Chapter 110 — BUSINESS LICENSE TAX

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

BUSINESS. Professions, trades, and occupations and all and every kind of calling whether or not carried on for profit.

COLLECTOR. The City Manager, or other city officer charged with the administration of this chapter. PERSONS. All domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts, business or common law trusts, societies, and individuals transacting and carrying on any business in the city, other than as an employee.

SALE. The transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying, or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.

SWORN STATEMENT. An affidavit sworn to before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.

(`67 Code, § 6-1-1)

This chapter is enacted solely to raise revenue for municipal purposes, and is not intended for regulation. (`67 Code, § 6-1-2) (Ord. 74-19, passed 9-9-74)

Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the city, and shall remain subject to the regulatory provisions of other ordinances. No person shall be issued a business license until the Collector is satisfied that the location of the business is in compliance with the zoning chapter of the city code. Further, no license shall be issued to any person for a business for which a health permit is required by law until such permit has been obtained from the Health Officer of the city or the county, as the case may be.

(`67 Code, § 6-1-3) (Ord. 83-4, passed 5-23-83)

(A) It shall be unlawful for any person to commence, establish, maintain or carry on any business enterprise, whatever, in the city:

(1) Without first obtaining a license from the city, whether the business enterprise or the person is subject to a city license tax under this chapter or not, and;

(2) Without fully complying with any and all other regulations of such business contained in this chapter, or other regulatory provisions now existing or hereafter to be adopted by the city.

(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 the state. Persons not so required to obtain a license prior to doing business within the city nevertheless shall be liable for payment of the tax imposed by this chapter.

(`67 Code, § 6-1-4)

A separate license must be obtained for each branch establishment or separate location of the business transacted or carried on, 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 the provisions of this chapter shall not be deemed to be separate places of business or branch establishments, and provided further that any person conducting two or more types of business at the same location, but businesses which use a single set or integrated set of books and records may obtain one license for all businesses at that one location.

(`67 Code, § 6-1-5)

When any person shall by use of signs, circulars, cards, telephone book, or newspapers, advertise, hold out, or represent that he is in business in the city, or when any person holds an active license 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 he is conducting a business in the city. (`67 Code, § 6-1-6)

None of the license taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the state.

(`67 Code, § 6-1-7) (Ord. 74-19, passed 9-9-74)

(A) Nothing in this chapter 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 the state from the payment of such taxes as are herein prescribed.

(B) Any person claiming an exemption pursuant to this section shall file a sworn statement with the Collector stating the facts upon which exemption is claimed, and providing any additional documentation the Collector reasonably deems necessary in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this chapter.

(C) The Collector shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the city of the license tax required by this chapter.

(D) The Collector, after giving notice and a reasonable opportunity for a hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein.

(E) Persons engaged in the rental of real property, provided that the average total monthly gross receipts from all rentals does not exceed $1,000 and that the number of rental units does not exceed ten, shall also be exempt.

(F) Any public utility possessing a franchise granted by the city, and making an annual payment under such franchise, shall not be subject to the provisions of this chapter.

(G) The City Manager may exempt a nonprofit corporation, association, club or society, from the payment of the business license tax fee upon providing documentation of current nonprofit status. The nonprofit must be organized primarily for charitable purposes, including but not limited to veteran affairs, public welfare, and civic betterment.

(H) Independent contractors retained by the city for the express purpose of providing recreational services and programs on behalf of the City Parks and Recreation Department, shall also be exempt. This exemption is limited to independent contractors who are class instructors, carnival operators, circus operators, and other similar event operators that agree to provide a percentage of the revenue generated from the activity to the Parks and Recreation Department.

(I) The business license fees for special and seasonal activities, as listed under § 110.18(B), shall be waived for all nonprofit organizations that provide documentation of current nonprofit status. Vendors, whether for profit or not for profit, operating at City Parks and Recreation Department organized or sponsored events shall be exempt from paying the business license fees.

(J) Every soldier, sailor or marine of the United States who has received an honorable discharge or a release from active duty under honorable conditions from such service, and provides documentation to the Collector to that effect, may hawk, peddle and vend any goods, wares or merchandise owned by him or her, except spirituous, malt, vinous or other intoxicating liquor, without payment of any license, tax or fee whatsoever, and the Collector shall issue to such soldier, sailor or marine, without cost, a license therefor.

(`67 Code, § 6-1-8) (Ord. 81-16, passed 8-24-81; Am. Ord. 2012-001, passed 4-23-12; Am. Ord. 2015-005, passed 3- 10-15)

Every person required to have a license under the provisions of this chapter shall make application as hereinafter prescribed for the same to the Collector of the city, and upon the payment of the prescribed license tax the Collector shall issue to such person a license which shall contain the following information:

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

• (B) The name and description or activity of the business licensed;

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

• (D) The date of the expiration of such license; and

• (E) Such other information as may be necessary for the enforcement of the provisions of this chapter.

• (`67 Code, § 6-1-9) (Ord. 83-4, passed 5-23-83)

(A) First license. Upon a person making application for the first license to be issued hereunder or for a newly established business, such person shall furnish to the Collector a sworn statement, upon a form provided by the Collector; setting forth the following information:

• (1) The exact nature or kind of business for which a license is requested;

• (2) The place where such business is to be carried on, and if the same is not to be carried on at any permanent place of business, the places of residences of the owners of same;

• (3) In the event that application is made for the issuance of a license to a person doing business under a fictitious name, the application shall set forth the names and places of residence of those owning the business;

(4) In the event that the application is made for the issuance of a license to a corporation or a partnership, the application shall set forth the names and places of residences of the officers or partners thereof;

(5) Any further information which the Collector may require to enable him to issue the type of license applied for. (Ord. 74-19, passed 9-9-74)

(B) Denial of application. If the City Manager, upon reading the application shall be of the opinion that the granting of the license would endanger the public health, safety or morals, he may refer such application to the Council, who shall consider the application at its next regular or an earlier called special meeting, and, if the Council, after granting the applicant a hearing, shall by resolution declare that the granting of the application will, in its judgment, endanger the public health, safety or morals, the application may be denied. (`67 Code, § 6-1-10)

Any person aggrieved by any decision of the Collector with respect to the issuance or refusal to issue such license may appeal to the Council by filing a notice of appeal with the Clerk of the Council. The Council shall thereupon fix a time and place for hearing such appeal. The Clerk of the Council shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office at Riverbank, California, postage prepaid, addressed to such person at his last known address. The Council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter. (`67 Code, § 6-1-11)

In addition to all other power conferred upon him, the Collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not exceeding 30 days, and in such case to waive any penalty that would otherwise have accrued. (`67 Code, § 6-1-12)

No license issued pursuant to this chapter shall be transferable, provided that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business is or is to be moved, and provided further that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer, shall not be prohibited by this section. For the purpose of this section stockholders, bondholders, partnerships, or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corporation or other entity. (`67 Code, § 6-1-13)

A duplicate license may be issued by the Collector to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing claim of such fact, and, at the time of filing such statement, paying to the Collector a duplicate license fee of $1.

(`67 Code, § 6-1-14)

(A) Every person having a license under the provisions of this chapter shall place and exhibit such license at all times while in force in some conspicuous place in his or her place of business where patrons of the business may see the same when in the customary place for dealing with the persons carrying on such business.

(B) 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 the business for which it is issued, unless other arrangements are made with the Collector.

(`67 Code, § 6-1-15)

License tax payments are to be paid in advance quarterly, and are due on January 1, April 1, July 1 and October 1. License tax payments may also be made annually. Such annual payments are to be paid in advance and are due on October 1 each year.

(`67 Code, § 6-1-16)

(A) A penalty of 25% of the amount of the license tax shall be imposed and collected in each instance where the license tax is not paid on the thirtieth of the month after the due date.

(B) No license shall be issued, nor one which has been suspended or revoked shall be reinstated or reissued, to any person, who at the time of applying therefor is indebted to the city for any delinquent business license taxes. (`67 Code, § 6-1-17) (Ord. 74-19, passed 9-9-74)

(A) General license fee.

(1) Every person who engages in business within the city or who has a fixed place of business inside the city shall pay a license fee as follows:

Number of Employees Annual Fee Sole proprietor $75 1 - 25 $75 26 - 50 $125 51 - over $200

One time set up charge for new businesses $25 Contractors/Subcontractors $120 or $30 quarterly fee

(2) SB 1186 requires the city to add a separate line item $1.00 fee to business license applications. That fee is hereby added to all business license applications.

• (B) Special and seasonal activities.

• (1) For profit organizations:

Christmas tree sales $50

Fireworks stand $50 per day Carnivals $50 per day Circuses $50 per day Other similar uses $50 per day

(2) For nonprofit organizations. The business license fees for the special and seasonal activities shall be waived for all nonprofit organizations, as indicated under the exemptions clause of § 110.08(I).

(C) Garage sales. Garage sales conducted in any residentially zoned area shall be subject to the limitations of any

"home occupation" as set forth in the Code of Ordinances.

• (1) All garage sales must be licensed by the city.

(2) The license fee for a garage sale shall be $5 per calendar year which entitles the licensee to hold two garage sales per calendar year, provided that each sale lasts no longer than three consecutive days.

• (D) Community special events; permit requirements.

(1) No person shall conduct or sponsor a community special event without first obtaining a permit and paying the applicable fees thereto set by City Council resolution. Applications for permits shall be made to the Parks and Recreation Department on forms supplied by the Parks and Recreation Department. The applications shall be made at least 60 days prior to the proposed date for the community special event. Failure to file an application 60 days in advance of the proposed date for the community special event may not necessarily result in automatic denial of the permit, but where there is insufficient time for staff review of the application, the permit shall be automatically denied.

(2) All applications for permits shall be reviewed and approved by the Director of Parks and Recreation or his or her designee, the Director of Development Services or his or her designee, by the Sheriff's Department, and any other City Department that may be involved in preparation for the event prior to being submitted to the City Council or City Manager for final approval, subject to the conditions listed below. The event organizer present at the event shall display a copy of the approved permit at all times the event is in operation.

Development Services or his or her designee, by the Sheriff's Department, and any other City Department that may be involved in preparation for the event prior to being submitted to the City Council or City Manager for final approval, subject to the conditions listed below. The event organizer present at the event shall display a copy of the approved permit at all times the event is in operation.

(a) A "new" community special event that has not at one time been approved to occur in the City of Riverbank by the City Council shall be presented to the City Council for final approval.

(b) Any community special event that demands the City of Riverbank expend a significant amount of city staff time, funds, fee waivers, or resources, as determined by the City Manager, shall be presented to the City Council for final approval.

(c) An annual community special event that has at one time been previously approved by the City Council and does not demand the City of Riverbank expend a significant amount of city staff time, funds, fee waivers, or resources, as determined by the City Manager, may thereafter be approved by the City Manager.

(3) As used in this subsection "community special event" shall be construed and understood as follows:

(a) Any street fair, circus, farmers market, street market, art and craft show, exhibition (i.e., car show, air show), carnival, festival, or indoor or outdoor musical concert or other social event or gathering which occurs on a city street, sidewalk, alley or other street right-of-way, city park, or city facilities:

1. Which is likely to obstruct, delay, or interfere with the normal flow of pedestrian traffic;

2. Whose participants are likely not to comply with traffic laws and controls; or

3. Which involves the use or impacts upon other public property or facilities and the provision of city public safety services in response thereto.

(b) Community special event shall not include events that are organized for the principle purpose of the

exercising free speech rights. "Free speech rights" means expressive activity, protected by the First Amendment of the United States Constitution or Article 1, Section 2, of the California Constitution.

(`67 Code, § 6-1-18) (Ord. 74-19, passed 9-9-74; Am. Ord. 77-7, passed 7-25-77; Am. Ord. 83-4, passed 5-23-83; Am. Ord. 92-20, passed 12-14-92; Am. Ord. 2015-005, passed 3-10-15)

Cross-reference:

Fireworks stands specifications, see § 92.17

Home occupations, see §§ 153.265 through 153.267

Every person not having a fixed place of business within the city, and not being herein otherwise licensed or classified, who delivers goods, wares or merchandise of any kind by the use of vehicles in the city, shall pay the license tax at the rate of $10 per quarter.

(`67 Code, § 6-1-19)

(A) Every person not having a fixed place of business within the city, and not being herein otherwise licensed or classified, who delivers goods, wares, or merchandise of any kind by the use of vehicles in the city, shall pay a license fee at a rate set by the City Council, as amended time to time.

(B) Division (A) shall apply to all cannabis businesses that provide delivery service within the city unless that business is expressly exempt from this section.

(Ord. 2017-007, passed 8-22-17)

(A) The Collector may make rules and regulations not inconsistent with the provisions of this chapter, and the Sheriff's Commanding Officer shall render such assistance in the enforcement hereof as may from time to time be required by the Collector or the City Council.

(B) The Collector in the exercise of the duties imposed upon him hereunder, and acting through his deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the city to ascertain whether the provisions of this chapter have been complied with.

(C) The Collector and each and all of his assistants and any police officer shall have the power and authority (upon obtaining an inspection warrant therefor) to enter, free of charge, and demand an exhibition of its license. Any person having such license theretofore issued, in his possession or under his control, who wilfully fails to exhibit the same on demand, shall be guilty of a misdemeanor and subject to the penalties provided for by the provisions of this chapter. It shall be the duty of the Collector and each of his assistants to cause a complaint to be filed against and all persons found to be violating any of said provisions.

(`67 Code, § 6-1-21)

The amount of any license tax and penalty imposed by the provisions of this chapter 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.

(`67 Code, § 6-1-22)

All remedies prescribed hereunder shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. (`67 Code, § 6-1-23)

(A) Neither the adoption of this chapter nor its superseding of any portion of any other ordinance of the city shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date hereof, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.

(B) Where a license for revenue purposes has been issued to any person by the city and the tax paid for the business for which the license has been issued under the provisions of any ordinance heretofore enacted and the term of the license has not expired, then the license as prescribed for the business by this chapter shall not be payable until the expiration of the term of such unexpired license.

(`67 Code, § 6-1-24)

Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any officer or employee of this city any material fact in procuring the license or permit herein provided for shall be deemed guilty of a misdemeanor.

(`67 Code, § 6-1-25)

The City Council reserves the right to revoke any license issued under this chapter upon good cause shown. Good cause includes but is not limited to violations of this chapter or violations of other provisions of this code which bear a rational relationship to the licensee's qualifications to hold such a license, including but not limited to violations involving fraud, theft, and dishonesty. No license shall be revoked until after a hearing before the City Council, notice of which hearing shall be given to a license holder not less than 15 days in advance of the date of such hearing. This notice shall either be delivered to the licensee personally, or left at his place of business, if he conducts his business in a bona fide and established place in the city, or by mailing the notice to him at the mailing address set forth on his application. Upon revocation of a license, the City Council may, in such cases as it deems proper, order refunded to the person whose license is revoked any prepaid license fees of such person. (`67 Code, § 6-1-27) (Ord. 83-4, passed 5-23-83)