DIVISION I — BUSINESS LICENSE TAX
Section
5.00.010 Short title; purpose
5.00.020 Definitions
5.00.030 Business classifications
Statutory reference:
For state law as to authority of city to license for revenue and regulation purposes, see Cal. Gov't Code, § 37101
As to authority of city to license in exercise of police power and for purpose of regulation, see Cal. Bus. & Prof. Code, § 16000
As to licensing by cities generally, see Cal. Bus. & Prof. Code, §§ 16000 to 16003
A. This division, as amended, shall be known as the “Business License Tax Code.” It is enacted solely to raise revenue for municipal purposes and is not intended for regulation.
B. Persons required to pay a license tax for transacting and carrying on any business under this division shall not be relieved from the payment of any license or tax required under any other ordinance of the city, and shall remain subject to the regulatory provisions of other ordinances.
('61 Code, § 13.1) (Ord. 402, passed - - )
For the purpose of this division, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BUSINESS. Any business, commercial enterprise, trade, calling, vocation, profession, or any other means of livelihood, whether or not it is carried on for gain or profit, engaged in by any person or company.
CLASSIFICATION. Identification of a person or company with a business classification as provided by this division. CLASSIFICATION is to be determined by the City License Tax Collector or, in the event of appeal by resolution of City Council.
COMPANY. A sole proprietorship, a partnership, company, corporation, or any other group or association of persons, partnerships or corporations.
EMPLOYEE. Any person 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 connection with such business.
EXEMPT. Not subject to the provisions of this division.
EXTRASENSORY AND PALMISTRY. The performance, exhibition, exercise, or practice of astrology, augury, cartomancy, clair-audience, clairvoyance, crystal gazing, fortunetelling, hypnotism, life reading, mediumship, mineralogy, necromancy, palmistry, phrenology or prophecy.
GROSS RECEIPTS. 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 a 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, redemption stamps 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:
1. Cash discounts allowed and taken on sales.
2. Any tax which is measured by the sales price or the gross receipts from the sale or which is a stated sum per unit of such property sold, included in or added to the purchase price and collected from the consumer or purchaser.
3. 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.
4. 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.
5. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded.
6. As to a real estate agency or broker, the sales price of real estate sold for the account of others except that portion which represents a commission or other income to the agency or broker including any portion thereof to be remitted to any salesperson or salespersons. As to a real estate agency or broker, the place of business of which or of whom is located outside the city, the commissions or other income included as gross receipts shall include only commissions or other income derived from the sale of real estate located within the city.
7. As to a retail gasoline dealer, a portion of his or her receipts from the sale of motor vehicle fuel equal to the motor vehicle fuel license tax imposed by and previously paid under the provisions of Cal. Rev. & Tax. Code, Part 2 of Division 2.
8. As to a retail gasoline dealer, the special motor fuel tax imposed by § 4041 of Title 26 of the United States Code if paid by the dealer or collected by him or her from the consumer or purchaser.
9. Credit allowed on property accepted as part of the purchase price and collected from the consumer or purchaser.
10. The difference between the balance owed and paid on a defaulted purchase or finance contract upon repossession by seller and the amount received from resale of the repossessed article by the repossessing seller.
11. Cash value of sales, trades or transactions between departments or units of the same business.
12. Sales for convenience where sales of new goods, wares or merchandise are made by a person engaged in selling such articles to another person engaged in selling like or similar articles:
a. Where the primary purpose of the particular transaction of sale is to accommodate the purchaser rather than to make a sale in the ordinary course of business.
b. Where, in the particular kind of business involved, a similar manner of dealing is frequent or customary in the circumstances under which the particular sale is made.
c. Where goods, wares or merchandise of like or similar kind and of substantially equivalent value to that which was sold is received in consideration.
13. With respect to professionals, gross receipts shall include only such receipts derived from services performed by professionals at locations within the city.
NUMBER OF PERSONS EMPLOYED. The average number of persons employed daily in the applicant's business during the license tax period; and such average number shall be ascertained by using the total number of hours of service performed by all of the applicant's employees subject to the tax during the previous tax period, and dividing the total number of hours of service thus obtained by the number of hours of service constituting a tax period's work of one (1) full-time employee according to the custom or laws governing such employment.
PERSON. Any individual, male or female.
PREMISES. Includes all lands, buildings or structures erected or modified, equipment and appurtenances connected or used therewith, and any personal property affixed to or otherwise used for the purpose of carrying on any business on such premises.
PRODUCT. A tangible commodity or any physical substance produced, processed, stored, distributed or sold.
RENTAL UNIT. The smallest accommodation for which a fee is charged or received.
SALE. This term shall include 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 shall likewise be deemed a sale. 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.
('61 Code, § 13.2) (Ord. 402, passed - - ; Am. Ord. 582, passed - - ; Am. Ord. 651, passed - - ; Am. Ord. 671, passed - - )
A. General business. Every business of retailing, merchandising, wholesaling, manufacturing, processing, distributing, warehousing, or any other business activity involving a product not otherwise specifically provided for herein nor exempt from the provisions of this division; and which business is conducted from any premises within the city.
B. Professional. Every person and company, wherever located, engaged in or carrying on, within the city, any profession requiring satisfactory compliance with written and/or oral examination standards adopted by a branch of the state or federal government and/or requiring a certain amount of tenure with such branch of government. Such professions to include but not be limited to:
Architect
Attorney
Certified public accountant
Chiropodist or podiatrist
Chiropractor
Clinical laboratory technologist
Dental hygienist
Dentist
Embalmer
Engineer (all types)
Land surveyor
Mortician
Nurse (registered)
Optometrist
Osteopathic physician and surgeon
Pharmacist (registered)
Physician and surgeon
Psychiatrist
Psychologist
Veterinarian
X-ray technician
C. Coin-operated machines. Any machines that dispense a product, or provide a service or amusement; resulting from insertion or use of a coin, slug, token, plate, disc, plug, key, check or other device, or money, or things of value (newsracks, money exchange and U.S. postage stamp machines, whether or not coin operated are exempt under this title).
D. Services. Every business of providing, transporting, maintaining, or performing labor for the benefit of another within the city of supplying some general demand for the benefit of another within the city which does not produce a tangible commodity; as well as every business of transporting, maintaining, storing, or repairing tangible commodities within the city whether or not such business is conducted from a premise, vehicle, or mobile location within or outside the city. Services do not include performances, exhibitions and amusements nor do they include professional within the terms of this division. Such services to include but not be limited to:
1. Recreational.
Bowling alleys
Dance halls
Driving ranges
Golf courses (including miniature)
Motion picture theaters (including drive-in)
Pool halls (including billiards and snooker)
Riding stables
Skating rinks
Social clubs
Swimming pools
2. Pick-up and delivery.
Junk and refuse collectors
Retail and wholesale delivery
Taxicabs, buses and U-drive cars
3. Business services.
Answering service
Appraising
Assayer
Auctioneering
Banking
Bookkeeping
Broker—business opportunities
Broker—real estate
Broker—stocks and bonds
Consulting and advising
Credit and collection
Designing and drafting
Detective agency
Employment bureau
Escrow
Insurance adjusting
Interior decoration
Landscaping and gardening
Loan company
Messenger
Parking lot
Property management
Tabulating and machine accounting
Typing and shorthand
4. Personal services.
Ambulance
Barber
Baths
Cosmetologist
Interpreter
Masseur or masseuse
Physical culture
Shoe shining
Tutoring and instruction
5. Repair and maintenance (not building trade).
Auto wash
Drycleaning
Janitorial
Laundry
Product repair and service
Spraying and fumigating
Tree surgery, trimming and removal
Watch repairing
6. Advertising and publicity.
Advertising council—agent
Displays and posters
Handbills
Newspapers, magazines and radio stations
Outdoor advertising
Publicity agent
E. Contracting and building trades. Any person or company, wherever located, which is licensed as a contractor by the state; and who undertakes to or offers to or purports to have the capacity to undertake to or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith within the city, is defined as a contractor and comes under this classification. The term CONTRACTOR includes general engineering contractor, general building contractor, subcontractor and specialty contractor.
1. A
BUILDER-OWNER is a person or company employing subcontractors, specialty contractors, general engineering contractors, or workman under his or her supervision and direction by the hour or day, for the purpose of constructing improvements on real property owned by it within the city. It shall be taxed herein the same as a general building contractor unless its only building activity is constructing on its property a single-family or two-family dwelling unit or addition thereto which will be used in whole or in part for the purpose of its own occupancy for a period of not less than one (1) year.
2. A
BUILDING TRADESMAN, wherever located, is any person engaged within the city, in any trade, art, calling, avocation or occupation of the building trades not licensed as a contractor by the state.
F. Rental of property and accommodation. Includes every person or company engaged in, the business of renting, leasing, providing, exchanging or trading, without loss of ownership, any land, dwelling, building, structure or portion thereof for the purpose of occupancy, sleeping, lodging, boarding, or other use and accommodation. The license tax for the rental of properties is determined by ownership of the property. Agents acting for property owners are responsible for payment of the license tax on rentals, and in addition, are subject to the license tax under business services. Such rental and accommodation to include but not be limited to:
1. Business property (rental).
a. Buildings or portions thereof used for any business, commercial or industrial purposes
b. Land (for any purpose)
2. Residential property (rental).
a. Apartments
b. Auto courts
3. Accommodations.
Boarding house
Hospital
Hotel
Inn
Dwelling or portion thereof
Trailer parks
Lodging house
Motel
Rest home
Rooming house
Sanitarium
G. Performances, exhibitions and amusements. Includes every person or company engaged in the business of conducting, showing, exhibiting, or propounding the appearance, skills, abilities or art of any human or animal or thing, under any circumstances not covered by one (1) of the above classifications. Such performances, exhibition and amusement to include but not be limited to:
Amusement parks
Animal shows and zoos
Athletic contests
Carnival
Circus or menagerie
Concerts
Exhibitions
Extrasensory
Lectures
Moving pictures (taking of)
Palmistry
Parades
Side shows
Traveling show
H. Soliciting or peddling.
1.
SOLICITING means any person who by phone or any other means of communication or in person goes from house to house, or place to place and who, by appointment, invitation, visitation or other means, performs, or seeks to perform, consummates or seeks to consummate any element of any sale or of any order for sale for any goods, wares, merchandise, service, or other things of value for future delivery.
(See § 5.08.080)
2.
PEDDLING means any person traveling by foot, wagon, automobile, vehicle, or any other type of conveyance, from place to place, from house to house or from street to street, carrying, conveying or transporting goods, wares, merchandise, foods or services and exposing the same for sale or making sales or delivering articles to purchasers.
I. Seasonal business. Every business of retailing, wholesaling or merchandising which is applicable to a holiday, season, event or celebration officially recognized by the Council of the city; and which business is conducted from any premises within the city for a period not to exceed sixty (60) days.
('61 Code, § 13.3) (Ord. 402, passed - - ; Am. Ord. 671, passed - - )