San Clemente Municipal Code Art. I Flat Rate and Gross Receipts Method of Payment

A. Filing of Statement. .....Except as otherwise provided in this section, in all cases where the amount of business license tax to be paid by any person is based upon the amount of gross receipts, such person shall, before obtaining a business license, file with the License Collector a written statement, on forms to be provided by the License Collector, showing the particular license bracket within which his gross receipts would fall. Such applicant for a business license shall base his estimate on the total amount of gross receipts for his business during the calendar year next preceding the period for which the license is sought.

B. Effect of Statement. .....No such statement shall be conclusive upon the City, or upon any officers thereof, as to matters therein set forth; and the same shall not prejudice the right of the City to recover any amount that may be ascertained to be due from such person in addition to the amount shown by such statement to be due, in case such statement is found to be incorrect.

C. Failure to Make Statement. .....If any person required to make such statement fails to do so, such person shall be required to pay a business license tax at the maximum rate prescribed in this chapter for the business carried on by such person, and shall be guilty of a violation of this chapter.

(Prior code § 8-36)

A. Filing of First Statement. .....A person engaged in a newly established business, who under the provisions of this chapter is required to pay a business license tax based upon gross receipts, shall file with the License Collector a written statement (forms to be provided by the License Collector) certifying as to the total gross receipts anticipated during the current license period, or portion thereof.

1. An estimate will be made of the gross receipts anticipated during the term of the license.

2. Such estimate will be projected on the basis of a full year and the license tax determined by such estimate.

3. The actual amount of license tax to be paid to the City shall be one-fourth (¼) of such annual license tax for each quarter and fraction of a quarter remaining during the period for which the new license is issued, but in no case shall the amount be less than ten dollars ($10.00).

B. New Statement After Six Months Or at End of License Period. .....Following the termination of six (6) months of business activity or the termination of the current license period, whichever comes first, such person may be required to file with the License Collector a new statement showing the actual total amount of gross receipts of such business during the first six (6) months or the months immediately preceding the expiration of the license period. In order to determine such person's proper business license tax for the first period he or she is engaged in his or her newly established business, the License Collector shall take the amount of gross receipts so shown in such statement, or such other amount as he or she shall determine to be the correct amount and shall divide the gross receipts by the number of days in which such person actually engaged in business, and the results obtained shall be multiplied by three hundred sixty-five (365), to determine the estimated gross receipts on an annual basis. The amount so determined shall be applied to the schedules provided in this chapter for such business, and compared with the original business license tax first applied, based on the applicants first estimate of gross receipts. If it is found that the original (estimated) tax was less than the actual amount due, a supplemental business license shall be issued requiring the payment of the additional amount so due. If it is found that the original (estimated) tax was higher than the actual amount due, proper credit shall be given on the next year's business license.

(Prior code § 8-37)

A. Retail, Wholesale, Manufacturing and Telephone Services. .....Every person having an established place of business within the City and who is engaged in manufacturing and selling any goods, wares or merchandise at retail or wholesale, or selling any goods, wares or merchandise at retail or wholesale, or providing telephone services, and not otherwise specifically taxed by other provisions of this chapter, shall pay an annual business license tax based upon the annual gross sales or receipts of such business in accordance with fee schedule Code 01 as follows:

Fee Schedule Code 01

Retail, Wholesale, Manufacturing and Telephone Services

0 to $25,000.00 .....$ 50.00

Over $25,000.00, under 100,000.00 .....65.00

Over $100,000.00, under 200,000.00 .....80.00

Over $200,000.00, under 300,000.00 .....125.00

Over $300,000.00, under 400,000.00 .....150.00

Over $400,000.00, under 500,000.00 .....175.00

Over $500,000.00, under 1,000,000.00 .....200.00

Over $1,000,000.00, under 2,000,000.00 .....250.00

Over $2,000,000.00, under 3,000,000.00 .....300.00

Each additional $1,000,000.00 or fraction thereof, add .....50.00

1. For the purpose of this section, a wholesale sale or sale at wholesale means a sale of goods, wares or merchandise for the purpose of resale in the regular course of business. A retail sale or sale at retail means a sale of goods, wares or merchandise for any purpose other than resale in the regular course of business.

2. Whenever a person engages at the same location in two (2) or more businesses involving retailing, wholesaling or manufacturing, one (1) business license shall be issued for all such businesses and the tax shall be measured by the sum of the gross receipts of all such businesses so conducted.

B. Professions and Occupations. .....Every person having an established place of business within the City and who is engaged in any trade, calling, occupation, vocation, service, profession or other means of livelihood, not as an employee of another, and not specifically taxed by other provisions of this chapter, shall pay an annual business license tax based upon the annual gross receipts of such business as follows:

Fee Schedule Code 02

Professions and Occupations

0 to $20,000.00 .....$50.00

Over $20,000.00, under 40,000.00 .....65.00

Over $40,000.00, under 60,000.00 .....80.00

Over $60,000.00, under 100,000.00 .....95.00

Each additional $25,000.00 or fraction thereof, add .....25.00

1. A person engaged in more than one (1) trade, calling, occupation, profession or other means of livelihood embraced within this subsection, shall consolidate all gross receipts and shall be issued one (1) business license covering all such activities. Any person engaged in any activities embraced within this subsection, in addition to activities covered by any other paragraph or section of this chapter, shall obtain separate business licenses for the activities covered by such other paragraphs and sections.

C. Branch and Administrative Offices.

1. A business established outside of the City, but maintaining an office in the City, or doing business within the City through an agency, broker, or employee, shall report as gross receipts, its total sales or receipts attributable to the local office, agent, broker or employee. In determining the amount of license tax for such businesses one of the aforementioned fee schedules shall be applied.

2. In the event separate sales or receipt records are not maintained for said local office, agent, broker or employee, or the business of said local office, agent, broker or employee within the City is that of performing essentially administrative functions in connection with sales or services performed or rendered elsewhere; the business tax shall be based on an amount equivalent to the volume of business attributable to such local office, agent, broker or employee, which volume of business shall be determined by adding the total cost of maintaining said local office, agent, broker or employee. Said total cost of maintaining said local office, agent, broker or employee shall include, but not be limited to, wages, salaries, commissions, bonuses, office rent, telephone, postage, utilities, janitorial, and other expenses allocated for maintenance of said local office, agent, broker or employee. In determining the amount of license tax for businesses as described in this paragraph, fee schedule Code 01 shall be applied.

(Prior code § 8-38)

(Ord. No. 1529, § 16, 12-7-2010)

A. Named Businesses and Occupations. .....The provisions of this chapter notwithstanding, the following named businesses or occupations shall pay an annual (unless indicated otherwise) business license tax in the respective amount specified below in this section:

Apartments, hotels, motels, rooming houses, auto courts, rooms, bungalow courts, buildings having rental spaces:

3 units or spaces .....$25.00 ;b1;plus $2.00 per space over 3.

Auctioneer (see Chapter 5.16)

Artist exhibit (per artist per day) .....10.00

Auction sales (Must show proof that the auctioneer is licensed by the California Auction Commission) .....50.00

Billiard and poolroom.

First table .....25.00

Each additional table .....10.00

Boarding houses.

Serving 3 to 15 persons .....30.00

Serving over 15 persons .....50.00

Boxing, wrestling, sparring exhibitions, per day .....25.00

Christmas tree lot (per quarter) .....20.00

Carnival/circus (per day) .....200.00

Contractors, all

Annually .....100.00

Or per quarter .....35.00

All other persons, not licensed by the state, but who bid or submit an estimate for furnishing any kind of work or materials, or offer to work on a time or materials, or both, basis in the City, connected with the construction, alteration, repair, adding to or improvement of any building, structure, highway, road, excavation or other structural project, development or improvement, or any person who works by the hour, day or other unit of time connected with the aforementioned type of work, from whose wages proper federal income taxes, social security and unemployment deductions are not being withheld, shall pay the same license tax as the aforementioned state licensed contractors in their particular classification.

Dance hall, public .....$200.00

Dance, public (per day) .....30.00

Day and/or night care homes .....50.00

Drive-in theater .....100.00

Finance and loan companies or loan brokers, industrial loan, personal loan, which loans are repaid on monthly installment .....150.00

Itinerant vendor (per vendor per day) .....10.00

Motion picture and television production (per day) .....50.00

Motion picture theater .....100.00

Newspaper and magazine agents .....30.00

Newspaper, local (for advertising business only) .....50.00

Owner-builder (no proration) .....150.00

Pawnbroker .....100.00

Recreation and amusement center .....100.00

Street ballyhoo or advertising (per day) (By means of any vehicle or airplane containing amplifiers, phonographs, loudspeakers, music rolls, microphones, broadcasting, radio, public address system or music of any description, operating upon the public streets or public grounds of the City.) .....25.00

Taxicab (see Chapter 5.40)

Theatrical road shows and athletic or musical performances, vaudeville, or other transient entertainment except when given in a licensed theater or motion picture house (per day) .....50.00

Trailer or mobile home park (per each trailer space) .....5.00

Any other business not classified elsewhere in this chapter .....100.00

B. Persons Outside City.

1. Every person who shall conduct an established business, profession, trade or calling outside the City and who solicits, canvasses or advertises within the City, and delivers his or her product or performs a service within the City, shall, except as otherwise provided in this chapter, pay a business license tax pursuant to fee schedule Code 01 or 02.

2. Solicitors, peddlers, canvassers, demonstrators or sales persons' activities shall be confined to business establishments within the City; except, such persons may call upon private residences unless such a private residence shall have posted a sign which substantively reads as follows: "No Soliciting."

3. All solicitors, canvassers or peddlers must first obtain a solicitor's business license from the License Collector. A photograph of each individual soliciting is required so it can be attached to the license for identification. If the applicant cannot provide a photograph, the License Collector will do so for a fee of two dollars ($2.00).

C. Businesses With On or Off Sale Liquor. .....Your business license tax cannot be less than the flat rate of forty dollars ($40.00) for on or off sale liquor but will be more if your total gross receipts exceed the sixty-five thousand dollar ($65,000.00) tax bracket.

Gross Receipts for a 12-Month Period or Estimate

(Ord. 1145 § 2, 1994: prior code § 8-39)

(Ord. No. 1550, § 1, 4-17-2012; Ord. No. 1554, § 4, 7-17-2012)

A. Retail Delivery. .....Every person not having a fixed place of business within the City, and who carries on, conducts or operates any of the following described retail businesses or occupations within the City through motor vehicles or horse-drawn vehicles shall pay an annual business license tax for the first vehicle in the amount specified as follows:

B. Wholesale Delivery. Every person not having a fixed place of business in the City, and who carries on or conducts any business of selling or delivering goods, wares or merchandise at wholesale and any person supplying linen and towel or uniform service to any person in the City shall pay an annual business license tax based on the number of vehicles used for delivery purpose in the City in the amount specified as follows:

C. Pick Up. Every person not having a fixed place of business in the City who carries on or conducts any business of picking up goods, wares, merchandise or such items as used batteries, drain oil, fats and rendering products, within the City, through motor vehicles or horse-drawn vehicles, shall pay an annual business license tax in the amount specified as follows:

D. Vehicle License Plate or Decal. Every vehicle for which a license is required shall be issued a metal license plate or decal and such plate or decal shall be displayed on the vehicle in a conspicuous place. An additional license plate or decal may be issued by the License Collector to replace any plate or decal which has been lost or destroyed, upon the applicant therefor filing an affidavit attesting to such fact, and at the time of filing such affidavit paying to the License Collector a tax of two dollars ($2.00) therefor.

(Prior code § 8-40)