Rolling Hills Estates Municipal Code Ch. 5.04 Business Licenses Generally

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Editor's note— Ord. No. 719, § 3(Exh. A), adopted June 27, 2017, amended Ch. 5.04 in its entirety to read as herein set out. Former Ch. 5.04 §§ 5.04.010—5.04.270 pertained to similar subject matter and derived from Prior code §§ 700—719, 719.1, 720(part), 750—752.

Chapters 5.04 and 5.08 of this code are enacted for revenue and regulatory purposes. Issuance of a business license is evidence only of the fact that a business license tax has been paid and does not constitute any other type of required permit or land use approval.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

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

"Employee" means all persons who are engaged, on a part-time or full-time basis in the operation or conduct of any business in the city, whether as owner, any member of the owner's family, partner, agent, manager, and any and all other persons employed or working in the business.

In determining the number of employees for the purpose of fixing the license tax due under Chapters 5.04 and 5.08, the employer must take the number of employees as defined in this section, employed within the city, earning wages during pay periods nearest the fifteenth day of each month, as reported to the employment development department on forms which are used for reporting payments due under the Unemployment Insurance Act, for each month of the previous calendar quarter, adding the same and dividing by three. If the employer has been in business less than one year, the employer may use the average number of employees who will be employed during the remainder of the calendar year.

"Gross receipts" means gross income, as defined in the Internal Revenue Code, and includes 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, of 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" are 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" are all of 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 sales 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 director with the names and addresses of the others and the amounts paid to them;

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

7. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker;

8. As to a retail gasoline dealer, that portion of his/her gross receipts derived from the sale of motor vehicle fuel, equal to the motor vehicle fuel tax imposed by and previously paid under the provisions of Part 2 of Division 2 of the Revenue and Taxation Code of the State;

9. 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/her from the consumer or purchaser.

"Person" includes 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 of a person licensed under this code.

"Tax" means a tax imposed pursuant to Chapter 5.04 and Chapter 5.08 upon a business in order to obtain a business license.

"Tax collector" means the officer or person appointed by the city council by resolution or ordinance to perform the duties of tax collector as set forth in Chapters 5.04 and 5.08 of this code and the designated employees or agents of such official.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

When any person by any means, including, without limitation, the use of signs, circulars, cards, telephone directories, trade publications, newspapers, advertisements, websites, internet postings, social media or other electronic communication platform, represents that such person is in a business in the city, or when any person holds an active license or permit issued by a governmental agency which license reflects that such person is in business in the city, such person will be deemed to be transacting or carrying on a business in the city.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. Exemption By Virtue of Constitution or Other Law. Nothing in Chapters 5.04 or 5.08 of this code will be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes or laws of the United States or of the state from the payment of such taxes required under Chapter 5.04 and Chapter 5.08.

B. Interstate Commerce. None of the license taxes provided for by Chapters 5.04 or 5.08 of this code will be applied as to occasion an undue burden upon interstate commerce. In any case where a license tax is believed by a licensee or applicant for license to place an undue burden upon such commerce, such person may apply to the tax collector for an adjustment of the tax so that it will 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 must, by affidavit and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the tax collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The tax collector will then conduct an investigation and after first having obtained the written approval of the city attorney, and fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or if the license tax has already been paid, will order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the tax collector will have the power to base the license tax upon a percentage of gross receipts or any other measure which will assure that the license tax assessed is uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by Chapters 5.04 and 5.08 of this code. Should the tax collector determine the gross receipts measure of license tax to be the proper basis, the tax collector may require the applicant to submit, either at the time of termination of 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 will be required after the licensee has paid an amount equal to the annual license tax, as prescribed in Chapters 5.04 and 5.08 of this code.

C. Charitable and Nonprofit Organizations. The provisions of Chapters 5.04 and 5.08 of this code will not be deemed or construed to require the payment of a license tax to conduct, manage or carry on any business, occupation or activity from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any individual; nor will any license tax be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, amateur theatrical group, military, state, county or municipal organization or association whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objects for which such organization or association was formed and from which profit is not derived, either directly or indirectly, by any individual; provided, however, that nothing in this section will be deemed to exempt any such organization or association from complying with any of the provisions of Chapters 5.04 and 5,08 of this code requiring a permit from the city to conduct, manage or carry on any profession, trade, calling or occupation. If a nonprofit organization merely sponsors an event and only receives a percentage of the receipts, or receives a specified amount or fee, then each person conducting a business at the event must obtain a business license and pay the applicable business license tax in accordance with the provisions of Chapters 5.04 and 5.08.

D. Disabled Veterans. No license tax will be required to be paid by any person who has received an honorable discharge or release from active duty in one of the United States armed services, who is physically unable to obtain a livelihood by manual labor and who is a voter of this state.

E. Limited Gross Receipts. Minors and adults 65 years of age or older who are engaged in a business with gross receipts under two thousand five hundred dollars per year are not required to obtain a business license or pay a license tax.

F. Verified Statement Required. Any person claiming an exemption pursuant to this section must file a verified statement with the tax collector, stating the facts upon which exemption is claimed.

G. License—Issuance. The tax collector must, 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 Chapters 5.04 and 5.08 of this code.

H. License—Revocation. The tax 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 provided,

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. There are imposed upon the businesses, trades, professions, calling and occupations specified in Chapters 5.04 and 5.08 of this code license taxes in the amounts stated in such chapters.

B. No person may transact or carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city so to do or without complying with all applicable provisions of Chapters 5.04 and 5.08 of this code.

C. No license will be issued to engage in any business when the provisions of this code require a permit or other approval to be obtained as a prerequisite to engaging in such businesses, until such permit or approval is first obtained. Any license issued in violation of the preceding sentence will be void.

D. This section will 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.

E. 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 will not be liable for payment of the tax imposed by Chapters 5.04 and 5.08 of this code.

F. No license will be issued under this chapter until all applicable legal regulations and requirements have been complied with.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A separate license must be obtained for each branch establishment or location of the business transacted and carried on, and each license will 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 Chapter 5.04 and 5.08 of this code will not be deemed to be separate places of business or branch establishments.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. If two or more businesses are conducted on the same premises by the same person and such businesses are subject to the employees' tax, only one license will be required based upon the total average number of employees employed at such location, and based upon that schedule which applies to that business which constitutes more than fifty percent of the business conducted in the location.

B. If any person conducts two or more businesses at the same location, which businesses are subject to license taxes in fiat amounts, the license will be computed by taking the highest license tax applicable to one of such businesses and adding to it fifty percent of the license tax applicable to each of the other businesses.

C. If any person is conducting two or more businesses at the same location and if one or more of such businesses are subject to the employees' tax and the other business or businesses are subject to tax on flat amounts, then a separate license must be for the business or businesses, the tax for which is based upon the total average number of employees and other license tax applicable to those businesses subject to flat amounts must be obtained which will be determined by the highest license tax applicable to any of such businesses, plus fifty percent of the additional license applicable to the remaining businesses.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

In the case of an annual event, the sponsor of the event may obtain a license in accordance with this code for all approved vendors or businesses included in the event. This method of licensing may only be used for events which take place once a year, regardless of the number of days in the event. When the business license is issued to a sponsor in accordance with this section, all individual vendors or businesses will be conclusively presumed to be exempt from the requirement of obtaining a separate license for the purpose of conducting a business at the event.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

None of the taxes imposed by Chapter 5.04 and Chapter 5.08 will be applied to businesses operating both within and outside the city's jurisdiction so as to not fairly reflect that proportion of the taxed activity actually carried on within the city.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

Every person required to have a license under the provisions of Chapters 5.04 and 5.08 of this code must apply for a license to the tax collector, and upon the payment of the prescribed license tax, the tax collector will issue to such person a license which will contain:

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 information as may be necessary for the enforcement of the provisions of Chapters 5.04 and 5.08 of this code.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. Upon a person making application for the first license or for a newly established business, such person must furnish to the tax collector a written statement, upon a form provided by the tax collector, written under penalty of perjury or sworn to before a person authorized to administer oaths, setting forth such information as may be necessary to determine the amount of the license tax to be paid by the applicant.

B. The tax collector will not issue to any such person a license or another license for the same or any other business until such person has furnished the written statement and paid the required license tax.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

The applicant for the renewal of a license must submit to the tax collector a written statement, upon a form to be provided by the tax collector written under penalty of perjury or sworn to before a person authorized to administer oaths, setting forth such information concerning the applicant's business during the preceding year as may be necessary to determine the amount of the license tax to be paid by the applicant.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. No statements on an application will be conclusive as to the matters set forth in the application, nor will the filing of the statement preclude the city from collecting by appropriate action such sum as is actually due and payable under this code. Such statement will be subject to audit and verification by the tax collector, who is authorized to examine, audit, and inspect such books and records of any licensee or applicant for license as may be necessary to verify or ascertain the amount of license tax due.

B. All licensees, applicants for licenses, and persons engaged in business in the city are required to permit an examination of such books and records for the purposes of Chapters 5.04 and 5.08 of this code.

C. The information furnished or secured pursuant to Chapters 5.04 and 5.08 of this code will be confidential to the extent permitted by the California Public Records Act (Government Code section 6250 and following) and any successor statute.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. If any person fails to file any required statement or corrected statement within the time prescribed, the tax collector may determine the amount of license tax due from such person by means of such information as tax collector may be able to independently obtain.

B. If such a determination is made, the tax collector will give a notice of the tax amount so assessed by serving it personally or by depositing it in the United States mail to the person so assessed at such person's last known address. Such person may, within fifteen days after the mailing or serving of such notice, apply in writing to the tax collector for a hearing on the amount of the license tax. If such application is made, the tax collector will cause the matter to be set for hearing within fifteen days before the city manager or the manager's designee. The tax collector will give at least ten days' notice to such person of the time and place of hearing in the manner prescribed in this subsection for serving notices of assessment. The city manager will consider all evidence produced and will make a decision, including findings, which decision will be final. Notice of such decision will be served upon the applicant in the manner prescribed in this subsection for serving notices of the tax assessment.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

In addition to all other powers conferred by this code, the tax collector has the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding thirty days, and in such case to waive any penalty that would otherwise have accrued, and has the further power to compromise any claim as to the amount of license tax due.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

No license issued pursuant to Chapter 5.04 or 5.08 of this code is 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 and the payment the applicable fee 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 has or is to be moved.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. The duration of any license issued under Chapter 5.04 or 5.08 of this code is limited as follows:

1. If the license tax is an annual license tax the license will expire on the December 31 of the calendar year for which the license is issued;

2. If the license tax is a quarterly or semiannual license tax, the license will expire on the last day of the calendar quarter or semiannual calendar period in which or for which it is issued;

3. If the license tax is a daily license tax, the license will expire at midnight of the day on or for which the license was issued; provided, however, that such license may be issued for a greater period of time, but not to exceed the close of the calendar year. In such cases the license tax for the entire period computed on a daily basis will be due and payable in advance.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A duplicate license may be issued by the tax collector to replace any license previously issued that has been lost or destroyed upon the licensee filing a statement of such fact, and the payment of the applicable a duplicate license fee.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

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

A. Any licensee transacting and carrying on business at a fixed place of business in the city must 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 must keep the license upon his or her person at all times while transacting and carrying on such business.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. Except as otherwise specifically provided in this code or by resolution adopted by the city council, all annual license taxes under the provisions of Chapters 5.04 and 5.08 of this code will be due and payable in advance on the first day of January of each year.

B. Except as otherwise specifically provided in this code or by resolution adopted by the city council, daily flat rate license taxes under the provisions of Chapters 5.04 and 5.08 of this code will be due and payable at least one day in advance.

(Ord. No. 719, § 3(Exh. A), 6-27-2017; Ord. No. 748, § 3, 7-11-2023)

A. Penalty. For failure to pay a license tax when due, the tax collector will add a penalty of ten percent of the license tax on the last day of each month after the due date, provided, that the amount of such penalty to be added will in no event exceed sixty percent of the amount of the license tax due.

B. Waiver. The tax collector may, for good cause shown, waive part or all of the penalties otherwise due under this section.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. Unless otherwise provided in this section, all fees, licenses, permits, taxes and monetary obligations owing to the city under Title 5 of this code may be paid by personal check, cash, credit card, or debit card.

B. Any person whose personal check is returned to the city without payment must pay a penalty charge of twenty-five dollars. The twenty-five dollar penalty charge will be added to the fee, license, permit or tax for which the personal check was drafted and that monetary obligation will not be deemed to have been paid until both the monetary obligation and the ten dollar penalty charge have been honored and paid by the financial institution.

C. For a period of two years, the city may require a person whose personal check was returned to the city without payment to pay all fees, licenses, permits and taxes by cash, a cashier's check or postal money order.

D. In addition to the provisions of this section, a person whose personal check is returned to the city without payment is liable for all civil penalties authorized by California Civil Code section 1719.

E. All negotiable instruments must be made payable to the order of the city.

F. The penalties provided in this section will be imposed in addition to penalties due under Section 5.04.190.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

No refund of an overpayment of taxes imposed by this chapter and Chapter 5.08 will be allowed unless a written claim for refund is filed with the tax collector within a period of one hundred eighty days from the last day of the calendar month following the period for which the overpayment was made, if, upon filing of such a claim it is determined that an overpayment has been made, the tax collector will refund the amount overpaid.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. Any license issued under Chapter 5.04 or 5.08 of this code is subject to revocation for cause in the manner provided in this section.

B. Complaints against any licensee seeking a revocation of license must be in writing and must set forth one or more of the grounds hereinafter enumerated. Except, a written report of the sheriff or any officer or employee of the city disclosing violations of any law by the licensee or his or her agents or employees will be deemed a complaint within the meaning of this section. All complaints must be verified unless made by city officers or employees in their official capacity.

C. The following are the grounds which constitute a basis for the revocation of licenses:

1. When the continuance of the operations of the licensee under such license is contrary to the public health, safety, peace, welfare or morals, or is found to constitute a public nuisance;

2. Violation of any law by the licensee;

3. The misrepresentation of a material fact by any applicant in obtaining a license;

4. A plea, verdict or judgement of guilty to any public offense involving moral turpitude charged against the licensee.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. Complaints against any licensee must be filed with, or initiated by, the tax collector, who will conduct an investigation to determine whether the complaint is sufficient to show probable cause for the commencement of formal revocation proceedings against such licensee. Upon completion of such investigation, the tax collector will report the results to the city manager, together with a recommendation as to whether formal proceedings should be initiated or whether the complaint should be disregarded. The city manager, based upon such report and such additional investigation as he or she may deem appropriate, will determine whether or not the complaint constitutes a sufficient basis for initiation of proceedings to revoke the license of the individual involved. If the city manager determines to initiate such proceedings, the manager will set the matter for a hearing. The complainant, the licensee, and other persons requesting the same, must be given at least five days' written notice of the time and place of such hearing. At the time of the hearing, the city manager will determine whether sufficient basis exists for revocation of the license, based upon the complaint, applicable staff reports, and such other evidence as may be presented which is relevant to the proceedings. The licensee must be given a reasonable opportunity to be heard in conjunction with the revocation proceedings. The burden of proof will be upon the tax collector to show that the facts are sufficient to constitute a basis of revocation. The proceedings before the city manager will be an informal administrative hearing and the rules of evidence, as generally applied in judicial proceedings, will not be applicable. The right of subpoena will be extended to the tax collector and licensee.

B. The decision of the city manager will be final.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

Upon revocation of a license, no part of the tax collected will be returned. When the license of any person is revoked for any cause, no new or other license may be granted to such person within twelve months from the date of such revocation.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

It is the duty of the tax collector to enforce the provisions of Chapters 5.04 and 5.08 of this code.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

A. The tax collector, in the exercise of the duties imposed under Chapter 5.04 and 5.08, is authorized to examine, or cause to be examined, all places of business in the city to ascertain whether the provisions of Chapters 5.04 and 5.08 of this code, have been complied with.

B. The tax collector is authorized to enter, free of charge, and at any reasonable time, any place of business required to be licensed under this chapter and demand an exhibition of its license. Any person having such license in his or her possession or control, and who willfully fails to exhibit the same on demand may be charged with a misdemeanor and may be subject to the penalties provided for in Chapters 5.04 and 5.08 of this code.

C. All persons subject to the provisions of this chapter must keep complete records of business transactions, including sales, receipts, purchases and other expenditures, and must retain all such records for examination by the tax collector. Such records must be maintained for a period of at least three years. No person required to keep records pursuant to this section may refuse to allow authorized representatives of the tax collector to examine such records at reasonable times and places. At the tax collector's request, copies of the records must be provided to the tax collector by mail, personal delivery, or by electronic communication.

D. Where an audit conducted pursuant to this chapter reflects an understatement of gross receipts by more than ten percent, the cost of such audit must be paid to the city by the applicant or licensee.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

The information collected from applicants and licensees under this chapter is generally deemed confidential and will not be disclosed except as follows:

A. The disclosure to, or the examination of records and equipment by, another city official, employee, or agent for the purpose of administering or enforcing any provisions of this code.

B. The disclosure of information to, or the examination of records by, authorized federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists.

C. The disclosure to any person of information and results of examination of records of particular taxpayers authorized by court order or subpoena.

D. The disclosure of information to any person after the filing of a written request to that effect, by the licensee.

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

G. The disclosure of any information required by law.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

Any person aggrieved by any decision of the tax collector with respect to the issuance or refusal to issue such license, or the amount of license tax imposed, may appeal to the city manager by filing a notice of appeal with the city clerk. Such a notice of appeal must be accompanied by an administrative fee in an amount set by city council resolution. The city manager will fix a time and place for hearing such appeal. The city clerk will give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States mail at Rolling Hills Estates, California, postage prepaid, addressed to such person at his or her last known address. The city manager will have authority to determine all questions raised on such appeal. The decision of the city manager will be in writing and will be final. The written notice of decision must provide that an action may be filed with the Superior Court of the state pursuant to Code of Civil Procedure Section 1094.5 by filing such an action within 90 days following the date of the city manager's written notice.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)

The amount of any tax and penalty imposed by the provisions of this chapter and Chapter 5.08 is deemed a civil debt due 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 tax and penalties.

(Ord. No. 719, § 3(Exh. A), 6-27-2017)