A. General. Business operations taxes imposed by this chapter do not apply to a person transacting and carrying on a business exempted by the constitution or statute of the United States or of the state of California from the payment of the tax prescribed.
Any person claiming an exemption under subsections B or C of this section shall file a sworn statement with the administrator stating the facts upon which exemption is claimed. In the absence of such statement substantiating the claim, the person is liable for the payment of the taxes imposed by this chapter.
Upon a proper showing contained in the sworn statement, the administrator shall issue a certificate to a person claiming exemption under subsections B or C of this section without payment to the city of the tax required by this chapter.
The administrator, after giving notice and a reasonable opportunity for hearing to a taxpayer, may revoke a certificate granted under this section upon information that the business is not entitled to the exemption as provided.
B. Charitable and Nonprofit Organizations. Except as otherwise provided in this chapter, the following organizations and activities are exempt from payment of the business operations tax:
1. Business conducted by a charitable, nonprofit or eleemosynary corporation, association or organization if the net proceeds of said business are used exclusively by such corporation, association or organization for a purpose which would qualify as a charitable deduction under Section 17214 of the Revenue and Taxation Code of the State of California if said net proceeds were received as a gift by said organization.
2. The conduct of entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subject, whenever the receipts are for a religious, educational or charitable purpose.
3. The conduct of entertainment, dance, concert, exhibition or lecture by a religious, charitable, fraternal, educational, amateur theatrical group, military, state, county or municipal organization or association, whenever the receipts are for the purpose and objects for which the organization or association is formed, and from which profit is not derived, directly or indirectly, by any individual.
C. Disabled Veterans. A disabled veteran holding an honorable discharge from a branch of the military service of the United States is exempt from the payment of the business operations tax prescribed by this chapter, if such person is physically unable to earn a livelihood by other means.
D. Permit Requirements. The exemption from payment of business operations tax granted by this section does not exempt the person conducting the business from complying with any and all other requirements of this code or city ordinances.
E. Business conducted by participants in trade shows and trade exhibitions at which three or more separate businesses participate as exhibitors. (Prior code § 23.01.103)