San Clemente Municipal Code Art. II Exemptions

Nothing contained in this chapter shall be deemed or construed as applying to any person managing or carrying on, or engaging in, any business or occupation exempt from taxation by municipal corporations under the laws and constitution of the state, and the laws and constitution of the United States.

(Prior code § 8-24)

A. Affidavit. .....No business license required by the City for the practice, transaction or carrying on of any profession, trade, calling, occupation or business shall be presumed to apply to any part of such practice, transaction or carrying on of any profession, trade, calling, occupation or business which, pursuant to decisional laws of the United States interpreting the ability to impose a business license tax on a business involved in whole or in part in interstate commerce, is exempt from the obligation to pay a business license tax due to its involvement in interstate commerce, or in which such practice, transaction or carrying on of any profession, trade, calling, occupation or business is conducted as an agency or department of the United States government for which such government has failed to make provision allowing states and municipalities to so tax. In order that necessary information may be available to determine whether it is entitled to exemption on grounds of being engaged in interstate commerce, such person shall file with the License Collector an affidavit of exemption, upon a form to be furnished by the License Collector, in which the following information shall be disclosed:

The name and location of the company or firm for which the orders are to be solicited or secured; the name of the nearest local or state manager, if any, and his address; the kind of goods, wares or merchandise to be delivered; the place from which the same are to be shipped or forwarded; the method of soliciting or taking orders; the location of any warehouse, factory or plant within the state; the method of delivery; the name and location of the residence of the applicant; a copy of the order blank, contract form or other papers used by the applicant in taking orders; a late photograph of the applicant; the extent to which the transaction in interstate commerce has been subjected to any tax in any other jurisdiction, and any other facts necessary to establish such claim of exemption.

B. Exempt License Permit. .....If the License Collector is satisfied from the foregoing that the applicant is entitled to exemption under Section 5.04.250, he or she shall issue an exempt business license permit.

C. Restrictions as to Use of Exempted License Permits. .....The business solicitation activities of such persons shall be confined to business establishments solely within the City; except that such persons may call upon private residences between sunrise and sunset, unless such private residences have posted a sign which reads, in substance, "No Soliciting."

(Ord. 1152 § 1, 1995; prior code § 8-25)

(Ord. No. 1529, § 12, 12-7-2010)

A. .....Every honorably discharged or honorably released soldier, sailor or marine of the United States who has served in World War II, the Korean Campaign, Vietnam, Operation Desert Shield, Operation Desert Storm, or the Afghanistan Conflict, who is physically unable to obtain a livelihood by manual labor, and who shall be a qualified elector of the state, shall have the right to distribute circulars and to hawk, peddle and vend any goods, wares or merchandise owned by him or her, except spirituous, malt, vinous or other intoxicating liquor, without payment of any business license tax whatsoever; provided, that no such exempt business license shall be issued without first being approved by the City Council, and before any such license shall be approved by the City Council for issuance by the License Collector, the following requirements shall be complied with by every applicant for such exempt license:

1. Every applicant shall furnish a certificate of physical disability executed by a qualified surgeon of the U.S. Navy, Air Force, Coast Guard, Army or Marines, and a certificate of honorable discharge from the U.S. Navy, Air Force, Army or Marines and a written recommendation from a representative of the local post of the American Legion and the Veterans of Foreign Wars or the Veterans Service Officer of the county.

2. Every applicant shall furnish two (2) identification photographs, one (1) to be attached to the License issued to the applicant and the other to be attached to the copy retained by the License Collector. The applicant shall also sign both copies of such License at the time of the issuance thereof.

3. Every applicant shall be fingerprinted by the police department for identity purposes before any License is issued.

B. .....An exempt business license under the provisions of this section, when issued, is subject to the following conditions:

1. It is not transferable and is for the exclusive use of the Licensee named.

2. Applicant's identification photograph shall be attached to the License at all times, and failure to comply herewith is grounds for revocation of the License and for refusing its renewal and the issuance of a new License thereafter.

3. Should a business license be found in the possession of one (1) other than the Licensee named, it shall be surrendered up to the License Collector and canceled, and neither the Licensee named nor the holder thereof shall thereafter be entitled to hold a business license under the provisions of this section.

4. The Licensee named shall identify itself by signature whenever required to do so by a police officer or License Collector of the City.

5. Whenever the Licensee uses any wagon, cart, dray, basket or other vehicle or receptacle for the vending of any such goods, wares or merchandise, then the business license shall be carried in a license holder attached to such vehicle or receptacle, and any business license issued under the provisions of this section shall expire thirty (30) days from and after the date of issuance and a new business license thereafter shall be issued pursuant to the provisions of this section.

(Prior code § 8-26)

(Ord. No. 1529, § 13, 12-7-2010)

Any City employee who is injured during the course of, and in the performance of, his or her duties, and who becomes physically disabled as a result therefrom, may be allowed to conduct any lawful business within the City without payment of any business license tax whatsoever; provided, that such exempt business license shall first be approved by the City Manager.

(Prior code § 8-27)

(Ord. No. 1529, § 14, 12-7-2010)

The provisions of this chapter shall not be deemed or construed to require the payment of a business license tax by any person peddling exclusively any fruits or vegetables or any other products raised upon his or her lands; provided, that such person shall furnish conclusive proof to the License Collector that such products were raised by the person upon the person's lands before the issuance of a license exempt from the tax, and any person so peddling shall carry such business license with them.

(Prior code § 8-28)

The provisions of this chapter shall not be deemed or construed to require the payment of a business license tax by a commercial traveler or drummer whose business is limited to taking orders for future delivery of goods, wares and merchandise sold in this state at wholesale, and who deals directly with established places of business in the City.

(Prior code § 8-29)

The payment of a business license tax shall not be required by a natural person, seventeen (17) years of age or under, solely because he or she engages in the business of lawn mowing, yard, or custodial maintenance work; provided he or she has no employees working for him or her.

(Prior code § 8-33)

A. Nonprofit Activity. .....The provisions of this chapter shall not be deemed or construed to apply to a nonprofit organization that is recognized as exempt from federal taxation under Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code. To be exempt under this subchapter, a nonprofit organization must provide the License Collector with sufficient proof that the entity is recognized as exempt from federal taxation under Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code.

B. Entertainment Proceeds Retained Locally. .....No business license tax shall be required for the conducting of any entertainment, concert, rummage sale, exhibition or lecture on scientific, historical, literary or religious or moral subjects whenever the receipts of such entertainment, concert, rummage sale, exhibition or lecture are to be appropriated to any school, or to any religious or benevolent purpose within the City.

C. Receipts to Organization. .....No business license tax shall be required for the conducting of any entertainment, dance concert, rummage sale, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association, whenever the receipts of any such entertainment, dance, concert, rummage sale, exhibition or lecture are to be appropriated for the purpose and objects for which such association or organization was formed and from which profit is not derived, either directly or indirectly, by any person.

D. Permit. .....Nothing contained in this section shall be deemed or construed to exempt any such association or organization from complying with the provisions of Section 5.04.320 requiring such association or organization to obtain an exempt license permit to conduct, manage or carry on any entertainment, concert, rummage sale, exhibition, lecture, dance, solicitation or any business activity.

(Prior code § 8-34)

(Ord. No. 1529, § 15, 12-7-2010)

A. Soliciting. .....No person without first having applied for and received an exempt license permit from the License Collector as provided in this chapter, shall make any appeal to the public for a charity or charitable or religious purpose, either by soliciting or collecting gifts, contributions, donations or subscriptions or by promoting or conducting any sale, bazaar or exhibition or by any other means whatsoever at any place or to any person in the City.

B. Selling or Soliciting Tickets. .....No person without first having applied for and received an exempt license permit from the License Collector as provided in this chapter, shall sell or solicit for or on behalf of any person, firm, association or corporation, by telephone or otherwise, any ticket or right to admission to any amusement, show, entertainment, lecture or other enterprise not regularly carried on for private profit or gain by such person, firm, association or corporation at a fixed place of business in the City, or solicit any contribution or gift in connection with any such amusement, show, entertainment, lecture or other enterprise.

C. Application for Exempt License Permit. .....Any person desiring to do any of the acts mentioned in subsections A and B of this section, shall provide a certified copy of its certificate of incorporation or constitution and by-laws and file an application with the License Collector. Such application shall set forth the following information:

1. Name and address of the applicant, and whether the applicant is affiliated with or working for any other organization than the one (1) for which the solicitation is intended;

2. Location of national, state and local headquarters, if any;

3. The names and addresses of all persons directly interested in or who in any manner will be engaged in the work;

4. The exact purpose for which the proceeds of the solicitation, sale, bazaar, exhibition, promotion, amusement, show, lecture, entertainment or other enterprise or any part thereof, are to be used, including the manner in which and the amount of any compensation intended to be paid to any person, firm, association or corporation out of such proceeds;

5. The total amount which is sought to be raised;

6. The bank or place where all or any part of the funds raised by such activity will be placed on deposit or invested;

7. What records of funds received will be kept, and where such records will be open to the public;

8. Whether the uniform or identification worn or carried resembles that of any other group in this area conducting a similar type of activity;

9. Such other information in respect to the character and past and proposed activity of the applicant and the parties directly interested in or engaged in the work as may be necessary to enable the License Collector to make a full and complete investigation;

10. Date of commencement and termination of activity.

D. Investigation. .....The License Collector upon receipt of an application complying with the requirements of subsection C of this section and containing the information required thereby may, if he or she deems it necessary, refer the application to the Chief of Police for an investigative report.

E. Granting or Denying of Permit.

1. Should the License Collector, after his or her investigation or after receipt of an investigative report from the Chief of Police of the applicant and of the representations contained in the application, be of the opinion that the applicant has not stated true facts in his or her application, or that if an exempt license permit should be granted to the applicant a fraud in all probability would be perpetrated upon the public, the License Collector may refuse to issue an exempt license permit to such applicant.

2. Should the License Collector be satisfied that the application is truthful, that the applicant is acting in good faith and that in all probability a fraud would not be perpetrated upon the public, an exempt license permit shall be issued to such applicant for such period of time as the applicant may request. Provided, however, that no permit shall be valid for a period of more than six (6) months from the date of issuance except as provided in subsection I of this section, and provided further that as a condition to granting such permit the License Collector may require the applicant to file a bond in the sum of one thousand dollars ($1,000.00) in a form approved by the City Attorney and conditioned that if the principal thereof shall fail to devote, pay or use the entire proceeds or the percentage thereof specified in the application, derived from the activity mentioned in the application to the person, firm, association or corporation for or on whose account or benefit such activity was conducted or carried on, then the surety will pay the same to such person, firm, association or corporation, to the amount of such bond.

F. Revocation of Permit. .....Any exempt license permit issued may be revoked if the permittee is not operating in accordance with the application pursuant to which such exempt license permit was issued or if further activity of such permittee would operate to defraud the public. Such revocation may be made by a registered letter signed by the License Collector and directed to the address of the applicant as stated upon the application pursuant to which the exempt license permit was issued. Such exempt license permit shall become null and void on and after the third day from the date after which such letter is deposited in the United States Post Office in the City of San Clemente.

G. Solicitation by Mail. .....No exempt license permit shall be required for any solicitation through the United States mail.

H. Telephone Solicitation. .....No person shall use or cause to be used a telephone to accomplish any of the acts set forth in subsection A or B of this section unless such person is a bona fide member of an organization in whose name an exempt license permit has been issued pursuant to the provisions of this section and provided further that such person making such solicitation does not receive any compensation therefor.

I. Exception. .....The License Collector may waive the provisions of this section requiring application and issuance of an exempt license permit for any religious, charitable, fraternal or service organization, provided that:

1. Such organization has maintained headquarters or a place of worship within the City for a period of at least three (3) years next preceding the date of adoption of this chapter, and has been previously cleared for solicitation and fund raising activities within the City;

2. Such organization, if headquartered or located outside the City, has been previously cleared for solicitation and fund-raising activities within the City at least five (5) years next preceding the date of adoption of this chapter.

(Prior code § 8-35)

A. .....None of the taxes provided by this title shall be applied so as to violate the equal protection and due process clauses of the Constitution of the State of California.

B. .....If any case where a tax provided by this title is believed by a Licensee to be violative of such constitutional clauses, the Licensee may apply to the License Collector for an adjustment of the tax. It shall be the Licensee's obligation to request in writing for an adjustment within one-year after the date of payment of the prescribed tax. If the Licensee does not request in writing within one (1) year from the date of payment, it shall be conclusively deemed to have waived any adjustment for that year.

C. .....The Licensee shall, by sworn statement and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the License Collector may deem necessary in order to determine the extent of the proper tax. The License Collector shall conduct an investigation and fix the tax in an amount that is reasonable and nondiscriminatory, or if the tax has already been paid, shall order a refund of the amount over and above the tax so fixed. In fixing the tax, the License Collector shall have the power to base the tax upon a percentage of gross receipts or any other measure which will assure that the tax assessed shall be uniform with that of businesses of like nature.

(Ord. No. 1529, § 17, 12-7-2010)