Santa Ana Municipal Code § 21-1 Short title; purpose—Defined

This chapter shall be known as the "Business License Tax Code." It is enacted solely to raise revenue for municipal purposes and is not intended for regulation.

(Ord. No. NS-1922, § 1, 7-20-87)

Whenever any words or phrases used in this Chapter are not defined herein but are defined elsewhere in this Code, such definitions are incorporated herein and shall apply to such words and phrases used in this Chapter unless the content clearly indicates a different intent.

(Ord. No. NS-1922, § 1, 7-20-87)

As used in this Chapter, the following words, terms, or phrases shall have the meaning hereinafter set forth:

Annualization shall mean an estimation, extended for a twelve (12) month period, based on reported gross receipts for a prior period of less than twelve (12) months.

Applicant shall mean any person who applies for a license or a license renewal under the provisions of this Chapter.

Automobile dismantler shall mean any person who has an established place of business and is engaged in the business of buying, selling, or dealing in vehicles of a type required to be registered pursuant to Section 220 of the California Vehicle Code, as the same now exists or as hereafter amended, for the purpose of dismantling the same, who buys or sells the integral parts and component materials thereof, in whole or in part, or deals in used motor vehicle parts. This section does not apply to the occasional and incidental dismantling of vehicles by dealers who have secured dealers' plates from the California Department of Motor Vehicles and whose principle business is buying and selling new and used vehicles, or by owners who desire to dismantle not more than three (3) personal vehicles within any twelve (12) month period.

Builder-owner shall mean any person employing subcontractors, specialty contractors, general engineering contractors, or workers under his or her supervision and direction by the hour or day, for the purpose of constructing improvements on real property owned by him or her within the city; such person shall be taxed herein the same as a contractor unless his or her only building activity is constructing on his or her property a single family dwelling unit or addition thereto which will be used in whole or in part for the purpose of his or her own occupancy for a period of not less than one year. Proof of the sale or offering for sale of any such structure by the builder-owner within one year after completion of same is presumptive evidence that such structure was undertaken for purpose of sale. Provided, however, that any person holding a state contractor's license pursuant to Sections 7056, 7057, and 7058 et seq. of the California Business and Professions Code, as the same now exists or as hereafter amended, shall be considered a contractor.

Building and loan shall mean any person who for a fee engages in the loan of money upon personal security, automobile, or any personal property, evidences of debt, or purchases automobile contracts, commercial paper, assignments of salary, salary warranty, salary demands, time checks, or other evidences of salary due or to become due, or automobile paper. The term building and loan as used in this Chapter includes savings and loans, but does not include pawnbrokers or the holder of a bond brokers license, or any person conducting a banking business under the laws of the state or any person subject to the state corporate income tax as a financial corporation.

Building-tradesman shall mean any person engaged within the city as an independent contractor in any trade, art, calling, avocation or occupation of the building trades and not licensed as a contractor by the state.

Business shall include all activities engaged in or caused to be engaged in within the city, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, including rental of residential or commercial real estate, and every other kind of activity whether or not carried on for gain or profit, and whether or not engaged in as a principal or as an independent contractor, but shall not include the services rendered by an employee to his employer.

Business license receipt shall mean the receipt required to be posted or displayed as evidence of a business' payment of the tax required by the provisions of this Chapter and shall herein be referred "license receipt" or "license" except as otherwise specified.

Business license tax shall mean the privilege tax paid as required by the provisions of this Chapter and shall herein be referred to as "business or license tax" or "fee" except as otherwise specified.

Charge shall mean any fee fixed herein which is intended solely to cover the reasonable administrative cost incurred in performing any specified act on behalf of any person or at any person's request for which said person shall be liable except as otherwise specified hereinafter.

Coin-operated machine or device shall mean any machine or device that dispenses a product, or provides a service, or utility or amusement; resulting from insertion or use of a coin, slug, token, plate, disc, plug, key, check or other device, or money, or thing of value.

Collector shall mean the finance director or other city officer charged with the administration of this Chapter.

Commission agent, broker or merchant shall mean any person engaged in the business of buying and selling of goods, wares, or merchandise for the owner or consignee thereof for a fee or commission, whether or not the operation of such business customarily includes the actual possession, custody or control of goods, wares or merchandise to the extent that such person (1) does not engage in the business of manufacturing, refining, fabricating, milling, treating or other processing of the goods, wares or merchandise bought and sold, and does not cause said goods, wares or merchandise to be manufactured, refined, fabricated, milled, treated or otherwise processed; (2) does not obtain or retain title to said goods, wares or merchandise except during one or more of the following situations: while such goods, wares or merchandise are actually in transit, or for short periods of time before transportation commences or after it ceases; and (3) does not store or warehouse such goods, wares or merchandise except during one or more of the following situations: while such goods, wares or merchandise are actually in transit, or for short periods of time before transportation commences or after it ceases.

Contractor shall mean any person who is licensed as a contractor by the State of California and who undertakes to or offers to undertake to or purports to have the capacity to undertake to or submits a bid to, or does himself or by others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith. The term contractor as used in this Chapter includes general engineering contractor, general building contractor, specialty contractor and subcontractor except as otherwise specified herein.

Cost of doing business shall mean that amount which is equivalent to the volume of business performed, where the business of any local office, facility, agent, broker or employee is that of performing administrative or management related services in connection with sales or services performed or rendered elsewhere. Said amount shall be computed by determining the total cost of maintaining said local office, facility, agent, broker or employee. Said total cost of maintaining said local office, facility, agent, broker or employee shall include, but is not limited to, the wages, salaries, commissions, bonuses, rent, and/or depreciation, telephone, postage, utilities, janitorial and other expenses allocated for maintenance of said office, facility, agent, broker or employee.

Cost of said premises shall mean that amount which is equivalent to the cost directly related to maintaining any single-family residential rental property or other undivided single residential rental premises where said cost is shared between the owner or leaseholder and any other individual or individuals as co-residents or where said cost is borne by an immediate relative related by blood, adoption or marriage as resident. The term immediate relative as used herein shall be limited to the following classes of individuals: mothers and fathers, grandmothers and grandfathers, sons and daughters, grandsons and granddaughters, brothers and sisters, and husbands and wives. Said amount shall include, but is not limited to: mortgage costs, title and homeowner property insurance premiums, property taxes, homeowner or condominium association costs; other costs or expenses arising from contractual obligations relating to maintaining ownership or leasehold interest in said premises; and the cost of utilities, maintenance or other related services for which the owner or leaseholder is liable.

Disabled veteran shall mean any honorably discharged member of the armed forces of the United States, who is physically unable to obtain his livelihood by means of manual labor and who is a qualified voter of the state.

Employee shall mean all individuals who are engaged in the operation or conduct of any business and whose consideration for services rendered is in the form of a regular salary or wage.

Engaged in business shall mean the transacting and carrying on, managing or operating of a business whether done as owner or by means of an officer, agent, manager, employee or lessee.

Fixed place of business shall mean the premises primarily occupied for the particular purpose of conducting the business thereat and regularly kept open for that purpose with a competent person in attendance for the purpose of attending to such business, except that an auto-car wash, auto-laundromat or similar self-service business shall be considered a "fixed place of business" whether or not anyone is in attendance, and a warehouse shall be considered a "fixed place of business" whether or not anyone is in attendance and whether or not the premises is regularly kept open.

Flat rate or flat rate tax shall mean a fixed amount assessed per business location or, alternatively, a fixed amount assessed for the privilege of engaging and transacting in business activity within the city from place to place.

General contractor shall include any general building contractor or general engineering contractor or any other person who is licensed pursuant to Sections 7056 and/or 7057 of the California Business and Professions Code as the same now exists or as hereafter amended.

Gross receipts shall include the total amount of the sale price of all sales and the total amount charged or received 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 a part of or in connection with the sale of materials, goods, wares or merchandise. The following shall be included in "gross receipts": all receipts, rents, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of property sold, the cost of materials used, labor or service cost, interest paid or payable, or losses or other expenses whatsoever.

The following shall be excluded from "gross receipts":

(a) Cash discounts allowed and taken on sales;

(b) Credit allowed on property accepted as part of the purchase price and which property may later be sold;

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

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

(e) Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them, other than amounts received as commissions or fees earned, or charges of any character made or compensation of any character received for the performance of any service as agent or trustee; provided that any agent or trustee dealing in stocks or other similar written instruments evidencing a right to participate in the assets of any business, or dealing in bonds or other evidences of indebtedness, who also deals in such property as a principal, shall include in the gross receipts by which the tax is measured the amount of his or her trading profits resulting therefrom. No deduction from receipts attributable to trading as a principal shall be made unless such deduction is provided for in this section;

(f) The difference between the balance owed and paid on a defaulted purchase or finance contract upon repossession by seller and the amount received from resale of the repossessed article by the repossessing seller;

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

(h) As to alcoholic beverages, that portion of the receipts of a manufacturer, transporter, retailer or wholesale distributor generated or otherwise collected from the manufacture, transport, retail or wholesale of intoxicating liquors within the state pursuant to Article XX, Section 22 of the State Constitution;

(i) As to a retail gasoline dealer, a portion of his or her receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and previously paid under the provisions of Part 2 of Division 2 of the State Revenue and Taxation Code, as the same now exists or as hereafter amended;

(j) As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code, as the same now exists or as hereafter amended, if paid by the dealer or collected by him or her from the purchaser;

(k) Cash value of sales, trades, transfers or other transactions as made between separate departments, divisions or units of any single business entity;

(l) Sales for convenience where sales of new goods, wares or merchandise are made by a person engaged in selling such articles to another person engaged in selling like or similar articles:

(1) Where the primary purpose of the particular transaction of sale is to accommodate the purchaser rather than to make a sale in the ordinary course of business and the price paid is essentially the book value of the article;

(2) Where, in the particular kind of business involved, a similar manner of dealing is frequent or customary in the circumstances under which the particular sale is made; and

(3) Where goods, wares or merchandise of like or similar kind and of substantially equivalent value to that which was sold is received in consideration.

As to general contractors and other similar businesses, "gross receipts" shall not include that portion of the receipts of a general contractor which represents payments to subcontractors, provided that such subcontractors are licensed under this Chapter and provided the general contractor furnishes the collector upon request with the names and addresses of the subcontractors and the amounts paid to them.

As to bail bond brokerages, commission agent brokerages, mortgage brokerages, real estate brokerages, securities brokerages, travel agencies, and other similar businesses employing agents, brokers and/or commissioned employees, "gross receipts" shall include the total gross commissions or other receipts attributable to the local office, agents, brokers and/or employees.

As to accountants, architects, attorneys, chiropractors, doctors, dentists, optometrists, podiatrists, psychologists, veterinarians and other professionals, either practicing solely or in partnership or as a professional corporation, "gross receipts" shall include the total gross fees or other receipts attributable to services performed or otherwise rendered within the city.

As to other persons having a fixed place of business within the city and providing a service or plying an occupation or trade or involved in similar businesses, "gross receipts" shall include the total fees, commissions or other receipts attributable to that local location and/or employees.

As to a business established outside the city but maintaining a local office or establishment or facility, within the city through an agent, broker or employee, "gross receipts" shall include the total sales or receipts attributable to the local office or establishment or facility, agent, broker or employee.

As to a business established outside the city but transacting and carrying on business within the city, or otherwise performing or rendering services negotiated or contracted for within the city, whether or not by a principal or through an agent or employee, "gross receipts" shall include the total fees, commissions or other receipts attributable to the business activity conducted.

As to any business, whether established within or established outside the city, in the event separate sales or receipt records are not maintained for a local office or establishment or facility, agent, broker or employee, or in the event any retailing, wholesaling, manufacturing or processing activity conducted thereat does not generate gross receipts as hereinabove defined, or in the event said local office or establishment or facility, agent, broker or employee is engaged in providing administrative or management related services, to include, but not limited to, record keeping, data processing, research and development, advertising, public relations, personnel administration or legal services, in connection with sales or services performed or rendered elsewhere, the business tax shall be based upon an amount which bears the same proportion to the total gross receipts of the business which cost of maintaining said local office, facility, local agent, broker or employee bears to the total cost of maintaining said business. Alternatively, at the election of an applicant or licensee, the business tax may be based on an amount equivalent to the cost of maintaining said business without reference to the total gross receipts of the business. As used herein the phrase "cost of maintaining said business" shall have the same meaning as "cost of doing business".

Independent contractor shall mean any natural person other than a state licensed contractor, who is engaged to aid in the business of any other person, whether as a professional as defined hereinbelow or whether pursuant to any license, certificate or registration authorized by the California Business and Professions Code, as the same now exists or as hereafter amended, or whether with regard to any other trade, skill or occupation, and who receives remuneration either through commission or pursuant to any contract of employment which excludes regular wages or salary, or in any other manner other than through regular wages, salary or a direct participation in the profits of the business.

Insurance agent shall mean any person, including bailbond agents, directly authorized by and on behalf of an insurer to transact insurance and to bind the insurer in the execution of insurance policies.

Insurance broker shall mean any person, including bailbond brokers, who, for compensation and on behalf of another person, transacts insurance other than life with, but not on behalf of, an insurer.

Insurance solicitor shall mean a natural person employed to aid an insurance agent or insurance broker in transacting insurance other than life.

Itinerant merchant shall mean any person who engages in a temporary or transient business in the city, selling or offering for sale goods, wares, merchandise or things or articles of value, with the intention of conducting such business in the city for a period of not more than ninety (90) days in any calendar year and who, for the purpose of carrying on such business, hires, leases or occupies any room, doorway, vacant lot, building or structure for the exhibition or sale of goods, wares or merchandise, or who associates temporarily with any local dealer, trader, merchant or auctioneer, or who conducts such temporary or transient business in connection with or as a part of or in the name of any local dealer, trader, merchant or auctioneer.

Junk collection shall refer to the use of any vehicle by any person for the purpose of traveling from place to place or from street to street to purchase and collect any rags, bottles, papers, cans, metals or other junk.

Junk dealer shall mean any person having a fixed place of business in the city engaged in the business of buying or selling, either at wholesale or retail, any rags, bottles, papers, cans, metals or other junk.

Junk salvager, junk collector or junk recycler shall mean any person at a fixed place of business in the city engaged in the business of carrying on or collecting, buying or selling at either retail or wholesale or otherwise dealing in junk and/or rubbish, waste material, refuse and/or any rags, sacks, bottles, papers, cans, metals, rubber, cordage, tires and other like articles, whether the same can be sold or otherwise disposed of for the purpose of being treated, repaired or prepared so as to be used again in some other form.

Junk yards, automobile wrecking yards, and salvage yards shall include any space of two hundred (200) square feet or more of area of any lot used for the storage, sale, keeping or abandonment of inoperable vehicles, junk or waste material, including scrap metal or other scrap materials, or for the dismantling, demolition or abandonment of automobiles, other vehicles, machinery or parts thereof, other than an impound yard.

Leaseholder or leasehold interest as applied to any real property shall mean any person who possesses or shares an estate in realty held under lease. As applied to any dwelling, building, structure, premises or portion thereof located on such real property, the term "leaseholder" and/or "leasehold interest" shall mean any person who possesses or shares in a contract for exclusive possession or control of any such dwelling, building, structure, premises or portion thereof for a limited time.

Leaseholder-lessor as applied to commercial or residential real estate shall mean any person who, while in possession of a leasehold or leasehold interest in any commercial or residential real estate, acts as a lessor by engaging in the subleasing, subletting, providing, exchanging or trading of any such real property, dwelling, building, structure, premises or portion thereof without loss of leasehold.

Licensee shall mean any person who holds a valid, current business license issued to that person under this Chapter.

Life agent shall mean any insurance agent authorized, by and on behalf of a life, disability or life and disability insurer, to transact life, disability or life and disability insurance.

Life and disability insurance analyst shall mean a person who, for a fee or compensation of any kind, paid by or derived from any person or source other than an insurer, advises, purports to advise, or offers advice to any person insured under, named as a beneficiary of, or having an interest in, a life or disability insurance contract, in any manner concerning that contract or his or her rights in respect thereto.

Manufacture or process shall embrace all the activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful article of tangible personal property or substance of trade or commerce is produced and shall include the production or fabrication of specially made or custom made articles.

Manufacturer shall mean any person who, directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from his or her own materials or ingredients any articles, substances or commodities.

Owner, ownership, or ownership interest as applied to any real property shall include the legal property owner of record as recorded by the office of the county assessor and in addition thereto shall include, whether recorded or unrecorded, any owner, any part owner, joint owner, tenant in common, tenant in partnership, joint tenant, or tenant by the entirety, copartnerships of the whole or of a part of such real property, or a person having an interest in community property as a member, or former member, of the community. As applied to any dwelling, building, structure or premises located on such real property the term "owner," "ownership," or "ownership interest" shall include the legal owner, and in addition thereto shall include any part owner, joint owner, tenant in common, tenant in partnership, joint tenant, or tenant by the entirety, copartnerships of the whole or of a part of such dwelling, building, structure or premises, or a person having an interest in community property as a member, or former member, of the community.

Owner-lessor as applied to commercial or residential real estate shall mean any person who, while an owner or while having an ownership interest in any commercial or residential real estate, acts as a lessor by engaging in the leasing, renting, providing, exchanging or trading of any such real property, dwelling, building, structure, premises or portion thereof without loss of ownership.

Pawnbroker shall mean any person conducting, managing or carrying on the business of loaning money either for himself or herself or for any other person, upon any personal property, personal security, or purchasing personal property and reselling or agreeing to resell such property to the vendor or other assignee at prices previously agreed upon. Nothing in this section shall be deemed to apply to the loaning of money on personal property or personal security by any bank authorized to do so under the laws of the state or of the United States.

Peddler shall mean any person who sells and makes immediate delivery or offers for sale and immediate delivery any goods, wares, merchandise, service or thing in possession of the seller, at any place in the city other than at a fixed place of business, and shall include any person who sells or offers for sale any food or produce from a pushcart or other nonvehicular device but shall not include salespersons or agents for wholesale houses or firms who sell to retail dealers for resale or sell to manufacturers for manufacturing purposes or to bidders for public works or supplies.

Person shall include, without limitation, all domestic and foreign corporations of any kind, all firms and companies (holding, joint stock, private, public, parent, pass-through, professional, operating, operating property, non-profit, subordinate and subsidiary), partnerships of every kind including but not limited to (general partnerships, limited partnerships, master limited partnerships, limited liability partnerships, limited liability limited partnerships, professional partnerships, and publically traded partnerships), private trusts, Massachusetts business or common law trusts, real estate investment trusts, royalty trusts, estates, associations, syndicates, clubs, joint ventures, unincorporated business organizations, limited liability companies of every kind including but not limited to (sole member limited liability companies, multi member limited liability companies, non-profit limited liability companies, and series limited liability companies), cooperatives, all other types of business entities defined or authorized under federal and state laws, receivers, trustees, guardians or other representatives appointed by order of any court, and any natural individuals transacting and carrying on any business in the city other than as an employee.

Premises shall include all lands, buildings, accessory buildings or structures erected or modified, equipment and appurtenances connected or used therewith, and any personal property affixed to or otherwise used for the purpose of transacting and carrying on any business on such premises.

Processor shall mean any person engaging in the business of converting an article, substance or commodity into marketable form for the purpose of resale by changing its physical form or chemical composition.

Professional shall mean any person, including any professional corporation, wherever located, engaged in or carrying on within the city any profession requiring satisfactory compliancy with written and/or oral examination standards adopted by a branch of the state or federal government and/or requiring a certain amount of tenure with such branch of government; such professions to include but not be limited to: architect (all types), attorney, accountant (all types), audiologist, chiropractor, clinical social worker, dentist, drugless practitioner, electrologist, engineer (all types), geologist, herbalist, marriage, family and child counselor, mortician, naturopath, optician, optometrist, osteopath, physician (all types), podiatrist, psychologist, registered nurse (as shareholder in a professional corporation), speech pathologist, surveyor, veterinarian.

Professional corporation shall mean any corporation organized under the California General Corporation Law which is engaged in rendering professional services in a single profession, or as otherwise authorized pursuant to Section 13400 et seq. of the California Business and Professions Code, as the same now exists or as hereafter amended, and which in its practice or business designates itself as a professional or other corporation as may be required by statute.

Property or real property as applied to commercial or residential real estate shall mean recorded assessor's property parcel, as identified by county assessor's parcel number.

Real estate agent shall mean any person licensed as such by the state and engaged wholly or in part in transacting and carrying on the sale of real estate.

Real estate broker shall mean any person licensed as such by the state and engaged wholly or in part in transacting and carrying on the sale of real estate including soliciting or offering to buy, sell or lease real property for others; negotiating and collecting loans for borrowers or lenders; dealing in real property sales contracts and promissory notes; receiving advance fees for real estate listings; and dealing in real estate syndicate securities.

Real estate developer shall mean any person conducting, managing or transacting and carrying on the business of acquiring, subdividing, improving, selling, renting and otherwise dealing in and disposing of or developing real property for commercial, industrial, residential or nonresidential purposes including, but not limited to, one who constructs improvements upon real property for commercial, industrial, residential or nonresidential purposes with the object of selling, renting or developing it for his or her own use.

Recreational services shall mean any person engaged in the business of providing facilities for recreational use; such services to include, but not be limited to: amusement machine arcades, bowling alleys, driving ranges, golf courses (including miniature), motion picture theaters (including drive-in), pool halls (including billiards and snooker), riding stables, skating rinks, social clubs, sports clubs (including spas, health clubs and conditioning gyms), swimming pools and tennis and racket clubs.

Rental of commercial real estate shall include every person, whether as an owner-lessor or leaseholder-lessor, engaged in the business of leasing, renting, subleasing, subletting, providing, exchanging or trading without loss of ownership or leasehold any real property, dwelling, building, structure, premises or portion thereof for industrial, commercial, office, warehouse or other entrepreneurial uses or purposes other than for the immediate use or purpose of dwelling, sleeping, lodging or general residency. Provided, however, that the leasing, renting, subleasing, subletting, providing, exchanging or trading without loss of ownership or leasehold of any real property, dwelling, building, structure, premises or portion thereof to another for the purpose of their independent commercial operation of an apartment building, apartment house, boarding house, guest house, mobile home park, nursing home, residential care facility, rooming house, or hotel or motel thereat shall be deemed to constitute a rental of commercial real estate.

The license tax for the rental of commercial real estate shall be assessed per property, and liability for said tax shall be determined by owner's-lessor's ownership of, or leaseholder's-lessor's leasehold interest in, said property. Independent property management agents acting for property owners-lessors or property leaseholder-lessors are responsible for payment of the license tax on the rental of such property, if the owner-lessor or leaseholder-lessor of said property has not paid the tax when due and payable and, in addition, are subject to the license tax as a separate business.

Provided, however, that where any one dwelling, building, structure or premises is comprised of one (1) or more contiguous properties, then the owner-lessor or leaseholder-lessor owning or controlling said building, structure or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment. Further provided that where an owner-lessor or leaseholder-lessor owns or controls two (2) or more separate buildings, structures or premises located on the same property, or two (2) or more buildings, structures or premises located on separate but contiguous properties, then the owner-lessor or leaseholder-lessor owning or controlling said buildings, structures or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment.

Rental of residential real estate shall include every person, whether as an owner-lessor or leaseholder-lessor, engaged in the business of leasing, renting, subleasing, subletting, providing, exchanging or trading without loss of ownership or leasehold any real property, dwelling, building, structure, premises or portion thereof, except for any hotel or motel, for the immediate purpose of dwelling, sleeping, lodging, boarding or other such occupancy, accommodation or general residency.

The license tax for the rental of residential real estate shall be assessed per property, and liability for said tax shall be determined by owner's-lessor's ownership of, or leaseholder's-lessors's leasehold interest in, said property. Independent property management agents acting for property owner-lessors or property leaseholder-lessors are responsible for payment of the license tax on the rental of such property, if the owner-lessor or leaseholder-lessor of said property has not paid the tax when due and payable and, in addition, are subject to the license tax as a separate business.

Provided, however, that where any one dwelling, building, structure or premises is comprised of one (1) or more contiguous properties, then the owner-lessor or leaseholder-lessor owning or controlling said building, structure or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment. Further provided that, where an owner-lessor or leaseholder-lessor owns or controls two (2) or more separate buildings, structures or premises located on the same property, then the owner-lessor or leaseholder-lessor owning or controlling said dwellings, structures or premises may, upon submission of acceptable documentary proof thereof, obtain a single consolidated business license tax assessment.

Nothing in this section shall be construed to require the payment of a business license tax where any owner or leaseholder resides in a single-family residence or other undivided single residential rental premises and participates with one (1) or more other co-residents in the shared cost of said premises. Neither shall this section be construed to require the payment of a business license tax for the rental of a single-family residence or other undivided single residential rental premises as between an owner or leaseholder and any individual immediately related by blood, adoption or marriage to said owner or leaseholder, where the remuneration rendered to said owner or leaseholder does not exceed the cost of said premises.

Eligibility for the business license fee exemption herein provided is restricted to owners or leaseholders who are natural persons and whose ownership of or leasehold interest in said residential rental property is undivided. An owner or leaseholder claiming a license fee exemption hereunder shall have the burden of furnishing to the collector such information as the collector may require to support the claim of eligibility for exemption.

Nothing in this section shall be construed to relieve any person who is eligible for or claims to be eligible for exemption from payment of any required residential rental property business license fee from the requirement to obtain said business license in the same manner and at the same time as is required under the terms of this Chapter of all other persons applying for a business license, and such person shall be subject to the same procedures for enforcement and for penalties as provided herein.

Rental unit shall mean the smallest accommodation for which a fee is charged or received.

Retailer shall mean any person engaging in the business of selling goods, wares or other merchandise to consumers or end-users thereof.

Revenue officer shall mean the duly authorized agent of the collector charged with assisting the collector in the exercise of the duties imposed upon him or her hereunder.

Sale shall include 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 as 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 contemplation of law.

Sale at retail and retail sale shall mean every sale of tangible personal property (including articles produced, fabricated or imprinted) other than sale to one who (1) purchases for the purpose of resale as tangible personal property in the regular course of business, or (2) purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component, or as a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale.

Sale at wholesale and wholesale sale shall mean any sale of tangible personal property which is not a "sale at retail." Sales otherwise classified hereinabove as "retail sales" may, nevertheless, be classified as "wholesale sales" under this section, if the vendor can establish to the satisfaction of the collector that the sale was made to a government agency, public utility, manufacturer, processor or contractor who consumed the articles in the course of his or her own operations and did not offer the articles for resale to the general public except as an integral part of manufacturing, construction or service.

Service fee shall mean a fixed fee, specified by resolution of the city council, which is intended solely to cover the reasonable administrative costs incurred in redeeming dishonored or stopped payments, in performing audits, collections, inspections, investigations, and the administrative enforcement of this Chapter and adjudication thereof.

Services shall mean the business of providing, maintaining or performing labor for the benefit of another within the city; of supplying some general demand for the benefit of another within the city which does not produce a tangible commodity; or furnishing of services and all activities in which any person for any other person performs any personal service and all services in which any real or personal property, stocks or bonds, or other financial instruments or evidences of debt, or contracts of insurance or any money or credits are exchanged, leased, transferred or loaned; as well as every business of maintaining, storing, cleaning, improving or repairing tangible commodities within the city whether or not such business is conducted from a premises, vehicle or mobile location within or outside the city. Services include recreation services but do not include theatrical performances, exhibitions or temporary amusements, nor do they include professional services or telephone services within the terms of this Chapter.

Solicitor shall mean any person who engages in the business of going from house to house, place to place, on or along the streets, within the city and/or by telephone, soliciting any opinions, preferences, endorsements or other information, or selling or taking orders for or offering to sell or take orders for goods, wares or merchandise or other things of value for future delivery or for services to be performed in the future.

Stock broker and bond broker shall mean any person engaged in the business of buying or selling federal, state, county or municipal stocks or bonds, or stocks and bonds of partnerships or other incorporated entities, or evidences of indebtedness of private persons, partnerships or of incorporated entities, for a fee or commission.

Sworn statement shall mean an affidavit sworn to before a person authorized to take oaths, or a declaration, certification, or verified affidavit made under penalty of perjury.

Telephone services shall mean any person engaged in the business of providing telephone services as a "telephone company" pursuant to Article XIII, Section 19 of the State Constitution.

Transact and carry on means to repeat, or intend to repeat, or to continue and includes:

(a) The maintaining, operating, managing or being in control of, or right to make use of directly or remotely, any office, store, warehouse, factory, establishment, premises, location or place:

(1) Having one (1) or more telephones listed for any business activity in any classified telephone directory or in the classified Section of any consolidated telephone directory, or in any combined online directory or internet/web based listing service,

(2) Having computers or other computing devices used to maintain one (1) or more internet websites or webpages or maintaining internet/web based advertising,

(3) Having in use in connection with any business one (1) or more counters, desks, chairs, tables, filing cabinets, typewriters, adding or calculating machines, computers, servers, printers, scanners, fax machines or other articles of office equipment,

(4) At, from, or in which any processing, manufacturing, supervising, administration, management, research, sales or sales promotion, peddling, solicitation, warehousing, distributing, routing, delivery, mail or package receipt, recycling, dispatching, billing, collection, accounting, computing, product development, software development, testing, storage, record-keeping or other activity is conducted in connection with any business,

(5) In or at which one (1) or more persons may, for any valuable consideration intended to result, or that results, in any livelihood, financial profit or commercial gain to any person, receive any instruction, advice, treatment or examination, or any service upon their person, or any repair, refinishing, renewing, cleaning, or other improvement to, or of, any personal property,

(6) In which any letter, announcement, advertisement, circular, handbill, newspaper, agreement, contract, instruction, legal instrument, government required registration, permit or license, tax filing statement, financial statement, statement of account, financial record, or any other instrument or record is written, printed, reproduced, published, prepared or kept in connection with any business,

(7) From which any circular, handbill, newspaper, announcement, statement of account, card or letter is sent or distributed, in writing, or any contract is made, in person or by telephone, in connection with any business,

(8) Upon any exterior side, wall, window, door, roof or other portion, or in the proximity of which, there is maintained any sign, lettering, announcement or advertisement indicating that such office or place is one (1) in, at or from which any article exists, or any act is performed in connection with any business;

(b) The repeated or continuous offering, or contracting, orally or in writing, in connection with any business:

(1) To sell or rent one (1) or more articles, or one (1) or more rooms, apartments, portions or parcels of any real or personal property, or

(2) To transport any person or personal property, or

(3) To perform any service;

(c) In connection with any business, the repeated or continuous:

(1) Sale or renting of one (1) or more articles or parcels of real or personal property, or

(2) The transporting of any person or property, or

(3) The performance of any service;

(d) The repeated parking, servicing, replenishing or maintaining of any delivery vehicle, catering truck, junk collection vehicle, pushcart or wagon within the city, whether or not on the premises of another, when done in connection with the permanent painting or inscribing or affixing of said address on the surface of said pushcart, vehicle or wagon;

(e) The performance, in connection with any business, of any single act, with intent to repeat or continue the performance of such act.

Variable flat rate or variable flat rate tax shall mean a fixed scale of amounts whose sum is variable depending on the number or other factor furnishing the basis for determination of the license tax. The term variable flat rate or variable flat rate tax as used in this Chapter includes any tax based on the number of persons engaged or employed in a business.

Vehicle means 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.

Vending operations means any business conducted or carried on by any person engaged in the business of operating coin-operated machines or devices on the premises of another or in the business of owning, renting, leasing, lending, or otherwise distributing or supplying coin-operated machines or devices while retaining title thereto. Such machines include, but are not limited to, vending, amusement, service and telephone machines.

Wholesaler shall mean any person engaging in the business of selling goods, wares, merchandise or other products for the purpose of resale and not to consumers or users thereof.

Utility and public utility mean any person furnishing the public with communication, water, light, heat or power, subject to regulation by the Public Utilities Commission of the State of California.

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 1, 3-6-89; Ord. No. NS-2064, § 1, 6-18-90; Ord. No. NS-2841, §§ 3, 4, 2-4-13)