Santa Ana Municipal Code § 21-119 Gross receipts tax rates

The tax for any license required by any section of this Chapter shall be set forth in this article for the particular business involved. The tax and the duration of the license shall be annual, quarterly, monthly, and daily as indicated in this article. The letter "A" following the tax shall indicate an annual rate; the letter "Q" shall indicate a quarterly rate; the letter "M" shall indicate a monthly rate; the letter "D" shall indicate a daily rate. No letter following the tax shall indicate a variable duration as determined in connection with other applicable provisions set forth elsewhere in the Santa Ana Municipal Code. In place of a tax, the letter "C" shall denote a specified charge. The applicability of the charge shall be determined by the Business License Tax Code provision establishing it. In the place of either a tax or charge, the letter "T" shall denote a specified qualifying threshold amount. The applicability of the qualifying threshold amount shall be determined by the Business License Tax Code provision establishing it.

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

(a) A license tax for a new business shall be paid in advance or a deposit taken in lieu thereof prior to any new business activity being undertaken.

(b) All new businesses for whom flat fees are made the basis for fixing the amount of such license shall pay in advance an amount equal to one-quarter (¼) of the annual fee therefor for each quarter and fraction of a quarter remaining during the period for which the new license is issued, except as otherwise specified hereinafter.

(c) All new businesses for whom the gross receipts of such business are made the basis for fixing the amount of such license shall pay their annual fee based on actual gross receipts received during the period for which the new license is issued. For any business which is commenced subsequent to April first, the renewal fee shall be based upon an annualization of the actual gross receipts received during the period for which the new license is issued. In the event an applicant fails to submit a report of the actual gross receipts received pursuant to Section 21-77, the fee shall be based on the collector's estimate of the actual gross receipts received pursuant to Section 21-79. In lieu of payment in advance, each applicant shall post a deposit in the amount hereinafter indicated.

(1) All new businesses beginning business on or after April first of the current year but before April first of the following year shall post a deposit of two hundred dollars ($200.00).

(2) All new businesses beginning business on or after March first of the current year but before April first of current year shall post a deposit equivalent to one and one-twelfth (1 1/12 ) of the required deposit for all new businesses beginning April first.

Where an applicant's fee is determined to be in excess of the amount of the specified deposit, said deficiency shall be added without interest or penalty to the amount of the applicant's renewal fee as calculated pursuant to Sections 21-77 or 21-79. Where an applicant ceases to transact and carry on the business licensed on or before the expiration of the period for which the new license is issued, and where the applicant's fee is determined to be in excess of the amount of the specified deposit, the applicant shall remain liable for said deficiency which shall be deemed due and collectible at the same time and in the same manner as all other annual gross receipts fees due and payable upon renewal.

Where an applicant's fee is determined to be less than the amount of the specified deposit, said surplus shall be applied without interest as a credit against the amount of the applicant's renewal fee as calculated pursuant to Sections 21-77 or 21-79. Where an applicant ceases to transact and carry on the business licensed on or before the expiration of the period for which the new license is issued, and where the applicant's fee is determined to be less than the amount of the specified deposit, said surplus may be requested by applicant as a refund; provided, however, that such request must be made in writing and must be made within one (1) year of the expiration of the initial license period.

(d) Notwithstanding subsection (b) above, unless an adjustment or exemption is obtained pursuant to this Chapter, the minimum tax pursuant to this section shall be in the amount as specified in Section 21-120n.

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 3, 7-15-91; Ord. No. NS-2161, § 8, 6-15-92; Ord. No. NS-3031, § 5, 11-8-22)

(a) All new businesses located elsewhere, excluding businesses engaged in the business of pushcart vending or in erecting, maintaining and selling of advertising space on off-premises commercial advertising signs in the city or engaged in the operation of coin-operated machines or devices, or engaged otherwise in vending operations, but transacting and carrying on business in the city, and for whom flat rates or variable flat rates are made the basis for fixing the amount of such license, shall have the option of paying the flat rate or variable flat rate amount or basing the amount of their tax upon their attributable gross receipts in accordance with Section 21-119(1), to which no basic tax rate amount shall be added, but for which a two-hundred-dollar-annual deposit shall be required to offset any tax due should applicant cease operation before the expiration of the license term. Provided further that all such businesses who so elect shall pay in advance an amount therefor as set forth in Section 21-117, subsection (c) above. Said deposit to be applied as a credit or to be taken as a refund in the same manner as is set forth in Section 21-117, subsection (c).

(b) All new businesses located elsewhere, but transacting and carrying on business in the city for whom gross receipts are made the basis for fixing the amount of such license, shall base their tax upon attributable gross receipts in a manner similar to that of all other similarly classified businesses for whom gross receipts are made the basis for fixing the amount of their license, to which no basic tax rate amount shall be added. Provided further that all such businesses shall pay in advance an amount therefor as set forth in Section 21-117, subsection (c) above. Said deposit to be applied as a credit, or to be taken as a refund in the same manner as is set forth in Section 21-117, subsection (c).

(c) Unless an adjustment of exemption is obtained pursuant to this Chapter, the minimum tax pursuant to this section shall be in the amount as specified in Section 21-120n.

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 7, 6-18-90; Ord. No. NS-2131, § 4A, 7-15-91; Ord. No. NS-2133, § 4A, 7-15-91; Ord. No. NS-3031, § 5, 11-8-22)

Whenever an applicant for a new business license for whom the gross receipts of such business is made the basis for fixing the amount of such license is required under the terms of Sections 21-117 or 21-118 to post a deposit in lieu of payment in advance of their business license tax, said applicant may alternatively elect to post an adjusted deposit amount equal to the amount of their anticipated tax based on an acceptable good-faith estimation of their expected gross receipts.

(Ord. No. NS-2841, § 6, 2-4-13)

Gross receipts tax rates for the different classifications are as follows:

(1) Classification "A"—All businesses for which no tax is specified elsewhere in this article, including, but not limited to: retail businesses and sales at retail, services (including real estate brokers, real estate developers, insurance brokers, life and disability insurance analysts, stock and bond brokers, commission agents, brokers or merchants, professional services, ambulance services, and recreational services), hotels, motels, theaters, and food establishments:

For each separate place of business licensed, a basic rate of sixty dollars ($60.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:

$0.65 per $1,000.00

(2) Classification "B"—Manufacturing, processing, wholesale businesses and sales at wholesale, sales of gasoline and motor fuels, telephone services, and public utility services:

For each separate place of business licensed, a basic rate of sixty dollars ($60.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:

$0.50 per $1,000.00

(3) Classification "C"—Rental of commercial real estate:

For the first property location licensed, a basic rate of sixty dollars ($60.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:

$0.65 per $1,000.00

For each additional property location licensed, a basic rate of ten dollars ($10.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:

$0.65 per $1,000.00

(4) Classification "D"—Home based businesses: for each separate place of business licensed, a basic rate of fifteen dollars ($15.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:

$0.65 per $1,000.00

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 3, 3-6-89; Ord. No. NS-3031, § 5, 11-8-22)

The maximum annual business license tax payable for any single business license required to be obtained pursuant to the Chapter shall not exceed one hundred thousand dollars ($100,000.00), which amount together with the basic rate amounts established under Section 21-119 shall be subject to annual adjustment in accordance with Section 21-120.

(Ord. No. NS-3031, § 5, 11-8-22)

Editor's note— Ord. No. NS-3031, § 5, adopted November 8, 2022, renumbered §§ 21—119.1—21-119.3 as §§ 21-119.2—21-119.4.

Whenever a business entity or other person functions as a holding company or pass-through entity and does not directly generate gross receipts within the city, but otherwise transacts and carries on business within the city, or maintains a business presence in the city, or is registered as a business entity with the California Secretary of State pursuant to the California Corporations Code as the same now exists or as may be hereafter amended from time-to-time with a designated or registered business entity address located in the city, then the business license tax liability of such business entity or person under Section 21-119 shall be limited to the minimum tax amount.

(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031, § 5, 11-8-22)

Editor's note— See editor's note, § 21-119.1.

(a) Persons liable under the terms of this Chapter for gross receipts business license taxes for business conducted from a home residence within the city and whose gross receipts therefrom do not exceed the annual amount specified in Section 21-120h(1)(a) per year shall have the right to elect an alternate flat rate business license tax as set forth in Section 21-120h of this Chapter for home based businesses and home based occupations, in lieu of the gross receipts tax which would otherwise be applicable. Such election shall be made in writing at the time of applicant's original application for a business license or may be made once annually thereafter at the time of licensee's application for a renewal license.

(b) Home based businesses and home occupations eligible for election of an alternate flat rate tax assessment shall be deemed to be those businesses or occupations conducted from a home residence in the city whose business or occupational use of said residential premises meets the requirements for a home occupation permit as set forth in Sections 41-193.1 through 41-607 of this Code as the same now exist or as they may be hereafter amended from time-to-time.

(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031, § 5, 11-8-22)

Editor's note— See editor's note, § 21-119.1.

In every case where a licensee exercises a right under this Chapter to elect an alternate tax assessment basis the effect of said election shall be as follows:

(a) In the event an existing licensee elects to convert their annual license assessment to an alternate tax assessment basis with an annual term beginning one (1) or more calendar quarters before the commencement of their pre-existing tax assessment basis and ending one (1) or more calendar quarters after the conclusion of their pre-existing tax assessment basis, then their initial alternate tax assessment shall be subject to a quarterly proration to account for the reduced number of calendar quarters remaining in the term of the newly elected tax assessment.

(b) In the event an existing licensee elects to convert their annual license assessment to an alternate tax assessment basis with an annual term beginning one (1) or more calendar quarters after the commencement of their pre-existing tax assessment basis and ending one (1) or more calendar quarters after the conclusion of their pre-existing tax assessment basis, then their pre-existing tax assessment shall be retroactively increased pro rata by the number of quarters necessary to account for the quarterly periods remaining between the conclusion of their pre-existing licensing term and the commencement of their alternate tax assessment licensing term.

(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031, § 5, 11-8-22)

Editor's note— See editor's note, § 21-119.1.

(a) Flat rate and variable flat rate taxes are as set forth in Section 21-120a through 21-120w of this article.

(b) Each tax, including each of its components, and any specified deposit amount required in lieu thereof, together with any other charges which are imposed pursuant to this chapter, but excluding the individual gross receipts tax rates set forth in section 21-119, shall be automatically adjusted on November 1, 2023, and on November 1 of each year thereafter, upward or downward, equivalent to the most recent change in the annual average of the consumer price index (All Urban Consumers 1982-84 = 100) as published by the United States Department of Labor for the Los Angeles-Long Beach-Anaheim metropolitan area as the same now exists or as shall be from time to time amended by the United States Department of Labor.

(c) For purposes of calculating the annual inflator/deflator factor under this section, the base year shall be that year ending with the quarter ending June 30, 2022. Rates (tax rates, basic rate amounts, charges, specified deposit amounts, qualifying threshold amounts, maximum tax cap amounts) shall first be adjusted on November 1, 2023, and thereafter, based on the annually calculated change from the base year through to September 30 of each successive year. Said change shall be rounded off to the nearest whole dollar as follows: If the remaining fraction of a dollar is forty-nine one-hundredths of a dollar or less, such fraction shall be omitted. If the remaining fraction of a percent is fifty one-hundredths of a dollar or more, the next highest dollar shall be applied.

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 5, 7-15-91; Ord. No. NS-3031, § 5, 11-8-22)

(1) ADVERTISING SERVICE: .....

(a) Distributing samples or posting bills .....$250.00 A

(2) AMUSEMENT SERVICES: .....

(a) Amusement center (a location where mechanical devices or animals are maintained for furnishing rides or entertainment and which may also include vending stands): .....

(i) More than ten (10) days: .....

Base rate .....500.00 M

Plus, for each ride or vending stand in excess of 10 .....60.00 Q

(b) Sporting exhibitions .....100.00 D

(c) Carnival, circuses, concerts, tent shows and open air shows seating not more than four thousand (4,000) persons: .....

First day .....200.00 D

Each additional day .....100.00 D

(d) Carnival, circuses, concerts, tent shows and open air shows seating more than four thousand (4,000) persons: .....

First day .....500.00 D

Each additional day .....300.00 D

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 8, 6-18-90; Ord. No. NS-3031, § 5, 11-8-22)

(1) BUILDING TRADESMEN, per individual .....35.00 A

(2) TAXI COMPANY, per vehicle .....35.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 9, 6-18-90; Ord. No. NS-2349, § 1, 5-18-98; Ord. No. NS-3031, § 5, 11-8-22)

(1) CATERING TRUCKS, per vehicle .....$250.00 A

(2) CHANGE IN LOCATION AMENDMENT CHARGE, per license .....15.00 C

(3) CHANGE IN NAME AMENDMENT CHARGE, per license .....15.00 C

(4) CHRISTMAS TREE LOTS, per lot .....8.00 D

(5) PUMPKIN PATCH LOTS, per lot .....8.00 D

(6) CONTRACTOR—GENERAL CONTRACTOR, prorated quarterly per contractor .....300.00 A

(7) CONTRACTOR—SPECIALTY and SUBCONTRACTOR, prorated quarterly per contractor .....275.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 10, 6-18-90; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

(1) DANCE, PUBLIC, per dance .....35.00 D

(2) DUPLICATE LICENSE CHARGE, per license .....10.00 C

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

FIREWORK STAND, per stand .....$250.00 ;

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031, § 5, 11-8-22)

GARDENERS OR LAWN MAINTENANCE WORKER, per individual .....$ 35.00 A ;

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031, § 5, 11-8-22)

(1) HOME-BASED BUSINESS/HOME OCCUPATION .....$ 35.00 A

a. QUALIFYING THRESHOLD AMOUNT per licensee .....50,000.00 T

(2) HOBBY—GRATUITOUS LICENSE CHARGE, per license .....10.00 C

(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

(1) INDEPENDENT CONTRACTOR, per individual .....$ 35.00 A

(2) INITIAL PERIOD APPLICATION PROCESSING CHARGE Per license application .....15.00 C

(3) ITINERANT MERCHANT .....250.00 Q

(4) INSURANCE SOLICITOR, per solicitor .....35.00 A

(5) ICE CREAM TRUCKS .....250.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 11, 6-18-90; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

(1) JANITORS AND BUILDING MAINTENANCE WORKERS, per individual .....$ 35.00 A

(2) JUNK COLLECTION, per vehicle .....250.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 12, 6-18-90; Ord. No. NS-3031, § 5, 11-8-22)

MINIMUM GROSS RECEIPTS—QUALIFYING THRESHOLD AMOUNT/GRATUITOUS LICENSE CHARGE

(a) QUALIFYING THRESHOLD AMOUNT per licensee .....$5,000.00 A

(b) GRATUITOUS LICENSE CHARGE, per license .....10.00 C

(Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

NEW BUSINESS—MINIMUM TAX

Per license .....$10.00 A

(Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

OFF-PREMISE COMMERCIAL ADVERTISING SIGNS:

(1) Sign faces with gross dimensions equal to or less than three hundred (300) square feet, per sign face .....$ 190.00 A

(2) Sign faces with gross dimensions in excess of three hundred (300) square feet, per sign face .....250.00 A

(Ord. No. NS-1926, § 2, 10-19-87; Ord. No. NS-3031, § 5, 11-8-22)

(2) PEDDLER, per peddler as principal .....250.00 A

or .....10.00 D

(3) PEDDLER, per peddler as independent contractor .....35.00 A

(4) PRINCIPAL'S PEDDLER'S LICENSE .....$400.00 A

per each person engaged in peddling in the city .....35.00 A

(5) Reserved. .....

(6) PUSHCARTS, per pushcart .....500.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 13, 6-18-90; Ord. No. NS-2131, § 6A, 7-15-91; Ord. No. NS-2133, § 5A, 7-15-91; Ord. No. NS-3031, § 5, 11-8-22)

(1) REAL ESTATE AGENT, per agent .....$ 35.00 A

(2) RENEWAL APPLICATION PROCESSING CHARGE Per license renewal application .....15.00 C

(3) RESIDENTIAL PROPERTY RENTAL UNIT .....63.00 A

Plus per each property rental unit .....13.00 A

(4) RESIDENTIAL APARTMENT RENTAL .....63.00 A

Plus per each apartment rental unit .....13.00 A

(5) ROOMING HOUSE RENTAL .....63.00 A

Plus per each room rental unit .....13.00 A

(6) RESIDENTIAL MOBILE HOME PROPERTY RENTAL .....63.00 A

Plus per each rental unit space .....13.00 A

(7) REVALIDATION APPLICATION PROCESSING CHARGE .....

Per license revalidation application .....10.00 C

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

(a) Except as otherwise provided in subsection (b) of this section, the business license tax for residential property rental and residential apartment rental shall consist of the amount set forth in subsections (2) and (3) of Section 21-120r plus an annual surcharge of nineteen dollars and fifty cents ($19.50) per each property rental unit or each apartment rental unit. The surcharge hereby established shall be due and payable and shall be paid at the same time and in the same manner that the amount due under Section 21-120r is due and payable. No business license shall be issued unless the surcharge is paid. Penalties and interest shall be assessed upon the total amount due and unpaid at the rate specified in this Chapter until such time as both the amount due under Section 21-120r and the surcharge due under this section are paid in full. All provisions for the enforcement, collection and recovery of unpaid business license taxes shall likewise apply to the enforcement, collection and recovery of any unpaid surcharge. This section shall expire on, and be of no further force or effect after December 31, 2015.

(b) The city council may, by resolution, establish a program whereby particular residential properties or residential apartments, licensed pursuant to this Chapter, may be certified as having met standards of excellence in property maintenance. In such event, the executive director of the planning and building agency shall be responsible for the implementation of that program. Owners of property certified pursuant to that program shall be exempt from the payment of the surcharge specified in subsection (a) of this section for the three (3) tax years next succeeding the time of such certification. The executive director of the planning and building agency shall provide the executive director of the finance and management services agency with listings of licensed properties certified under this program, which shall be periodically updated to reflect changes. The city council may provide for such financial limitations on the exemptions to be granted from the surcharge as the city council deems appropriate.

(Ord. No. NS-2173, § 1, 8-17-92; Ord. No. NS-2223, § 1, 7-5-94; Ord. No. NS-2408, § 3, 11-1-99; Ord. No. NS-2527, § 3, 5-19-03; Ord. No. NS-2757, § 3, 9-4-07; Ord. No. NS-2811, § 3, 12-6-10; Ord. No. NS-2824, § 3, 9-19-11)

(1) SEALING OF NONIDENTIFIED OR UNLICENSED MACHINES Per machine .....$ 10.00 C

(2) SHOESHINE STAND, per operator .....35.00 A

(3) SOLICITOR, per solicitor as principal .....250.00 A

(4) SOLICITOR, per solicitor as independent contractor .....35.00 A

(5) PRINCIPAL'S SOLICITOR'S LICENSE .....400.00 A

Per each person engaged in soliciting in the city .....35.00 A

(6) SWAP MEET EXHIBITOR, per participating exhibitor .....3.00 D

(Ord. No. NS-1922, § 1, 7 20-87; Ord. No. NS-2064, § 15, 6-18-90; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

(1) THEATRICAL PERFORMANCE .....$ 120.00 D

(2) TRUCKING AND GENERAL DELIVERY, per vehicle .....120.00 A

(3) TOW TRUCKS, per vehicle .....120.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 16, 6-18-90; Ord. No. NS-3031, § 5, 11-8-22)

COIN-OPERATED MACHINES OR DEVICES:

(1) Per $0.25 device and over .....

(a) First machine .....25.00 A

(b) Per additional device .....13.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028, § 8, 6-21-22; Ord. No. NS-3031, § 5, 11-8-22)

(1) WAREHOUSE .....$250.00 A

(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031, § 5, 11-8-22)

Editor's note— Ord. No. NS-3031, § 5, adopted November 8, 2022, repealed § 21-121. Former § 21-121 pertained to adjustment for inflation/deflation and derived from Ord. No. NS-1922, § 1, adopted July 20, 1987.