National City Municipal Code Art. III Administration

The collector is authorized to make all rules, determinations and regulations consistent with the provisions and intent of this chapter as may be necessary and proper to aid in the administration and enforcement of the provisions of this chapter. Copies of those rules shall be maintained in the Office of the Collector, available for public inspection.

(Ord. 2224 § 2 (part), 2003)

A. Nothing in this chapter shall be deemed or construed to apply a tax to a savings and loan association, any nonprofit corporation or association exempt from income taxation pursuant to Revenue and Taxation Code Section 23701 or Section 501(C)3 of the Internal Revenue Code, or to any person conducting any business exempt from the payment of business or income taxes by virtue of the Constitution or applicable statutes of the United States or the state. The collector shall administer the provisions of this chapter in a manner consistent with state and federal law regarding avoidance of burdens on interstate or interjurisdictional commerce applicable to a taxpayer or class of taxpayers. The collector may require proof of the payment of taxes to other jurisdictions when necessary to a determination regarding apportionment of taxes applicable to businesses conducting business in more than one jurisdiction.

B. Any person claiming exemption from or an apportionment of tax pursuant to this section shall file a sworn statement with the collector stating the facts upon which the exemption or apportionment is claimed, and shall provide a copy of all documents supporting the claim of exemption. In the absence of sufficient evidence substantiating the claim, that person shall be liable for the payment of the taxes imposed by this chapter.

C. The collector, upon a proper showing, shall issue a fee-exempt license to any person exempt from tax under the provisions of this section without requiring payment of the tax required by this chapter. The exempt license shall expire December 31 of each year and shall be renewed annually prior to the last day of February of the following year in the manner prescribed for all businesses.

D. After giving notice and providing a reasonable opportunity to the person for a hearing, the collector may revoke or disallow any exemption or apportionment granted pursuant to the provisions of this section upon evidence that the business is not entitled to the exemption or apportionment as provided herein. Appeals from that determination may be made in accordance with Section 6.04.160.

E. In addition to those businesses exempted under Section 6.04.070(A), the following are also exempted from the payment of a business tax under this chapter:

1. Any natural person of the age of sixteen years and under whose annual gross receipts from all businesses in the city are five hundred dollars or less.

2. Any public utility or utility service provider making franchise payments to the city, except to the extent of the value of retail sales or services provided and not covered or excluded within the terms of the franchise agreement.

3. Any person or organization conducting no more than two garage sales per calendar year, each sale not exceeding four consecutive days, provided a garage sale permit pursuant to Section 7.20.120 is first obtained.

4. Any business licensed in another jurisdiction which, incidental to its business activity within that other jurisdiction, only delivers goods or merchandise free of any delivery charge and performs no other service within this jurisdiction.

5. Any occasional vendor selling used merchandise at a licensed swap meet within the city who rents a stall or booth for not more than two periods of not more than four consecutive days each per calendar year is exempt from payment of business taxes. A business license is required for all other vendors.

6. Any disabled veteran who sells only goods and merchandise owned by him or her as a sole proprietor, and not as an employee of another.

7. Any occasional vendor selling goods designed and made by that vendor as a principal, and not as an employee, at an arts and crafts fair or show for not more than two periods of not more than four consecutive days each, per calendar year, when such vendor is exempted from possessing a resale license issued by the State Board of Equalization. A vendor selling through an employee is not exempt.

(Ord. 2224 § 2 (part), 2003)

A. Statements made by an applicant or taxpayer shall not be conclusive as to the truth of the matters set forth therein, nor shall filing the same preclude the collector from collecting by appropriate action such sum as is actually due and payable under this chapter. The statement shall be subject to audit and verification. The collector is authorized to examine, audit, and inspect books and records of any business as may be necessary to verify or determine the amount of tax due.

B. All persons subject to the provisions of this chapter shall keep complete and accurate records of business transactions, sufficient to establish the business's "gross receipts" or "costs of doing business," as applicable, as defined in Section 6.04.050. The collector may require the business to produce all financial records for examination by the collector. The business shall promptly provide such copies upon request, and, when applicable, may authorize the collector to obtain official copies of the federal or state income tax forms filed for all applicable tax years for comparison, when necessary. Records shall be maintained for a period of at least three calendar years.

C. Licensees shall provide the collector with a change of address or phone number, or both, within ten days for any principal whose name and address is required to be filed pursuant to Section 6.04.180(A)(9).

D. It is unlawful for any person required to keep financial records under this chapter to fail to keep such records, or to refuse to produce or allow the collector to examine those records at a reasonable time and manner, upon request of the collector.

(Ord. 2224 § 2 (part), 2003)

With the exception of information regarding the business name and address, phone number(s), and names of principals of the business, all other information collected by or disclosed to the collector in the administration of this chapter shall be kept confidential and used for official purposes only. Confidential information shall not be disclosed to any person without an official need and purpose without a subpoena or court order.

(Ord. 2224 § 2 (part), 2003)

A. Business tax licenses are not transferable. The business tax license issued to a business under a particular name or at a particular location may be amended to change the name or location upon application and payment of the fee established in the National City Fee Schedule.

B. In the case of change of ownership, a change in the federal identification number or, when applicable, the social security number of a principal, an application for a new business tax license and payment of tax is required in accordance with Section 6.04.270. The applicant will not be required to deposit the clearance fee if the location remains the same. Prior payments of tax will not be transferred or credited to the account of the new business.

(Ord. 2224 § 2 (part), 2003)

A. A replacement business tax license or decal may be issued by the collector upon payment of a duplicate issuance fee to replace any business tax license which has been lost or destroyed.

B. A replacement vehicle decal may be issued to replace any decal which has been lost, stolen or destroyed upon the licensee filing a statement of such fact and paying a replacement fee.

(Ord. 2224 § 2 (part), 2003)

Any business tax license, regulatory permit, development permit or other license issued by the city is rendered void and invalid if any check tendered in payment is dishonored, and no lawful authority to act under that permit or license is conferred until payment is satisfied in full.

(Ord. 2224 § 2 (part), 2003)

A. The tax collector may cancel a business tax license at the request of the business owner provided:

1. The business owner surrenders the business tax license and any applicable stickers or decals; and

2. All business activity at the licensed premises has stopped.

Liability for any further business taxes will cease if the owner's account is current and cleared once the collector has been notified within the thirty days following the cessation of business that all business activity has ceased.

B. Failure to notify the collector within the thirty days creates a presumption that the business has not terminated its operations and therefore remains liable for future business taxes and penalties in accordance with this chapter. The collector is authorized to waive this presumption in the case of an itinerant vendor when the collector has determined that the business terminated for bona fide reasons. Liability for taxes will otherwise continue until a taxpayer executes a declaration under penalty of perjury that it has ceased doing business and has not conducted business since the date stated.

C. There will be no refund for any portion of the tax paid for the unexpired tax year.

D. Unpaid business taxes remain the personal liability of the former principals of the business upon dissolution, each of whom is and shall remain jointly and severally liable for payment.

(Ord. 2224 § 2 (part), 2003)

A. The provisions of this chapter will be fully applicable to all businesses on and after its effective date; provided, however, that any business which has already applied for or paid business taxes for the current calendar year will not be subject to any additional processing requirements. The collector may use existing stocks of forms until depleted in the administration of this chapter.

B. Pursuant to Section 6.04.050, the term "business license" or "license tax," or any similar language appearing on such forms shall be construed to refer to the terms "business tax license" or "business tax" adopted by this ordinance as the context may require.

C. The collector shall collect all regulatory permit and license processing fees on behalf of an administering city department at the time an applicant presents an application for payment of business tax. Regulatory reviews shall be conducted by the authorized city official(s) as required by the Fire Code, California Building Code, or other law. Processing fees are listed in the National City Fee Schedule. The collector will issue a receipt for the deposit of taxes and fees. A business tax license will not be issued until completion of regulatory processing by administering departments, payment by the taxpayer of any delinquent accounts owed to the city, and determination that the operation of the business would not be in violation of law or the requirements of this code. The collector is authorized to coordinate regulatory processing with the payment of business taxes and fees for the issuance of regulatory permits. The applicant remains responsible for completion of forms and delivery to any department or agency for review.

D. The collector will refund the business tax deposited upon written request if the business cannot be lawfully conducted at the proposed location following regulatory compliance review, except that no refund will be made if the business opening date was prior to the application date. Regulatory permit processing fees are not refundable.

(Ord. 2224 § 2 (part), 2003)

(Ord. No. 2011-2368, § 1, 9-27-2011)

The collector has the authority to examine by audit and any other accepted accounting process the records and practices of any place of business in the city to ascertain whether the provisions of this chapter have been complied with. A business that misstates its gross receipts or basis for tax liability may be liable for the city's actual costs of audit when the understatement is greater than five percent of the actual gross receipts or basis for tax liability, irrespective of whether the understatement results in any change in the tax due. Penalties and interest under Section 6.04.370(C) shall be collected on the balance of any tax due.

(Ord. 2234 § 4, 2003: Ord. 2224 § 2 (part), 2003)

A. Any person aggrieved by any decision of the collector with respect to the determination of tax due or the issuance of or refusal to issue a tax license, exemption certificate or apportionment may file a notice of appeal or request for dispute resolution with the collector no later than ninety days from the date of notification, and shall pay at the time of filing the appeal processing fee prescribed in the National City Fee Schedule. The collector shall notify the person at the time of adverse decision of the right to appeal within the ninety-day period or be barred. Failure to timely appeal renders the determination final and no further administrative review shall be required or allowed. The failure to exhaust administrative remedy shall bar judicial review of the final action.

B. The appeal shall be forwarded to the city treasurer who shall then fix a time and place for hearing any appeal. The hearing shall be held no later than thirty days from the date the appeal is received, unless mutually agreed otherwise. The city treasurer shall give notice of the time and place of hearing by serving it personally or by depositing it in the United States Post Office, postage prepaid, addressed to the applicant's last reported address for business tax purposes.

C. The city treasurer may conduct the examination personally or appoint an examiner to determine all questions raised on appeal. The examiner may be a city employee or any other person who is neutral and unbiased in the matter. The collector and applicant shall each be allowed an opportunity to present relevant evidence. The formal rules of evidence shall not apply to the appeal, and the examiner may consider any evidence that is relevant and of the sort that responsible persons are accustomed to rely upon in the conduct of serious affairs. Hearsay may be used to supplement or explain the evidence. The examiner's determination may not conflict with any substantive provision of this chapter.

D. The decision of the city treasurer shall be based upon the administrative record on appeal and shall constitute the exhaustion of administrative remedy. The city treasurer shall mail or deliver a written decision to the appellant within fifteen days from receipt of the examiner's report.

E. The appeal fee shall be refunded only if the appeal is decided wholly in the appellant's favor.

(Ord. 2224 § 2 (part), 2003)

A. The collector is authorized to revoke a business tax license for good cause. Good cause exists where the business is operated in violation of state, federal or local law which reasonably and rationally relates to consumer fraud and protection; fraudulent or unfair business or trade practice; sale of adulterated product or contraband; release of hazardous materials or environmental pollution; or zoning or public health violations which relate to the nature of the business conducted. The order of revocation becomes final thirty days after the issuance of the order, unless appealed.

B. Appeals shall be processed in accordance with Section 6.04.160. The time limit for submitting an appeal shall be thirty days from the date a written order of revocation is mailed to the licensee by the collector by both certified mail, return receipt requested, and first class mail. Receipt of either by the licensee shall constitute receipt of notice. Appeal fees shall not be required for an appeal under this section.

C. Conviction of an offense shall not be a prerequisite to revocation of a business tax license under this section. Revocation may be exercised upon the existence of facts demonstrating the occurrence of the violation.

D. It is a misdemeanor to continue to operate a business after the business tax license has been revoked and either the appeal period has lapsed or the appeal was denied.

(Ord. 2224 § 2 (part), 2003)