Pomona Municipal Code § 50-339 Filing of statement of gross receipts with application for renewal of…

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Business includes professions, trades, occupations and all and every kind of callings, whether or not carried on for profit.

Employee means any person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, agent, manager, solicitor and any or all other persons employed or working in such business.

Gross receipts includes the total amount of the sale price of all sales and the total amount charged or received for the performance of any act or service of whatever nature it may be, for which a charge is made or credit is 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. Included in the term "gross receipts" shall be 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 the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from the term "gross receipts" shall be cash discounts allowed and taken on sales, state and city sales tax and federal retail excise tax, 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, 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, that portion of the receipts of a general contractor which represent payments to subcontractors, provided that such subcontractors are licensed under this article and provided the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each subcontractor.

Person includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies and individuals transacting and carrying on any business in the city other than as an employee.

(Code 1959, § 14-1; Ord. No. 1836, § 1; Ord. No. 3357, § 1; Ord. No. 3893, § 1; Ord. No. 4049, § 12, 11-21-2005; Ord. No. 4102, § 2, 5-5-2008; Ord. No. 4103, § 2, 5-27-2008)

Cross reference— Definitions generally, § 1-2.

This article is enacted solely to raise revenue for municipal purposes and is not intended for regulation.

(Code 1959, § 14-2; Ord. No. 1836, § 1)

(a) It shall be the duty of the business license division and it is hereby directed to enforce each and all of the sections of this article. The chief of police shall render such assistance in the enforcement of this article as may from time to time be required by the business license division or the city council.

(b) The business license division, in the exercise of the duties imposed under this article and acting through deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the city to ascertain whether this article has been complied with.

(c) The business license division, each and all assistants and any police officer shall have the power and authority to enter, free of charge at any reasonable time, any place of business required to be licensed in this article and demand an exhibition of its license certificate. Any person having such license certificate issued in his possession or under his control who wilfully fails to exhibit the license certificate on demand shall be guilty of a misdemeanor and subject to the penalties provided by this article. It shall be the duty of the business license division to cause a complaint to be filed against any and all persons found to be violating this article.

(Code 1959, § 14-3; Ord. No. 1836, § 1; Ord. No. 3357, § 16; Ord. No. 3893, § 2)

(a) There are imposed upon the businesses, trades, professions, callings and occupations specified in this article license taxes in the amounts prescribed.

(b) 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.

(c) Persons not required to obtain a license prior to doing business within the city because of conflict with applicable statutes of the United States or of the state shall not be liable for payment of the tax imposed by this article.

(d) Persons not required to obtain a license prior to doing business within the city shall include nonrecurring entertainers hired by the city or one of its agencies.

(Code 1959, § 14-12; Ord. No. 1836, § 1; Ord. No. 4146, § 1, 7-11-2011)

A separate license must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license, provided that warehouses and distributing plants used in connection with and incidental to a business licensed under this article shall not be deemed to be separate places of business or branch establishments.

(Code 1959, § 14-7; Ord. No. 1836, § 1)

No person, whether as principal or agent, clerk or employee, either for himself or for any other person or otherwise, shall conduct or carry on any business in the city without first having obtained a license therefor from the city and without complying with any and all applicable sections of this article. Each day that such business is so carried on constitutes a separate violation of this article. Any such person violating or causing the violation of any of the sections of this article shall be guilty of an infraction.

(Code 1959, § 14-22.1; Ord. No. 3031, § 2; Ord. No. 3196, § 1)

(a) Every person required to have a license under this article shall make an application for the license to the business license division. Upon the payment of the prescribed license tax, the business license division shall issue to such person a license, if the business is not unlawful and is conducted in conformity to the zoning code. The license application shall contain the following:

(1) The name of the person to whom the license is issued;

(2) The business licensed;

(3) The place where such business is to be transacted and carried on;

(4) The date of the expiration of such license; and

(5) Such other information as may be necessary for the enforcement of this article.

(b) At the time of filing an application for issuance of a business license, the applicant shall have a current certificate of occupancy.

(c) Every person required to have a license under this article shall pay the license fee at the time of the filing of the application with the business license division.

(d) At the time of filing an application for issuance of a business license, every person or business subject to national pollutant discharge elimination system (NPDES) permit inspections, pursuant to the California NPDES permit and section 18-527 of this Code, shall also pay the NPDES program inspection fee established by resolution of the city council.

(e) At the time of filing an application for issuance of a business license, every person or business subject to an annual inspection of grease producing facilities, as required by State Water Resource Board Regulations and sections 62-478 and 62-479 of this Code, shall also pay the annual inspection fee established by resolution of the city council.

(Code 1959, § 14-5; Ord. No. 1836, § 1; Ord. No. 3357, § 16; Ord. No. 3384, § 1; Ord. No. 3893, § 3; Ord. No. 4233, § 1, 6-5-2017; Ord. No. 4258, § 3, 9-9-2019; Ord. No. 4338, § 2, 11-6-2023; Ord. No. 4341, § 2, 11-20-2023)

If the amount of the license tax to be paid by the applicant is measured by gross receipts, he shall pay the minimum annual license fee for a license as set forth in section 50-411, which will expire not more than nine months commencing with the quarter in which the business begins from the date of issuance on either March 31, June 30, September 30, or December 31. Within 30 days after the expiration date, the person so licensed shall report on a form, provided by the business license division, the gross receipts of the business for the period covered by the license. The business license division shall determine from this information the additional fee required for the remaining three-month or six-month period, whichever completes the yearly term of the license, by estimating the gross receipts on an annual basis and prorating the fee for that portion of the year the business will have been in operation at the end of the next three-month or six-month period, which shall either be March 31, June 30, September 30, or December 31. The applicant will be given credit for his initial minimum fee. If the business license division determines that the gross receipts so estimated will be less than the minimum gross receipts set forth in section 50-411, it shall extend the license fee for the next three-month or six-month period without payment of any additional fee. The business license division shall not issue to any such person another license of the same or any other business, until such person shall have filed the written statement as required by this section.

(Code 1959, § 14-16; Ord. No. 1836, § 1; Ord. No. 3357, § 3; Ord. No. 3363, § 1; Ord. No. 3607, § 1; Ord. No. 3893, § 7)

(a) When the license fee is based on gross receipts, the applicant for the renewal of a license shall submit to the business license division, for its guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement upon a form to be provided by the business license division, written under penalty of perjury or sworn to before a person authorized to administer oaths.

(b) This section requiring sworn, written statements or statements under penalty of perjury shall not only apply to business licenses, but shall also apply to taxes collected by the city as its own tax collecting agent, based upon gross receipts; however, if a tax other than a business license tax is involved, such written statement shall be presented by the person required to pay such tax to the business license division at the time prescribed for the required payment of such tax.

(Code 1959, § 14-17; Ord. No. 1836, § 1; Ord. No. 2105, § 1; Ord. No. 3357, § 4; Ord. No. 3363, § 2; Ord. No. 3893, § 8)

(a) No statement of gross receipts shall be conclusive as to the matters set forth therein nor shall the filing of the statement of gross receipts preclude the city from collecting by appropriate action such sum as is actually due and payable under this article. Such statement and each of the several items therein contained shall be subject to audit and verification by the city treasurer, his deputies or authorized employees of the city who are hereby authorized to examine, audit and inspect such books and records of any licensee or applicant for license, as may be necessary in his judgment to verify or ascertain the amount of license fee due.

(b) All licenses, applicants for licenses and persons engaged in business in the city are hereby required to permit an examination of such books and records for the purpose stated in subsection (a) of this section. Any failure or refusal to permit such an examination by a licensee shall constitute good cause under section 50-381 for the suspension, cancellation or revocation of the license issued under this article, which penalty shall be cumulative and in addition to any other penalty or remedy provided for by law, whether criminal or civil in nature.

(Code 1959, § 14-18; Ord. No. 1836, § 1; Ord. No. 3357, § 5)

(a) If any person fails to file any required statement of gross receipts within the time prescribed or if, after demand therefor made by the business license division, he fails to file a corrected statement, the business license division may determine the amount of license tax due from such person by means of such information as it may be able to obtain.

(b) If such a determination is made, the business license division shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States post office in the city, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within 15 days after the mailing or serving of such notice, make application in writing to the business license division for a hearing on the amount of the license tax. If such application for a hearing is made, the business license division shall cause the matter to be set for a hearing within 15 days before a hearing officer approved by the city manager. The business license division shall give at least ten days' notice to such person of the time and place of the hearing in the manner prescribed for serving notices of assessment. The hearing officer shall consider all evidence produced and shall make findings thereon which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed for serving notices of assessments. If the person does not request a hearing upon the assessment within the prescribed time, the amount of the assessment shall be final, and the amount thereof shall be immediately due and owing to the city. The administrative proceedings prescribed by this section shall be deemed exhausted. Failure to pay the tax prescribed shall constitute an assessment against such business property and shall be a lien on the property or the city shall have the right to bring an action in any court of competent jurisdiction to collect the amount due. In each case the city shall assess an administrative fee set by resolution of the city council to cover any costs incurred.

(Code 1959, § 14-19; Ord. No. 1836, § 1; Ord. No. 3357, § 6; Ord. No. 3893, § 9)

Nothing in this article shall be deemed or construed to apply to 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 prescribed in this article.

(Code 1959, § 14-13; Ord. No. 1836, § 1)

(a) None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce. When a license tax is believed by a licensee or an applicant for a license to place an undue burden upon such commerce, he may apply to the business license division for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by affidavit and supporting testimony, show his method of business and the gross volume or estimated gross volume of business and such other information as the business license division may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The business license division 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 business license division shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will ensure 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 this article. Should the business license division determine the gross receipts measure of the license tax to be the proper basis, it may require the applicant to submit, either at the time of termination of the applicant's business in the city or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor, 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 this article.

(b) Any person claiming an exemption pursuant to this section shall file a verified statement with the city treasurer stating the facts upon which exemption is claimed.

(c) The business license division shall, upon a proper showing contained in the verified statement, issue a license to such person claiming exemption under this section without payment to the city of the license tax required by this article.

(d) The business license division, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to this section upon information that the licensee is not entitled to the exemption as provided in this section.

(Code 1959, § 14-14; Ord. No. 1836, § 1; Ord. No. 3357, § 16; Ord. No. 3893, § 6)

Persons required to pay a license tax for transacting and carrying on any business under this article shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other section of this Code or city ordinance and shall remain subject to the regulatory provisions of other sections of this Code or city ordinances.

(Code 1959, § 14-15; Ord. No. 1836, § 1)

(a) Every person required to have a license under this article shall pay the renewal processing fee due at the time of the filing of the renewal with the business license division, of which an amount set by resolution of the city council is a nonrefundable renewal processing fee.

(b) Unless otherwise specifically provided for, all licenses issued shall expire on the last day of December, March, June and September of each year, and the license tax shall be due and payable within 31 days after the expiration date for January and October and 30 days after the expiration date for April and June. However, if such 31st or 30th day is a Saturday, Sunday or legal holiday, the tax shall be due and payable prior to 12:00 midnight of the next subsequent working day.

(c) All quarterly licenses are due and payable January 1, April 1, July 1 and October 1 of each year.

(d) All daily licenses are due and payable each day in advance.

(Code 1959, § 14-21; Ord. No. 1836, § 1; Ord. No. 2043, § 3; Ord. No. 3357, § 7; Ord. No. 3893, § 10; Ord. No. 4233, § 2, 6-5-2017)

The business license division shall refuse to approve the issuance of a business license not involving free speech if it finds that:

(1) The business is prohibited by any local or state law, statute, rule or regulation or prohibited in the particular location by any law, statute or rule;

(2) The business has been or is a public nuisance;

(3) The applicant or his employee, agent or manager has knowingly made any false, misleading or fraudulent statement of material fact in the application for a license or in any report or record required to be filed with the business license division;

(4) The applicant is unfit to be trusted with the privileges granted by such license or has a bad moral character or intemperate habits; or

(5) The business, in the judgment of the business license division, will be materially detrimental to public health, morals, safety or general welfare.

(Code 1959, § 14-22.8; Ord. No. 3031, § 2; Ord. No. 3357, § 16; Ord. No. 3893, § 12)

The business license division shall refuse to approve the issuance of a business license for a bookstore, an exhibition, a traveling show, a motion picture theater, adult entertainment, a music venue, a sound or advertising vehicle, a modeling studio, a picture arcade, or an outdoor festival if he finds that:

(1) The building, structure, equipment or location of such business does not comply with or fails to meet all of the health, zoning, fire and safety requirements or standards of all laws of the state, sections of this Code or city ordinances applicable to such business operation; or

(2) The applicant or his employee, agent or manager has knowingly made any false, misleading or fraudulent statement of material fact in the application for a license or in any report or record required to be filed with the business license division.

(Code 1959, § 14-22.8.1; Ord. No. 3893, § 13)

Any person denied a license by the business license division shall be entitled to a hearing thereon before a hearing officer appointed by the city manager upon the filing of a written request therefor with the business license division. The hearing officer shall hold such hearing not later than ten days thereafter, unless an extension of time therefor is requested by the applicant. The hearing shall be conducted in the manner provided in section 50-386.

(Code 1959, § 14-22.9; Ord. No. 3031, § 2; Ord. No. 3357, § 16; Ord. No. 3893, § 14)

No license issued pursuant to this article shall be transferable except when the entire assets of the business have been sold to a new owner or when the business name has been changed or when a business has changed locations. In such case the license may be transferred or amended upon application to the city treasurer by the new owner or licensee requesting the change and upon the payment of a fee set by resolution of the city council. Such fee shall be increased on a yearly basis pursuant to section 50-415. Such transfer shall not apply to businesses whose license fees are based on gross receipts.

(Code 1959, § 14-8; Ord. No. 1836, § 1; Ord. No. 2776, § 8; Ord. No. 3121, § 1; Ord. No. 3357, § 2; amended during 6/88 supplement; amended during 6/89 supplement; amended during 6/90 supplement; amended during 6/91 supplement; amended during 9/92 supplement; amended during 9/93 supplement; amended during 6/94 supplement; amended during 6/95 supplement; amended during 6/96 supplement; amended during 6/97 supplement; amended during 6/98 supplement; amended during 6/99 supplement; amended during 6/00 supplement; amended during 6/01 supplement; amended during 1/07 supplement)

A duplicate license may be issued by the city treasurer to replace any license previously issued which has been lost or destroyed, upon the licensee's filing of a statement of such fact and, at the time of filing such statement, paying to the city treasurer a duplicate license fee set by resolution of the city council.

(Code 1959, § 14-9; Ord. No. 1836, § 1; Ord. No. 2776, § 1; Ord. No. 3357, § 16; amended during 6/91 supplement; Ord. No. 3893, § 4)

All licenses must be kept and posted in the following manner:

(1) Any licensee transacting and carrying on 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.

(2) Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license upon his person at all times while transacting and carrying on such business.

(Code 1959, § 14-10; Ord. No. 1836, § 1)

(a) The business license division shall have the authority, provided good cause is shown, to extend the time for filing any required sworn statement for a new or renewal business license for a period not exceeding 30 days.

(b) Any person who is assessed a penalty pursuant to section 50-353 subdivisions (a) or (c), may seek a waiver of such penalty, provided good cause is shown, by submitting, within 15 days of notification by the business license division, a written request along with a sworn statement of facts to the director of finance.

(1) Pursuant to the provisions of subsection (b), a written request for a waiver of penalties in an amount not exceeding $500.00 shall be determined by the director of finance. The director of finance shall consider the request for a waiver of such penalties only if all completed application forms and payment of all business license taxes through the current licensing term have been submitted to the city. Any decision rendered by the director of finance shall be final.

(2) Pursuant to the provisions of subsection (b), a written request for a waiver of penalties in an amount of $500.00 or more shall be determined by the city council. The city council shall consider the request for a waiver of such penalties only if all completed application forms and payment of all business license taxes through the current licensing term have been submitted to the city. Any decision rendered by the city council shall be final.

(Code 1959, § 14-11; Ord. No. 1836, § 1; Ord. No. 3357, § 16; Ord. No. 3504, § 1; Ord. No. 3893, § 5; Ord. No. 4146, § 2, 7-11-2011)

(a) Any person who conducts or carries on any business without first having obtained a license therefor shall pay a penalty of 20 percent of the prescribed license tax, and an additional ten percent penalty shall be added each 30 days thereafter until paid. The maximum penalty shall be 100 percent of the license. The penalty shall be collected in the same manner as other license taxes are collected and payment thereof enforced.

(b) Notwithstanding subsection (a) of this section, the business license division has the authority to compromise any penalties due under subsection (a) of this section for commercial and residential rental business licenses, if the following two conditions are met:

(1) Within 15 days after the date of dispatch of the notice of delinquency of the tax liability from the business license division's office, the taxpayer shall pay to the business license division the full amount of delinquent tax liability.

(2) Within 15 days after the date of receipt, the delinquent taxpayer fully completes a city business license application form and submits the completed application form to the business license division.

(c) Any person who fails to file a declaration of gross receipts report as required by this article shall be subject to a penalty of 20 percent of the balance of tax due, and an additional ten percent penalty shall be added each 30 days thereafter until filed and paid. The maximum penalty shall be 100 percent of the balance of the tax due. The penalty shall be collected in the same manner as other business license taxes are collected and payment thereof enforced.

(Code 1959, § 14-22.2; Ord. No. 3031, § 2; Ord. No. 3222, § 1; Ord. No. 3357, § 8; Ord. No. 3815, § 1)

The issuance of any license shall not authorize the commencing or conducting of any business in the city contrary to the provisions of the zoning ordinance or other sections of this Code.

(Code 1959, § 14-22.3; Ord. No. 3031, § 2)

No license issued under this article shall be construed as authorizing the conduct of or continuance of any illegal or unlawful business or practice.

(Code 1959, § 14-22.4; Ord. No. 3031, § 2)

No license shall be issued for any succeeding license period to any person who, at the time of requesting any new license, is indebted to the city for any unpaid license tax.

(Code 1959, § 14-22.5; Ord. No. 3031, § 2)

(a) The amount of any license tax imposed by this article shall be deemed a debt to the city, and any person carrying on any business mentioned in this article without having a license therefor from the city 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 tax imposed by this article on such business.

(b) The conviction and punishment of any person for carrying on any business without a license shall not excuse or exempt such person from the payment of such license tax due or unpaid at the time of such conviction.

(c) Nothing contained in this section shall prevent a criminal prosecution of any person violating any of the sections of this article; provided, however, that persons holding a license issued by the state to carry on any business shall not be subject to criminal prosecution for failure to pay any license tax required by this article.

(Code 1959, § 14-22.6; Ord. No. 3031, § 2)

In no case shall any mistake made by the business license division in stating the amount of a license tax prevent or prejudice the collection by the city of the amount which shall be actually due from anyone carrying on a business subject to a license under this article.

(Code 1959, § 14-22.7; Ord. No. 3031, § 2; Ord. No. 3357, § 16; Ord. No. 3893, § 11)

The amount of any license tax and penalty imposed by this article shall be deemed a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent license tax and penalties.

(Code 1959, § 14-23; Ord. No. 1836, § 1)