§ 3-1

The following words or phrases as used in this chapter shall have the following meanings: (a) “Business” includes any business, commercial enterprise, trade, calling, vocation, profession, occupation, or means of livelihood, whether or not carried on for gain or profit. (b) “City” means the City of Ontario. (c) “Evidence of doing business” shall include, but not be limited to, a person's use of signs, circulars, cards, telephone books, newspapers, or trade publications to advertise, hold out or represent that such person is doing business within the City, or when any person gives other evidence of transacting and carrying on business within the City, or such person fails to deny in a sworn statement given to the License Official that such person is not engaged in business within the City, after being requested to do so by the License Official. (d) “Gross receipts.” (1) Unless a different meaning is specifically defined, “gross receipts” shall include: (i) The total amount of the sale price of all sales, the total amount charged or received for the performance of any act, service, or employment of whatever nature it may be, whether such service, act, or employment is done as part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit allowed, including all receipts, cash, credits, and property of any kind or nature, any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever;

(ii) The amount of any federal manufacturers' or importers' excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge; (iii) In connection with a person leasing, subleasing, or renting property, gross receipts shall include all amounts paid by a tenant or subtenant to a lessor or sublessee for the services performed, or materials used, or utilities or facilities furnished by the lessor or sublessor on the premises or in connection with the tenant's or subtenant's use, possession, or the right to possess the property, including but not limited to income from laundry facilities on the property; any receipts paid by a tenant or subtenant to a lessor or sublessor for the use or possession of land, or the right to use or possess land other than that upon which the building or structure is located but which is used or possessed or is available for use or possession by a tenant or subtenant for purposes related to the tenancy; all amounts paid as prepaid rent; and all amounts paid by a tenant or subtenant for the rental of any furniture, equipment, fixtures, garage or storage space; (iv) Receipts of any person received as commissions or fees earned, or charges of any character made or compensation of any character received, for the performance of any service by such person or any of such person's employees and receipt of any person received as partial or full compensation or reimbursement for salaries, payroll taxes, fringe benefits, and any and all similar expenses for persons who are employees of said person and receipts of any person received as partial or full compensation or reimbursement for equipment, supplies, utilities, or other items or services acquired by said person in that person's name and used or consumed in the performance of services; (v) Gross receipts of a person who engages in the occupation of bringing buyers and sellers together for negotiations, or who negotiate or arrange terms and conditions for buyers and sellers for the purpose of effecting a sale of real property or personal property (including securities, commodities, and insurance) shall include all commissions, fees, charges, moneys or compensation of any character received by such person for performing in the capacity described herein; (vi) Gross receipts of a person buying, selling or offering for sale new or used automobiles, trucks, vans, trailers, house trailers, or campers, including parts and accessories, and any such maintenance and repair services for such vehicles, shall include all sales arising from the location or locations in the City, regardless of where the product is delivered; (vii) Gross receipts of an administrative headquarters, including research and development facilities, shall be equal to the cost of operation of such administrative headquarters. Costs of operation shall be equal to the total of the following items: (A) Annual fair rental value of all real property located in the City and used for such corporate or administrative headquarters; (B) Annual payroll of all employees based in the City; (C) The cost of all utilities related to the operation of such corporate or administrative headquarters; (D) Gross receipts of a business licensed as a manufacturer shall include all gross receipts from products manufactured in the City. In addition, if the product is not sold from the manufacturer's location in the City, an amount equal to the value of all component parts of the product shall be included in the licensee's gross receipts. (viii) Gross receipts of a public utility that does not otherwise pay a franchise fee to the City shall include one hundred percent (100%) of gross receipts derived from utility services provided within the City and gross receipts attributable to any other business activity conducted within the City. (2) “Gross receipts” shall not include: (i) The amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge;

ovided within the City and gross receipts attributable to any other business activity conducted within the City. (2) “Gross receipts” shall not include: (i) The amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge;

(ii) Any California State, city, or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; (iii) Such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale; (iv) Any refundable deposit which is returned to the depositor; (v) That portion of the receipts of a general contractor which represents payments to subcontractors, provided such subcontractors are licensed under the provisions of this chapter and that the general contractor furnishes the License Official with the names and addresses of the subcontractors and the amounts paid to each subcontractor; (vi) Bad debts taken from gross receipts reported during a prior tax year in accordance with generally accepted accounting practices; (vii) Anything which the City may not lawfully include by virtue of the Constitution of the United States or the Constitution of the State of California; (viii) Fees for actual costs of governmental requirements (e.g., inspections, plan checks, and the like) paid by a licensee on behalf of a third party. (e) “Operate.” Manage, control or carry on, whether done as an owner, an agent, an employee, or a lessee, or a licensee. (f) “Person” shall include natural persons, fiduciaries, partnerships, corporations, joint ventures, unincorporated associations, clubs, business trusts or so-called “Massachusetts trusts,” and every other entity through or by means of which any business, financial operation, or venture is carried on in the City. “Person” shall not include a natural person who is engaged in business in the City solely as the employee of another person. (§ 1, Ord. 2526, eff. April 8, 1992)

There is hereby created a License Bureau of the City. (§ 1, Ord. 2526, eff. April 8, 1992)

There is hereby created the office of License Official of the City. As used herein, “License Official” shall include his or her authorized assistants. (§ 1, Ord. 2526, eff. April 8, 1992)

Under the supervision of the City Manager, the License Official is hereby charged with the duty of carrying out and enforcing the provisions of this chapter. In addition to all other powers conferred upon him or her, the License Official shall have the authority, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding thirty (30) days and in such case to waive any penalty which would otherwise have accrued. He or she shall have the further authority, with the consent of the Council, to compromise any claim as to the amount of business license taxes due. (§ 1, Ord. 2526, eff. April 8, 1992)

It shall be unlawful for any person, whether as principal or agent, to operate in the City any business whether or not such business is carried on for gain or profit, without first having paid the required business license taxes and having procured a business license from said City so to do; and the carrying on of any business not specifically exempted by law without first having complied with the provisions of this chapter shall constitute a separate violation thereof for each and every day that such business is so carried on. (§ 1, Ord. 2526, eff. April 8, 1992)

The business licenses required to be obtained and the taxes required to be paid are hereby declared to be required pursuant to the taxing power of the City for the purpose of obtaining revenue and for regulation to the extent provided in this Chapter. Compliance with such requirements shall not be construed to be a condition precedent to engaging in any business within the City where the imposition of such a condition precedent would be contrary to federal or state law. (§ 1, Ord. 2526, eff. April 8, 1992)

(a) License Official to issue. The business licenses required by this chapter shall be issued by the License Official and shall state therein the amount thereof, the period of time covered thereby, the name of the person to whom issued, the business licensed and the location or place of business where such business is to be carried on. (b) Prohibition on assignment or transfer. No business license granted or issued under provisions of this chapter shall be in any manner transferred or assigned. If a person that holds a City license loans or otherwise allows such City license to be used by a non-licensed person, such City license may be revoked. (c) Duplicate business licenses. The License Official shall make a charge of Ten Dollars ($10.00) for each duplicate business license issued under the provisions of this chapter which has been lost or destroyed. (d) Change of location. Where a business license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may, upon application therefor and paying a fee in the amount of Ten Dollars ($10.00), have the business license amended to authorize the transacting and carrying on of such business under such license at some other location to which the business is, or is to be, moved. (e) Mistake not binding on City. In no case shall any mistake made by the License Official in stating the amount of a business license tax prevent or prejudice the collection by the City of the amount actually due from any licensee. (§ 1, Ord. 2526, eff. April 8, 1992)

(a) All business license taxes shall be paid in advance in legal money of the United States, at the office of the License Official. (b) A charge in an amount specified in the Citywide Fee Schedule currently in effect at the time of the violation shall be assessed for any check returned for lack of sufficient funds. Penalties shall also be assessed pursuant to § 3-