Chapter 5.04 — BUSINESS LICENSE TAX

* For statutory provisions authorizing cities to license businesses for revenue and regulation purposes, see Gov. Code §37101.

Unless it is apparent from the context that another meaning is intended, the following words when used herein have the meaning attached to them by this chapter:

A.

"Average number of persons employed" means the average number of persons employed daily in the applicant's business for the period of one year or quarter, and shall be determined by ascertaining the total number of hours of service performed by all employees during the next preceding year or quarter, and dividing the total number of hours of service thus obtained by the number of hours of service constituting a day's work, according to the custom of laws governing such employments, and by again dividing the sum thus obtained by the number of business days in each year or quarter. In computing the "average number of persons employed," fraction of numbers shall be excluded and such computation shall be made on a yearly or quarterly basis at the option of the licensee.

B.

"Building contractor" whenever appearing in this chapter means any person, firm or corporation who engages with the owner or lessee of any lot or parcel of land or building, for the erection, construction, alteration or repair of any building or structure in the city, whether the same be by contract at a fixed price, or upon the cost of material and labor basis, or upon the cost of construction plus a percentage thereof basis.

C.

"Business" whenever appearing in this chapter means and includes all and every kind of lawful business, trade, calling, profession or occupation.

D.

"Electrician" whenever appearing in this chapter means any person, firm or corporation who engages with the owner or lessee of any lot or parcel of land or building, or any contractor, for the installation of electrical wiring or appliances, in any building or structure in the city, for hire.

E.

"Itinerant vendor" whenever appearing in this chapter means any person who engages in a temporary or transient business in the city, selling goods, wares, merchandise or any other thing of value, with the intention of conducting such business in the city for a period of not more than ninety days, and who, for the purpose of carrying on such business, hires, leases or occupies any room, doorway, vacant lot, building or other place for the exhibition or sale of goods, wares, merchandise or other thing of value. If the place in which a business is conducted is rented or leased for a period of ninety days or less, such fact shall be presumptive evidence that the business carried on therein is a transient business.

F.

"Mobile vendor" means any person who owns or operates a motor vehicle, cart, wagon, truck, or other mobile equipment used for the display, sale, barter, or exchange of food, produce, beverages or edible items, including, but not limited to, bakery goods, vegetables, fruit, ice cream, hot food, and prepared meals.

G.

"Peddler" whenever appearing in this chapter, means any person who goes from house to house, place to place, or in or along the streets, within the city selling and making immediate delivery or offering for sale and immediate delivery, any goods, wares, merchandise, or anything of value, other than food, food products, or other edible items, to persons other than manufacturers, wholesalers, jobbers, or retailers in such commodities.

H.

"Person" whenever appearing in this chapter means and includes a natural person, firm, co-partnership, corporation or other association.

I.

"Plumber" whenever appearing in this chapter means any person, firm or corporation who engages with the owner of any lot or parcel of land or building, or any contractor, for the installation of plumbing or gas fitting, or sewer work, in or on any building or structure in the city for compensation or hire.

J.

"Sewer contractor" whenever appearing in this chapter means any person, firm or corporation who engages with any owner or lessee of any lot or parcel of land or building, or any contractor, for the installation or putting in or connecting up of sewers to such house or on such lot or parcel of land.

K.

"Solicitor" whenever appearing in this chapter means any person who engages in the business of going from house to house, place to place, or in or along the streets, within the city, selling or taking orders for goods, wares, merchandise, or other thing of value for future delivery, or for services to be performed in the future.

L.

"Dance hall" whenever appearing in this chapter shall mean any location, establishment or premises which permits or allows patrons or other persons to dance, whether or not music is provided, and whether or not said establishment or premises carries or bears the title of "Dance Hall" on its advertising, signage or logo.

(Ord. 88-10 §§4, 5, 1988; Ord. 87-3 §3, 1987; Ord. 80-03 §1, 1980; Ord. 79-02 §2, 1979; Ord. 12-NS §1, 1937).

A.

It is unlawful for any person, whether as principal or agent, clerk or employee, either for himself or for any other person, or for any body, corporation, or otherwise, to commence or carry on any kind of lawful business, trade, calling, profession or occupation in the city without having first procured a license from the city so to do, or without complying with any and all regulations of such trade, calling, profession or occupation contained in this chapter.

B.

The carrying on of any business, trade, calling, profession or occupation as aforesaid, without first having procured a license from the city so to do, or without complying with any and all regulations of such business, trade, calling, profession or occupation contained in this chapter, shall be deemed a separate violation of this chapter for each and every day that such business, trade, calling, profession or occupation is carried on.

C.

A separate license must be obtained for each branch, establishment or separate place of business in which the business is carried on.

D.

A separate license must be obtained for each kind or class of business carried on at one location, provided, however, that any one person carrying on more than one business at one location, shall pay one license fee, which shall be the full license of whichever business calls for the highest license fee.

(Ord. 12-NS §2, 1937).

It shall be the duty of the city clerk to issue a license under this chapter for every person liable to pay a license hereunder, and to state in each license 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 the same is to be carried on. The city clerk shall deliver all such licenses to the chief of police or to such other officer or employee of the city as the city council may from time to time designate by ordinance or resolution to have charge of the collection of license taxes.

(Ord. 12-NS §3, 1937).

No license granted or issued under any provision of this chapter shall be in any manner transferred or assigned, or authorize any person other than is therein mentioned or named to carry on the licensed business.

(Ord. 12-NS §4, 1937).

Every person having a license under the provisions of this chapter for carrying on a business at a fixed place of business, shall keep such license posted for exhibition while in force in some conspic- uous part of the place of business. Every person having such a license, and not having a fixed place of business shall carry such license with him at all times while carrying on the business for which the same was granted. Every person having a license shall produce and exhibit the same when applying for a renewal thereof, and whenever requested to do so by any police officer, or by any officer authorized to issue, inspect or collect licenses.

(Ord. 12-NS §5, 1937).

The amount of any license fee imposed by this chapter shall be deemed a debt to the city and any person carrying on any lawful business in the city, without having a license from the city so to do, shall be subject to an action in the name of the city in any court of competent jurisdiction for the collection of the amount of license fee by this chapter imposed on such business.

(Ord. 12-NS §6, 1937).

The conviction and punishment of any person for transacting any business without a license shall not excuse or exempt such person from the payment of such license fee due or unpaid at the time of such conviction, and nothing herein shall prevent a criminal prosecution for any violation of the provisions of this chapter.

(Ord. 12-NS §7, 1937).

A.

All license fees shall be paid in advance in lawful money of the United States at the office of the chief of police in the city or at such other place as the city council may subsequently designate by resolution or ordinance.

B.

Annual Licenses. The annual license fees in this chapter provided shall be due and payable to the city on the first day of January of each year. Any person doing business for less than the full year and for which business an annual license fee is herein provided, shall be required to pay the full annual rate.

C.

Quarterly Licenses. The quarterly licenses in this chapter provided shall be due and payable to the city on the first days of January, April, July and October of each year. Any person doing business for only a portion of a quarterly period shall be required to pay the full quarterly rate.

D.

Daily Licenses. The daily licenses in this chapter provided shall be due and payable to the city each day in advance.

E.

Penalty. If any such annual or quarterly license shall remain unpaid at the end of the calendar month in which it becomes due and payable, a penalty of five percent shall be added to the same and collected by the officer or employee of the city having charge of the collection of licenses.

(Ord. 12-NS §8, 1937).

A.

The provisions of this chapter shall not be deemed or construed to require the payment of a license to conduct, manage, or carry on any business, occupation, or activity, or require the payment of any license from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly by any individual, firm, or corporation, nor shall any license be required for the conducting of any entertainment, dance, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects, whenever the receipts from the same are to be appropriated to any church or school or to any religious or benevolent purpose within the city; nor shall any license be required for the conducting of any entertainment, dance, concert, exhibition or lecture whenever the receipts from the same are to be appropriated for the purpose and objects for which such association or organization was formed, and from which profit is not derived, either directly or indirectly, by any individual, firm or corporation; provided however, that nothing in this section contained shall be deemed to exempt any such institution or organization from complying with the provisions of this chapter requiring such institution or organization to obtain a permit from the city council or proper officer to conduct, manage, or carry on any profession, trade, calling or occupation.

B.

Interstate Commerce. Every peddler, solicitor, or other person claiming to be entitled to exemption from payment of any license provided for in this chapter upon grounds that such license casts a burden upon his right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States Congress respecting interstate commerce, shall file a verified statement with the officer or employee of the city having charge of the collection of licenses, disclosing the interstate or other character of his business entitling such exemption. Such statement shall state the name and location of the company or firm for which the orders are to be solicited or secured, the name of the nearest local or state manager, if any, and his address, the kind of goods, wares or merchandise to be delivered, the place from which the same are to be shipped or forwarded, the method of solicitation or taking orders, the location of any warehouse, factory or plant within the state of California, the method of delivery, the name and location of the residence of the applicant, and any other facts necessary to establish such claim or exemption. A copy of the order blank, contract form, or other papers used by such person in taking orders shall be attached to the affidavit. If it appears that the applicant is entitled to such exemption, such applicant shall forthwith be issued a free license.

C.

Disabled Veterans. Disabled war veterans shall not be charged a license tax for peddling or soliciting, provided said persons shall first exhibit to the license collector satisfactory evidence of honorable discharge from United States service and of service-connected disability.

D.

Farmers and Poultrymen. The provisions of this chapter shall not be deemed to include or apply to farmers, poultrymen or horticulturalists who may sell exclusively their own produce. This exemption shall not apply to nurseries or other commercial establishments which buy goods for resale as well as selling their own goods.

E.

Council Discretion. In all cases of doubt as to any applicant being entitled to any exemption from license tax, or from the application of any of the provisions of this chapter, the burden of establishing the right to exemption shall be upon the applicant. All applications for exemption in such cases shall be referred to the city council, which shall consider and act upon the same and grant or refuse such exemptions as in the use of its discretion it shall deem just.

(Ord. 12-NS §9, 1937).

The chief of police and all police officers of the city shall have and exercise the power to make arrests for the violation of any of the provisions of this chapter and to enter, free of charge, at any time, any place of business for which a license is required by this chapter and to demand the exhibition of such license for the current term by any person engaged or employed in the transaction of such business; and if such person shall then and there fail to exhibit such license, such person shall be liable to the penalty provided for a violation of the chapter.

(Ord. 12-NS §10, 1937).

The rates of license fees for the businesses hereinafter named shall be and the same are hereby fixed and established according to the following schedule and the same shall be paid by all persons engaged in such business, as follows, to wit:

QUARTERLY DAILY

A. Building contractor $25.00 plus $1.00 for every $1,000.00 or fraction thereof of business over and above $5,000.00 per quarter

B. Electrician $25.00 plus $1.00 for every $1,000.00 or fraction thereof of business over and above $5,000.00 per quarter

C. Plumber $25.00 plus $1.00 for every $1,000.00 or fraction thereof of business over and above $5,000.00 per quarter

D. Sewer contractor $25.00 plus $1.00 for every $1,000.00 or fraction thereof of business over and above $5,000.00 per quarter

E. Any business not herein specifically $25.00 plus $1.00 for every $1,000.00 or enumerated and for which the city has a legal fraction thereof of business over and above right to impose a license fee $5,000.00 per quarter

F. Circus $25.00

G. Sideshow 10.00

H. Practicing or professing to practice the 100.00 business or art of astrology, palmistry, phrenology, card reading, fortunetelling, cartomancy, clairvoyance, crystal gazing, hypnotism, mediumship, prophecy, augury, divination, magic or necromancy, or who receives a gift or fee for such practice or where admission is charged

I. Business of dealing in medicines other than 100.00 regularly established drugstore, or peddling the same, or treating diseases of the human body, or calling attention to wares or method of treatment, or advertising the same by use of music, entertainment, speech or other device

J. Persons, outside of those conducting $50.00 regular places of business, selling different

articles of apparel, dry goods, fancy goods, notions, jewelry, cutlery, groceries, harness, pianos, organs, machinery of all kinds, vehicles, hardware, tinware, mill products, or merchandise of any class or character, to persons not regularly engaged in, or carrying on, such lines of business, whether by sample or otherwise

K. The business of running, driving, or operating any automobile, automobile truck, or automobile tank wagon, or any vehicle used for the transportation, selling, collection or delivery of goods, wares, merchandise or other personal property of any kind from a vehicle, either as his or its principal business, or in connection with any other business, or of soliciting for work, labor or services to be performed upon the public street, in or from a vehicle, or to be performed on goods, wares, merchandise, or other personal property to be taken for such purpose to a plant or establishment inside or outside the city limits, but not including "mobile vendors" as herein defined, an annual license fee of forty dollars per vehicle so used in said business in the city.

The provisions of this section are not to be construed as imposing a tax upon vehicles, but as a method of classification of businesses and distinguishing between those maintaining a fixed place of business in the conduct of which vehicles are used and those maintaining a business in the conduct of which vehicles are used but who do not have a fixed place of business in the city.

The city clerk shall issue numbered licenses to a each licensee, said license shall be placed conspicuously on each said vehicle. It is unlawful to place any such license on a vehicle not used by the licensee in such business, or to drive or operate a vehicle upon which a license is placed in violation of this provision, or to drive or operate a vehicle engaged in any such business upon which no license is placed.

L. Manufacturing: Every person conducting, managing or carrying on the business of steel fabrication, foundry, forging or the business of manufacturing, compounding, or preparing for sale, any article, substance or commodity not otherwise specifically licensed by any other provisions of this chapter, shall pay an annual license fee of one hundred fifty dollars plus an additional annual license fee based upon the average number of persons employed in such business according to the following schedule:

For each of the first ten employees ..... $ 3.00 per annum

For each employee over ten ..... 1.00 per annum

M. Labor camps Permanent camp ..... $75.00 annually

Transient camp ..... $25.00 per quarter

N. Apartment houses

For three or more apartment units ..... $25.00

For each unit over three ..... $ 5.00

Maximum license fee shall be ..... $75.00

O. Any business classified as a "mobile vendor" pursuant to Section 5.04.010F shall be subject to the provisions of Chapter 5.07 of this code and shall pay a business license fee at the rate of one hundred sixty dollars per year, or forty dollars per quarter at the option of the licensee.

(Ord. 88-10 §§3, 8, 1988; Ord. 80-03 §2, 1980; Ord. 79-03 §1, 1979; Ord. 79-02 §1, 1979; Ord. 78-11 §4, 1978; Ord. 77-06 §1, 1977: Ord. 16-NS §1, 1937; Ord. 12-NS §12, 1937).

The maximum annual business license fee due the city under any classification listed in Section 5.04.110 shall not exceed three hundred dollars.

(Ord. 86-8, 1986).

No business license shall be issued for any circus, sideshow, dance hall, skating rink or similar activity conducted or carried out in a commercial zone district, and no such event, activity or business shall be conducted or operated within the city, until after a permit has first been obtained from the city council in accordance with the provisions of this chapter. Notwithstanding any other provision of this code, no permit shall be issued which permits dancing, the conduct of a dance hall or a public dance in any establishment or any premises located in a commercial zone district which has been licensed by the California Department of Alcoholic Beverage Control or which otherwise provides for the sale or service of alcoholic beverages.

(Ord. 87—3 §2, 1987: Ord. 82—12 §2(part), 1982: Ord. 80—03 §3, 1980: Ord. l2—NS §13, 1937).

Applications for permits under Section 5.04.120 shall be in writing and submitted to the city clerk with all fees required as established from time to time by city council resolution. Sufficient copies shall be provided for transmitting to the police, finance and planning departments of the city of their use and investigation. Said staff shall investigate the application and report to the city council their findings and recommendations.

The application and staff reports shall then be scheduled for city council action and notice given the applicant and other parties, requesting notice of any hearing on the permits.

The city council, after public hearing, shall issue or deny any application based upon the information provided and may impose conditions on any permit issued for the general health, safety and welfare of the public.

(Ord. 89-02 §6, 1989; Ord. 82—12 §2(part), 1982).

Any permit issued under the preceding section may be revoked by the city council when it is determined that the permittee has violated the conditions imposed upon said permit or other provisions of this code and other laws for the general health, safety and welfare of the public.

Written notice of any revocation hearing shall be given to applicant and others requesting notice ten days prior to such hearing.

(Ord. 82-12 §2(part), 1982).

Any person convicted of violating any of the provisions of this chapter shall be guilty of an infraction, and shall be punishable as set forth in Section 1.16.010 of this code.

(Ord. 02-02 §4, 2002: Ord. l2—NS §11, 1937).