San Juan Capistrano Municipal Code Art. 1 General Provisions

No person shall engage in, carry on, or conduct in the City any business, trade, calling, profession, exhibition, or vocation set forth in Article 2 of this chapter without procuring a license therefor issued pursuant to the provisions of this chapter, and no person shall engage in, carry on, or conduct such business at a time other than as authorized in such license. No personal or written demand or notice from the City to persons required to be licensed pursuant to the provisions of this chapter shall be necessary to incur the penalties provided for in this chapter.

(Ord. No. 171, § 1)

(a) A license issued by the City pursuant to the provisions of this chapter shall authorize the person to whom issued, by him or herself or, unless otherwise expressly provided in this chapter, by bona fide employees in the regular course of their employment, to engage in, carry on, or conduct in the City the business, trade, calling, profession, exhibition, or vocation for which such license is issued for the term of such license.

(b) No license shall be issued under this chapter where the proposed use or activity is determined to be in conflict with State or Federal law.

(Ord. No. 171, § 1; Ord. No. 928, § 1, 2007)

The City Manager or designee is hereby designated the License Collector of the City and shall have the following duties:

(a) To prepare and issue licenses and to set forth in each license the amount thereof, the period of time covered thereby, the person to whom issued, the business, trade, calling, profession, exhibition, or vocation licensed, and the location of the place of business where such business, trade, calling, profession, exhibition, or vocation is to be carried on;

(b) To have printed a sufficient number of license forms as may from time to time be required and to report to the Council the quantity and numbers of such license forms printed;

(c) To sign all licenses issued under and by virtue of this chapter; and

(d) To keep a list of all delinquent license taxes payable pursuant to the provisions of this chapter and to immediately proceed to collect such taxes by suit or otherwise.

(Ord. No. 171, §§ 11, 12; Ord. No. 330, § 1)

Before any license is issued to any person pursuant to the provisions of this article, such person shall make a written application therefor to the License Collector. Such application shall set forth the following:

(a) The nature or kind of business, trade, calling, profession, exhibition, or vocation for which the license is required;

(b) The place where such business, trade, calling, profession, exhibition, or vocation will be carried on or conducted;

(c) The name of the owner of the business, trade, calling, profession, exhibition, or vocation;

(d) The signature of the applicant; and

(e) Where such business, trade, calling, profession, exhibition, or vocation is not to be conducted or carried on at a permanent place of business in the City, the residence of the owners of such business, trade, calling, profession, exhibition, or vocation;

(f) Where the nature of any business, trade, calling, profession, exhibition or vocation is considered a Class “C” business by this Code, the applicant shall be required to submit to a fingerprint background check.

(Ord. No. 171, § 6; Ord. No. 732, § 2)

In all cases where the amount of license tax to be paid by any person is based upon the number of persons employed; the number of wagons or other vehicles used; the amount of the maximum admission fee charged; the number of tables, alleys, or other devices used for any game; or the number of rooms in any building, such person, before obtaining a license for his or her business pursuant to the provisions of this chapter, shall furnish to the License Collector, for his or her guidance in ascertaining the amount of license tax to be paid by such person, a written statement, sworn to before a person authorized to administer oaths, showing the average daily number of persons employed by such person during the license period next preceding the date of such statement; or the number of wagons or other vehicles used; or the amount of the maximum admission fee charged; or the number of tables, alleys, or other devices used for any game by such person; or the number of rooms contained in such building at the date of such statement.

(Ord. No. 171, § 7)

No statement required by the provisions of Section 3-1.105 of this article shall be conclusive upon the City or upon any officer of the City as to the matters set forth therein, and such statement shall not prejudice the rights of the City to recover any amount which may be ascertained to be due from such person, in addition to the amount shown by such statement to be due, in the event such statement should be found to be incorrect. The correctness of all such statements shall be subject to verification by the License Collector or his or her deputies.

(Ord. No. 171, § 8)

If any person required to make any statement pursuant to the provisions of Section 3-1.105 of this article shall fail to do so, such person shall be required to pay a license tax at the maximum rate prescribed in this chapter for the business, trade, calling, profession, exhibition, or vocation carried on by such person, in addition to any other penalty provided by this chapter.

(Ord. No. 171, § 9)

A separate license shall be obtained for each branch establishment or separate place of business in which the business, trade, calling, profession, exhibition, or vocation is carried on, and each such license shall authorize the licensee to carry on, pursue, or conduct only such businesses, trades, callings, or professions, exhibitions, or vocations described in such licenses and which are indicated thereby.

(Ord. No. 171, § 13)

In the event any person is operating more than one business required to be licensed at the same location and under the same management, the license tax to be paid by such person shall be the full license tax for each business.

(Ord. No. 171, § 14; Ord. No. 594, § 1A)

(a) Unless otherwise specifically provided or authorized herein, the licenses issued pursuant to the provisions of this chapter shall be nontransferable.

(b) Any holder of a current valid business license may apply for a license transfer as provided herein. If a license is transferred as provided in this section, no additional business license tax shall be due from the license holder/applicant, provided the business’s license taxes are current for the year when the transfer occurs.

(c) For purposes of this section, a “license transfer” shall mean a: (i) change in business name; (ii) change in business ownership; (iii) change of business location; or (iv) any combination thereof. Any other changes in a business including, but not limited to, changes in type, scope or size, shall require an application for a new business license as provided in Section 3-1.104 and payment of any applicable business license taxes.

(d) For purposes of this section, a “change of ownership” shall mean an occurrence where 50% or more of the controlling interest in the business is transferred to another person.

(e) A license transfer applicant shall file an application with the License Collector, along with an application fee as set by resolution of the City Council. The application fee shall not exceed the City’s reasonable costs of processing and reviewing a transfer application. Upon receipt of an application, the License Collector shall verify that the transfer complies with this Municipal Code. In the case of a change of business location, the review shall include an investigation by the Planning Department to verify that the applicant’s business at the new location complies with applicable zoning and development codes.

(f) The License Collector shall render a written determination within 30 days after receipt of a complete license transfer application. The License Collector shall either approve or deny the transfer. If the License Collector denies an application, he or she shall include the reasons for the denial. The decision of the License Collector shall be final.

(Ord. No. 171, § 20; Ord. No. 1029, § 1, 2016)

The License Collector shall make a charge of $5 for each duplicate license issued to replace any license which has been lost or destroyed.

(Ord. No. 171, § 20; Ord. No. 594, § 1B)

Every person having a license issued pursuant to the provisions of this chapter and carrying on a business, trade, calling, profession, exhibition, or vocation at a particular place of business shall keep the license posted or exhibited while in force in some conspicuous place on the business premises. Every peddler or solicitor or any other person carrying on a business, trade, calling, profession, exhibition, or vocation not having a permanent place of business in the City and licensed pursuant to the provisions of this chapter shall carry his or her license with him or her at all times while engaged or operating within the City.

(Ord. No. 171, § 15)

(a) Exemption from license requirement. The following are not required to obtain a business license:

(1) Businesses, trades, callings, professions, exhibitions, or vocations exempt from municipal business licensing requirements by virtue of the Constitution and laws of the State or the United States;

(2) Businesses, trades, callings, professions or vocations whose contact with the City is merely incidental to their business. “Incidental contact” includes, but is not limited to:

(A) Traveling through the City limits on business without conducting a business transaction within the City,

(B) Delivering packages or goods to an address located within the City where the remainder of the transaction occurred either outside of the City, or by mail, telephone or Internet,

(C) Occasional meetings within the City between a client and a service provider whose office is located outside the City, and where the services are primarily rendered to the client from a location outside the City,

“Incidental contact” does not include the following:

(b) Exemption from payment of tax. Although required to obtain a business license, no license tax shall be required for the following:

(1) Businesses, trades, callings, professions, exhibitions, or vocations exempt from municipal license taxes by virtue of the Constitution and laws of the State or the United States;

(2) Any institution or organization which is conducted, managed, or carried on wholly for charitable purposes and from which profit is not derived, either directly or indirectly, by any individual; provided, however, the applicant shall furnish conclusive proof to the License Collector that such is the case;

(3) Any enterprise or entertainment when the receipts derived therefrom are to be appropriated to any church or school or to any religious, benevolent, or charitable purpose within the City;

(4) Any person honorably discharged from the armed forces of the United States who peddles, hawks, or vends any goods permitted by law and exempt from license taxes by virtue of the laws of the State and who exhibits his or her authenticated papers; provided, however, no more than one license shall be issued to such applicant during any one year;

(5) Any person peddling, exclusively, fruit, vegetables, or other products raised upon his or her lands; provided, however, such person shall furnish conclusive proof to the License Collector that such products were raised by him or her on his or her lands before the issuance of a tax exempt license, and such person shall carry the license with him or her; and

(6) Any person engaged in citrus growing or other horticultural or agricultural pursuits, including persons engaged exclusively in the business of caring for, spraying, fumigating, fertilizing, or hauling such horticultural or agricultural products or engaged in other gainful occupations serving citrus growers, other horticulturists, and farmers, except packinghouses.

(c) Tax exempt licenses. Licenses issued pursuant to the provisions of this section shall be issued in the same form and manner as other licenses but shall bear the words “Tax Exempt License” over the signature of the License Collector.

(d) Regulatory provisions applicable. The provisions of this section shall not exempt any person from complying with the regulatory measures and provisions of this chapter, except the payment of the license taxes required by Article 2 of this chapter.

(e) Licenses—Transfer. The tax exempt licenses issued pursuant to this section may be transferred as provided in Section 3-1.110.

(Ord. No. 171, §§ 10, 11; Ord. No. 1029, § 2, 2016)

All license taxes shall be due on January 1st of each year, or upon first doing business with the City. Annual renewals shall be due on or before 30 days after the expiration date of the previous year’s license. All license taxes shall be paid in lawful money of the United States at the office of the License Collector. The first annual license shall be issued for the unexpired period of such year, except as otherwise specifically provided in this chapter. Except as set forth in Section 3-1.211(c) (taxes for out-of-City businesses), business license taxes shall be prorated as follows: if the first annual license is issued between April 1st and June 30th, the business license tax due for the first annual license shall be 75% of the amount provided by this Code. If the first annual license is issued between July 1st and September 30th, the business license tax due for the first annual license shall be 50% of the amount provided by this Code. If the first annual license is issued between October 1st and December 31st, the business license tax due for the first annual license shall be 25% of the amount provided by this Code. There shall be no proration of business license taxes due for annual renewals or of daily business license taxes.

(Ord. No. 171, §§ 3, 4; Ord. No. 594, § 1C; Ord. No. 1029, § 3, 2016)

A penalty of 50% shall be added to each license tax remaining unpaid 30 days after it becomes due, and, on the first day of each month thereafter that such tax remains unpaid an additional penalty of 10% of such unpaid tax shall be added; provided, however, the maximum amount of such penalty shall not exceed an amount equal to the amount of such tax. No penalty fees will be waived under any circumstances.

(Ord. No. 171, § 4; Ord. No. 594, § 1D)

No refund of any license tax paid in accordance with the provisions of this chapter shall be made, unless the conducting, managing, or carrying on of such business as provided in such license shall become unlawful, either by act of the Council or by act of a legislative body having jurisdiction thereon, or where payments thereon have been erroneously made by the licensee.

(Ord. No. 171, § 18)

In no case shall any error made by the License Collector or any deputy of the License Collector in preparing a license, or stating the amount of the tax therefor, prejudice the collection by the City of the amount actually due pursuant to the provisions of this chapter for the carrying on of any business, trade, calling, profession, exhibition, or vocation, nor shall the issuance of a license by the License Collector or his or her deputies authorize the carrying on of any business, trade, calling, profession, exhibition, or vocation in any zone or location contrary to the provisions of the zoning laws of the City.

(Ord. No. 171, § 19)

(Ord. No. 171, § 5; repealed by Ord. No. 594, § 1E)

Any person required to make an application for a license pursuant to the provisions of this chapter who fails, neglects, or refuses to procure such license, or who carries on, or attempts to carry on, any business in the City for which a license is required without first procuring such license, shall be liable to an action in the name of the City, as plaintiff, in any court of competent jurisdiction for the amount of the license tax imposed by this chapter on such business, trade, calling, profession, exhibition, or vocation together with the costs of the suit.

(Ord. No. 171, § 2)

The conviction and punishment of any person for transacting any business, trade, calling, profession, exhibition, or vocation without a license shall not excuse or exempt such person from the payment of any license tax due or unpaid at the time of such conviction, or the collection thereof in a court of competent jurisdiction, and the provisions of this section shall not prevent criminal prosecutions for violations of the provisions of this chapter.

(Ord. No. 171, § 17)

Every person who conducts a business, trade, calling, profession, exhibition, or vocation subject to the provisions of this chapter without obtaining a license therefor shall be deemed guilty of a violation of the provisions of this chapter and shall be punishable as set forth in Chapter 2 of Title 1 of this Code.

(Ord. No. 171, § 21)