Willits Municipal Code Ch. 5.04 General Business Tax

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

"Business" includes professions, trades, and occupations and all and every kind of calling carried on with or without the intent of making a profit.

"Cannabis industry tax" means any tax due pursuant to Chapter 5.10 of this Code.

"City" means the city of Willits.

"Fixed place of business" means the premises where business is regularly transacted and where the circumstances show an intention to be an established part of the business life of the city.

"Gross receipts" includes the total of amounts actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in "gross receipts" shall be all receipts, cash, credits, and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from "gross receipts" shall be the following:

A. Cash discounts allowed and taken on sales;

B. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

C. Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit;

D. Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them;

E. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;

F. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker;

G. Receipts from the manufacture, sale, purchase or transportation of alcoholic beverages.

"Occupied dwelling" means any residence, abode or separate living unit within any apartment, duplex, condominium or structure inhabited, used, possessed or controlled by any person.

"Person" means any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, receiver, the United States, this state, any county, municipality, district, tribe or any other group or combination acting as a unit.

"Sale" includes the transfer, in any manner or by any means whatsoever, of title to real or personal 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 shall likewise be deemed a sale. The definitions in this subsection shall be deemed to include any transaction which is or which, in effect, results in a sale within the contemplation of law.

"Sworn statement" means an affidavit sworn to before a person authorized to take oaths, or a declaration or certification made under penalty of perjury in accordance with California law.

"Tax certificate" means the physical documentation verifying payment of tax, issued by the collector, indicating tax period covered.

(Ord. 95-9 § 2(part)).

(Ord. No. 18-04 § 2, 11-6-18)

There is imposed upon all persons transacting business within the city a license tax in the amount hereinafter prescribed. It is unlawful for any person to commence, transact, engage in, or carry on any business within the city without first having procured a license to do so from the director of finance of the city.

(Ord. 95-9 § 2(part)).

A separate license must be obtained for each business in which the business, trade, calling or occupation is carried on, and for each separate business at the same location. Each such license shall authorize the person obtaining it to carry on only the business specified in the license at the particular location therein specified.

A. "Branch establishment" shall include any location physically separate from the main business location wherein any work is done, services performed, goods held out for sale, or sales solicited or transacted.

B. "Branch establishment" shall not include warehouses or distributing plants incidental to a business where goods are only held or stored and where no services are performed, or goods held out for sale, or sales solicited or transacted.

(Ord. 95-9 § 2(part)).

A. Except as provided in subsection B, persons required to pay a tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax, permit, charge, assessment, or fee for the privilege of doing such business required under other laws or regulations of the city, and shall remain subject to the provisions of such other laws and regulations.

B. Persons required to pay a tax pursuant to Chapter 5.10 of this Code shall also register the cannabis business pursuant to Section 5.10.060 of this Code, but shall be exempt from the general business tax required under this chapter for any such cannabis business. The provisions of this chapter shall not be deemed or construed to require the payment of any general business tax by any person required to pay a tax under Chapter 5.10 of this Code.

(Ord. No. 18-04 § 2, 11-6-18)

Editor's note— Ord. No. 18-04 § 2, adopted Nov. 6, 2018, in effect repealed former § 5.04.040 which pertained to licensees requiring city permits and derived from Ord. 95-9 § 2 (part).

No person shall be licensed under this chapter to carry on any type of business activity at a location where such activity is prohibited by the Willits Municipal Code and in particular the Willits zoning ordinance.

(Ord. 95-9 § 2(part)).

Whenever any person applies to the department of finance for a business license, for any business conducted within a building or structure, the director of finance shall refer the application to the community development department, Little Lake fire department, police department, or any other department or agency of the city concerned with the enforcement of any codes, statutes or ordinances pertaining to the safeguarding of life or limb, health, property or public welfare. Upon such referral the city official or officials concerned with the enforcement of such codes, statutes or ordinances shall inspect the structure to be used for the proposed business, or take other action as may be necessary, to insure that the business as conducted in that location complies with the applicable building, zoning, fire and similar codes, ordinances, statutes and regulations. The issuance of a business license shall not waive or excuse noncompliance with any applicable zoning, building, fire or similar code or law.

(Ord. 95-9 § 2(part)).

Every person required to have a license under the provisions of this chapter shall make application for the same to the director of finance of the city. Such application shall be in writing and signed and shall contain the following and such additional information as the director of finance may, from time to time, require:

A. Name and address of applicant;

B. The name of the business to be licensed;

C. The type of business activity to be licensed;

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

E. The affidavit required under Section 5.04.080;

F. Such other information as the director of finance may from time to time deem necessary for the enforcement of the provisions of this chapter, including but not limited to a contractor's state license number and pesticide applicator number where applicable;

G. Each applicant shall pay a minimum fee to cover the cost of processing a license application. This fee shall be in addition to the business license tax and shall not be prorated. The fee shall not be refunded if the application is denied. If the applicant notifies the finance department of a withdrawal of the application before any field inspection or investigation has taken place, all fees paid exceeding ten dollars shall be refunded. The applicant shall pay the following application processing fee in an amount set from time to time by resolution of the Willits city council:

1. Application not requiring field inspection and/or investigation,

2. Application that requires field inspection and/or investigation.

(Ord. 95-9 § 2(part)).

Every person shall, at the end of each quarter, file with the director of finance, a written statement, subscribed and sworn to by the licensee, upon the form provided by the director of finance, setting forth the amount of gross receipts from business carried on within the city limits by said person and earned during the preceding calendar quarter, including any and all gross receipts reported to any federal or state taxing authority to which gross receipts are reported.

(Ord. 95-9 § 2(part)).

No statement or representation made by an applicant shall be conclusive upon the city, and any such statement is subject to audit and verification by the director of finance. All licensees, applicants for licenses and persons engaged in business in the city are required to permit an examination of their books and records for the purposes aforesaid. Refusal to permit such examination shall be grounds for denial of any license application and revocation of any existing license.

(Ord. 95-9 § 2(part)).

The determination of the type or class of business the applicant is engaged in or about to become engaged in is an administrative function of the director of finance.

(Ord. 95-9 § 2(part)).

The director of finance shall determine the amount of license tax due based upon the statements of the applicant and his examination and audit, if any. If any applicant fails to file any required statement or amended statement, the director of finance will determine the amount of license tax due from such person by taking one hundred twenty-five percent of the gross receipts reported by the person in any one quarter during the preceding four quarters or by means of such information as he may be able to obtain.

(Ord. 95-9 § 2(part)).

In any case where a licensee or applicant for a license is dissatisfied with a determination of the director of finance as to the classification of his/her business or the amount of license tax to be fixed, or is aggrieved by any decision of the director of finance with respect to the issuance or refusal to issue any such license, he/she may, within thirty days after payment of his/her license fee or tax, apply for a hearing before the city manager, or a hearing officer designated by the city manager to hear such appeals ("designee"). Such hearing shall be held within fifteen days from the date of filing the application for hearing, unless continued at the request of applicant. Notice of the date and place of hearing shall be given the applicant, and he/she shall be entitled to appear in person or by counsel and present evidence. The city manager or designee shall hear and consider evidence and shall decide the issue based upon the evidence presented. A decision must be rendered, in writing, by the city manager or designee within five working days from the date of hearing, and a copy of such decision furnished to applicant.

(Ord. 95-9 § 2(part)).

Any person who has followed the procedure set forth in Section 5.04.120 regarding administrative hearings and is dissatisfied with the decision of the city manager or designee, may, within fifteen days thereafter, appeal to the city council of the city by filing a notice of appeal with the city clerk. The city clerk shall thereupon fix a time and place for hearing such appeal. The city clerk shall give notice to such person of the time and place of hearing, and he/she shall have the opportunity to appear thereat in person or by counsel and present evidence. The council shall hear and consider evidence and shall decide the issue based upon the evidence presented. The council shall have authority to determine all questions raised on such appeal and its decision shall be final.

(Ord. 95-9 § 2(part)).

Upon filing the application together with such other information as the director of finance deems necessary, and upon payment of the prescribed license fee or tax, the director of finance shall issue a business license to the person applying for the same. The license shall be in the form prescribed by the director of finance and must contain the licensee's name, the business name, type of business, location of business and commencement date of the license.

(Ord. 95-9 § 2(part)).

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 to the director of finance and paying to the city a fee in an amount to be determined from time to time by resolution of the city council, have the license amended to authorize the transacting and carrying on such business under said license at an alternate location authorized by the city code.

(Ord. 95-9 § 2(part)).

Upon the licensee filing a statement of such fact to the director of finance and paying to the city the fee required by Section 5.04.150, a duplicate license may be issued by the director of finance to replace any license previously issued hereunder which has been lost or destroyed.

(Ord. 95-9 § 2(part)).

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 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 in the city at any location other than a fixed place of business in the city shall keep the license upon his person at all times while transacting and carrying on such business.

(Ord. 95-9 § 2(part)).

Unless otherwise specifically provided herein, all annual license taxes under the provisions of this chapter shall be due and payable on July 1st of each year and are delinquent after August 1st; provided, that license taxes covering new operations commenced after the first day of February may be prorated for the balance of the license period.

Except as otherwise herein provided, license taxes, other than annual, required hereunder shall be due and payable as follows:

A. Quarterly license taxes, based upon gross receipts, shall be delinquent on the first day of May, August, November and February of each year.

B. Daily flat rate license taxes shall be due on each day and delinquent on the day after the business taxes are due.

(Ord. 95-9 § 2(part)).

A. Amount of Penalty. For each month that an annual license tax or quarterly license tax is delinquent and for every day that a daily license tax is delinquent, the director of finance shall add a penalty of one and one-half percent per month of the license tax due; provided, that no penalties shall be added after the cumulative total of license tax and penalties shall equal twice the amount of the license tax.

B. License to be Void-Payment of Penalties. The current business license shall become void six months after becoming delinquent and no business license shall be issued by the director of finance until the business license tax so delinquent, and the penalties added thereto, shall have been paid in full.

(Ord. 95-9 § 2(part)).

Except as is otherwise provided in Section 5.04.210, every person who engaged in business within the city, including persons licensed or permitted under Chapters 5.12 (Card Tables), 5.16 (Exhibitions and Amusement Devices), 5.20 (Mechanical Amusement) and 5.24 (Pool Halls and Billiard Parlors), shall pay a license tax based upon the gross receipts of such business during the preceding quarterly or fiscal year at rates adopted, from time to time, by resolution of the city council.

(Ord. 95-9 § 2(part)).

Every person transacting and carrying on the businesses herein enumerated shall pay a license tax at rates adopted, from time to time, by resolution of the city council:

A. Engaging in the business of an auctioneer as defined in Business and Professions Code Section 5701;

B. Engaging in the business of a peddler as set forth in Chapter 5.28 of the Willits Municipal Code;

C. Engaging in the business of handbill distributor;

D. Engaged in the business of playing bingo as set forth in Chapter 5.08 of the Willits Municipal Code;

E. Engaged in the business of a solicitor as set forth in Chapter 5.32 of the Willits Municipal Code;

F. Engaged in the business of selling Christmas trees.

(Ord. 95-9 § 2(part)).

Every person not having a fixed place of business within the city who engages in the business of a contractor shall pay a license tax under Section 5.04.200 measured by gross receipts from business done within the city.

(Ord. 95-9 § 2(part)).

Every person not having a fixed place of business within the city who engages in business within the city limits and is not subject to the provisions of Section 5.04.200 or 5.04.220 of this chapter shall pay a license tax under Section 5.04.210.

(Ord. 95-9 § 2(part)).

The following businesses specified in this section shall, to the extent mentioned herein, be excluded from the operation of this chapter, and the terms hereof shall not be deemed or construed to require the payment of a license tax for such businesses:

A. Banks, to the extent that the city may not levy a license tax upon them under the provisions of Article XIII, Section 27 of the Constitution of the state of California;

B. Insurers, including insurance companies or associations and reciprocal or interinsurance exchanges together with their corporate or other attorneys in fact considered as a single unit, the insurance agents on that portion of their income derived from insurance premiums paid by their customers;

C. The business of a commercial traveler not having a fixed place of business in the city whose business is limited to goods, wares and merchandise sold or dealt in at wholesale in this state;

D. Express corporations, freight forwarders, motor transportation brokers, and highway freight haulers under the jurisdiction of the Public Utilities Commission as provided in Public Utilities Code Section 4301 et seq.;

E. Airlines and all-cargo carriers, except as to revenues derived exclusively from intrastate operations;

F. Any person whom the city is not authorized to license under the terms of any law or Constitution of the United States or of the state of California;

G. Any person that the city has contracted with to perform regular ongoing services for the city on an independent contractor basis;

H. Any person that rents five or less occupied dwellings.

The director of finance may require the filing of a verified statement from any person claiming to be excluded under the provisions of this section, which statement shall set forth all facts upon which the claim for exclusion is made. The director of finance may allow or disallow the claim or exclusion, and if disallowed the claimant shall forthwith make application for a business license, and shall obtain the necessary license prior to engaging in business.

The provisions of Section 5.04.120 and Section 5.04.130 regarding administrative hearings and appeal procedure for licensees and applicants is made applicable to claimants for exclusions.

(Ord. 95-9 § 2(part)).

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 the following businesses or occupations:

A. Charitable Institutions. From any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes, or from which profit is not derived either directly or indirectly by any person; nor shall any license be required for the conduction of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects, whenever the receipts of any such program are appropriated to any church, school, religious or benevolent purpose within the city; nor shall any license be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association whenever the receipts of any such program are to be appropriated for the purposes and objects for which such association or organization was formed;

B. Interstate, Foreign and Indian Commerce. In any case where the payment of a license tax would cast an undue burden upon the right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States respecting interstate, foreign or Indian, commerce. In any case where a license tax is believed by a licensee or applicant to place an undue burden upon such commerce, he may apply to the director of finance for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application must be made within six months after payment of the prescribed license tax. The applicant

shall, by affidavit and supporting testimony, show his/her method of business and such other information as the director of finance shall require in order to determine the extent of the burden made upon interstate commerce by such tax. If the director of finance finds that the prescribed license tax imposes an undue burden upon interstate, foreign or Indian, commerce, then he is authorized and directed to adjust the license tax so as to assure that the license tax assessed shall be uniform with that assessed on businesses of a like nature so long as such amount does not exceed the amount prescribed by this chapter. If the license tax has already been paid the director of finance shall order a refund of the amount paid in excess of the adjusted amount;

C. Farmers. The actual grower and producer of ranch, farm, orchard, vineyard or poultry produce or products and of the sale or delivery of such produce or products actually grown or produced by him;

D. Blind. Any business conducted, carried on or managed solely by a totally blind person, the profits of which business are intended for and go entirely to such blind person.

The director of finance may allow or disallow the claim for exemption, and if disallowed, the claimant shall forthwith make application for a business license, and shall obtain the necessary license prior to engaging in business. The provisions of Sections 5.04.120 and 5.04.130 regarding administrative hearings and appeal procedure for licensees and applicants is made applicable to claimants for exemptions.

(Ord. 95-9 § 2(part)).

Whenever the director of finance shall have determined that any person is exempt from the payment of the license taxes herein prescribed because of the operation of an exempt business, he shall, upon application for the same, issue a business license free of any charge to such person, which said license shall be the same form and shall continue for the same duration as if the business required payment of a license tax, except that the words "FREE LICENSE" shall be clearly affixed thereto together with a statement of a reason therefor. It shall be the duty of every person claiming an exemption from payment of the license taxes prescribed by this chapter, to make application for and obtain the appropriate license prior to commencing, engaging in or continuing business as provided in this chapter. Free licenses shall be subject to the same rules regarding nontransferability, posting and keeping as other licenses. Violation of this section shall be punishable as provided in Section 5.04.320 of this chapter.

(Ord. 95-9 § 2(part)).

It shall be the duty of the director of finance, and he is directed to enforce each and all of the provisions of this chapter. The chief of police is directed to render such assistance in the enforcement hereof as may from time to time be required by the director of finance. Every member of the police department is appointed an assistant license inspector and directed to assist the director of finance in the enforcement of this chapter.

(Ord. 95-9 § 2(part)).

It shall be the duty of the director of finance, acting through his deputies and assistants, to examine each business to determine that this chapter is being complied with. He and any of his deputies and assistants, including police officers, may enter any business free of charge and demand exhibition of the business license. Refusal of any person to so exhibit such license shall be a misdemeanor.

(Ord. 95-9 § 2(part)).

The amount of any license tax and penalty imposed by the provisions of this chapter shall be deemed a debt to the city. An action may be commenced in the name of said city in any court of competent jurisdiction, for the amount of any delinquent license tax and penalties.

(Ord. 95-9 § 2(part)).

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

(Ord. 95-9 § 2(part)).

Any license issued under the provisions of this chapter may be revoked by the director of finance upon the failure of the licensee to pay the charges imposed by this chapter or to file statements as required by this chapter within six months after such charges or statements become delinquent, or for any material misstatement made by applicant in applying for the license.

(Ord. 95-9 § 2(part)).

Any person violating any of the provisions of this chapter or knowingly or intentionally misrepresenting to any officer or employee of this city any material fact in procuring, or attempting to procure, the license herein provided for shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than one thousand dollars or by imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment.

(Ord. 95-9 § 2(part)).

If any section, subsection, paragraph, clause or phrase of this chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this chapter. The city council of the city declares that it would have passed the remaining portions of this chapter, if any.

(Ord. 95-9 § 2(part)).

This chapter may be amended or repealed by the city council without a vote of the people except that, as required by Article XIIIC of the California Constitution, any amendment that increases the amount or rate of tax beyond the levels authorized under Sections 5.04.220 and 5.04.230 under this chapter may not take effect unless approved by a vote of the people.

(Ord. No. 18-04 § 2, 11-6-18)