Earlier editions: 2026-09
Title 5 — BUSINESS LICENSES GENERALLY›Chapter 5.04 — BUSINESS TAXES, LICENSES AND REGULATIONS
Morgan Hill Municipal Code Art. I General Provisions and Administration
Morgan Hill Municipal Code · 2026-10 edition · updated 2026-10-04 · Morgan Hill
Cite as: Morgan Hill Municipal Code Article I · Text as of 2026-10-04
5.04.010 - Definitions.¶
For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:
A. "Auctioneer" means a person who sells or offers for sale any real or personal property at auction (exclusive of court sales of items shown on the duly authenticated inventory thereof), or who carries on the business of auctioneer, whether at a fixed place of business in the city, or not.
B. "Business" means and includes all activities engaged in or caused to be engaged in within the city including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his employer.
C. "City" means the city of Morgan Hill, California.
D. "City manager" means the city manager of Morgan Hill, California, or appointed designee.
E. "Conducting" means the commencing, conducting, operating, managing or carrying on of a business and the exercise of corporate or franchise powers, whether done as owner, or by means of an officer, agent, manager, employee, servant or otherwise, whether operating from a fixed location in the city or coming into the city from an outside location to engage in such activities.
F. "Contractor" means and includes any person who does any type of construction work for an agreed price, or who holds him or herself out to the public as in such business, or who erects, constructs, alters or repairs any building or structure for the purpose of selling or renting the same, and who does not employ therefore a regularly licensed person.
G. "Employee" means all persons engaged in the operation or conduct of any business, whether the owner, a member of the owner's family, partner, agent, manager, solicitor and any and all other persons employed or working in the business.
H. "Fee" means the fees established pursuant to Section 5.04.045.
I. "Fiscal year" means the period commencing July 1 and ending June 30, both inclusive.
J. "Fixed place of business" means a place of business regularly kept open, with someone in charge thereof for the transaction of the particular business engaged in during the hours customary to transact such business.
K. "License administrator" means the director of the finance department of Morgan Hill, California, or appointed designee.
L. "Permitting agency" means the director or head of a department issuing or enforcing each of the prerequisite approvals for or on behalf of the city or each issuing or enforcement agency of federal, state or local prerequisite approvals.
M. "Person" means any individual, firm, copartnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate or any other group or combination acting as a unit.
N. "Prerequisite approvals" means any and all approvals, permits, licenses or entitlements required under federal, state, or local law or regulations, include those required under this code, to lawfully operate the business for which an application for business license has been submitted under this chapter.
O. "Tax" means the annual, semiannual, quarterly, or daily tax required for transacting business in the city as set forth in Article III and Article IV of this chapter.
P. "Vehicle" means every device in, upon or by which any person or property is or may be transported or drawn upon a public street, excepting devices moved by human power or used exclusively upon stationary rails or tracks. A trailer shall be treated as a separate vehicle.
(Ord. No. 1971 N.S., § 1, 4-7-2010)
5.04.020 - Application.¶
A. Every business required to have a license under the provisions of this chapter shall make application therefore on such forms as maybe prescribed by the license administrator. Every business license applicant shall submit information in its application describing each business license location and type of business activity conducted at each location that is operated by the applicant.
B. Every applicant must disclose on its application any and all prerequisite approvals. The applicant must supply evidence satisfactory to the permitting agencies of the city that the applicant possesses all such prerequisite approvals.
C. The permitting agencies of the city shall be notified of each application for business license and shall verify that the applicant possesses all prerequisite approvals issued or processed by each city department.
D. Any business that transacts or carries on any business activity, contracts, sells or delivers any goods, wares or merchandise in this city for which sales or use tax is payable and is required to report any payment of sales and use tax to the state shall obtain a California State Board of Equalization license and must furnish the sales tax number on the business license application.
(Ord. No. 1971 N.S., § 1, 4-7-2010)
5.04.030 - Issuance or refusal to issue license.¶
A. All applications made pursuant to Section 5.04.020 for the issuance of a license are to be referred to the license administrator of the city, who shall have the power to determine the merits of such applications and to approve or reject the same.
B. An application may be denied if any permitting agency determines that the applicant for a license has applied for the license by misrepresentation, refused to complete all portions of the license application, or has failed to comply with one or more of the specific provisions of this chapter or any other ordinance of this city.
C. Furthermore, a business license application may be denied if any permitting agency determines, based upon substantial evidence, that the applicant has not obtained or does not currently hold each and every one of the prerequisite approvals, or alternatively, that the application did not identify certain required prerequisite approvals which the applicant does not have.
D. Within ten days of the date of notice of the denial of an application, the applicant may request in writing a hearing with the license administrator. The applicant shall file a written request for a hearing which states the specific grounds on which the denial of the license is contested. Within ten days of the date of the notice of the license administrator's decision after the hearing, the applicant may appeal the decision of the license administrator to the city manager by filing with the city manager's office a notice of and grounds for appeal.
(Ord. No. 1971 N.S., § 1, 4-7-2010)
5.04.040 - Revocation.¶
A. A business license may be revoked if the license administrator determines, based upon substantial evidence, that the holder of a license has obtained the license by misrepresentation or has failed to comply with one or more of the specific provisions of this chapter or any other ordinance of this city.
B. Furthermore, a business license may be revoked if the license administrator determines, based upon substantial evidence, that the licensee has not obtained or does not currently hold each and every one of the prerequisite approvals, or alternatively, that the licensee did not identify, on the application, certain prerequisite approvals that the licensee does not have.
C. Within ten days of the notice of the revocation of a license, the license holder may request in writing a hearing with the license administrator. The applicant shall file a written request for a hearing which states the specific grounds on which the revocation of the license is contested. Within ten days of the date of the notice of the license administrator's decision after the hearing, the applicant may appeal the decision of the license administrator to the city manager by filing with the city manager's office a notice of and grounds for appeal.
(Ord. No. 1971 N.S., § 1, 4-7-2010)
5.04.045 - Fee.¶
The city council may establish by resolution fees to cover costs reasonably borne by the city to administer and enforce the regulations and programs established under this Article I, which fees shall be paid by the applicant with the filing of the application whether or not such applicant is exempt from paying the taxes under Article III.
(Ord. No. 1971 N.S., § 1, 4-7-2010)
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