741.26 CONTRACTORS.

   (a)    Contractor. Persons or other legal entities who furnish work, or both materials and work, in the fulfillment of a contract or agreement for the construction, alteration, repair, decoration or improvement of a new or existing building or structure, or any part thereof, or for the alteration, improvement or development of real property.  Those taxpayers classified within Article 749, shall be included within this article and section.

   (b)    No person or other legal entity may engage in business in the capacity of a contractor within the City without first obtaining a license from the City Recorder, nor shall a person or other legal entity continue to engage in such activity after his or its license has expired, been suspended or revoked.

   (c)    The recorder shall collect an annual fee for licenses issued under this article and section as follows: The license fee for a contractor shall be seventy-five dollars and fifty cents per year (includes fifty cent recording fee).

   (d)    It shall be the responsibility of every general contractor or other employer of contractors to hire only such contractors as are licensed under this article and section.

   (e)    (1)   Every person or other legal entity engaging or continuing, within the city, in the business of contracting, who is a non-resident of the state, shall pay or guarantee the payment of the amount of the business and occupation tax imposed under the provisions of Section 749.31(e), for the privilege of engaging in the business of contracting within the City, based on the amount of each building permit issued by the building inspector for work to be performed by the person or other legal entity. 

      (2)   The business and occupation tax payment to be made by the person or other legal entity shall be made to the City Recorder at the time a building permit is issued by the building inspector. Such person or other legal entity may, in lieu of payment in cash of such business and occupation tax obligation, guarantee the payment of the business and occupation tax by delivering to the city, through the recorder, a bond with good and sufficient surety, providing for the payment of such business and occupation tax on or before the earlier of the following two dates: (1) The date of completion of the work to be performed by such person or legal entity; or (2) the date the next ensuing quarterly business and occupation tax payment is due.
(8-13-90.)