Chapter 3.48 — REQUIREMENTS—EXEMPTIONS

There are imposed upon the businesses, trades, professions, callings and occupations specified in Chapters 3.40 through 3.96 license taxes in the amounts hereinafter prescribed. It is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so and paying the tax hereinafter prescribed or without complying with any and all provisions of the Palm Springs Municipal Code, any Emergency Order, and the applicable provisions of Chapters 3.40 through 3.96. This section shall not be construed to require any person to obtain a license prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state. Persons not so required to obtain a license prior to doing business within the city nevertheless shall be liable for payment of the tax imposed hereunder. (Prior code § 2111; Ord. 908 § 2, 1971; Ord. 2026 § 12, 2020)

• (a) Branches and Separate Businesses.

Except as otherwise specifically provided in this code, a separate license must be obtained for each business and for each branch establishment or location of a business. A separate license must be obtained for each separate business not ordinarily an accepted part of a licensed business although carried on at the same location as such licensed business. Each license shall evidence tax payment only, for the business licensed thereby at the location and in the manner designated in such license.

• (b) Separate Computation of License Tax.

Where a license tax is hereby imposed upon any business, and such business is conducted with branch establishments or at separated fixed places, the tax shall be computed as if each such branch or place were a separate and independent business.

• (c) Businesses Classifiable Under Different Categories.

Whenever a business may reasonably be classified under two or more separate specific categories set forth in Chapters 3.40 through 3.96 with differing bases for tax computation, the tax shall be computed using the basis which will render the highest amount of tax. (Prior code § 2112; Ord. 908 § 2, 1971)

When any person by use of signs, circulars, cards, telephone book, or newspapers, advertises, holds out, or represents that he is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he is in business in the city, and such person fails to deny by a sworn statement given to the collector that he 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 he is conducting a business in the city. (Prior code § 2113; Ord. 908 § 2, 1971)

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City of Palm Springs, CA § 3.48.040

PALM SPRINGS CODE

§ 3.48.050

None of the license taxes provided for herein shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitution of the United States and the state.

In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he may apply to the collector for an adjustment of the tax. Such application may be made before, at, or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show his method of business and 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. The collector shall then conduct an investigation, and after having first obtained the written approval of the city attorney, shall fix as the license tax for the applicant, an amount that is reasonable and nondiscriminatory, or if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon any measure which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by Chapters 3.40 through 3.96. The collector may require the applicant to submit, either at the time of termination of applicant's business in the city, or at the end of each three-month period, a sworn statement of the gross incomes from local sources upon which a license tax adjustment may be based; provided that no additional license tax during any one calendar year shall be required after the licensee shall have paid an amount equal to the annual license tax as prescribed in Chapters 3.40 through 3.96. (Prior code § 2114; Ord. 908 § 2, 1971)

The provisions of Chapters 3.40 through 3.96 shall not be deemed or construed to require payment of a license tax in connection with the main functional activities or related operations or business affairs of any religious, charitable or eleemosynary institution or organization, qualified for exemption under Section 501 of the U.S. Internal Revenue Code or equivalent statute, and which activities, operations or affairs are carried on wholly for religious or charitable purposes and from which profit is not derived, either directly or indirectly, by any individual, firm or corporation; provided, however, that the foregoing rule of exemption shall be subject to the following limitations, qualifications and modifications:

• (1) The within exemption shall not be deemed applicable with regard to any commercial-type revenue producing rental activity or other merchandising or business activities directly or indirectly operated on a regular basis by or on behalf of a religious or charitable institution or organization;

• (2) When activities otherwise exempt under the above basic rule are conducted for and on behalf of an exempt institution or organization by a profit-making contractor or concessionaire or the like, then the exemption shall be applicable only with regard to the religious or charitable organization, and shall not be applicable with regard to the activities, operations or revenues received by the contractor or concessionaire or the like;

• (3) Notwithstanding the foregoing subsection, the additional tax for new construction applicable pursuant to Chapter 3.94 shall be waived with regard to construction of

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City of Palm Springs, CA

REVENUE AND FINANCE

§ 3.48.050

§ 3.48.080

buildings or additions for use by an exempt institution or organization directly in connection with its main functional religious or charitable operations, and which use is not in connection with commercial-type revenue producing activities, rentals or operations on which tax exemption would be denied pursuant to subsection (1) above;

• (4) No license tax shall be required for the conducting of any entertainment, concert, exhibition, or lecture on scientific, historical, literary, religious, or moral subjects within the city, whenever the receipts therefrom are to be appropriated to any institution or organization exempt under the above basic rule, provided that this exemption shall not apply to any person or entity conducting business and deriving profit, incidentally to producing the receipts as stated;

• (5) No license tax shall be required for the conducting of any temporary entertainment, concert, exhibition, or lecture by any religious, charitable, civic, fraternal, educational, military, state, county or municipal organization or association, whenever the receipts therefrom are to be appropriated for the purposes and objects for which such organization or association was formed, and from which profit is not derived by any other persons except those in the business of producing, staging, or otherwise participating in such events, and provided that this exemption shall not apply to such or any other persons or entities conducting business and deriving profit, incidentally to producing the receipts as stated;

• (6) Nothing in this section shall be deemed to exempt any person, organization or association from complying with other provisions of this code or any other law or regulation requiring a permit or other approval from the city council or any city department, board, commission or other entity or public official, to conduct any business or activity.

• (Prior code § 2115; Ord. 908 § 2, 1971; Ord. 928 § 1, 1972)

Every honorably discharged or honorably released person having served in the Armed Forces of the United States in any Indian War, the Spanish-American War, any Philippine Insurrection, The Chinese Relief Expedition, World War I, World War II, the Korean War, or the Viet Nam War, who is physically unable to obtain a livelihood by manual labor, and who shall be a qualified elector of the state, may, subject to other ordinances of the city, distribute, circulate and hawk, peddle and vend any goods, wares or merchandise owned by him without payment of any license tax or fee whatsoever.

(Prior code § 2116; Ord. 908 § 2, 1971)

The license provisions of this title shall not be deemed to include or apply to domestic household help in the employ of an individual home owner.

(Prior code § 2117; Ord. 908 § 2, 1971)

No provisions herein shall be deemed or construed to require the payment of a business license tax by any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or of the state from the payment of such taxes as are herein prescribed.

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City of Palm Springs, CA § 3.48.080

PALM SPRINGS CODE

§ 3.48.090

Any person claiming an exemption pursuant to this section shall file a sworn statement with the collector stating the facts upon which exemption is claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed herein.

The collector shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the city of the license tax required herein.

The collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein. (Prior code § 2118; Ord. 908 § 2, 1971)

The city council, for good and satisfactory cause shown, may order the issuance of a license for less than the fees herein provided or without the payment of any fee whatsoever. (Prior code § 2119; Ord. 908 § 2, 1971)

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City of Palm Springs, CA

REVENUE AND FINANCE

§ 3.52.010

§ 3.52.040