Chapter 2-2 — BUSINESS LICENSE

Article 1 Purpose(Legislative History: Ordinance No. 87-022, 12/7/87; Ordinance No. 93-027, 12/20/93 (Section 2-2-100); Ordinance No. 94-027, 12/5/94; Ordinance No. 95-020, 11/6/95 (Section 2-2-100))

This Chapter is enacted for the purpose of regulation and raising revenue for general municipal purposes, except that where a license shall be required for the conduct of business by the State for regulatory purposes or where no license may be required by law for regulatory purposes, the purpose shall be solely that of raising revenue. That portion of the business license fee, if any, imposed for regulatory purposes is a fee, whereas that portion imposed for revenue purposes is a tax regardless of the description herein as a "fee" or "tax."

Article 2

Definitions(Legislative History: Ordinance No. 86-02, 1/20/86; Ordinance No. 87-022, 12/7/ 87; Ordinance No. 90-020, 11/5/90, (Sections 2-2-210 and 2-2-245); Ordinance No. 91-022, 11/ 18/91 (Sections 2-2-220, 2-2-250, 2-2-265); Ordinance No. 92-036, 12/21/92, (Sections 2-2-210, 2-2-220, 2-2-245, 2-2-247); Ordinance No. 93-027, 12/20/93, (Sections 2-2-200—2-2-270); Ordinance No. 94-027, 12/5/94 (Sections 2-2-200—2-2-270); Ordinance No. 95-020, 11/6/95 (Sections 2-2-200—2-2-270; Ordinance No. 98-05, 2/17/98 (Sections 2-2-220, 2-2-250); Ordinance No. 2006-004, 2/6/06 (Section 2-2-220); Ordinance No. 2016-025, 12/19/16 (Sections 2-2-220, 2-2-265))

Unless the provision or context otherwise require, the following definitions contained in this Article shall govern the construction of this Chapter.

§ 2-2-205. (RESERVED)

Number of employees shall mean and include the total number of full time and part time employees engaged or to be engaged within this City in the applicant's business during the license period, whether as owner, partner, spouse or employee and any others who may work without charge. The Finance Director may require the applicant to submit information concerning the number of employees engaged in applicant's business including but not limited to a copy of the relevant sections of the State Employment Development Department Quarterly Report (DE-3) form(s) as verification of the number of employees when this information is used to calculate a business license fee as specified in Article 5 of this Chapter.

Business shall mean any profession, trade, occupation or activity conducted, including but not limited to regular delivery of goods within the City, having a fixed place of business located in the City, taking orders from clients located within the City, manufacture of products within the City, or processing orders within the City for sale elsewhere, whether or not carried on for profit, except as defined in Section 2-2-720.

Business classification shall mean the following general business categories:

(a) Automobile Wrecking. Any person engaged in the business of buying or trading used or
wrecked motor vehicles and reselling the parts thereof or the building of motor vehicles
from the salvaged parts of such motor vehicles.

(b) Bingo shall mean a game of chance in which prizes are awarded on the basis of designated
numbers or symbols on a card which conform to numbers or symbols selected at random.

(c) Carnival. Any person engaged in the business of operating a carnival, circus or other
itinerant amusement concession, excluding an activity for which a permit has been obtained
pursuant to the Zoning Code of the City of San Leandro and which is:

(1) An incidental part of an overall business promotional activity conducted by an organized group of merchants licensed to do business within the City.

(2) Carried on, by, or on behalf of a civic, religious, cultural, benevolent or similar
nonprofit organization with a minimum of 40% of the gross receipts of such activity
to be received by such organization.

(3) A neighborhood carnival, exhibit, celebration or festival sponsored by an organized
group of residents in the vicinity, provided that no mechanical rides are a part of such
activity.

(4) A booth for charitable, welfare or patriotic purposes.

(d) Christmas Tree and Pumpkin Sales. Christmas tree and pumpkin sales shall mean the
selling of Christmas trees and pumpkins at retail, excluding such sales by a licensee from a
permanently established licensed place of business within the City.

(e) Coin-Operated Device. Coin-operated device shall mean laundry machine, video game
machine, pinball machine, juke box, vending machine or other similar coin-operated
electrical or mechanical device.

(f) Commercial Advertising. Commercial advertising shall mean the distribution of
commercial advertising material, excluding distribution of such material advertising a
permanently established licensed business within the City by the owner or employees of
such business.

(g) Contractors. Any person who is licensed as a contractor by the State of California and who
undertakes or offers to undertake or submits a bid to construct, alter, repair, improve, move,
wreck or demolish any building, highway, excavation or other structure, project,
development or improvement, or to do any part thereof. The term contractor includes
subcontractor and specialty contractor.

(h) Dance Hall shall mean any establishment where dancing is permitted with or without
charge, whether or not in conjunction with any other business.

(i) Firearms Dealer shall mean a person whose business substantially consists of the selling,
transferring, or leasing, or advertising for sale, transfer, or lease, or offering or exposing for
sale, transfer, or lease, any firearm capable of being concealed upon the person as defined
by thePenal Code of the State of California.

(j) Fortunetelling. Any person engaged in the business of telling fortunes, forecasting futures
or furnishing any information not otherwise obtainable by the ordinary process of
knowledge.

(k) Itinerant Merchant. Any person engaged in the temporary business of exhibiting, selling
and delivering goods, wares or merchandise and who for the purpose of carrying on such
business hires, leases, uses or occupies any building, room, motor vehicle, tent or other
place within the City.

(l) Second Hand Dealer. Any person engaged in the business of buying, selling, exchanging,
trading, accepting for sale or consignment, secondhand personal property of whatever kind
or description.

(m) Manufacturing. Any person conducting, managing or carrying on a business consisting mainly of manufacturing any goods, wares, merchandise or produce.

(n) Miscellaneous. Any person engaged in a business not specifically defined by other
provisions of this Chapter and not otherwise exempt.

(o) Parking Lot means and includes, but is not limited to:

(1) Any outdoor space or uncovered plot, place, lot, parcel, yard or enclosure, or any
portion thereof, where motor vehicles may be parked, stored housed or kept, for
which any charge is made;

(2) Any building or structure, or any portion thereof, in which motor vehicles may be
parked, stored, housed or kept, for which a charge is made.

(p) Pawnbroker. Any person engaged in the business of receiving goods in pledge as security
for a loan.

(q) Peddler. Any person conveying or transporting goods, wares, merchandise, or provisions from place to place, from house to house or from street to street, offering and exposing the same for sale or making sales and delivering articles to purchasers.

(r) Public Utilities. Any person engaged in the business of providing utility services (whether
or not regulated by the Public Utilities Commission) to the general public including, but
not limited to, electricity, telephone, gas, cable television services, cellular phone service,
and data transmission.

(s) Professional. Any person engaged in a profession or vocation requiring a period of
specialized training such as, but not limited to the following:

Architect

Attorney-at-Law

Certified Public Accountant

Chiropractor

Dentist

Engineer (Chemical, Civil, Electrical, etc.)

Environmental Consultant

Geologist

Optician

Optometrist

Osteopath

Physician

Podiatrist

Psychologist

Public Accountant

Veterinarian

(t) Recreation and Entertainment. Any person engaged in the business of providing
entertainment, recreation or amusement services.

(u) Nonresidential Property Rental. Any person engaged in the business of renting or letting a
building or structure of any kind, including warehouses, mini-storage, industrial,
commercial, and office buildings to a tenant for purposes other than dwelling, sleeping or
lodging. For the purposes of calculating fees, when combining nonresidential and
residential property rentals, all property must be under the same ownership.

(v) Residential Property Rental. Any person engaged in the business of conducting or
operating an apartment house, single-family house rental, duplex, condominium,
townhouse, hotel/motel, mobile home park, rooming or boarding house having one or more
residential units, excluding for purposes hereof the unit, if any, occupied by the taxpayer.
For the purposes of calculating fees, when combining nonresidential and residential
property rentals, all property must be under the same ownership.

(w) Retailing. Any person providing or carrying on a business consisting mainly of selling at
retail any goods, including restaurants and establishments where meals or refreshments
may be procured.

(x) Services. Any person providing services, repairs, or improvements to or on real and personal property; renting or leasing personal property to businesses or persons; providing services to persons such as, but not limited to:

Ambulance

Appraiser

Assayer

Bail Bond Broker

Barber and Beauty Shops

Bookkeeping Service

Claims Adjuster

Cleaning and Dyeing

Collection Agency

Commercial Artist

Consultant

Delivery of Goods

Designer or Decorator

Detective or Detective Agency

Draftsman

Employment Agency

Escrow Company

Finance/Loan Company

Gardener

Health Studio

Instruction (Dance, etc.)

Insurance Adjuster/Broker

Investment Advisor

Landscape Designer

Laundries

Locksmith

Manufacturer's Representative

Messenger

Mortician

Notary Public

Outdoor Advertising

Photographer

Photographic Processing

Photographic Studios

Physio-Therapist

Public Stenographer

Real Estate Broker/Agent

Repair Shops (Automobile, Machine, Tools, etc.)

Shoe Repair

Stock/Bond Broker

Surveyor

Tax Counselor

Taxicabs

Taxidermist

Travel Agency

X-Ray Laboratory

(y) Solicitor. Any person taking or attempting to take orders from place to place, from house
to house or from street to street, for sale of goods, wares and merchandise, personal
property or services of any nature whatsoever for future delivery.

(z) Towing. Any person engaged in the business of towing or transporting any motorized or
non-motorized vehicle.

(aa) Warehousing/Storage. Any person or firm engaged in providing and/or operating
warehousing facilities primarily used for the storage and/or consolidating of items such as
raw materials, private goods, and the intermediary storage of bulk goods intended for
further distribution. This classification includes moving and furniture storage companies.

(ab) Waste Disposal Site. Any person engaged in the business of conducting or operating a
landfill, transfer station or collection center for the receipt and processing of household,
commercial and industrial solid waste materials.

(ac) Wholesaling/Distribution—General. Any person or firm primarily engaged in selling merchandise to retailers; to other wholesalers for resale to individual consumers; or to industrial users for their own consumption or resale to individual consumers. This classification includes order-processing fulfillment centers, logistics businesses, and other facilities that provide for the repackaging and/or shipment of an on-site inventory of goods and products directly to retail/wholesale customers or retail stores. This classification also includes truck terminals, whose purpose is to provide for the consolidation, division and/or distribution of bulk goods through the use of large trucks and trailers, including cross-dock trucking uses.

(ad) Wholesaling/Distribution—Large Local Seller. Any person or firm which meets the parameters of Wholesaling/Distribution—General and contributes more than Fifty thousand dollars in sales tax payable to the City of San Leandro during the prior July 1 through June 30 time period.

§ 2-2-225. (RESERVED)

§ 2-2-230. (RESERVED)

§ 2-2-235. (RESERVED)

§ 2-2-240. (RESERVED)

Employee charge shall mean a fee, based upon the total number of full time and part time employees, including owners and any others who may work without charge. The number of employees shall not be less than one.

When any person, by the use of advertising mediums, including but not limited to radio, television, signs, circulars, cards, telephone books, facsimile, or newspapers, shall advertise, hold out, or represent that he or she is in business in the City, 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, or when any person makes a sale, takes an order, renders a commercial service, or performs any other similar act within the City, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activity, then such facts shall be considered prima facie evidence that he or she is conducting a business in the City.

(a) Gross receipts shall include the total of amounts actually received or receivable from all sales and services. Gross receipts shall include the total amount of compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise; and gains realized from trading in stocks or bonds, interest income, carrying charges, rents, royalties, fees, commissions, dividends, or other emoluments, however designated.

(b) Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:

(1) Cash discounts allowed and taken on sales;

(2) Such part of the sale price of property returned by purchases upon rescission of the contract of sale as is refunded in either cash or by credit;

(3) Amounts received or receivable by persons for goods produced or acts or services performed outside the City, but only to the extent a business license fee has been paid to the City or County where the goods were produced or acts or services were performed;

(4) Any fee required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

(5) Receipts of refundable deposits, except that refundable deposits forfeited and taken into the income of the business shall not be excluded;

(6) As to a real estate agent or broker, the sales price of real estate sold for the account of others, except that portion which represents commission or other income to the agent or broker;

(7) Cash value of sales, trades or transactions between departments or units of the same business, commonly called interdepartmental transfers;

(8) That portion of the receipts of a general contractor which represents payments to subcontractors; provided the general contractor furnishes the Finance Director with the names and addresses of the subcontractors and the amounts paid each subcontractor. All subcontractors shall be required to be licensed under this title.

(9) Anything which the City may not lawfully include by virtue of the Constitution of the United States or the Constitution of the State of California.

(10) The amount paid for wages, benefits and payroll taxes for employees of an
employment agency providing full or part-time employees to another business or firm
and being responsible for the wages, benefits and payroll taxes.

(11) For retail sales of motor vehicles (including trucks and industrial or construction
vehicles) the value of the motor vehicle taken in trade for the sale of a new or used
motor vehicle, or an amount equal to 33% of the total gross receipts of such retail
motor vehicle sale whichever is less.

(c) The Finance Director may demand proof of gross receipts and require such applicant to
submit a copy of the State Sales and Use Tax Returns or other formal documentation
relative to such business. As specifically provided in Article 5 of this Chapter, when gross
receipts are used as a business license unit fee measure, the appropriate number will be
ascertained as follows:

(1) If an application is for an original license, the applicant shall estimate the gross
receipts attributable to the business activities to be conducted within the City to be
received during the license period, which estimate shall be used in determining the
appropriate fee to be levied.

(2) If an application is for a renewal, but the prior year was not a full 12 months, the
renewal will be calculated on the average month (gross receipts multiplied by 12).

(3) If an application is for a renewal, the applicant shall report the gross receipts directly
attributable to the business activities conducted within the City received during the
previous license period, which figure shall be used in determining the appropriate fee
to be levied.

Person shall mean any individual, agent, association, group, partnership, representative, firm, corporation or any agent or representative thereof.

Space shall mean each location in a mobile home park that is rented or intended to be rented.

For persons or firms within the nonresidential property rental classification, square feet shall mean all of the space within the exterior walls of the building regardless of use that is rented or intended to be rented. For persons or firms within the warehousing/storage or wholesaling/ distribution classifications, square feet shall mean all of the space within the exterior walls of the building leased or owned by the business regardless of use as substantiated by a lease document, floor plan/blueprint, or other form of documentation approved by the Director of Finance. No business shall be deemed to be less than one unit fee.

Unit shall mean each residential dwelling that is rented or intended to be rented. No business shall be deemed to be less than one unit fee.

Article 3

Licenses(Legislative History: Ordinance No. 87-022, 12/7/87; Ordinance No. 93-027, 12/20/ 93, (Sections 2-2-300—2-2-335); Ordinance No. 94-027, 12/5/94 (Sections 2-2-300—2-2-335); Ordinance No. 95-020, 11/6/95 (Sections 2-2-300—2-2-335); Ordinance No. 04-020, 9/20/04, (Sections 2-2-303, 2-2-310, 2-2-325; Ordinance No. 2016-025, 12/19/16 (Sections 2-2-303, 2-2-320)))

No person shall commence or carry on any business in this City without first having obtained a license and paid the appropriate fees in accordance with the provisions of this Chapter.

A separate license must be obtained for each separate business on the same premises. 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 that license. Warehouses and distributing plants used in connection with, and incidental to, a business licensed under this Chapter are not deemed to be separate businesses for the purposes of this section.

A separate license must be obtained for each and every branch establishment or place of business in which any portion of a business is carried on or conducted.

Every business required to obtain a license under this Chapter must display the license in a conspicuous place upon the premises where the business is conducted. If the licensee does not maintain a fixed place of business within the City or uses a vehicle in the business, licensee shall carry proof of license on their person at all times when engaged in business within the City of San Leandro and shall display a proof of license at the request of any City Officer or employee or any customer or prospective customer.

Any license issued pursuant to this Chapter shall be effective for up to one calendar year and shall expire on December 31, of the year for which issued, except a license or which a different period is specifically provided in this Chapter.

Cannabis businesses will receive their annual business licenses upon payment of any and all applicable cannabis business tax as required by the Municipal Code.

The Finance Director shall not issue any license under this Chapter for the conduct of any business for which another license or permit is required by law until the applicant has first exhibited such license or permit to the Finance Director. The Finance Director shall note the type, number and expiration date of such license or permit. The applicant is responsible for obtaining all City-required approvals and permits. A business license issued without the applicant first obtaining all City-required approvals and permits does not constitute a license to operate a business within the City.

The license shall set forth the name of the business to whom the license is issued, the kind of business for which the license is issued, the address of the place of business and the date of expiration of the license.

(a) Duty of Finance Director. On or before December 31, or each year, the Finance Director shall mail to each person holding a valid business license for the current calendar year a renewal form for such license. Each applicant for renewal of a license shall provide such information as the Finance Director may require in determining whether there has been any change in the nature of the licensed business and the appropriate license fee to be levied for the ensuing calendar year.

(b) Duty of Licensee. Each applicant for renewal of license shall submit to the Finance Director the appropriate license fee no later than January 31, of the calendar year for which renewal of the license is requested. Failure of the Finance Director to mail the license renewal form shall not relieve the licensee from responsibility for requesting renewal or submitting the appropriate license fee.

Article 4

Procedure(Legislative History: Ordinance No. 87-022, 12/7/87; Ordinance No. 93-027, 12/20/ 93, (Sections 2-2-400—2-2-455); Ordinance No. 94-027, 12/5/94 (Sections 2-2-400—2-2-455); Ordinance No. 95-020, 11/6/95 (Sections 2-2-400—2-2-465); Ordinance No. 96-016, 12/2/96 (Section 2-2-220))

All license applications shall be submitted to the Finance Director. Each applicant shall provide such information as the Finance Director shall require to ascertain the nature of the proposed business and the appropriate license fee to be levied. Such form shall contain a declaration, under penalty of perjury, to be signed by the applicant that the information provided is true.

The Finance Director shall determine from the information provided on the application and from such other information as is available, the appropriate license fee to be levied in accordance with the provisions of Article 5 of this Chapter.

§ 2-2-410. (RESERVED)

Upon a determination that all statements in the application are true, that the proposed business will comply with applicable laws and that the appropriate license fee has been levied and paid, the Finance Director shall issue the license.

Whenever the Finance Director has reasonable cause to believe that any statement contained in an application is not true or that a proposed business will not comply with any applicable laws or whenever an applicant fails or refuses to pay an appropriate license fee, the Finance Director shall give written notice to the applicant that the application has been rejected and shall state the reason for such rejection.

§ 2-2-425. (RESERVED)

§ 2-2-430. (RESERVED)

Whenever the Finance Director has reasonable cause to believe that by reason of error, misrepresentation, fraud or any other cause whatsoever, the license fee has not been properly levied and paid for any license issued, the Finance Director shall give not less than five days' written notice of the error in levy to the licensee. The written notice shall require the licensee to show cause, at a time and place specified in said notice, why a fee determined and specified by the Finance Director should not be fixed for such license. At such hearing the licensee shall appear and offer evidence why such specified fee should not be fixed as the license fee. After such hearing, the Finance Director shall determine the appropriate fee to be levied and within five days after said hearing shall give written notice to the licensee of such determination and the amount of such fee. Upon failure of the licensee to pay such additional fee within 10 days of the mailing of such notice, the Finance Director shall revoke the license and shall give written notice of revocation to the licensee. Within five days of the mailing of notice of revocation, the licensee shall cease the operation of the business for which the license was issued.

Whenever the Finance Director has reasonable cause to believe that any statement contained in an application pursuant to which a license has been issued is not true, or that a licensed business does not comply with any statute of the State of California or any ordinance of the City of San Leandro, or whenever a license which has been issued remains unpaid by reason of dishonor of a licensee's check tendered in payment of the license fee, the Finance Director shall give not less than five days' written notice of the deficiency to the licensee. The written notice shall require the licensee to show cause, at a time and place specified in said notice, why the license should not be revoked. Should the licensee fail to present evidence at such hearing which established that the licensee is entitled to retain the license or should the licensee fail to pay the license fee, including any penalty then due for delinquency, the Finance Director shall revoke the license and shall give written notice of revocation to the licensee. Within five days of the mailing of notice of revocation, the licensee shall cease the operation of the business for which the license was issued.

§ 2-2-445. (RESERVED)

Within 10 days after mailing the notice regarding the determination of the Finance Director, an applicant or licensee may appeal to the City Council in writing. The City Council shall set a hearing date and notify licensee not less than five days prior to the hearing. At the hearing, the licensee shall show cause why the action or determination of the Finance Director should not be approved. The findings of the City Council shall be final and conclusive in the matter. In the alternative, the City Council may refer the appeal to a hearing officer. The decision of the hearing officer shall be submitted to the City Council which may, on the basis of the record only, approve or disapprove the findings of the hearing officer.

Any notice herein required shall be deemed as having been served when the notice is posted in the United States mail in a sealed envelope, postage prepaid and addressed to the person's business address as shown on the records of the Finance Director.

Records which shall be maintained for audit purposes shall include State and Federal income tax returns, schedules and records included in such returns, any and all work papers used to prepare such returns, and in the case of businesses whose business license fee is computed upon number of employees, quarterly and annual State and Federal payroll tax returns.

All persons subject to the provisions of this Chapter shall keep complete records of all business transactions and shall retain such records for examination by the Finance Director and maintain them for a period of at least three years from the annual due date of the Federal tax return or the City business license fee return, whichever time period is greater. No person required under this section to keep records shall refuse to allow authorized representatives of the collector to

examine said records at reasonable times and places.

A mistake made in stating the amount of the business license fee shall not, in any case, prevent or prejudice the Finance Director from collecting what is actually due from any person or entity carrying on a trade, calling, profession or occupation subject to a business license fee under this Chapter.

If any person, subject to the fee imposed by this Chapter, fails to submit information required, or if the Finance Director is not satisfied with records and statements filed, the Finance Director shall determine the amount of the business license fee due from such person by means of such information as he or she may be able to obtain and shall mail a notice of the amount so assessed by serving it personally or by depositing in the United States Post Office at the most recent home or business address.

AGENCIES.

The statement of gross receipts filed pursuant of the provisions of this Chapter shall be considered for all purposes as a trade secret and shall be confidential in character, shall not be subject to public inspection, and shall be kept so that the contents thereof shall not become known except to the Finance Director or authorized employee of the Finance Director.

Nothing in this section shall be construed to prevent the following: The disclosure to, or examination of records by the City employee charged under this Chapter with collection of business license fees; a grand jury or court of law, upon a subpoena, or in a proceeding to determine the existence or amount of any tax liability of the particular taxpayer to the City; the disclosure of the business name, location, owners names and general type or nature of business, the expiration date and status pursuant to this Chapter. Notwithstanding anything in this Chapter to the contrary, unlawful disclosure of confidential information to any person not authorized by this section shall be a misdemeanor under the Code and punishable in the manner prescribed.

Article 5 Fees(Legislative History: Ordinance No. 86-002, 1/20/86; Ordinance No. 87-022, 12/7/87; Ordinance No. 90-020, 11/5/90 (Sections 2-2-500 and 2-2-535); Ordinance No. 91-022, 11/18/ 91 (Sections 2-2-500, 2-2-520, 2-2-555 and 2-2-556); Ordinance No. 92-036, 12/21/92 (Sections 2-2-500, 2-2-520); Ordinance No. 93-027, 12/20/93 (Sections 2-2-500—2-2-560); Ordinance No. 94-027, 12/5/94 (Sections 2-2-500—2-2-560); Ordinance No. 95-020, 11/6/95 (Sections 2-2-505—2-2-580); Ordinance No. 96-016, 12/2/96 (Section 2-2-500); Ordinance No. 04-020, 9/20/04 (Sections 2-2-535, 2-2-536, 2-2-556); Ordinance No. 06-014, 7/27/06 (Section 2-2-500); Ordinance No. 2007-012, 5/21/07 (Section 2-2-500); Ordinance No. 2008-006, 5/19/ 08 (Section 2-2-500); Ordinance No. 2009-006, 5/18/09 (Section 2-2-500); Ordinance No. 2010-008, 5/17/10 (Section 2-2-500); Ordinance No. 2011-007, 5/16/11 (Section 2-2-500); Ordinance No. 2012-007, 5/7/12 (Section 2-2-500); Ordinance No. 2013-003, 5/20/13 (Section 2-2-500); Ordinance No. 2014-004, 5/19/14 (Section 2-2-500); Ordinance No. 2015-005, 5/18/ 15 (Section 2-2-500); Ordinance No. 2016-003, 5/16/16 (Section 2-2-500); Ordinance No. 2016-025, 12/19/16 (Section 2-2-500); Ordinance No. 2017-009, 5/15/17 (Section 2-2-500); Ordinance No. 2017-018, 12/4/17 (Section 2-2-500); Ordinance No. 2018-007, 5/21/18 (Section 2-2-500); Ordinance No. 2019-006, 5/5/19 (Section 2-2-500); Ordinance No. 2020-006, 5/22/20 (Section 2-2-500); Ordinance No. 2021-005, 5/3/21 (Section 2-2-500); Ordinance No. 2022-007, 6/6/22 (Section 2-2-500); Ordinance No. 2023-005, 5/15/23 (Section 2-2-500); Ord. No. 2024-004, 5/20/2024 (Section 2-2-500); Ord. No. 2025-004, 5/5/2025 (Section 2-2-500))

Note: Editor's Note: The fees portion of Ordinance 96-016 was put before the voters and was ratified by the electors. The fees portion of Ordinance 95-020 was put before the voters on June 8, 1998 as Measure B (Ordinance 98-04) and was not ratified by the electors. Thus, the fees reverted back to those enacted by Ordinance 94-027, as amended by Ordinance 96-16.

Every person commencing or carrying on a business within this City shall pay a license fee in an amount determined by the Finance Director in accordance with the nature of the business as hereinafter set forth:

Annual Base
Business Classification Fee Unit Fee Unit Fee Basis

Automobile Wrecking $856.90 $ — Flat/Annual

Bingo $171.00 $ — Flat/Annual

Carnival $171.00 $316.20 Flat/Daily

Christmas Trees/Pumpkin $856.90 $ — Flat/Annual
Patch

Coin Operated Device $171.00 $1.70 Per $1,000 of gross receipts

Commercial Advertising $856.90 $ — Flat/Annual

Contractor $171.00 $105.60 Per each owner and each
employee

Annual Base
Business Classification Fee Unit Fee Unit Fee Basis

Dance Hall $856.90 $ — Flat/Annual

Firearms Dealer $171.00 $5.20 Per $100 of gross receipts
attributable to the sales of
firearms capable of being
concealed upon the person
and ammunition for such
firearms, excluding sales to
public agencies

Fortune Telling $856.90 $ — Flat/Annual

Itinerant Merchant $171.00 $54.50 Flat/Weekly

Manufacturing $171.00 $52.70 Per each owner and each
employee

Miscellaneous $171.00 $52.70 Per each owner and each
employee

Mobile Food Vendors $171.00 $ — Flat/Annual

Nonresidential Property $171.00 $26.30 Per 1,000 square feet
Rental

Residential Property Rental $171.00 $15.80 Per each unit or space

Parking Lot $171.00 $118.00 Per $1,000 of gross receipts

Pawnbroker $856.90 $ — Flat/Annual

Peddler/Solicitor $171.00 $52.70 Per each owner and each
employee

Professional $171.00 $132.00 Per each owner and each employee

Public Utilities $171.00 $52.70 Per each owner and each
employee

Recreation and Entertainment $171.00 $105.60 Per each owner and each
employee

Retail $171.00 $52.70 Per each owner and each
employee

Secondhand Dealer $856.90 $ — Flat/Annual

Service $171.00 $105.60 Per each owner and each
employee

Towing $171.00 $1.70 Per $1,000 of gross receipts

Warehouse/Storage $171.00 $137.00 Per 1,000 square feet

Waste Disposal Site $171.00 $2.40 Per ton

Annual Base
Business Classification Fee Unit Fee Unit Fee Basis

Wholesale/Distribution — $171.00 $137.00 Per 1,000 square feet
General

Wholesale/Distribution - $171.00 $52.70 Per each owner and each
Large local seller employee, if sales tax
revenue to the City is >
$50,000 based on prior fiscal
year

The business license fees established by this section shall continue to be adjusted annually by an
amount equal to the percentage increase in the Consumer Price Index for All Urban Consumers
(CPI-U) for the San Francisco-Oakland-San Jose metropolitan area, as published by the U.S.
Department of Labor, Bureau of Statistics.

A business license applicant may appeal the fee amount owed by filing a written appeal with the Finance Director within 30 days from the date the fee is first due and payable. The written appeal shall include the facts and circumstances forming the basis for the appeal including, if applicable, the number of employees engaged in the applicant's business and/or the gross receipts of the business. Within 30 days after the appeal is filed, the Finance Director shall adjust the fee owed if he or she determines in his or her sole and exclusive discretion that the fee owed is not calculated correctly.

§ 2-2-510. (RESERVED)

Except for business categories of coin operated devices, waste disposal site and towing of Section 2-2-500, the business license fee levied in accordance with Section 2-2-500 for any business commenced after June 30 of any year shall be reduced by one-half.

For each transfer of ownership of a licensed business or transfer of a licensed business to a new name or location, an applicant shall pay a Fifty Dollar ($50.00) administrative fee for said license and submit a new business license application.

For each duplicate license issued to replace one lost, a licensee shall pay an amount established by the City Council by resolution.

All fees provided for herein shall be payable before the first day of the period for which the license is issued, and shall be delinquent 30 calendar days thereafter, except that all daily, weekly and monthly fees provided for shall be payable in advance and shall be delinquent upon commencing business.

Before issuing any license to any person who has failed to pay the fee within 30 days after the due date, the Finance Director shall assess against and receive from said person a penalty in the amount of 50% of the business license fee or Fifty dollars, whichever is greater. If any person fails to pay the fee within 90 days of the due date, the Finance Director shall assess against and receive from said person a penalty in the amount of 100% of the business license fee or One hundred dollars, which-ever is greater. Any business found to be without a City business license shall be assessed the appropriate annual business license fee plus a penalty of 100% of the business license fee or One hundred dollars, whichever is greater. This same penalty shall apply to every year in which a business has operated without a business license under the same ownership, even if business was previously in a different location.

The Finance Director may, from time to time, establish an amnesty program whereby the City will not impose the penalties set forth in Section 2-2-535 on an existing business where that business has never previously applied for a business license, and has never previously received notice from the City that the business is required to comply with the provisions of this Chapter. No business will be eligible to participate in an amnesty program more than once. No business will be eligible to participate in an amnesty program if it has previously paid a business license tax, or has previously been notified by the City that the business is obligated to comply with this Chapter. The Finance Director is authorized to set the beginning and end dates for a particular amnesty program. No business may participate in an amnesty program outside the term established by the Finance Director.

Notwithstanding anything herein to the contrary, neither the Finance Director or any other City Official is required to send or give any notice or bill to any person subject to the provisions of this Chapter, and failure to send such notice or bill shall not affect the validity of any license fee or penalty levied pursuant to the provisions of this Chapter.

The payment of a license fee required by this Chapter, the acceptance of said fee by the City, or the issuance of the license to any person shall not be construed to entitle the holder thereof to carry on any business which is in violation of any law or ordinance.

If the Finance Director shall make a mistake in levying or collecting the correct amount of the license fee, such mistake or failure shall not relieve the licensee of the obligation to pay the correct fee to the City.

The amount of any license fee and penalty imposed by the provisions of this Chapter shall be deemed a debt to the City; and any person carrying on any business without first having procured a license from the City to do so shall be liable to action in the name of the City, in any court of competent jurisdiction, for the amount of license, penalties, interest and attorneys' fees.

If the fees are not paid when due, such fee, penalty and interest shall constitute an assessment

against the licensee's real property and shall be a lien on the property in the amount thereof, which lien shall continue until the amount thereof including all penalties and interest are paid, or until it is discharged of record.

During July of each year, the Finance Director shall submit to the City Council a report of delinquent charges and fees. A time, date and place for hearing of the report and any objections or protests thereto shall be fixed by the City Clerk. Not less than 10 days prior to the date of such hearing, the Finance Director shall mail written notice thereof to the owner of each of the premises affected thereby, using for this purpose the names and addresses which appear on the last equalized tax assessment roll.

(a) At said hearing the City Council shall hear any objections or protests of owners of premises
liable to be assessed for delinquent charges or fees. The City Council may make such
revisions or corrections to the report as it deems just, after which the report shall be
confirmed by resolution. The delinquent charges and fees set forth in the report as
confirmed shall constitute special assessments against the respective premises and are a
lien on the premises for the amounts of such delinquent charges and fees.

(b) Prior to August 10, a certified copy of the confirmed report shall be filed with the County
Auditor, who shall enter each assessment on the tax roll against the respective premises.
Said assessment shall be collected at the same time in the same manner as ordinary
municipal ad valorem taxes and shall be subject to the same penalties and the same
procedure and sale in case of delinquency as provided for such taxes. All laws applicable
to the levy, collection and enforcement of municipal ad valorem property taxes shall be
applicable to such assessments.

(c) The lien created attaches upon recordation of a certified copy of the confirmed report in the
office of the County Recorder and shall continue until the charges and fees are fully paid.

(d) The Finance Director shall set an administrative fee to reimburse the City for the
administrative costs of placing a lien on a property to collect delinquent charges, fees, and
penalties. This administrative fee shall be added to the delinquent fees and penalties, and
shall be included in the lien.

(e) Any successor business on a premises, whether related to the previous business or an
entirely new business, shall be responsible for all delinquent charges, fees, and penalties
associated with that premises. The successor business has the obligation to determine the
delinquency status of the prior business.

In any action brought under or arising out of any of the provisions of this Chapter, the fact that the person engaged in any business for which a license is required, or that such person exhibited a sign indicating such business, shall be conclusive evidence of the liability of such person to pay for a license for such business.

No business license fee collected under the provisions of the Chapter shall be refundable or prorated in any manner; except if the business subject to the fee establishes to the satisfaction of the Finance Director that it has paid more than once, the fee was erroneously or illegally collected or paid in excess of the correct amount and files a claim with the Finance Director for refund of such over-payment within a period of one year from the date of the overpayment.

No order for a refund under this Chapter shall be made, except on a claim:

(a) Verified by the person who paid the fee, his or her guardian, executor or administrator.

(b) Filed within one year after making the payment sought to be refunded.

The person who paid the fee, his or her guardian, conservator, executor or administrator may bring an action only in the Superior Court against the City to recover a fee which the City has refused to refund or for a claim filed pursuant to this Chapter. No other person may bring such an action; but if another should do so, judgment shall not be rendered for the plaintiff.

If the Court finds that a fee is void in whole or in part, it shall render judgment for the plaintiff for the amount of the fee paid or portion thereof that is found to be void. The fee or a portion thereof not found to be void shall constitute a valid business license fee which shall carry penalties, interest and costs for delinquency.

Article 6

(Reserved)(Legislative History: Article 6, Vehicle Stickers, previously codified herein and derived from Ordinance No. 87-022, 12/7/87, was repealed in its entirety by Ordinance No. 91-022, 11/18/91)

Article 7

Exemptions(Legislative History: Ordinance No. 72-066, 11/27/72; Ordinance No. 73-021, 2/ 26/73; Ordinance No. 73-026, 4/9/73; Ordinance No. 73-028, 4/16/73; Ordinance No. 78-054, 11/6/78; Ordinance No. 81-018, 4/14/81; Ordinance No. 82-029, 5/3/82; Ordinance No. 87-022, 12/7/87; Ordinance No. 93-027, 12/20/93 (Sections 2-2-700—2-2-720); Ordinance No. 94-027, 12/5/94 (Sections 2-2-700—2-2-720); Ordinance No. 95-020, 11/6/95 (Sections 2-2-700—2-2-720))

§ 2-2-700. (RESERVED)

Any person who submits, together with the license application, documentary evidence adequate to prove that the gross receipts from the business for which the license application is submitted was, for the immediately preceding license period, Five thousand dollars or less, shall be exempt from one-half of the license fee which would otherwise be levied pursuant to Section 2-2-500.

This Chapter shall not apply to any business exempt from payment of business license taxes or fees by virtue of the Constitution of the United States or the State of California.

Any veteran who is unable to perform manual labor due to any physical disability may peddle goods and merchandise without payment of the fee prescribed in Section 2-2-500.

This Chapter shall not apply to any institution, corporation, organization or association which currently has an exemption from the payment of Federal income taxes under Section 501 of the Federal Internal Revenue Code as amended from time to time and/or exemption from the payment of State income taxes under Section 23701 et seq., of the California Revenue and Taxation Code as amended from time to time.