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When any person shall by use of signs, circulars, cards, telephone book, newspapers, computer network, or other means, advertise, hold out or represent that he/she is conducting business in the city, or when any person submits a bid or proposal to do work or supply goods or materials in the city, or when any person holds an active license or permit or fictitious business name statement or seller's permit issued by a governmental agency indicating that he/she is conducting business in the city, and such person fails to deny by a sworn statement given to the collector that he/she is not conducting a business in the city, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that such person is conducting a business in the city.
(`64 Code, Sec. 16-6) (Ord. No. 2456, 2838)
(A) The business taxes shall not be so applied as to occasion an undue burden on interstate, intercity or intrastate commerce or bear an unfair relationship to the proportion of the taxed activity taking place within the city or be violative of the equal protection and due process clauses of the Constitution of the United States and the State.
(B) If a certificant or applicant for a business tax certificate believes that the business tax imposed places an undue burden upon interstate, intercity or intrastate commerce or bears an unfair relationship to the proportion of the taxed activity taking place within the city or is violative of such constitutional clauses, such person may apply to the collector for an apportionment of the tax.
(C) Such application may be made before, at the time of, or within six months after payment of the business tax. The applicant or certificant shall, by sworn statement and supporting testimony, show his/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.
(D) The collector shall then conduct an investigation and fix as the business tax for the applicant or certificant, an amount that is reasonable and nondiscriminatory, or if the business tax has already been paid, order a refund of the amount over and above the business tax so fixed. In fixing the business tax to be collected, the collector may base the business tax on a percentage of gross receipts or any other measure that will assure that the business tax assessed is uniform with that assessed on businesses of like nature.
(E) Should the collector determine the gross receipts measure of business tax to be the proper basis, the collector may require the applicant or certificant to submit, either at the time of termination of the business of the city or at the end of each three-month period, a sworn statement of the gross receipts and may require the applicant or certificant to pay the amount of business tax therefor.
(F) The collector shall give the applicant or certificant notice of a determination made pursuant to section 11-7(D) by personal service or by depositing the notice in the United States mail, postage prepaid, addressed to the applicant or certificant at his/her last known address. The applicant or certificant may within 15 days after the mailing or serving of such notice, appeal the collector's decision to the city manager in accordance with section 11-26.
(`64 Code, Sec. 16-7) (Ord. No. 2456, 2838)
(A) Any person claiming an exemption from taxation under this chapter shall file a sworn statement with the collector, stating the facts on which exemption is claimed, as well as documentation requested by the collector to support the requested exemption, such as, but not limited to, evidence of non-profit status, prior year's tax returns, or licensing by the State. If the claim is not substantiated, such person shall be required to obtain the business tax certificate and pay the taxes imposed by the business tax schedule.
(B) The collector shall give the person claiming an exemption from taxation notice of the collector's decision by personal service or by depositing the notice in the United States mail, postage prepaid, addressed to such person at his/her last known address. Such person may, within 15 days after the mailing or serving of such notice, appeal the collector's decision to the city manager in accordance with section 11-26.
(`64 Code, Sec. 16-8) (Ord. No. 2456, 2838)
(A) Nothing in this article shall be deemed or construed to apply to any person, business or activity exempt by virtue of the Constitution, statutes or law of the United States or the State from the requirement to obtain a business tax certificate or pay a business tax or an application, renewal, amendment or duplicate business tax fee.
(B) In addition, the following organizations, activities and persons are exempt from certain provisions of this article, as follows:
(1) Non-profit organizations - An institution or organization that is exempt from the payment of federal income taxes under Subchapter F, commencing with Section 501 of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended from time to time, or that is exempt from the payment of State income taxes under Cal. Rev. and Tax. Code, Chapter 4, commencing with Section 23701, of Part 11 of Division 2, as amended from time to time, shall register such institution or organization with the collector and is exempt from the requirements imposed by this article to obtain a business tax certificate and pay business taxes. However, persons who peddle, solicit or canvass for such institutions or organizations shall comply with applicable requirements imposed by division 3 of this article.
(2) Benefit, charitable and non-profit activities - Any entertainment, dance, concert, exhibition or lecture from which the total receipts are to be donated to a non-profit institution or organization described in subsection (1) of this section, to the State, the county, the city or to any church or school, is exempt from the requirements imposed by this chapter to obtain a business tax certificate and pay business taxes, provided that profit, other than wages paid to employees of such institutions or organizations, is not derived from such activity, either directly or indirectly, by any person. However, persons who peddle, solicit or canvass for such institutions or organizations shall comply with applicable requirements imposed by division 3 of this article. The exemption set out in this subsection shall not apply to persons employed to promote benefit, charitable and non-profit activities.
(3) Persons of limited income -
(a) Any person who receives social security retirement benefits or any other type of retirement benefits and whose income from any business does not exceed the limits established by the laws of the United States and administered by the Social Security Administration that determine whether such person qualifies for full social security retirement benefits, is exempt from the requirements imposed by this article to obtain a business tax certificate and pay business taxes.
(b) However, such a person shall provide the collector with a list of any independent contractors hired by such person, and such persons who peddle, solicit or canvass shall comply with applicable requirements imposed by division 3 of this article.
(4) Persons paying location use fees - Any person who has paid location use fees to the city is exempt from the requirements imposed by this article to obtain a business tax certificate and pay business taxes for the same activity.
(5) Disabled veterans - Any person applying for a business tax certificate pursuant to Cal. Bus. and Prof. Code, Sections 16001 or 16001.5, to distribute circulars or to hawk, peddle and vend any goods, wares or merchandise owned by such person, except spirituous, malt, vinous or other intoxicating liquor, is exempt from the requirement to pay the business tax, business tax application, renewal, amendment and duplicate business tax certificate fees, and the fingerprint report fee, but is subject to the following requirements:
(a) Every applicant must furnish a certificate of physical disability to obtain a livelihood by manual labor, executed by a qualified physician; a certificate of honorable discharge or honorable relief from the military, naval or air service of the United States; and proof of residence in the State.
(b) A business tax certificate when issued is subject to the following conditions:
(i) The business tax certificate is nontransferable and for the exclusive use of the certificant.
(ii) A business tax certificate found in the possession of one other than the certicant shall be surrendered to the collector and canceled, and neither the certificant nor the holder thereof shall thereafter be entitled to hold a business tax certificate under this subsection.
(iii) The certificant must identify himself/herself whenever required to so by a police officer or a tax inspector of the city or the collector.
(iv) Whenever the certificant uses any wagon, cart, tray, basket or other vehicle or receptacle in vending any goods, wares or merchandise, the business tax certificate shall be carried in a tax certificate holder attached to such vehicle or receptacle and in plain view.
(6) Certain independent contractors hired by the city - Any person hired by the city as an independent contractor to provide babysitting services; to perform artistic demonstrations or give other performances; to provide classes in art, dance, crafts, cooking, sports, music, fitness, or dog obedience; to give lectures, readings, gallery talks, or workshops; or to officiate at city-owned locations are exempt from the requirements imposed by this article to pay business taxes for any fiscal year in which the city does not pay such person more than $2,400 for such services; provided, however, that this exemption shall apply only to income received from the city and not to income from any other source.
(7) Persons presenting events at the Performing Arts Theater - Any person who presents an event, program or performance at the Performing Arts Theater of the Performing Arts and Convention Center is exempt from the requirements imposed by this article to obtain a business tax certificate and pay business taxes for an itinerant show based on such program or performance; provided, however, that this exemption shall apply only to such event, program or performance and the income therefrom and not to any other business conducted in the city or income therefrom; and further provided that this exemption does not apply to any business tax certificate or business tax required for the business of promoting such an event, program or performance.
(8) Physicians occasionally providing services at St. John's Regional Medical Center - Physicians, surgeons and doctors of osteopathic medicine who provide services at St. John's Regional Medical Center in the city on no more than 24 days in a calendar year are exempt from the requirements imposed by this chapter to obtain a business tax certificate and pay business taxes. This exemption does not apply to any other services that such physicians, surgeons and doctors of osteopathic medicine may provide within the city.
(C) No person other than the certificant shall use any business tax certificate issued pursuant to this subsection.
(D) No person shall purchase or transfer any business tax certificate issued pursuant to this subsection.
(E) Every applicant who wishes to peddle, solicit or canvass shall comply with applicable requirements imposed by division 3 of this article.
(`64 Code, Sec. 16-9) (Ord. No. 2456, 2603, 2629, 2665, 2838)
(A) On applying for the first business tax certificate under this article or for a newly established business, the applicant shall furnish to the collector a sworn statement, on a form provided by the collector, setting forth the following information:
(1) The exact nature or kind of business for which a business tax certificate is applied;
(2) The street address where such business is to be conducted, and if the business is not to be conducted at a fixed place of business, the street addresses of the residences of the owners of the business;
(3) If the application is for a business tax certificate to be issued to a person doing business under a fictitious name, the names and street addresses of the residences of the owners of the business;
(4) If the application is for a business tax certificate to be issued to a corporation or a partnership, the names and street addresses of the officers or partners thereof;
(5) If the amount of the business tax is measured by gross receipts, the information required by the application and any additional information required by the collector to determine the amount of the business tax;
(6) Federal and State employer identification numbers, social security numbers, State resale numbers, driver's license numbers, telephone numbers and State contractor's license number, class and expiration date; and
(7) Any further information the collector may require to identify the applicant or the business or to determine the type of business tax certificate to be issued or the amount of business tax to be imposed.
(B) The applicant shall pay the business tax application fee at the time of submitting the completed application.
(C) If the amount of the business tax to be paid by the applicant is measured by gross receipts, the applicant shall estimate the gross receipts for a period of one full calendar year. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of business tax. However, the amount of such business tax is only provisional.
(D) At the end of the business tax period, the collector may request the certificant to verify gross receipts or cost of operations. Within 30 days of the request, the certificant shall report to the collector the gross receipts or cost of operations during the business tax period, and the business tax will be redetermined. If the certificant underpaid the redetermined business tax, the certificant shall immediately pay the amount due. If the certificant overpaid the redetermined business tax, the collector shall refund the overpayment.
(`64 Code, Sec. 16-10) (Ord. No. 2456, 2838)
(A) On payment of the business tax application or renewal fee and/or the prescribed business tax, the collector shall issue such person a business tax certificate containing the following information:
(1) The name of the certificant;
(2) The name of the business for which the business tax certificate was issued;
(3) The place where such business is to be conducted;
(4) The date of expiration of the business tax certificate; and
(5) Any other information necessary for the enforcement of this chapter.
(B) Whenever the business tax is measured by the number of vehicles, devices, machines or other pieces of equipment, or whenever the business tax is measured by the gross receipts from the operation of such items, the collector shall issue only one business tax certificate, provided, the collector may issue for each tax period for which the business tax has been paid one identification sticker, tag, plate, or symbol for each such vehicle, device, machine, or piece of equipment.
(`64 Code, Sec. 16-11) (Ord. No. 2456, 2838)
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