion, any application may be referred to the planning commission, which shall either approve the application or order that a public hearing be held on the matter. Such meeting shall be held after at least three days' notice thereof to the applicant, and may be continued from time to time as the planning commission may direct. If, after such hearing, a majority of the commission present shall be of the opinion that the applicant is not a proper person for the conduct of such business or that the operation thereof would be detrimental to the public health, peace, morals, safety or general welfare, the license shall be denied; otherwise it shall be granted. (Ord. 89-12 (part), 1989; Ord. 54 § 7(a), 1937)

Before issuing the first license certificate for a business to be operated in or from a fixed place within the city, the city clerk shall require from the applicant a certificate from the chief of the fire department of the city that the premises have been inspected and that all applicable fire control or prevention regulations have been complied with. (Ord. 89-12 (part), 1989)

Before granting the first license or effecting the transfer of any license for any business to engage in the sale, storage, processing, preparing, serving or handling of foods or food products or other articles for human or animal consumption, or any barbershop or beauty shop, public bath or massage parlors, or for any hotel, motel, auto court, trailer court, apartment house or roominghouse having three or more units for human occupancy or for any garbage or rubbish disposal service or cesspool or septic tank cleaning service, the city clerk shall require the applicant to exhibit a current health permit from the county health department for the conduct of such business. (Ord. 89-12 (part), 1989)

Before granting the first license for or effecting the transfer of any license for any business where intoxicating liquors are to be or are sold for consumption on the premises, or any pool hall, card game or other place of amusement within the city, the city clerk shall require from the applicant a certificate from the county sheriffs department that the conduct of such business at the proposed location will not be detrimental to the public peace, morals, health, safety or general welfare. (Ord. 89-12 (part), 1989)

Before issuing any license certificate covering any business, profession, occupation, or operation for which a permit, license or certificate of registration is required by the state, the city clerk may require that the applicant produce and exhibit a valid, current, state permit, license or certificate of registration therefor. (Ord. 89-12 (part), 1989)

Before issuing or renewing any license certificate covering any business, profession, occupation or operation for which a permit, license, or certificate of registration is required by the state, the city clerk shall require a certificate of Workers' Compensation Insurance for the period of operation or a certificate establishing exemption from the Workers' Compensation Insurance Laws of the state. (Ord. 92-02, 1992)

Every license issued under this chapter shall contain upon the face thereof the following:

• A. The name of the licensee;

• B. The amount of the license tax collected, if any;

• C. The period of time for which the license shall be in effect;

• D. The nature of the business licensed;

• E. The location where such business is to be conducted. (Ord. 89-12 (part), 1989; Ord. 54 § 7(b), 1937)

All current license certificates shall be posted or kept in a manner as follows.

• A. Posted in a conspicuous place within view of the customers if the business is operated from a fixed place of business within the city;

• B. Posted in an easily visible place in the driver's compartment of each licensed motor vehicle;

• C. If neither subsection (A) nor subsection (B) is applicable, then upon the person of the licensee. (Ord. 89-12 (part), 1989; Ord. 54 § 6 (part), 1937)

All business licenses are personal to the licensee and shall not be transferred either to another operator of the business licensed or to another location or motor vehicle for the operation of the same business except by endorsement by the city clerk upon the face of the original and duplicate copies of the current license certificate of the fact of transfer. If for any reason the city clerk shall deem such transfer to be against the public interest, the clerk may refuse to make such transfer and require the proposed transferee to apply for a new license. The clerk shall charge a transfer fee as set by resolution. (Ord. 89-12 (part), 1989; Ord. 165 (part); Ord. 54 § 3 (part), 1937)

Yearly licenses begin on the first day the license is obtained. Unless a license is suspended or revoked as provided in this chapter, it shall be valid to and including the last day for which it has been issued. (Ord. 89-12 (part), 1989; Ord. 54 § 6 (part), 1937)

Any license granted under the provisions of this chapter may be revoked by the city council for any reason for which the granting thereof might have been denied. Such revocation shall be made only upon a public hearing before the city council after at least five days' notice to the licensee. Such notice shall state the ground of complaint and the time and place where the hearing will be held. If the licensee is out of the city or cannot be found within the city, then such notice shall be given to the person in charge of or conducting the licensed business. Such hearing may be continued from time to time by the city council, and its findings shall be made in writing and shall be final and conclusive in the matter. (Ord. 89-12 (part), 1989; Ord. 54 § 5, 1937)

If, in the judgment of the city clerk, sheriff's department or chief of the fire department of the city, it is necessary for the protection of the public safety, health, morals or general welfare to suspend the license of any business pending the hearing for revocation thereof, such official shall file with the city clerk a written statement that such suspension of the license is necessary and the reasons therefor. Upon receipt of such statement, the city clerk shall suspend the license of the business by endorsing upon the face of the duplicate license a notation of the suspension and the date thereof. The sheriffs department shall enforce the suspension. Such suspension may be terminated at any time by the official who caused it to be made by filing with the city clerk a written request to such effect. If no such termination is made, the suspension shall continue until the decision of the city council is given upon the matter of the revocation of the license. (Ord. 89-12 (part), 1989; Ord. 165 (part); Ord. 54 § 4, 1937)

In the event that any person or business required by the Business and Professions Code or other laws of the state to have a state permit, license or certificate of registration shall have such permit, license or certificate of registration suspended or revoked, then any business license granted to such person or business under the provisions of this chapter shall, ipso facto, be suspended and shall remain suspended until such permit, license or certificate of registration is restored to full force and effect. (Ord. 89-12 (part), 1989)

In the event that any business required by law to have a health permit from the county health department shall have such permit refused, suspended or revoked, the business license of such business shall, ipso facto, be suspended until the restoration thereof to full force and effect. (Ord. 89-12 (part), 1989)

In the event that any person or operator required by ordinance of the city or other laws to have a transient occupancy registration certificate shall have such certificate suspended or revoked, then the business license granted to such person, business or operator to so conduct such business under the provisions of this chapter shall, ipso facto, be suspended and shall remain suspended until such certificate is restored to full force and effect. (Ord. 89-12 (part), 1989)

Every person who operates any business whether upon a cost, rental or commission basis or as a concession or in rented space in or upon the premises of any other licensed business shall be required to obtain a separate and individual license therefor pursuant to the appropriate provisions of this chapter and to pay a separate license tax therefor. (Ord. 89-12 (part), 1989; Ord. 66 § 1, 1943; Ord. 54 § 3(F), 1937)

Any business servicing, processing or repairing personal property and not performing such servicing, processing or repairing at or from a fixed permanent place of business within the city shall not be deemed to be conducting its business from a fixed permanent place of business within the city, even though it has or maintains within the city an agency or place for the pickup or delivery of such personal property. (Ord. 89-12 (part), 1989; Ord. 54 § 8, 1937)

Every operator of an apartment house, roominghouse or trailer park (including the occupant of a private house who rents or offers for rent a portion thereof) shall be required to obtain a business license pursuant to the terms of this chapter. (Ord. 89-12 (part), 1989; Ord. 54 § 9, 1937)

Nothing contained in this chapter shall be construed as imposing a license tax on or otherwise regulating or restricting any business which is exclusively engaged in interstate or foreign commerce or any portion of a business which portion is engaged in interstate or foreign commerce; provided, that every person claiming to be entitled to such exemption shall me with the city clerk a verified statement disclosing the interstate or other character of the business upon which the party bases their claim for such exemption, in such form as may be required by the city clerk. The city clerk may determine whether the applicant is entitled to the exemption claimed or may refer the same to the city attorney for such determination. The city clerk shall issue to the applicant a license certificate for such business or portion of a business which is entitled to exemption under this chapter without requiring the payment of a license tax therefor. (Ord. 89-12 (part), 1989)

Nothing contained in this chapter shall be construed as imposing a license tax on or otherwise relating or restricting any business which is made exempt therefrom by the Constitution of the state or any statute of the state, including any person exclusively engaged in the manufacture, sale, purchase, possession or transportation of intoxicating liquors or as an insurance agent or broker or doing express business on any railroad or stage line or as a telegraph or telephone company, or in the transmission or sale of electricity, or as a bank, including national banking associations, or as a commercial traveler whose business is limited to goods, wares and merchandise sold or dealt in at wholesale. (Ord. 89-12 (part), 1989)

A. Nothing contained in this chapter shall be construed as imposing a license tax on any business or activity conducted or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any person.

B. No license tax shall be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subject within the city whenever the receipts of any such activity are to be appropriated to any church or school or to any religious or benevolent purpose.

C. No license tax shall 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 net receipts of any such activity are to be appropriated for the purpose and objects for which profit is not derived, either directly or indirectly, by any individual, firm or corporation; provided that all of the activities mentioned in this section shall be subject to all regulatory measures contained in this code and all other ordinances of the city. (Ord. 89-12 (part), 1989)

Except as otherwise provided in this chapter, no person who otherwise would be required to obtain a license under this chapter shall be required to do so if and so long as the person is an employee, whether for wages, salary, commission or other basis or compensation, of a business duly licensed under this chapter. (Ord. 89-12 (part), 1989)

Every owner or proprietor of a single-family dwelling which is offered for rental or as a leasehold property shall be exempt from the provisions of this chapter. (Ord. 89-12 (part), 1989)

Every honorably discharged or honorably relieved soldier, sailor or marine of the United States who served in any Indian war, the Spanish-American War and Philippine Insurrection, the Chinese Relief Expedition, World War I, World War II, the Korean War or the Vietnam War, who is physically unable to obtain a livelihood by manual labor and who is a voter of this state, may distribute circulars and hawk, peddle and vend any goods, wares or other merchandise owned by that person except spirituous, malt, vinous or other intoxicating liquor upon obtaining a license to do so which shall be issued without cost. (Ord. 89-12 (part), 1989)

Applicants for licenses pertaining to motor vehicles shall file with the city clerk a statement showing the make, body type, motor number and current state license number of such vehicle, and any license issued under this chapter for such vehicle shall not be transferred to another vehicle without compliance with Section 5.04.090. (Ord. 89-12 (part), 1989)

The city clerk shall receive and collect all license taxes and penalties that may become due under this chapter and shall prepare and issue a license certificate to every person entitled thereto. (Ord. 89-12 (part), 1989)

No regulatory measures contained in this chapter shall be construed as in any way limiting or repealing any other regulatory measures contained in this code or in any other ordinances of the city. This chapter shall be given concurrent and cumulative effect with such other provisions. (Ord. 89-12 (part), 1989)

For the purposes of revenue only and not for regulation, there are imposed upon the respective businesses specified in this chapter the business license taxes as set by resolution. No person shall engage in or carry on any such business within the city without first having paid to the city the amount of such tax, if any, together with all penalties accrued thereon. (Ord. 89-12 (part), 1989)

A. Separate license(s) shall be obtained for each place of business or branch thereof. Licenses issued hereunder shall be valid for the conduct of business only at the street address specified in the business license.

B. In the event any licensee shall engage in two or more separate and distinct businesses and each said business is completely unrelated, either upon a single or separate business site, a license shall be obtained for each business or separate business address. (Ord. 89-12 (part), 1989)

All license fees due in this chapter shall be payable in advance at the office of the city clerk and shall become due upon issuance of the license or, for any renewal, upon the anniversary date of the issuance. Delinquency upon any renewal shall occur at four p.m. on the fifteenth day following the anniversary date. To all delinquent licenses there shall be added a penalty of twenty percent of the amount of the fees due for the period. (Ord. 91-8, 1991; Ord. 89-12 (part), 1989)

No proration of any license fee due under this title shall be made for any portion of the period for which a license fee is payable. (Ord. 89-12 (part), 1989)

The amount of every license tax imposed under this chapter and the amount of every penalty imposed for violation of this chapter shall be deemed a debt to the city, and any person carrying on any business without f1fst having paid the license tax therefor, if any, shall be liable to an action in any court of competent jurisdiction for the amount of such license tax and all penalties accrued thereon. The amount to be charged as and for license fees shall be set by resolution of the city council. (Ord. 89-12 (part), 1989)

In no case shall any mistake or failure of the city clerk or the clerk's deputies or assistants to compute or collect the correct amount of any license tax or penalty prejudice or prevent the collection by the city of the full and correct amount thereof actually due. No license tax paid nor any part thereof shall be refunded or prorated; except, that any license tax, penalty or part thereof which has been erroneously assessed and collected shall be refunded by the city clerk upon approval by the city council. (Ord. 89-12 (part), 1989)

The information furnished or secured pursuant to the provisions of this chapter shall be deemed confidential in character, except that which is shown on the face of the license itself, 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 of this chapter. Unless in compliance with judicial order or as may be required for the proper administration of this chapter, the city clerk's office, its agents and employees, shall not divulge facts or information obtained in the administration of this chapter. (Ord. 89-12 (part), 1989)

Any person desiring to conduct a business in a city park shall first obtain a permit and license to do so. Such person shall pay to the city such license fee in connection therewith as may be required and set by the city council by resolution. (Ord. 89-12 (part), 1989)

The transfer of a business from one person to another shall not constitute a transfer of the license contemplated in this chapter. Every new owner shall be required to obtain a license and pay any fees or taxes due as required by the provisions of this chapter. (Ord. 89-12 (part), 1989)

It shall be the duty of the city clerk, the clerk's deputy, agents and/or employees and they and each of them are hereby directed to enforce each and all of the provisions of this chapter. Each department of the city which issues permits for work to be done shall require the production of a valid unexpired business license prior to the issuance of such a permit.

The city clerk in the exercise of the duties imposed upon the department by the provisions of this chapter and acting through the deputies or duly authorized assistants, may examine or cause to be examined all places of business including personnel records of said business in the city to ascertain whether the provisions of this chapter have been complied with. A complaint may be filed by the city clerk or any of the clerk's deputies or authorized assistants against any and all persons found to be in violation of any said provisions. (Ord. 89-12 (part), 1989)

Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any officer or employee of this city any material fact in procuring the license or permit provided for in this chapter shall be deemed guilty of a misdemeanor and shall be punishable as provided in Title 1 of this code. (Ord. 89-12 (part), 1989)