National City Municipal Code Art. VI Computation and Payment of Taxes

A. Except as provided in Section 6.04.260(B), there are imposed upon all persons conducting business in the city business taxes in the amounts hereinafter prescribed. It is unlawful for any person to conduct business in the city without a valid business tax license. A business tax license is valid when it is issued in compliance with all applicable provisions of this chapter and, except when exempt from tax, paying the applicable tax.

B. Any person who is considered to be conducting business by virtue of the prima facie evidence definition in Section 6.04.050 is subject to tax until the collector determines otherwise. The collector may require the submission of proof under affidavit executed under penalty of perjury that the person is not conducting a business within the city.

C. Licensed Professionals. Each professional licensed by the state, including without limitation any lawyer, doctor, dentist, health care professional, investment advisor, real estate Agent, real estate broker, or insurance broker, who maintains a fixed place of business in the city must pay a business tax as set forth in the tax schedules established under the authority of this chapter.

(Ord. 2247 § 1 (part), 2004; Ord. 2224 § 2 (part), 2003)

Unless exempted or taxed on a flat rate basis pursuant to Section 6.04.310, 6.04.320, or 6.04.330, a person making application for the initial business tax license for a newly established business is required to pay a first year's tax of twenty dollars, the minimum annual tax, prorated by quarter. Upon making application in the following (second) year, that second year's tax due will be based upon the actual gross receipts for the first year. For all future years thereafter, the person will pay the tax based upon the gross receipts for the preceding year.

(Ord. 2224 § 2 (part), 2003)

(Ord. No. 2017-2439, § 1, 10-3-2017)

A. The total business tax levied by this section shall be determined by the business tax rate classification schedule by business class (see Section 6.04.030(B) and Appendix A) and the corresponding tax on the gross receipts of that business as set forth in Appendix B ("Gross Receipts Tax Table").

B. Businesses for which an alternative flat tax is prescribed by sections 6.04.310, 6.04.320 or 6.04.330 may elect to pay a tax based on gross receipts prescribed by this section and shall thereafter be taxed on the basis of the gross receipts schedule applicable to the business classification determined by the collector.

(Ord. 2224 § 2 (part), 2003)

(Ord. No. 2017-2439, § 2, 10-3-2017)

A. Unless otherwise provided, annual business taxes under the provisions of this chapter are due and payable on the first day of January of each year and are delinquent on the first day of March. The date of payment is the date the completed application together with payment is received by the collector, provided there is no dishonor of any check tendered in payment. It is the taxpayer's obligation to renew the business tax license when due. Payment by mail is effective only on the date of receipt at the collector's office, and not the date of postmark.

B. A courtesy renewal application may be sent by the collector to all businesses holding a prior valid business tax license as of December 31 of each year. The failure of the collector to provide a courtesy renewal notice or the business's failure to receive the courtesy renewal application shall not relieve the business of its obligation to pay its tax or any penalties that may apply for the failure to pay the tax when due.

C. The collector shall issue a business tax license to the business upon full payment of the required tax and all penalties due, without dishonor, thereby verifying that the tax has been paid.

(Ord. 2224 § 2 (part), 2003)

If any person required to file an initial application or a renewal application fails or refuses to do so within the time period prescribed, the collector shall compute a tax on the estimated annual gross receipts based on all relevant information the collector is able to obtain. If the collector is unable to compute a gross receipt basis because of a lack of cooperation or financial records, then the tax will be estimated on the basis of the highest tax on gross receipts applicable to that category of business on the appropriate schedule.

The tax bill shall be sent by mail to the last known business address and shall include the estimated gross base tax due plus any delinquency penalties assessed. The total amount on the billing shall be payable to the city within fifteen calendar days from the date of the deposit of notice in the U.S. Postal Service.

Within those fifteen calendar days, the person may submit proof to the collector of the actual gross receipts and pay the tax or the adjustment authorized by the collector. The proposed tax will be due and final if not challenged or appealed pursuant to Section 6.04.160 within the prescribed time.

(Ord. 2224 § 2 (part), 2003)

A. Except as provided in Section 6.04.070(E)(4), every person not having a fixed place of business within the city and not otherwise designated, who on a regular basis conducts business by vehicle and charges a fee for service, shall pay an annual business tax of twenty-five dollars per vehicle operated within the city, or may make a binding election to pay a business tax measured by business classification and the gross receipts derived from business within the city as set out in Section 6.04.280.

B. Any person conducting business by vehicle in the city vending food products or beverages shall pay an annual business tax of seventy-five dollars per year per vehicle operated within the city, or may make a binding election to pay a business tax measured by business classification and gross receipts derived from business within the city pursuant to Section 6.04.280.

C. Upon payment, identifying vehicle decals will be issued by the collector in a quantity equal to the number of vehicles through which business is conducted.

D. Any business by vehicle that operates additional vehicles within the city after payment of annual taxes has been made shall make an additional application to the collector to account for the additional vehicles. After the appropriate tax has been paid for the additional vehicle(s), additional vehicle decals will be issued.

E. Taxes for the first year of operation shall not be prorated, unless the annual gross receipt method is elected by the taxpayer.

(Ord. 2224 § 2 (part), 2003)

(Ord. No. 2017-2439, § 3, 10-3-2017)

A. Out-of-city Contractors. Except as provided in Section 6.04.320(C), and in lieu of a tax based on gross receipts, every state-licensed contractor licensed as an A or B contractor conducting business in the city who does not have a fixed place of business in the city shall pay annually a flat tax of seventy-five dollars. Every contractor conducting business in this city as a subcontractor or state-licensed C or D contractor who does not have a fixed place of business in the city shall pay annually a flat tax of fifty dollars. Any contractor may make a binding election to pay a business tax measured by classification and gross receipts derived from business within the city pursuant to Section 6.04.280. Penalties shall accrue at the rate set forth in Section 6.04.370(D). A contractor who commences business during the last quarter of a calendar year shall pay only twenty-five percent of the initial installment at the time of application if a flat tax is elected, and will be subject to normal tax the years following.

B. Every other person not having a fixed place of business in the city who conducts business in the city and is not otherwise subject to a tax by any of the other sections of this chapter shall pay a business tax calculated at the same rate prescribed herein for the same type of business having a fixed place of business within National City based on the gross receipts earned within National City or twelve percent of gross receipts from all sources within California where the amount of gross receipts earned within National City cannot readily be calculated or otherwise be determined by the collector.

C. In order to promote public safety, the city council will allow any out-of-city contractor installing a work of improvement that does not exceed five hundred dollars in materials and labor, inclusive, to pay a tax of ten dollars for a one-day tax certificate, in addition to any applicable building or engineering permit fees. This certificate shall not be available during any calendar year when the contractor performs any single job exceeding five hundred dollars, or has performed two jobs each not exceeding five hundred dollars. The applicant shall make his or her declaration under penalty of perjury on a form provided by the collector to the building and safety director or city engineer in conjunction with the permit application for the work of improvement. A receipt showing proof of payment shall qualify as the business license.

D. First year's taxes will not be prorated, except as provided in Section 6.04.320(A).

(Ord. 2224 § 2 (part), 2003)

(Ord. No. 2017-2439, § 4, 10-3-2017)

A. Taxes applicable to specific categories of businesses previously established in Title 6 by Ordinances 708, 1048, 1231, 1699, 1788 or 2037 are recodified and summarized in Appendix B to this chapter. Recodification in Appendix B is not intended to constitute enactment of a new tax and shall be construed in light of that intent.

B. Video Machines. A business which also operates video machines on its premises shall pay in addition to any tax based on gross receipts for its principal business an additional tax of fifty-five dollars per machine, not to exceed a total of four thousand five hundred dollars annually for all video machines. An identifying decal shall be affixed to each machine, unless the business tax license specifies the number of machines for which tax has been paid and the number of machines installed does not exceed the number specified on the business tax license (thereby allowing for replacement and maintenance).

C. Amusement Arcades. Amusement arcades shall be taxed on a flat tax basis of one hundred dollars per year.

D. Any business listed in this section or Appendix B may make a binding election to pay its tax on the basis of total gross receipts and the classification schedule determined by the collector, including revenues from coin-operated equipment or amusement devices, instead of this section, and such election shall be thereafter binding upon that business.

E. A swap meet shall be taxed at the rate of four thousand five hundred dollars per year instead of gross receipts, unless it makes a binding election to pay its tax on the basis of total gross receipts and the classification schedule determined by the collector.

F. A pawnshop shall be taxed at the rate of one hundred fifty dollars per year instead of gross receipts, unless it makes a binding election to pay its tax on the basis of total gross receipts and the classification schedule determined by the collector.

(Ord. 2224 § 2 (part), 2003)

(Ord. No. 2017-2439, § 5, 10-3-2017)