Portola Municipal Code Art. I In General

Unless otherwise intended, these terms shall have the following meanings when used in this title:

"Advertising by vehicle" means the business of operating upon the streets, any wheeled vehicle equipped with music or a musical device, loudspeaker or other device for attracting attention, or operating upon the streets any wheeled vehicle for advertising purposes and to which wheeled vehicle there are attached signs, placards, billboards or other advertising matter. This does not include signage placed on vehicles for identification purposes.

"Affiliate" means a person who is an independent contractor to another person who holds a valid and current business license in the city, but who performs services similar to that of an employee. Examples include real estate agents who work under a broker with a valid business license, a hair stylist/nail tech working under a salon with a business license and a flooring installer working under a licensed business.

"Agriculture" shall include, without limitation: General produce farming, growing of nursery products, growing of any products commonly associated with farming activities, growing of any product to be sold at either wholesale or retail or both, dairying, animal or poultry husbandry, breeding of any animal or fowl, any and all "business" (as defined herein) dealing with the growing of foodstuffs or products and sale of agricultural products at wholesale.

"Business" means professions, trades, lessors, occupations and all and every kind of calling carried on for profit or livelihood where the gross receipts are, or are reasonably anticipated to be, two thousand dollars or more per calendar year.

"Business by vehicle" means the business of running, driving or operating any automobile, automobile truck, automobile tank wagon or any vehicle used for transportation, selling, collection or delivery of goods, wares, merchandise or other personal property of any kind from a vehicle, either as a principal business, or in connection with any other business, or of soliciting for work, labor or services to be performed upon the public streets in or from a vehicle, or to be performed on goods, wares or other personal property to be taken for such purpose to a plant or establishment inside or outside of the city limits. The term shall not be deemed to apply to the delivery of goods, wares or merchandise purchased by retail merchants in the city at wholesale prices and delivered to the merchants in the city for resale by them for use or consumption by the public off the premises, nor to persons operating such vehicles together and in conjunction with a fixed place of business within the city for which business a license fee is paid under this chapter. The provisions of this chapter are not to be construed as imposing a tax upon vehicles, but as a method of classification of businesses and distribution between those maintaining a fixed place of business in the conduct of which vehicles are used and those maintaining a business in which vehicles are used, but do not have a fixed place of business in the city.

"Collector" means the city's code enforcement officers, including the community service officers, and the city clerk as authorized by the city council.

"Employed" means engaged or employed as an employee in a business that is subject to regulation under this chapter.

"Employees" means all persons engaged in the operation or conduct of any business, whether as owner, a member of the owner's family, partner, agent, manager, peddler, solicitor or salesman and any and all persons employed in such business.

"Engaged in business" means the conducting, managing or carrying on of any profession, trade, calling, occupation or commercial enterprise in the city that requires a license under this chapter as owner, officer, agent, manager, employee, servant or lessee of any of them, whether operating from a fixed location in the city or coming into the city from an outside location to engage in said activities.

"Gross receipts" means the gross receipts of the preceding calendar year or part thereof, and is defined as: (a) The total amount actually received or receivable from all sales within the city; (b) the total amount or compensation actually received or receivable for the performance of any act or service of whatever nature within the city that results in a charge or credit, whether such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; and (c) gains realized from trading in stocks or bonds, interest discounts, rents, royalties, fees, commissions, dividends, or other emoluments, however designated. Included in 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 materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:

1. Cash discounts allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price that may later be sold, at which time the sales price shall be included as gross receipts;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

4. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit;

5. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;

6. 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, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustee;

7. As to a retail gasoline dealer, the portion of receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and previously paid under Part 2 of Division 2 of Revenue and Taxation Code of the State of California;

8. As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code if paid by the dealer or collected by him from the customer or purchaser;

9. Cash value of sales, trades or transactions between departments or units of the same business;

10. That portion of the receipts of a general contractor that represents payments to subcontractors; the general contractor shall furnish the collector with the names and addresses of the subcontractor(s);

11. As to a real estate sales; a broker or office shall exclude the portion commissions or other income that is provided to an agent who holds a business license within the city of Portola;

12. Franchise holders, except for the portion of income derived from any source(s) not covered in the franchise agreement with the city.

"Licensee" means any persons to whom a license has been issued under this chapter.

"Manufacture" or "process" shall embrace all processing, assembling and packaging of products from previously prepared materials or from raw materials.

"Peddler" means any person who goes upon any private property in the city without prior invitation by the occupant thereof, carrying or transporting goods, wares, magazines, merchandise or personal property of any nature and offering the same for sale. This definition also includes any person who first solicits orders and then makes subsequent deliveries to the solicited purchasers as a separate transaction in an effort to evade the provisions of this article. Expressly excluded from this definition are persons under the age of eighteen years who are selling goods for noncommercial purposes.

"Person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit, foreign or domestic.

"Rental units" means rooms in a roominghouse or boardinghouse, rooms in a motel or hotel, units in an apartment building, units in a bungalow court or duplex, spaces in a mobile home or travel trailer park, single-family dwellings, commercial units, and floor space in commercial buildings.

"Residential" means any house, duplex, apartment, motel, hotel, inn, lodge, rooming house or trailer park.

"Retail sales" means all sales to the ultimate consumer or end user.

"Solicitor" means any person who goes upon any private property in the city, without prior invitation by the occupant thereof, for the purpose of directly contacting the occupant to take or attempt to take orders for the sale of goods, merchandise, wares, magazines or other personal property of any nature for future delivery or for services to be performed in the future. This definition also includes any person who, without invitation, goes upon private property, to request contribution of funds or anything of value, or sell goods or services for, charitable, religious or other noncommercial purposes.

"Transient business" means every business not conducted as a "fixed place of business" or at a regular place of business, whether the person conducting such transient business is or is not a resident of this city.

"Wholesale business" means every business conducted solely for the purpose of selling or manufacturing goods, wares or merchandise in large quantities for resale.

(Ord. No. 330, 8-12-2009)

It is unlawful for any person to be engaged in business in the city without a valid license from the city to do so, in compliance with the regulations in this chapter pertaining to the business, unless the person is exempt under the provisions of this chapter and can furnish proof of their exemption. No person who is an employee, or the direct representative of a licensee, shall be required to pay a license fee for doing any part of the work of the licensee.

(Ord. No. 330, 8-12-2009)

Separate licenses must be obtained for each branch, establishment or separate place of business where the business is conducted. Separate licenses must be obtained for each kind or class of business conducted at each location.

(Ord. No. 330, 8-12-2009)

The issuance of a license under this Code or any other ordinance shall not entitle the licensee to engage in any business that in any way violates any law, regulation, code or other ordinance.

(Ord. No. 330, 8-12-2009)

A. Every person required to have a license under the provisions of this chapter shall make application for the license to the city clerk, and upon the payment of the prescribed fee, the city clerk shall issue to the person a license that contains:

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

2. The business licensed;

3. The place where the business is to be transacted and conducted;

4. The expiration date of the license; and

5. Such other information as may be necessary for the enforcement of the provisions of this chapter.

6. If the business is including affiliates that work under the licensed business on the business license a list of these affiliates must be provided with the application.

B. The city clerk must affix the official seal to, and imprint the clerk or deputy clerk's signature on all licenses.

C. If any person claims exemption from obtaining a license because the gross receipts are less than two thousand dollars per calendar year, written proof must be provided to the city clerk in the form of valid tax returns, audited financial records or equivalent documentation.

(Ord. No. 330, 8-12-2009)

No license issued under the provisions of this chapter shall be transferred or assigned, nor shall any license be construed as authorizing any person other than the licensee, to engage in the licensed business.

(Ord. No. 330, 8-12-2009)

The city clerk shall maintain adequate records of all matters pertaining to the licenses mentioned in this chapter.

(Ord. No. 330, 8-12-2009)

A. Every person having a license under the provisions of this chapter for engaging in business at a fixed place of business shall keep the license posted for exhibition in some conspicuous location in the place of business. Every person having such a license, and not having a fixed place of business, shall carry the license at all times while carrying on the licensed business. Every person having a license shall produce and exhibit the license when applying for a renewal, and whenever requested to do so by any person authorized to issue or inspect licenses or collect license fees.

B. A duplicate license may be issued by the city clerk to replace any license previously issued that has been lost or destroyed. For the issuance of each duplicate license, a fee shall be collected to help defray the processing costs. The amount of the fee shall be established from time to time by resolution of the city council.

(Ord. No. 330, 8-12-2009)

The conviction and punishment of any person having engaged in business without a license shall not excuse or exempt the person from the payment of any license fee due or unpaid at the time of conviction, and nothing in this chapter shall prevent civil action to collect unpaid license fees.

(Ord. No. 330, 8-12-2009)

A. Annual license fees are due and payable on or before the date the business commences, and shall be renewed annually on the anniversary of the effective date of the initial license.

B. Daily license fees for itinerant businesses are due and payable to the city each day in advance.

C. The failure of a licensee to receive a notice of renewal shall not eliminate the requirement of the licensee to obtain a valid business license pursuant to this chapter.

(Ord. No. 330, 8-12-2009)

Whenever a business license holder or prospective applicant fails to make the payment required by the provisions of this chapter, the city clerk shall take steps to collect such delinquent accounts.

(Ord. No. 330, 8-12-2009)

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

(Ord. No. 330, 8-12-2009)

When a person, by the use of any sign, circular, handbill, card, telephone book, newspaper, mailbox, advertisement or address, represents that s/he is transacting and carrying on a business activity in the city; or when a person holds a valid license or permit issued by a government agency indicating that s/he is doing business in the city, that person shall be deemed to be transacting and carrying on a business activity in the city. These factors shall be considered prima facie evidence that said person is transacting and carrying on business in the city, unless valid evidence is presented to the contrary and found satisfactory to the city clerk or designee.

(Ord. No. 330, 8-12-2009)

Every person whose business is located outside the city limits, but nevertheless is engaged in or carrying on any business within the city, shall be subject to the business license and fee requirements, unless otherwise exempt.

(Ord. No. 330, 8-12-2009)

A. The city code enforcement officers, including the community service officers, shall have and exercise the power to issue citations for the violation of any of the provisions of this chapter and to enter upon business premises, free of charge, at any time a license is required by this chapter and to demand the exhibition of the license for the current term by any person engaged or employed in the transaction of such businesses. If the person fails then and there to exhibit the license, the person shall be liable for the penalties provided for as a violation of this chapter.

B. In addition to the authority otherwise granted in this Code, the collector or code enforcement officers may, in the event a licensee fails to report to the city its gross receipts, demand an audit of any such licensee, and/or require copies of any state sales, use tax returns, or any other tax statements filed with any government entity by the licensee. Said enforcement officers shall also have and exercise the power to verify the gross receipts through inspection of any business records to ensure compliance with this Code.

(Ord. No. 330, 8-12-2009)

A. Any person engaged in a business, trade, profession, calling or occupation in the city without first obtaining the required business license pursuant to this chapter shall be subject to a penalty of two times the amount of the business license fee due. Each new business shall be allowed a grace period not exceeding sixty days to obtain the required business license.

B. If any annual or quarterly license fee remains unpaid at the end of the calendar month in which it becomes due and payable, a penalty of ten percent per month shall be added to the license fee for each month that it remains unpaid, not exceeding in the aggregate a total penalty of fifty percent of the amount of the license fee. Any penalty so imposed shall be collected by the license fee collector.

(Ord. No. 330, 8-12-2009)

Any violations of any of the provisions herein shall constitute infractions.

(Ord. No. 330, 8-12-2009)