Santa Paula Municipal Code Ch. 110 Business License Taxes

Section

General Provisions

License Requirements

Exemptions

Rates

Cross-reference:

Adult entertainment establishments, see §§ 156.780 et seq.Taxation, see Ch. 37

Statutory reference:

Authority to license businesses, see Cal. Gov't Code § 37101 and Cal. Bus. & Prof. Code §§ 16000 et seq.

State exemptions from business licensing, including certain non-profit organizations and certain professions, see Cal. Gov't Code § 37101 and Cal. Bus. & Prof. Code §§ 16000 et seq.

GENERAL PROVISIONS

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

BUSINESS. Professions, trades and occupations and all and every kind of calling carried on for profit or livelihood. This includes all those persons who are self-employed even though receiving their remuneration on an hourly basis or who do not advertise.

FORTUNETELLER. Any person who carries on, professes to practice or practices the business of or art of astrology, palmistry, phrenology, life reading, fortunetelling, cartomancy, clairvoyance, clairaudience, crystal gazing, hypnotism, medium-ship, prophecy, augury, divination, magic or necromancy and who demands or receives a fee for the exercise or exhibition of his art therein or who gives an exhibition thereof at any place when an admission fee is charged other than at a regularly licensed theater.

GROSS RECEIPTS. The total amount of the sale price of all sales and the total amount charged or received for the performance of any act, service or employment of whatever nature it may be for which a charge is made or credit allowed, whether or not such service, act or employment is done as a part of or in connection with the sale of materials, goods, wares or merchandise for the preceding calendar year. Included in GROSS RECEIPTS shall be all receipts, cash, credits and property of any kind or nature and any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the costs, interest paid or payable or losses or other expenses whatsoever. Excluded from GROSS RECEIPTS shall be cash discounts allowed and taken on sales, any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser and such part of the sale price of property returned by purchasers upon recision of the contract of sale as is refunded either in cash or by credit.

ITINERANT VENDOR. Every person, whether acting as principal or as agent, who engages in the business in the city of selling, contracting to sell, taking orders for or offering to sell or take orders for goods, wares or merchandise with the intention at the time of engaging in such business of continuing the same for a period of not more than 90 days and who, in conducting or carrying on such business, hires, leases, subleases or occupies any room, building or structure or a part of any room, building or structure for the purpose of storing, exhibiting or displaying such goods, wares or merchandise, or samples thereof; provided, that any person who so engages in such business shall not be excluded from the operation of this section by reason of associating with any local dealer, trader, merchant or auctioneer or by reason of conducting such business in connection with, as part of or in the name of the business of any local dealer, trader, merchant or auctioneer. This definition shall not apply to commercial agents selling goods, wares or merchandise to, or soliciting orders therefor from retail dealers; nor to hawkers, peddlers or persons selling fresh fruit or vegetables, butter, eggs, poultry or other farm or ranch products.

WHOLESALE AND RETAIL DELIVERY. Delivering, selling or furnishing articles of merchandise from a truck or other vehicle, either at wholesale or at retail. Any person engaged in phone solicitation or advertising which results in their own delivery of the product will be required to license under each provision of this chapter.

('81 Code, § 5.04.010) (Ord. 709, passed - -78; Ord. 830, passed - -85)

This chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation.

('81 Code, § 5.04.020)

(A) One business license tax payment. Persons required to pay a tax under this chapter are not required to pay additional, substantially similar, business license taxes for the same business transactions under any other provisions of this code. Nothing in this section relieves the persons from complying with any other regulatory provisions of this code. This section does not apply to taxes, including without limitation, sales tax, fees, or other charges imposed for the privilege of selling tangible personal property at retail. The taxes, fees, and charges are in addition to the taxes imposed by this chapter.

(B) City contracts. Persons who are a party to a written contract with the city for goods or services need not pay a business license tax under this chapter if all the following provisions apply:

(1) The person is party to a written contract with the city approved in accordance with all applicable laws including, without limitation, this code;

(2) The only business transaction conducted by the person within the city's jurisdiction is with the city; and

(3) The only parties to the written contract is the person and city.

('81 Code, § 5.04.030) (Am. Ord. 1086, passed 2-17-04)

Unless otherwise specifically provided, all annual license taxes under the provisions of this chapter shall be due and payable in advance on January 1 of each year; provided, that license taxes covering new operations commenced after January 1 may be prorated quarterly for the balance of the license period:

(A) Semiannual license taxes on January 1 and July 1 each year;

(B) Quarterly license taxes on January 1, April 1, July 1 and October 1 of each year;

(C) Daily license taxes each day in advance.

('81 Code, § 5.04.040)

(A) Any person aggrieved by any decision of an administrative officer or agency with respect to the issuance or refusal to issue a license may appeal to the Council by filing a notice of appeal with the clerk of the Council.

(B) The Council shall thereupon fix a time and place for hearing such appeal.

(C) The clerk of the Council shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Posts Office at Santa Paula, California, postage prepaid, addressed to such person at his last known address.

('81 Code, § 5.04.050)

(A) The License Collector, and such other person or persons as may be authorized by resolution of the City Council, shall enforce each and all of the provisions of this chapter, and the Chief of Police shall render such assistance in the enforcement thereof as may from time to time be required by the License Collector.

(B) The Building Department shall be required to ascertain, prior to giving final clearance on all remodeling and new construction, that all general contractors and subcontractors performing such work are licensed.

('81 Code, § 5.04.060) (Ord. 674, passed - -77)

The amount of any license tax 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 an action in the name of the city in any court of competent jurisdiction for the amount of the license tax and penalties imposed on such business as specified elsewhere in this chapter.

('81 Code, § 5.04.070)

(A) Against any person who engages in, conducts or carries on any business or game, or exhibits any show or exhibition for which a license is required by the provisions of this title without procuring such license and paying the prescribed license tax, the Council may at any time direct the City Attorney to bring suit in the name of the city for the recovery of such license tax.

(B) In such action for collection of a license tax imposed, a penalty , to be set by resolution, shall be added to the amount of any judgment recovered by the city, in addition to any other penalty or penalties then due and owing imposed by the provisions of this title.

('81 Code, § 5.04.080) (Ord. 871, passed - -86)

The License Collector, in the exercise of the duties imposed upon him under this chapter, and acting through his deputies or duly authorized assistants, may examine or cause to be examined all places of business in the city to ascertain whether the provisions of this chapter have been complied with.

('81 Code, § 5.04.090)

(A) The License Collector, each of his assistants and any police officer may enter, free of charge and at any reasonable time, any place of business required to be licensed under this chapter and demand an exhibition of its license certificate.

(B) Any person having such license certificate theretofore issued in his possession or under his control who wilfully fails to exhibit the same on demand shall be guilty of an infraction and subject to the penalties provided in this chapter.

(C) The License Collector and each of his assistants shall cause a complaint to be filed against any person found to be violating any of such provisions.

('81 Code, § 5.04.100) (Ord. 726, passed - -79) Penalty, see § 110.99

The License Collector, with the consent of the Council, may compromise any claim as to the amount of license tax due.

('81 Code, § 5.04.110)

(A) The conviction and imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business, nor shall the payment of any license tax be a bar to criminal prosecution for the violation of any of the provisions of this chapter.

(B) All remedies prescribed under this chapter shall be cumulative, and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

('81 Code, § 5.04.120)

(A) For failure to pay a license tax within 31 days of the due date, the license tax shall become delinquent. The License Collector shall add a penalty of 10% of the license tax or $10, whichever is greater, for late payment of the license tax. An additional 10% or $10, whichever is greater, shall be added on the first day of each month thereafter until the license tax fees and all penalties are paid in full.

(B) Penalty charges shall not exceed 50% of the license tax due. This provision does not limit other penalties imposed by this chapter.

('81 Code, § 5.04.130) (Ord. 794, passed - -83; Ord. 871, passed - -86)

LICENSE REQUIREMENTS

(A) Every person required to have a license under the provisions of this chapter shall make application for such to the License Collector of the city.

(B) Upon the payment of the prescribed tax, the License Collector shall issue to such person a license which shall contain:

(1) The name of the person to whom the license is issued;

(2) The name of the business licensed;

(3) The place where such business is to be transacted and carried on;

(4) The date of the expiration of such license;

(5) The home address of the applicant; and

(6) Such other information as may be necessary for the enforcement of the provisions of this chapter.

('81 Code, § 5.04.140)

The License Collector shall not license any fortuneteller, taxicab company, carnival or circus, or issue a dance permit/license for any applicant who does not first receive the written permission of the Council.

('81 Code, § 5.04.150) (Ord. 830, passed - -85)

(A) Information required. Upon a person making application for a license to be issued for a newly established business, when the amount of license tax to be paid is based upon gross receipts, rentals or seating capacity of the place of business, such person shall furnish to the License Collector for his guidance in ascertaining the amount of license tax to be paid by the applicant a written statement upon a form provided by the License Collector setting forth such information as may be therein required and as may be necessary to properly determine the amount of license tax to be paid by the applicant.

('81 Code, § 5.04.160)

(B) Estimate of gross receipts; collection at end of period.

(1) If the amount of the license tax to be paid by the applicant for a license for a newly established business is based upon the gross receipts of the place of business, he shall estimate the gross receipts for the period to be covered by the license to be issued. Such estimate, if accepted by the License Collector as reasonable, shall be used in determining the amount of license tax to be paid by such applicant, but the amount of license tax so determined shall be tentative only, and such person shall, within 30 days after the expiration of the period for which such license was issued, furnish the License Collector with a statement upon a form furnished by the License Collector, showing the actual gross receipts of the place of business during the period of such licensed and the license tax for such period shall be finally ascertained and paid in the manner provided by this chapter for the ascertaining and paying of renewal license taxes, after deducting from the payment found to be due the amount paid at the time such first license was issued.

(2) The License Collector shall not issue any such person another license for the same or any other business until such person shall have furnished to him the written statement and paid the license tax as required in this chapter.

('81 Code, § 5.04.170)

In all cases the applicant for the renewal of a license shall submit to the License Collector for his guidance in ascertaining the amount of the license tax to be paid by the applicant a written statement, upon a form to be provided by the License Collector, setting forth such information concerning the applicant's business during the preceding year as may be required by the License Collector to enable him to ascertain the amount of the license tax to be paid by the applicant pursuant to the provisions of this chapter.

('81 Code, § 5.04.180)

(A) No statement shall be conclusive as to the matters set forth therein, nor shall the filing of such preclude the city from collecting by appropriate action such sum as is actually due and payable under this chapter. Such statement and each of the several items therein contained shall be subject to audit and verification by the License Collector, his deputies or authorized employees of the city, who are authorized to examine, audit, or inspect such books and records of any licensee or applicant for a license as may be necessary in their judgment to verify or ascertain the amount of license fee due.

(B) All licensees, applicants for licenses and persons engaged in business in the city shall permit an examination of such books and records for the purposes mentioned in division (A) of this section.

('81 Code, § 5.04.190) Penalty, see § 110.99

(A) The information furnished or secured pursuant to §§ 110.27 and 110.28 shall be confidential.

(B) Any unwarranted disclosure or use of such information by any officer or employee of the city shall constitute an infraction, and such officer or employee shall be subject to the penalty provisions of this chapter.

('81 Code, § 5.04.200) (Ord. 726, passed - -79) Penalty, see § 110.99

(A) Authority. If any person fails to file any required statement within the time prescribed or if, after demand therefor made by the License Collector, he fails to file a corrected statement, the License Collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain.

('81 Code, § 5.04.210)

(B) Hearing on determination.

(1) In case such a determination is made as provided in division (A) of this section, the License Collector shall give notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Santa Paula, California, postage prepaid, addressed to the person so assessed at his last known address.

(2) Such person may, within 10 days after the mailing or serving of such notice, make application in writing to the License Collector for a hearing on the amount of the license tax.

(3) If such application is made or if no application is made within the time prescribed, the License Collector shall cause the matter to be set for a hearing within 15 days thereafter before the Council.

(4) The License Collector shall give at least 10 days notice to such person of the time and place of hearing in the manner prescribed above in this division for the service of notice of assessment.

(5) The Council shall consider all evidence produced, and written notice of its findings thereon, which findings shall be final, shall be served upon the applicant in the manner prescribed above in this division for service of notice of assessment.

('81 Code, § 5.04.220)

In addition to all other powers conferred upon him, the License Collector may, for good cause shown, extend the time for filing any required statement for a period not exceeding 30 days and, in such case, may waive any penalty that would otherwise have accrued.

('81 Code, § 5.04.230)

A duplicate license may be issued by the License Collector to replace any license previously issued under this chapter which has been lost or destroyed upon the licensee filing an affidavit attesting to such fact and, at the time of filing of such affidavit, paying to the License Collector a duplicate license fee in an amount to be established by resolution of the City Council.

('81 Code, § 5.04.240) (Ord. 871, passed - -86)

All licenses must be kept and posted in the following manner:

(A) Any licensee transacting and carrying on a business at a fixed place of business in the city shall keep the license posted in a conspicuous place upon the premises where such business is carried on; and

(B) Any licensee transacting and carrying on a business, but not operating at a fixed place of business within the city, shall keep the license upon his person at all times while transacting and carrying on such business.

('81 Code, § 5.04.250) Penalty, see § 110.99

(A) A license may be transferred from one owner to another, upon the necessary application, for a fee in an amount to be established by resolution of the City Council.

(B) Such applicant assumes the rights and responsibilities of the former owner as to the amounts of license fees due which have not been paid or any overpayments.

(C) Any owner may transfer his location of business by completing a transfer request and paying a fee in an amount to be established by resolution of the City Council.

('81 Code, § 5.04.260)

(A) There shall be no license fees refunded upon a business closing except a business that is under gross receipts.

(B) Such request to be supported by a sworn statement from a certified public accountant as to the actual amount of business done which would qualify the owner for a refund of over $5.

(C) No refunds are to be made on a sale or transfer of ownership, gross or otherwise.

('81 Code, § 5.04.270)

EXEMPTIONS

Nothing in this chapter shall be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the applicable statutes of the United States or of the state from the payment to municipal corporations of such taxes as are prescribed in this chapter.

('81 Code, § 5.04.280)

(A) The provisions of this chapter shall not be deemed or construed to require the payment of the license tax to conduct, manage or carry on any business, occupation or activity from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly by any person, nor shall any license tax be required for conducting any entertain-ment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the city whenever all the receipts of any such entertainment, concert, exhibition or lecture are to be appropriated to any church or school or to any religious or benevolent purpose; nor shall any license tax be required for conducting any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated 100% for the purpose and objects for which such organization or association was formed and from which profit is not derived either directly or indirectly by any person; provided, however, that nothing in this section shall be deemed to exempt any such organization or association from complying with the provisions of any ordinance of the city requiring a permit from the Council or any commission or officer as to conduct, manage or carry on any profession, trade, calling or occupation. Such gatherings must have Council permission to have an exempt license.

(B) Disabled veterans may also have a fee exempt license for the purpose of peddling or soliciting upon the presentation of a document or documents establishing an honorable discharge or release from the Armed Forces, a medical statement certifying that such veteran is physically unable to obtain a livelihood by manual labor and is a qualified elector of the state.

('81 Code, § 5.04.290)

Nothing in this chapter shall be deemed or construed to apply to farmers, poultry raisers or horticulturists whose place of producing is within the city, who sell exclusively products produced or grown by them; provided, however, that this exemption shall not be deemed or construed to apply in favor of any person, including cooperative associations, who packs, processes or sells products produced by more than one farmer, poultry raiser or horticulturist or who otherwise serves or represents more than one farmer, poultry raiser or horticulturist.

('81 Code, § 5.04.300) (Ord. 871, passed - -86)

Any person claiming an exemption pursuant to this subchapter shall file a sworn or notarized statement with the License Collector stating the facts upon which exemption is claimed.

('81 Code, § 5.04.310)

The License Collector shall, upon a proper showing contained in the notarized statement, issue a license to such person claiming exemption under this subchapter without payment to the city of the license tax required by this chapter.

('81 Code, § 5.04.320)

(A) The License Collector may revoke any license granted pursuant to the provisions of this subchapter upon information that the licensee is not entitled to the exemption as provided in this subchapter.

(B) Any other business license may be revoked for cause after due notification and hearing and action of the Council.

('81 Code, § 5.04.330)

RATES

There are imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amounts prescribed, and it is unlawful for any person to transact and carry on any such business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so or without complying with all applicable provisions of this chapter.

('81 Code, § 5.04.340) (Ord. 871, passed - -86) Penalty, see § 110.99

A separate license must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments; and provided further, that the business of selling or dealing in used automobiles in connection with and as an incident to the business of selling and dealing in new automobiles, whether conducted at the same location or at a different location, shall not be deemed to be a branch establishment.

('81 Code, § 5.04.350) Penalty, see § 110.99

(A) Every person who engages in any retail, wholesale, manufacturing, processing, professional, semiprofessional or other business activity, including hotels, motels and mobile home parks, and whether or not located at a fixed place of business within the city and who is not otherwise classified in this chapter, shall be termed as being in Classification A for the purpose of this chapter and shall pay an annual license fee based upon annual gross receipts, which in all cases shall be a minimum of $25.

Schedule of Gross Annual Receipts

At Least But Less Than Fee Schedule

$ 0 $ 40,000 $ 25

40,000 60,000 35

60,000 100,000 45

100,000 200,000 65

200,000 300,000 85

300,000 400,000 100

400,000 500,000 125

500,000 600,000 150

600,000 800,000 175

800,000 1,000,000 200

1,000,000 an additional $25 per $1,000,000

and up of gross business or fraction thereof

(B) Provided, however, that any public utility operating within the city under franchise or franchises from the city and which makes franchise payments thereunder is subject to the provisions of this chapter only to the extent that it engages in retail merchandising within the city not covered by franchise.

('81 Code, § 5.04.360) (Ord. 794, passed - -83)

Every person who engages in any retail, wholesale, manufacturing, processing, professional, semiprofessional or other business activity having a fixed place of business within the city deriving gross receipts attributable to business or sales activities occurring outside the city, he shall be entitled to an apportionment of the tax due under § 110.62 as follows:

(A) The following factors and percentages shall be considered in apportioning the license tax:

(1) Is the business office serving as a base of business or sales activities located in the city?—20%;

(2) Are sales or other business negotiated or solicited by the business through the physical presence of a person, his employees or agents in the city?—30%;

(3) Are orders or contracts accepted or approved at the city location? Such acceptance or approval shall be deemed to take place at the sales office serving as a base for all sales activities, unless there is clear and conclusive evidence that a binding acceptance or approval occurs elsewhere—10%;

(4) Is merchandise stored in the city immediately prior to shipment or delivery?—20%;

(5) Do orders for or arrangements for the shipment or delivery of merchandise sold emanate from a location in the city?—5%;

(6) Are billing procedures performed in the city?—5%;

(7) Are accounts receivable collected in the city location?—5%;

(8) Is merchandise delivered to city addresses by vehicles operated by the taxpayer?—5%.

(B) The amount of the tax due shall be determined by the License Collector who shall make such determination by ascertaining what factors and percentages apply to the business seeking apportion-ment and multiplying the total percentage by the business's total gross receipts, assuming all business and sales activities of the business to be taxed have occurred in the city. The tax fee is then computed on the apportioned gross receipts figure.

(C) The procedures set forth in §§ 110.25 et seq. concerning issuance, transfer and gathering of information for licensing of new businesses and renewal of licenses shall apply to apportionment of the license tax.

('81 Code, § 5.04.370) (Ord. 709, passed - -78; Ord. 871, passed - -86)

Any person who engages in any of the following businesses or callings within the city shall be termed as being in Classification B and shall pay a license fee, to be set by resolution:

(A) (1) Auction sales or fire sales.

(2) Exceptions:

(a) Whenever such sales are conducted in conjunction with a business otherwise licensed under § 110.62, the fee shall not exceed a specific amount per year set by resolution (not to exceed one sale weekly and not to be prorated);

(b) Business closeouts, including closeout sales of certain stock to be discontinued, a specific amount per day set by resolution (unless such sales are conducted by professional auctioneers or auction companies, in which event the greater fee shall apply);

(c) Sales promotion (includes all types of attraction for public), a specific amount set by resolution.

(B) Boxing and wrestling.

(C) Carnival.

(D) Circus.

(E) Commercial filming.

(F) Dance permits:

(1) Dance hall, dancing club and public dances without on-sale liquor permits.

(2) With on-sale liquor permits (liquor defined to include wine or beer or any type of beverage which has an alcoholic content).

(G) Delivery, wholesale and retail (per truck or vehicle); includes established delivery, service and sales routes.

(H) Exhibition (travel).

(I) Fortuneteller.

(J) Parade vendors:

(1) Local vendors.

(2) Out-of-town vendors.

(3) LOCAL shall be described as an organization, business or person that is a resident of and/or has a business office within the city limits;

(K) Taxicab in service.

(L) Vendors and peddlers.

('81 Code, § 5.04.380) (Ord. 707, passed - -78; Ord. 794, passed - -83; Ord. 830, passed - -85; Ord. 871, passed - -86)

Tax based on income housing units shall be as follows:

(A) Under four units, no charge;

(B) Four units, $25 per year;

(C) Each additional unit in excess of four, $2 per unit per year.

('81 Code, § 5.04.390) (Ord. 794, passed - -83)

Every person regularly engaged in the business of operating a motion picture house, theater, other than in a tent, shall pay an annual tax of $75 where the seating capacity does not exceed 350 seats or 140 speakers, plus $12.50 for each additional 100 seats or 40 speakers or major fraction thereof.

('81 Code, § 5.04.400)

(A) The City Council has the authority to revoke or suspend any business license when such licensee is in violation of the city ordinances regarding the health, safety and well-being of the community or is in violation of laws of the United States or state.

(B) Such license cannot be reinstated unless approved by the City Council.

(C) Such action of suspension or revocation are to be taken after due notice and a hearing held by the Council.

('81 Code, § 5.04.430)

Any person violating any of the provisions of this chapter by knowingly or intentionally misrepresenting to any officer, employee or representative of the city any material fact in procuring a license or permit as provided in this chapter, or failing to obtain a business license prior to engaging in any act of business, or failing to renew a business license as provided in this chapter, shall be guilty of an infraction and punished according to Chapter 13 of this code.

('81 Code, § 5.04.440) (Ord. 726, passed - -79; Ord. 871, passed - -86)