Loading...
HomeMy WebLinkAboutNS-1922 - Amending Chapter 21 of the Santa Ana Municipal Code Relating to Business License Tax101 ORDINANCE NO. NS- 1922 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CHAPTEK 21 OF THE SANTA ANA MUNICIPAL CODE RELATING TO BUSINESS LICENSE TAX. THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1: That Chapter 21 of the Santa Ana Municipal Code, is hereby amended to read as follows: ARTICLE I. DEFINITIONS Sec. 21-1. Short title; purpose - Defined. This chapter shall be known as the "Business License Tax Code." It is enacted solely to raise revenue for municipal purposes and is not intended for regulation. Sec. 21-2. Definitions - General. Whenever any words or phrases used in this chapter are not defined herein but are defined elsewhere in this Code, such definitions are incorporated herein and shall apply to such words and phrases used in this chapter unless the content clearly indicates a different intent. Sec. 21-3. Definitions - Specific. As used in this chapter, the following words, terms, or phrases shall have the meaning hereinafter set forth: "Annual ization" shall mean an estimation, extended for a twelve (12) month period, based on reported gross receipts for a prior period of less than twelve (12) months. 102 "Applicant" shall mean any person who applies for a license or a license renewal under the provisions of this chapter. "Automobile Dismantler" shall mean any person wh~ has an established place of business and is engaged in the business of buying, selling, or dealing in vehicles of a type required to be registered pursuant to Section 220 of the California Vehicle Code, as the same now exists or as hereafter amended, for the purpose of dismantling the same, who buys or sells the integral parts and component materials thereof, in whole or in part, or deals in used motor vehicle parts. This section does not apply to the occasional and incidental dismantling of vehicles by dealers who have secured dealers' plates from the California Department of Motor Vehicles and whose principle business is buying and selling new and used vehicles, or by owners who desire to dismantle not more than three personal vehicles within any twelve (12) month period. "Builder-Owner" shall mean any person employing subcontractors, specialty contractors, general engineering contractors, or workers under his or her supervision and direction by the hour or day, for the purpose of constructing improvements on real property owned by him or her within the city; such person shall be taxed herein the same as a contractor unless his or her only building activity is constructing on his or her property a single family dwelling unit or addition thereto which will be used in whole or in part for the purpose of his or her own occupancy for a period of not less than one year. Proof of the sale or offering for sale of any such structure by the builder-owner within one year after completion of same is presumptive evidence that such structure was undertaken for purpose of sale. Provided, however, that any person holding a state contractor's license pursuant to Sections 7056, 7057, and 7058 et seq. of the California Business and Professions Code, as the same now exists or as hereafter amended, shall be considered a contractor. "Building And Loan" shall mean any person who for a fee engages in the loan of money upon personal security, evidences of debt, automobile, or any personal property, or purchases automobile contracts, commercial paper, evidences of debt, assignments of salary, salary warranty, salary demands, time checks, or other evidences of salary due or to become due, or automobile paper. The term building and loan as used in this chapter includes savings and loans, but does not include pawnbrokers or the holder of a bond brokers license, or any person conducting a banking business under the laws of the state or any person subject to the state corporate income tax as a financial corporation. "Building-Tradesman" shall mean any person engaged within the city, as an independent contractor in any trade, art, calling, avocation or occupation of the building trades and not licensed as a contractor by the state. 103 "Business" shall include all activities engaged in or caused to be engaged in within the' city, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, including lease or rental of residential or nonresidential real estate, and every other kind of activity whether or not carried on for gain or profit, and whether or not engaged in as a principal or as an independent contractor, but shall not include the services rendered by an employee to his employer. "Business License Receipt" shall mean the receipt required to be posted or displayed as evidence of a business' payment of the tax required by the provisions of this chapter and shall herein be referred to as "license receipt" or "license" except as otherwise specified. "Business License Tax" shall mean the privilege tax paid as required by the provisions of this chapter and shall herein be referred to as "business or license tax" or "fee" except as otherwise spec if ied. "Charge" shall mean any fee fixed herein which is intended solely to cover the reasonable administrative cost incurred in performing any specified act on behalf of any person or at any person's request for which said person shall be liable except as otherwlse spec if led hereinafter. "Coin-Operated Machine Or Device" shall mean any machine or device that dispenses a product, or provides a service, or utility or amusement; resulting from insertion or use of a coin, slug, token, plate, disc, plug, key, check or other device, or money, or thing of value. "Collector" shall mean the finance director or other city officer charged with the administration of this chapter. "Commission Agent, Broker or Merchant" shall mean any person engaged in the business of buying and selling of goods, wares, or merchandise for the owner or consignee thereof for a fee or commission, whether or not the operation of such business customarily includes the actual possession, custody or control of goods, wares or merchandise to the extent that such person (1) does not engage in the business of manufacturing, refining, fabricating, milling, treating or other processing of the goods, wares or merchandise bought and sold, and does not cause said goods, wares or merchandise to be manufactured, refined, fabricated, milled, treated or otherwise processed; (2) does not obtain or retain title to said goods, wares or merchandise except during one or more of the following situations: while such goods, wares or merchandise are actually in transit, or for short periods of time before transportation commences or after it ceases; and (3) does not store or warehouse such goods, wares or merchandise except during one or more of the following situations: while such goods, wares or merchandise are actually - 3 - in transit, or for short periods of time before transportation commences or after it ceases. "Contractor" shall mean any person who is licensed as a contractor by the State of California and who undertakes to or offers to undertake to or purports to have the capacity to undertake to or submits a bid to, or does himself or by others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith. The term contractor as used in this chapter includes, general engineering contractor, general building contractor, specialty contractor and subcontractor except as otherwise specified herein. "Cost Of Doing Business" shall mean that amount which is equivalent to the volume of business performed, where the business of any local office, facility, agent, broker, or employee is that of performing administrative or management related services in connection with sales or services performed or rendered elsewhere. Said amount shall be computed by determining the total cost of maintaining said local office, facility, agent, broker or employee. Said total cost of maintaining said local office, facility, agent, broker or employee shall include, but is not limited to the wages, salaries, commissions, bonuses, rent, and/or depreciation, telephone, postage, utilities, Janitorial and other expenses allocated for maintenance of said office, facility, agent, broker or employee. "Disabled Veteran" shall mean any honorably discharged member of the Armed Forces of the United States, who is physically unable to obtain his livelihood by means of manual labor and who is a qualified voter of the state. "Employee" shall mean all individuals who are engaged in the operatiom or conduct of any business, and whose consideration for services rendered is in the form of a regular salary or wage. "Engaged In Business" shall mean the transacting and carrying on, managing or operating of a business whether done as owner, or by means of an officer, agent, manager, employee, or lessee. "Fixed Place Of Business" shall mean the premises primarily occupied for the particular purpose of conducting the business thereat, and regularly kept open for that purpose with a competent person in attendance for the purpose of attending to such business, except that an auto-car wash, auto-laundromat, or similar self-service business shall be considered a "fixed place of business" whether or not any one is in attendance and a warehouse shall be considered a "fixed place of business" whether -4 - :105 or not anyone is in attendance, and whether or not the premises is regularly kept open. "Flat Rate" or "Flat Rate Tax" shall mean a fixed amount assessed per business location, or alternatively, a fixed amount or f i~ed scale of amounts whose sum is variable depending on the number or other factor furnishing the basis for determination of the license tax. The term flat rate or flat rate tax as used in this chapter includes any tax based on the number of persons engaged or employed in a business. "General Contractor" shall include any general building contractor or general engineering contractor or any other person who is licensed pursuant to Sections 7056 and or 7057 of the California Business and Professions Code as the same now exists or as hereafter amended. "Gross Receipts" shall include the total amount of the sale price of all sales and the total amount charged or received for the performance of any act or service of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares, or merchandise. The following shall be included in "gross receipts:" Ail receipts, rents, cash, credits, and property of any kind or nature, without any deduction therefrom on account of the cost of property sold, the cost of materials used, labor or service cost, interest paid or payable, or losses or other expenses whatsoever. The following shall be excluded from "gross receipts:" Cash discounts allowed and taken on sales; (a) (b) (c) (d) Credit allowed on property accepted as part of the purchase price and which property may later be sold; Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; Such part of the sale price of property returned by purchasers upon rectssion of the contract of sale as refunded either tn cash or by credit; is (e) Amounts collected for others where the business is acting as an agent, or trustee to the extent that such amounts are paid to those for whom collected, provided the agent, or trustee has furnished the Collector with the names and addresses of the others and the amounts paid to them, other than amounts received as commissions or fees earned, or charges of any character made or - 5 - compensation of any character received for the performance of any service as agent, or trustee; provided that any agent, or trustee dealing in stocks or other similar written instruments evidencing a right to participate in the assets of any business, or dealing in bonds or other evidences of indebtedness, who also deals in such property as a principal, shall include in the gross receipts by which the tax is measured the amount of his or her trading profits resulting therefrom. No deduction from receipts attributable to trading as a principle shall be made unless such deduction is provided for in this section; (f) The difference between the balance owed and paid on a defaulted purchase or finance contract upon repossession by seller and the amount received from resale of the repossessed article by the repossessing seller. (g) Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded; (h) As to alcoholic beverages, that portion of the receipts of a manufacturer, transporter, retailer or wholesale distributor generated or otherwise collected from the manufacture, transport, retail or wholesale of intoxicating liquors within the state pursuant to Article XX, Section 22 of the State Constitution. (i) As to a retail gasoline dealer, a portion of his or her receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and pre- viously paid under the provisions of Part 2 of Division 2 of the State Revenue and Taxation Code, as the same now exists or as hereafter amended; (j) As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code, as the same now exists or as hereafter amended, if paid by the dealer or collected by him or her from the purchaser; (k) Cash value of sales, trades, transfers, or other transactions as made between separate departments, divisions, or units of any single business entity; (1) Sales for convenience where sales of new goods, wares, or merchandise are made by a person engaged in selling such articles to another person engaged in selling like or similar articles: (1) Where the primary purpose of the particular transaction of sale is to accommodate.the purchaser rather than to make a sale in the -6 - (3) ordinary course of business and the price paid is essentially the book value of the article; Where, in the particular kind of business involved, a similar manner of dealing is frequent or customary in the circumstances under which the particular sale is made; and Where goods, wares, or merchandise of like or similar kind and of substantially equivalent value to that which was sold is received in cons iderat ion; As to general contractors and other similar businesses, "gross receipts" shall not include that port ion of the receipts of a general contractor which represents payments to subcontractors, provided that such subcontractors are licensed under this chapter, and provided the general contractor furnishes the Collector upon request with the names and addresses of the subcontractors and the amounts paid to them; As to bail bond brokerages, commission agent brokerages, mortgage brokerages, real estate brokerages, securities brokerages, travel agencies, and other similar businesses employing agents, brokers and/or commissioned employees, "gross receipts" shall include the total gross commissions or other receipts attributable to the local office, agents, brokers and/or employees. As to accountants, architects, attorneys, chiropractors, doctors, dentists, optometrists, podiatrists, psychologists, veterinarians and other professionals, either practicing solely, or in partnership, or as a professional corporation, "gross receipts" shall include the total gross fees or other receipts attributable to services performed or otherwise rendered within the city. As to other persons having a fixed place of business within the city and providing a service or plying an o~cupatton or trade, or involved in similar businesses, "gross recezpts" shall include the total fees, commissions, or other receipts attributable to that local location and/or employees. As to building and loan associations, "gross receipts" shall include: (1) (2) Interest on real estate loans; Loan fees of various kinds such as: Fee for escrow, appraisal drawing papers, and other similar charges; (3) Bonuses received for prepayment of loans; (4) Penalty charges on delinquent loans; - 7 - 108 (5) Tax service fees; (6) Interest on personal loans to depositors and; (7) Receipts over and above the ~covery of principal from the sale of m~rtgages or other evidence of money due from l~ns. As to building and loan associations, excluded from "gross receipts:" (i) (ii) (iii) the follow~g shall be Interest and dividends earned from the placing of surplus funds in ~nds, securities, or federal home laan banks; Payments received on the principal amount of outstanding loans; Sale of capital assets used ~ the conduct of the business; (iv) Payments made to other building and loan associations which represents their share of interest under part tc ipat ion agreements; and (v) Gains or losses on the sale of real estate acquired by foreclosure. As to a business established outside the city but maintaining an office within the city through an agent, broker, or employee, "gross receipts" shall include the total sales or receipts attributable to the local office or facility, agent, broker or employee. In the event separate sales or receipt records are not maintained for said local office or facility, agent, broker or employee, or in the event any retailing, wholesaling, manufacturing, or processing activity conducted thereat, does not generate gross receipts as hereinabove defined, or ~n the event said local office or facility, agent, broker, or employee is engaged in providing administrative or management related services, to include, but not limited to, record keeping, data processing, research and development, advertising, public relations, personnel administration, or legal services, in connection with sales or services performed or rendered elsewhere, the business tax shall be based upon an amount which bears the same proportion to the total gross receipts of the business which cost of maintaining said local office, facility, local agent, broker or employee bears to the total cost of maintaining said business. As to a business established within the city but maintaining a local branch office or establishment through an agent, broker, or employee engaged in providing administrative or management related services within the city, the business tax shall be based -8 on an amount equivalent to the cost of doing business. As to a business established outside the city but transacting and carrying on business within the city, or otherwise performing or rendering services negotiated, or contracted for within the city, whether or not by a pri~.ctpal or through an agent or employee, "gross receipts shall unclude the total fees, commissions, or other receipts attributable to the business activity conducted. "Independent Contractor" shall mean any natural person other than a state licensed contractor, who is engaged to aid in the business of any other person, whether as a professional as defined here inbelow, or whether pursuant to any license, certificate or registration authorized by the California Business and Professions Code, as the same now exists or as hereafter amended, or whether with regard to any other trade, skill or occupation, and who receives renumeration either through commission, or pursuant to any contract of employment which excludes regular wages or salary, or in any other manner other than through regular wages, salary or a direct participation in the profits of the business. "Insurance Agent" shall mean any person, including bailbond agents, directly authorized by and on behalf of an insurer, to transact insurance and to bind the insurer in the execution of insurance policies. "Insurance Broker" shall mean any person, including bailbond brokers, who, for compensation and on behalf of another person, transact insurance other than life with, but not on behalf of, insurer. an "Insurance Solicitor" shall mean a natural person employed aid an insurance agent or insurance broker in transacting insurance other than life. tO "Itinerant Merchant" shall mean any person who engages in a temporary or transient business in the city, selling or offering for sale goods, wares, merchandise, or things or articles of value, with the intention of conducting such business in the city for a period of not more than ninety (90) days in any calendar year, and who, for the purpose of carrying on such business, hires, leases, or occupies any room, doorway, vacant lot, building or structure, for the exhibition or sale of goods, wares or merchandise, or who associates temporarily with any local dealer, trader, merchant or auctioneer, or who conducts such temporary or transient business in connection with or as a part of or in the name of any local dealer, trader, merchant or duct ionee r. "Junk Collector" shall mean any person not having a fixed place of business in the city engaged in the business of buying or selling, either at wholesale or retail, any rags, bottles, papers, cans, metals or other junk. - 9 - "Junk Dealer" shall mean any person having a fixed place of business in the city engaged in the business of buying or selling, either at wholesale or retail, any rags, bottles, papers, cans, metals or other junk. "Junk Salvager" or "Junk Recycler" shall mean any person, at a fixed place of business in the city engaged in the business of carrying on or collecting, buying ?r selling at either retail or whOlesale or otherwise dealing in 0unk and/or rubbish, waste material, refuse and/or any rags, sacks, bottles, papers, cans, metals, rubber, cordage, tires and other like articles, whether the same can be sold or otherwise disposed of for the purpose of being treated, repaired or prepared so as to be used again in some other form. "Junk Yards," "Automobile Wrecking Yards," and "Salvage Yards" shall include any space of two hundred (200) square feet or more of area of any lot used for the storage, sale, keeping or abandonment of inoperable vehicles, junk or waste material, including scrap metal or other scrap materials, or for the dismantling, demolition or abandonment of automobiles, other vehicles, machinery or parts thereof, other than an impound yard. "Licensee" shall mean any person who holds a valid, current business license issued to that person under this chapter. "Life Agent" shall mean any insurance agent authorized, by and on behalf of a life, disability or life and disability insurer, to transact life, disability or life and disability insurance. "Life And Disability Insurance Analyst" shall mean a person who, for a fee or compensation of any kind, paid by or derived from any person or source other than an insurer, advises, purports to advise, or offers advice to any person insured under, named as a beneficiary of, or having an interest in, a life or' disability insurance contract, in any manner concerning that contract or his or her rights in respect thereto. "Manufacture" or "Process" shall embrace all the activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful article of tangible personal property or substance of trade or commerce is produced and shall include the production or fabrication of specially made or custom made articles. "Manufacturer" shall mean any person, who, directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from his or her own materials or ingredients any articles, substances or commodities. 10 - "Owner" As applied to any building or land shall include any part owner, joint owner, tenant in common, tenant in partnership, joint tenant, or tenant by the ent£rety, co-partnerships of the whole or of a part of such building or land, or a person having an interest in community property as a member, or former member, of the community. "Pawnbroker" shall mean any person conducting, managing or carrying on the business of loaning money either for himself or herself or for any other person, upon any personal property, personal security, or purchasing personal property and reselling or agreeing to resell such property to the vendor or other assignee at prices previously agreed upon. Nothing in this section shall be deemed to apply to the loaning of money on personal property or personal security by any bank authorized to do so under the laws of the state or of the United States. "Peddler" shall mean any person who sells and makes ~mmediate delivery or offers for sale and ~mmediate delivery any goods, wares, merchandize, service or thing in possession of the seller, at any place in the city other than at a f/xed place of business but shall not include salespersons or agents for wholesale houses or firms who sell to retail dealers for resale or sell to manufacturers for manufacturing purposes or to bidders for public works or supplies. "Person" shall include all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, or common law trusts, societies, and natural persons transacting and carrying on any business in the city, other than as an employee. "Premises" shall include all lands, buildings, accessory buildings or structures erected or modified, equipment and appurtenances connected or used therewith, and any personal property affixed to or otherwise used for the purpose of transacting and carrying on any business on such premises. "Processor" shall mean any person engaging in the business of converting an article, substance or commodity into marketable form for the purpose of resale by changing its physical form or chemical composition. "Professional" shall mean any person, including any professional corporation, wherever located, engaged in or carrying on, within the city, any profession requiring satisfactory compliance with written and/or oral examination standards adopted by a branch of the state or federal government and/or requiring a certain amount of tenure with such branch of government. Such professions to include but not be limited to: Architect (all types), Attorney, Accountant (all types), Auditor, Audiologist, Chiropractor, Clinical Social Worker, Dentist, Drugless Practitioner, Electrologist, Geologist, Gemologist, Herbalist, Marriage, Family and Child Counselor, Mortician, 11 - Naturopath, Nurse (registered), Oculist, Optician, Optometrist, Osteopath, Physician (all types), Podiatrist, Psychologist, Speech Pathologist, Surveyor, Veterinarian. "Professional Corporation" shall mean any corporation organized under the California General Corporation Law which is engaged in rendering professional services in a single profession, or as otherwise authorized pursuant to Section 13400 et seq. of the California Business and Professions Code, as the same now exists or as hereafter amended, and which in its practice or business designates itself as .a. professional or other corporation as may be required by statue's. "Real Estate Agent" shall mean any person licensed as such by the state and engaged wholly or in part in transacting and carrying on the sale of real estate. "Real Estate Broker" shall mean any person licensed as such by the state and engaged wholly or in part in transacting and carrying on the sale of real estate including soliciting or offering to buy, sell, or lease real property for others; negotiating and collecting loans for borrowers or lenders; dealing in real property sales contracts and promissory notes; receiving advance fees for real estate listings; and dealing in real estate syndicate securities. "Real Estate Developer" shall mean any person conducting, managing, or transacting and carrying on the business of acquiring, subdividing, £mproving, selling, renting and otherwise dealing in and disposing of or developing real property, for commercial, industrial, residential, or nonresidential purposes including, but not limited to, one who constructs .i~.provements upon real property for commercial, industrial, reszdential, or nonresidential purposes with the object of selling, renting or developing it for his or her own use. "Recreational Services" shall mean any person engaged in the business of providing facilities for recreational use. Such services to include but not be limited to: amusement machine arca. des, bowling alleys, driving ranges, golf courses.(including minzature), motion picture theaters (including drive-zn), pool halls (i~cluding billiards and snooker), riding stables, skating rinks, social clubs, sports clubs (including spas, health clubs, and conditioning gyms), swimming pools, and tennis and racket clubs. "Rental Of Nonresidential Real Estate" shall include every person engaged in the business of renting, leasing, providing, exchanminm or trading, without loss of ownership, any land, dwell~g,~building, ~remtses or portion thereof for industrial, commercial, office, warehouse or other entrepreneurial uses or purposes other than dwelling, sleeping or lodging. The license tax for the rental of such properties shall be assessed per property and liability for said tax shall be determined by - 12 - ownership of the property. Agents acting for property owners are responstbl~ for payment of the license tax on the rental of such property, if the owner of said property has not paid the tax when due and payable, and in addition, are subject to the license tax as a separate business. "Rental Of Residential Real Estate" shall include every person engaged in the business of renting, leasing, providing, exchanging or trading, without loss of ownership, any land, dwelling, building, premises or portion thereof for the purpose of occupancy, sleeping, lodging, boarding, or other use and accommodation. The license tax for the rental of such properties shall be assessed per property and liability for said tax shall be determined by ownership of the property. Agents acting for property owners are responsible for payment of the license tax on the rental of such property, if the owner of said property has not paid the tax when due and payable, and in addition, are subject to the license tax as a separate business. "Rental Unit" shall mean the smallest accommodation for which a fee is charged or received. "Retailer" shall mean any person engaging in the business of selling goods, wares, or other merchandise to consumers or end- users thereof. "Revenue Officer" shall mean the duly authorized agent of the Collector charged with assisting the Collector in the exercise of the duties imposed upon him or her hereunder. "Sale" shall include the transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying, or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law. "Sale At Retail" and "Retail Sale" shall mean every sale of tangible personal property (including articles produced, fabricated or imprinted) other than sale to one who (1) purchases for the purpose of re~ale as tangible personal property in the regular course of bus zness, or (2) purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component, or as a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale. 113 13- "Sale At Wholesale" and "Wholesale Sale" shall maan any sale of tangible personal property which is not a "sale at retail." Sales otherwise classified hereinabove as "retail sales~', may, nevertheless be classified as "wholesale sales" umber this section, if the vendor can establish to the satisfaction of the Collector that the sale was made to a government agency, public ut ility, manufacturer, processor or contractor who consumed the articles in the course of his or her own operations and did not offer the articles for resale to the general pubL~ except as an integral part of manufacturing, construction or service. "Services" shall mean the business of providing, maintaining, or performing labor for the benefit of another within the city; of supplying some general demand for the benefit of another within the city which does not produce a tangible commodity; or furnishing of services and all activities in which any person, for any other person performs any personal service and all services in which any real or personal property, stocks or bonds, or other financial instruments, or evidences of debt, or contacts of insurance or any money or credits are exchanged, leased, transferred, or loaned; as well as every business of maintaining, storing, cleaning, improving or repairing tangible commodities within the city whether or not such business is conducted from a premises, vehicle, or mobile location within or outside the city. Services include recreation services but do not include theatrical performances, exhibitions, or temporary amusements nor do they include professional services, or telephone services within the terms of this chapter. "Solicitor" shall mean any person who engages in the business of going from house to house, place to place, on or along the streets, within the city and/or by telephone, soliciting any opinions, preferences, endorsements, or other information, or selling or taking orders for or offering to sell or take orders for goods, wares, or merchandise or other things of value for future delivery, or for services to be performed in the future. "Stock Broker" and "Bond Broker" shall mean any person engaged in the business of buying or selling federal, state, county or municipal stocks or bonds, or stocks or bonds of partnerships or other incorporated entities, or evidences of indebtedness of private persons, partnerships or of incorporated entities, for a fee or commission. "Sworn Statement" shall mean an affidavit sworn to before a person authorized to take oaths, or a declaration, certification, or verified affidavit made under penalty of perjury. "Telephone Services" shall mean any person engaged in the business of providing telephone services as a "telephone company" pursuant to Article XIII, Section 19 of the State Constitution. 14 - ,115 "Transact And Carry On" means to repeat, or intend to repeat, or to continue, and includes: (a) The maintaining, operating, managing, or being in control of, any office, store, warehouse, factory, establishment, location or place: (1) Having one or more telephones listed for any business, activity in any classified telephone directory or in the classified section of any consolidated telephone d irectory. (2) Having in use in connection with any business, one or more counters, desks, chairs, tables, filing cabinets, typewriters, adding or calculating machines, or other articles of office equipment, (3) At, from, or in which, any processing, supervising, administration, research, sales promotion, solicitation, distributing, routing, delivery, dispatching, billing, collection, accounting, record- keeping, or other activity is conducted in connection with any business, (4) In, or at which, one or more persons may, for any valuable consideration intended to result, or that results, in any livelihood, financial profit or commercial gain to any person, receive any instruction, advice, treatment or examination, or any service upon their person, or any repair, refinishing, renewing, cleaning, or other improvement to, or of, any personal property, (5) In which any letter, announcement, advertisement, circular, handbill, newspaper, agreement, contract, instruction, legal instrument, financial statement, statement of account, financial record, or any other instrument or record, is written, printed, reproduced, published, prepared or kept, in connection with any bus ine s s, (6) (7) From which any circular, handbill, newspaper, announcement, statement of account, card or letter is sent, or distributed, in writing, or any contract is made, in person or by telephone, in connection with any business, Upon any exterior side, wall, window, door, roof or other portion, or in the proximity of which, there is maintained any sign, lettering, announcement or advertisement indicating that such office or place is one in, at or from, which any article exists, or any act is performed, in connection with any business; - 15 - iii (b) The repeated or continuous offering, or contracting, orally or in writing, in connection with any business: (1) To sell or rent one or more articles, or one or more rooms, apartments, portions or parcels, real or personal property, or of any (2) To transport any person or personal property, or (c) (3) To perform any service; In connection with any business, the repeated or continuous: (1) Sale or renting of one or more articles or parcels of real or personal property, or (2) The transporting of any person or property, or (3) The performance of any service; (d) The performance, in connection with any business, of any single act, with intent to repeat or continue the performance of such act. "Vehicle" means every device in, upon or by which any person or property is or may be transported or drawn upon a public street or highway, except devices moved by human power or used exclusively upon stationery rails or tracks. "Vending Operations" means any business conducted or carried on by any person engaged in the business of operating coin-operated machines or devices on the prem~es of another or in the business of owning, renting, leasing, lending, or otherwise distributing or supplying coin-operated machines or devices while retaining title thereto. Such machines include, but are not limited to, vending, amusement, service and telephone machines. "Wholesaler" shall mean any person engaging in the business of selling goods, wares, merchandise or other products for the purpose of resale and not to consumers or users thereof. "Utility" and "Public Utility" mean any person furn~hing the public with communication, water, light, heat or power, subject to regulation by the Public Utilities Commas ion of the State of California. - 16 ARTICLE II. IN GENERAL Sec. 21-4. Purpose. The purpose of this chapter is to provide a revenue for the general operation of the city by the levy of a license tax on all business transactions or activities carried on or occurring within the city and is not intended for regulation. Sec. 21-5. License required. There are imposed upon the businesses, trades, profess ions, callings and occupations specified in this chapter license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person, whether as principal or agent, clerk or employee, either for himself or for any other person, or for body corporate, or as an officer of any corporation to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city to do so or without complying with all applicable provisions of th is Code. This section shall not be construed to require any person to obtain a license prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state. Persons not required to obtain a license prior to doing business within the city because of conflict with applicable statutes of the United States or of the state shall be liable for payment of the tax imposed by this chapter but shall not be subject to any penal provisions of this Code for such nonpayment. Said tax shall be collected in a civil action. Sec. 21-6. Violation defined. The engaging in, transacting and carrying on of, any business without first having procured a license from the city to do so, or without complying with any and all provisions of this chapter, constitutes a distinct and separate violation of this chapter for each and every day that such business is so carried on. Sec. 21-7. Branch establishments; more than one type of business. A separate license must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location and in the manner designated in such license; provided that warehouses or distributing plants used in connection with or incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments; provided further that no business --117 - 17 transactions shall be carried on in such incidental or supplemental warehouses or distributing plants. Nothing in this section shall be construed to relieve any person who is eligible for or claims to be eligible for exemption from payment of a branch establishment business license fee from the requirement to obtain a business license. Said person shall apply to the Collector for a license in the same manner, and at the same time as is required in this chapter of all other persons applying for a business license and shall be subject to the same procedures for enforcement and for penalties as provided herein. Sec. 21-8. Two or more allied businesses. Whenever any person is engaged in two or more correlated businesses, or is carrying on two or more allied activities at the same location and under the same ownership and management and the said businesses are on a gross receipts basis for which a uniform rate is prescribed, then in tha~ event the gross receipts shall be reported together and the applzcable uniform rate prescribed will be used for the compilation of the combined annual license fee, to which amount the minimum tax fee and business license processing charge.shall be applied once .only, and for which amount a single comb zned license shall be issued. Provided, however, that nothing contained in this section shall be construed to relieve the payment of two or more business license taxes, when required, where two or more separate businesses are conducted in the same location by the same owner and management and such businesses are not construed by the Collector to be correlated or allied with each other. An appropriate business license tax as set forth in this chapter shall be paid for each business. Sec. 21-9. Combined businesses. Whenever any person is engaged in a combined business conducted at the same location and by the same owner and management carrying on manufacturing and selling at wholesale and also at retail, or selling at wholesale and also at retail but not manufacturing, and where such combined business is not otherw~e specifically licensed on the flat rate basis, then in that event a single combined statement separately showing the amount of manufacturing and wholesale and retail business engaged in respectively shall be filed and the combined tax shall be separately calculated according to the respective rates appropriate for each category of business activity, to which amount the minimum tax fee and business license processing charge shall be applied once only, and for which amount a single combined license shall be issued. In the event that such a combined statement is not filed, or in the event sufficient records have not been kept which.will enable the manufacturing and wholesale portion and the retail portion of 18 - such business to be ascertained, then in that event all business done by any such person, whether manufacturing and wholesale or whether retail, shall for the purposes of this section be considered as retail business and the rate prescribed for retail business sha. ll be applied to calculate the amount of business tax due, to which amount the minimum tax fee and business license processing charge shall be applied once only, and for which amount a single combined license shall be issued. Provided, however, that nothing contained in this section shall be construed to relieve the payment of two or more business license taxes, when required, where two or more separate business activities are conducted in the same location by the same owner under the same management and such business activities are not construed by the Collector to constitute a combined business. An appropriate business license tax as set forth in this chapter shall be paid for each business. Sec. 21-10. Single location; multiple businesses; separate owners. Nothing contained in this chapter shall be construed to relieve the obligation to obtain a separate license and to pay the appropriate license tax required for each business owned or conducted by a separate owner within an individual establishment or location whether under the same management or not. Sec. 21-11. Concessions; separate license required. Any person who operates any business, whether upon a cost, rental or commission basis as a concession or upon rented floor space in or upon the premises of any person licensed under the provisions of this chapter, shall be required to obtain a separate and independent license pursuant to this chapter except as may be otherwise specified hereinafter. Sec. 21-12. Association with local business. Any person who shall associate temporarily with any local business, dealer, trader or merchant, or by conducting any temporary business in connection with, or as a part of or in the name of, any local business, dealer, trader or merchant, shall not be relieved from the provisions of this chapter and shall be required to pay the appropriate business license tax as specified in this chapter. Sec. 21-13. Partnerships. In the event that any business conducted, managed or carried on in the city is organized as a partnership or joint venture, the scheduled license fee need be paid only by the partnership or joint venture and not by any such individual partner or joint venturer. - 19 - Sec. 21-14. Corporations; in general. In the event that any business conducted, managed or carried on in the city is organized as a general law corporation, pursuant to the California General Corporation Law, the scheduled license fee need be paid only by the corporation and not by any such individual shareholder thereof. Sec. 21-15. Professional corporations. In the event that any business conducted, managed or carried on in the city is organized as a professional corporation, the scheduled license fee need be paid only by the corporation and not by any such individual shareholder thereof. Sec. 21-16. Evidence of doing business. When any person shall by use of signs, circulars, cards, telephone books, newspapers, or trade publications, advertise, holdout, or represent that he or she is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he or she is in business within the city, or when any person gives other evidence of transacting and carrying on business as may be defined elsewhere herein and such person fails to deny in a sworn statement given to the Collector that he or she is not "engaged in business" within the city, after being requested to do so by the Collector, then these facts shall be considered prima facie evidence that he or she is conducting a business in the city. Sec. 21-17. Effect of chapter on other ordinances. Persons required to pay a license tax for transacting or carrying on any business under this chapter shall not be relieved from the payment of any tax for the privilege of doing such business required under any other provisions of this Code and shall remain subject to all regulatory provisions. Sec. 21-18. No required permits waived. The business license issued pursuant to the provisions of this chapter constitutes a receipt for the license fee paid and shall have no other legal effect. A business license is a requirement, not a permit, to transact and carry on any business activity within this city. The business license tax receipt is evidence only of the fact that such tax has been paid. Neither the payment of the tax nor the possession of the business tax receipt authorizes, permits or allows the doing of any act which the person paying or holding the same would not otherwise be entitled to do; and any permit, license, variance or other instrument of approval or evidence that any conditions exist as required by any other section of this Code or by any statute or code provisions of the state must first be obtained or complied with before the doing of any act or thing for which it is required. 20 - Sec. 21-19. Severability. If any article, section, subsection, sentence, clause, or phrase of this chapter is for any reason held to be invalid or unconstitutional by the decision or any court of competent jurisdiction, such decision shall not effect the validity of the remaining portions of the chapter. The city council hereby declares that it would have passed this chapter and each article, sect ion, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more of the articles, sections, subsections, sentences, clauses or phrases hereof be declared invalid or unconstitutional. Sec. 21-20. Decisions on amounts imposed. If any license tax imposed by this chapter is for any reason held to be discriminatory or invalid in amount, by the decision of any court of competent jurisdiction, such decision shall not affect the validity of a lesser amount imposed by the Collector. The city council hereby declares that it would have imposed a license tax of some amount on the. business, o. ccupa, tion, cai. ling, trade, vocation or other enterprise in question, lrrespectzve of the fact that any one or more of the license taxes imposed herein may be declared discriminatory or invalid in amount. Sec. 21-21. Saving clause. Neither the adoption of this chapter nor its superseding of any portion of any other chapter shall in any manner be construed to affect prosecution for violation of any chapter or ordinance prior to the effective date hereof, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posed, filed or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect. Sec. 21-22. Unexpired licenses heretofore issued. Where a license for revenue purposes has been issued to any business by the city and the tax paid therefor under the provisions of any business license tax ordinance heretofore enacted and the term of such license has not expired, then the license tax prescribed for such business by this chapter shall not be payable until the expiration of the term of such unexpired license. Sec. 21-23. Unpaid taxes; tax plus penalties. No business license for any succeeding, current or unexpired tax period shall knowingly be issued to any person, who at the time of application, is indebted to the city for any unpaid tax. The total indebtedness shall include the total tax due plus penalties for failure to pay the tax when due. 21 - Sec. 21-24. License tax a debt; civil action. The amount of any business license tax and penalty imposed by the provisions of this chapter shall be deemed a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent license tax, penalties, and administrative costs incurred in connection therewith, including attorneys fees. Sec. 21-25. Penalty; conducting a business without first having procured a license. Any person who shall commence, engage, transact and carry on any trade, calling, profession, occupation or business within the city without first having procured a business license from the city to do so, shall be assessed a penalty of fifty percent (50%) of the amount of the license tax owing, which amount shall be calculated for the period beginning with the calendar month in which the commencement of business activity within the city began, and ending with the expiration of the current annual licensing period. Provided, however, that the start of such period shall not exceed three (3) years prior to the date of notification of violation. Such penalty to be collected, and the amount thereof to be enforced, in the same manner as the other business license taxes are collected and the payment thereof enforced. Sec. 21-26. Penalty for Violation. (a) Any person violating any of the provisions of this chapter shall be deemed guilty of a criminal infraction except where said violation is specifically deemed a misdemeanor. (b) Every violation of the provisions of this chapter determined to be a criminal infraction shall upon conviction thereof be punishable by (1) a fine of one hundred dollars ($100.00) for a first violation; (2) a fine of two hundred dollars ($200.00) for a second violation of the same provision within one year; (3) a fine of two hundred fifty dollars ($250.00) for ~ach additional violation of the same provision within one year. Each day any such violation of any said provision of this chapter shall continue shall constitute a separate offense. (c) Every violation of the provisions of this chapter deemed to be a misdemeanor, upon conviction thereof shall be punishable as provided for in Section 1-8 of this Code. Each day any violation of any said provision of this chapter shall continue shall constitute a separate offense. - 22 - Sec. 21-27. Misrepresentation - Penalty. Any person knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in applying for or paying for the business license herein provided for shall be deemed guilty of a misdemeanor violation of this chapter. Sec. 21-28. Remedies cumulative. The conviction and fine or imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the business tax to conduct such business, nor shall the payment of any business tax prevent a civil action or criminal prosecution for the violation of any of the provisions of this chapter. Ail remedies prescribed hereunder shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. Sec. 21-29. Cancellation; right of licensee to request. The Collector shall cancel a valid unexp/red license issued or granted to the licensee pursuant to this chapter at the request of the licensee provided; (a) The licensee so endorses, signs and surrenders the business license receipt along with any applicable decal, metal-cai, sticker or tag, and (b) Ail business activity pursuant to licensee's license has ceased. Liability for any further business taxes shall cease only if the licensee's account is vacated pursuant to this section. Sec. 21-30. Requirement to obtain and furnish sales tax number; requirement to report gross sales to the state; . requirement to collect sales and use tax; requirement to pay collected sales and use tax; requirement to report same separately to the city. Any person who contracts, sells or delivers any goods, wares or merchandise in the city for which sales or use tax is payable and who is required to report and pay such sales and use tax to the State shall obtain an appropriate California State Board of Equalization permit and furnish the Collector with his sales tax number and shall report separately in his return to the state the amount of receipts from sales in the city and/or the receipts from sales for use in the city and shall pay the required sales or use tax on such receipts. Any such person who fails to do so shall be deemed guilty of a misdemeanor violation of this chapter. 23 - ARTICLE III. COLLECTOR Sec. 21-31. Collector; establishment of position- There is hereby established the position of Collector which shall include any position heretofore referred to in this chapter or any other chapter of this Code as "license collector," "business tax collector," "business fee collector," or any other term used to describe the office of the collector of business license taxes. Provided further that to the extent that any other provision of this Code or any other city ordinance refers to the Director of Finance as the collector of b~siness license taxes, such provisions shall be construed to require the execution of such duties by the Collector. Sec. 21-32. Collector; ex officio collector of business license taxes. The Collector shall be ex officio business license tax collector. Sec. 21-33. Collector; duty to enforce. It shall be the duty of the Collector to enforce each and all of the provisions of this chapter, and the Chief of Police, the Chief Building Official, the Chief Fire Official, and the City Attorney shall render such assistance in the enforcement hereof as may from time to time be required by the Collector. Each department or division of the city which issues permits or entitlements of use shall require the production of a valid unexpired business license receipt or business license exemption receipt prior to the issuance of such a permit. Provided, however, that nothing in this section shall be construed to require any person to obtain a license to do business within the city as a prerequisite for the issuance of a city permit or entitlement of use if such requirement conflicts with any applicable statutes of the United States or of the state. Sec. 21-34. Collector; duty to certify general contractor's statement. Every person acting as a general contractor, whether building for their own occupancy or not, shall file with the Collector a full, true and complete written statement, signed by such person, under penalty of perjury, listing all subcontractors who have performed or shall perform any service whatsoever for such person within the city for which a license is required under the provisions of this chapter. Any builder-owner, general engineering contractor, specialty contractor, or subcontractor, subcontracting any work shall be deemed a general contractor for the purpose of this section. Said statement shall include the name, address, telephone number, state license number and specialty classification of each person required to be licensed. 24- It shall be the duty of the Collector or his or her designated representative to ascertain and certify that all business tax liability of the general contractor and all subcontractors employed by the general contractor has been fully satisfied. Pursuant to Section 8-2 of this Code, no certificate of occupancy shall be issued, or final inspection provided until the Collector or his or her designated agent certifies that there has been complete compliance with the requirements of this chapter. Sec. 21-35. Collector; duty to keep records. The Collector shall keep full, adequate and accurate records pertaining to the issuance of licenses under this chapter and the collection of all fees, penalties and other moneys in connection herewith. The Collector shall keep in his or her office a public ledger in which he or she shall keep the accounts of all licenses currently issued by him or her and remaining in full force and effect. Sec. 21-36. Collector; administration of oaths.. For the purposes of this Chapter, the Collector, as Chief Revenue Officer, and each and every duly authorized Revenue Officer or authorized agent, is authorized to administer oaths. Sec. 21-37. Collector; deposit of fees, charges and penalties. Ail fees, penalties, charges and other moneys received by the Collector pursuant to the provisions of this chapter shall be deposited in the General Fund of the city upon the business day next following the receipt of the same. Sec. 21-38. Collector; printing of blank licenses, applications, reporting forms, notices and other form correspondence. The Collector shall prepare printed blank licenses for all business conducted in the city for the term of twelve (12) months, and for shorter terms- authorized by this chapter to be issued. The Collector shall also prepare all necessary printed applications, reporting forms and notices and other form correspondence. Sec. 21-39. Collector; duty to determine business type or class. The determination of which business or type or class of business a licensee or applicant is engaged in or about to engage in shall be an administrative function of the Collector. - 25 - Sec. 21-40. Collector; classification of businesses into categor les. The Collector is authorized to establish a list of specific businesses that are included within each of the categories set forth in general terms by this chapter. This list shall be reviewed and updated periodically so as to be all-inclusive as possible. The list shall be kept on file in the offices of the Collector and the Clerk of the Council and shall be available for use by the general public. The classification of any business into a general category shall be at the determination of the Collector. Any person aggrieved by the decision of the Collector shall have the right to a hearing pursuant to Section 21-41 and/or the right to an appeal to the city council for a final decision pursuant to Chapter 3 of this Code. Sec. 21-41. Collector; assessment of tax, determination of classification; notification of violation; right to hearing; right to appeal. (a) The Collector shall determine the amount of license tax due and/or the proper classification for a business by means of such information as he or she may be able to obtain i~ the event (1) Any person fails to properly procure the correct business license prior to doing business in the city; or (2) Any person engaged in transacting and carrying on business within the city fails to renew any business license or (3) Any person fails to file any required statement within the time prescribed; or (4) If, after demand therefor has been made by the Collector, he or she fails to file a corrected statement within fifteen (15) days after notification to do so; or (5) It appears to the satisfaction of the Collector that a statement filed does not set forth the facts of the business for which a license is required; or (6) If a licensee or an applicant for a license believes that his or her individual business is not assigned to the proper classification because of circumstances peculiar to it. (b) In the case where such determination is made, the Collector shall give notice of the amount so assessed, or classification found to be appropriate in the following manner: (1) By serving it personally, or causing it to be served personally by a duly authorized agent; or (2) By depositing it in the United States Mail, postage prepaid addressed to the person so assessed at their address of record. - 26 - (c) Such person, may, within ten days after the serving or mailing of.~ such notice, make application in writing to the Collector for a hearing on the amount of the license tax or classification determined for such license. At such hearing the licensee or applicant may appear and offer evidence why such specified tax should not be fixed as the license tax or such classification prescribed. After such hearing, the Collector shall determine the proper tax to be charged or classification prescribed and shall forthwith give written notice to the licensee in the manner prescribed herein of such determination and the amount of such tax. (d) Any person aggrieved by any decision of the Collector with respect to the issuance or refusal to issue a business license or the amount of a license tax may appeal to the city council within ten (10) days pursuant to Chapter 3 of this Code. (e) The amount of any license tax finally determined as provided in this section shall be due and payable as of the date the original license fee was due and payable, together with any penalties and interest that may be due and payable as of the date the original license fee was due and payable, together with any penalties and interest that may be due thereon, provided however, if the amount of such license tax is fixed in accordance with the original statement of the applicant then no penalty or interest shall attach by reason of any delinquency. (f) In the event no appeal is filed within the time prescribed the decision of the Collector shall become final and conclusive on expiration of the time herein fixed for appeal and shall render any subsequent appeal null and void and shall further act as a waiver against future action. Sec. 21-42. Collector; necessary rules and regulations. In addition to all other powers conferred upon him or her the Collector shall have the power to make rules and regulations not inconsistent with the provisions of this chapter as may be necessary or desirable to aid in the enforcement of the provisions of this chapter. Sec. 21-43. Collector; ext~nsipn of time for filing - compromise ~f ciaims. oIn addition to all other powers conferred upon him or her, the 'Collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding thirty (30) days, and in such case to waive any penalty that would have otherwise accrued; and shall have the further power, for good cause shown, to compromise any claim as to the amount of business license tax due. 127 - 27 Sec. 21-44. Collector; additional power. In addition to all other powers conferred upon him or her, the Collector shall have the power, for good cause shown, to waive any penalty imposed, or charge demanded. Sec. 21-45. Collector; authority to suspend and revoke licenses. The Collector shall have the authority and duty to suspend or revoke any license granted or issued under the provisions of this chapter at any time for any of the following: (a) A material false statement contained in the application for a new license or in the application for a renewal license granted or issued under the provisions of this chapter, or in any affidavit or statement required to be filed under the provisions of this chapter, or (b) Upon the determination that the licensee has not paid the tax required to be paid as a condition for the issuance of the license, pursuant to the procedures set forth in Sect ion 21-86. Any person transacting and carrying on any business during any period of license suspension shall be deemed to be doing so under an invalid license. Any person transacting and carrying on business during any period of license revocation shall be deemed to be doing so without a license. Provided further, that any person transacting and carrying on business during any period of license revocation or suspension shall be refused any permits or entitlements of use the issuance of which requires the production of a valid unexpired business license. Sec. 21-46. Collector; authority to issue citations. The Collector, as Chief Revenue Officer, and each and every duly authorized Revenue Officer of the city have the duty to enforce this chapter and are authorized to arrest persons without a warrant whenever they have reasonable cause to believe that the person to be arrested has committed a violation of said provisions in their presence. In any case in which a person is arrested pursuant to this section and the person arrested does not demand to be taken before a magistrate, said officer making the arrest shall prepare a written notice to appear and release the person on his or her promise to appear as prescribed by Chapter 5C Title III of Part 2 of the Penal Code of the State of California (commencing with Section 853.6). - 28 129 ARTICLE IV. EXEMPTIONS Sec. 21-47'. Conflicts with federal or state law. Nothing in this chapter shall be deemed or construed to apply to any person transacting or carrying an any business exempt from business license taxes by virtue of the constitution or applicable statutes of the United States or the state. Sec. 21-48. Business licensing - Specified exemptions. (a) A business license shall not be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects whenever the receipts of any such activity are to be appropriated to any church or school or to any religious or benevolent purpose within the city. (b) A business license shall not be required for any person under eighteen (18) years of age, who is a citizen of the city, and who is enrolled in an institution of secondary education; provided, however, such person has no employee or employees working for him or her. (c) A business license shall not be required for any attorney whose only business done in the city is in the courts operated this city, nor for any doctor whose only business done in the city is surgery and/or consultation in a regularly established hospital in the city. (d) A business license shall not be required for any other licensed person providing professional services not having a fixed place of business within the city and not engaged in other than the occasional furnishing of professional services wholly negotiated and contracted for outside the city. (e) A business license shall not be required for any business done in the city where the business conducted is only occasional and incidental to a regularly established business conducted elsewhere. (f) A business license shall not be required for any commercial traveler whose business is limited to goods, wares, and merchandise sold or dealt in at wholesale in this state, or for any salesmen or agents representing vendors which have, do, or would normally supply goods for resale to licensees of the city. Sec. 21-49. Business licensing - Specified exclusions. Except as may be otherwise specifically provided in this chapter, the terms hereof shall not be deemed to apply or construed to require the payment of a license tax by any of the following persons: - 29 130 (1) Any public utility making franchise ~ayments to the city, except to the extent said public utility engages in retail sales or services ~ithin the city not covered or otherwise authorized ~y such franch ~se. ' (2) Banks, including national banking associations, federal cred it unions, and f inancial corporat ions, to the extent that a city may not le~y a license tax upon them under the provisions of Article XIII, Section 27 of the State Constitution. (3) Insurance companies or associations engaged in the sale and servicing of insurance and their direct agents, including bailbond agents a~ life agents, but not including brokers or bailbo~ brokers or life and disability insurance analysts or insurance solicitors to the extent that a city may not levy a license tax upon them under the prowls ions of Article XIII, Section 28 of the Stat~ Constitution. (4) Any governmental agency or subdivis~n and the employees thereof, to the extent they are engaged in the business of such governmental agencies or subd ivis ions. (5) Motor vehicle carriers, or household goods carriers operating under the jurisdiction of the Public Utilities Commission of the State of California or any public transportation system in the city whose definite permanent points of origin and/or termination lie outside of the legal limits of the city to the extent that a city may not levy a license tax upon them pursuant to Section 4301 et seq. of the State Public Utilities Code. (6) Any state alcoholic beverage licensee engaged in the manufacture, sale, purchase, possession, or transportation of alcoholic beverages within the state to the extent that a city may not levy a license tax upon them under provisions of Article XX, Section 22 of the State Constitution. (7) Any day care facility where not more than siX (6) people are cared for on a full or part-time basis, to the extent that a city may not levy a license tax upon them pursuant to Section 1523 of the State Health and Safety Code. (8) Any residential care facility where not more than six (6) people are cared for on a full or part-time basis, to the extent that a city may not levy a license tax upon them pursuant to Section 1566.2 of the State Health and Safety Code. - 30 - 131 ARTICLE V. FEE-EXEmPT Sec. 21-50. Disabled Veterans. Every person who has been honorably discharged from military service of the United States and who is exempted from the payment of business license taxes by statute of the state may distribute circulars and hawk, peddle, and vend any goods, wares or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor, without payment of this license tax; subject however to the restrictions, limitations, regulations and conditions hereinafter set forth. O) (2) Every applicant must furnish a certificate of physical disability executed by a qualified physician or submit equivalent evidence of disability. Every applicant must submit to being photographed by the city police department. Once copy of said photo shall be permanently affixed to the license issued to said applicant and another copy shall be transmitted to the Collector for attachment to the portion of the license application retained by him. The applicant must also sign both the application and the license at the time of the issuance thereof. (3) A license, when issued, is subject to the following cond it ions: (i) Said license shall not be defaced, mutilated, disfigured or otherwise altered subsequent to its issuance, and failure to comply herewith ~ grounds for revocation of said license and for refusing its renewal or the issuance of a new license thereafter. (ii) It is nontransferable and for the exclusive use of the licensee named. (iii) (iv) Should a license be found in the possession of one other than the licensee named, it shall be surrendered to the Collector and revoked and neither the licensee named nor the holder thereof shall thereafter be entitled to hold a license under the provisions of this section. The licensee named must identify himself by his signature whenever required to do so by any city police officer, or any authorized agent of the Collector. - 31 - t32 (v) (v i) Every license issued under the provisions of this section shall expire on the 31st day of December of the current year; provided however that a license newly issued on or after November 1st of the current year shall expire on the 31st day of December of the next year. It shall be unlawful for any person other than the licensee named to use or have in his possession any license issued pursuant to the provisions of this section. (vii) It shall be unlawful for any person to purchase or transfer any license issued pursuant to the provisions of this section or for any person to transfer or convey the certificates mentioned in this section to any other person for the purpose of securing a license as herein provided. Sec. 21-51. Nonprofit organizations. The provisions of this chapter shall not be construed to require the payment of a license fee to conduct any business, occupation or activity or require the payment of any license fee from any institution or organization which currently has or is eligible for an exemption from the payment of federal income taxes under Section 501 of the Federal Internal Revenue Code as amended from time to time and/or exemption from the payment of state income taxes under Section 23701 et seq. of the California Revenue and Taxation Code as amended from time to time. An institution or organization claiming a license fee exemption under this section has the burden of furnishing to the Cpllector such information as the Collector may require to support the claim of eligibility for exemption. Nothing in this section shall be construed to relieve an institution or organization which is eligible for or claims to be eligible for exemption from payment of a business license fee from the requirement to obtain a business license as provided in Section 21-52 of this Code. Sec. 21-52. Same - Business license required; exceptions. Any person, institution or organization claiming exemption from the payment of a business license fee under Section 21-50 shall, nevertheless, apply to the Collector for a business license in the same manner, and at the same time as is required in this chapter of all other persons applying for a business license and shall be subject to the same procedures for enforcement and to the same penalties as provided herein. - 32 - 133- Sec. 21-53. Minimum gross receipts Gratuitous license charge. The provisions of this chapter shall not be deemed or construed to apply to any person doing business in the city on a continuing but part-time basis whose §ross receipts therefrom do not exceed one thousand and two hundred dollars($1,200.00) per year. Any person claiming e. xemption under this section shall be required, however, to provide information to the Collector or his authorized a§ent of such nature and in such manner, and at such times as is required in this chapter of persons applyin§ for a business license and shall be subject to the same procedures for enforcement and for penalties as are provided herein. Provided, further that an annual charge of ten dollars ($10.00) shall be due and payable for the issuance of a gratuitous license receipt. Sec. 21-54. Hobby - Gratuitous license charge. The provisions of this chapter shall not be deemed or construed to apply to any person engaged in hobby activity in the city. Any person claiming exemption under this section shall be required, however, to provide information to the Collector or his authorized agent of such nature and in such manner, and at such times as is required in this chapter of persons applying for a business license and shall be subject to the same procedures for enforcement and for penalties as are provided herein. Provided further, that an annual charge of ten dollars ($10.00) shall be due and payable for the issuance of a gratuitous license receipt. Sec. 21-55. Fee-exempt licenses - Limitations. (a) Every license issued without payment of the usual fee shall be stamped "Fee-Exempt" upon its face. (b) Any license issued as fee-exempt shall be subject to suspension and revocation by the Collector in the event that it is determined by the Collector that the applicant is not entitled to exemption. Ail such suspensions and revocations shall be made after notice and right to a hearing pursuant to Section 21-41. (c) Any license issued as fee-exempt shall be void and shall afford no defense in any civil or criminal prosecution if any material statement contained in the application, statement of facts or any other document or representation made to the Collector in claiming the exemption is false or fraudulent. (d) No fee-exempt license may be transferred or loaned. (e) Upon uncertainty, for lack of information or otherwise, as to the entitlement of any organization or activity to a fee- exempt license, the Collector may require the filing of a verified report of all funds received and disbursed by any licensee. Upon demand such licensee shall file said report in the form and detail as required by the Collector within fifteen days (15) days after demand. ARTICLE VI. APPORTIONMENT Sec. 21-56. Constitutional Apportionment. None of the business taxes provided for by this chapter shall be so applied so as to occasion an undue burden upon interstate commerce or be violative of the Constitutions of the United States and/or the State of California. Sec. 21-57. Apportionment; necessary rules and regulations. When, by reason of the provisions of the Constitution of the United States or the Constitution of the State of California, the business tax imposed by the provisions of this chapter cannot be enforced as to any single class or set of classes of business or business activity without there being an apportionment according to the amount of business done in the city, or in the State of California, as the case may be, the Collector, having first obtained the approval of the City Attorney shall make such rules and regulations for the apportionment of the tax as are necessary or otherwise desirable to overcome the constitutional objections. Sec. 21-58. Burden on interstate commerce; petition for adj us tment. In any case where a license tax is claimed by a licensee or applicant for license to place an undue burden upon interstate commerce, or be violative of the Constitutions of the United States and/or the State of California, he or she may apply to the Collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at, or within six (6) months after payment of the prescribed license tax. The applicant shall by affidavit and supporting testimony show his or her method of business and 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 undue burden on such commerce. The Collector shall then conduct an investigation and, having first obtained the approval of the City Attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory. If the license tax has already been paid, he or she shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the Collector may base the license tax upon a percentage of the gross receipts or any other measure which will assure that the license tax levied shall be uniform with that levied on businesses of like nature so long as the amount levied does not exceed the license tax as prescribed by this chapter. Should the Collector determine the gross receipts measure of business tax to be the proper basis, he or she may require the applicant to submit, either at the time of termination of applicant's business in the city, or at the end of - 34 1,35 each twelve (12) month period, a verified affidavit of the gross receipts amd payment of the amount of license tax therefor; provided that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in th~ chapter. The Collector shall, upon proper showing contained in the verified affidavit, cause the issuance of a license to such person showing partial exemption under this section with a license tax based upon the approved reduced gross receipts. The Collector after giving not ice and a reasonable opportunity for hearing to a licensee, shall revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein. Sec. 21-59. Undue burden on intercity commerce; petition for adjustment. None of the license taxes provided for in th~ chapter shall be so applied as to occasion an undue burden upon any business done in the city, where the business conducted is related to a regularly established business conducted elsewhere. In any case where a license tax is claimed by any licensee or applicant for license to place an undue burden upon such commerce, he or she may apply to the Collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at, or within six (6) months after payment of the prescribed license tax. The applicant shall by affidavit and supporting testimony show his or her method of conducting business, the gross volume of business inside the city, and such other information as the Collector may deem necessary in order to determine the extent, if any, of undue burden of such commerce. The Collector shall then conduct an investigation, and, after having first obtained the written approval of the City Attorney, shall fix as the business tax for the applicant an amount that is reasonable and nondiscriminatory. If the license tax has already been paid, he or she shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the Collector may base the license tax upon a percentage of gross receipts from business conducted inside the city or any other measure which will assure that the business tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the business tax as prescribed by this chapter. Should the Collector determine the gross receipts measure of business tax to be the proper basis, he or she may require the applicant to submit, either at the time of termination of applicant's.business in the city, or at the end of each twelve (12) month period, a verified affidavit of the gross receipts and payment of the amount of license tax therefor; provided that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this chapter. - 35 - The Collector shall, upon proper showing contained in the verified affidavit, cause the issuance of a license to such person showing partial exemption under this section with a license tax based upon the approved reduced gross receipts. The Collector after giving notine and a reasonable opportunity for hearing to licensee, shall revoke any license granted pursuant to this section upon information that the person is not entitled to the adjustment as provided herein. - 36 ARTICLE VII. PROCEDURE Sec. 21-60. Application. Before any license is issued, the applicant shall make a written application to the Collector, which shall contain the following information: The exact nature or kind of business, profession, show, exhibition, game, occupation or enterprise for which the license is requested; (2) The place where such business, profession, show, exhibition, or enterprise is to be carried on; and if the same is not to be carried on at any permanent place of business, the residence address, identified as such, of the owners of the same; (3) The address where the applicant shall consent to receive mail concerning the license applied for; (4) Where any person contracts, sells or delivers any goods, wares or merchandise in the city for which sales or use tax is payable, the application shall set for the appropriate Callfornia State Board of Equalization Permit Numb e r; (5) Where any person employs others in the course of such business the application shall set forth the appropriate Federal and/or State Employer Identification Number; (6) Where any person conducting any business is self- employed, the application shall set forth the applicant's Social Security Number; (7) In the event that the application is made for the issuance of a license to a person doing business under fictitious name, the application shall set forth the names and places of residence of those owning said business or enterprise; a ($) In the event that the application is made for the issuance of a license to a person doing business as a state licensed contractor, the application shall set forth the applicant's State Contractor's License Number and Specialty Classification. (9) In all cases where the amount of tax to be paid is based upon the number of persons employed, or upon the number of vehicles used, or upon the number of rental units in any building or structure, or upon the seating capacity of any auditorium, stadium or enclosure, or upon the number of coin-operated machines or devices, or upon any amount or number which furnishes the basis for - 37 - 138 (10) determination of the license tax for the particular business referred to in the application, such items must be stated on the application; provided that a newly established business shall make a true estimate or statement of such information and the business tax shall be based upon said estimation and shall be paid at the time such license is issued. Any further information which the Collector may require to enable him to issue the type of license applied for; (11) (12) Any further information which the state may require, or any further information which the Collector may deem necessary to properly identify the applicant. A signed statement made under penalty of perjury that the statements therein are true and correct, which statement shall be required to be filed with the Collector upon submiss ion of any or iginal 1 icense appl tcat ion, annual renewal statement, miscellaneous supplementary statement, or other return or filing. Each such declaration of truth of application or statement shall have included therein, or attached thereto, a certification or declaration, which shall be substantially in the following form: "I declare, under penalty of perjury; that this application, return or statement (including any accompany lng schedules, statements, and supporting data) has been examined by me, and, to the best of my knowledge, information, and belief, is a full true and correct, application, return, or statement and I accordungly so represent. Signature of Owner, or Partner, or Officer of Corporation, or Other Authorized Agent or Representative of any of the above said same." Date All information specified to be set forth on any application form prescribed by the Collector shall be submitted completely and accurately and the license shall be deemed based upon the information submitted and represented. The Collector shall not be required to receive or consider, any application, return or statement unless the above quoted declaration, in substantially the form here inabove set forth, is contained therein or attached thereto and properly executed by the applicant or the authorized agent or representative of the applicant, and it is unlawful and shall be deemed a misdemeanor in any such application, return or statement for such applicant or authorized agent or representative of the applicant to make any statement which is false or which is contrary to the declaration or representation made in the above quoted form. ~ - 38 Any license shall be deemed based upon the application on file, and if the~ information is incomplete or inaccurate, the license shall be deemed invalid. If information submitted in an application subsequently becomes incomplete or inaccurate by reason of a change in circumstances, the license shall thereafter be deemed invalid. Upon the Collector's learning of any inaccuracy or incompleteness, notice shall be given forthwith to the licensee, at the address shown on the license where the licensee consented to receive information concerning his or her license, that the license is invalid and requesting the licensee to reapply for a re-validated license within thirty (30) days. Upon the licensee's successful application for a re-validated license within the period here inabove set the Collector shall apply pro rata to the re-validated license the remainder of the sum originally paid by the licensee. Upon the licensee's failure to make successful application for a re-validated license within the period here inabove set the Collector ~hall give ~otice forthwith pursuant to Section 21-86 that the licensee's license is hereby suspended. Thereafter, upon denial of licensee's appeal it shall be revoked whereupon the licensee's original payment shall be forfeit. Any person refusing or failing to make application or to provide information required shall be assessed an amount pursuant to Section 21-41, and shall be in violation of this chapter. Sec. 21-61. Application processing charge. A minimum charge is required for the processing of any license application. This charge shall be in addition to the business license tax and shall not be prorated. The charge shall not be refunded if the application is rejected. However, if after receipt of applicant's written notification of cancellation, no required inspection or investigation has taken place pursuant to any applicable provision of this Code, and no business activity has been transacted or carried on, then in that event a refund request for all inspection or investigation fees paid exceeding fifteen dollars ($15.00) may be made pursuant to Section 21-87 subsection (d). In no event, however, shall the application processing charge be made refundable, other than as part of a refund made pursuant to Section 21-87 subsection (b). Provided further, that the Collector may waive the processing charge in the case of a bonafide non-profit, charitable, or otherwise fee- exempt licensee. The provisions of this chapter notwithstand, ing, the following application categories shall pay an application processing charge in the amount spec if ted: (a) Initial period application processing charge --- $15.00 (b) Re-validation application processing charge --- $10.00 - 39 - Sec. 21-62. Contents of license. Ail licenses, unless otherwise provided in this Code, shall be prepared and issued by the Collector upon the payment to the city of the sum required to be paid hereunder, or upon filing of proof satisfactory to the Collector of eligibility for exemption from such payment. Each license so issued shall state upon the face thereof the following: (1) The license number of the license. (2) (3) The date of expiration of such license. The persons to whom the same is issued, or where the said persons are doing business under a fictitious name; both the actual and fictitious names to whom the same is issued. (4) The kind of business, profession, show, exhibition, game, occupation or enterprise licensed and the location of the same. (5) Where said business involves the contracting, sale, or delivery of any goods, wares or merchandise in the city for which sales or use tax is payable to the state the state sales tax number issued to same. (6) A statement that the holder thereof has paid a license fee or a statement that the holder thereof is exempt from such payment; and said license when issued, shall be deemed the receipt for said payment received by the city. (7) A statement that this license is issued without verification that the licensee is subject to or exempt from licensing by the State of California. (8) Any additional statement the Collector may deem necessary or which .the state may require. Sec. 21-63. Statement of fee; mistake not conclusive. (a) No greater or lesser amount of money shall be charged or received for any license tax other than provided for in this chapter. In no case shall any mistake of the Collector in stating the amount of a license tax, or of penalties, or interest accrued thereon prevent or prejudice the collection by the city of what should actually be due from any person carrying on a business subject to a license tax under this chapter. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. - 4O 141 (b) Where a mistake is made in the issuance of any license with regard to .the classification under which said license Was issued, then a new license shall be issued in the proper classification in lieu thereof, under the date of the original license, and the licensee shall pay any additional amount required by such a change. Sec. 21-64. Tax - How and when payable; effect of dishonored instrument. Ail business license taxes or deposits in lieu thereof due hereunder shall be paid in advance, in lawful money of the United States, or by check, draft or other instrument in the discretion of the Collector, at the office of the Collector in the finance department of the city. No business license shall be issued or renewed until the amount due and payable has been paid in full. Any license, the fee for which has been paid by an instrument such as a check, or draft which is dishonored upon presentation for payment, shall be void and of no effect from its inception. The Collector may, in his or her discretion, withhold the effect of this provision if the fee is paid within ten (10) days. Payment of license fees following a dishonor of such instrument upon presentation for payment shall thereafter be made only by cashier's check, money order or cash, which fee shall include any applicable penalty, as well as a service charge of ten dollars ($10.00) for such dishonored instrument. The Collector shall be authorized to reject payment other than by cash, cashier's check or money order from such licensee for a period of two (2) years following any such dishonor. Sec. 21-65. Same - Method of computation. In computing the amount of tax to be paid under this chapter, the amount shall be rounded off to the nearest dollar as follows: If the remaining fraction of a dollar is forty-nine cents or less, such fraction shall be waived; if the remaining fraction of a dollar is fifty cents or more, the next highest full dollar shall be charged. Sec. 21-66. Same - Application of money towards delinquent fees. Money received during the current year for a license shall first be applied to the payment of delinquent fees, sums and penalties due during any preceding calendar year, any balance remaining thereafter shall be applied to the payment of the current license fees and penalties. A license issued during any prior year to the same owner, tenant or occupant for the same place of business shall be prima facie evidence in any court or administrative proceeding that the business was continuously operated by the same person or firm from said prior year to the current year. - 41 - Sec. 21-67. Nontransferable, change of name or location. (a) No license issued pursuant to this chapter shall be trans- ferable or assignable; provided, that where a license is issued authorizing a person to conduct a business at a particular place, such licensee may upon application therefor and upon paying a charge of ten dollars ($10.00) have the license amended to authorize the conducting of such business under said license at some other location to which the business is or is to be moved. (b) Provided that where a person holding a license issued under the provisions of this chapter changes the name of the business, such person shall upon changing the name make an application to the Collector and pay a charge of ten ($10.00) dollars to have said license amended to reflect the change in name. (c) Provided further that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer, shall not be prohibited by this section. For the purpose of this section stockholders, bondholders, partnerships, or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corporation or other entity. Sec. 21-68. Use of license by unlicensed person. No person holding a license required by this chapter shall permit any unlicensed independent contractor, itinerant merchant, or other person to use the license, the licensed premises or the licensee's name for the purpose of evading payment of any license tax or of evading any other provision of this chapter. Sec. 21-69. Duplicates. A duplicate license may be issued to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing a statement of such fact, and, at the time of filing such statement, paying a duplicate license charge of ten dollars ($10.00). Sec. 21-70. Posting - Public display; keeping on person. (1) Any licensee transacting and carrying on business at a fixed place of business in the city which is open to the public shall keep the license prominently posted in a conspicuous and public place upon the prem~es where such business is carried on. Provided further that any licensee transacting and carrying on business at a fixed place of business in the city which is closed to the public shall nevertheless keep the license posted in a conspicuous and accessible place upon the premises where such business is carried on. - 42 - - · 4!3 Sec. 21-71. (2) Any licensee transacting and carrying on business at a fixed place of business in the city without an agent or employee on the premises shall post in a conspicuous place the name, address and telephone number of the person or persons to be contacted to verify the possession of a proper and valid license. (3) Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license within h~ or her possession at all times while transacting and carrying on such business. (4) Whenever the city shall provide a special tag or plate for the identification of a vehicle for which a business license tax has been paid, such tag or plate shall be affixed to the vehicle in accordance with the pertinent regulations of the Collector. (5) Whenever the city shall provide a special decal, metal- cal or label for the identification of a coin-operated machine or device for which a business license tax has been paid, such decal, metal-cai or label shall be affixed to the machine or device in accordance with the pertinent regulations of the Collector. (6) Any person having a license under the provisions of this chapter shall produce and exhibit same whenever required to do so by any revenue officer or police officer, or by any other officer or official or employee authorized to inspect licenses or by any person being solicited. (7) No person shall exhibit a revoked business license. (8) No person shall reproduce, duplicate, copy or alter an original business license for the purpose of circumventing the requirement of this section by giving a false or misleading impression that any duplication of an original city business license is valid and that the appropriate fee therefor has been paid. Term of license; renewal - Annual and quarterly. Ail annual license renewals shall be for the period of one year beginning on the first day of January and ending on the thirty- first day of December. Ail quarterly licenses shall be for the period of three (3) months beginning on the first day of January and ending on the thirty-first day of March; on the first day of April and ending on the thirtieth day of June; on the first day of July and ending on the thirtieth day of September; on the first day of October and ending on the thirty-first day of December. - 43 - Sec. 21-72. Renewal due dates; grace period. The license taxes required to be paid by the provisions of this chapter, except gross receipts taxes, if paid annually shall become due and payable on the first day of January and shall become delinquent on the first day of February of each year, or if paid quarterly on the first day of February, May, August and November. Ail required reports of gross receipts shall be filed no later than the last day of February. The gross receipts license tax for the current year shall be based on the filed gross receipts statement and if paid annually shall become due and payable on the first day of March and shall become delinquent on the first day of April or if paid quarterly on the first day of April, May, August and November. Any business holding a currently valid city business license tax receipt and desiring to pay tax quarterly may elect upon renewal to do so by making application and paying a quarterly fee equal to thirty-five percent (35%) of the annual rate. Ail daily or monthly license taxes shall be paid in advance. Sec. 21-73. Term of license; new - Annual and quarterly. Ail new annual licenses issued on or before October thirty- first of the current year shall be for the period of time remaining in the current year and shall expire on the thirty- first day of December. Ail new annual licenses issued on or after November first of the current year shall be for the period of time remaining in the current year as well as the entire period of the following year ending December thirty-first. Ail new quarterly licenses issued on or before October thirty-first of the current year shall be for the time remaining in the individual quarter. Ail new quarterly licenses issued on or after November first of the current year shall be for the time remaining in the last quarter of the current year plus the entire period of the first quarter of the following year. Sec. 21-74. Renewal license; affidavit. In all cases, the applicant for the renewal of a license shall submit to the Collector for his or her guidance in ascertaining the amount of the license tax to be paid by the applicant, a sworn statement, upon a form to be provided by the Collector, setting forth such information concerning the applicant's business during the preceding year as may be required by the Collector to enable him or her to ascertain the amount of the license tax to be paid by said applicant pursuant to the provisions of this chapter. - 44 - 145 Sec. 21-75. Notification of flat rate tax due. Notification of business license tax due, when said taxes are based upon flat rates, will be given by first class United States mail no later than the fifteenth day of January, provided that the licensee has submitted a timely renewal statement; provided further that failure to receive such notification shall not exempt the licensee from all requirements under this chapter. Sec. 21-76. Renewal statement; flat rate - Submission and filing. In all eases where the license is based on a flat rate, the applicant shall submit to the Collector, for his or her guidance in ascertaining the amount of license tax to be paid by the applicant, a written statement upon a form to be provided by the Collector, written under penalty of perjury or sworn to before a person authorized to administer oaths, setting forth such information concerning the nature, location, intended duration~ and ownership of applicant's business as well as any additionai information required by the Collector to enable him or her to ascertain the amount of license tax to be paid by said applicant pursuant to the provisions of this chapter. The filing dates for the submission of renewal statements shall be during the period from the first day of December to the thirty-first day of December of each calendar year. In the case of a variable flat tax based upon the number of persons engaged or employed the statement shall be for the preceding twelve (12) month period. Sec. 21-77. Notification of gross receipts tax due. Notification of business license tax due, when said taxes are based upon gross receipts, will be given by first class United States mail no later than the fifteenth day of March, provided that the licensee has submitted a timely statement of gross receipts; provided further that failure to received such notification shall not exempt the licensee from all requirements under this chapter. Sec. 21-78. Renewal statement; gross receipts - Submission and f il ing. In all cases where the license is based on gross receipts, the applicant shall submit to the Collector, for his or her guidance in ascertaining the amount of the license to be paid by the applicant, a written statement upon a form to be provided by the Collector, written under penalty of perjury or sworn to before a person authorized to administer oaths, setting forth such information concerning the nature, location, intended duration, and ownership of applicant's business as well as applicant's gross receipts during the preceding year as may be required by the Collector to enable him or her to ascertain the amount of license tax to be paid by said applicant pursuant to the provisions of this chapter. The filing dates for the submission of gross receipts statements shall be during the period from the - 45 first day of January to the twenty-eighth day of February for the period of the preceding calendar year. Sec. 21-79. Same - Failure to file or correct - Notice of assessment. If any person fails to file any renewal statement within the prescribed time or if after demand therefor he or she fails to file a corrected statement, the Collector shall determine the amount of license tax due by means of such information as he or she may be able to obtain. In determining the amount of license tax due for any business for whom the gross receipts of such business is made the basis for fixing the amount of such license the Collector may in his or her discretion base such determination upon an average of the reported gross receipts of like businesses, similarly classified. Upon making a determination, the Collector shall give a notice of the amount due by personal service or by depositing it in the United States post office in the city, postage prepaid, addressed to the person at his or her last known address. Sec. 21-80. Same - Not conclusive; audit of books. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the.several items therein contained shall be subject to audit and verification by the Collector, his or her Revenue Officers, or authorized agents of the city, who are hereby authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee due. All persons subject to the provisions of this chapter shall keep complete records of business transactions, including rent collected, sales, sales tax collected and paid to the state, receipts, purchases, and other expenditures, including the number of persons employed and otherwise engaged in the business, and shall retain all such records for examination by the Collector. Such records shall be maintained for a period of at least three (3) complete calendar years. No person required to keep records under this section shall refuse to allow authorized representatives of the Collector to examine said records at reasonable times and places. Any person who willfully refuses to allow said examination on demand and at a reasonable time and place as herein provided shall be deemed guilty of a misdemeanor. Sec. 21-81. Same - Confidentiality It shall be unlawful for the Collector or any person having administrative duty under the provisions of this ordinance to make known in any manner whatsoever the business affairs, operations, or information obtained by an investigation of - 46 - 147 records and equipment of any person required to obtain a license, or pay a license tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof to be seen or examined by any person. Ail gross receipts statements or estimates required by this chapter shall be confidential and are hereby declared not to be public records. Any unauthorized disclosure or use of such information by any officer, agent or employee of the city shall be subject to the penalty provisions of this Code in addition to any other penalties provided by law. Provided that nothing in this section shall be construed to prevent: (1) The disclosure to, or the examination of records and equipment by, another city official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter, or collecting taxes imposed hereunder; (2) The disclosure of information to, or the examination of records by, federal or state officials, or the tax officials of another city or county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena; (3) The disclosure of information and results of examination of records of particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any license tax liability of the particular taxpayers to the city; (4) The disclosure after the filing of a written request to that effect, to the taxpayer himself or herself, or to his or her successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any tax paid, any unpaid tax or amounts of tax required to be collected, interest and penalties. (5) The disclosure of the names and business persons to whom licenses are currently issued, type or nature of their business; addresses of and the general (6) The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files an appeals claim for fee-exemption, license reinstatement, refund of forfeited fees or bonds, compromise with regard to a claim asserted against him or her by the city for license taxes, or when acting upon any other matter; (7) The disclosure of general statistics regarding taxes collected or business done in the city. - 47 - 148 Sec. 21-82. Payments, statements, ets., made by mall; effect. When the last day of the month in which the business tax is due falls on a Saturday, Sunday, or state or national holiday, payment of the business license tax may be made without penalty on the first working day of the succeeding month. For the purpose of this Article, post marks shall be accepted as the date of payment made, provided the transmitting envelope contains a post office cancellation indicating not later than the date due, or in the case of a weekend or holiday, not later than the first following working day. Whenever any other payment, statement, application, report or other communication received by the Collector is received after the time prescribed by this chapter for the receipt thereof, and whenever the Collector is furnished sufficient proof that the payment, statement, application, report, request or other communication was in fact deposited in the United States Mall prior to the time prescribed for the receipt thereof, the tax Collector shall regard such payment, statement, report, request or other communication as having been timely received. Sec. 21-83. Penalties for delinquency; application- Written agreement to satisfy indebtedness; effect. For failure to pay a license tax when due, the Collector shall add the following penalties: (1) Ten dollars ($10.00) or ten percent (10%) of sa.id tax, whichever is greater, on the past due date thereof; (2) Fifteen dollars ($15.00) or fifteen percent (15%) of said tax, whichever is greater, on the first day of the second month after the past due date thereof; (3) Twenty-five dollars ($25.00) or twenty-five percent (25%) of said tax, whichever is greater, on the first day of the third month after the due date thereof; and (4) Fifty dollars ($50.00)or fifty percent (50%) of said tax whichever is greater, on the first day of the fourth month thereafter; provided that the maximum amount shall not exceed an amount equal to one hundred percent (100%) of the amount of the business license tax due. No license or sticker, decal, tag, plate or symbol shall be issued, nor shall one which has been suspended or revoked be reinstated or reissued, to any person who, at the time of applying therefor, is indebted to the city for any delinquent business tax, unless such person, with the consent of the Collector, enters into a written agreement with the city, through the Collector, to pay such delinquent taxes, plus ten percent (10%) simple interest upon the unpaid balance, in monthly installments, or oftener, extending over a period not exceeding one (1) year. In any agreement so entered into, such person shall acknowledge the obligation owed the city and agree that, in the event of failure to make timely payment of any installment, the whole amount unpaid, principal together with interest, shall become immediately due and payable. In the event, such person fails within a period of thirty (30) days thereafter to render - 48 - 149 payment in full, his or her current business license shall be revoked by'. the Collector. In the event legal action is brought by the city to enforce collection of any amount included in the agreement, such person shall pay all .costs of suit incurred by the city or its assignee, including attorney fees. The execution of such an agreement shall not prevent the prior accrual of penalties on unpaid balances at the rate provided hereinabove, but no penalties or additional interest shall accrue as hereinafter provided on account of taxes included in the agreement after the execution of the agreement and the payment of the first installment and during such time as such person shall not be in breach of the agreement. The execution of such an agreement shall render any subsequent appeal null and void and shall constitute a waiver against future action. Sec. 21-84. Same - Added to tax. Any penalties assessed hereunder, exclusive of interest, upon attaining a combined amount equal to one hundred percent (100%) of the amount of the business license tax due shall become merged with the tax payable hereunder and shall be considered as a part thereof for all purposes. Sec. 21-85. Same - Interest. In addition to the penalties imposed, any business that fails to remit the tax due shall pay interest at the rate of one percent (1%) per month, exclusive of penalties, from the date on which remittance first became delinquent until paid. Provided however., that pursuant to Section 21-84 penalties upon attaining a Combined amount equal to one hundred percent (100%) of the amount of the business license tax due are merged with the tax payable hereunder and any additional interest charged from such date on shall be charged on the combined amount delinquent until pa id. Sec. 21-86. Same - Suspension and revocation of license. The Collector shall suspend and/or revoke any license issued or granted pursuant to this chapter only upon those grounds set forth in Sections 21-45, 21-50, 21-55, 21-58, 21-59, 21-60 or upon conditions set forth in any written agreement executed pursuant to Section 21-83. Provided further, that unless revocation is made upon conditions set forth in a written agreement executed pursuant to Section 21-83, no licensee's license shall be suspended and/or revoked for failure to pay the license tax or any other amount due pursuant to this chapter until the penalties accruing for such failure to pay, exclusive of interest, equal one hundred percent (100%) of the business license tax due for such license. Whereupon, the Collector shall give a notice of suspension, which notice shall specify the grounds for suspension, and which notice shall be given by personal service or by depositing it in the - 49 United States post office in the city, postage prepaid, addressed to the licensee at the address listed on the application of the licensee where he or she consented to receive mall concerning his or her license, to obtain a license or to pay any license tax due. In the event said licensee fails, within a period of thirty (30) days notice, to pay the license tax due or any other amount due pursuant to this chapter, or to request a hearing the procedure for which shall be as provided in Section 21-41, then and in that event the Collector shall give a notice of revocation. The licensee shall be given at least ten (10) days notice, which notice shall specify the grounds for revocation, and which notice shall be given pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails within the allotted ten (10) day period to request a hearing to show cause why his or her license should not be revoked, then and in that event the Collector shall revoke said person's license and give notice thereof to said person pursuant to the hereinabove set forth procedure for giving notice. In the event said licensee fails to file within ten (10) days thereafter, an appeal pursuant to Chapter 3 of~this. Code, then the Collector's action in revoking said person's lzcense shall be conclusive as to all matters involved, and the transacting and carrying on by any person of any business pursuant to said license shall thereafter be deemed a misdemeanor. Sec. 21-87. Refunds authorized. Any business tax, or penalties or interest thereof, may be refunded, if they were: thereon, or portion (a) (b) (c) (d) Paid more than once; Erroneously or illegally collected; Paid in excess of the correct amount due; Issued for a business which subsequently does not operate in the city, due to applicant's inability to obtain additional permits required under any provision of this Code. In such case, the applicant shall be entitled to a refund of the business tax paid. Where applicant cancels his license prior to any inspection or investigation taking place, then in that event, applicant shall be entitled to a refund of all tax, inspection or investigation fees paid, less the fifteen dollar ($15.00) application processing charge, without further deduction to cover the administrative cost therefor. 50 - (e) Issued for a business which subsequently becomes prohibited or illegal under any law of the state. In such case, the amount refunded shall be prorated on the bas is of the proportion which the number of months remaining in the period for which the business tax was paid bears to the number of months in the whole period. Sec. 21-88. Application for refund. No refund of monies howsoever paid or collected shall be allowed in whole or in part unless an application therefor is filed with the Collector within a period of one (1) year from the expiration of the license period for which a refund is sought, and all such claims for refund must be filed with the Collector on forms furnished by him or her in the manner prescribed by him or her. Such application maybe made only by the person who made the payment, his or her guardian, executor, administrator or heir. Refunds shall not be made to an assignee of the applicant. Upon the filing of such a claim, and when he or she determines that a refund is warranted, the Collector shall refund the amount warranted, less fifteen dollars ($15.00), to cover the administrative cost of the refund. Provided, however, that in the case of a refund made pursuant to Section 21-87 subsection (b), and where applicable, subsection (d), no deduction shall be made on account of the administrative cost therefor. The failure to file such application within the time prescribed herein shall bar any future right of recovery. Sec. 21-89. Same - No refund in instance of other delinquency. Where the Collector has determined pursuant to Section 21-88 that a refund is due upon a particular business license, but where the applicant or licensee is at the same time determined to be delinquent or otherwise liable for a business license tax upon a separate business license, or for a separate unlicensed business; then in that event, the Collector shall apply said refund amount to the balance owing and delinquent for said business license or for said unlicensed business. The Collector shall then refund any amount remaining. Sec. 21-90. Same - Fraud bar to refund. No refund shall be made where the business license was issued under a misrepresentation of fact by the applicant and or such applicant actually engaged in the conduct of the business for wh£ch the license was granted prior to the date stated in applicant's original application. Sec. 21-91. Same - Proof of payment prerequisite to refund. In all cases proof of payment shall be a prerequisite to any refund. - 51 Sec. 21-92. Same - No refund upon termination of business. The business license taxes under the terms of this chapter are not refundable upon termination of a business or for any unused portion or term of a license period. - 52 - 153 Sec. ARTICLE VIII. ENFORCEMENT 21-93. Enforcement; duty to examine all places of business. It shall be the duty of the Collector or his or her designated agents to enforce all of the provisions of this chapter and the Chief of Police, the Chief Building Official, the Chief Fire Official, and the City Attorney shall render such assistance in the enforcement thereof as may from time to time be required by the Collector. The Collector in the exercise of the duties imposed hereunder and acting through his or her deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the city to assure compliance with the provisions of this chapter. Sec. 21-94. Enforcement; right of entry. The Collector and all of his or her duly authorized assistants and any police officer shall have the power and authority to enter during business hours, free of any charge, and at such other times as may be reasonable following due process of law, any place of business required to be licensed herein and demand a display of the required business license tax receipt. Failure to exhibit said license receipt upon demand therefor shall be punishable as specified hereinafter: (a) Any person not having such license tax receipt theretofore issued on display in a conspicuous place on the premises pursuant to Section 21-70 shall be deemed guilty of a criminal infraction. (b) Any licensee whose license is delinquent and unissued and/or any licensee who has been placed on notice of a suspended license by personal service, or served notice through the United States Mail, or by a notice conspicuously posted upon the premises, and who has not applied for, or who is not undergoing the process of a hearing or appeal pursuant to Sections 21-41 or 21-86 of this chapter or Chapter 3 of this Code shall be deemed guilty of a Criminal infraction. (c) Any person having been previously placed on notice of violation by personal service, or served notice through the United States Mail, or by a notice conspicuously posted upon the premises, and who has not paid said business license tax or applied for exemption therefrom and who has not applied for, or who is not undergoing t.he process of a hearing or appe~al p_ur.su, ant to Sections 21-41 or 21 86 of this chapter or Chapter J o~ thls Code shall be deemed guilty of a criminal infraction. - 53 - (d) Any person having been previously placed on notice of revocation by personal service, or served notice through the United States Mail, or by a notice conspicuously posted upon the premises, and who has not applied for, or who is not undergoing the process of a hearing or appeal pursuant to Section 21-41 or 21-86 of this chapter or Chapter 3 of this Code shall be deemed guilty of a misdemeanor. (e) Any person having such license tax receipt theretofore issued in his or her possession or under his or her control, who willfully fails to exhibit the same on demand as provided for herein, shall be guilty of a misdemeanor. Sec. 21-95. Enforcement; duty to enforce civil and penal penalties against delinquent licensees. It shall be the duty of the Collector to maintain a list of all delinquent business taxes that are payable under this chapter, and upon the same having attained the maximum penalty perm. itted under this chapter of one hundred percent (100%) of the license tax due and upon the same coming to his or her knowledge, he or she shall give notice to the licensee of suspension and thereafter act to collect the same in his or her discretion, b~ suit or otherwise. Sec. 21-96. Enforcement; duty to serve notice of violation; duty to file complaint or issue citation upon continued v iolat ion. It shall be the duty of the Collector to cause a notice of violation to be served on any person found to be in violation of this chapter and thereafter to cause a complaint to be filed and/or a citation issued to any person found to be in continuing violation of any provisions of this chapter. - 54 - 155 AKTICLE IX. MISCELLANEOUS Sec. 21-97. Swap meets. Swap meet exhibitors and swap meet operators shall pay business license tax according to the provisions of this section. (a) Definitions. As used in this section, the following words, terms, or phrases shall have the meaning hereinafter set forth: (1) (2) "Swap Meet" shall mean any event where the place or location at which the event is held has been advertised by any means whatsoever as a place or location to which members of the public at large, during a specified period of time, may bring identifiable, tangible property and exhibit the same for sale or exchange. "Swap Meet Exhibitor" shall mean any person exhibiting, displaying, selling, exchanging, offering for sale or exchange any property at a swap meet. (3) "Swap Meet Operator" shall mean any person or organization conducting or operating the business of a swap meet on any premises in the city excluding, however, swap meet exhibitors. (b) Fees. (1) Every swap meet operator shall pay an annual business license fee according to Section 21-119(1) of this chapter. (2) Each swap meet exhibitor participating in a swap meet shall pay a fee in the amount of one dollar ($1.00) per swap meet stall per day. Where two (2) or more swap meet exhibitors share a single stall, each such exhibitor shall pay a separate daily stall fee. Such fee shall constitute a debt owed by the swap meet exhibitor to the city and shall be extinguished only by payment to the swap meet operator. The swap meet exhibitor shall pay the fee to the swap meet operator at the time and on each day the swap meet exhibitor participates in the swap meet. Any unpaid fee shall be paid upon the termination of the swap meet exhibitor's participation in the specific swap meet. Each swap meet operator shall collect the fee imposed by the provisions of this section to the same extent and at the same time as any other fees are collected from every swap meet exhibitor. The amount of the fee shall be separately stated from any other monies collected by the swap meet operator. The fee shall be in addition to any other fee required by the city. - 55 - 156 On or before the tenth day following each swap meet, each swap meet operator shall file a return with the Collector showing the total amount of fees collected under this section and such other information as may be required by the Collector. At the time the return is filed, the swap meet operator shall remit the full amount of the fees collected to the Collector. Returns and payments shall be due ~mmediately upon cessation of business by the swap meet operator for any reason. (4) Every swap meet operator shall hold all fees collected under this section in trust for the account of the city until payment thereof is made to the Collector. Any swap meet operator who fails to remit the fees within the time specified shall pay a penalty of ten (10%) for each month said payment is overdue. (c) Records. Each swap meet operator shall keep full and accurate records of gross receipts and stall rentals to vendors in connection with the operation of the swap meet. The city, by and through its authorized officers shall have the right to examine and audit such records, including records of any bank accounts, at any reasonable time, and swap meet operators shall cooperate fully with inspection of them. Such records shall include, but are not limited to, the total amount of gross receipts from each day, as well as whatever records are necessary in order to provide the city any.require, d information pursuant to subsection (b)(3) of thzs sectzon. Sec. 21-98. Coin-operated machines or devices; license tax imposed; amount of tax; applicability of tax where devices are operated as secondary business. (a) For every person whose business is limited exclusively to renting, leasing, maintaining or letting the use of any coin- operated machine or device, or otherwise engaging in vending operations, or in operating any coin-operated machine or device at any location or fixed place of business owned or otherwise under the control of another, the annual license tax on business done exclusively within the city, for every device so rented, leased, let, maintained or operated, shall be twenty dollars ($20.00) per each ten cent ($0.10) device and over or ten dollars ($10.00) for the first five cent ($0.05) device and under and thereafter five dollars ($5.00) for each such additional device five cents ($0.05) and under. 56 - '157 (b) Any person whose primary business is not limited exclusivel~y to coin-operated machines or devices, and for which he or she pays a license tax based on gross receipts, but who owns, leases, or rents for operation at his or her fixed place of business any coin-operated machine or device or who receives rent for the operation of any coin-operated machine or device thereat, or who otherwise participates in the gross receipts derived from the operation of such machines thereat; such person may elect to combine the gross receipts of both activities and pay a license tax based upon the total receipts thereof which will be assessed at the same rate as is applied to his or her primary business according to Section 21-119 of this chapter. Such election shall be made in writing at the time of applicant's original application for a business license or may be made once annually thereafter at the time of licensee's application for a renewal 1 icense. (c) Where any licensee engages in the operation of any coin- operated machine or device at his or her fixed place of business subsequent to the commencement and licensing of licensee's primary business, the initial license tax due shall be identical to the tax established in subsection (a) above. However, upon the expiration of the initial licensing period, licensee may elect to pay the tax as provided pursuant to subsection (b) above. Sec. 21-99. Same -Applicability of tax where coin-operated machines or devices are operated as primary bus iness. For every person whose primary business is limited exclusively to the operation of coin-operated machines or devices upon premises owned or controlled by such person, the annual license tax on business done shall, be based upon the total gross receipts thereof according to Sectxon 21-119(1) of this chapter. Sec. 21-100. Additional required information. At the time the license required by this article is applied for, the applicant, in addition to other application requirements of this chapter, shall give the kind or character of the machine or device, business name and street address and number of machines or devices at each proposed location. Sec. 21-101. Sealing of non-identified or unlicensed machines. The Collector, as Chief Revenue Officer, and each and every duly authorized Revenue Officer of the city shall seal the coin openings or slots in a manner which will render inoperative the coin devices on any machine or device not otherwise exempted by the provisions of the chapter which is found available to the public for operation and which does not have stamped or affixed thereon the required identification or for which the proper license tax has not been paid in full; in lieu thereof, he or she may seize and hold any such machine for the payment of such 57 - license tax pursuant to Section 21-102. A service charge of ten dollars ($10.00) shall be paid in advance to the Collector, or his or her authorized agent by the owner or operator of any such machine or device so sealed for the removal of such seals. No person shall operate any machine or device so sealed without first submitting evidence to the Collector or his or her duly authorized agent that payment of the required license tax and service charge prescribed in this section has been made and until the required identification has been stamped upon or affixed to the machine or device and the Collector or his or her agent has removed such seals. It is unlawful for any person other than the Collector or his or her duly authorized agents to break any such seals. Any person so doing shall be deemed guilty of a misdemeanor. Upon receipt of evidence of payment in full of the tax and service charge and, when applicable, evidence of other required compliance by the owner or operator of any machine or device so sealed, the Collector or his or her duly authorized agent shall break and remove such seals. In the event of seizure, any such machines shall be disposed of upon nonpayment of such tax as provided by the laws relative thereto, pursuant to Section 21-102. Such machines may be reclaimed by the owners, prior to disposal, upon payment of taxes and all costs involved in the seizure, storage and handling thereof. Sec. 21-102. Enforcement; seizure of devices. In the event that any person engages in, conducts, transacts and carries on or manages the business of maintaining any coin- operated machines or devices and operates any such devices upon premises not belonging to, nor under the control of said person without obtaining a license therefor, or upon revocation of the same the Collector shall seize such coin-operated machines or devices and hold then as security for the payment of the license fee or any other amount due and owing pursuant to this chapter and shall not surrender same until a license is obtained or renewed. In the event the person owning or having control of the device fails, within a period of thirty (30) days after notice to said licensee served to the address listed on the application of the licensee where he or she consented to receive mail concerning his coin-operated machines or devices, to pay any license tax and any other amount due pursuant to this chapter, then and in that event the device shall be disposed of as hereinafter provided in this section. Where the person owning or having control of the device has failed to obtain a license for said device prior to the seizure of said same then notice shall be served through United States mail to the person owning or having control of the device to the address affixed to the device listing the owner's name and address. Where no address is so affixed a notice shall be conspicuously posted upon the premises where the device is being operated. In the event said person fails, within a period of thirty (30) days after the serving or posting of said notice, to obtain a business license, then in that event the device shall be disposed of as hereinafter provided in this section· - 58 159 The device or devices or so many thereof shall be sold to satisfy tee amount of license fee or any other amount due to the city pursuant to this chapter and any device or devices not sold shall be surrendered to the owner thereof; provided further that in the event the device or devices are sold for a sum less than the amount of the license fee or any other amount due and owing to the city pursuant to this chapter, the owner of the devices shall, nevertheless, remain liable for the balance of such license fees due and payable. Sec. 21-103. Owner of business responsible. The owner of the business wherein the machine or device indicated herein is located shall be held responsible for the full amount of the tax if the owner of the machines or device has not paid the tax when due and payable. Sec. 21-104. Decal, Metal-Cai or Labels to be attached to machine; information to be shown. (a) No person shall maintain any coin-operated machine or device within the city without having posted thereon, in a conspicuous place, a decal or label for identification purposes, on which is written the name, address and telephone number, if any, of the owner or operator thereof. (b) No person shall maintain any coin-operated machine or device within the city without having posted thereon, in a conspicuous place, a decal, metal-cai or label, which shall be issued and supplied by the Collector upon payment of the required tax, which decal, metal-cai or label shall indicate that the license tax has been paid for the current period. Sec. 21-104. Exemptions. No business license tax or identification shall be required for the maintenance or operation of: (1) Any U.S. postage stamp machine; (2) Any change machine; (3) Any machine dispensing sanitary or hygienic articles, or drinking cups, towels or medicine, which machine or device is entirely owned by the owner or operator of the premises where installed and is maintained solely for the convenience of the employees, visitors or customers; (4) Any machine or device dispensing newspapers or magazines; provided, that the distributor owning and or the independently contracted agent servicing each such machine or device has paid a business tax for the current license year pursuant to Article X of this chapter. In the event a business license tax has not been paid, the Collector or his or her duly - 59 authorized agent shall take action pursuant to Sections 21-101 and 21-102 by sealing the coin openings or seizing any such machines or devices that are found available to the public for operation. Sec. 21-105. Discontinuing maintenance of machines or devices; substitution of other machines or devices. In the event any person discontinues maintaining any machine or device duly licensed under this chapter during a period when such machine or device is licensed under this chapter, such licensee may substitute another like machine or device in its place, and may maintain such substituted machine or device without payment of an additional license tax for the unexpired period of the license carried on such discontinued machine or device; provided, that such person shall surrender the city-provided identifying decal, metal-cai or label, whichever the case may be, to the Collector or his or her duly authorized agent and obtain a new identifying decal, metal-cai or label for such unexpired period for such substituted machine or device. Sec. 21-106. Applicability of chapter; operation of illegal machines or devices. Nothing contained in this chapter nor any action of the Collector or any duly authorized agent in issuing a license shall in any manner be considered as expressing any opinion or approval as to the legality of any machine or device and shall be no authority to operate any machines or devices as set forth in this article which may be illegal or illegally operated under the laws of the state. Sec. 21-107. Peddlers and solicitors. Any person, whether a resident of the city or not, traveling by foot, automotive vehicle or any other type of conveyance, from place to place, or from street to street carrying, conveying or transporting goods, wares, merchandise, and offering and expos the same for sale, or making sales and delivering articles to the purchasers, or offering to sell or take orders for goods, wares, or merchandise or other things of 'value for future delivery, or for services to be performed in the future, or canvassing any opinions, preferences, endorsements, or other information from persons within the city, not otherwise licensed under the provisions of this chapter and not having a regularly established place of business within the city, as said established place of business within the city shall be defined in this section shall pay a license fee as follows: (a) One hundred dollars ($100.00) per year, or ten dollars ($10.00) per day, unless the person, persons, firms or corporations for whom such persons peddling and/or soliciting have a principal's peddler's or solicitor's license as hereinafter provided pursuant to Section 21-108. - 60 - (b) Thirty five dollars ($35.00) per year, if the person, persons, fir~s or corporations for whom such person i! ~eddling and/or soliczting have a principal's peddler's or solzcztor's license. The phrase, "having a regularly established place of business within the city" as used hereinabove and hereinafter below shall be defined as any individual having a fixed place of business within the city for a period of not less than ninety (90) days and having a State Board of Equalization permit number applicable to the aforementioned place of business so established in the city. Sec. 21-108. Principal's, Peddler's or Solicitor's License. Any person, firm or corporation, either employing one or more individuals, or contracting with one or more independent contractors to have such individuals solicit the retail sale of any goods, wares, merchandise, services or other things of value for future delivery, or for services to be performed in the future, or to peddle or sell goods, wares and merchandise or to solicit any opinions, preferences, endorsements, or other information from persons within the city, not otherwise licensed under the provisions of this chapter and not having a regularly established place of business within the city, may obtain a principal's, peddler's or solicitor's license and pay a license fee of two hundred dollars ($200.00) annually, plus ($10.00) per employee, for each employee engaged in peddling or soliciting within the city, excluding independent contractors required to be separately licensed pursuant to Section 21-107, subsection (b). The Collector shall not issue such license until the applicant files with the Collector a list of all peddlers and/or solicitors employed by the applicant or with whom the applicant has contracted, and a signed agreement that the applicant, within five (5) days thereafter, will notify the Collector in writing of every change in personnel of those soliciting and/or peddling for him. Sec. 21-109. Same; requirements for license. No license to peddle or solicit shall be issued to any person unless and until such person furnishes the Collector with his State Board of Equalization permit number, and agrees to report separately in his sales tax return to the state the amount of receipts from sales in the city, and agrees to pay the required sales or use tax on such receipts. This section shall apply only to those businesses subject to payment of a sales or use tax under the laws of the State of California. - 61 i'6'2 Sec. 21-110. Radio broadcasting, television broadcasting; sol ic it ing advert is ing therefor. Any person engaged in transacting and carrying on activities related to the generation of electromagnetic waves, within the city for the purpose of commercial broadcasting by radio tran. smission or television t. ransmission shall pay an annual busmess license fee accordzng to Section 21-119(1) of this chapter. Any person engaged in transacting and carrying on activities related to the solicitation of advertising within the city for radio or television transmission in intrastate commercial broad- casting and not otherwise licensed under the provisions of this chapter and not having a regularly established place of business within the city pursuant to Section 21-107 shall pay an annual business license fee according to Section 21-108 of this chapter. Sec. 21-111. Reserved. Sec. 21-112. Trucking and hauling; transportation of property; delivering or carrying of goods, wares or merchandise; occasional and incidental activity; e~emptions and exceptions. (a) Transportation of Property. Every person whose business is that of operator of any vehicle used for the transportation of property for hire or compensation, and who in the course of that business uses the public streets and highways within the city to receive or discharge, pick u~ or deliver property within the city, shall pay a business t~x of fifty dollars ($50.00) per year for each such vehicle. (b) Delivering or Carrying of Goods, Wares or Merchandise. Every person who uses any vehicle over the public streets and highways of the city to receive or discharge property, or for delivering or carrying goods, wares or merchandise sold, let or handled by him in the course of this business within the city, and who is not otherwise specifically taxed by other provisions of this chapter, shall pay a business tax of fifty dollars ($50.00) per year for each such vehicle. (c) Occasional and Incidental Activity. The provisions of this section shall not apply to persons operating such vehicles within the city on an occasional and incidental basis. For the purpose of this section, "occasional in incidental" is defined to be the doing or performing of not more than three incidents or acts as specified in this section in any one-year period. (d) Exemptions and Exceptions. The business tax imposed under the provisions of this section shall not apply to any person who is subject to tax under the Highway Carrier's Uniform Business License Tax Act, commencing with Section 4301 of the California Public Utilities Code; nor shall the provisions of this section - 62 - 163 apply to the operation of any vehicle operated exclusively in interstate commerce. Sec. 21-113. Telephone services. Every person engaged in the business of providing telephone services shall pay an annual business fee according to Section 21-119(2) of this chapter. For the purpose of this section, "gross receipts" shall have the same meaning as in Section 21-3, except that only those receipts derived from providing telephone services within the city shall be included, and further excepting that only receipts resulting from intrastate telephone services shall be included. Sec. 21-114. Professional Services. Every person engaged in the business services shall be taxed upon the basis engaged or employed in such business, following schedule: of providing professional of the number of persons in accordance with the (a) Each practicing professional principal, whether as owner and/or sole practitioner, or as partner, or officer, or as professional shareholder - one hundred dollars ($100.00); (b) Each additional person engaged or employed, either as professional independent contractor rendering professional services pursuant to a contract of employment, or whether as salaried professional employee engaged in rendering professional services fifty dollars ($50.00); (c) Each additional person engaged or employed otherwise - ($10.00). For the purpose of this section, the phrase "each practicing professional principal" shall be deemed and is declared to mean the maximum number of persons engaged in rendering professional services (other than salaried employees or independent contractors engaging their services pursuant to a contract of employment and not otherwise sharing in the profits of the business) and shall be computed based upon the maximum number of practicing principals engaged in rendering professional services for any one-day period during any part of the preceding business license period. For the purpose of this section, the phrase "each additional person engaged or employed" shall be deemed and is declared to mean the average number of persons, whether licensed practitioners employed or otherwise engaged in rendering professional services, and not otherwise sharing in the profits of the business, or whether any other category of person, directly or indirectly paid for their service and not otherwise - 63 - sharing in the profits of the business for any one-day period during any part of the preceding business license period. For the purpose of determining the average number of persons engaged or employed, the person subject to the tax shall add together the number of persons engaged or employed for any one day period during each month of the preceding license period and divide said sum by the number of months in that period, counting as whole any fraction thereof. Provided, however, that part-time employees engaged or employed in the business one-half the time or less of the regular work period shall not be so included. In the case of an application for au original license, applicant shall state both the maximum number of practicing professionals engaged or intended to be engaged in rendering professional services and the average number of persons engaged or employed or intended to be engaged or employed to assist in the conduct of applicant's business. Thereafter, the license tax provided for herein shall be based solely upon the here inabove set forth method of computation. Sec. 21-115. Same - Keeping or records; applicability of audit. Section 21-80 shall apply to all statements provided to be filed under this section; provided however, that inspection of books and records shall be limited specifically to those books and records reflecting the employees and other persons engaged the business activity. - 64 - ARTICLE X. RATES AND SCHEDULES Sec. 21-116. Applicability of article. The tax for any license required by any section of this chapter shall be set forth in this article for the particular business involved. The tax and the duration of the license shall be annual, quarterly, monthly, and daily as indicated in this article. The letter "A" following the tax shall indicate an annual rate; the letter "Q" shall indicate a quarterly rate; the letter "M" shall indicate a monthly rate; the letter "D" shall indicate a daily rate. Sec. 21-117. New business license tax. (a) A license tax for a new business shall be paid in advance, or a deposit taken in lieu thereof prior to any new business activity being undertaken. (b) All new businesses for whom flat fees are made the basis for fixing the amount of such license shall pay in advance an amount equal to one-twelfth (1/12) of the annual fee therefor for each month and fraction of a month remaining during the period for which the new license is issued, except as otherwise spec ified hereinafter. (c) All new businesses for whom the gross receipts of such business is made the basis for fixing the amount of such license shall pay their annual fee based on actual gross receipts received during the period for which the new license is issued. For any business which is commenced subsequent to January thirty- first, the renewal fee shall be based upon an annual ization of the actual gross receipts received during the period for which the new license ~ issued. In the event applicant fails to submit a report of the actual gross receipts received pursuant to Section 21-78, the fee shall be based on the Collector's estimate of the actual gross receipts received pursuant to Section 21-79. In lieu of payment in advance, each applicant shall post a deposit in the amount hereinafter indicated. (1) All new businesses beginning business on or after January first of the current year but before February first of the current year shall post a deposit of two hundred ($200.00) dollars. (2) All new businesses beginning business on or after November first of the current year but before January first of following year shall post a deposit equivalent to one and one-sixth (1-1/6) of the required deposit for all new businesses beginning January first. ,165 - 65 - (3) All new businesses beginning business on or after February fLrst of the current year shall post a deposit equivalent to one-twelfth (1/12) of the required deposit for all new businesses beginning business January first for each month and fraction of a month remaining during the period for which the new license is issued. Where applicant's fee is determined to be in excess of the amount of the specified deposit, said deficiency shall be added without interest or penalty to the amount of applicant's renewal fee as calculated pursuant to Sections 21-78 or 21-79. Where applicant ceases to transact and carry on the business licensed on or before the expiration of the period for which the new license is issued, and where applicant's fee is determined to be in excess of the amount of the specified deposit, applicant shall remain liable for said deficiency which shall be deemed due and collectible at the same time and in the same matter as all other annual gross receipts fees due and payable upon renewal. Where applicant's fee is determined to be less than the amount of the s ecified deposit, said surplus shall be applied without interestPas a credit against the amount of applicant's renewal fee as calculated pursuant to Sections 21-78 or 21-79. Where applicant ceases to. transact and carry on the business licensed on or before the expiration of the period for which the new license is issued, and where applicant's fee is determined to be less than the amount of the specified deposit, said surplus may be requested by applicant as a refund. Provided, however, that such request must be made in writing and must be made within one (1) year of the expiration of the initial license period. (d) Notwithstanding subsection (b) above, unless an adjustment is obtained pursuant to this chapter, the minimum to this section shall be ten dollars ($10.00) per or exemption tax pursuant year. Sec. 21-118. Same; nonresident businesses. (a) Ail new businesses located elsewhere, excluding businesses engaged in erecting, maintaining and selling of advertising space on off-premise commercial advertising signs in the city or engaged in the operation of coin-operated machines or devices, or engaged otherwise in vending operations, but transacting and carrying on business in the city, and for whom flat rates are made the bas is for fixing the amount of such license, shall have the option of paying the flat rate amount, or basing the amount of their tax upon five tenths of one percent (.5%) of their attributable gross receipts, to which no minimum tax amount shall be added, but for which a two hundred dollar ($200.00) annual deposit shall be required to offset any tax due should applicant cease operation before the expiration of the license term. Provided further, that all such businesses who so elect, shall pay in advance an amount therefor as set forth in (b)~below. Said 66 - --167 deposit to be applied as a credit, or to be taken as a refund in the same manner as is set forth in Section 117, subsection (c). (b) All new businesses located elsewhere, but transacting and carrying on business in the city for whom gross receipts are made the basis for fixing the amount of such license, shall have the option of basing their tax upon attributable gross receipts in a manner similar to that of all other similarly classified businesses for whom gross receipts are made the basis for fixing the amount of their license, or paying an annual flat rate fee of two hundred dollars ($200.00). Except, however, that where the applicant elects to choose attributable gross receipts as the basis for fixing the amount of applicant's fee, an annual deposit of two hundred dollars ($200.00) shall be required to offset any tax due should applicant cease business before the expiration of the license term. Provided further, that all such new businesses howsoever they elect, shall pay in advance an amount equal to one-quarter (1/4) of the annual amount therefor for each quarter and fraction of a quarter remaining during the period for which the new license is issued. Said deposit to be applied as a credit, or to be taken as a refund in the same manner as is set forth in Section 21-117, subsection (c). (c) Unless an adjustment of exemption is obtained pursuant to this chapter, the minimum tax pursuant to this section shall be ten dollars ($10.00) per year. Sec. 21-119. Gross receipts tax rates. Gross receipts tax rates for the different classifications are as follows: (!) Classification "A" - Ail businesses for which no tax is specified elsewhere in this article, including, but not limited to: retail businesses and sales at retail, services (including real estate brokers, real estate developers, insurance brokers, life and disability insurance analysts, stock and bond brokers, commission agents, brokers or merchants, building and loans, and recreational services), rental of nonresidential real estate, hotels, motels, theaters, and food establishments: Annually, a basic rate of $60.00, plus $0.50 per $1,000.00 to . $ 100,000.00 0.30 per $1,000.00 to . $ 500,000.00 0.20 per $1,000.00 to · $ 1,000,000.00 0.15 per $1,000.00 over . $ 1,000,000.00 (2) Classification "B" - Manufacturing, processing, wholesale businesses and sales at wholesale, sales of gasoline and motor fuels, and telephone services: - 67 - Annually, a basic rate of $60.00, plus $0.30 per $1,000.00 to 0.25 per $1,000.00 to 0.20 per $1,000.00 to 0.15 per $1,000.00 to 0.10 per $1,000.00 over $ 100,000.00 $ 300,000.00 $ 600,000.00 $ 1,000,000.00 $ 2,000,000.00 (3) Classification "C" - Junk yards, automobile wrecking yards and salvage yards; junk dealers, junk collectors, and junk recyclers: automobile dismantlers, junk salvagers, Annually, a basic rate of $100.00, plus ,000.00 to ,000.00 to . ,000.00 to . ,000.00 over · $0.50 per $1 0.30 per $1 0.20 per $1 0.15 per $1 Sec. 21-120. Flat rate tax schedules. $ 100,000.00 $ 500,000.00 $ 1,000,000.00 $ 1,000,000.00 Flat rate taxes are as set forth in Section 21-120a through 21- 120z of this article. Sec. 21-120a. Advertising services, ambulance companies, amusement services, auctioneers. (1) ADVERTISING SERVICE: (a) Distributing samples or posting bills (b) Using vehicle containing loudspeakers . (c) Usin~ amplifie~ or loudspeakers to advertise userYs own bus~ness only · · · $ 100.00 A $ 100.00 A $ 35.00 A (2) AMBULANCE COMPANY: 1 or 2 vehicles 3 or more vehicles $ 100.00 A $ 300.00 A (3) (a) AMUSEMENT SERVICES: Amusement center (a location where mechanical devices or animals are maintained for furnishing rides or entertainment and which may also include vending stands): (i) Temporary Amusement Center (10 days or less), per ride/stand . . $ 25.00 D Other: (ii) Base rate $ 250.00 M Plus, for ;agh'r d; gr'vgn i;g's and in excess of 10 $ 25.00 Q (b) Boxing or wrestling exhibitions $ 5O.00 D - 68 - - 169 Carnival, circuses, tent shows and open air shows seating not more than 4,000 persohs: First day $ 100.00 D Each additional day ~ ~ $ 50.00 D (d) Carnival, circuses, tent shows and open air shows seating more than 4,000 persons: First day $ 250.00 D Each additional $ 50.00 O (4) AUCTIONEER $ 350.00 A or $ 50.00 D Sec. 21-120b. "Bankrupt," "Closing out," "Fire" or "Wreck" sales; barbershops and beauty parlors; building-tradesmen, bus and taxi companies· (1) "BANKRUPT," "CLOSING OUT," "FIRE" OR "WRECK" SALES Any person who has a license issued under this chapter continuously for one year prior to the sale, if the sale is conducted on the place of business covered by the license, and if the sale is limited to merchandise then on hand in said place of business and lasts no longer than thirty (30) day; provided such person so certifies to the Collector prior to such sale there shall be no additional fee. Otherwise .' · $ 200.00 M (2) BARBERSHOP or BEAUTY PARLOR, Per owner operator Per non-owner operator · $ 60.00 A · $ 35.00 A (3) BUILDING TRADESMEN, per individual $ 35.00 A (4) BUS or TAXI COMPANY, per vehicle $ 100.00 A Sec. 21-120c. Catering trucks, christmas tree and pumpkin lots, contractors. (1) CATERING TRUCKS, per vehicle $ 100.00 A (2) CHRISTMAS TREE LOTS, per lot $ 100.00 A (3) PUMPKIN PATCH LOTS, per lot $ 100.00 A (4) CONTRACTOR - GENERAL CONTRACTOR, prorated quarterly per contractor $ 120.00 A (5) CONTRACTOR - SPECIALITY and SUBCONTRACTOR, prorated quarterly per contractor . . $ 110.00 A - 69 Sec. 21-120d. Dances, dance halls, (1) DANCE HALL, PUBLIC (2) DANCING PLACE, PUBLIC (3) DANCE, PUBLIC, per dance (4) DAY NURSERY · day nurseries. 200.00 A 100.00 A 25.00 D 35.OO A Sec. 21-120e. Reserved. Sec. 21-120f. Firework stand. FIREWORK STAND, per stand · Sec. 21-120g. Gardeners or lawn maintenance workers. GARDENERS OR LAWN MAINTENANCE WORKER, per individual Sec. 21-120h. Reserved. Sec. 21-120i. Independent contractors, itinerant merchants, $ 100.00 insurance sol ic itor. (1) INDEPENDENT CONTRACTOR, per individual (2) ITINERANT MERCHANT (3) INSURANCE SOLICITOR, per solicitor $ 35.00 A $ 35.00 A $ 100.00 Q $ 35.00 A Sec, 21-120j. Janitorial and building maintenance services. JANITORS AND BUILDING MAINTENANCE WORKERS, per individual Sec. 21-120k 21-120o. Reserved. Sec. 21-120p. Pawnbrokers, peddlers. $ 35.00 A (1) PAWNBROKER $ 400.00 A (2) PEDDLER, per peddler as principal $ 100.00 A or $ 10.00 D (3) PEDDLER, per peddler as independent contractor. $ 35.00 A (4) PRINCIPAL'S PEDDLEK'S LICENSE $ 200.00 A per each employee peddling in the city $ 10.00 A Sec. 21-120q. Reserved. - 70 - Sec. 21-120r. (1) (2) Sec. Real estate agents, rental of residential real estate: residential property rental; residential apartment rental; rooming house rental; residential mobile home property rental. REAL ESTATE AGENT, per agent RESIDENTIAL PROPERTY RENTAL UNIT, per property rental unit (3) RESIDENTIAL APARTMENT RENTAL UNITS, $ 35.00 A 1 to 5 rental units Each additional rental unit over 5 (4) ROOMING HOUSE RENTAL UNITS, 1 to 5 rental units Each additional rental unit over 5 (5) RESIDENTIAL MOBILE HOME PROPERTY RENTAL UNIT, 1 to 5 rental unit spaces Each additional rental unit space 21-120s. Sharpening services; shoeshine stands, (1) SHARPENING SERVICE (2) SHOESHINE STAND, per operator (3) SOLICITOR, per solicitor as principal . $ 25.00 A · $ 25.00 A · $ 5.00A . $ 25.00 A · $ 5.00 A $ 25.00 A $ 5.00 A sol ic itors. $ 35.00 A $ 15.00 A $ 100.00 A (~) SOLICITOR, per solicitor as independent contractor · $ 35.00 A (5) PRINCIPAL'S SOLICITOR'S LICENSE Per each employee engaged in soliciting city Sec. 21-120t. Theatrical performance; delivery. (1) THEATRICAL PERFORMANCE (2) TRUCKING AND GENERAL DELIVERY, Sec. 21-120u. Reserved. in the $ 200.00 A $ 10.00 A trucking and general per vehicle $ 50.00 A $ 50.00 A - 71 Sec. 21-120v. Vending and coin-operated machines. COIN-OPERATED MACHINES OK DEVICES: (i) (2) Per $0.10 device and over Per $0.05 device and under, First machine . Per additional device $ 20.00 A $ 10.00 A $ 5.00 A Sec. 21-120w. Warehouses, watchmen and private police. (1) WAREHOUSE $ 100.00 A (2) WATCHMEN or PRIVATE POLICEMEN, per individual . $ 35.00 A Sec. 21-121. Adjustment for Inflation/Deflation. Each tax, including each of its components, and any specified deposit amount required in lieu thereof, together with any other charges which are imposed pursuant to this Chapter, shall be automatically adjusted on November 1, 1988, and on November 1 of each year thereafter, upward or downward, equivalent to the most recent change in the annual average of the Consumer Price Index as Published by the United States Department of Labor for the Los Angeles-Long Beach-Anaheim metropolitan area. For purposes of calculating the annual inflator/deflator factor under this section the base year shall be that year ending with the quarter ending June 30, 1987. Rates shall first be adjusted on November 1, 1988, and thereafter, based on the annually calculated change from the base year. Said change shall be rounded off to the nearest whole percent per hundred as follows: If the remaining fraction of a percent is forth-nine one- hundredths of a percent or less such fraction shall be omitted. If the remaining fraction of a percent is fifty one-hundredths of a percent or more, the next highest percent shall be applied.. A similar method of computation shall be used in the application of the annual inflator/deflator factor to the amount of each flat fee, deposit or other charge required pursuant to this chapter, which amount shall be rounded off to the nearest dollar. - 72 - - 173 SECTION 2: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for amy reason held to be invalid or unconstitutional by the decision of any court or competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. SECTION 3: Neither the adoption of this Ordinance nor the repeal hereby of any ordinance shall in any manner affect the prosecution for violation of ordinances, which violations were committed prior to the effective date hereof, nor be construed as affecting any of the provisions of such ordinance relating to the collection of any such license or penalty or the penal provision applicable to any cash deposit in lieu thereof, required to be posted, filed or deposit pursuant to any ordinance and all rights and obligations thereunder appertaining shall continue in full force and effect. ADOPTED this 20th day of July , 1987. ATTEST: C~l~eo~ ' t~eUYcou/~ ~'I~H. Yo Mayor ~ COUNCILMEMBERS: Young ~¥e Acosta Aye Gr is et Aye Hart Aye May Aye McGu igan Aye Pul ldo Absent APPROVED AS TO FORM: Edw ar h~'g3~ Coo~er City Atto~ - 73 -