Morgan Hill Municipal Code Art. III License Tax Requirements and Procedures

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

(Ord. No. 1971 N.S., § 1, 4-7-2010)

It is unlawful for any person either for himself or herself or for any other person, to commence or carry on any business in the city, without first having procured a license from the city so to do, or without complying with this chapter.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

A separate license must be obtained for each branch establishment or location of the business transacted and carried on, and for each separate unrelated type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license; 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 establishment. Warehouses and distributing plants not used in connection with or incidental to a business licensed under the provisions of this chapter shall be deemed separate places of business or branch establishments.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

All license taxes required to be paid by this chapter, except where otherwise specifically provided in this chapter shall be due and payable as follows:

A. Annual licenses, July 1 of each year;

B. Semiannual licenses, January 1 and July 1 of each year;

C. Quarterly licenses, January 1, April 1, July 1 and October 1 of each year.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

The tax for any license ordinarily issued for a period longer than six months may be prorated on a semiannual basis; provided, however, that the tax charged shall not be less than one-half the annual rate, whether or not six months remain in the fiscal year. This section shall not apply to provisions of this chapter, if any, pertaining to licenses ordinarily issued for one or more days at a daily rate.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

Upon making an application for the license pursuant to Section 5.04.020, the applicant shall furnish upon a form provided by the license administrator such information as may be required and necessary to properly determine the amount of the license tax to be paid by the applicant. The tax shall be paid by the applicant with the filing of the application.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

If the license administrator determines to deny the application pursuant to Section 5.04.030, the tax, but not fees, will be returned to the applicant.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

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 any business, occupation or activity 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 individual; nor shall any license tax be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the city 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; nor shall any license tax 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 purpose and objects for which such organization or association was formed and for which profit is not derived, either directly or indirectly, by any individual. All applicants seeking exemption from the license tax under this section shall be responsible for complying with all other requirements of this chapter, obtaining a business license, providing proof of charitable/non-profit status and payment of fees.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

The provisions of this chapter shall require the payment of a license tax to conduct or carry on any customary incidental home occupation conducted within a dwelling in a residential zone. Any home occupation must comply with Section 18.92.060 of this code and shall not require internal or external alterations to the dwelling or involve construction features or use of equipment not customary in dwellings, and no activity or display directly pertaining to such occupation shall be visible from the street.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license tax or fees provided for in this chapter upon the ground that such license casts a burden upon his or her right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United State Congress respecting interstate commerce, shall file an application pursuant to Section 5.04.020 and a verified statement with the license administrator, disclosing the interstate or other character of the business entitling such exemption. Such statement shall contain the name and location of the company or firm for which the orders are to be solicited or secured, the name of the nearest local or state manager, if any, and the address, the kind of goods, wares or merchandise to be delivered, the place from which the same are to be shipped or forwarded, the method of solicitation or taking orders, the location of any warehouse, factory or plant within the state, the method of delivery, the name and location of the residence of the applicant, and any other facts necessary to establish such claim of exemption. A copy of the order blank, contract form, or other papers used by such person in taking orders, shall be attached to the application for the information of the license administrator.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license tax or fees provided for in this chapter upon the ground that he or she is a honorably discharged or released soldier, sailor or marine of the United States who meets the requirements of Section 16001, et seq. of the Business and Professions Code or other law of the state, shall file an application pursuant to Section 5.04.020 and file with the license administrator an affidavit setting forth the qualifications for the exemption. All applicants seeking exemption under this section shall be responsible for complying with all other requirements of this chapter, obtaining a business license, and upon verification of the statements of the affidavit, no license fees or tax shall be required.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

A licenses issued shall contain:

A. The business licensed;

B. The place where such business is to be carried on;

C. The date of the expiration of such license;

D. Such other information as the license administrator determines.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

Every vehicle upon which a license tax is imposed under the provisions of this chapter, and every vehicle used in any business upon which a license tax is imposed under the provisions of this chapter shall bear a gummed sticker, properly marked and numbered, which shall be attached to the vehicle on the right side thereof in such a manner that it can be plainly seen and distinguished, whether the vehicle is in motion or not. The sticker or stickers shall be furnished by the license administrator without additional charge to the licensee and shall be removed from the vehicle by the licensee upon expiration of such license.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

A. Every person having a license under the provisions of this chapter and carrying on a business at a fixed place of business, shall keep such license posted and exhibited while in force, in some conspicuous part of such place of business.

B. Every person having such a license and not having a fixed place of business, shall carry such license or permit with him or her at all times while conducting the business for which the license or permit was issued.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

No license or permit issued under any provision of this chapter shall be in any manner transferred or assigned, or authorize any person, other than the person named in the license, to carry on the business therein named, or to transact such business in any place other than the place or location therein named.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

The license administrator shall make a charge of five dollars for each duplicate license issued to replace any license issued under the provisions of this chapter, which has been lost or destroyed. The applicant shall make satisfactory proof of such loss.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

The conviction and punishment of any person for transacting any business without a license shall not excuse or exempt such person from the payment of any license tax due or unpaid at the time of such conviction, and nothing in this chapter shall prevent a criminal prosecution of any violation of the provisions of this chapter.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

The amount of any license tax and penalty imposed by this chapter shall be deemed a debt to the city, and any person carrying on any business without first having procured a license from the city to do so shall be liable to an action in the name of the city in any court of competent jurisdiction, for the amount of license tax and penalties imposed on such business, and an attachment shall issue on a verified complaint without any bond or affidavit being given on behalf of the plaintiff. If the city recovers judgment in such action, it shall be entitled to a reasonable attorney's fee fixed by the court.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

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

(Ord. No. 1971 N.S., § 1, 4-7-2010)

Every annual license which is not paid within a period of thirty days from the time the same becomes due and payable is declared to be delinquent, and the license administrator shall thereupon add to the license and collect a penalty of ten percent of the license so delinquent, and if such license is not paid within sixty days from the time such license becomes due and payable, an additional sum of fifteen percent of the license tax due shall be added and collected as a penalty.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

Every semiannual license which is not paid within a period of ten days from the time the same becomes due and payable is declared to be delinquent, and the license administrator shall thereupon add to such license and collect a penalty of ten percent of the license so delinquent, and if such license is not paid within twenty days from the time such license becomes due and payable, an additional sum of fifteen percent of the license tax due shall be added and collected as a penalty.

(Ord. No. 1971 N.S., § 1, 4-7-2010)

Every daily license which is not paid at the close of business on the day when the same was due and payable is declared to be delinquent, and the license administrator shall thereupon add to such license and collect a penalty of ten percent of the license as delinquent, and if such license is not paid within three days from the time such license became due and payable, an additional sum of fifteen percent of the license tax due shall be added and collected as a penalty.

(Ord. No. 1971 N.S., § 1, 4-7-2010)