San Bruno Municipal Code Ch. 3.08 General Provisions

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

(Prior code § 12-2.1; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. There are imposed upon all businesses in the city license taxes in the amounts set forth in Chapter 3.16 (Schedule of Taxes).

B. It is unlawful for any person, either for himself or herself or for any other person, to commence, transact or carry on any business in the city not excluded by this article, without first having procured a license from the city to do so, or without complying with any and all regulations contained in this article.

(Prior code § 12-2.2; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

No license issued under the provisions of this article shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any ordinance of the city.

(Prior code § 12-2.3; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

The payment of a license tax and the issuance of a license to any person by the city shall not entitle the licensee to carry on any business unless the licensee has complied with all the requirements of this code and all other applicable laws, nor to engage in or to carry on any business in any building or in any premises designated in such license if such building or premises are situated in an area or locality in which the conduct of such business is in violation of this code, or any ordinance of the city, or any other law.

(Prior code § 12-2.4; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

When any person shall by use of signs, circulars, cards, telephone book, or newspapers, advertise, hold out, or represent that he or she is in business in the city, for one transaction or more, or when any person holds an active license or permit issued by a governmental agency indicating that he or she is in business in the city, such facts shall be considered prima facie evidence that he or she is conducting a business in the city.

(Prior code § 12-2.5; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. It shall be the duty of the tax collector and his or her authorized deputies or assistants to enforce the provisions of this article. The chief of police shall render such assistance as the tax collector may require.

B. In the performance of his or her duties under this article, the tax collector and his or her authorized deputies and assistants may examine all places of business in the city to ascertain whether the provisions of this article have been complied with. They and any police officer shall be authorized to enter, free of charge, at any reasonable time, any place of business required to be licensed under this article and demand exhibition of its license certificate.

C. It is unlawful for any person having such license certificate in his or her possession or under his or her control to willfully fail to exhibit such certificate on demand of the tax collector, any authorized deputy or assistant of the tax collector, or any police officer.

(Prior code § 12-2.6; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. Separate licenses shall be obtained for each branch establishment or location of the business engaged in, as if each such branch establishment or location were a separate business.

B. Separate licenses shall be obtained for each separate type of business at the same location.

C. Each license shall authorize the licensee to engage only in the business licensed thereby at the location of in the manner designated in such license.

D. Warehouses, distributing plants and other locations which generate no additional gross receipts but are used in connection with and incidental to a business licensed under this article shall not be deemed to be separate places of business or branch establishments.

(Prior code § 12-2.7; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. Any person managing, carrying on, or conducting two or more separate businesses subject to the payment of a license tax under more than one classification in this article, whether or not at the same location or under the same management shall pay a separate license tax for each of said businesses.

B. The gross receipts derived from that portion of the two or more businesses which is subject to a license tax other than on the basis of gross receipts, shall be deducted from the total gross receipts in determining the annual gross receipts upon which the tax based upon gross receipts is predicated.

(Prior code § 12-2.8; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. Every person having a license under the provisions of this article and carrying on a business at a fixed place of business shall keep such license posted and exhibited while in force, in some conspicuous part of the place of business.

B. Every person having such a license and not having a fixed place of business shall carry such license with him or her at all times while carrying on the business for which the license was granted. If a vehicle is used in the conduct of the business, a windshield sticker shall be attached thereto as otherwise required by this article.

(Prior code § 12-2.9; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. Except as may be otherwise specifically provided in this article, the terms hereof shall not be deemed or construed to apply to any of the following persons:

1. Any public utility which pays to the city a tax under a franchise or similar agreement;

2. Insurance companies and associations to the extent that cities are precluded from levying license taxes under Article 13, Section 28 of the State Constitution;

3. Banks and financial corporations to the extent that cities are precluded from levying license taxes under Part 11 of Division 2 of the Revenue and Taxation Code;

4. Any person transacting or 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 prescribed in this article; and

5. To the extent exempted by federal or state law, including, but not limited to, California Business and Professions Code Section 16550.2 (Driver operating in multiple local jurisdictions).

B. The tax collector may require the filing of a verified statement from any person claiming to be excluded or exempt by the provisions of this section. Such statement shall set forth all facts upon which the exclusion or exemption is claimed.

(Prior code § 12-2.10; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. Charitable and Nonprofit Organizations and Events. The provisions of this article shall not require the payment of a license tax to conduct, manage, or carry on:

1. 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 profits not derived, either directly or indirectly, by any individual;

2. Any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the city, whenever the receipts of any such event are to be appropriated to any church or school or to any religious or benevolent purpose; or

3. Any entertainment, dance, concert, exhibition, or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association whenever the receipts of any such event are to be appropriated for the purpose and objects for which the organization or association was formed, and from which profit is not derived, either directly or indirectly, by any individual.

B. Disabled Persons. The provisions of this article shall not require the payment of a license tax by:

1. Any honorably discharged or relieved veteran of any of the armed forces of the United States who provides a certificate of disability from the Veteran's Administration, is physically unable to earn a livelihood by manual labor, is a voter or resident, respectively, of this state, and desires to hawk, peddle or vend goods, wares, and merchandise owned by him or her or to distribute circulars;

2. Any city employee who is injured during the course of the performance of his or her duties, and who becomes physically disabled as a result therefrom; provided, that such exemption shall first be approved by the city council.

C. Auctioneers. The provisions of this article shall not require the payment of a license tax by any real estate auctioneer whose business is limited exclusively to auctioning real estate, except if such auctioneer has a fixed place of business in the city.

D. Young Persons With Limited Revenues. The provisions of this article shall not require the payment of a license tax by any individual person of the age of sixteen years and under whose annual gross receipts from any and all businesses is five hundred dollars or less.

E. Highway Carriers. The provisions of this article shall not require the payment of a license tax for the operation of vehicles for the sole purpose of transportation of property for hire, where such activity is subject to the highway carriers uniform business license tax and defined as intercity transportation business pursuant to the Highway Carriers' Uniform Business License Tax Act; provided, however, that:

1. Persons who make deliveries of goods, wares, or merchandise, or other personal property on a basis other than for-hire shall not be entitled to such exemption in connection with such activities; and

2. Any person who conducts any business in the city other than as defined as intercity transportation business in said act shall be required to pay a business license tax as specified in this chapter.

F. Application for Exemption. Any person claiming an exemption pursuant to this section shall file a verified statement with the tax collector stating the facts upon which the exemption is claimed. The tax collector, upon a proper showing contained in the verified statement, shall issue a license to such person claiming exemption under this section without payment to the city of the license tax required by this article.

(Prior code § 12-2.11; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

The tax collector may revoke any exempt license granted pursuant to the provisions of this article upon information that the licensee is not entitled to the exemption. In such revocation the procedure to be followed and right of appeal and hearing shall be provided as is applicable to issuance or refusal to issue licenses, the amount of license tax due, or the classification of the business for purposes of calculating the license tax.

(Prior code § 12-2.12; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. No license tax authorized by this article shall be so applied as to occasion an undue burden upon interstate commerce.

B. If a licensee or applicant for a license believes that the license tax places an undue burden on such commerce, he or she may apply to the tax collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at or within six months after payment of the prescribed license tax.

C. The applicant shall, by affidavit and supporting testimony, show his or her 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.

D. The tax collector shall conduct an investigation. After obtaining the written approval of the city attorney, the tax collector shall within fifteen days after the applicant has submitted the necessary information fix the license tax for the applicant in an amount that is reasonable and nondiscriminatory. If the license tax has already been paid, the tax collector shall 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 shall be authorized to base the license tax upon a percentage of gross receipts or any other measure which will 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 article.

E. Should the tax collector determine the gross receipts measure of license tax to be the proper basis, he or she may require the applicant to submit, either at the time of termination of the applicant's business in the city or at the end of each three months, 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 quarter shall be required after licensee shall have paid an amount equal to the annual license tax as prescribed in this article.

(Prior code § 12-2.13; Ord. 1405 § 1, 1982; Ord. 1875 § 3, 2019)

A. Business Within and Outside of City—Apportionment.

1. Each person who transacts and carries on a business in the city and maintains fixed places of business both within and outside the city, and who is subjected to a business license tax based upon gross receipts pursuant to this article shall apportion that portion of his or her gross receipts derived from business transacted or carried on within the city as the basis for liability for business license tax pursuant to this article.

2. When such apportionment cannot be accurately made between cities wherein business is transacted by accounting methods normally or customarily used by the taxpayer, the taxpayer shall apportion as that portion of the gross receipts derived from business transacted or carried on within the city that proportion of his or her gross receipts which the cost of doing business within the city bears to the total costs of doing business both within and outside the city.

B. Business Without Fixed Place of Business in City—Apportionment.

1. Each person who transacts and calls on a business in the city who does not maintain a fixed place of business in the city and is subject to a business license tax based upon gross receipts pursuant to this article shall apportion his or her gross receipts in the same manner as provided in subsection A of this section for persons maintaining fixed places of business within and outside the city.

2. Each person to whom this subsection applies shall be allowed as a credit against the business tax otherwise due the city, an amount equal to the amount of business tax or business license tax paid to another city for the same period to the extent that such tax is attributable to gross receipts derived from business transacted and carried on in the city; provided, however, that no credit shall be allowed in excess of the amount of business license tax which would otherwise be due to the city.

C. Business With Fixed Place of Business Only Within City Doing Business Outside City—Credit For Taxes Paid.

1. Each person who transacts and carries on a business at a fixed place of business within the city and who transacts and carries on such an activity outside the city without a fixed place of business shall compute his or her tax liability pursuant to this article as if his or her entire business were conducted and transacted within the city.

2. Such person shall be allowed as a credit against the business license tax otherwise due to the city an amount equal to the amount of business tax or business license tax paid to another city for the same period on account of business carried out and transacted in such city, but no credit shall be allowed in excess of the amount of business license tax which would otherwise be due to the city.

3. This subsection shall not apply to any business licensed pursuant to Section 3.16.015.

D. Flat Tax Not Subject to Apportionment. The apportionment provisions of this section shall not apply to any business license tax to the extent payable on a flat rate basis.

(Prior code § 12-2.14; Ord. 1405 § 1, 1982; Ord. 1420 § 2, 1983; Ord. 1875 § 3, 2019)