(a) The following businesses are exempt from the tax imposed by this chapter:
(1) Any business exempt from the tax by the laws of the United States or the State of California;
(2) Grocery stores;
(3) Businesses that occupy or use 10,000 square feet or less in the city; and
(4) Transitory businesses.
(b) If a business operator operates a single integrated business that has two or more parts, one or more of which could be exempt from the tax imposed by this chapter if operated as a separate business, the city may, at its discretion, exempt from the tax any part of the business that would be exempt if operated as a separate business, provided the business’s square footage can be reasonably allocated between the parts. If the city determines that the square footage cannot be reasonably allocated between the different parts of the business, then the entire business shall be taxed, unless to do so would violate a law of the United States or the State of California.
(c) A business that contends it is exempt under this section must apply to the tax administrator for an exemption.
(1) The tax administrator may require a business claiming an exemption to submit additional information to support the exemption. The request for additional information must be made in writing and the information must be provided within thirty (30) days.
(2) If the tax administrator determines that the business claiming an exemption is not exempt, the tax administrator may make an initial determination of the amount of tax due under subdivision (a) of Section 2.37.150.
(Ord. 5581 § 1 (part), 2022: Ord. 5607 § 3, 2024)