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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)
The payment of a tax required by the provisions of this chapter and its acceptance by the city, and the issuance of a certificate to any person, shall not entitle the holder thereof to carry on any business unless he has complied with all other applicable laws of the city, or to carry on any business in any building or on any premises designated in the certificate in the event that such building or premises are situated in a zone or locality in which the conduct of such business is in violation of this code. The payment of such tax and its acceptance by the city shall in no way relieve the taxpayer from complying with the applicable laws of the city, nor shall it be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner, nor as requiring the payment of a license tax for the doing of any act which would constitute an unlawful burden upon or an unlawful interference with interstate or foreign commerce, or which would be in violation of the Constitution of the United States or of the state of California. (Prior code § 23.01.105)
All business operations tax certificates shall be prepared and issued by the administrator upon payment of the sum required by the provisions of this chapter to be paid therefor. Each certificate so issued shall contain the following:
A. The name of the person to whom it is issued and the name under which the business is to be operated;
B. The type of business taxed and the business classification number;
C. The address of the location from which the business is conducted, or where no fixed place of business is maintained, the mailing address of the person to whom the certificate has been issued. A post office box shall not be sufficient address for this purpose. The mailing address so appearing shall be the address to which all notices required or authorized in this chapter shall be sent unless the business obtaining the certificate shall request in writing that another address be used for such purpose;
D. A receipt for the amount of tax paid;
E. The date of expiration of the certificate. (Prior code § 23.02.201)
A certificate shall be valid only after the administrator's stamp or endorsement has been affixed thereto indicating payment has been received of the amount of the tax and penalties thereon, if any. A certificate, however, which has been paid for by a check or bank draft which was subsequently dishonored by the bank upon which it was drawn shall not be a valid certificate even though the administrator's stamp or endorsement appears thereon, and the person operating the business for which the certificate was issued shall be deemed to be operating without a valid certificate and shall be subject to the penalties provided in this chapter for so operating. (Prior code § 23.02.202)
A separate certificate must be obtained for each branch establishment or separate place of business in which the trade, calling, profession or occupation is carried on, and each certificate shall authorize the person obtaining it to carry on, pursue or conduct only that trade, calling, profession or occupation described in such certificate and only at the location or place of business indicated thereon. Where more than one kind of classification of business is conducted at any one location, the classification for such business shall be determined in accordance with Section 3.08.130 of this chapter. Any interpretation hereunder shall be made by the administrator.
Notwithstanding the above provisions, however, where the business engaged in within the city is from one or more locations outside the city, only one certificate for each classification of business need be obtained by the person so engaging in that business in the city from all such outside locations; and warehouses and distributing plants located in the city and used in connection with and incidental to a business which holds a certificate at a location in the city shall not be deemed to be branch establishments or separate locations, provided all receipts from any sales made at such warehouse or distributing plants are included in the gross receipts reported by the business which holds a certificate at a location in the city, if such business holds a certificate under the gross receipts classification. (Prior code § 23.02.203)
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