Chapter 3.96 — LICENSE TAXES COMPUTED ON GROSS RECEIPTS BASIS

Businesses and business activities listed in this chapter are subject to business license tax to be computed on a gross receipts basis. If any business listed or mentioned herein is also listed or covered elsewhere in Chapters 3.80 through 3.96 for tax computation on a different basis, the provisions of this chapter shall prevail.

(Prior code § 2241; Ord. 909 § 1, 1971)

• (a) Any person whose business is limited exclusively to renting, leasing or operating:

  • (1) Coin-operated vending machines dispensing tangible or intangible items, property, music, entertainment, recreation or other services; or

  • (2) Laundry equipment, whether or not coin-operated, but this category shall not be deemed to include coinoperated laundry equipment owned and operated by a retail establishment providing coin-operated laundry equipment for general public use; shall pay a license tax computed at the rate of one percent of all gross receipts actually derived from or directly attributable to the business activities conducted within the city.

• (b) Definition of "Gross Receipts."

For purposes hereof, "gross receipts" means all sums deposited in the machines or paid for the use of the machines, from any source, prior to the division, subtraction or distribution of any such moneys, but shall not include cash sums returned by the machines themselves to the customers.

• (c) Applicability of Certain Other Sections.

In administering and enforcing this section and other sections related hereto, the provisions of Sections 3.84.120, 3.84.130, 3.84.170 and 3.84.180 of this code shall be applicable insofar as they are appropriate and applicable in the particular circumstances, and are not inconsistent or in conflict with provisions in this chapter or with other law. (Prior code § 2242; Ord. 909 § 1, 1971; Ord. 931 § 3, 1972; Ord. 973 § 7, 1974)

In order to help defray the administrative costs of processing any such license tax payment, a minimum of five dollars per year shall be due from any licensee taxed on a gross receipts basis. (Ord. 973 § 8, 1974)

In all cases where the amount of license tax to be paid is to be computed on a gross receipts basis, the initial application for a license to be issued hereunder or for a newly-established business shall set forth, in addition to other information required pursuant to other sections of this code

Downloaded from https://ecode360.com/PA4982 on 2026-07-07

City of Palm Springs, CA

REVENUE AND FINANCE

§ 3.96.040

§ 3.96.060

the following information, sworn to or certified correct under penalty of perjury:

• (1) An estimate of the gross receipts for the period to be covered by the license to be issued;

• (2) Any further information which the collector may require to enable him to reasonably compute or estimate the amount of the license tax to be paid, and to issue the type of license applied for.

The estimate by the applicant, if accepted by the collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, however, the amount of the license tax so determined shall be tentative only, and such person shall, within thirty days after the expiration of the period for which such license was issued, furnish the collector with a statement, sworn to or certified correct under penalty or perjury, in such form as may be reasonably required by the collector, showing the gross receipts during the period of such license, and the license tax for such period shall be finally ascertained and paid after deducting from the payment found to be due, the amount paid at the time the initial license was issued.

(Ord. 973 § 8, 1974)

• (a) In all cases, the applicant for a renewal of a license upon which the tax is computed on a gross receipts basis shall submit to the collector, for his guidance in ascertaining the amount of the license tax to be paid on renewal, a statement sworn to or certified correct under penalty of perjury, and in such form as may be required by the collector setting forth such information concerning the applicant's business during the preceding year as may be required by the collector to enable him to ascertain the amount of the license tax to be paid by the applicant pursuant to the provisions of this title.

• (b) All persons subject to liability for payment of license taxes computed on a gross receipts basis shall keep complete records of all business transactions which are to be used or referred to in order to compute properly the amount of taxes payable, including, if appropriate, sales, receipts, purchases and other expenditures, and all such persons shall retain all such records for examination by the collector. Such records shall be maintained for a period of at least three years. No person required to keep records under this section shall refuse to allow authorized representatives of the collector to examine the records at reasonable times and places.

• (Ord. 973 § 8, 1974)

• (a) In order to verify that applications and statements submitted pursuant to this title, and that tax computations for businesses taxed on a gross receipts basis, are made accurately, correctly and truthfully, the collector shall have full power and authority to audit and inspect any and all business and accounting records of any such business, relating directly or indirectly to any business activity conducted within the city. The collector shall, in this connection, have authority to take whatever means he deems necessary or useful to require an accurate count, or to himself make or participate in the making of an accurate count, of any coins derived by any coin-operated machine or machines.

• (b) In implementation of the collector's auditing powers, he may require an applicant or

Downloaded from https://ecode360.com/PA4982 on 2026-07-07

City of Palm Springs, CA § 3.96.060

PALM SPRINGS CODE

§ 3.96.070

licensee to submit a true copy of the state sales and use tax returns filed relative to any coin-operated machines or business activities which are taxable on a gross receipts basis. The collector may also require a true copy of any other tax statement filed with any governmental entity by the applicant, licensee or by any other individual or firm owning, renting, leasing or operating machines taxed on a gross receipts basis, which other tax statement discloses the gross receipts received from owning, renting, leasing or operating such machines. Refusal or wilful failure of any person to comply with any such requirement by the collector is unlawful.

(Ord. 973 § 8, 1974)

Any business license issued by the collector in connection with which the taxes payable are computed upon a gross receipts basis may be revoked by the collector for failure of the licensee to report, or to truthfully report, the gross receipts which are subject to such taxation. No such revocation shall, however, take place until after a hearing conducted by the collector with due notice and in accordance with the legal principles of due process. (Ord. 973 § 8, 1974)

Downloaded from https://ecode360.com/PA4982 on 2026-07-07

City of Palm Springs, CA