Chapter 5.16 — BUSINESS LICENSE TAX

No person shall conduct any business within the city without first obtaining and thereafter maintaining a business license pursuant to the provisions of this chapter, and paying the tax therefor. As used in this chapter, the word “person” shall mean and include an individual, and any domestic or foreign corporation, association, syndicate, joint venture, partnership, club, trust or sureties of any kind, excepting any public utility that pays a franchise fee to the city. (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

Every person conducting any business within the city shall pay the business license tax in the amount established by resolution of the city council. (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

• A. Except as otherwise established by resolution of the city council for specified businesses, business licenses shall be valid for one year, with the license year to commence January 1st. The tax imposed by this chapter shall be paid by the last day of said month and is delinquent if unpaid thereafter.

• B. Notwithstanding subsection A of this section, the tax due for the first business license issued to any person for a business enterprise newly established in the city shall be prorated from the first day of the quarter of the license year in which it is applied for to the end of the license year. Thereafter, the business license for such person shall be renewed on an annual basis for the license year. The city council may by resolution deem the business license for any particular business not to be proratable.

• (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

• A. Separate business licenses shall be obtained for each branch establishment or location of the business engaged in, as if each such branch establishment or location were a separate business.

• B. Each business license shall authorize a person to engage only in the business for which the business license has been issued at the location or in the manner designated in such license.

• C. If any person is conducting two or more businesses at the same location, the business license tax will be computed by taking the highest business license tax applicable to one of such businesses and adding to it fifty percent of the business taxes applicable to each of the other businesses.

• (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

When any person shall by use of signs, circulars, cards, telephone book or newspaper advertise, hold out or represent that he is in business in the city, or when any person holds an active license

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City of Palos Verdes Estates, CA

BUSINESS TAXES, LICENSES AND REGULATIONS

§ 5.16.050

§ 5.16.090

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 such person is conducting a business in the city. (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

Any person who carries on any business without first obtaining a business license therefor shall pay a penalty of ten percent of the prescribed business license tax, in addition to the tax otherwise established for such business. An additional ten percent penalty shall be added for each five days or fraction thereof after notice shall have been issued to such person directing him to obtain a business license until the business license application is filed and tax paid, except that the total amount of the penalty added shall in no event exceed fifty percent of the tax otherwise established for such business. Such penalty shall be collected and the payment thereof shall be enforced in the same manner as other business license taxes are collected and payment enforced. (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

For failure to pay a business license tax when due, the collector shall add a penalty of ten percent of said business license tax on the last day of each month after the due date thereof, providing that the amount of such penalty to be added shall in no event exceed fifty percent of the amount of the business license tax otherwise due.

(Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

No license, receipt, sticker, tag, plate or symbol shall be issued, nor shall one which has been suspended or revoked be reinstated or reissued, to any person who at the time of applying therefor is indebted to the city for any delinquent business license tax or penalties. (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

• A. No building, grading, electrical, plumbing, pool, sewer or heating/air conditioning permit shall be issued to any general contractor or subcontractor who has not paid the tax for and received a business license for this city.

• B. Each general contractor shall:

  1. Furnish an affidavit that all work is being done solely by the contractor or his/her direct employees; or

  2. Furnish the city with an affidavit listing the names of subcontractor(s) who will perform the work for which the permit is being taken. In this event, the city shall verify that such subcontractor(s) are operating with a current city business license prior to scheduling a final inspection for any such work. The contractor may amend the affidavit of subcontractor(s) used, or may furnish an affidavit that all work has been done by the contractor who has paid the business license tax.

• C. No final inspection shall be performed by the city on any work for which a business license

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City of Palos Verdes Estates, CA § 5.16.090

PALOS VERDES ESTATES CODE

§ 5.16.120

tax has not been paid for all contractors and subcontractors of record at the time the job is completed.

• (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

All business licenses or other identifying documents issued by the collector must be kept and posted in the following manner:

• A. Any licensee engaged in business at a fixed place of business in the city shall keep the license posted in a conspicuous place upon the premises where such business is carried on.

• B. Any licensee engaged in business but not operating at a fixed place of business in the city shall keep the license upon his person or upon a vehicle utilized by such licensee in connection with the operation of such business at all times while engaged in business within the city.

• (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

The following are exempted from the payment of the business license tax required by this chapter:

• A. Any charitable institution, organization, or association organized and conducted for charitable purposes only;

• B. Any person conducting or staging any concert, exhibition, lecture, dance, amusement or entertainment where the receipts, if any be derived therefrom, are to be used solely for charitable or benevolent purposes and not for the private gain of any person in whole or in part;

• C. Any religious, fraternal, educational, military, state, county or municipal organization or association conducting any business which is open to members thereof only and not open to the public;

• D. Any religious, fraternal, educational, military, state, county or municipal organization or association conducting or staging any amusement or entertainment, concert, exhibition, lecture, dance or athletic event, when the receipts derived are to be wholly for the benefit of such organization and not for the private gain of any person in whole or in part;

• E. Any solicitor engaged in interstate commerce when the business license tax would create a burden upon interstate commerce;

• F. Any natural person of sixteen years of age or less and whose annual gross receipts from any and all businesses are five hundred dollars or less;

• G. Any person not required to pay a business license tax pursuant to any applicable statute or constitutional provision of the United States or the state of California;

• H. Any taxicab operator or driver; provided, that the operator or driver possesses a valid permit issued by either the county of Los Angeles or the city of Los Angeles.

• (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

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City of Palos Verdes Estates, CA

BUSINESS TAXES, LICENSES AND REGULATIONS

§ 5.16.120

§ 5.16.150

• A. Any person claiming an exemption pursuant to PVEMC § 5.16.110 shall file a sworn statement with the collector stating the facts upon which exemption is claimed. In the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this chapter. The collector shall, upon a proper showing contained in the sworn statement, issue a business license to such person claiming exemption under this section without payment to the city of the business license tax required therefor.

• B. The collector, after giving notice and a reasonable opportunity for hearing to a person with a business license tax exemption, may revoke any business license granted pursuant to the provisions of this section upon information that said person is not entitled to the exemption as provided herein.

• C. This exemption shall not apply to any person who for profit or gain conducts any business merely because such person has paid or agreed to pay to an exempt organization a portion of the receipts of the business as a reward or recompense for the sponsorship of such business, or for any other reason.

• (Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

Persons required to pay a business license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any business revenue tax for the privilege of doing business required under any other ordinance of the city, nor from any other code, and such person shall remain subject to the regulatory provisions of other ordinances and other provisions of this code.

(Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

The finance director or his designee shall act as the collector under this chapter. The finance director may adopt such administrative procedures as are in his opinion necessary to effectuate the terms of this chapter.

(Ord. 559 § 2, 1992; Ord. 701 § 2 (Exh. 1), 2012)

Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor, except that notwithstanding any other provision of this section, any violation constituting a misdemeanor under this chapter may, in the discretion of the enforcing authority, be charged and prosecuted as an infraction.

(Ord. 627 § 4, 2001; Ord. 701 § 2 (Exh. 1), 2012)

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City of Palos Verdes Estates, CA § 5.20.010

BUSINESS TAXES, LICENSES AND REGULATIONS

§ 5.20.040