Rohnert Park Municipal Code Ch. 5.04 Business Licenses—general Provisions

A. "Average number of persons employed," as used in this chapter and Chapters 5.08 and 5.12, shall be determined by ascertaining the total number of hours of service performed by all employees of applicant within the city during the previous calendar year, and dividing the total number of hours of service thus obtained by the number of hours of service constituting a year's work of one full-time employee according to the custom of laws governing such employment. In computing the average number of persons employed, a fraction of one-half or more of the customary or equal annual full-time employees shall be considered as one additional employee. For the purpose of this section, the term "person employed" includes proprietors and persons who have an interest in the business as well as relatives and members of the family who render services.

B. "Business," as used in this chapter and Chapters 5.08 and 5.12, includes professions, trades, and occupations and all and every kind of calling whether or not carried on for profit.

C. "City" as used in this chapter and Chapters 5.08 and 5.12, means the city of Rohnert Park, a municipal corporation of the state of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.

D. "Collector," as used in this chapter and Chapters 5.08 and 5.12 means the city manager or his designee.

E. "Gross receipts," as used in this chapter and Chapters 5.08 and 5.12, shall include the total of amounts actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service, whatever nature it may be, for which a charge is made or credit 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 "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. Excluded from "gross receipts" shall be the following:

1. Cash discounts allowed and taken on sales.

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold;

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 the contract of sale as is refunded either in cash or by credit;

5. 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;

6. That portion of the receipts of a general contractor which represents payments to subcontractors; provided that:

a. Such subcontractors are licensed under this chapter and Chapters 5.08 and 5.12; and

b. The general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each subcontractor;

7. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded.

F. "Person," as used in this chapter and Chapters 5.08 and 5.12 includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts businesses, or common law trusts, societies, and individuals transacting and carrying on any business in the city, other than as an employee.

G. "Sale," as used in this chapter and Chapters 5.08 and 5.12 includes 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 include any transaction which is or which, in effect, results in a sale within the contemplation of law.

H. "Sworn statement," as used in this chapter and Chapters 5.08 and 5.12 means an affidavit sworn to before a person authorized to take oaths, or a declaration or certificate made under penalty of perjury.

(Ord. 201 § 1, 1973)

Persons required to pay a license tax for transacting and carrying on any business under this chapter and Chapters 5.08 and 5.12 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 license issued pursuant to the provisions of this chapter and Chapters 5.08 and 5.12 shall be construed as authorizing the conduct or continuance of any illegal or unlawful business.

(Ord. 201 § 2, 1973)

There are imposed upon the businesses; trades, professions, callings, and corporations specified in this chapter and Chapters 5.08 and 5.12 license taxes in the amounts hereinafter prescribed. It is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so and paying the tax hereinafter prescribed or without complying with any and all applicable provisions of this chapter and Chapters 5.08 and 5.12.

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 of California. 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 and Chapters 5.08 and 5.12.

(Ord. 201 § 3, 1973)

A separate license must be obtained for:

A. Each branch establishment or location of the business transacted and carried on, and

B. For each separate type of business at the same location. 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. If a separate federal income tax return is filed for a particular business, it shall, for purposes of this section, be conclusively presumed to be a separate business for which a separate license is required.

(Ord. 201 § 4, 1973)

None of the license taxes provided for by this chapter and Chapters 5.08 and 5.12 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 of California.

In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he may apply to the collector for an adjustment of the tax. Such application may be made before, at, or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show its method of business and such information as the collector may deem necessary in order to determine the extent, if any, of such undue burden or violation. The collector 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 collector shall have the power to base the license tax upon any measure which will reasonably assure 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 chapter and Chapters 5.08 and 5.12.

(Ord. 201 § 5, 1973)

A. Nothing in this chapter and Chapters 5.08 and 5.12 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 of California 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 in the absence of such statement substantiating the claims, such person shall be liable for the payment of the taxes imposed by this chapter and Chapters 5.08 and 5.12.

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 of the city of the license tax required by this chapter and Chapters 5.08 and 5.12.

D. The collector, after giving notice and a reasonable opportunity for 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. The following businesses and persons shall be exempt from taxation under this chapter and Chapters 5.08 and 5.12:

1. Banks, as defined under Article 13, Section 16 of the California Constitution;

2. Insurers as defined under Article 13, Section 14-4/5 of the California Constitution;

3. Businesses involved in the manufacture, importation and sale of alcoholic beverages;

4. Cafe musicians as that term is defined in Section 16000.5 of the California Business and Professions Code;

5. Veterans, as defined in Sections 16001 and 16001.5 of the California Business and Professions Code;

6. Businesses carried on exclusively for the benefit of philanthropic, social service, benevolent or patriotic purposes.

7. Vendors whose business is conducted exclusively in connection with special events offered by: (1) the community services department of the city, or (2) other city-sponsored special events. For the purposes of this section the term "vendor" shall refer only to those vendors selling produce, pre-packaged food, or arts and craft items.

(Ord. 289 § 1, 1975; Ord. 201 § 6, 1973)

(Ord. No. 849, § 2, 10-23-2012)

Every person required to have a license under the provisions of this chapter and chapters 5.08 and 5.12 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 such person a license which shall contain the following information:

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

B. 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 administrative information as may be necessary for the enforcement of the provisions of this chapter and Chapters 5.08 and 5.12.

Whenever the tax imposed under the provisions of this chapter and Chapters 5.08 and 5.12 is measured by the number of vehicles, devices, machines, or other pieces of equipment used, or whenever the license tax is measured by the gross receipts from the operation of such items, the collector shall issue only one license; provided, that he may issue for each tax period for which the license tax has been paid one identification sticker, tag, plate, or symbol for each item included in the measure of the tax or used in a business where the tax is measured by the gross receipts from such items.

(Ord. 201 § 7, 1973)

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:

A. The exact nature or kind of business for which a license is requested;

B. 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;

C. 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 residences of those owning said business;

D. 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;

E. In all cases where the amount of license tax to be paid is measured by gross receipt or average number of persons employed, the application shall set forth such information as may be therein required and as may be necessary to determine the amount of the license tax to be paid by the applicant;

F. Any further administrative information which the collector may require to enable him to issue the type of license applied for.

If the amount of the license tax to be paid by the applicant is measured by gross receipts or average number of persons employed, he shall estimate the gross receipts or average number of persons to be employed for a period to be covered by the license to be issued. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, however, the amount of the license tax so determined shall be tentative only, and such person shall, within thirty days after the expiration of the period for which such license was issued, furnish the collector with a sworn statement, upon a form furnished by the collector, showing the gross receipts or average number of persons employed during the period of such license, and the license tax for such period shall be finally ascertained and paid in the manner provided by this chapter and Chapters 5.08 and 5.12 for the ascertaining and paying of renewal license taxes for other businesses, after deducting from the payment found to be due, the amount paid at the time such first license was issued.

The collector shall not issue to any such person another license for the same or any other business, until such person shall have furnished to him the sworn statement and paid the license tax as herein required.

(Ord. 201 § 8, 1973)

In all cases, the applicant for the renewal of a license shall submit to the collector, on or before January 1st, an application for renewal containing a sworn statement upon a form to be provided by the collector, setting forth such information concerning the applicant's business during the preceding calendar year as may be required by the collector to enable him to verify the amount of the license tax to be paid by said applicant pursuant to the provisions of this chapter and Chapters 5.08 and 5.12.

(Ord. 201 § 9, 1973)

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

All persons subject to the provisions of this chapter and Chapters 5.08 and Chapter 5.12 shall keep complete records of business transactions, including sales, receipts, purchases, and other expenditures, and shall retain all such records for examination by the collector. Such records shall be maintained for a period of at least three years. No person required to keep records under this section shall refuse to allow authorized representatives of the collector to examine said records at reasonable times and places.

(Ord. 201 § 10, 1973)

It is unlawful for the collector or any person having an administrative duty under the provisions of this chapter and Chapters 5.08 and 5.12 to make known in any manner whatever the business affairs, operations or information obtained by an investigation of records and equipment of any person required to obtain a license, or pay a license tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person. Provided that nothing in this section shall be construed to prevent:

A. The disclosure to, or the examination of records and equipment by, another city official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter and Chapters 5.08 and 5.12, or collecting taxes imposed hereunder;

B. The disclosure of information to, or the examination of records by, federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena;

C. The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence of amount of any license tax liability of the particular taxpayers to the city;

D. The disclosure after the filing of a written request to that effect, to the taxpayer himself, or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties, further provided, however, that the city attorney approves each such disclosure and that the collector may refuse to make any disclosure referred to in this paragraph when in his opinion the public interest would suffer thereby;

E. The disclosure of the names and addresses of persons to whom licenses have been issued, and the general type or nature of their business;

F. The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of license taxes, or submits an offer of compromise with regard to a claim asserted against him by the city for license taxes, or when acting upon any other matter;

G. The disclosure of general statistics regarding taxes collected or business done in the city.

(Ord. 201 § 11, 1973)

If any person fails to file any required statement within the time prescribed, or if, after demand therefor made by the collector, he fails to file a corrected statement, or if the collector is not satisfied with the information supplied in statements or applications filed, or if any person subject to the tax imposed by this chapter and Chapters 5.08 and 5.12 fails to apply for a license, the collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain and shall give written notice thereof to such person.

(Ord. 201 § 12, 1973)

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 within fifteen days after receipt of written notice of the decision of the collector. 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 Rohnert Park, 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 and Chapters 5.08 and 5.12.

(Ord. 201 § 13, 1973)

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 thirty days, and in such case to waive any penalty that would otherwise have accrued, except that seven percent simple interest shall be added to any tax determined to be payable from the date such tax is determined to have been due.

(Ord. 201 § 14, 1973)

No license issued pursuant to this chapter and Chapters 5.08 and 5.12 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 upon application therefor and paying a fee of five dollars have a 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. 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.

(Ord. 201 § 15, 1973)

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 statement of such fact, and at the time of filing such statement, paying to the collector a duplicate license fee of five dollars.

(Ord. 201 § 16, 1973)

A. 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.

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.

C. Whenever identifying stickers, tags, plates, or symbols have been issued for each vehicle, device, machine, or other piece of equipment included in the measure of a license tax, the person to whom such stickers, tags, plates, or symbols have been issued shall keep firmly affixed upon each vehicle, device, machine, or piece of equipment the identifying sticker, tag, plates, or symbol which has been issued therefor at such locations as are designated by the collector. Such sticker, tag, plate, or symbol shall not be removed from any vehicle, device, machine, or piece of equipment kept in use, during the period for which the sticker, tag, plate, or symbol is issued.

D. No person shall fail to affix as required herein any identifying sticker, tag, plate, or symbol to the vehicle, device, machine, or piece of equipment, for which it has been issued at the location designated by the collector, or to give away, sell, or transfer such identifying sticker, tag, plate, or symbol to another person, or to permit its use by another person.

(Ord. 201 § 17, 1973)

Fifty percent of any annual license tax established by this chapter and Chapters 5.08 and 5.12 shall be due and payable on July 1, 1973, for the period commencing on July 1, 1973, and ending December 31, 1973, thereafter unless otherwise specifically provided, all license taxes under the provisions of this chapter and Chapters 5.08 and 5.12 shall be due and payable in advance on the first day of January of each year; provided that license taxes covering new operations, commenced after the first day of January, may be prorated fifty percent for the final six months of the license period.

(Ord. 201 § 18, 1973)

For failure to pay a license tax when due, the collector shall add a penalty of twenty-five percent of the license tax on the first day of each month after the due date thereof; providing that the amount of such penalty to be added shall in no event exceed fifty percent of the amount of the license tax due. When the last day of the month falls on a day when the city hall is closed, payment of the license tax due may be made on the first working day of the next month without penalty. Penalties in such cases shall attach on the second working day of the succeeding month. Any license issued pursuant to this chapter and Chapters 5.08 and 5.12 may be suspended by the collector upon the failure of the licensee to pay any charges imposed by this chapter and Chapters 5.08 and 5.12 or to file reports as required by this chapter and Chapters 5.08 and 5.12 within sixty days after such charges or reports become delinquent. No license shall be issued, nor shall one which has been suspended or revoked be reinstated or reissued, to any person, who, at the time of applying therefor, is indebted to the city for any delinquent license taxes, unless such person, with the consent of the collector, enters into a written agreement with the city, through the collector, to pay such delinquent taxes, plus seven percent simple annual interest upon the unpaid balance, in monthly installments, or oftener, extending over a period of not to exceed one year.

In any agreement so entered into, such person shall acknowledge the obligation owed to the city and agree that, in the event of failure to make timely payment of any installment, the whole amount unpaid shall become immediately due and payable and that his current license shall be revocable by the collector upon thirty days notice. In the event legal action is brought by the city to enforce collection of any amount included in the agreement, such person shall pay all costs of suit incurred by the city or its assignee, including a reasonable attorney's fee. The execution of such an agreement shall not prevent the prior accrual of penalties on unpaid balances at the rate provided hereinabove, but no penalties shall accrue on account of taxes included in the agreement, after the execution of the agreement, and the payment of the first installment and during such time as such person shall not be in breach of the agreement.

(Ord. 201 § 19, 1973)

No refund of any overpayment of taxes imposed by this chapter and Chapters 5.08 and 5.12 shall be allowed in whole or in part unless a claim for refund is filed with the collector within a period of six months from the last day of the calendar month following the period for which the overpayment was made, and all such claims for refund of the amount of the overpayment must be filed with the collector on forms furnished by him. Upon the filing of such a claim and when he determines that an overpayment has been made, the collector may refund the amount overpaid.

(Ord. 201 § 20, 1973)

Every person not having a fixed place of business within the city who engages in business within the city shall pay a license tax at a rate commensurate with the amount of business done in the city, the amount of time spent in the city and such other factors as may be determined by the city to compute a just and proper tax. In making the determination of the rate and amount of such just and proper tax, the tax collector shall use the tax rate paid by comparable businesses doing business and located within the city duly adjusted by factors determined by the city to reflect the proper tax level attributable to such businesses.

(Ord. 289 § 2, 1975: Ord. 201 § 23, 1973)

The collector may make rules and regulations not inconsistent with the provisions of this chapter and Chapters 5.08 and 5.12 as may be necessary or desirable to aid in the enforcement of the provisions of this chapter and Chapters 5.08 and 5.12.

(Ord. 201 § 24, 1973)

It is the duty of the collector, and he is so directed to enforce each and all of the provisions of this chapter and Chapters 5.08 and 5.02, and the chief of police shall render such assistance in the enforcement hereof as may from time to time be required by the collector or the city council.

The collector in the exercise of the duties imposed upon him hereunder, and acting through his deputies or duly authorized assistants, may examine or cause to be examined any place of business in the city to ascertain whether the provisions of this chapter and Chapters 5.08 and 5.12 have been complied with.

The collector, and each and all of his assistants and any police officer, have the power and authority, upon obtaining an inspection warrant therefor, to enter, free of charge, and at any reasonable time, any place of business required to be licensed herein 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, is guilty of a misdemeanor and subject to the penalties provided for by the provisions of this chapter. It is the duty of the collector and each of his assistants to cause a complaint to be filed against any and all persons found to be violating any of said provisions.

(Ord. 201 § 25, 1973)

The amount of any license tax and penalty imposed by the provisions of this chapter and Chapters 5.08 and 5.12 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.

(Ord. 201 § 26, 1973)

All remedies prescribed hereunder are cumulative and the use of one or more remedies by the city does not bar the use of any other remedy for the purpose of enforcing the provisions hereof.

(Ord. 201 § 27, 1973)

Neither the adoption of the ordinance codified in 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 any violation of any other ordinance committed prior to June 18, 1973, nor shall it 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.

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 such license has not expired, then the license tax prescribed for said business by this chapter and Chapters 5.08 and 5.12 shall have subtracted therefrom the prorated amount of the unexpired license.

(Ord. 201 § 28, 1973)

Any person violating any of the provisions of this chapter and Chapter 5.08 and 5.12 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 is guilty of a misdemeanor, and upon conviction thereof, shall be punishable by a fine of not more than five hundred dollars or by imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment.

(Ord. 201 § 29, 1973)