Article I — BUSINESS TAX CERTIFICATES

DIVISION 1. GENERAL PROVISIONS

SEC. 11-1. DEFINITIONS.

For the purposes of this article, the following words shall have the following meanings:

(A) ANNIVERSARY MONTH - The month in which a business first applied for a business tax certificate from the city. For those businesses in which the original anniversary month cannot be determined, the city shall assign an anniversary month and that date shall be the anniversary month for purposes of this article.

(B) BRANCH ESTABLISHMENT - A separate location of the same business for which a business tax certificate is obtained.

(C) BUSINESS - Professions, trades and occupations and every kind of calling, whether or not carried on for profit, not including the performance of a governmental function by a public agency.

(D) BUSINESS TAX SCHEDULE - The schedule of taxes and fees applied to businesses pursuant to this chapter, enacted or revised by resolution of the city council.

(E) CITY - The City of Oxnard.

(F) COLLECTOR - The police chief or designee.

(G) COST OF OPERATIONS - The total amount expended for conducting a business within the city, including, but not limited to, wages, salaries, benefits, bonuses, leases and rentals for equipment and facilities, utilities, telephone, maintenance and general overhead expenses.

(H) EMPLOYEE - Any person engaged in conducting any business and earning regular wages or salary or directly participating in the profits of the business, including, but not limited to, owners, any member of an owner's family, proprietors, officers, directors, partners, managers, operators, trustees, trustors, beneficiaries, associates, salespeople, solicitors and joint venturers, but not including independent contractors.

(I) FIXED PLACE OF BUSINESS - A store, office or place, with a person or persons who are regularly in charge, where business is regularly conducted from day to day, week to week, for a period of six months or more, not including lodging rooms or places used temporarily, or not equipped with furniture, equipment and stock in trade customary to the particular business, but including a residence if the business is conducted from such residence in compliance with the city code and other laws.

(J) GROSS RECEIPTS - The total of amounts actually received or receivable from sales or for the performance of any act or service for which a charge is made or

credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise, including all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, but not including the following:

(1) Cash discounts allowed and taken on sales;

(2) Credits allowed on property accepted as part of the purchase price and which property may later be sold;

(3) Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

(4) Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit;

(5) Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected and the

agent or trustee has furnished the collector with the names and addresses of such persons and the amounts paid to them;

(6) That portion of the receipts of a general contractor which represent payments to subcontractors, provided that such subcontractors that do business in the city

are licensed and the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each subcontractor;

(7) Receipts of refundable deposits other than refundable deposits forfeited and taken into income of the business;

(8) As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion that represents commission or other income to

the agent or broker;

(9) As to a retail gasoline dealer, a portion of receipts from the sale of motor vehicle fuels to the motor vehicle license tax imposed by and previously paid under the

Cal. Rev. and Tax. Code; and

(10) As to a retail gasoline dealer, the special motor fuel tax imposed by federal law if paid by the dealer or collected by the dealer from the consumer or purchaser.

(K) INDEPENDENT CONTRACTOR - Any person engaged to aid in the business of another person and compensated through commission or in any manner other than regular wages or salary or direct participation in the profits of the business.

(L) PERSON - Any agent, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, association, company, joint stock company, business trust, domestic or foreign corporation, syndicate, society, any group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit or otherwise, and an individual or natural person who is 18 years of age or older, not including an employee, and not including the city.

(M) PUBLIC AGENCY - The United States, the State, a county, a city, a county and a city, a public authority, a public district, and any other political subdivision of the State.

(N) SALE - The transfer, in any manner or by any means, of title to real or personal property for consideration, or the serving, supplying, or furnishing for consideration of any property, including a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price, including any transaction that is or that, in effect, results in a sale within the law.

(O) SWORN STATEMENT - An affidavit sworn to before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.

(`64 Code, Sec. 16-1) (Ord. No. 2456, 2804, 2838, 2977, 3052)

SEC. 11-2. PURPOSE.

The business tax imposed by this article is for revenue purposes only.

(`64 Code, Sec. 16-2) (Ord. No. 2456, 2838)

SEC. 11-3. PAYMENT OF OTHER BUSINESS TAXES.

Any person required to pay a business tax for conducting a business under this chapter shall not be relieved from the payment of any business tax for the privilege of conducting such business required under any provision of the code or any other ordinance or regulation of the city.

(`64 Code, Sec. 16-3) (Ord. No. 2456, 2838)

SEC. 11-4. BUSINESS TAX CERTIFICATE REQUIRED.

(A) Any person conducting a business within the city shall obtain a business tax certificate and pay a business tax and the following business tax fees when applicable: an application fee, a renewal fee, an amendment fee, a duplicate tax certificate fee, a duplicate sticker fee and a fingerprint report fee. The amount of the business tax and the fees shall be set in the business tax schedule. The amount of the fees shall not exceed the city's actual cost of processing applications, renewals, amendments, duplicate business tax certificates, duplicate stickers and fingerprint reports.

(B) This article applies to any business conducted within the city, regardless of whether the business is conducted from a fixed or other place of business or outside of the city.

(`64 Code, Sec. 16-4) (Ord. No. 2456, 2838)

SEC. 11-5. MULTIPLE TAX CERTIFICATES; BRANCH ESTABLISHMENTS.

(A) A person shall obtain a separate business tax certificate for each separate type of business conducted at the same or different locations.

(B) Notwithstanding subsection (A) of this section, any person conducting two or more types of businesses at the same location or at different locations, which businesses are under the same management and are all taxable herein on gross receipts, whether optionally or otherwise, and which use a single set or an integrated set of books and records, may, at his/her option, pay only one business tax calculated on all gross receipts of the type of businesses under the schedule that applies to the business of such person that requires the highest percentage payment on such gross receipts. In such case, such person shall obtain a business tax certificate for each branch establishment or location.

(C) A person shall obtain a business tax certificate for each branch establishment of the same business.

(D) A person shall conduct only the business for which a business tax certificate is obtained at the location and in the manner stated in such business tax certificate.

(`64 Code, Sec. 16-5) (Ord. No. 2456, 2838)

SEC. 11-6. EVIDENCE OF CONDUCTING BUSINESS.

When any person shall by use of signs, circulars, cards, telephone book, newspapers, computer network, or other means, advertise, hold out or represent that he/she is conducting business in the city, or when any person submits a bid or proposal to do work or supply goods or materials in the city, or when any person holds an active license or permit or fictitious business name statement or seller's permit issued by a governmental agency indicating that he/she is conducting business in the city, and such person fails to deny by a sworn statement given to the collector that he/she is not conducting a business in the city, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that such person is conducting a business in the city.

(`64 Code, Sec. 16-6) (Ord. No. 2456, 2838)

SEC. 11-7. APPORTIONMENT OF TAX.

(A) The business taxes shall not be so applied as to occasion an undue burden on interstate, intercity or intrastate commerce or bear an unfair relationship to the

proportion of the taxed activity taking place within the city or be violative of the equal protection and due process clauses of the Constitution of the United States and the State.

(B) If a certificant or applicant for a business tax certificate believes that the business tax imposed places an undue burden upon interstate, intercity or intrastate commerce or bears an unfair relationship to the proportion of the taxed activity taking place within the city or is violative of such constitutional clauses, such person may apply to the collector for an apportionment of the tax.

(C) Such application may be made before, at the time of, or within six months after payment of the business tax. The applicant or certificant shall, by sworn statement and supporting testimony, show his/her method of business, the gross volume or estimated gross volume of business, and such other information as the collector may deem necessary in order to determine the extent, if any, of such undue burden or violation.

(D) The collector shall then conduct an investigation and fix as the business tax for the applicant or certificant, an amount that is reasonable and nondiscriminatory, or if the business tax has already been paid, order a refund of the amount over and above the business tax so fixed. In fixing the business tax to be collected, the collector may base the business tax on a percentage of gross receipts or any other measure that will assure that the business tax assessed is uniform with that assessed on businesses of like nature.

(E) Should the collector determine the gross receipts measure of business tax to be the proper basis, the collector may require the applicant or certificant to submit, either at the time of termination of the business of the city or at the end of each three-month period, a sworn statement of the gross receipts and may require the applicant or certificant to pay the amount of business tax therefor.

(F) The collector shall give the applicant or certificant notice of a determination made pursuant to section11-7(D) by personal service or by depositing the notice in the United States mail, postage prepaid, addressed to the applicant or certificant at his/her last known address. The applicant or certificant may within 15 days after the mailing or serving of such notice, appeal the collector's decision to the city manager in accordance with section 11-26.

(`64 Code, Sec. 16-7) (Ord. No. 2456, 2838)

SEC. 11-8. EXEMPTION PROCEDURE.

(A) Any person claiming an exemption from taxation under this chapter shall file a sworn statement with the collector, stating the facts on which exemption is claimed, as well as documentation requested by the collector to support the requested exemption, such as, but not limited to, evidence of non-profit status, prior year's tax returns, or licensing by the State. If the claim is not substantiated, such person shall be required to obtain the business tax certificate and pay the taxes imposed by the business tax schedule.

(B) The collector shall give the person claiming an exemption from taxation notice of the collector's decision by personal service or by depositing the notice in the United States mail, postage prepaid, addressed to such person at his/her last known address. Such person may, within 15 days after the mailing or serving of such notice, appeal the collector's decision to the city manager in accordance with section 11-26.

(`64 Code, Sec. 16-8) (Ord. No. 2456, 2838)

SEC. 11-9. EXEMPT ORGANIZATIONS, ACTIVITIES, PERSONS.

(A) Nothing in this article shall be deemed or construed to apply to any person, business or activity exempt by virtue of the Constitution, statutes or law of the United States or the State from the requirement to obtain a business tax certificate or pay a business tax or an application, renewal, amendment or duplicate business tax fee.

(B) In addition, the following organizations, activities and persons are exempt from certain provisions of this article, as follows:

(1) Non-profit organizations - An institution or organization that is exempt from the payment of federal income taxes under Subchapter F, commencing with Section 501 of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended from time to time, or that is exempt from the payment of State income taxes under Cal. Rev. and Tax. Code, Chapter 4, commencing with Section 23701, of Part 11 of Division 2, as amended from time to time, shall register such institution or organization with the collector and is exempt from the requirements imposed by this article to obtain a business tax certificate and pay business taxes. However, persons who peddle, solicit or canvass for such institutions or organizations shall comply with applicable requirements imposed by division 3 of this article.

(2) Benefit, charitable and non-profit activities - Any entertainment, dance, concert, exhibition or lecture from which the total receipts are to be donated to a non-

profit institution or organization described in subsection (1) of this section, to the State, the county, the city or to any church or school, is exempt from the requirements imposed by this chapter to obtain a business tax certificate and pay business taxes, provided that profit, other than wages paid to employees of such institutions or organizations, is not derived from such activity, either directly or indirectly, by any person. However, persons who peddle, solicit or canvass for such institutions or organizations shall comply with applicable requirements imposed by division 3 of this article. The exemption set out in this subsection shall not apply to persons employed to promote benefit, charitable and non-profit activities.

(3) Persons of limited income -

(a) Any person who receives social security retirement benefits or any other type of retirement benefits and whose income from any business does not exceed the

limits established by the laws of the United States and administered by the Social Security Administration that determine whether such person qualifies for full social security retirement benefits, is exempt from the requirements imposed by this article to obtain a business tax certificate and pay business taxes.

(b) However, such a person shall provide the collector with a list of any independent contractors hired by such person, and such persons who peddle, solicit or

canvass shall comply with applicable requirements imposed by division 3 of this article.

(4) Persons paying location use fees - Any person who has paid location use fees to the city is exempt from the requirements imposed by this article to obtain a

business tax certificate and pay business taxes for the same activity.

(5) Disabled veterans - Any person applying for a business tax certificate pursuant to Cal. Bus. and Prof. Code, Sections 16001 or 16001.5, to distribute circulars or to hawk, peddle and vend any goods, wares or merchandise owned by such person, except spirituous, malt, vinous or other intoxicating liquor, is exempt from the requirement to pay the business tax, business tax application, renewal, amendment and duplicate business tax certificate fees, and the fingerprint report fee, but is subject to the following requirements:

(a) Every applicant must furnish a certificate of physical disability to obtain a livelihood by manual labor, executed by a qualified physician; a certificate of

honorable discharge or honorable relief from the military, naval or air service of the United States; and proof of residence in the State.

(b) A business tax certificate when issued is subject to the following conditions:

(i) The business tax certificate is nontransferable and for the exclusive use of the certificant.

(ii) A business tax certificate found in the possession of one other than the certicant shall be surrendered to the collector and canceled, and neither the

certificant nor the holder thereof shall thereafter be entitled to hold a business tax certificate under this subsection.

(iii) The certificant must identify himself/herself whenever required to so by a police officer or a tax inspector of the city or the collector.

(iv) Whenever the certificant uses any wagon, cart, tray, basket or other vehicle or receptacle in vending any goods, wares or merchandise, the business tax

certificate shall be carried in a tax certificate holder attached to such vehicle or receptacle and in plain view.

(6) Certain independent contractors hired by the city - Any person hired by the city as an independent contractor to provide babysitting services; to perform artistic

demonstrations or give other performances; to provide classes in art, dance, crafts, cooking, sports, music, fitness, or dog obedience; to give lectures, readings, gallery talks, or workshops; or to officiate at city-owned locations are exempt from the requirements imposed by this article to pay business taxes for any fiscal year in which the city does not pay such person more than $2,400 for such services; provided, however, that this exemption shall apply only to income received from the city and not to income from any other source.

(7) Persons presenting events at the Performing Arts Theater - Any person who presents an event, program or performance at the Performing Arts Theater of the

Performing Arts and Convention Center is exempt from the requirements imposed by this article to obtain a business tax certificate and pay business taxes for an itinerant show based on such program or performance; provided, however, that this exemption shall apply only to such event, program or performance and the income therefrom and not to any other business conducted in the city or income therefrom; and further provided that this exemption does not apply to any business tax

certificate or business tax required for the business of promoting such an event, program or performance.

(8) Physicians occasionally providing services at St. John's Regional Medical Center - Physicians, surgeons and doctors of osteopathic medicine who provide

services at St. John's Regional Medical Center in the city on no more than 24 days in a calendar year are exempt from the requirements imposed by this chapter to obtain a business tax certificate and pay business taxes. This exemption does not apply to any other services that such physicians, surgeons and doctors of osteopathic medicine may provide within the city.

(C) No person other than the certificant shall use any business tax certificate issued pursuant to this subsection.

(D) No person shall purchase or transfer any business tax certificate issued pursuant to this subsection.

(E) Every applicant who wishes to peddle, solicit or canvass shall comply with applicable requirements imposed by division 3 of this article.

(`64 Code, Sec. 16-9) (Ord. No. 2456, 2603, 2629, 2665, 2838)

SEC. 11-10. APPLICATION.

(A) On applying for the first business tax certificate under this article or for a newly established business, the applicant shall furnish to the collector a sworn statement, on a form provided by the collector, setting forth the following information:

(1) The exact nature or kind of business for which a business tax certificate is applied;

(2) The street address where such business is to be conducted, and if the business is not to be conducted at a fixed place of business, the street addresses of the

residences of the owners of the business;

(3) If the application is for a business tax certificate to be issued to a person doing business under a fictitious name, the names and street addresses of the

residences of the owners of the business;

(4) If the application is for a business tax certificate to be issued to a corporation or a partnership, the names and street addresses of the officers or partners

thereof;

(5) If the amount of the business tax is measured by gross receipts, the information required by the application and any additional information required by the

collector to determine the amount of the business tax;

(6) Federal and State employer identification numbers, social security numbers, State resale numbers, driver's license numbers, telephone numbers and State

contractor's license number, class and expiration date; and

(7) Any further information the collector may require to identify the applicant or the business or to determine the type of business tax certificate to be issued or the

amount of business tax to be imposed.

(B) The applicant shall pay the business tax application fee at the time of submitting the completed application.

(C) If the amount of the business tax to be paid by the applicant is measured by gross receipts, the applicant shall estimate the gross receipts for a period of one full calendar year. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of business tax. However, the amount of such business tax is only provisional.

(D) At the end of the business tax period, the collector may request the certificant to verify gross receipts or cost of operations. Within 30 days of the request, the certificant shall report to the collector the gross receipts or cost of operations during the business tax period, and the business tax will be redetermined. If the certificant underpaid the redetermined business tax, the certificant shall immediately pay the amount due. If the certificant overpaid the redetermined business tax, the collector shall refund the overpayment.

(`64 Code, Sec. 16-10) (Ord. No. 2456, 2838)

SEC. 11-11. INFORMATION ON TAX CERTIFICATE; IDENTIFICATION STICKERS.

(A) On payment of the business tax application or renewal fee and/or the prescribed business tax, the collector shall issue such person a business tax certificate containing the following information:

(1) The name of the certificant;

(2) The name of the business for which the business tax certificate was issued;

(3) The place where such business is to be conducted;

(4) The date of expiration of the business tax certificate; and

(5) Any other information necessary for the enforcement of this chapter.

(B) Whenever the business tax is measured by the number of vehicles, devices, machines or other pieces of equipment, or whenever the business tax is measured by the gross receipts from the operation of such items, the collector shall issue only one business tax certificate, provided, the collector may issue for each tax period for which the business tax has been paid one identification sticker, tag, plate, or symbol for each such vehicle, device, machine, or piece of equipment.

(`64 Code, Sec. 16-11) (Ord. No. 2456, 2838)

SEC. 11-12. RENEWAL OF TAX CERTIFICATE.

An applicant for renewal of a business tax certificate shall submit to the collector a sworn statement, on a form to be provided by the collector, setting forth such information, including tax returns, concerning the applicant's business during the preceding year as the collector may require in determining the amount of the business tax to be paid. The applicant shall pay the business tax certificate renewal fee at the time of submitting the completed renewal application. Business taxes based on gross receipts shall be based on the actual gross receipts for the preceding year.

(`64 Code, Sec. 16-12) (Ord. No. 2456, 2838)

SEC. 11-13. AMENDMENT.

An amendment is any addition or deletion of the name, telephone number or address of any business owner or change of the address at which a business is conducted. A business tax certificate or application may be amended at the request of a certificant as long as the ownership of that business has not been substantially transferred to a new owner or the business has not been terminated. The certificant or applicant shall pay the business tax amendment fee at the time of requesting the amendment.

(`64 Code, Sec. 16-13) (Ord. No. 2456, 2838)

SEC. 11-14. FINANCIAL INFORMATION; AUDIT AND EXAMINATION.

(A) No financial information in an application shall be conclusive as to the matters set forth therein. The filing of the application shall not preclude the city from collecting by appropriate action such sum as is actually due and payable under this article. Such information shall be subject to audit and verification by the collector or designee, who are hereby authorized to examine, audit and inspect such books and records of any certificant or applicant for a business tax certificate, as may be necessary in their judgment to verify or ascertain the amount of the business tax and fee due.

(B) All persons subject to this article shall keep complete records of business transactions, including sales, receipts, purchases, and other expenditures, and shall retain all such records for examination by the collector or designee for a period of at least three years. No person required to keep records under this section shall refuse

to allow the collector or designee to examine the records at reasonable times and places.

(`64 Code, Sec. 16-14) (Ord. No. 2456, 2838)

SEC. 11-15. INFORMATION CONFIDENTIAL.

(A) No person shall make known in any manner whatever the business affairs, operations or other information obtained by an investigation of the records or equipment of any applicant or certificant under this chapter or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof set forth in any sworn statement or application, or to permit any sworn statement or application, or copy of either, or any book containing any abstract or particulars thereof, to be seen or examined by any person.

(B) Nothing in this section shall be construed to prevent:

(1) The disclosure of information to, or the examination of records and equipment by, a city official, employee or agent for collection of taxes, for the sole purpose of

administering or enforcing any provisions of this chapter or collecting taxes imposed hereunder;

(2) The disclosure of information to, or the examination of records by, federal or State officials, or the tax officials of another city or county, or city and county, if a

reciprocal arrangement exists, or to a grand jury or court of law upon subpoena;

(3) The disclosure of information and results of examination of records of particular certificants, or relating to particular certificants, to a court of law in a proceeding

brought to determine the existence or amount of any business tax liability of the particular certificants to the city;

(4) The disclosure, after the filing of a written request to that effect, to the certificant, or to his/her successors, receivers, trustees, executors, administrators,

assignees, and guarantors, if directly interested, of information as to the items included in the measure of any tax, whether paid, unpaid or required to be collected, and any interest and penalties thereon or any information in the certificant's application; (The collector may refuse to make any such disclosure if in his/her opinion the public interest would suffer thereby.)

(5) The disclosure to the city council, in a public meeting or otherwise, of facts concerning a matter to be acted on by the city council;

(6) The disclosure of general statistics regarding taxes collected or business conducted in the city;

(7) The disclosure of information and examination of records of any certificant who is a litigant in a lawsuit to which the city is a party and in which such information

or records are relevant to the issues in the lawsuit; and

(8) The disclosure to the extent otherwise required by law.

(`64 Code, Sec. 16-15) (Ord. No. 2456, 2838)

SEC. 11-16. DETERMINATION OF BUSINESS TAX.

(A) If any person fails to file any required sworn statement within the time prescribed, or fails to file a corrected sworn statement demanded by the collector, or if the collector is not satisfied with the information supplied in sworn statements or applications filed, or if any person subject to the business tax fails to apply for a business tax certificate, the collector may determine the amount of business tax due from such person by means of information reasonably available to the collector.

(B) (1) If such a determination is made, the collector shall give the person so assessed notice thereof by personal service or by depositing the notice in the United States mail, postage prepaid, addressed to the person so assessed at his/her last known address.

(2) Such person may, within 15 days after the mailing or serving of such notice, appeal the amount of the business tax to the city manager in accordance with