Walnut Municipal Code Ch. 4.04 Business Licenses and Permits

A. Grounds. Any license or permit issued under this chapter may be revoked or suspended in the following instances:

1. Where the City Council has found and determined that the preservation of the public health, safety and peace demands revocation of the license or permit.

2. Where the licensee or permittee has violated any provisions of this chapter or any other provisions of this code or any other provision of law.

3. Where a permit or license has been granted on false or fraudulent evidence, testimony or application.

4. Where the licensee or permittee has violated the terms and provisions of the license or permit.

B. Hearings. No license or permit shall be revoked or suspended until the licensee or permittee has had a public hearing before the City Council and has had an opportunity either personally or by counsel or by both to defend him or herself and present evidence on his or her behalf. Such public hearing shall be preceded by reasonable notice as provided in the rules and regulations of the City Council. Notwithstanding the foregoing the City Clerk may suspend pending such a hearing any license or permit where it has been determined that:

1. Upon the recommendation of the law enforcement agency that an immediate suspension of the license is necessary for the protection of the public health, safety and welfare.

2. In the event of such a suspension, the City Clerk shall within 12 hours after the suspension, cause to be served upon the licensee or permittee a written statement containing the grounds for the suspension and a notice of hearing to show cause before the City Council why the license or permit should not be permanently revoked. The hearing shall be held not later than five days following the service of such notice.

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

"Business"

means professions, trades and occupations and all and every kind of calling carried on for profit or livelihood.

"Employee"

means all persons engaged in the operation or conduct of any business, whether as owner, any member of the owner’s family, partner, agent, manager, solicitor and any and all other persons employed or working in said business.

"Occasional"

means transacting or conducting any business within the City no more than two times per fiscal year.

"Person"

means 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.

"Street"

means every street, boulevard, avenue, highway, alley, or road within the City which has been or may hereafter be indicated as such and opened to public use.

"Wheeled vehicle"

means automobile, truck, tank truck, trailer, wagon, cart and any and all other contrivances used or capable of being used as a means of transportation of persons or property that move or roll on one or more wheels.

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

Any person required to pay a license tax for transacting any and carrying on any business under this chapter shall be relieved from the payment of any license tax for the privilege of doing such business which may be required under any other law of the City, but shall remain subject to the regulatory provisions of this code. This section shall not apply to inspection fees.

No person shall commence or carry on, either directly or indirectly, any business, profession or trade or occupation, as defined in this chapter, within the City, whether or not such person has a fixed place of business within the City or elsewhere, without first having procured a license as required by the provisions of this chapter, unless exempt therefrom as provided in this chapter, and without otherwise complying with all the terms and conditions of this chapter. The commencement or carrying on of any such business, or profession, or trade or occupation without having first procured and maintained in good standing a business license, as well as a permit when required under this chapter, without first complying with any and all regulations pertaining to such business as provided in this chapter, shall constitute a separate violation of this code for each and every day that such business, profession or trade or occupation is so carried on.

A separate license shall 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 transfer and carry on only the business licensed thereby at the location or in the manner designated in such license; provided, that warehouses and distribution 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.

Every person required to have a license under the provisions of this chapter shall make application for the same to the City Clerk, and upon the payment of the prescribed tax, the City Clerk shall issue to such person a license which shall contain: (1) the name of the person to whom the license is issued; (2) 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; and (5) such other information as may be necessary for the enforcement of the provisions of this chapter.

Before any license is issued to any person, such person shall make written application therefor to the City Clerk. Such application shall state the nature or kind of business, trade, occupation or calling for which the license is required; the place and zone classification where such business, trade, occupation or calling will be carried on or conducted; the name of the owners of the business, trade, occupation or calling; a plot plan drawn to at least one-eighth inch scale showing all property boundary lines, building locations and off-street parking; a floor plan drawn to at least one-fourth inch scale showing the location of all counters, equipment, partitions, sinks, plumbing, walls, electrical and other alterations or improvements necessary for the operation of the business and shall be signed by the applicant. In cases where such business, trade, occupation or calling is not to be conducted or carried on at a permanent place of business in the City, then such application shall state the residence of the owners of such business, trade, occupation or calling.

A. All licenses, unless otherwise specified, are annual licenses and shall be for a term commencing on July 1st and expiring on June 30th of each calendar year.

B. All license fees shall be paid in advance to the City Clerk in the amounts established in this chapter.

C. For businesses taxed on gross receipts, the license fee for a given annual term shall be based upon the gross receipts for the previous year.

A. Schedule. No license tax shall be required of or from the following:

1. Those exempt from municipal license tax by virtue of the Constitution and the laws of this state or the United States.

2. Any honorably discharged soldier, sailor or marine of the United States, peddling, hawking or vending any goods, wares or merchandise permitted by law and exempt from license tax by virtue of the laws of the State, who exhibits his or her authenticated discharge papers and an application that is approved by the Council of the City; provided, that no more than one license shall be issued to such applicant during any one year.

3. Any person peddling exclusively any fruit or vegetables or other produce raised upon his or her lands; provided, that such person shall furnish conclusive proof to the City Clerk that such products were raised by him or her on his or her lands before the issuance of license exempt from tax, and any person so peddling shall carry the license with him or her.

4. Any doctor, lawyer, architect, dentist or other professional person not having a fixed place of business within the City, who is called upon to come to the City to render occasional services; provided, that nothing in this section or any subsection hereof shall exempt any person from complying with any of the regulatory measures of provisions of this code save and except the payment of license taxes required thereby; provided further, that any license exempt of tax is nontransferable.

5. No public utility making franchise payments to the City, nor any person doing business exclusively with the City either with or without a contract, shall be subject to the provisions of this chapter.

B. Application. Any person claiming an exemption pursuant to this chapter shall file a verified statement with the City Clerk stating the facts upon which exemption is claimed.

C. Granting. The City Council shall, upon the proper showing contained in the certified statement, direct the City Clerk to issue a license to such person claiming exemption without payment to the City of the license tax required by this chapter.

D. Revocation. The City Council may revoke any license granted upon information that the licensee is not entitled to the exemption as provided herein.

Every person who transacts and carries on in the City any business in a home in a residential zone, whose annual gross receipts from such business are $1,000.00 or less, shall be exempted from the payment of a license tax hereunder; provided, that applicant furnishes conclusive proof to the City Clerk that the annual gross receipts of such business do not exceed $1,000.00; provided, that the applicant shall pay a fee of five dollars to defray the cost of the issuance of such a license.

A. Required. In all cases where the amount of license to be paid by any person is based upon the number of men or women employed, or upon the number of wagons or other wheeled vehicles used, or upon the amount of maximum admission fee charged, or upon the number of tables, alleys or other devices used for any game, or upon the number of rooms in any building or upon the seating capacity of any building, or upon the number of machines used in any business, such person shall, before obtaining a license for his or her business, render to the City Clerk for his or her guidance in ascertaining the amount of license to be paid by such person, written statement sworn to before some officer authorized to administer oaths, showing the average number of employees employed by such person during the license period next preceding the date of such statement, or the number of wagons or other wheeled vehicles used, or the amount of the maximum admission fee charged, or the number of tables, alleys or other devices used for any game by such person, or the number of rooms or seats in such building at the date of such statement, or the number of machines used in said business.

B. Not Conclusive—Verification. No such statement shall be conclusive upon the City or upon any officer thereof as to the matters therein set forth, and the same shall not prejudice the rights of the City to recover any amount that may be ascertained to be due from such person, in addition to the amount shown by such statement to be due, in case such statement be found to be incorrect. The correctness of all such statements shall be subject to verification by the City Clerk or his or her properly authorized deputies who are hereby authorized and empowered to inspect and audit the books and records of any and all persons licensed to carry on any trade, business, occupation or calling.

C. Refusal to Make Statement—Use for First License. If any person hereby required to make any such statement shall refuse to do so, such person shall be required to pay a license at the maximum rate herein prescribed for the profession, trade, calling or occupation carried on by such person, and shall be guilty of a violation of this chapter and be punishable therefor as provided in this code; provided, that in any case where the first license is to be used for a newly established business, a statement shall be made at the time such first license is issued of the estimated average number of employees or of the number of wagons or other wheeled vehicles to be used, or of the number of tables, alleys or other devices to be used for any game, and the license tax based upon such estimation shall be paid at the time such first license is issued for any such newly established business. Within 30 days after the end of the license period for which the license is issued, such person shall file a statement with the City Clerk as to the actual number of persons employed during such period and pay any additional amount of license due at that time. The statements filed pursuant to the provisions of this section shall be deemed confidential in character and shall not be subject to public inspection. It shall be the duty of the City Clerk to so preserve and keep the statements that the contents thereof may not become known, except to the persons charged by the law with the administration of this code.

D. Assessment of Fee Upon Failure to Make Statement. If any person fails to file any required statement within the prescribed time, the City Clerk shall assess the maximum license rate prescribed for the profession, trade, calling or occupation carried on by such person as hereinabove provided by giving written notice of the amount assessed by serving it personally or by depositing it in a United States Post office in the City, postage prepaid, addressed to the person so assessed, at his or her last known address. Such person may, within 10 days after the mailing or serving of such notice, make application in writing to the City Clerk for a hearing on the amount of the license tax. If such application is not made within the time prescribed, the assessment shall become final, and if such application is made within the time prescribed, the City Clerk shall cause the matter to be set for hearing before the City Council. The City Council shall consider all evidence produced and the amount of the license tax so determined by the City Council shall be the amount due and payable for such license.

In determining the number of employees for the purpose of fixing the license tax due, the employer shall take the number of employees earning wages during pay periods ending the nearest 15th day of each month as shown on Form DE3 of the State Department of Employment, or other form which may hereafter be adopted for reporting payments due under the Unemployment Insurance Act for each month of the previous calendar year, adding the same and dividing by 12; if the employer has been in business less than one year, he or she may use the average number of employees as shown by such form for the last quarter; if the employer has not previously engaged in business, he or she may estimate the average number of employees who will be employed by him or her during the remainder of the calendar year.

Unless specified otherwise, all licenses shall be subject to renewal on July 1st of each calendar year and the fee for the same shall be immediately due and owing. Every person failing to pay the license fee on said date shall be subject to a penalty of 10% of the amount of the license for each 30 days thereafter until the same plus the penalty fees have been paid in full.

Any person who fails to file any required application or written statement shall become liable for the penalty set forth in Section 4.04.140 from the first date the person should have filed the application or written statement and the penalty shall be added to the amount of license fee. The City Clerk determines the fee the person would have paid if the person had applied and obtained a license as required under this chapter.

If any person fails to file an application statement required by this chapter within the time prescribed hereby, or after demand therefor, made by the City Clerk, fails to file a corrected application statement, the City Clerk may determine the amount of the license fee due from such person from such information as he or she may be able to obtain and, if necessary, may estimate the fee required to be paid hereunder upon the basis of external indices on hand, capital invested, dividends paid, sales or other taxes paid, number of persons employed, or by considering other facts. In such a case the City Clerk shall give notice of the amount so assessed by serving the same personally or by depositing the same in the United States Post Office in the City, with postage prepaid thereon, addressed to the person so assessed at his or her last known address. The amount herein set forth shall be assessed as of that date and shall be due and owing as of the first time the amount would have been due and owing under this chapter in the amount set forth in this chapter plus all penalties imposed in said chapter.

A. The City Clerk is hereby designated as the license tax collector of the City and shall have the duties imposed by this code upon the license tax collector.

B. It is the duty of the City Clerk to keep a list of all delinquent licenses that are payable under this chapter, upon the same coming to his or her knowledge, and he or she shall immediately proceed to collect the same in his or her discretion by suit or otherwise.

C. All officers and employees of the City shall render such assistance in the enforcement hereof as may from time to time be required by the City Clerk or the City Council.

D. The City Clerk and each and all of his or her assistants and any police officer shall have the power and authority to enter free of charge and at any reasonable time any place of business required to be licensed herein and demand the exhibit of the license certificate. Any person having such license certificate theretofore issued in his or her possession or under his or her control who willfully fails to exhibit the same on demand shall be guilty of a misdemeanor and subject to the penalties provided for by the provisions of this code. It is the duty of the City Clerk and each of his or her assistants to cause a complaint to be filed against any and all persons found to be violating any of such provisions.

The amount of any license tax and penalty imposed by the provisions of this code 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 license tax and penalties imposed on such business.

The conviction and fine or 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 prevent a criminal prosecution for the violation of any of the provisions of this code. All remedies prescribed hereunder 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 hereof.

A. In the event that any person is conducting, managing or carrying on more than one of the several businesses required to be licensed in the same location, and under the same management, the license tax to be paid by such person shall be the full license tax based upon the total number of employees employed at such location; provided, that such businesses are subject to a license tax based upon the average number of employees employed.

B. In the event that any person is conducting, managing or carrying on more than one of several businesses required to be licensed at the same location, which businesses are subject to a license tax in specified amounts, the license tax to be paid by such person shall be the full license tax of whichever business calls for the highest license tax, and in addition thereto, 50% of the license tax applicable to each of the other businesses.

C. In the event that any person is conducting, managing or carrying on more than one of several businesses required to be licensed in the same location, and one of such businesses is subject to a license tax based upon the average number of employees employed, and the other business or businesses are subject to a license tax in a specified amount, then in such event separate licenses shall be obtained, and a license tax paid based upon a license tax in the specified amount; provided, that the total license tax to be paid shall be based upon the specified amount due from the business which is required to pay the highest license tax, and in addition thereto 50% of the amount of license tax due from each of the other businesses.

There shall be no refund by the City of any fees or taxes paid pursuant to the provisions of this chapter; except, that in the event the City Council, by ordinance, declares a business or trade or profession unlawful to be operated or carried on, then upon application to the City Council, the City Council shall refund to the owner of such business, trade or profession so declared unlawful the proportionate amount of the fee or tax actually paid by the owner.

The following shall constitute grounds for denial of a license:

A. The business is prohibited by any local or state law, statute, rule or regulation, or prohibited in the particular location by any law, statute or rule.

B. The business has been or is a public nuisance.

C. The applicant is unfit to be trusted with the privileges granted by such license, or has a bad moral character, intemperate habits or a bad reputation for truth, honesty or integrity.

D. The applicant, his or her agent or employee, or any person connected or associated with the applicant as partner, director, officer, stockholder, associate or manager has committed or aided or abetted in the commission of any act or act of omission which, committed by a licensee would be a ground for disciplinary action under this chapter.

E. The applicant, his or her agent or employee, or any person connected or associated with the applicant as partner, director, officer, stockholder, associate or manager has been refused a license or had a license revoked by the City, or by any other public agency on any ground on which the City could deny such a license except in subsection A of this section or has been an officer, director, member, partner or manager of any person, corporation or other business entity of whatever form, which has been refused a license or had a license revoked by the City or by any other public agency.

F. The establishment or business will in any way be detrimental to the public interest.

No license 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 of $1.50, have the license amended to authorize the transacting and carrying on of such business under the license at some other location to which the business is or is to be moved.

A duplicate license may be issued by the City Clerk to replace any license previously issued which has been lost or destroyed, upon the licensee’s filing an affidavit attesting to such fact, and at the same time of filing such affidavit, paying to the City Clerk a duplicate license fee of $1.50.

All licenses shall 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 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 shall keep the license upon his or her person at all times while transacting and carrying on such business.

C. Any licensee to whom a license has been issued, which license is determined by the number of vehicles used by the licensee in the conduct of his or her business in this City, shall attach to each such vehicle a sticker, device or sign issued by the City Clerk for identifying such business. The license shall not be construed to be a license for the operation of such vehicle, but is to be construed as merely an identification confirming that the licensee has paid his or her business license tax to the City. In the event the licensee shall use a substitute or alternate vehicle for the vehicle normally carrying an identification device or sticker, the licensee may obtain an additional identification sticker for such substitute or alternate vehicle by applying in writing to the City Clerk and setting forth that such substitute or alternate vehicle will not be used in the City on days when the regular vehicle or vehicles will be used in the City.

For good cause shown, the City Council may, upon application, waive the fee set pursuant to this chapter for 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, or any enterprise or entertainment when the receipts derived therefrom are to be apportioned solely to any church or school or to any religious or benevolent or charitable purpose. The City Council may by resolution approve a list of charitable institutions, organizations, groups or individuals which have previously been approved for waiver under this section and Sections 4.12.020 through 4.12.130 and which may be approved for waiver of those fees and provisions administratively by the City Manager or designee.

A. All police officers are hereby appointed inspectors of licenses, and in addition to their several duties as police officers, are hereby required to examine all places of business and persons in their respective beats liable to pay a license, for the purpose of ascertaining whether the same has or have been obtained and is or are being exhibited, and shall have and exercise the power:

1. To make arrests for the violation of any of the provisions of this chapter.

2. To enter free of charge, at any time, any place of business for which a license is required and to demand the exhibition of such license for the current year by any person engaged or employed in the transaction of such business, and if such person shall then and there fail to exhibit such license, such licensee shall be liable to the penalty provided herein for a violation of this code.

3. To conduct investigations of applicants or other persons associated with a license or permit.

4. To enter free of charge, at any time, any place of business for which a license or permit is required, to review the operation, and if such business is found to be operating in violation of any codes or laws, such licensee or permittee shall be liable to the penalty provided herein for a violation of said code or law.

B. A business licensee shall be responsible for and shall provide that all areas of the premises shall be readily accessible and open to view in its entirety at all times for inspection by any City official or any law enforcement officer.

C. It is hereby made the duty of the police officers of the City to notify the City Clerk, in writing, of any person violating any of the provisions of this chapter.

No license shall be issued to any person failing to present any land use permit required by the zoning provisions of this code, or whose property upon which the business is located fails to conform with the zoning provisions of this code, or who has failed to comply with the provisions of any Federal, State or municipal law or regulation having to do with trade, business or occupation.

The fact that a business may be licensed under the provisions of this chapter shall not vest the owner, manager or operator thereof with the right to carry on or maintain such business contrary to any other section of this code or exempt such person from obtaining a regulatory permit pursuant to any other section of this code which may be in effect now or subsequently adopted.

Any person aggrieved by any decision of an administrative officer or agency with respect to the issuance or refusal to issue such license may appeal to the City Council by filing a written notice of appeal with the City Clerk. The matter shall thereupon be placed on the agenda of the Council at its second regular meeting following the filing of the written notice of appeal.