Morro Bay Municipal Code Ch. 5.08 Business Taxes

Footnotes:

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References to "this title" refer to Chapters 5.04 through 5.16. Ord. No. 595, § 1, adopted September 8, 2015, renamed Chapter 5.08 from business license fees as business taxes.

Every person transacting and carrying on the businesses enumerated in this chapter shall pay a business tax as specified in this chapter.

(Ord. 89 § 2 (part), 1971: prior code § 6200)

(Ord. No. 595, § 3, 9-8-15)

Every person conducting or carrying on a business consisting of selling and retailing any goods, wares, or merchandise or commodities or other things of value in a fixed place of business in the city or of manufacturing, wholesaling, fabricating, processing, or jobbing any goods, wares, merchandise, or things of value, and each and every trade, profession, service or occupation carried out within the city, not otherwise specifically enumerated or taxed in this chapter, shall pay an annual business tax based upon the average number of employees engaged, within the city, in the conduct of such trade, profession, service, or occupation at the following rates: See business tax rate schedule.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 1, 1982; Ord. 159 § 1, 1978; ord. 94 § 3, 1971; ord. 89 § 2 (part), 1971: prior code § 6201)

(Ord. No. 595, § 3, 9-8-15)

Each (i) single- and multi-family dwellings of four or more units, (ii) hotel, motel and rooming-house with four or more rooms and (iii) rest home, hospital and sanitarium with the capacity for four or more persons shall pay a business tax in accordance with the business tax rate schedule; provided, that each business will pay the base tax, plus the per unit/room/person tax, which will be assessed on the fourth and more units, rooms or persons.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 2, 1982; Ord. 159 § 2, 1978; ord. 89 § 2 (part), 1971: prior code § 6203)

(Ord. No. 595, § 30, 9-8-15)

A. Each person sponsoring or organizing an event, wherein goods, artifacts or articles are offered for sale to the general public (provided, that such goods, artifacts or articles offered for sale are the products of each individual exhibitor's own skill or talent) shall obtain a business tax certificate from the city for the conduct of the event and shall collect a business tax from each individual offering such goods, artifacts or articles for sale to the general public at the event. Organizers of a flea market are not included in this category and vendors at a flea market are covered by Section 5.08.110.

B. Each person sponsoring or organizing the event shall assure the payment of such business taxes to the city and payment shall be made for each and every day of the event and such payments shall be made by no later than the first day following the event when the city business tax office is open for business.

C. See business tax rate schedule. With respect to nonprofit organizations, the council can, by resolution, modify the taxes provided for in this section.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 3, 1982; Ord. 192 § 1, 1981; ord. 161 § 1, 1979; ord. 159 § 3, 1978; ord. 109 § 3, 1973; ord. 94 § 10, 1971: prior code § 6220)

(Ord. No. 595, § 31, 9-8-15)

For every person carrying on the business of an auctioneer in the city, see the business tax rate schedule.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 4, 1982; Ord. 159 § 4, 1978; ord. 89 § 2 (part), 1971: prior code § 6211)

(Ord. No. 595, § 3, 9-8-15)

For the business of conducting a carnival, circus or menagerie, a license issued pursuant to this section and Section 5.04.330 shall cover all shows, exhibitions, and entertainments, and all sales, food vendors or places, and the peddling of all novelties or notions and other activity for profit growing out of and as a part of such circus or carnival; provided, that such activity is conducted within the carnival or circus grounds only. Application for any such license under this section must be made to the city council, which, under its police powers, reserves the right to deny any application for such license The chief of police shall direct what shows, exhibitions entertainments or activities are proper under such license and her/his decisions shall be final and conclusive. See the business tax rate schedule.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 5, 1982; Ord. 159 § 5, 1978; ord. 89 § 2 (part), 1971: prior code § 6207)

(Ord. No. 595, § 32, 9-8-15)

For every person engaged in the business of maintaining, operating or letting the use of any coin-operated vending machine, for the dispensing of goods, wares or merchandise or other tangible or intangible property, except those used for laundry and dry cleaning purposes, the business tax fee shall be in accordance with the business tax rate schedule.

The application for a business taxes will be accompanied by a report including but not limited to the following information:

A. Name and address of business;

B. Numbers, location and types of machines;

C. Total annual gross receipts.

If the application is for a new business, this may be an estimate of anticipated gross receipts. If the application is for renewal of a business tax certificate, the past year's gross receipts will be included.

Any business tax certificate to conduct a business issued by the city in connection with which the city imposes a business tax certificate fee or tax upon coin-operated vending machines within the city, may be revoked for failure of the business tax certificate holder to report to the city the gross receipts from such machines. The city may demand an audit of any such business tax certificate holder and require him to submit a copy of the state sales and use tax returns file relative to such machines and a copy of any other tax statement filed with any government entity by him or by any other individual or firm, owning, renting, leasing or operating such machines disclosing the gross receipts received from owning, renting, or operating such machines.

All coin-operated vending machines shall be identified with the machine owner's name, address, and telephone number permanently attached to the machine where it can readily be seen on the front thereof.

All coin-operated vending machines not labeled as required by this section shall be considered unlicensed and will be removed from the premises by the collectors and held for thirty days. If unclaimed after thirty days, the machine will be considered abandoned and disposed of as provided for in the disposition of unclaimed property.

Exemptions: No business tax certificate hereunder shall be required for the maintenance or operation of:

A. Postage stamp machines;

B. Machines dispensing sanitary or hygienic articles or drinking cups, towels or medicines which machines are entirely owned and supplied by the owner or operator of the premises where installed and maintained solely for the conveniences of employees, visitors and customers and not for profit to him or any other person;

C. Machines owned and operated by and in a location of a business for which a business tax has been paid under another category of this chapter.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 6, 1982; Ord. 159 § 6, 1978; ord. 110 § 2, 1973: prior code § 6209)

(Ord. No. 595, §§ 3, 33, 9-8-15)

A. A contractor, within the meaning of this section, is a person who for either a fixed sum, price, fee, percentage, or other compensation, other than wages, undertakes or offers to undertake with another, or purports to have the capacity to undertake with another to construct, alter, repair, add to, or improve any building, highway, road, railroad, excavation, or other structure, project, development, or improvement, other than personally, or to do any part thereof; provided, that the term "contractor" as used in this chapter includes subcontractor, but does not include anyone who merely furnishes materials or supplies without fabricating the same into, or consuming the same in the performance of the work of the contractor hereby defined; and does not include any owner-builder who is exempt under the provisions of the State Contractors' License Law.

B. A general building contractor is a contractor whose principal contracting business is in connection with any structure built, being built, or to be built for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind, requiring in its construction the use of more than two unrelated building trades or crafts, or to do or superintend the whole or any part thereof. Persons issued a business tax certificate under this provision shall pay an annual business tax in accordance with the business tax rate schedule.

C. A specialty contractor is a contractor whose operations as such are the performance of work requiring special skill and whose principal contracting business involves the use of specialized building trades or crafts. Included within but not limited to this category are electrical, plumbing, pipeline, sewer, grading, street, paving, house moving, trenching or excavating contractors. Persons issued a business tax certificate under this provision shall pay an annual business tax in accordance with the business tax rate schedule.

D. It shall be the responsibility of the prime contractor or the owner-builder at the time of the application for a building or construction permit, to provide the collector with a certified list of those specialty contractors who have been engaged or are intended to be engaged in the completion of the job for which the building or construction permit is issued. Each specialty contractor shall obtain a current and valid business tax certificate.

E. The inspecting city department will not issue the certificate of occupancy, final inspection or certificate of completion on any job until each specialty contractor who worked on the job has been properly issued a business tax certificate.

F. Every person engaged in the business of contracting shall show evidence he/she holds a valid state contractor's license before a city business tax certificate will be issued under the provisions of this title.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 7, 1982; Ord. 159 § 7, 1978; ord. 89 § 2 (part), 1971: prior code § 6206)

(Ord. No. 595, § 34, 9-8-15)

A. Each person who conducts a business of wholesale or retail deliveries for business services within the city shall obtain a business tax certificate and pay the applicable business tax, as provided in the business tax rate schedule.

B. This section shall not apply to a business for which a city business tax is paid pursuant to another provision of this chapter or if the business is exempt from paying the city's business taxes, pursuant to the interstate commerce or highway carrier exemption.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 8, 1982; Ord. 159 § 8, 1978; ord. 89 § 2 (part), 1971: prior code § 6202)

(Ord. No. 595, § 35, 9-8-15)

For the business of conducting a fire, wreck, or bankrupt sale, the business tax is in accordance with the business tax rate schedule.

For the purposes of this section, "fire or wreck sale" means and includes the sale of goods, salvage from a fire, wreck, or other calamity, or the sale of goods advertised as a fire or wreck sale.

For the purpose of this section, "bankrupt sale" includes a sale for the benefit of creditors, either directly or indirectly, or a sale advertised as a bankrupt sale or sale for the benefit of creditors.

This section shall not apply to any stocks or goods owned by any person having a regular, fixed place of business in the city whose stocks or goods have been damaged by fire, water, wreck, or other such calamity occurring in the city.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 9, 1982; Ord. 159 § 9, 1978; ord. 89 § 2 (part), 1971: prior code § 6212)

(Ord. No. 595, § 3, 9-8-15)

A. Each person who participates as a vendor at a flea market within the city shall obtain a business tax certificate and pay the applicable business tax, as provided in the business tax rate schedule.

B. Payment of the business tax shall be made to the city for each and every day that vendor operates at a flea market within the city and that vendor shall pay the business tax no later than the first day following the sale upon which the business tax office is open for business.

C. With respect to nonprofit organizations, the council can, by resolution, modify the taxes provided for in this section.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 10, 1982; Ord. 159 § 10, 1978; ord. 109 § 2, 1973; ord. 94 § 9, 1971: prior code § 6219)

(Ord. No. 595, § 36, 9-8-15)

Each person conducting more than two garage sales per year from their private residence wherein goods or merchandise, which were not originally purchased for resale and which are being offered for sale to the general public, shall pay an annual business tax in accordance with the business tax rate schedule. Such business may not operate if the garage sale, as conducted, is contrary to the provisions of Title 17, Zoning.

(Ord. 459 § 41, 1997; ord. 285 § 2 (part), 1986; Ord. 225 § 11, 1982; Ord. 94 § 8, 1971: prior code § 6218)

(Ord. No. 595, § 37, 9-8-15)

Each home occupation constituting a business and not otherwise specifically enumerated or taxed in this chapter shall pay an annual business tax in accordance with the schedule enumerated in Section 5.08.020. Such business may not operate contrary to the provisions of Title 17, Zoning.

Exceptions: Home occupations consisting of the producing, selling, or supplying of products, goods, articles or services, which are intended to augment or supplement a primary source of income and which include but are not limited to hobby, handicraft, handyman, or personal service activities and which are conducted in or on, but which are incidental to the personal residence of the persons so engaged may request exception from the annual business tax of this section and such request shall be considered in accordance with the following:

A. The person seeking exception shall file an application for a business tax with the collector and will attach, thereto, a request for exception, in writing, with the collector setting forth the reasons exception is sought.

B. The collector shall consider each request on an individual basis, and the business tax rate schedule shall be used for charges.

C. Appeal from the collectors' decision may be filed under the provisions of Section 5.04.210.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 12, 1982; Ord. 159 § 11, 1978; ord. 94 § 4, 1971; ord. 89 § 2 (part), 1971: prior code § 6205)

(Ord. No. 595, §§ 3, 38, 9-8-15)

For every person carrying on the business of money lending or operating a pawnshop, an annual business tax in accordance with the business tax rate schedule shall be charged; and each person is required to keep a book in which shall be entered at the time of purchase, written legibly in the English language, a true and accurate description of every article purchased, pledged with, or received by him; the name, residence, and an accurate description of the vendor or person from whom received; the amount paid for such articles; and the date and hour of purchase or receipt. Such books shall be preserved intact for the period of one year from the date of the last entry therein; and shall be exhibited upon request to any police officer of the city. The city council shall have the power to revoke any such pawnbroker's license without notice, and the money representing the unused portion of such license shall be forfeited to the city.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 13, 1982; Ord. 159 § 12, 1978; ord. 89 § 2 (part), 1971: prior code § 6213)

(Ord. No. 595, § 3, 9-8-15)

A. For the purpose of this section:

1. "Vendor" means and includes every person not having a fixed place of business in the city, and not an agent of a principal having a fixed place of business in the city, who travels from place to place, or has a stand upon any doorway of any building or unenclosed or vacant private lot or parcel of land, or any sidewalk vendor as defined in Chapter 5.60, who sells or offers for sale and retail any goods in his/her possession.

2. "Solicitor" means and includes every person who engages in the business of going from house to house, place to place, selling or taking orders for or offering to sell or take orders for goods, wares, merchandise or other things of value that are not to be used for resale or become a part of any stock to be offered for sale.

3. "Itinerant merchant" means and includes every person who engages in temporary business in the city for one hundred eighty days or less, for the sale of merchandise or services and who, for such purpose, hires or occupies any building, vacant lot, or other private facilities, or a portion thereof.

B. Every person carrying on the business of vendor, solicitor or itinerant merchant shall pay a business tax in accordance with the business tax rate schedule.

C. No person shall be required to pay a business tax for vending any of his/her own agricultural, pastoral, or dairy products raised by himself/herself in the state, where the products sold are exclusively his/her own. This exemption shall not apply to nurseries or other commercial establishments who buy goods for resale as well as selling their own products.

D. This section shall not apply to any person covered by Section 5.08.040.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 14, 1982; Ord. 159 § 13, 1978; ord. 89 § 2 (part), 1971: prior code § 6215)

(Ord. No. 595, § 39, 9-8-15; Ord. No. 634, § 3, 6-23-20)

Public utilities serving customers within the city shall pay an annual business tax under the business tax rate schedule, unless the public utility company concerned pays a franchise tax to the city in excess of the amount due under the provisions of Section 5.08.020, in which case no business tax shall apply.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 15, 1982; Ord. 94 § 6, 1971; ord. 89 § 2 (part), 1971: prior code § 6216)

(Ord. No. 595, § 3, 9-8-15)

A. Every person who, with a fixed place of business within the city, (i) assists another with the sale or with offers to sell any real estate or assists another with the purchase or with offers to purchase any real estate, (ii) assists another with the rental or leasing or with offers to rent or lease any real estate, or (iii) collects for another or offers to collect for another rents for any real estate and who is subject to regulation by the State of California Real Estate Board shall pay an annual business tax in accordance with the business tax rate schedule.

B. Every person who, without a fixed place of business within the city, (i) assists another to sell or offer to sell real estate within the city, (ii) assists another with the purchase of real estate within the city for which the sale is completed, or (iii) assists another with the rental or leasing of real estate within the city, or (iv) collects rents for any real estate within the city and who is subject to regulation by the State of California Real Estate Board and who operates within the city, shall pay an annual business tax in accordance with the business tax rate schedule.

C. Any person who owns and rents property within the city and is not subject to this section shall be subject to Section 5.08.030, as applicable.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 16, 1982; Ord. 159 § 14, 1978; ord. 94 § 7, 1971: prior code § 6217)

(Ord. No. 595, § 40, 9-8-15)

A. For the business of exhibiting animals or birds, trained or otherwise, or trick riding, wire dancing, or other exhibitions where a fee or admission is charged or collection taken other than under a carnival or circus license, and not operating from a fixed place of business, the business tax shall be in accordance with the business tax rate schedule.

B. For the business of operating a merry-go-round, revolving wheel, chute, toboggan, slide, mechanical riding contrivance, or pony ride, other than under a carnival or circus license, the business tax shall be in accordance with the business tax rate schedule.

C. For the business of conducting any tent show or itinerant show of any kind, other than a circus or carnival at which an admission fee is charged, collected, or received, the license fee shall be in accordance with the business tax rate schedule.

D. For the business of conducting any wrestling or boxing exhibition or show, the license fee shall be in accordance with the business tax rate schedule.

E. For the business of conducting a public dance at which an admission fee is charged, the license tax shall be in accordance with the business tax rate schedule.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 17, 1982; Ord. 159 § 15, 1978; ord. 89 § 2 (part), 1971: prior code § 6208)

(Ord. No. 595, § 3, 9-8-15)

For every person carrying on the business of a secondhand store or dealing in junk, see the business tax rate schedule; and each such person is required to keep a book in which shall be entered at the time of purchase, written legibly in the English language, a true and accurate description of every article purchase or received by him; the name, residence, and an accurate description of the vendor or person from whom received; the amount paid for such article; and the date and hour of purchase or receipt. Such books shall be preserved intact for one year from the date of the last entry therein; and shall be exhibited upon request to any police officer of the city. The city council shall have the power to revoke any such secondhand junk dealer's license without notice, and the money representing the unused portion of such license shall be forfeited to the city.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 18, 1982; Ord. 89 § 2 (part), 1971: prior code § 6214)

(Ord. No. 595, § 3, 9-8-15)

For skating rinks, see the business tax rate schedule.

(Ord. 285 § 2 (part), 1986; Ord. 159 § 16, 1978; ord. 89 § 2 (part), 1971: prior code § 6210)

(Ord. No. 595, § 3, 9-8-15)

For persons having rental spaces for trailers or mobile homes, see the business rate schedule.

(Ord. 285 § 2 (part), 1986; Ord. 225 § 20, 1982; Ord. 159 § 17, 1978; ord. 89 § 2 (part), 1971: prior code § 6204)

(Ord. No. 595, § 3, 9-8-15)

A. Notwithstanding any other provision of this title and subject to subsection C below, as of July 8, 2014, the regular business tax set forth in the business tax rate schedule is suspended for any business that demonstrates it generates annual gross receipts of less than twelve thousand dollars ("low revenue business"), as shown through submittal of tax returns for its previous tax year or by other means acceptable to the collector.

B. The suspension set forth in subsection A, above, shall remain in effect until such time as the city council may amend or repeal this section.

C. Except as provided herein and pursuant to Section 5.04.060, each low revenue business shall obtain a current business tax certificate in accordance with this title and pay a processing fee in accordance with the business tax rate schedule; provided, that (i) the business tax certificate processing fee for each low revenue business shall not be greater than the amount necessary for the city to recover some or all of the costs incurred by the city in processing and issuing that business tax certificate, and (ii) if the aggregate annual gross receipts from all the low revenue businesses operated at one location or by the same operator are less than four thousand dollars, then a business tax certificate is not required for any of those businesses; provided, that this subsection shall not waive any other requirements of this code, including, but not limited to, a requirement for a home occupation permit.

D. Any person who paid a business tax for a low revenue business on or after July 8, 2014, shall be entitled to receive a refund of the amount paid in excess of the business tax certificate processing fee described in subsection C., above; provided, that if the aggregate annual gross receipts for a low revenue business operated at one location or by the same operator are less than four thousand dollars and that business paid a processing fee before the effective date of this section, then the processing fee shall not be refunded.

(Ord. No. 590, § 1, 11-12-14; Ord. No. 595, §§ 3, 41, 9-8-15; Ord. No. 597, § 1, 10-27-15)