National City Municipal Code Art. V Classification of Business

A. The classification of a particular business shall be that classification set forth in the business tax rate classification schedule designated in Section 6.04.030(B). When a particular type of business cannot be located on that schedule, the collector shall assign to it the tax rate classification most closely corresponding to the business's standard industrial classification number ("SIC" number) from the most current Standard Industrial Classification Manual published by the U.S. government, a copy of which shall be kept on file in the collector's office.

B. Any business classifiable under two or more classification schedules shall be classified on the basis of the business classification with the highest dollar volume of business; if the business dollar volume is equal, however, it shall be classified on the basis of the business classification which will result in the highest tax.

(Ord. 2224 § 2 (part), 2003)

A. Rule for Multiple Locations or Business Names. Except as provided in Section 6.04.330, business taxes are to be calculated on the basis of the tax rate schedule and the gross receipts attributable to the principal classification of the business conducted at each location in the city. If a person conducts business at more than one location, or at a single location but under two or more different names, the business tax will be separately calculated for each business location and for each business name at the same location on the basis of the tax rate schedule and the gross receipts attributable to the principal classification of each business operating at that location under a business name. Separate business tax licenses will be issued for each location and for each separate business name at the same location.

B. Rules for Multiple Business Activities at a Single Location.

1. When a person operates two or more businesses or business activities which are similar for tax rate schedule classification purposes (e.g., retail and wholesale auto parts) at the same location under a single business name, the tax will be calculated and administered on the basis of the total gross receipts from all the businesses operated at that single location, using the tax rate classification schedule applicable to that business classification which records the highest of the gross receipts of the respective businesses.

2. If two or more businesses at the same location (address) are not similar within the tax rate classification schedules (e.g., retail auto parts and automobile repair, or restaurant and amusement arcade), each will be classified separately and the tax rate classification schedule applicable to each separate business classification will be applied to the respective gross receipts from each business to calculate the combined taxes due, irrespective of the bookkeeping system used by the owner, The business license may list both business classifications.

C. Rules for Warehouses and Distribution Facilities.

1. Except as provided in Section 6.04.230(C)(3), a warehouse or distribution facility that is an integral part of, but not co-located with, a business located in the city is not a separate place of business, and a separate fee exempt business tax license will be issued for that location.

2. A warehouse or distribution facility located in the city which is incidental to a business located in another jurisdiction, from which no sales are made and any delivery of merchandise is restricted solely to deliveries to the business to which it is incidental, shall pay a business tax calculated from the tax rate schedule that would apply to the principal business classification of the parent business, using the costs of doing business attributable to the warehouse or distribution facility as the measure of gross receipts upon which the tax is computed.

3. Any warehouse or distribution facility located in the city, whether incidental to another business or not, that sells merchandise to any person or delivers any merchandise stored on its premises to any person other than the business to which it is incidental, is conducting business in the city and shall pay a business tax computed on the basis of: (A) the gross receipts attributable to that facility from all its sales and delivery activities in the city, or (B) its costs of doing business when gross receipts cannot be determined by the collector.

D. Rule for Headquarter Facilities. A business with a principal office in the city that operates manufacturing, sales, warehouse or distribution facilities located in other jurisdictions is considered to conduct business within this city, even though no goods or services are sold, produced or delivered within this city, and it shall be taxed on the basis of its cost of doing business at its principal office within this city as the measure of its gross receipts earned within the city.

(Ord. 2224 § 2 (part), 2003)

An independent contractor providing services for another business entity in National City shall designate a business address. An independent contractor from outside National City may list its business address or the business address of the principal for whom professional services are rendered. If the independent contractor's business address is located in a residential zone in National City, then the zoning laws (Title 18) regarding home occupation permits must be satisfied.

(Ord. 2224 § 2 (part), 2003)