Montclair Municipal Code Art. II Exemptions

This chapter shall not be construed to require the payment of a license fee by any person engaging in business when said person or business is exempt by virtue of the Constitution or applicable statutes of the United States or of the State of California, or by any ordinance of the City of Montclair.

(Prior code § 3-1.201)

A. Interstate/Foreign Commerce. No license fee provided for by this chapter shall be so applied as to impose an undue burden upon or unlawful interference with interstate or foreign commerce. Where a licensee or applicant for a license believes a license fee places an undue burden upon or unlawfully interferes with interstate or foreign commerce, such person may apply to the collector for an exemption of the fee. Application for exception of the fee shall be made during application for a license. The licensee or applicant for a license shall, by sworn statement and supporting testimony, demonstrate to the collector the interstate or foreign commerce character of the business entitling the licensee or applicant to such exemption. The statement shall contain the name and address of the company or firm for which the orders are to be solicited or secured; the name and address of the nearest local or state manager, if any; the kind of materials or merchandise bought or sold in commerce; the place from which the same are to be shipped or forwarded; the method of solicitation or taking orders; the address of any warehouse, factory or plant within the state; the method of delivery; the name and address of the applicant for the exemption; and any other information required by the collector to establish such claim of exemption. The collector shall then conduct an investigation to determine the facts and, if warranted, issue a fee-exempt license.

B. Banks. No license fee shall be required of or from any banks or financial corporations to the extent that the City may not levy a tax upon them pursuant to the provisions of Section 23182 of the California Revenue and Taxation Code.

C. Insurance Companies. No license fee shall be required of any insurance company pursuant to the provisions of Section 12204 of the Revenue and Taxation Code.

D. Disabled Veteran. No honorably discharged veteran who is physically disabled shall be required to pay a license fee when such payment would impose an undue burden on said disabled veteran. An honorably discharged veteran who can produce evidence attesting to such disability and discharge status, and who provides a sworn statement attesting to the nature of the undue burden a business license fee would impose, may distribute circulars and peddle and vend any goods, wares or merchandise owned, except alcoholic beverages, without payment of a business license fee.

E. City Services. No license fee shall be required of any vendor performing services to the City in which the aggregate value of all City payments to the vendor during the calendar year is Five Thousand (5,000) Dollars or less and the vendor is engaged in no other business within the City. If the vendor is engaged in other business within the City, the vendor shall be required to obtain a license. Additionally, a supplier delivering materials in connection with a contract with the City and for use on a City project is not required to obtain a business license unless otherwise provided in the contract.

F. Delivery by Common Carrier. A seller located outside the City merely delivering goods into the City by means of common carrier is not required to obtain a business license provided it engages in no other business activities in or with the City. If a seller performs other business activities in the City in addition to delivering goods by common carrier, the seller must obtain a business license.

(Ord. 99-791 Exh. A (part); prior code § 3-1.202)

(Ord. No. 13-940, § 1, 1-6-14)

A. Nonprofit and Charitable Organizations. Except as otherwise provided, this chapter shall not be deemed or construed to require the payment of a license fee to engage in any business operated for nonprofit purposes where such business is conducted, managed or carried on by and/or only for the benefit of any nonprofit organization, including fraternal societies, orders or organizations, religious, charitable, philanthropic, scientific, literary or educational organizations, amateur sports or humanitarian organizations, civic leagues, social welfare and employees' organizations, nonprofit pleasure and recreation clubs, political organizations, home owners' associations, and military, federal, state, county or municipal organizations. The collector shall require any information or evidence necessary to establish nonprofit status.

B. Public Utilities. This chapter shall not be deemed or construed to require payment of a license fee by any public utility which pays to the City a franchise tax; provided, that a license fee shall be required for any retail sales conducted in the City by such public utility. Where a license fee is imposed on a public utility, it shall not differ from the rate imposed on mercantile, manufacturing and other business corporations.

C. Employees of Licensees. Except as otherwise provided, no person acting solely as an employee or as the direct representative of a business which holds a business license shall be required to pay a business license.

(Prior code § 3-1.203)

Any person claiming an exemption pursuant to this chapter shall file a sworn statement with the collector staring the facts upon which said exemption is claimed; in the absence of such statement substantiating the claim, such person shall be liable for the payment of the appropriate business license fee as set forth by resolution. The collector shall, upon verification of the information contained in the sworn statement, issue a license to such person desiring exemption. Upon information that the licensee is not entitled to the exemption, the collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license and shall require the licensee to pay the amount of the license fee determined to be due the City. Nothing contained in this chapter shall be construed to exempt any person from complying with any and all other applicable federal, stare or local laws.

(Prior code § 3-1.204)