Sebastopol Municipal Code Ch. 5.04 Business Licenses and Regulations

Business. As used in this chapter, “business” includes professions, trades, occupations, and all and every kind of calling whether or not carried on for profit.

Person. As used in this chapter, “person” includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts, business or common law trusts, societies, and individuals transacting and carrying on any business in the City of Sebastopol, other than as an employee.

Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the City of Sebastopol and shall remain subject to the regulatory provisions of other ordinances.

The ordinance codified in this chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation.

Neither the adoption of the ordinance codified in this chapter nor its superseding of any portion of any other ordinance of the City of Sebastopol shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date hereof, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed, or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.

There are hereby imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person to transact any or carry on any business, trade, profession, calling or occupation in the City of Sebastopol without first having procured a license from the City to do so and paying the tax hereinafter prescribed.

This section shall not be construed to require any person to obtain a license prior to doing business within the City if such requirement conflicts with applicable statutes of the United States or of the State of California.

Persons not required to obtain a license prior to doing business within the City because of conflict with applicable statutes of the United States or of the State of California shall be liable for payment of the tax imposed by this chapter.

A separate license must be obtained for each branch establishment or location of the business transacted and carried on and for each separate 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 and other uses 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.

A. Conflict with United States or State Law. 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 Constitution or applicable statutes of the United States or of the State of California from the payment of such taxes as are herein prescribed.

B. Charitable Purposes. The provisions of this chapter shall not be deemed or construed to require the payment of a license tax to conduct, manage or carry on any business, occupation or activity or require the payment of any license tax from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes and from which profit is not derived either directly or indirectly by an individual, firm or corporation; nor shall any license tax be required for the conducting of any entertainment, concert, exhibition, or lecture on scientific, historic, literary, religious or moral subjects, whenever the receipts of any such entertainment, concert, exhibition or lecture on scientific, historic, literary, religious or moral subjects are to be appropriated to any church, school or veteran association, or to any religious or benevolent purpose within the City of Sebastopol; nor shall any license tax be required of any recognized lodge or fraternal organization, nor any license be required of any person under any section hereof for engaging in business dealing solely in farm products produced by him or on land owned by him.

C. Claim for Exemption. Any person claiming an exemption pursuant to this section shall file a verified statement with the Finance Director stating the facts upon which exemption is claimed.

D. Licensed. The Finance Director, upon a proper showing contained in the verified statement, may issue a license to such person claiming exemption under this section without payment to the City of the license tax required by this chapter.

E. Revocation. The Finance Director, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein.

Every person required to have a license under the provisions of this chapter shall make application for the same to the Finance Director of the City of Sebastopol, and upon the payment of the prescribed license tax, the Finance Director shall issue to such person a license which shall contain:

A. The name of the person to whom the license is issued;

B. The business licensed;

C. The place where such business is to be transacted and carried on;

D. The date of the expiration of such license; and

E. Such other information as may be necessary for the enforcement of the provisions of this chapter.

Upon a person making application for the first license to be issued hereunder or for a newly established business, such person shall furnish the Finance Director, 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 Finance Director, under penalty of perjury, setting forth such information, as may be therein required and as may be necessary to determine the amount of the license tax to be paid by the applicant.

The Finance Director shall not issue to 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 herein required.

Upon notice from the Finance Director, the applicant for the renewal of a license shall submit to the Finance Director, for his guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement upon the form to be provided by the Finance Director, under penalty of perjury, or sworn to before a person authorized to administer oath, setting forth such information concerning the applicant’s business during the preceding year as may be required by the Finance Director to enable him to ascertain the amount of the license tax to be paid by said applicant pursuant to the provisions of this chapter. The Finance Director may waive the requirements of this section in any case in which he feels the information he has is sufficient.

No statements shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City of Sebastopol from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the City Finance Director or authorized employees of the City, who are hereby authorized to examine, audit and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee due. All licensees, applicants for licenses, and persons engaged in business in the City of Sebastopol are hereby required to permit an examination of such books and records for the purposes aforesaid. The information furnished or secured pursuant to this section or SMC 5.04.090 and 5.04.100 shall be confidential. Any unauthorized disclosure or use of such information by any officer or employee of the City of Sebastopol shall constitute a misdemeanor.

If any person fails to file any required statement within the time prescribed or if after demand therefor made by Finance Director he fails to file a corrected statement, the Finance Director may determine the amount of license tax due from such person by means of such information as he may be able to obtain. If such a determination is made the Finance Director shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Sebastopol, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within 15 days after the mailing or serving of such notice, make application in writing to the Finance Director for a hearing on the amount of the license tax. If such application is made, the Finance Director shall cause the matter to be set for hearing within 15 days before the City Council. The Finance Director shall give at least 10 days’ notice to such person of the time and place of hearing in the manner prescribed above for service of notices of assessment. The council shall consider all evidence produced and shall make findings thereon which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed above for service of notices of assessment.

Any person aggrieved by any decision of the Finance Director with respect to the issuance or refusal to issue such license may appeal to the council by filing a notice of appeal with the City Clerk. The Council shall thereupon fix a time and place for hearing such appeal. 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 Post Office at Sebastopol, California, postage prepaid addressed to such person at his last known address. The council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter.

In addition to all other power conferred upon him, the Finance Director shall have the power for good cause shown to extend the time for filing any required sworn statement for a period not exceeding 30 days, and in such case to waive any penalty that would otherwise have accrued and shall have the further power, with the consent of the council, to compromise any claim as to amount of license tax due.

A. Amended License for Charged Locations. No license issued pursuant to this chapter shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may, upon application therefor and paying a fee as may be prescribed by a resolution of the City Council, have the license amended to authorize the transacting and carrying on of such business under said license at some other location to which the business is or is to be moved.

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

A. Any licensee transacting and carrying on business at a fixed place of business in the City of Sebastopol shall keep the license posted in a conspicuous place upon the premises where such business is carried on.

B. Any licensee transacting and carrying on business but not operating at a fixed place of business in the City of Sebastopol shall keep the license upon his person at all times while transacting and carrying on such business.

Unless specifically provided in SMC 5.04.190(D)(4), or elsewhere in this chapter, all annual license taxes, under the provisions of this chapter, shall be due and payable in advance on January 1st of each year. Such licenses shall be delinquent 30 days after they are due. All license taxes covering new operations commenced after April 1st shall be required to pay 75 percent of the license payment. Licenses applied for after July 1st shall be 50 percent of the license payment. Licenses applied for after October 1st shall be 25 percent of the license payment. All licenses shall be issued for the remainder of the calendar year unless otherwise specified in this chapter. All other licenses which are on a daily, weekly or monthly rate shall be payable in advance.

Upon the delinquency date of any license tax, as provided in SMC 5.04.170, the Finance Director shall add a penalty of 25 percent license tax on the first day after the delinquency date and 25 percent each month thereafter; provided, that the amount of such penalty added shall in no event exceed 100 percent of the amount of the license tax due.

A. Every person transacting or carrying on the business of retailing of goods, wares, or merchandise; wholesaling of goods, wares or merchandise; manufacturing, fabricating, or processing; or sale of services at retail or wholesale (including barber shops, beauty shops, bookkeeping services, and real estate offices) shall pay the following rates not otherwise expressly provided for in this chapter:

1. For three or fewer persons based upon an average for the preceding six months including officers, partners, owners, and employees who devote more than 20 hours per week to the business, the sum of $90.00 per year.

2. For four to seven persons as defined in subsection (A)(1) of this section, the sum of $135.00 per year.

3. For eight to 14 persons as defined in subsection (A)(1) of this section, the sum of $200.00 per year.

4. For 15 or more persons as defined in subsection (A)(1) of this section, the sum of $340.00 per year.

B. Deliveries. Persons not within the provisions or prohibitions of this chapter or other ordinances of the City of Sebastopol who deliver articles to private residences or to public places of business not owned by such persons, including for-hire delivery service not otherwise exempt by State law, the sum of $90.00 per year.

C. Professions. All professions or professional offices including, but not limited to, certified public accountants, architects, attorneys, dentists, doctors, engineers, and other similar types:

1. For the operation of the office and one licensed person, the sum of $150.00 per year.

2. For each additional licensed person of any of the above listed professions, the sum of $75.00 per year.

D. Contractors.

1. Contractors licensed by the State of California as either an “A” or a “B” type license as determined by the State Contractor’s License Board with their principal place of business within the City boundaries, the sum of $100.00 per year.

2. All other contractors not operating a retail or wholesale business in conjunction with their contracting business in the City of Sebastopol, the sum of $75.00 per year.

3. All other contractors operating a retail or wholesale business in conjunction with their contracting business in the City of Sebastopol, the sum set forth in subsection A of this section.

4. Contractors or subcontractors who do not have their principal place of business within the City of Sebastopol may pay the license tax as set forth in subsections (D)(1) and (2) of this section on a calendar quarter basis, at the rate of $35.00 per quarter.

E. Carnivals, Circuses, Tent Shows, Street Fairs. The sum of $150.00 for the first 24 hours and $75.00 for each 24 hours thereafter.

This subsection shall not apply to school street fairs or church street fairs or farm or rural street fairs or municipal street fairs where the same are conducted as a public enterprise for the community and where a permit or exemption has been granted upon motion of the City Council after a written request to said City Council prior to the conduct of such activities.

F. Rental Units. Every person owning, leasing, subleasing, or in any way exercising control over four or more rental units and/or collecting rents, or income therefrom within the City of Sebastopol including, but not limited to, apartment houses, hotels, motels, boarding houses, rest homes, convalescent homes, trailer parks, mobile home parks, or uses of a similar nature, shall pay an annual license tax as follows:

1. Four dwelling units, rooms or trailer spaces, the sum of $60.00.

2. For each additional unit or room or trailer space, the sum of $3.00 per unit with a maximum of $112.50.

G. Public Dances. Every person carrying on the business of conducting public dances at which an admission fee is charged, collected or received, the sum of $75.00.

Where such dances are conducted by and are for the benefit of a social, civic, veteran, religious or fraternal organization which has applied for and received an exemption, no fee shall be charged.

H. Arcades, Amusement or Recreation Parlors. The sum of $150.00.

The license tax provided for in this subsection shall be in addition to any other license taxes as provided for in subsection K of this section or any other section of this chapter.

I. Billiard Rooms, Pool Rooms, Ice Rinks and Roller Rinks. The sum of $60.00.

J. Bowling Alleys. The sum of $60.00 per year together with the sum of $3.75 per lane for each lane in excess of 12 lanes, with a maximum annual license of $150.00.

K. Vending Machines.

1. Any person renting, leasing or operating coin-operated machines within the City of Sebastopol, other than coin-operated play devices as defined herein, shall pay a business license tax equal to 1.5 percent of the gross receipts from all such machines within the City, except that any machine owned and operated by the owner of a business where the machines are located and dispensing tangible personal property shall be exempt from the tax provided in this subsection as long as the owner of such business has been issued a license under other provisions of this chapter and said license is in full force and effect and the use of said machine or machines is incidental to the business so licensed.

2. Coin-Operated Play Device. A coin-operated play device means any coin-operated vending machine, device, or apparatus, the operation or use of which is permitted, controlled, allowed, or made possible by the deposit into such machine any coin, token, disc or slug or by the payment of any fee for use as a game of chance or contest or which may be used for any such game or contest.

3. Any person exclusively renting, leasing or operating a coin-operated play device as defined herein, within the City of Sebastopol, shall pay a business license tax equal to three percent of the gross receipts from each machine within the City of Sebastopol.

4. In addition to the statements required by SMC 5.04.090 and 5.04.100, each applicant for a first or renewal license under this section shall furnish such information as the Finance Director may require in order to properly calculate the estimated tax for the year that application is made. The City may demand an audit of any such licensee and require him to submit a copy of the State sales and use tax returns filed relative to such machines and a copy of any other tax statement filed with any government entity by said person owning, renting, leasing or operating such machine disclosing the gross receipts received from owning, renting, leasing or operating such machines at such time as may be requested by the Finance Director.

L. Solicitors, street peddlers, or vendors shall pay the sum of $150.00 per year subject to the modifications set forth below:

1. The above rates shall apply to each individual solicitor and such licenses are not transferable.

2. This subsection shall not apply to that class of persons ordinarily called traveling men who sell by sample to the trade only, but shall apply to all other persons, firms or individuals, or corporations who either sell or deliver from place to place or who conduct or establish a place of business or vend upon the streets or who solicit or deliver by truck or other containers to the trade when the same is done over the streets of the City of Sebastopol.

3. This subsection may be suspended by resolution of the City Council and upon such suspension all licenses of solicitors, street peddlers, and vendors shall be suspended in the specific area and for the specific period as the Council may determine by said resolution.

4. The Council may adopt such resolution when there are special events in the City and where the circumstances will result in a substantial increase in the use of the City streets or other public facilities. Said suspension shall not exceed five days at any one time.

5. During such period of suspension, the following regulations shall apply and shall be set forth in the resolution:

a. City may issue special vendor, solicitor or street peddler licenses during such period of suspension in the quantity to be determined in said resolution and for the period of such suspension.

b. Where a limited number of licenses are to be established all applicants for such licenses shall be combined and the persons to receive those licenses shall be drawn by lot at random.

c. All successful applicants shall be required to pay an additional fee to be determined by said resolution to reimburse the City for the additional clean-up expenses which will be incurred during said period.

d. The area in which said special vendor, solicitor and street peddler licenses are effective shall be limited to the area designated by the City Council and said licensee shall not be permitted to operate outside of said area.

M. Theaters.

1. Movie Theaters or Concert Halls or Similar Operations. Six hundred seats or less, the sum of $60.00 per year. More than 600 seats, the sum of $112.50 per year.

2. Drive-In Theaters. One hundred parking spaces or less, the sum of $112.50 per year. More than 100 parking spaces, $187.50 per year.

N. Part-Time Occupations. Any business, and/or profession, including home occupations, which meet all of the following qualifications shall pay a license tax of $27.00 per year.

1. The gross receipts of the business are $3,000 or less per year.

2. There are no employees other than the owner or operator.

3. The owner or operator devotes less than 30 hours a week to the operation or conduct of said business, trade, profession or home occupation.

4. The provisions of this subsection shall not be applicable to persons required to be licensed under subsections F and L of this section.

O. Advertising.

1. All persons engaged in the erection, operation of, and maintaining outdoor advertising or display signs, self contained or in any building or structure, regardless of size, $60.00.

2. Advertising by means of handbills, stickers, advertising samples (excepting political advertisement by a candidate for office), $37.50 per person per year and $3.00 per person per day of distributing.

3. Advertising by means of display advertisement towed by a vehicle on public streets, without sound equipment, $37.50 per year.

4. Advertising by means of display advertisement towed by a vehicle on public street with sound equipment, $60.00 per year.

P. Business Not Otherwise Licensed. Every person not otherwise licensed by other special provisions of this chapter having a fixed place of business in said City or not having a fixed place of business within the City, selling or keeping for sale goods, wares or merchandise or any work or for labor performed or who conducts or carries on any line of business therein shall pay the license tax as provided in subsection A of this section.