Ventura Municipal Code Art. 1 Definitions

Unless the context otherwise requires, the definitions of the words and/or phrases which are listed below in this chapter shall govern the construction of this chapter.

“Business” shall mean all activities engaged in or caused to be engaged in the city with the object of attaining direct or indirect gain, benefit, or advantage. This includes, but is not limited to, all kinds of vocations, occupations, professions, enterprises, establishments, home occupations, and all other kinds of activities and matters, together with all devices, machines, vehicles, and appurtenances used therein, any of which are conducted, used, or carried on for the purpose of earning in whole or in part a profit or livelihood whether or not a profit or livelihood actually is earned thereby. Any other type of endeavor entered into within the city for the purpose of earning a livelihood or profit in whole or in part, whether paid for in money, goods, labor, or otherwise, and whether or not the business, profession, or trade has a fixed place of business in the city. This term does not include services rendered by an employee to their employer or an isolated transaction.

“Business tax certificate” shall mean the document issued as evidence of payment of a business license tax or exemption from payment as provided in this chapter and shall mean the same as “certificate” as used herein.

“Business tax year” shall mean the 12-month business/fiscal period as reported to the Internal Revenue Service for Federal Income Tax purposes. Examples include, but are not limited to: calendar year – January 1st through December 31st, fiscal year – July 1st through June 30th, or October 1st through September 30th.

“Collector” shall mean the city official charged with the administration of this chapter, or the city official’s designee.

“Cost of operations” shall mean the total amount expended for operating within the city, including, but not limited to, salaries and benefits, operating leases/rentals for equipment and facilities, utilities, services and supplies, materials, maintenance, and general overhead expenditures. This shall not include noncash expenditures for depreciation and amortization.

“Director” shall mean the chief financial officer or such successor position that the city may establish to perform the same functions.

“Engaging in business” shall mean commencing, conducting, or continuing in business. Proof of engaging in business includes any of the following, but is not limited to:

1. Use of signs, circulars, cards, telephone books, newspapers, or trade publications to advertise, hold out, or represent that a person or entity is in business in the city.

2. An active license or permit issued by a governmental agency indicating that such person or entity transacts business in the city.

3. Any other evidence of engaging in business.

4. The failure to deny in a sworn statement given to the collector that a person or entity is not engaged in business with the city.

5. Failure to make a profit or complete a transaction does not negate a finding of engaging in business.

“Fixed place of business” shall mean a location within the city where a person maintains or conducts a business for at least 60 days during the calendar year.

“Gross receipts” shall mean the total amount actually received or receivable from sales and/or the performance of any act or service for which a charge is made or credit allowed. Gross receipts are computed as follows:

1. Included in gross receipts are all receipts such as cash received; credits such as sales on time; and property taken in lieu of cash payments.

2. Excluded from gross receipts are:

a. Cash and jobber discounts which reduce selling price.

b. Any tax such as a sales tax, use tax, gas tax, transient occupancy tax, real property transfer tax which is measured by the sales price and is included in the purchase price and collected from the consumer or purchaser.

c. Any refund that is granted, either in cash or credit, to a purchaser who returns property upon the rescission of a contract of sale.

d. Amounts received by persons acting as agents, brokers, or trustees, where such amounts have been collected for and are paid to another party. This includes, but is not limited to: amounts collected by salesmen and transmitted to a manufacturer or distributor; trust funds received and transmitted by a trustee; fees separately itemized on statements and forwarded to a subcontractor or fee consultant as payment for services rendered; provided, that a list of subcontractors or consultants and amounts paid is reported to the city; and receipts collected for and subsequently repaid to a lessor; provided, that the name of the lessor and the amount paid is reported to the city.

e. Amounts received as refundable deposits, except those amounts that are forfeited and subsequently taken as business income.

f. Any credit that is granted for property provided by the consumer or purchaser as part of the purchase price (trade-in merchandise); provided, that the value of property taken is reported in gross receipts when sold to someone else.

g. Bad debts, when credits are reported in total in the first year and prove uncollectible in a subsequent year.

h. Passive income such as interest on investments, dividends, occasional sale of property or surplus equipment, etc.

i. Receipts not taxable by virtue of provisions included in the federal or state Constitution.

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

“Nonprofit corporation or organization” shall mean an entity which is organized not for profit, directly or indirectly, but for public, charitable, or religious purposes, which is exempt from paying federal income tax by virtue of its nonprofit status.

“Person” shall mean any individual, employee, agent, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, association, company, joint stock company, business trust, domestic or foreign corporation, syndicate, society, or any group of individuals acting as a unit, whether mutual, cooperative, social, nonprofit or otherwise, and any natural person who as an individual or with a spouse owns 51 percent or more of the capital stock of a corporation obligated to pay taxes pursuant to this chapter.

“Research and development” shall mean any person engaged in the activity of research and development as a separate and independent activity in support of business, industry, and other vocations including, but not limited to, study, testing, design, analysis, and experimental development of products, processes, or services. Such activities may include incidental manufacturing of products or provision of services.

“Sale” shall mean the transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying, or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.

“Sworn statement” shall mean an affidavit sworn to before a person authorized to take oaths, or a declaration made under penalty of perjury. (Code 1971, § 2100; Ord. No. 2018-020, § 1, 12-3-18; Ord. No. 2022-002, § 14, 3-21-22)