San Joaquin Municipal Code Ch. 110 Business Licenses Generally

(A) Provisions of this chapter impose a business license tax to raise revenue for the city and not for the purpose of regulation of those taxed.

(B) The scope and construction of this chapter are subject to the exemptions and definitions hereinafter set forth.

(C) Whenever the word PERSON or PARTY is used in this chapter, the same is intended and shall be construed to mean and include a sole proprietorship, a partnership, a corporation, a club, an unincorporated association or organization and a joint venture carrying on the business for which a license is imposed or must be procured, and when the terms in this chapter designate the principals, the same shall be construed to mean the clerks, the agents, servants, representatives or employees of the principal.

(1994 Code, § 5.04.010) (Ord. 78-103, passed - -1978)

For the purpose of this chapter, the following definitions apply unless the context clearly indicates or requires a different meaning.

AUCTIONEER, ITINERANT. An auctioneer who is not the owner or who has no lease on the place of business where he or she conducts his or her auction, or an auctioneer who has a lease on a place of business in the city for the conduct of his or her auction for a period of less than three months.

BANKRUPT SALE. A sale for the benefit of creditors, either directly or indirectly, or a sale advertised as a bankrupt sale or sale for the benefit of creditors.

BUSINESS. Any trade, calling, profession or occupation carried on for profit or livelihood.

CITY. The City of San Joaquin.

CLOSE OUT SALE. A sale advertised as a close-out sale where the person conducting the sale has not conducted the business at a fixed place of business for at least one year.

CONTRACTOR. A person defined as a contractor by Cal. Business and Professions Code § 7026, or as a contractor by the provisions of Cal. Business and Professions Code, Chapter 9, Division 3, Article 2.

DECLARATION. A written statement wherein declarant verifies the truth of his or her statement under penalty of perjury.

EMPLOYEE. All persons engaged in the operation or conduct of any business, whether as owner, any member of the owner's family, partner, agent, manager, solicitor and any and ail persons employed or working in the business.

FINANCING. The business of loaning money, advancing credit or loaning credit, whether security of any kind is taken for the loan or advance or not, or purchasing or discounting of any obligation of money due or to become due, or any evidence of any obligation secured, guaranteed or not; but does not include or apply to the conduct of a banking business under the laws of the state or of the United States, or to the business of a pawn broker or a business of real estate broker when otherwise subject to other provisions of this chapter.

FIRE SALE. The sale of goods or merchandise salvaged, or claimed to have been salvaged, from a fire, wreck or other calamity, or a sale of goods advertised as a fire or wreck sale.

FIXED PLACE OF BUSINESS. A permanent store, office or other place where business is legally and regularly transacted from month to month in the manner as business of that nature is generally or customarily carried on and conducted and when the circumstances show an intention to become an established, fixed and continuous part of the regular and legitimate business life of the city and not otherwise, and not in any lodging room, or place where temporary desk room is used, or where any temporary expedient is resorted to for temporary purposes, as distinguished from a continuous or permanent business in the city. In cases where continuity or permanency is unclear or questionable the facts must be shown by the proof of a bona fide lease or rental agreement to the premises where the business is to be conducted, the lease or rental agreement to be for a minimum period of not less than six months.

FOOD DISTRIBUTOR. Any person without a fixed place of business in the city who distributes food products directly to customers at retail, or to food outlets at wholesale for resale, including the business of selling farm products at wholesale provided, however, nothing contained in this chapter shall require a business license from a farmer making an occasional sale of products grown or produced by him or her to a local merchant unless the total monthly gross sales exceed $250.

GOODS, WARES, MATERIALS or MERCHANDISE. Every commodity or article of trade capable of being bought, sold or exchanged, and whether of nominal value or otherwise.

HOME OCCUPATIONS. Any activity legally conduced or carried on for profit in, from or out of the residence of the person engaged in the activity, wherein the residence is not made a regular, permanent place of business thereto, and the activity is supplemental to another regular source of income and/or is incidental to the primary residential use of the property.

ITINERANT VENDOR or ITINERANT MERCHANT. Solicitors, peddlers, hawkers, transient vendors and every person not having a fixed or permanent place of business who, either as principal or agent engaged in a temporary or transient business in the city, sells or offers for sale, or barters or takes orders for goods, wares or merchandise or any other thing of value, with the intention of conducting the business for a period of not less than six months and who for the purposes of the business hires, leases or occupies any room, doorway, vacant lot, building or other place, for the exhibition for sale of goods, wares, merchandise or other thing of value. If any place, occupied or used for the business, is rented or leased for a period of not less than six months, the fact shall be presumptive evidence that the business carried on there is a transient business; and any person so engaged shall not be relieved of the provisions of this chapter or from payment of the license taxes herein provided for the business by reason of the temporary association with any local dealer, trader merchant or auctioneer. Not included as ITINERANT VENDORS or ITINERANT MERCHANTS are solicitors of religious publications, newspapers or periodicals, or producers who furnish directly and deliver any poultry, eggs, butter, fruit, vegetables or meat, being the produce of his or hers garden, farm or dairy to any person in the city; providing that, the term DAIRY, as used herein, shall mean the keeping of two or less cows or two or less goats.

JOBBING BUSINESS. Every business conducted solely for the purpose of selling goods, wares or merchandise in job lots to wholesale merchants from resale to the trade by the wholesale merchants.

JUNK COLLECTOR. Any person engaged in or carrying on the business of collecting, buying or selling any old rags, sacks, bottles, cans, papers, metal or other pieces of junk.

MANUFACTURER. One engaged in making materials, raw or partly finished, into wares suitable for use.

RETAIL BUSINESS. Every business conducted for the purpose of selling or offering for sale any goods, wares or merchandise, other than as part of a "wholesale business" or "jobbing business", as elsewhere defined herein.

SALE. 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 for security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplations of law.

SOLICITOR. A person taking orders for any photographs, goods, wares or merchandise or taking pictures and not having a regular place of business in the city or who is not an agent or representative of a person having a regularly established place of business in the city.

VEHICLE. Every device in, upon or by which any person or property is or may be transported or drawn upon a public street or highway, except devices moved by human power or used exclusively upon stationary rails or tracks.

WHOLESALER or WHOLESALE DEALER. One who sells goods, wares or merchandise exclusively to retailers for resale at retail to the trade by the retailers; provided, however, that, any article sold to a customer directly shall be classified as a retail sale.

WRECK SALE. The same as FIRE SALE.

(1994 Code, § 5.04.020)

(A) Constitutional or statutory exemptions. This chapter shall not be construed to require any person to obtain a license prior to doing business within the city if the requirement conflicts with any applicable law of the United States or of the state.

(B) Charitable and nonprofit exemptions. The provisions of this chapter shall not be deemed or construed to require the payment of a license fee to conduct, manage or carry on any business from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes from which profit is not derived, either directly or indirectly, by any person; nor shall any license be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects with the city whenever the receipts of any entertainment, concert, exhibition or lecture are to be appropriated to any church or school or to any religious or benevolent purpose; nor shall any license fee be required for conducting 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 the entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objects for which the association or organization was formed, and from which profit is not derived, either indirectly or indirectly, by any person; provided however, that nothing contained in this section shall be deemed to exempt the organization, institution or association from complying with the provisions of any law or ordinance requiring a permit from the city from the City Council or from the proper board, commission or office to conduct, manage or carry on any business.

(C) Gratuitous licenses. Gratuitous licenses shall be issued by the City Clerk when ordered by the City Council in the same manner as other licenses are issued by them subject to the conditions of this section, and as follows:

(1) To producers, to sell the product as are raised and cultivated by them;

(2) To persons, who by infirmities of age. loss of limbs, or total disabling causes, arc incapacitated from earning a living by physical labor, to sell goods at retail except spirituous, malt, vinous or other intoxicating liquor; and

(3) To any person who, upon a showing of good cause therefor is found by the City Council in the interests of justice and fairness to merit exception from any provision of this chapter.

(D) Interstate commerce.

(1) None of the license taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce.

(2) In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commence, the person may file with the City Clerk a petition for an adjustment of the tax. The 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 this method of business and the gross volume or estimated gross volume of business and the other information as the collector may deem necessary in order to determine the extent, if any, of the undue burden or violation.

(3) 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 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 chapter.

(4) Should the 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 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 shall be required after the licensee shall have paid an amount equal to the annual license tax as prescribed in this chapter.

(E) Claims for exemption.

(1) Any person claiming an exemption pursuant to this section shall file with the City Clerk a written verified, signed statement of the facts upon which the exemption is claimed.

(2) The action of the City Council shall be endorsed upon the back of the license so issued and signed by the Clerk of the Council.

(3) The City Clerk shall enter the endorsement in the books kept by him or her. No license shall be in force until the entry is made.

(4) All licenses granted by the City Council under this section shall expire at the end of the term for which they are issued; provided that, the City Council may at any time revoke the same, and the revocation must be entered on the license book or the record of the City Clerk upon due notice thereof.

(5) No gratuitous licenses are, or shall be, assignable or transferable and the fact that a person may come within a class that may entitle him or her to have gratuitous license issued to him or her, shall not permit the person to do business without the license. A license must be paid for, unless the City Council vote to issue the same gratuitously.

(6) The City Council may, at any time, conduct a hearing on and consider whether the licensee has ceased to be entitled to the exemption provided in this chapter by reason of change of circumstances, or whether the licensee was not entitled to the exemption, and for the purpose shall fix a time and place for hearing the matter. Notice of hearing shall be given, and the hearing shall be conducted and the matter determined substantially in the manner provided in the case of hearing and appeal of rates and classification.

(7) The decision of the Council in the case shall be immediately effective.

(1994 Code, § 5.04.030)

(A) It is unlawful and a misdemeanor for any person, either for himself or herself or any other person, or for any body corporate, or as an officer of any corporation, or otherwise, to commence or carry on any business specified in this chapter in the city without first having procured a license from the city to do so, or without complying with any and all provisions of this chapter.

(B) Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any other license fee imposed by the city for the privilege of doing the business and shall remain subject to the provisions of all other ordinances.

(C) The payment of a license tax required by the provisions of this chapter and its acceptance by the city and the issuance of a license to any person shall not entitle the holder thereof to carry on any business in or on any building or premises designated in the license in the event that the building or premises are situated in a locality in which the conduct of the business is in violation of any law.

(D) It is declared to be the intentions of the City Council to make the provisions of this chapter apply to all businesses, trades, professions and callings now actually in existence, or at present being operated, and to all which may hereafter be commenced within the city or over which the city may exercise a proper jurisdiction for licensing purposes; and a person shall have been deemed to have commenced the operation of any business and to be liable for the payment of the license fee by any one or more transactions within the city.

(1994 Code, § 5.04.040) Penalty, see § 10.99

(A) 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 the license.

(B) A separate license must be obtained for each branch establishment or location of the business transacted and carried on and 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 the license; provided that, warehouses or distribution plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments.

(C) Where a person conducts several types of business under identical ownership, business name and management at a single location, he or she shall obtain a separate license for each separate type of business conducted by him or her at the location.

(1994 Code, § 5.04.050)

(A) It is the Clerk's duty to prepare and issue a license under this chapter for every person liable to pay a license tax hereunder, and to state in each license the amount thereof, the period of time covered thereby, the name of the person to whom issued, the business licensed, and the location or place where the business is to be carried on. It shall further be the duty of the City Clerk to see that all new businesses are licensed and that all changes in location and status are recorded.

(B) All license fees shall be paid to the City Clerk, who shall be ex-officio tax collector, and who shall sign all licenses issued, and keep a record showing the number of each license, the date issued, to whom issued, the kind of business for which issued, the amount of license paid, and the date of expiration, and the form of license issued under this chapter shall, in all cases, be substantially as follows:

(C) Licenses issued in pursuance of this chapter shall be paid for in advance. They shall be dated on the date of issuance, and shall expire on the last day of the license term. Three months constitutes a license term, unless otherwise provided herein. No license shall be issued for a term less than the minimum term for which a license or tax is herein fixed for the business. No license tax shall be prorated. Any person commencing a business for which a specific tax is herein provided, during the term unless the rate be a daily rate, shall pay a fee for a full term. Quarterly terms shall commence on July 1, October 1, January 1 and May 1 of each fiscal year. The cost of an annual license shall be issued on an annual basis unless the annual license fee is paid in full prior to July 31 of the license year.

(D) No statement shall be conclusive upon the city as to the matters set forth therein, nor shall the filing of the same preclude the city from utilizing other lawful means to obtain the necessary information for determining the proper tax owed by reason of this section.

(1994 Code, § 5.04.060)

The information furnished or secured pursuant to the provisions of this chapter shall be confidential and not subject to public inspection. Any unauthorized disclosure or use of the information by any officer or employee of the city shall constitute a misdemeanor and the officer or employee shall be subject to the penalty provisions of this chapter, in addition to any other penalties provided by law, and the violation shall be cause for discharge from the city's service.

(1994 Code, § 5.04.070)

Every license as provided herein shall become null and void at the expiration of the term for which it is issued unless otherwise canceled.

(1994 Code, § 5.04.080)

If any person fails to file any required statement within the time prescribed or, if after demand therefor made by the Clerk, he or she fails to file a corrected statement, the City Clerk may determine the amount of license tax due from the person by means of the information as he or she may be able to obtain.

(1994 Code, § 5.04.090)

(A) Upon making a determination of the tax to be paid, the Clerk shall give a notice of the amount so determined by serving it personally, or by depositing it in the United States post office at San Joaquin, California, postage prepaid addressed to the person so assessed at his or her last known address. The person may, within 15 days after the mailing or serving of the notice, make application in writing to the City Clerk for a hearing on the amount of the license tax so determined. If the application is made, the City Clerk shall cause the matter to be set for hearing no less than 15 days or more than 30 days thereafter before the City Council. The Clerk shall give at least ten days notice to the person of the time and place of hearing in the manner prescribed herein for serving notices of assessment. The Council shall consider all evidence produced and issue findings thereon. Written notice of the findings shall he or she served upon the applicant in the manner prescribed for serving notices of assessment.

(B) Any person disputing any decision of the City Clerk with respect to the issuance or refusal to issue a license may appeal to the City Council by filing a notice of appeal with the City Clerk to the City Council. The City Council shall thereupon fix a time and place for hearing the appeal. The Clerk of the City Council shall give notice to the person of the time and place of hearing by serving it personally or by depositing it in the United States post office at San Joaquin, California, postage prepaid, addressed to the person at his or her last known address. The City Council shall have authority to determine all questions raised on the appeal. No determination shall conflict with any substantive provision of this chapter. The notice of appeal by any person so aggrieved shall be filed within 30 days from the date of issuance of the license, or within 30 days from the date of refusal to issue the license.

(1994 Code, § 5.04.100)

In addition to all other powers conferred upon him or her, the City Clerk shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 30 days, and in the case to waive any penalty that would otherwise have accrued; and shall have the further power, with the consent of the Council, to compromise any claims as to amount of license tax due.

(1994 Code, § 5.04.110)

(A) No licenses granted or issued under any of the provisions of this chapter shall be in any manner assignable or transferable, or authorize any person other than is therein mentioned or named to do business without permission from the City Council endorsed thereon by the City Clerk, who shall record the changes or transfer in the proper place upon the record of license.

(B) Where a license is issued authorizing a person to transact and carry on a business at a particular place, the license may upon application therefor and paying a fee of $5 have a license amended to authorize the transacting and carrying on of the business under the license at some other location to which the business is, or is to be, moved.

(1994 Code, § 5.04.120)

Editor's note:

This section is currently undergoing review and revision by the city

(A) Every licensee transacting and carrying on business at a fixed place of business in the city shall conspicuously exhibit the license at all times while in force in his or her place of business and shall produce the same at the request of the city or its authorized agents.

(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 or her person at all times while transacting and carrying on the business, or in the case where a license fee is imposed in connection with individual vehicles, the license and/or identifying sticker, tag, plate or symbol which has been issued therefor shall be kept in the vehicle at the locations as are designated by the City Clerk.

(1994 Code, § 5.04.130)

A duplicate license may be issued by the City Clerk to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing statement of the fact, and at the time of filing the statement paying to the Clerk a duplicate license fee of $2.

(1994 Code, § 5.04.140)

Editor's note:

This section is currently undergoing review and revision by the city

(A) All licenses granted under the provisions of this chapter or any section thereof, or any amendment hereto, shall be subject to compliance with an city, state and federal laws. The City Council may revoke any license issued pursuant to this section upon failure of the licensee to comply with any law or the provisions of this chapter or any condition imposed upon the license by the city. Upon revocation of the license, no part of the fee paid therefor shall be returned. The fee shall be forfeited to the city and the license returned to the City Clerk.

(B) No license shall be revoked without giving the licensee an opportunity to appear before the City Council in his or her own behalf. Prior to any revocation of license, the holder of the license shall be personally served with a written notice of intent to revoke, which also shall notify the holder to appear before the City Council no earlier than live days or later than 15 days after the service of the notice, at which time the holder may show cause why the license should not be revoked. Upon failure of the licensee to so appear, or if after appearance and hearing the Council shall find good and sufficient cause for revocation, the license shall be revoked and the determination and findings by the Council thereupon shall be conclusive. It is unlawful for the holder of the license to continue conducting or operating the business in any manner after revocation pursuant to this chapter.

(1994 Code, § 5.04.150) Penalty, see § 10.99

Every license which is not paid within a period of 30 days from the time the same becomes due and payable is declared to be delinquent and, except as otherwise provided in this chapter, the City Clerk shall thereupon add to the license a penalty of 10% of the license so delinquent; if the license is not paid within 45 days from the time the license becomes due and payable, an additional sum of 15% of the license, making a total of 25% shall be added to the license and collected as a penalty.

(1994 Code, § 5.04.160)

(A) The amount of any license tax imposed by this chapter and any and all penalties for nonpayment thereon as herein provided shall be deemed a debt to the city, and any person commencing or conducting any business in the city for which a license is required by this chapter without having a license hereunder to do so, shall be liable to an action in the name of the city in any court of competent jurisdiction for the amount of license. together with all penalties then due thereon as in this chapter provided and a reasonable sum for attorney's fees to be included and assessed in any cause of action and any judgment recovered in the action.

(B) The City Attorney is authorized to bring a civil action to collect unpaid license taxes upon the approval of the City Council by minute order. The conviction and punishment of any person for transacting any business without a license shall not excuse or exempt the person from the payment of any license due or unpaid at the time of the conviction, and nothing contained in this chapter shall prevent a criminal prosecution for any violation of the provisions of this chapter.

(C) In the event legal action is required to collect business license taxes and penalties, the business license tax shall bear interest of 8% per annum until paid. No license shall be issued, nor one which has been suspended or revoked shall 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 the person, with the consent of the City Council enters into a written agreement with the city, through the City Clerk, to pay the delinquent taxes, plus 8% 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, the person shall acknowledge the obligation owed to the city and agree that in the event of failure to make timely payment on any installment, the whole amount unpaid shall become immediately due and payable and that his or her current license shall be revocable by the Clerk on 30 days' notice.

(1994 Code, § 5.04.170)

(A) (1) No license shall be issued except on the filing of an application form. In the event that, by reason of incorrect information contained in the form, the license fee collected was not in the correct amount the city shall be entitled to collect any balance due or, if any licensee has overpaid, to refund the excess collected.

(2) In no event shall any error made by the City Clerk, his or her deputies or assistants in stating the amount of a license prevent or prejudice collection by the city of what shall be actually due pursuant to this chapter from any person conducting or carrying on a business within the city.

(B) No refund of an overpayment of fees imposed by this chapter shall be allowed in whole or in part unless a claim for refund is filed with the City Clerk within a period of three years from the last day of the calendar month following the period for which the overpayment was made, and all the claims for refund of the amount of the overpayment must be filed with the Clerk on forms furnished by him or her and in the manner prescribed by him or her. Upon the filing of the claim, and when he or she determines that an overpayment has been made, the Clerk may refund the amount overpaid.

(1994 Code, § 5.04.180)

(A) The amount of rates of license taxes to be paid by any person engaged in conducting or carrying on in the city any business hereafter designated is affixed and established as hereinafter in this section provided, and the license shall be paid by every person engaged in conducting or carrying on the business.

(B) Every person conducting, carrying on or managing a business, as herein enumerated, at an established place of business in the city shall pay an annual license tax as follows:

(C) License tax; flat rate; no fixed place of business within city.

(D) Whenever any business listed above is sponsored by any regularly established fraternal, veteran, civic or religious organization within the city, the license fee shall be $24 per day or fraction thereof. All applications under this heading shall be first approved by the City Council before issuance of a license. Approval shall not be given by information as to the proposed location of the business in the city, proposed shows and attractions, and sufficient evidence to satisfy the Council that the business shall not constitute a public nuisance. Twenty percent of the license fee for the principal show collected as aforesaid shall be refunded to the person paying the same upon the party delivering to the City Clerk a certificate of the Public Works Superintendent that the grounds where the show was conducted were properly cleaned after the show. In the event the grounds are not cleaned, then the sum shall be forfeited to the city.

(E) The license fee for every person engaged in conducting, carrying on or managing any business not otherwise specifically licensed by this section shall be $25 per quarter unless evidence provided by the applicant clearly demonstrates that the business would more appropriately fall under a lower rate.

(1994 Code, § 5.04.190) (Ord. 78-103, passed - -1978; Ord. 78-107, passed - -1979; Ord. 89-103, passed - -1989)

Editor's note:

This section is currently undergoing review and revision by the city

(A) It is the intent of the City Council that the adoption of this chapter shall not affect prosecution for violation of any other chapter or ordinance committed prior to the effective date hereof and its adoption shall not be construed as a waiver of any license or any penal provision applicable to a violation, nor shall its adoption 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 there unto appertaining shall continue in full force and effect.

(B) Where a license for revenue purposes has been issued to any person by the city and the fee paid for the business for which the license has been issued under the provisions of any ordinance heretofore enacted and the term of the license has not expired, then the license tax prescribed by this chapter shall not be payable unfit the expiration of the term of the unexpired license.

(1994 Code, § 5.04.200)