(A) 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 any business, occupation, event, or activity from any institution or organization which is conducted, managed or carried on for the benefit of religious, charitable, philanthropic or educational purposes; provided that. This requirement shall be met by a current ruling letter showing that the entity exempt from federal tax under IRC Section 501(c)(3) and California Revenue & Taxation Code Section 23701(d) and convincing evidence to the satisfaction of the Finance Director that the activity conducted is for such exempt purposes rather than for the generation of unrelated business income.
(B) This section shall not be deemed to exempt any such institution or organization from complying with all other provisions of this chapter or this code. In other words, the exempt organization only is exempt from the tax, not from the regulation.
(C) The exemption in this section shall not be deemed applicable with regard to any commercial type revenue-producing rental activity or other merchandising or business activities directly or indirectly operated on a regular basis by or on behalf of a religious or charitable institution or organization.
(D) When activities otherwise exempt under the basic rule stated in division (A) are conducted for and on behalf of an exempt institution or organization, by a profit-making contractor or concessionaire, or the like, then the exemption shall be applicable only with regard to the religious or charitable organization, and shall not be applicable with regard to the activities, operations or revenues received by the contractor or concessionaire or the like.
(E) No license tax shall be required for the conducting of any temporary entertainment, concert, exhibition, or lecture by any religious, charitable, civic, fraternal, educational, military, state, county or local governmental organization or association, whenever the receipts there from are to be appropriated for the purposes and objects for which such organization or association was formed, and from which profit is not derived by any other persons except those in the business of producing, staging, or otherwise participating in such events, and, provided, that this exemption shall not apply to such or any other persons or entities conducting business and deriving profit, incidentally to producing the receipts as stated.
(Ord. 1374, passed 6-2-04)