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Business License Ordinances

ARTICLE V. BUSINESS LICENSES

DIVISION 1. PURPOSE AND DEFINITIONS

Sec. 32.101. PURPOSE OF ARTICLE:

The purpose of this Article is to provide for the establishment and levying of license taxes for the transaction and carrying on of certain businesses, trades, professions, callings and occupations in the City. This Article is enacted solely to raise revenues for municipal purposes and is not intended for regulation. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.102. DEFINITIONS:

As used in this Article, the following definitions shall apply:

APPLICANT: An applicant for a business tax license pursuant to this Article, including a renewal thereof.

AVERAGE NUMBER OF PERSONS EMPLOYED:

A. The number of employees as herein defined employed monthly within the City earning wages for the periods nearest the fifteenth day of each month during the previous year as reported by the applicant to the State Department of Employment on forms which are used for reporting payments due under the Unemployment Insurance Act of the State of California for each month of the previous calendar year, adding the same and dividing by twelve (12) and adding to the result thereof the number of employees compensated by other than wages engaged in the business. If the applicant has been in business less than one year, the average number of employees shall be the number of employees determined as described above divided by the number of months remaining in the calendar year for which such calculation is made.

B. Alternatively to the definition in A above and at the option of the applicant, the average number of persons employed by the applicant for such license daily for one year determined by ascertaining the total number of hours of service performed by all employees in the City during the previous year and dividing the total number of hours of service thus obtained by the number of hours of service constituting a year's work of one full-time employee according to the custom or laws governing such employment and adding to the result thereof the number of owners, partners or other principals, salespersons or agents employed irrespective of the number of hours of service provided by such employees. Hours of service as used in this definition shall include all paid holidays, sick leave, vacations and any other days for which compensation is paid irrespective of whether work is performed therefor. As a condition to the optional use of the foregoing definition, the applicant shall provide all business records or other documentation related to the calculation aforesaid required by the Director.

BUSINESS: Trades, occupations, professions, and services of all and every kind of calling whether or not carried on for profit, including but not limited to retailing, wholesaling, manufacturing, service purveying, warehousing, personal and real property rentals and growing of plants and crops and animal husbandry for market.

COIN-OPERATED DEVICES ACTIVITY: The activity of managing, distributing, leasing or purveying coin-operated vending machines, amusement devices or facilities.

COMMERCIAL ADVERTISING: The business carried on at a fixed location or locations in the City of selling or taking orders for or offering to sell or take orders for or preparing or printing or otherwise producing advertising copy, billboards, placards, banners or other visual objects (excluding films, videotapes or other electronic production media) for promoting the sale of products or otherwise advertising.

COMMERCIAL ADVERTISING VEHICLE OPERATION: The business of operating a vehicle (of any kind nature, except devices moved by human power or used exclusively upon stationary rails or tracks) equipped with loudspeakers, musical devices, signs, placards, billboards, searchlights or other attention-getting devices for advertising purposes upon a public street, highway or other right-of-way.

CONTRACTOR: Any contractor or subcontractor as defined in chapter 9 of division 3 (commencing with section 7000) of the Business and Professions Code of the State of California or, alternatively, as defined in the Rules and Regulations of the Contractor's State License Board enacted pursuant to section 7008 of said Code. For the purposes of this Article, any person engaged in activities similar to that of a contractor or subcontractor shall be deemed a contractor irrespective of whether said person is licensed as such by the State or other licensing agency.

DIRECTOR: The Director of Finance of the City or his or her designee.

EMPLOYEE: All persons engaged in the operation or conduct of any business whether as owner, any member of an owner's family, partner, agent, manager, solicitor and any and all other persons employed or working in or associated with said business whether or not any salary or other compensation or remuneration is paid for such work. Employee as used herein includes employees (as defined above) of subcontractors, licensees or other persons engaged in the business for which a license hereunder is issued unless such subcontractors, licensees or other persons are licensed hereunder for the businesses in which they are engaged or which they conduct. Employee shall not include persons employed on a seasonal or periodic basis for less than one month or on a part-time basis for two (2) months or less.

FIXED PLACE OF BUSINESS: The premises occupied in the City for the particular purpose of conducting a business thereat and regularly kept open for that purpose.

ITINERANT VENDOR: Any person, both principal and agent, engaged in a temporary and transient business in the City selling goods, wares and merchandise and who (for the purpose of carrying on such business) hires, leases or occupies any room, building or structure for the exhibition or sale of such goods, wares or merchandise or from which room, building or structure the sales shall be made or business solicited by means of samples or deliveries from house to house irrespective of whether such person associates temporarily with any local dealer, trader, merchant or auctioneer or 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 auctioneer.

JUNK COLLECTOR: Any person engaged in the business of receiving, soliciting or otherwise obtaining used personal property for the purpose of selling, taking orders for or offering to sell parts or portions of said personal property after disassembly thereof.

MANUFACTURER: Any person engaged in the business of manufacturing, fabricating or processing any materials (raw or partly wrought) into goods, wares or merchandise or assembling or packaging any manufactured or processed material whether such manufactured or processed goods are sold or distributed to wholesalers, brokers or other channels for the purpose of resale.

NEWLY ESTABLISHED BUSINESS: A business in existence and operation for less than three (3) months.

NONRESIDENTIAL PROPERTY RENTAL: The business of renting or letting a building or structure of any kind or portions or areas thereof, including warehouses, ministorage facilities, industrial, commercial and office buildings of properties to a tenant or tenants for purposes other than residential dwelling, sleeping or lodging.

PEDDLER: Any person not having a regularly established place of business in the City who travels from place to place or has a stand upon any public street, alley or other public place, doorway of any building, unenclosed or vacant lot or parcel of land who sells or offers for sale any goods, wares or merchandise in his possession.

PERSON: Any individual person, corporation, partnership, association or other organizational form used for carrying on any business.

PROCESSOR: Any person engaged in the business of converting an article, substance or commodity into marketable form for the purpose of resale by changing its physical or chemical composition.

PROFESSION: Any profession, vocation or calling, the qualifications for which generally require an extended period or periods of specialized training and the issuance of an advanced educational degree or certificate and the performance of which requires licensing or certification or other official recognition. The term professional person as used in this Article shall include but is not limited to the following:

      Architect.

      Attorney at law.

      Certified public accountant.

      Chiropractor.

      Dentist.

      Geologist.

      Medical practitioner.

      Optician.

      Optometrist.

      Oral surgeon.

      Osteopath.

      Physician.

      Podiatrist.

      Professional engineer (including but not limited to civil, chemical, mechanical and electrical engineers).

      Public accountant.

      Surgeon.

      Veterinarian.

RESIDENTIAL PROPERTY RENTAL: The business of managing, operating or renting any apartment house, duplex, hotel, motel, mobile home park, rooming or boardinghouse with two (2) or more residential units. For purposes hereof, the number of residential units aforesaid shall exclude that unit, if any, occupied by the applicant; provided, however, that the management, operation or rental of three (3) or less residential units shall not be deemed a residential property rental for purposes of this Article.

SOLICITOR/HAWKER: Any person engaged in the business of going from house to house, place to place or in or along the streets within the City selling or taking orders for or offering to sell or take orders for goods, wares, merchandise, advertising or any other thing of value for future delivery or for services to be performed in the future.

WHOLESALER: Any person engaged in the business of selling or soliciting the sale of goods, wares, merchandise or services for the purpose of resale and/or who sells in wholesale lots at wholesale prices. (Ord. No. 2016, 2, 5-7-90)

Secs. 32.103, 32.104. RESERVED:

DIVISION 2. LICENSES

Sec. 32.105. REQUIRED:

There are hereby imposed upon the businesses, trades, professions, callings and occupations specified in this Article license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person to transact or carry on any business, trade, profession, calling or occupation in the City without first having obtained a license from the Director so to do or without complying with any and all applicable provisions of this Article. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.106. CONTENTS:

All licenses shall be prepared and issued by the Director upon payment of the sum to be paid therefor, and each license so issued shall state upon the face thereof the following:

A. The name of the person to whom the license is issued.

B. The kind of business licensed thereby.

C. The location of the business licensed thereby.

D. The date of expiration of the license.

E. The license number.

F. Such additional information as the Director shall determine to be appropriate for inclusion on the face of the license. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.107. WHEN TAXES DUE AND PAYABLE:

All license taxes due hereunder shall be paid in advance in the lawful money of the United States at the office of the Director. All license taxes due hereunder shall be due and payable and delinquent as follows:

A. General: Except as provided in subdivision B hereinafter, all license taxes shall be due and payable on or before the first day of the period for which the license is issued and shall become delinquent thirty (30) calendar days thereafter.

B. Daily, Weekly, Monthly Period: All license taxes issued for a daily, weekly or monthly period shall be payable in advance of the commencement of business of the business specified therein and shall be delinquent upon commencement of such business. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.108. PENALTY FOR DELINQUENT TAXES:

To all delinquent license taxes there shall be added a penalty of ten percent (10%) of the amount of the tax due plus an additional ten percent (10%) for each month delinquent thereafter providing that the amount of any penalty shall in no event exceed one hundred percent (100%) of the amount of the license tax due. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.109. PRORATION OF TAX PROHIBITED; EXCEPTION:

No proration of any license tax due hereunder shall be made for any portion of the period for which a license tax is payable; except that for a license issued for a business which shall commence after September 30 of any year, the total license tax calculated in accordance with Section 32.146 or 32.147, as applicable, shall be reduced by one-quarter (1/4). For businesses commencing after March 31 of any year the total license tax calculated in accordance with Section 32.146 or 32.147, as applicable, shall be reduced by three-quarters (3/4). (Ord. No. 2016, 2, 5-7-90; Ord. No. 2089, 2, 5-8-95)

Sec. 32.110. EXCESS DELINQUENCIES:

Notwithstanding the provisions of Section 32.108, any person who has conducted or operated a business prior to the commencement of the current fiscal year (described) hereinafter in Section 32.111 for which a business license tax is due and payable without payment of the business license tax due and payable for each such prior fiscal year shall pay a business license tax for such prior year or years plus a penalty of one hundred fifty dollars ($150.00) for each prior fiscal year during which such business had been operated or conducted without payment of the business license tax then payable. The foregoing delinquency payments shall be applicable irrespective of whether such person has conducted or operated the business for which the license tax had not been paid at the same or a different location. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.111. LICENSE TERM:

Business license taxes payable pursuant to this Article shall be payable on a fiscal year basis (commencing July 1 of any one year and expiring June 30 the next following year) such that, irrespective of the date of issuance of the business license for which a license tax is payable, said license shall expire at twelve o'clock (12:00) midnight on June 30 of the fiscal year for which the business license is issued. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.112. SEPARATE LICENSE FOR BRANCH ESTABLISHMENTS; EXCEPTION:

Separate licenses shall be obtained for each branch establishment or location of the business engaged in as if each such branch establishment or location were a separate business, and each license shall authorize the licensee to engage only in the business licensed thereby at the location or in the manner designated in such license; provided that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this Article shall not be deemed to be separate places of business or branch establishments. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.113. MULTIPLE BUSINESSES AT ONE LOCATION:

If a person engages in two (2) or more separate businesses at the same location, such person shall pay a separate and distinct business license tax for each and shall be issued a separate and distinct business license for each such business. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.114. DUPLICATE LICENSES:

Any person who has been issued a business license and who has paid the business license tax therefor and whose license has been lost or destroyed may obtain a duplicate license upon filing an affidavit or declaration under penalty of perjury attesting to such loss or destruction and upon paying to the Director a sum of ten dollars ($10.00). (Ord. 2016, 2, 5-7-90)

Sec. 32.115. NONTRANSFERABILITY:

No business license issued pursuant to this Article shall be transferable between persons or licensees; provided, however, that a license issued to a person for a business conducted at one location may be transferred by that person to another location in the City; provided, further, that the address specified on the business license shall be amended by the Director to reflect the new location. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.116. POSTING:

All licenses must be kept and posted in the following manner:

A. Any licensee transacting and carrying on business at a fixed place of business in the City shall keep the license posted in a conspicuous place upon the premises where such business is carried on.

B. Any licensee transacting and carrying on business but not operating at a fixed place of business in the City shall keep the license upon his person at all times while transacting and carrying on such business.

C. Any licensee to whom a license has been issued, which license is determined by the number of vehicles used by said licensee in the conduct of his business in this City, shall prominently display within each such vehicle a sticker, device, sign or license facsimile provided by the Director for identifying such business. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.117. NONREFUNDABLE:

No business license tax or any portion thereof shall be refundable except in the case of an error in the determination of the amount of the license tax or in the event of double payment for a license. Claims for refunds based on the foregoing reasons must be made within three (3) years of the discovery of such error in calculation or overpayment. (Ord. No. 2016, 2, 5-7-90)

Secs. 32.118, 32.119. RESERVED:

DIVISION 3. ADMINISTRATION

Sec. 32.120. APPLICATION FOR LICENSE˙SUBMISSION; CONTENTS:

Every person required to have a license under the provisions of this Article shall apply for the same to the Director. Such application shall be made upon a form provided by the Director and shall be written by the applicant under penalty of perjury or sworn to by the applicant before a person authorized to administer oaths. The application shall set forth such information as may be required by the Director as necessary to determine properly the amount of the license tax to be paid.

If the amount of the license tax to be paid by the applicant is based upon the average number of employees, such application shall set forth the average number of employees for the applicable period. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.121. APPLICATION FOR LICENSE RENEWALS:

Every person required to have a business license who had been issued a business license effective during a fiscal year shall apply for a renewal thereof for the ensuing fiscal year and shall submit with such application an affidavit or declaration under penalty of perjury on a form provided by the Director, setting such information concerning the type of applicant's business and the number of employees engaged therein during the preceding year and such other information as may be required by the Director for calculation of the amount of the license tax payable for the ensuing fiscal year or portion thereof for which the application is made. A new business license tax shall be issued for each such renewal for the payment of the tax as specified in this Article in a form approved by the Director. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.122. VERIFICATION:

No statements submitted pursuant to this Article shall be conclusive upon the Director as to the matter set forth therein, nor shall the filing of the same preclude the Director from collecting by appropriate action such sum or sums as may actually be due and payable hereunder. Each such statement and each of the several items therein contained shall be subject to audit and verification by the Director who is hereby authorized to examine, audit and inspect such books and records of any licensee or applicant for a license as may be necessary in the Director's judgment to verify or ascertain the amount of the business license tax or taxes, penalties or other delinquent charges due and payable. All licensees, applicants and persons engaged in business in the City are hereby required to permit an examination, audit or inspection of such books and records for the purposes aforesaid. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.123. COMPUTATION OF TAX BY DIRECTOR UPON FAILURE OF LICENSEE TO FILE REQUIRED OR CORRECTED STATEMENT:

If any person fails to file any required statement within the time prescribed, or if, after demand therefor has been made by the Director, such person fails to file a corrected statement within fifteen (15) days after notification so to do, or it appears to the satisfaction of the Director that a statement filed does not set forth the true facts of the business for which a license is required, the Director shall determine the amount of license tax due from such person by means of such information as the Director may be able to obtain.

In case such determination is made, the Director shall give written notice of the amount so assessed by personal service or by depositing it with the U.S. Postal Service, postage prepaid, at Redwood City, California, addressed to the person so assessed at the address appearing on said person's last license or application. Such person may, within ten (10) days after the serving or mailing of such notice, apply in writing to the Director for a hearing on the amount of the license tax. If such application is made, the Director shall give not less than five (5) days' written notice in the manner prescribed herein to the licensee to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed as the license tax. At such hearing, the licensee may appear and offer evidence why such specified tax should not be fixed as the license tax. After such hearing, the Director shall determine the proper tax to be charged and shall forthwith give written notice to the licensee in the manner prescribed herein of such determination and the amount of such tax.

If application by the licensee for a hearing is not made within the time prescribed, the license tax determined by the Director shall become final and conclusive. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.124. APPEALS BY AGGRIEVED PERSONS:

Any person aggrieved by any decision of the Director with respect to the issuance of or refusal to issue a license or the amount of a license tax may appeal such decision to the Council by filing a notice of appeal with the City Clerk within fifteen (15) days of such decision. The City Clerk shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such person of the time and place of hearing by personal service or by depositing it with the U.S. Postal Service, postage prepaid, at Redwood City, California, addressed to such person at the address appearing on said person's last license or application. The findings of the Council shall be final and conclusive and shall be served upon the applicant in the manner prescribed above for service of notice of the hearing.

The amount of any license tax finally determined as provided in this Section or Section 32.123 shall be due and payable as of the date the original license tax was due and payable together with any penalties that may be due thereon; provided, however, if the amount of such license tax shall be fixed in accordance with the original statement of the applicant, then no penalty shall attach by reason of any delinquency. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.125. CONFIDENTIALLY:

All business records, operations or information obtained by the Director pursuant to an investigation of records, books or property of a business tax licensee or applicant shall, insofar as consistent with the California Public Records Act (Govt. C. section 6250 et seq.), be deemed confidential; and the Director shall not disclose to the public or any member thereof the contents of such records, books or other information obtained by the Director which relates to the sources or amount of income, profit, losses or expenditures by any such person engaged in such business or any particular thereof except as may be permitted by the applicant, licensee or person required to pay such tax. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.126. OATHS:

For the purposes of this Article, the Director is empowered to administer oaths. (Ord. No. 2016, 2, 5-7-90)

Secs. 32.127˙32.129. RESERVED:

DIVISION 4. EXEMPTIONS AND EXCLUSIONS

Sec. 32.130. CONSTITUTIONAL, STATUTORY EXEMPTIONS:

Nothing contained in this Article shall be deemed or construed to require the payment of any business license tax prescribed in this Article by any person transacting, engaging in or carrying on any business which is exempt from the payment of such taxes under the Constitution or statutes of the State of California. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.131. CHARITABLE ORGANIZATIONS:

Nothing contained in this Article shall be deemed or construed to require the payment of any of business license tax prescribed in this Article by any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes and from which profit is not derived either directly or indirectly by any person. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.132. DISABLED VETERANS:

Nothing contained in this Article shall be deemed or construed to require the payment of any business license tax prescribed in this Article by any person who is an honorably discharged or released veteran specified in section 16001 of the Business and Professions Code of the State, as said section may from time to time be amended, who is physically unable to earn a livelihood by manual labor and who is a voter of this State and who desires to hawk, peddle or vend goods, wares or merchandise owned by the veteran or to distribute circulars. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.133. CARE FACILITIES:

Nothing contained in this Article shall be deemed or construed to require the payment of any business license tax prescribed in this Article by any person engaged in or conducting the business of child care for eight (8) or less and adult care for six (6) or less persons. (Ord. No. 2320, 11-5-07)

Sec. 32.134. HOME OCCUPATIONS:

Nothing contained in this Article shall be deemed or construed to require the payment of any business license tax prescribed in this Article by any person who is engaged in a home occupation conducted at the residence of said person in the City, the gross receipts from the operation of which are less than one thousand dollars ($1,000.00) per year. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.135. PUBLIC UTILITY:

Nothing contained in this Article shall be deemed or construed to require the payment of any business license tax prescribed in this Article by any public utility possessing a franchise granted by the City pursuant to which franchise said public utility pays to the City an annual franchise fee or otherwise makes annual payments to the City for the privilege in said franchise specified. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.136. RECREATION INSTRUCTORS:

Nothing contained in this Article shall be deemed or construed to require the payment of any business license tax prescribed in this Article by any person engaged in the business of recreation instruction or sports officiating for programs or activities conducted or sponsored by the City. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.137. CLAIM FOR EXEMPTION:

Any person claiming an exemption pursuant to this Division shall file an affidavit or declaration under penalty of perjury with the Director stating facts upon which such exemption is claimed and attaching thereto documents in support of such claim. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.138. EXEMPT LICENSE:

Upon a proper showing contained in said affidavit or declaration or attachments, the Director shall issue a license to the person claiming an exemption without payment to the City of the business license tax prescribed in this Article. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.139. REVOCATION:

The Director may revoke any license theretofore issued without payment of a business license tax upon information that said licensee is not entitled to an exemption or is no longer entitled to the exemption upon said license had been issued. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.140. RESERVED:

DIVISION 5. ENFORCEMENT

Sec. 32.141. DIRECTOR TO ENFORCE PROVISIONS OF ARTICLE:

It shall be the duty of the Director to enforce each and all of the provisions of this Article. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.142. TAX AND PENALTY DEEMED DEBT TO CITY:

The amount of any license tax and penalty imposed by the provisions of this Article shall be deemed a debt to the City and any person carrying on any business without first having obtained a license so to do shall be liable to an action in the name of the City in any court of competent jurisdiction for the amount of the license tax and penalties imposed on such business. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.143. ERROR BY CITY NOT TO PREVENT COLLECTION OF DUE AND PAYABLE TAX:

In no case shall any mistake made by the Director in stating the amount of a license tax prevent or prejudice the collection by the City of what shall be actually due from anyone carrying on a business subject to a license tax under this Article. (Ord. No. 2016, 2, 5-7-90

Sec. 32.144. LIABILITY OF PERSONS ENGAGED IN BUSINESS TO PAY TAX:

In any action brought under or arising out of any of the provisions of this Article or of any ordinance imposing a license tax, the fact that a party thereto represented him or herself as engaged in any business or calling for the transaction of which a license is required shall be conclusive evidence of the liability of such party to pay the license tax for such business. (Ord. No. 2016, 2, 5-7-90)

Sec. 32.145. VIOLATION OF ARTICLE DEEMED MISDEMEANOR:

Each and every day or fractional part of a day that the trade, calling, business, profession or occupation specified in this Article is conducted, carried on or engaged in, or the thing done without a license as required by this Article shall constitute a violation of this Article; and any person who shall violate any of the provisions of this Article shall be deemed guilty of an infraction which, upon conviction, shall be punishable as set forth in Section 1.7B of this Code. Conviction hereunder shall not be construed as a waiver of the right of the City to bring a civil action, nor shall the bringing of such civil action release the defendant therein, or any other person, from prosecution pursuant to this Section. (Ord. No. 2016, 2, 5-7-90; Ord. No. 2051, 1, 8-17-92)

Sec. 32.146˙32.150. RESERVED:

DIVISION 6. LICENSE TAXES

Sec. 32.151. TAX IMPOSED:

Every person commencing, engaged in, conducting or carrying on a business within the City shall pay an annual business license tax. The tax consists of two components: a "base tax" calculated pursuant to section 32.152 and an "incremental tax" calculated pursuant to Sections 32.153 and 32.154. Where Section 32.154 indicates "base tax not applicable" with respect to a type of business, only the "incremental tax" is required (Ord. No. 2370, 12-5-11)

Sec. 32.152. BASE TAX:

The annual rate for the base tax is:

$58.00 effective July 1, 2014

(Ord. No. 2370, 12-5-11)

Sec. 32.153. INCREMENTAL TAX RATE:

Except where some other rate is set forth in Section 32.154, the rate for the incremental tax is:

$38.00 per employee, effective July 1, 2014

The number of employees for a business shall be the average number of persons employed, including employees of contractors, subcontractors and professional persons engaged in or to be engaged in such business.

(Ord. No. 2370, 12-5-11)

Sec. 32.154. SPECIAL INCREMENTAL TAX RATES:

The rate for the incremental tax with respect to each type of business listed in this Section shall be:

Business Type Base Tax Unit Tax Amount
Residential property rental

$58

$21 per unit of dwelling space in excess of 3 units
Nonresidential property rental
$58
$21 per 1,000 sq. ft. or fraction
Real estate brokerage
$58
$39 per salesperson or employee
Dance hall operator
$58
$579 flat annual
Vehicle wrecking facility
$58
$579 flat annual
Christmas tree lot sales operation
$58
$579 flat annual
Commercial advertising
$58
$579 flat annual
Fortunetelling
$58
$579 flat annual
Junk collector
$58
$579 flat annual
Pawnbroker
$58
$579 flat annual
Itinerant vendor
$58
$39 per week
Solicitors/hawkers
$58
$39 per day
Peddlers
$58
$39 per person
Curb painters
$58
$21 per day per person
Carnival operator
$58
$482 per day
Coin-operated device activity
$58
$11 per device
Commercial advertising vehicle operation
N/A
$58 per vehicle
Contracting (excluding any contracting business with gross receipts over $50,000.00) business in Redwood City
$58
$39 flat annual

(Ord. No. 2370, 12-5-11)

 	

Sec. 32.155. MAXIMUM TAX:

Notwithstanding anything to the contrary contained in this Article, the annual business license tax payable for any one business shall not exceed:

$4,811 effective July 1, 2014

(Ord. No. 2370, 12-5-11)

Sec. 32.156. AUTOMATIC ADJUSTMENT:

Commencing July 1, 2015 and on each subsequent July 1, each rate set forth in this Division (including the maximum rate set forth in Section 32.155) shall automatically adjust according to the following formula:

[New Rate] = [July 1, 2014 Rate] * [Current CPI]/[2014 CPI]

Where the "CPI" for a year is the Consumer Price index (CPI) for All Urban Consumers for the San Francsico-Oakland-San Jose Areas published by the United States Department of Labor, Bureau of Labor Statistics, for February of that year. In no event shall any rate be reduced below the rate in effect immediately prior to the applicable adjustment. In the event the CPI is no longer published, the City Manager shall select a price index most nearly conforming to the CPI.

(Ord. No. 2370, 12-5-11)

 Secs. 32.157˙32.190. RESERVED:

ARTICLE VI. ADMISSIONS TAXES

Sec. 32.191. PURPOSE OF ARTICLE:

The purpose of this Article is to provide for the establishment and levying of license taxes for carrying on theatrical, amusement and similar entertainment businesses and occupations within the City. (Ord. No. 1313, 3)

Secs. 32.192˙32.499. RESERVED: 

ARTICLE VII. UTILITY USERS TAX

Sec. 32.500. SHORT TITLE:

This Article shall be known as the "Utility Users Tax Ordinance of the City of Redwood City." (Ord. No. 1871, 1, 7-11-83)

Sec. 32.501. DEFINITIONS:

For the purposes of this Article, the following words and phrases shall have the meaning respectively ascribed to them:

BILLING PERIOD: That interval of time, established, administered or used by a service supplier for charging a service user for said service supplier's services, commodity or product with respect to the receipt, use or consumption of which the taxes specified in this Article are imposed.

CABLE TELEVISION CORPORATION, ELECTRICAL CORPORATION, GAS CORPORATION, and TELEPHONE CORPORATION: Have the same meanings as defined in sections 215.5, 218, 222, and 234 respectively, of the Public Utilities Code of the State. "Electrical corporation" shall be construed to include any municipality or franchised agency engaged in the selling or supplying of electrical power to a service user.

DIRECTOR: The Director of Finance of the City, or his or her authorized designee.

MONTH: A calendar month.

PERSON: Any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust, society or individual.

SERVICE SUPPLIER: A person required to collect and remit a tax imposed by the provisions of this Article.

SERVICE USER: A person required to pay a tax imposed by the provisions of this Article. (Ord. No, 1871, 1, 7-11-83)

Sec. 32.502. EXEMPTIONS:

Nothing in this Article shall be construed as imposing a tax upon any person when the imposition of such tax upon said person would be in violation of the Constitution of the United States or the Constitution of the State. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.503. TELEPHONE USERS TAX:

A. There is hereby imposed a tax upon every person in the City using intrastate telephone services in the City. The tax imposed by this Section shall be at the rate of five percent (5%) of the charges made for such services and shall be paid by the person paying for such services.

B. As used in this Section, the term "charges" shall not include 1) charges for services paid for by inserting coins in coin-operated telephones except that where such coin-operated services are furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due; 2) charges for any type of service or equipment furnished by a service supplier subject to public utility regulation during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to public utility regulation. As used in this Section, the term "telephone communication services" shall not be construed to mean land mobile services or maritime mobile services as defined in section 2.1 of title 47 of the Code of Federal Regulations, as said section existed on April 27, 1981. The tax imposed by this Section is intended to, and does, apply to all charges billed to a telephone account having a situs in the City, irrespective of whether a particular communication service originates and/or terminates within the City.

C. Notwithstanding the provisions of subdivision A of this Section, the tax imposed under this Section shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under section 4251 of title 26 of the United States Code as said section existed on December 5, 1980. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.504. ELECTRICITY USERS TAX:

A. There is hereby imposed a tax upon every person in the City using electrical energy services in the City. The tax imposed by this Section shall be at the rate of five percent (5%) of the charges made for such services and shall be paid by the person paying for such services.

B. As used in this Section, the term "charges" shall include amounts paid for 1) metered energy, and 2) required minimum amounts for service, including customer charges, service charges, demand charges, standby charges and annual and monthly charges. As used in this section, the term "electrical energy services" shall not be construed to mean 1) the storage of electrical energy in a battery owned or possessed by a person for use in an automobile or other machinery or device apart from the premises upon which the energy was received, provided however, that said term shall include the receiving of such energy for the purpose of using it in the charging of batteries; or 2) the mere receiving of electrical energy by an electric public utility or governmental agency at a location within the City for resale. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.505. GAS USERS TAX:

A. There is hereby imposed a tax upon every person in the City, other than a gas corporation or electrical corporation, using gas in the City which is delivered through mains or pipes. The tax imposed by this Section shall be at the rate of five percent (5%) of the charges made for such gas and shall be paid by the person paying for such gas.

B. As used in this Section, the term "charges" shall not include charges made for gas which is to be resold and delivered through mains or pipes. As used in this Section, the term "using gas" shall not be construed to mean 1) use of gas in the generation of electrical energy by an electrical corporation; or 2) use of gas by a gas corporation in the production or distribution of gas. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.506. CABLE TELEVISION USERS TAX:

There is hereby imposed a tax upon every person in the City using cable television services in the City. The tax imposed by this Section shall be at the rate of five percent (5%) of the charges made for such services and shall be paid by the person paying for such services. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.507. COLLECTION OF TAXES:

All taxes imposed by the provisions of this Article shall be collected from the service user by the service supplier who or which receives payment from such service user for the services, commodity, or product with respect to the receipt, use, or consumption of which said taxes are imposed. The amount of tax collected in each billing period pertaining to each service user shall be remitted to the Director on or before the last day of the month next following said billing period. The duty of the service supplier to collect and remit the taxes imposed by the provisions of this Article shall be performed as follows:

A. The tax shall be collected, insofar as practicable, concurrently and together with the charges made in accordance with standard billing practices of the service supplier. In the event the amount paid by a service user to a service supplier is less than the sum of the charge and tax which has accrued for any billing period, the amount so paid shall be deemed to have been allocated proportionately between such charge and tax unless 1) the amount so paid is equal to the amount of the charge, or 2) the service user has notified the service supplier of his or her refusal to pay the tax imposed pursuant to the provisions of this Article, in which latter two (2) events, the amount paid shall be deemed to be solely for the charge.

B. Concurrently with each remittance of taxes collected pursuant to the provisions of this Article, every service supplier shall file with the Director a report, (on forms provided or approved by the Director) stating the amount of taxes billed and collected for the billing period or periods to which the remittance pertains, delinquencies in the payment of any tax, and such other information as the Director reasonably may require.

C. The duty to collect the tax from a service user shall commence with the beginning of the first billing period applicable to said service user which starts on or after the operative date of Ordinance No. 1871 adding this Article to the City Code. In instances where a person concurrently receives more than one billing, of which one or more is or are for different billing periods, the duty to collect the tax shall arise separately for each billing period. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.508. ADMINISTRATIVE AGREEMENTS:

The Director may enter into administrative agreements to vary the strict requirements of the provisions of this Article so that collection of any tax imposed hereunder may be made in conformance with the billing procedures of a particular service supplier so long as said agreements provide for collection of the tax in conformance with the general purpose and scope of the provisions of this Article. A copy of each such agreement shall be retained on file in the office of the Director. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.509. AUTHORITY OF THE DIRECTOR:

The Director shall have the power and duty, and is hereby directed, to enforce and administer the provisions of this Article.

The Director shall have the power to adopt rules and regulations not inconsistent with the provisions of this Article for the purpose of carrying out and enforcing the payment and collection of the taxes, penalties, interest or other charges hereunder imposed or provided. A copy of such rules and regulations shall be retained on file in the office of the Director. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.510. DELINQUENT TAXES:

A. Taxes which are not paid by a service user on or before the due dates provided in this Article are delinquent. Taxes collected from a service user which are not remitted by the service supplier to the City on or before the due dates provided in this Article are delinquent.

B. In the event a service supplier fails to remit any tax collected by said service supplier pursuant to this Article within the time required and upon five (5) days' prior written notice from the City to the service supplier of the failure to so remit said tax, such service supplier shall pay a penalty of ten percent (10%) of the amount of the tax, which shall be due and payable from and after the last day of the month next following the date on which remittance of such tax was due, and which penalty shall be cumulative, monthly, until the tax and penalties are remitted.

In addition to such penalty, any service supplier who or which fails to remit any tax imposed by the provisions of this Article shall pay interest at the rate of one percent (1%) per month, or any fraction thereof, on the amount of the tax exclusive of penalties, from the date on which the remittance first became delinquent until paid. All such penalties and interest imposed upon a service supplier shall be deemed included in the tax required to be remitted.

C. In the event a service user fails to pay any tax imposed by the provisions of this Article within sixty (60) days of the date of written notice of the amount of tax due from the service supplier, said service user shall pay a penalty of ten percent (10%) of the amount of the tax which shall be due and payable from and after the last day of the month next following the date on which payment of such tax was due, and which penalty shall be cumulative, monthly, until the tax and penalties are paid.

In addition to such penalty, any service user who or which fails to pay any tax imposed by the provisions of this Article shall pay interest at the rate of one percent (1%) per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the payment first became delinquent until paid. Such service user shall also pay a collection charge of ten dollars ($10.00) for each delinquent account.

All such penalties and interest imposed upon a service user shall be deemed included in the tax required to be paid. The penalties, interest and collection charges imposed by this Section shall be collected by the City. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.511. ACTIONS TO COLLECT:

Any tax required to be paid by a service user pursuant to the provisions of this Article shall be deemed a debt owed by the service user to the City. Any such tax collected from the service user which has not been remitted to the City shall be deemed a debt owed to the City by the person required to collect and remit said tax. Any person owing money to the City pursuant to the provisions of this Article shall be liable in an action brought in the name of the City for the recovery of the amount due. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.512. COLLECTION REMEDIES OF THE CITY; SERVICE SUPPLIER:

The remedy specified in this Section is in addition to all other remedies of the City provided in this Article. The procedure described in this Section may be invoked at the discretion of the Director.

In the event a service supplier shall fail to make, within the time specified by the provisions of this Article, any required report or any remittance of any tax or any portion thereof, the Director shall obtain facts and information on which to base a reasonable estimate of any such tax due. Upon obtaining such facts and information, the Director shall determine therefrom an assessment amount approximating the amount of any delinquent tax and penalties and interest thereto pertaining, and assess against such service supplier said amount. In case such determination is made, the Director shall give notice of the amount so assessed by personal service or by depositing written notice thereof with the United States mail service, postage prepaid, addressed to the service supplier so assessed at said supplier's last known address.

The service supplier may, within ten (10) days after the date of service or mailing of the aforesaid notice, apply in writing to the Director for a hearing on the amount assessed. If application by the service supplier for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Director shall become final and conclusive and immediately due and payable. If such application is made, the Director shall give not less than five (5) days' written notice in the manner prescribed herein to the service supplier to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the service supplier may appear and offer evidence why such specified tax, interest and penalties should not be so fixed.

After such hearing, the Director shall determine the amount of the tax, interest, and penalties, if any, to be remitted, and shall thereafter give written notice to the service supplier in the manner prescribed above of such determination and the amount due. The amount determined to be due shall be payable within fifteen (15) days of the Director's notice of determination unless an appeal is taken as provided in this Article. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.513. ADMINISTRATIVE REMEDIES OF THE CITY; SERVICE USER:

Whenever the Director determines that a service user has intentionally withheld the amount of any tax imposed by the provisions of this Article from the amounts remitted to a service supplier required to collect the tax, or that a service user has failed to pay the amount of the tax to such service supplier for a period of four (4) or more billing periods, or whenever the Director deems it in the interests of the City, the Director may relieve such service supplier of the obligation to collect the tax imposed pursuant to the provisions of this Article from said service user for specified billing periods. In such event the Director shall give written notice to the service user and the service supplier that the Director has assumed the responsibility to collect the taxes due for the stated periods and demand payment by such service user of such taxes, penalties and interest as may be due. The aforesaid notices shall be served personally or by depositing said notices with the United States mail service, postage prepaid, addressed to the service user at the address to which billing was made by the service supplier required to collect the tax, or to said service user's last known address, and to the service supplier's address on file with the Director. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.514. APPEALS:

Any person aggrieved by any decision of the Director pursuant to this Article may appeal said decision to the City Council by filing a notice of appeal with the City Clerk within ten (10) days of service of the Director's decision. The City Clerk shall set a time and place for hearing such appeal. The Clerk shall give written notice thereof to such person by personal service or by depositing said notice with the United States mail service, postage prepaid, addressed to such person at his or her last known address. The Council shall determine all questions raised on such appeal and may affirm, reverse, or modify the decision of the Director.

No penalty provided pursuant to the provisions of this Article shall be imposed during the pendency of an appeal. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.515. RECORDS:

It shall be the duty of every service supplier required to collect and remit to the City any tax imposed by the provisions of this Article, to keep and maintain, for a period of not less than three (3) years, all records necessary or convenient to determine the amount of such tax that such service supplier shall have been required to collect and remit to the City. The Director shall have the right to inspect such records at all reasonable times. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.516. REFUNDS:

A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously collected or received by the City under this Article, said amounts so collected or received may be refunded, provided that a written claim therefor is filed with the Director within three (3) years of the date of such payment. The claim shall be made on forms furnished or approved by the Director.

No refund shall be paid under the provisions of this Section unless the claimant establishes his or her right thereto supported by written records showing entitlement thereto.

B. Notwithstanding any other provisions of this Section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission or a court of competent jurisdiction, refunds to service users charges for past utility services, the taxes paid pursuant to the provisions of this Article on the amount of such refunded service charges shall also be refunded to said service users by the service supplier to the extent that the service supplier may credit such refunded taxes against the amount of tax which shall be due from service suppliers prospectively from the effective date of the refund of charges. In the event this Article, or any tax imposed pursuant thereto is repealed, amounts of any taxes collected for any billing period or periods subsequent to said repeal shall be refunded to service users by the City. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.517. MAXIMUM UTILITY USERS TAX PAYABLE:

No service user shall be required to pay the combined amount of the taxes imposed pursuant to this Article in excess of fifty thousand dollars ($50,000.00) per year.

Any service user who pays the maximum utility users tax imposed by the City may, with the permission of the Director, pay the tax in equal monthly installments directly to the City.

The Director shall inform all service suppliers of the names and locations of all service users making payments directly to the City. (Ord. No. 1871, 1, 7-11-83)

Sec. 32.518. PENALTIES:

Any person violating any of the provisions of this Article shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable therefor as provided by Section 1.7. (Ord. No. 1871, 1, 7-11-83)


 
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