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(A) None of the license taxes provided for in this chapter shall so be applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitution of the United States and the state.
(B) In the event a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he or she may apply to the Collector for an adjustment of the tax. The application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show his or her method of business, the gross volume or estimated gross volume of business and such other information as the Collector may deem necessary in order to determine the extent, if any, of such undue burden or violation. The Collector shall then conduct an investigation and, after having first obtained the written approval of the City Attorney, shall fix as the license tax for the applicant an amount which is reasonable and nondiscriminatory, or if the tax has already been paid, shall order a refund of the amount over and above the license tag so fixed. In fixing the license tax to be charged, the Collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will assure that the license tax fixed shall be uniform with that fixed on the businesses of like nature; provided, however, the amount fixed shall not exceed the license tax provided in this chapter for the applicant’s business. Should the Collector determine the gross receipts measure of license tax to be the proper basis, he or she may require the applicant to submit, either at the time of the termination of the applicant’s business in the city or at the end of each three month period, a sworn statement of his or her gross receipts, and the applicant shall pay the amount of license tax therefor; provided, no additional license tax during any one calendar year shall be required after the license has paid an amount equal to the annual license tax as provided in this chapter.
(`78 Code, § 5.02.200.)
(A) Whenever a person is engaged in or operating a business subject to a tax measured by his or her gross receipts, only those gross receipts which are directly attributable to the business operated and engaged in within the city shall be included within the measure of the tax. When, by reason of the provisions of the Constitution of the United States or the State Constitution, the measure of tax based on the gross receipts cannot be enforced without there being an apportionment thereof according to the amount of business conducted by the person within the city or in the state, as the case may be, the Collector may make such rules and regulations for the apportionment of the gross receipts and fixing the tax thereon as are necessary or desirable to overcome the constitutional objections. The rules and regulations shall avoid taxation of significant extraterritorial values and provide a measure of taxation fairly apportioned to the quantum of business actually done it the city.
(B) In establishing the rules and regulations, the Collector shall consider the following principles enunciated by the California Supreme Court:
(1) Unapportioned gross receipts may not be taxed if the receipts are derived from wholesale sale of goods delivered from a point within the city to retail sellers outside the city;
(2) Any business which involves the manufacturing and selling, handling and selling, assembly and selling, storage, handling and selling or processing and selling may be taxed upon the unapportioned total gross receipts from the sale of such manufactured, assembled, handled, stored and handled and processed goods, wherever the sales are made as to those goods wholly manufactured, handled, stored and handled, assembled or processed in the city;
(3) Unapportioned gross receipts may not be taxed if the receipts are derived from wholesale sale of products manufactured outside of the city and shipped into the city to persons for delivery pursuant to orders for such goods as placed in the city;
(4) Unapportioned gross receipts may not be rated if the receipts are derived from the retail or wholesale outlet outside the city to customers within the city after orders for said goods had been solicited in the city, but the consummation of the sales transactions had been made outside the city;
(5) Unapportioned gross receipts may not be taxed if the receipts are derived from the wholesale sale of goods manufactured outside of the city and delivered to dealers or retail sellers outside of the city pursuant to orders for such a place in the city.
(`78 Code, § 5.02.240.)
(A) The provisions of this chapter shall not apply to any person transacting and carrying on any business exempt by virtue of the United States Constitution or State Constitution or applicable laws of the United States or of the state from the payment of the taxes provided for in this chapter.
(B) Any person claiming an exemption pursuant to the provisions of this section shall file a sworn statement with the Collector stating the facts upon which an exemption is claimed. The Collector, upon a proper showing contained in the sworn statement, shall issue a license to such person claiming such exemption without payment to the city of the license tax required by the provisions of this chapter. In the absence of such statement substantiating the claim the person shall be liable for the payment of the taxes imposed by the provisions of this chapter.
(C) The Collector, after giving written notice and a reasonable opportunity for a hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon receipt of credible and competent information that the licensee is not entitled to the claimed exemption.
(`78 Code, § 5.02.250.)
The provisions of this chapter shall not require the payment of a license tax by any person conducting, managing or carrying on any business, occupation or activity wholly for the benefit of charitable or nonprofit purposes and from which the net gain, monetary or otherwise, is used solely for charitable or nonprofit purposes.
(`78 Code, § 5.02.260.)
The provisions of this chapter shall not require the payment of a license tax by any person carrying on a business from which the annual gross receipts or receipts are as follows:
(A) The annual gross receipts from such business are less than $5,000; effective January 5, 2010;
(B) As to the lessor or hirer of real property for residential purposes, rental receipts regardless of the amount from four or less residential units; and
(C) As to the lessor or hirer of real property for commercial purposes, rental receipts regardless of amount from one commercial unit.
(`78 Code, § 5.02.270.) (Ord. 3018 §2, 2009.)
The provisions of this chapter shall not require the payment of a license tax by any person carrying on any cable television business, occupation or activity or as a public utility by furnishing gas and/or electric service and which person pays the city a tax pursuant to a franchise or similar agreement with the city.
(`78 Code, § 5.02.280.)
The provisions of this chapter shall not require the payment of a license tax by farmers or ranchers to carry on any business, occupation or activity selling edible agricultural or horticultural produce, dairy products, livestock, poultry products, fish, fowl or animals actually produced or raised on their farm, ranch or property, except when such sales are made at any established sales stand or business establishment.
(`78 Code, § 5.02.290.)
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