Seal Beach Municipal Code Ch. 5.10 Business License Tax

For the purpose of this chapter, the following words and phrases shall mean:

Advertising:

The operation or maintenance of a billboard, signboard, window display, motion picture, theater curtain, stereopticon, biograph, moving picture machine or vehicle displaying commercial advertising matter thereon.

The distribution of commercial handbills.

The distribution of merchandise samples.

"Advertising" does not include the following:

Aircraft Repair Shop:

a business that repairs, alters, remodels, overhauls or paints aircraft or parts thereof.

Arcade:

a business that operates or exhibits a phonograph, graphophone, talking machine, kinetoscope, biograph, projectoscope, microscope, lung tester, muscle tester, galvanic batter, weighing machine or similar coin-operated machine.

Auctioneer:

a person engaged in the business of selling or offering for sale any property at public auction or by public outcry.

Auto for Hire:

a motor vehicle that for monetary consideration is used for the transportation of passengers over public highways on undefined routes. "Auto for hire" includes the leasing of a motor vehicle, whether with or without driver, used for carrying passengers over public highways on an undefined route having a terminus inside the city. "Auto for hire" also includes the leasing of a motor vehicle used primarily for the transportation of property over public highways on an undefined route.

Auto Parking Space:

a vacant lot on which automobiles are lawfully parked by the hour, day, week or month for monetary consideration. "Auto parking space" does not include a lot maintained exclusively for patrons of any business where no monetary consideration is charged for the parking.

Auto Parts, Service and Equipment Business:

a business that buys and sells automobile replacement parts and accessories. "Auto parts, service and equipment business" includes the performance of such machine work and assembling as is necessary to install parts or equipment. "Auto parts, service and equipment business" does not include duly licensed garages or repair shops.

Auto Repair Shop:

a business that repairs, remodels, overhauls, reconditions or paints automobiles or parts thereof. "Auto repair shop" does not include the following activities performed at a gasoline station or service station:

Tire repair or changing.

Spark plug or battery cleaning, charging or replacement.

Automobile washing.

Fan belt, light bulb or radiator hose replacement.

Brake adjustment.

Similar services that commonly are completed with the customer present and do not require a qualified automobile mechanic.

Average Number of Individuals Employed:

the average number of persons employed daily by the business for the year period ending on the 30th day prior to the due date of the license. This figure shall be determined by ascertaining the total number of service hours performed by all employees during such period and dividing that amount by the number of service hours constituting a day's work, and by again dividing the sum thus obtained by the number of business days in such period. Fractions of numbers shall be excluded for purposes of these calculations.

Boarding Kennel:

a business that houses dogs, cats or other small animals.

Boat for Hire:

a boat that for monetary consideration is used to transport passengers from a pier, wharf or landing place in the city. "Boat for hire" includes the leasing of a boat, whether with or without an operator.

Building Contractor:

a person engaged in the business of constructing, altering, repairing, removing or demolishing any building, structure or portion thereof. "Building contractor" includes a person erecting scaffolding or other structures in connection with work upon any building or structure. The following do not constitute a "building contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed building contractor.

A licensed architect or registered civil engineer who acts solely in the capacity of an architect or civil engineer.

An owner of a building who personally works upon such building. This exemption shall not apply if the building is being erected for purposes of sale.

Business:

professions, trades and occupations of every kind of calling whether or not carried on for profit.

Carnival:

a business consisting of sideshows, vaudeville, ferris wheels, merry-go-rounds, riding devices or similar amusement devices.

Cement Contractor:

a person engaged in the business of repairing, placing or installing poured and tamped Portland cement concrete in connection with any foundation, pier, floor, structural framework, retaining wall, coping, step, stairway, gutter, curbing, walk, driveway, pavement or other type of plain or reinforced concrete construction. The following do not constitute a "cement contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed cement contractor.

A duly licensed and authorized building contractor if such person is working upon a public street, alleyway, sidewalk, curb, gutter, storm drain or similar public improvement.

A resident of a single-family dwelling who personally works upon such dwelling or an accessory building thereof.

Circus:

a business consisting of a tent, canvas or open-air enclosure exhibiting feats of horse-manship, trained animals, clowns, acrobatic performances or similar forms of skill or amusement.

Collection Agency:

a business that collects accounts receivable for another business. "Collection agency" includes any business that uses a fictitious name in collecting its own accounts receivable with the intention of conveying to the debtor that a third party has been employed to collect such accounts. "Collection agency" does not include the following: attorneys; banks; abstract companies doing an escrow business; real estate brokers making collections arising out of real estate transactions; or merchant nonprofit credit associations.

Collector:

the director of administrative services/treasurer.

Commission Merchant or Broker:

a person who by authority acts as an intermediary, representative, or agent, on behalf of, or in the place of another person in the purchase or sale of commodities, insurance, real or personal property, stocks, bonds, securities, notes, negotiation of contracts for personal or professional services or appearances and receives compensation, either directly or indirectly, in the form of commission or otherwise, whether or not the operation of such business customarily includes the actual possession, custody or control of the foregoing.

Country Club Golf Course:

a privately owned golf course. "Country club golf course" includes the operation of a restaurant, coffee shop, snack bar, cocktail lounge, pro shop, the offering and giving of golf lessons, the operation of a driving range open to the public and retail sales of articles normally associated with a golf course. "Country club golf course" does not include an entertainment café.

Dancing Academy:

a business that provides dancing lessons.

Dog and Cat Hospital:

a business that provides medical care for dogs, cats and other small animals.

Electrical Contractor:

a person engaged in the business of performing work requiring an electrical permit. The following do not constitute an "electrical contractor" and are exempt from the business license tax requirement:

A salaried employee of a duly licensed electrical contractor.

An owner of a building who personally works upon such building. This exemption shall not apply if the building is being erected for purposes of sale.

Employment Bureau:

a business that secures employment for any person or furnishes information regarding situations of employment.

Engage in the Business:

the conducting, managing or carrying on of any business.

Entertainment Cafe:

a business that provides instrumental music, singing, floor show, vaudeville, cabaret or similar entertainment. "Entertainment Cafe" includes a business that allows dancing by patrons.

Fair:

a business consisting of displays of produce, livestock or merchandise together with amusement attractions and concessions.

Fixed Place of Business:

a place actually occupied by a person engaged in a business and at which a large part of such business is transacted and the records of such business are kept.

Fortune Teller/Psychic:

a person that purports to have extra-sensory powers and that engages in the business of providing forecasting of future events.

Grocery Bus:

a motor vehicle that carries, and from which is sold at retail, foodstuffs for human consumption.

Gross Receipts:

the total amount actually received or receivable for the performance of any act or service, whether or not such act or service is done in connection with the sale of materials, goods, wares or merchandise. "Gross receipts" includes all receipts, commissions, cash credits, and property of any kind or nature, without any deduction therefor on account of the cost of the property sold, the cost of material used, labor or service costs, interest paid or payable, or losses or other expenses.

As to a business established outside the city but maintaining a local office within the city, "gross receipts" means the total sales or receipts attributable to the local office. In the event separate records are not maintained for such office, the business license tax shall be based upon an amount that bears the same proportion to the total gross receipts of the business as the cost of maintaining the local office bears to the total cost of maintaining the business. In the event the local office performs administrative or storage functions in connection with sales or services rendered elsewhere, the business license tax shall be based on an amount equivalent to the volume of business that shall be computed by determining the total cost of maintaining such office. The total cost of maintaining the local office includes without limitation: wages; salaries; commissions; bonuses; rent; telephone; postage; utilities; janitorial and other expenses allocated for maintenance. "Gross Receipts" does not include:

Itinerant Vendor:

a person engaged in the business of selling goods for a period of not more than 90 days. An "itinerant vendor" shall not be relieved from the requirements of this chapter by reason of conducting such business in connection with a local dealer, trader, merchant or auctioneer.

Junk Collector:

a person having no fixed place of business and engaged in the business of collection, buying, selling or otherwise dealing in old rags, sacks, bottles, bottles, cans, papers, metal or other articles commonly known as junk.

Lathing Contractor:

a person engaged in the business of installing, patching or repairing wood lath, metal lath, plaster board or any other similar materials. The following do not constitute a "lathing contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed lathing contractor.

A resident of a single-family dwelling who personally works upon such dwelling or an accessory building thereof.

Laundry:

a business that cleans wearing apparel. "Laundry" does not include an establishment where the work is performed by members of the family, or where not more than 2 persons are employed for compensation.

Laundry Agency:

a business that cleans goods of a textile nature.

Length of Boat for Hire:

the distance between the perpendiculars as registered in United States Custom House records or as determined by actual measurement for any boat not so registered.

Location:

an individual, contiguous site of a business. If a business is sited on multiple contiguous parcels, the combined parcels shall constitute one location.

(Ord. 1515; Ord. 1524)

Masonry Contractor:

a person engaged in the business of laying, setting, altering or repairing brick, stone, hollow tile, flue lining, pre-cast concrete units, gypsum partition tile units, structural glass or terra cotta in connection with a wall, partition, chimney or flue, boiler settings, veneering or furring or any other work requiring a masonry permit. The following do not constitute a "masonry contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed masonry contractor.

A resident of a single-family dwelling who personally works upon such dwelling or an accessory building thereof.

Massage:

any method of treating the external parts of the body for remedial, health, or hygienic purposes. "Massage" includes without limitation: acupuncture; acupressure; aromatherapy; reflexology; treatment by means of pressure, friction, stroking, kneading, rubbing, tapping or pounding; treatment by means of stimulating the external parts of the body with a mechanical or electrical apparatus; treatment with rubbing alcohol, lineaments, antiseptics, oils, powders, creams, lotions, ointments, or other similar preparations; and treatment by means of baths, vapor, shower, electricity or magnetism.

Massage Establishment:

any establishment where any person engages in, conducts, or carries on the business of giving massage.

Medicine Show:

the using of lecture or entertainment to attract an audience to which is sold or given medicine, a surgical or medical appliance, food, beverage or any other substance promoted as being healthful.

Money Lender:

a person engaged in the business of lending money. "Money lender" does not include any state or national bank exempt from local taxation pursuant to Article XIII, Section 27 of the California Constitution.

Motor Scooter:

a motor-propelled vehicle designed to travel on not more than 3 wheels, which wheels do not have an inside rim diameter in excess of 12". "Motor scooter" does not include self-propelled wheel chairs or invalid tricycles.

Newspaper of General Circulation:

a newspaper meeting the definition of Government Code Section 6000.

Oil Tool Exchange:

the business of buying, selling or otherwise dealing in oil well equipment.

Painting, Paperhanging and Decorating Contractor:

a person engaged in the business of applying paint, wallpaper, or decorations upon a building or structure. The following do not constitute a "painting, paperhanging and decorating contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed painting, paperhanging and decorating contractor.

An owner of a building who personally works upon such building. This exemption shall not apply if the building is being erected for purposes of sale.

Peddling:

the business of going from place to place selling goods by the taking of an order and the making of a delivery concurrently. "Peddling" includes the transportation of goods that have not been sold to or ordered by a buyer prior to such transportation, and which goods are intended to be offered for sale and delivery to the public. "Peddling" does not include the delivery of goods by a person engaged in the business of selling such goods at a fixed place of business and which goods have been ordered to be so delivered prior to such delivery. Notwithstanding the preceding, "peddling" includes the delivery of goods at the time of or within a period of 2 hours from the time of obtaining such order for delivery, unless the order was placed by the buyer at a fixed place of business of the seller.

Plastering Contractor:

a person engaged in the business of applying, patching or repairing any plaster, stucco, ornamental plaster, run work or staff ornaments, or other work requiring a plastering permit. The following do not constitute a "plastering contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed plastering contractor.

An owner of a building who personally works upon such building. This exemption shall not apply if the building is being erected for purposes of sale.

Plumbing Contractor:

a person engaged in the business of work requiring a plumbing permit. The following do not constitute a "plumbing contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed plumbing contractor.

An owner of a building who personally works upon such building. This exemption shall not apply if the building is being erected for purposes of sale.

A person who constructs, alters, or repairs vitrified clay tile house sewers, cesspools, chimneys, septic tanks, or hot water vents.

Public Dance Hall:

a business where public dancing is held or carried on. "Public dance hall" does not include private residences.

Public Garage:

a business providing auto parking spaces to the public.

Real Estate Broker:

a person engaged in the business of selling, buying, soliciting purchasers of, or negotiating the purchase, sale, lease, exchange or financing of real estate. "Real estate broker" includes a person engaged in the business of collecting rent from real property for another.

Refrigeration Contractor:

a person engaged in the business of selling, installing, repairing or servicing commercial refrigeration or any equipment that is customarily used in or as a part of commercial refrigeration.

Riding Academy:

the business of teaching horseback riding. "Riding academy" includes the renting of horses, ponies or donkeys for riding purposes.

Roofing Contractor:

a person engaged in the business of applying, patching or repairing any roof covering a building or structure, which roof covering consists wholly or partially of either asphalt impregnated felt or composition roofing or shingles, asbestos-impregnated felt roofing or shingles, natural slate units or burned clay, or cement tile units. "Roofing contractor" includes a person who performs any other work requiring a roofing permit besides the installation, alteration or repair of wood shingle or shale roofs. The following do not constitute a "roofing contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed roofing contractor.

An owner of a building, or an employee of such owner, who furnishes no materials and does the following:

a.

Applies cold coatings, paint coats or hot asphalt mopped coatings on the roof of any building of such owner.

b.

Patches, repairs or re-roofs not in excess of 5 squares of the area of any building of such owner.

c.

Roofs or re-roofs a single-family dwelling of such owner or an accessory building thereof located upon the same premises, when such premises are used solely as the place of residence of such owner and not for income purposes.

Securities:

All shares or other interests or rights into which the capital, capital stock or property of companies or rights of stockholders or members thereof are divided, including all treasury shares and shares of their own capital stock purchased or otherwise acquired by companies upon delinquent assessment sales or in any other lawful manner, and all certificates and other instruments issued by them on their authority, evidencing or representing such shares, interests or rights.

All bonds, debentures and evidences of indebtedness issued by any company.

Any instrument issued or offered to the public by any company, evidencing or representing any right to participate or share in the profits or earnings or the distribution of assets of any business carried on for profit. This definition does not include the following: bills of exchange and promissory notes not offered to the public by the drawer, maker or underwriter thereof; or mortgages and deeds of trust of property situated in this state, executed to secure the payment thereof.

Sewer Contractor:

a person engaged in the business of performing any work requiring a sewer permit. The following do not constitute a "sewer contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed sewer contractor.

A person who installs, alters, or repairs a cast-iron house sewer leading from a point 2 feet outside of a building or structure to the lot line or a cesspool or septic tank.

Signcraft:

sign painting, lettering, inscribing letters or figures on the surface of any building, glass, metal, wood or composition material, or on the surface of any material of any description, or molding of letters of metal, or tile, or carving letters of wood, or manufacturing letters of paper or any other materials for sign purposes, or building, erecting or repairing signs upon the surface of the ground, or upon the surface or roof of any building or structure, or attaching letters to the surface of any such signs.

Social Club:

a non-profit philanthropic, eleemosynary or fraternal corporation, association or organization that promotes literature, science, politics, good fellowship, philanthropy or the social or physical welfare, benefit or amusement of the membership and that maintains a club room or club house.

Soliciting:

the business of traveling from house to house taking orders for goods or advertising for future delivery.

Tile and Marble Contractor:

a person engaged in the business of setting, altering or repairing composition tile, marble, granite or other finished stone materials when used for floors, walls, wainscots, ceilings, borders, bulkheads, counters, drain boards or mantels. The following do not constitute a "tile and marble contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed tile and marble contractor.

A resident of a single-family dwelling who personally works upon such dwelling or an accessory building thereof.

A person who installs rubber tiling, linoleum, cork, composition flooring or similar materials not ordinarily used by marble or tile contractors.

Truck Transportation and Baggage Business:

the business of driving trucks for the transportation of baggage, express, freight, household goods, merchandise, materials or other personal property.

Weather Stripping Contractor:

a person engaged in the business of installing material to cover the joint of a door, window or similar opening for the purpose of excluding rain, drafts or other undesirable aspects of the outside atmosphere. The following do not constitute a "weather stripping contractor" for purposes of this chapter and are exempt from the business license tax requirement:

A salaried employee of a duly licensed weather stripping contractor.

An owner of a building who personally works upon such building. This exemption shall not apply if the building is being erected for purposes of sale.

(Ord. 1515)

A. It shall be unlawful for any person to carry on any business in the city without first having procured a business license by paying the business license tax hereinafter prescribed.

B. Business license taxes shall be paid in advance in lawful money of the United States of America in accordance with the following due dates unless otherwise specifically provided herein:

1. Daily Taxes. Due on the effective date of the license.

2. Annual Taxes. Due on the first day of July.

3. New Businesses. Business license taxes for new businesses commenced after the first day of July are due within 30 days of the commencement date. The tax for a new business shall be the annual amount unless the business commences in the second half of a fiscal year, in which case the tax shall be half of the annual amount. In subsequent years taxes shall be due on the 1st day of July.

(Ord. 1515; Ord. 1524)

The business license tax for fiscal year 1988-89 shall be $100 for each business, or the amount computed in accordance with the tax rate schedules of this chapter, whichever is greater.

(Ord. 1515)

A. The following businesses shall pay an annual flat rate business license tax in the amount of $100:

1. Aircraft repairs shop.

2. Arcade.

3. Auctioneer.

4. Auto repair shop and auto parts, service and equipment business unless licensed in conjunction with the sale of new and used vehicles.

5. Auto parking space for hire.

6. Barber shop.

7. Bathhouse (public).

8. Christmas tree and ornament sales at a fixed place of business except in conjunction with sales from a location in which a valid general merchandise business license certificate is in effect.

9. Christmas tree sales (temporary) for a period not to exceed 45 days between November 1st and January 1st.

10. Cleaning and pressing establishments. This includes without limitation laundries and dry cleaning, dyeing and blocking of wearing apparel and fabrics.

11. Cold storage plant storing food and dairy products.

12. Collection agency.

13. Commercial/industrial rental of 3 or more units.

14. Contractors. This includes without limitation: building contractor; cement contractor; electrical contractor; lathing contractor; masonry contractor; painting, paperhanging and decorating contractor; plastering contractor; plumbing contractor; refrigeration contractor; roofing contractor; sewer contractor; tile and marble contractor; and weather stripping contractor.

15. Cosmetology establishment and cosmetic treatments outside a fixed place of business.

16. Dancing academy.

17. Day nurseries, kindergartens and private school.

18. Directory publication.

19. Dog and cat hospital and boarding kennel.

20. Eating establishment.

21. Employment bureau.

22. Handbill distribution.

23. Ice sale, delivery of ice, and ice vending machine.

24. Junk dealer.

25. Laundry agency and laundry outside the city where laundry is placed, collected and delivered in the city.

26. Linen supply business except if in possession valid license for laundry.

27. Livery stable and riding academy.

28. Lockers and locker storage, excluding athletic, golf and country clubs, gymnasiums and bathhouses.

29. Massage establishment.

30. Miniature trains for hire ($100.00 for each train).

31. Motels, hotels and rooming houses in which the rental term is day to day or week to week.

32. Motion picture theater, live theater or vaudeville.

33. Municipal market sales.

34. Photographer.

35. Private patrol system.

36. Professional services. This includes without limitation: doctors; dentists; lawyers; accountants; veterinarians; engineers; architects; real estate brokers; sale of securities and consultants.

37. Public dance hall.

38. Public garage.

39. Repairing, processing, or servicing goods, wares, merchandise or articles for others if not specifically required to be licensed under other provisions of this chapter.

40. Residential rental of 6 or more units.

41. Repossession agency.

42. Retail sales establishment not specifically required to be licensed under any other provision of this chapter.

43. Sales representing or advertised as bankruptcy, liquidation or close-out sale.

44. Secondhand dealer.

45. Self-employed persons not specifically required to obtain a license under any other provision of this chapter.

46. Selling goods, wares or merchandise at wholesale not specifically governed under any other provision of this chapter.

47. Shoeshine stand or parlor.

48. Shooting gallery.

49. Signcraft, except that no person in the regular employment of another holding a valid license pursuant to this chapter shall be required to obtain a license.

50. Social club.

51. Tailor shop.

52. Trade school and business college.

53. Truck transportation and baggage business.

54. Undertaker.

55. Warehouse.

56. Wedding chapel.

B. All persons engaged in the following businesses shall pay an annual flat rate business license tax of $200:

1. Advertising service (except handbill distribution).

2. Amusement park.

3. Entertainment café.

4. Animal, fish and reptile shows.

5. Commission merchants or broker.

6. Tattooing.

C. All persons engaged in the following businesses shall pay an annual flat rate business license tax as set forth below (in no event shall the annual tax be less than $100):

1. Aircraft for hire - $100 for the first aircraft and $20 for each additional aircraft.

2. Beach umbrella and equipment rental stands - $100 for the first stand and $20 for each additional stand.

3. Billiard parlor and bowling alley - $100 plus $10 for each table or alley over 10.

4. Boat rental - $100 for each boat less than 25 feet in length, plus $8.00 per foot for each boat exceeding 25 feet in length.

5. Bottled water sales (retail), excluding eating establishments, confectionery stores or similar businesses - $100 for the first vehicle used in carrying on such business plus $25 for each additional vehicle so used.

6. Boxing match (professional contest or exhibition) - $1,000.

7. Carnivals and fairs, excluding those operated by school organizations, churches, or other nonprofit organizations for charitable purposes - $6 per day for each game, exhibition, show recreational device, or concession booth.

8. Circus - $700 for the first day and $400 for each day thereafter.

9. Fire sale, excluding sales where the seller was the legal owner of the merchandise to be sold at the time of such fire - $1,200.

10. Fortune teller/psychic - $750.00 the first year and $500 thereafter.

11. Grocery bus - $1,000.

12. Herb doctors - $150 plus $20 for each additional partner.

13. Junk collector - $100, which includes the right to use one vehicle or boat; plus $20 for each additional vehicle or boat used.

14. Medicine show - $600.

15. Milk distribution - $100 plus $10 for each vehicle in excess of one.

16. Money lender - $150.

17. Motion picture or photoplay filming or production - $50 per day, except persons with a fixed place of business in the city - $150.

18. Oil business - as set forth in this title.

19. Peddler and itinerant vendor

a. Foodstuffs not otherwise provided for - $100 plus $60.00 for each vehicle in excess of one.

b. Medicine - $600.

c. All others unless otherwise required to be licensed - $100 includes the use of one vehicle or boat, plus $100 for each additional vehicle or boat.

20. Sanitariums (including rest home, convalescent home or home for the aged) that provide care for more than 3 persons at a time - $100 plus $2 for each patient in excess of 3, based on the average number of patients per day, computed monthly.

21. Selling club plans, including sale of membership in any club or cooperative association and sale of discount coupon books - $400.

22. Soliciting, canvassing or taking orders for goods or advertising, excluding representatives of an established or fixed place of business in the city who submits an affidavit to the collector not less than 48 hours before such solicitation - $200 or $10 per day.

23. Vehicles for hire

a. Vehicles that seat less than 16 people - $100 per vehicle.

b. Vehicles that seat more than 15 people - $120 per vehicle.

c. Vehicles that are designed or used primarily for transportation of property where available for lease or rental without the driver - $50 for the first vehicle plus $20 for each additional vehicle.

d. Ambulances or invalid coaches - $50 for 1st vehicle plus $20 for each additional vehicle.

e. Motor scooters - $100 plus $4 for each vehicle in excess of 5 vehicles.

24. New and used car sales, such license also authorizes the holder to repair such vehicles and sell motor vehicle parts and accessories - $150.

25. Vending machine

a. Merchandise dispensing - $20 per machine.

b. Jukebox and amusement machines, including electronic games and pinball machines - $30 per machine.

c. Photographic and voice recording machines - $100 for the first 5 machines, plus $20 for each additional machine.

26. Wrestling - $600.

D. All persons engaged in the following businesses shall pay an annual business license tax based on gross receipts (in no event shall the business license tax be less than $100):

1. Country club golf course - 40¢ per $1,000 of total gross receipts.

2. Manufacturing - 40¢ per $1,000 of total gross receipts. This includes without limitation every person manufacturing, processing, fabricating, designing, engineering any product, commodity, airplane, or ship, selling any such product at wholesale or to jobbers; or selling any such product at retail; or selling any such product at both wholesale and at retail; or any and every person contracting for or agreeing to manufacture, process, fabricate, design or engineer any product, commodity, airplane, ship, machine, vehicle, instrumentality, tool or other thing for fee, charge, valuable consideration or otherwise agreed upon sum of money.

E. All persons engaged in the business of commercial/industrial rentals of no more than 2 units shall pay an annual business license tax that is ½ the amount of the annual business license tax for commercial/industrial rentals of 3 or more units.

F. The business license tax imposed by this chapter shall not apply to any business which has gross annual receipts of $25,000 or less in the one-year period immediately preceding the issuance of a business license. To establish eligibility for this exemption, the business shall provide such financial documentation as requested by the director of finance including, without limitation, tax returns, and financial documentation. The director of finance shall establish such policies and procedures as are necessary to implement the exemption granted herein. Any business operating in the city with gross receipts of more than $25,000 annually shall pay the full amount of the applicable business license tax.

G. All persons 65 and over engaged in any home occupation, as that term is defined in the zoning ordinance, shall pay an annual flat rate tax of $50, provided that the annual income derived from such home occupation does not exceed $10,000 in any calendar year. In order to qualify for this reduced rate, licensees shall submit a copy of their most recent tax return to substantiate that the annual income derived from the home occupation does not exceed $10,000 per year.

H. All persons who qualify as "disabled" under the Americans With Disabilities Act, the Social Security Act, or the California Fair Employment & Housing Act, who receive subsidies from government or nonprofit entities because of their disability, and who are engaged in any home occupation, as that term is defined in the zoning ordinance, shall pay an annual flat rate tax of $50, provided that the annual income derived from such home occupation does not exceed $10,000 in any calendar year. In order to qualify for this reduced rate, licensees shall submit a copy of their most recent tax return to substantiate that the annual income derived from the home occupation does not exceed $10,000 per year, as well as a letter from a licensed physician certifying to their disabled status.

(Ord. 1515; Ord. 1524; Ord. 1533; Ord. 1653)

The business license tax amount set forth in this chapter, for all businesses other than those based on gross receipt taxes, may be adjusted annually on July 1st of each year in accordance with the increase in the Consumer Price Index, at the discretion of the city council. For purposes of this chapter, "Consumer Price Index" means the revised consumer price index for All Urban Consumers, Los Angeles-Long Beach-Anaheim, 1967 = 100, as prepared by the Bureau of Labor Statistics of the United States Department of Labor, or if any such agency shall cease to prepare such an index, then any comparable index covering the Los Angeles and Orange County areas prepared by any other federal or state agency that is approved by the city council.

(Ord. 1515; Ord. 1533)

A. The business license tax shall not be imposed in violation of the federal or state constitution. Any person subject to the business license tax may request that the prescribed tax amount be adjusted to comply with constitutional apportionment requirements. The adjustment application shall be filed before, concurrently with or within 6 months after payment of the prescribed tax amount. By sworn statement and supporting evidence, the adjustment applicant shall show the method of business, the gross volume or estimated gross volume of business and such other information as the collector deems necessary.

B. The collector shall investigate timely filed adjustment applications to determine whether adjustment of the prescribed tax amount is warranted to comply with constitutional apportionment requirements. When an adjustment is warranted, the collector shall fix as the business license tax for the adjustment applicant an amount that is reasonable and does not exceed the amount prescribed by this chapter. In fixing the business license tax, the collector may base the tax upon a percentage of gross receipts or other measure that will assure the tax shall be uniform with that assessed on similar businesses. If the adjustment applicant has paid the prescribed tax amount, the collector shall refund the amount paid in excess of the business license tax so fixed for the current year.

(Ord. 1515)

A. The business license tax shall not apply to any person exempt by federal or state law from payment of such tax. Without limiting the scope of the preceding, the following are exempt from payment of the business license tax:

1. Banks, pursuant to California Constitution Article XIII, Section 27.

2. Insurers, pursuant to California Constitution Article XIII, Section 28.

3. Alcoholic beverage licenses, pursuant to California Constitution Article XX, Section 22.

4. Disabled veterans, pursuant to Business and Professions Code Sections 16001 or 16001.5.

5. Community care facilities licensed by the state and serving 6 or fewer persons, pursuant to Health and Safety Code Section 1523.1.

6. Nonprofit and charitable organizations that have the appropriate tax exemption designation from federal and state taxing authorities. This includes without limitation fraternal, educational, civic and religious organizations.

7. Natural persons 19 years of age, or under, engaged in the business of lawn mowing and yard maintenance work.

B. Any person claiming an exemption pursuant to this section shall file a sworn statement, on a city-provided form, stating the facts upon which the exemption is claimed. The collector shall, upon a proper showing, issue a business license without payment of the business license tax.

C. The collector may revoke a business license granted pursuant to this section upon determining that the licensee is not entitled to an exemption. Prior to any such revocation, the collector shall give notice and a reasonable opportunity for a hearing to the licensee.

(Ord. 1515; Ord. 1533)

A. Every person required to pay the business license tax shall submit an application on a city-provided form. In the application for the business license, the applicant shall specify an address within the city to which correspondence may be sent by the city to the licensee, and a local telephone number that the city may call to contact the licensee. The applicant must consent to such communications by the city at that address and phone number prior to issuance of the business license. In the event the licensee relocates or changes the phone number, the licensee shall notify the collector in writing, at least 10 business days prior to the change. Notwithstanding the foregoing, the licensee may not change the address to an address outside of the city, and the licensee may not change the telephone number to a non-local number.

B. The collector shall issue a business license upon payment of the applicable business license tax and presentation of all permits required for operation of the business. A first time applicant for a new business taxed on the basis of gross receipts shall be required to pay the minimum tax applicable to such business for the first year of operations in the city.

C. Business licenses shall contain the following and such other information deemed necessary or appropriate by the collector:

1. The name of the person to whom the license is issued.

2. The name of the business for which the license is issued.

3. The place where such business is to be carried on.

4. The expiration date of the license.

D. No business license shall be transferable.

E. Issuance of a business license does not authorize any unlawful business.

(Ord. 1515; Ord. 1524)

The collector may suspend or revoke a business license whenever the licensee has violated this code or any other law. The licensee shall be afforded notice and opportunity for a hearing prior to any suspension or revocation.

(Ord. 1515)

Decisions of the collector to issue, suspend or revoke a business license shall be subject to the administrative review procedure of Chapter 1.20 of this code. The city council shall be the hearing officer for purposes of such procedure.

(Ord. 1515)

A. A separate business license shall be obtained for each branch establishment of a business in the city.

B. A separate business license shall be obtained for each person who operates a business as a concession or on rented floor space in premises of another person holding a business license.

C. Except as otherwise provided in this chapter, any person carrying on 2 or more businesses at the same location shall obtain a separate business license for each such business. Notwithstanding the preceding, where the business license tax for each business is based on gross receipts, a single business license tax may be paid on the basis of the combined total gross receipts of the several businesses and a single business license shall be issued. In the event the tax for each business is based on gross receipts under different tax rate schedules, the business license tax for the combined total gross receipts of the several businesses shall be based on the tax rate schedule applicable to the business activity producing the greatest amount of gross receipts.

D. A separate license is not required for an ice vending machine located at a place of ice manufacture.

E. A separate license is not required for coin-operated lockers in bowling alleys.

F. All funds derived from conducting a business in the city shall be deposited into a separate fund or bank account and shall not be commingled with any other fund or account.

(Ord. 1515; Ord. 1524)

A. The collector may determine the amount of business license tax owed by a person carrying on business in the city in any of the following circumstances:

1. Such person fails to apply for a business license.

2. Such person fails to file a required statement in a timely manner.

3. Such person files an incorrect statement or incorrectly computes the amount of tax due.

B. The determination of the business license tax owed shall be based on information available to the collector. Written notice of the determination, and a reasonable opportunity for a hearing regarding its appropriateness, shall be given to the person liable for payment of the tax. If application for a hearing is not made within the designated time, the business license tax determined by the collector shall be final and conclusive.

(Ord. 1515)

Any advertisement that a person is in business in the city shall constitute prima facie evidence of such fact unless a sworn statement denying such fact is submitted to the collector. The holding of an active license or permit indicating that a person is in business in the city shall constitute prima facie evidence of such fact unless a sworn statement denying such fact is submitted to the collector.

(Ord. 1515)

A. A business license holder may obtain a replacement license when the business associated with the license is relocated. The replacement license shall not be issued until the city has determined that the new location conforms to the zoning ordinance. The original business license shall be relinquished concurrently with the issuance of the replacement license.

B. A business license holder may obtain a replacement business license when the previously issued license has been lost or destroyed.

C. The fee for a replacement business license shall be in an amount set by city council resolution.

(Ord. 1515; Ord. 1524)

Any person carrying on business at a fixed location in the city shall conspicuously post upon the premises the business license issued for such business. All other persons carrying on business in the city shall have their business license available for immediate inspection at any time such business is in operation.

(Ord. 1515)

A. All business license taxes are delinquent as follows:

1. Daily Taxes. Delinquent at 5:00 p.m. on the due date.

2. Annual Taxes. Delinquent at 5:00 p.m. on July 30th except all annual business license taxes paid on a gross receipts basis are delinquent at 5:00 p.m. on August 31st.

3. New Businesses. Taxes for new businesses commencing after the first day of July are delinquent at 5:00 p.m. on the 30th day from the commencement date.

B. A penalty of 25% of the tax amount shall be added to each business license tax remaining unpaid 30 days after it becomes due. A penalty of 50% of the tax amount shall be added to each tax remaining unpaid 60 days after it becomes due. A penalty of 100% of the tax amount shall be added to each tax remaining unpaid 90 days after it becomes due. Notwithstanding the preceding, unpaid taxes based on gross receipts, other than taxes on new businesses, shall have a penalty of 25% added on September 1st, 50% added on October 1st, and 100% added on November 1st. All penalties shall be cumulative.

C. The collector may, upon receipt of a written request before the delinquency date, extend for not more than 30 days the deadline for paying the business license tax.

(Ord. 1515)

A. No refund of an overpayment of business license tax shall be allowed unless a claim for refund, on a city-provided form, is filed with the collector within one year from the due date of such tax. Upon the filing of such a claim and confirmation of an overpayment, the collector shall refund the amount overpaid.

B. No refund of a business license tax payment for an un-commenced business shall be allowed unless a claim for refund, on a city-provided form, is filed with the collector within 30 days from the date of such payment. Upon the filing of such a claim and confirmation that the business has not commenced, the collector shall refund 80% of the amount paid.

(Ord. 1515)

All persons subject to this chapter shall keep complete records of business transactions, including sales, receipts, purchases, and other expenditures. Such records shall be retained for examination by city representatives for a period of 3 years. No person required to keep records under this section shall refuse to allow city representatives to examine such records at reasonable times and reasonable places.

For purposes of this section, "reasonable places" shall mean locations within the city or within 35 miles of the city limits. In the event records are kept further than 35 miles from the city limits, the person required to keep the records shall be responsible for all reasonably necessary travel expenses of the city representatives, including, but not limited to, mileage, airfare, food, lodging, and time billed by consultants while traveling. The determination of whether expenses are reasonably necessary shall be at the sole discretion of the city.

(Ord. 1515; Ord. 1524)

At any reasonable time city representatives may enter a business subject to this chapter for verification of receipt of a business license. It shall be the duty of the collector to enforce all of the provisions of this chapter. The chief of police and city attorney may render assistance in the enforcement of this chapter as may be requested by the collector or the city council.

(Ord. 1515; Ord. 1524)

Final building inspection approvals shall not be issued until the building division confirms that all contractors working on the building have paid the business license tax.

(Ord. 1515)

All coin operated machines for which a business license is required shall contain in a conspicuous place an identification stamp issued by the collector. This includes amusement games, vending machines and weighing machines. Such stamp shall indicate the owner, the owner's principal place of business and the business license number of the machine.

(Ord. 1515)

A. Each contractor in receipt of a business license shall give written notice to the collector of any change of principals, partners, executive officers or business address within 5 days of such change.

B. No business license shall be issued to any contractor who has not complied with applicable state licensing requirements. A business license shall be automatically suspended, and it shall be unlawful for any licensee to do any work covered by such license, during any period in which the contractor's state license is ineffective.

(Ord. 1515)

A business license for a cosmetological establishment includes the right to sell beauty supplies owned by the owner of such business.

(Ord. 1515)

Each laundry agency shall display in a conspicuous place a sign indicating the name and address of the establishment that launders goods of a textile nature on behalf of such agency.

(Ord. 1515)

Every application for a business license for peddling or soliciting shall include a photograph of the applicant. Applications filed by a corporate entity shall include a photograph of a manager of the entity.

(Ord. 1515)

All photographic machines and voice recording machines for which a business license is required shall contain in a conspicuous place an identification stamp issued by the collector. Such stamp shall indicate the owner, the owner's principal place of business and the business license number of the machine.

(Ord. 1515)

A business license for a public garage includes the right to sell oil, grease and automobile accessories. Such license does not include the right to operate a jitney or automobile for hire, to maintain any vehicle for transporting goods, wares or merchandise for hire, or to carry on the business of selling automobiles.

(Ord. 1515)

A business license for secondhand dealers shall not be required for a person whose sales of secondhand goods are confined to the disposal of merchandise accepted in trade and as part payment for new goods sold by such person.

(Ord. 1515)

A. Any person violating this chapter shall be guilty of a misdemeanor.

B. Any person knowingly or intentionally misrepresenting to a city representative any material fact in procuring a business license shall be guilty of a misdemeanor.

C. The amount of any business license tax and penalty imposed by this chapter shall be deemed a debt to the city. The city may pursue any legal remedy available for the collection of any delinquent business license tax, and penalties and administrative costs incurred in connection therewith, including attorney fees. Neither the arrest, prosecution, conviction, imprisonment or payment of a fine for the violation of this chapter shall satisfy or diminish the indebtedness to the city created by this chapter.

(Ord. 1515)