Chapter 5.12
CONTRACTORS AND REAL ESTATE FIRMS
Sections:
5.12.010 Definitions.
5.12.020 Purpose.
5.12.030 Constitutional exemptions.
5.12.040 License required.
5.12.050 License collector—Enforcement.
5.12.060 License—Application.
5.12.070 License—Issuance.
5.12.080 Tax due and payable when.
5.12.090 Refund permitted when.
5.12.100 Town not bound by employee error.
5.12.110 Duplicate license—Fee.
5.12.120 License—Nontransferable.
5.12.130 Information deemed confidential.
5.12.140 Delinquent tax—Penalty.
5.12.150 Business license categories.
5.12.160 Tax designated.
5.12.170 Dispute arising from tax—Administrative procedure.
5.12.180 Appeal.
5.12.190 Effect on past actions and obligations.
5.12.010 Definitions.
For the purposes of this chapter:
A. “Conducting” means and includes the act of conducting, managing, carrying on a certain business or occupation or any aspect thereof, including, without limitation, showing real property for sale or lease on behalf of the property owner or a potential buyer or lessee (in the case of a realtor).
B. “Contractor” means and includes any person conducting, managing, carrying on or engaging in the business of construction or repair work for an agreed price, or who shall hold himself out to the public as in such business, or who shall erect, construct, alter or repair any building or structure for the purpose of selling or renting the same, and who does not employ therefor a person licensed under this chapter.
Anything in this chapter to the contrary notwithstanding, “contractor” shall not include an architect holding a certificate to practice architecture in the state issued under authority of the California Business and Professions Code.
C. “Person,” unless otherwise specifically provided in this chapter, means and includes natural persons of either sex, firms, associations, partnerships and corporations, whether acting by themselves, or by servant, agent or employee. The singular number shall include the plural and the masculine shall include the feminine.
D. “Real estate firm” means and includes any person conducting, managing or carrying on or engaging in the real estate business who employs any real estate broker, salesperson or agent in such business. (Ord. 409 § 1, 1985)
5.12.020 Purpose.
The purpose of this chapter is to provide for the establishment and levying of license taxes for the transaction and carrying on of certain businesses, trades, professions and occupations in the town. This chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation. (Ord. 409 § 2, 1985)
5.12.030 Constitutional exemptions.
A. Nothing in this chapter shall be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or of the state of California from the payment of such taxes as are provided in this chapter.
B. Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the town and shall remain subject to the regulatory provisions of other ordinances. Nothing in this chapter shall be deemed to authorize the conducting of any activity otherwise prohibited under any other ordinance of the town.
C. None of the license taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce, a violation of the equal protection and due process clauses of the Constitutions of the United States or of the state, or otherwise conflict with such Constitutions or any applicable statutes of the United States or the state. (Ord. 409 § 3, 1985)
5.12.040 License required.
A. There are imposed upon the businesses, trades, callings and occupations specified in this chapter, license taxes in the amounts prescribed in this chapter. It is unlawful for any person to transact and carry on any business, trade, calling or occupation as prescribed in this chapter without first having procured a license from the town to do so and without complying with any and all applicable provisions of this chapter.
B. Persons not required to obtain a license prior to doing business within the town because of conflict with applicable statutes of the United States or of the state of California shall, nevertheless, be liable for payment of the tax imposed by this chapter, provided that the payment of such tax is not prohibited by Section 5.12.030 of this chapter. (Ord. 409 § 5, 1985)
5.12.050 License collector—Enforcement.
A. The city clerk is designated the license fee collector (hereinafter, the “collector”).
B. The chief of police, and such police officers as he may designate, are appointed inspectors of licenses and, in addition to their several duties as police officers, are authorized to examine all persons engaged in business activities in the town, as specified in this chapter, and to ascertain whether the provisions of this chapter have been complied with. They shall have and exercise the power to make arrests for the violation of any provisions of this chapter and shall have the right to enter, free of charge at any reasonable time, any property on which a business is being conducted and for which a license is or may be required by this chapter and to demand the exhibition of such license for the current term by any person so engaged or employed in the transaction of such business. Any such person who wilfully fails to exhibit the same on demand shall be guilty of a misdemeanor and subject to the penalties provided for by the provisions of this chapter.
C. The amount of any license tax and penalty imposed by the provisions of this chapter shall be deemed a debt to the town. An action may be commenced in the name of the town in any court of competent jurisdiction, for the amount of any delinquent license tax and penalties.
D. All remedies prescribed under this chapter shall be cumulative and the use of one or more remedies by the town shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. (Ord. 409 § 6, 1985)
5.12.060 License—Application.
Every person required to have a license under the provisions of this chapter shall make application to the collector. Such application shall be a written statement upon a form provided by such collector and shall be written by the applicant before a person authorized to administer oaths. The application shall set forth such information as may be necessary properly to determine the amount of the license tax to be paid by the applicant. The following business license information will be required on the application:
A. Business name for which the license will be issued;
B. Business street address and mailing address if different from street address;
C. Federal employer identification number (FEIN), if the business is a partnership or corporation, owner’s name and social security number for all others. State employer I.D. number may be used if federal number is not known;
D. Type of business activity—ownership type, e.g., sole proprietorship, corporation or partnership;
E. Telephone number, including area code. (Ord. 409 § 7 (part), 1985)
5.12.070 License—Issuance.
Upon the payment of the prescribed license tax, the collector shall issue to such person a license which shall contain (1) the name of the person to whom the license is issued; (2) the business licensed; (3) the date of the expiration of such license; and (4) such other information as may be necessary for the enforcement of the provisions of this chapter. No statement set forth in an application shall be conclusive as to matters set forth therein. (Ord. 409 § 7 (part), 1985)
5.12.080 Tax due and payable when.
A. All annual license taxes under the provisions of this chapter shall be due and payable to the town in advance on the first day of July of each year and shall be delinquent at five p.m. on July 31st of that year; provided, however, that during Fiscal Year 2000-2001 for persons who become subject to this chapter for the first time during the license tax year after July 31, 2000, but prior to June 30, 2001, the license tax shall be due and payable immediately on the day such person becomes subject to this chapter in a prorated amount as set out below and the license shall remain valid until June 30, 2001, whereupon it shall be renewable. The amount of tax due shall be prorated for persons becoming subject on:
1. Any day of August, the tax shall be 11/12ths of the tax designated in Section 5.12.160.
2. Any day of September, the tax shall be 10/12ths of the tax designated in Section 5.12.160.
3. Any day of October, the tax shall be 9/12ths of the tax designated in Section 5.12.160.
4. Any day of November, the tax shall be 8/12ths of the tax designated in Section 5.12.160.
5. Any day of December, the tax shall be 7/12ths of the tax designated in Section 5.12.160.
6. Any day of January, the tax shall be 6/12ths of the tax designated in Section 5.12.160.
7. Any day of February, the tax shall be 5/12ths of the tax designated in Section 5.12.160.
8. Any day of March, the tax shall be 4/12ths of the tax designated in Section 5.12.160.
9. Any day of April, the tax shall be 3/12ths of the tax designated in Section 5.12.160.
10. Any day of May, the tax shall be 2/12ths of the tax designated in Section 5.12.160.
11. Any day of June, the tax shall be 1/12th of the tax designated in Section 5.12.160.
B. For years beginning on and after July 1, 2001, all annual license taxes under the provisions of this chapter shall be due and payable to the town on the first day of July and shall be delinquent at five p.m. on July 31st of that year; provided, however, that for persons who become subject to this chapter for the first time during the license tax year (after July 31st but prior to and including December 31st), the full license tax shall be due and payable immediately on the day such person becomes subject to this chapter and the license shall remain valid for a period ending on June 30th, whereupon it shall be renewable.
C. For persons who become subject to this chapter for the first time during the final six months of the license tax year (from and after January 1st and prior to June 30th), one-half of the license tax shall be due and payable immediately on the day such person becomes subject to this chapter and the license shall remain valid until the period ending on June 30th, whereupon it shall be renewable. (Ord. 516 § 1, 2000: Ord. 409 § 7 (part), 1985)
5.12.090 Refund permitted when.
No refunds will be made on any amount paid as a license tax except in case of an error on the part of the town in the determination of the amount of the license tax, in the event of double payment for a license, or in case of an illegally collected license tax. (Ord. 409 § 7 (part), 1985)
5.12.100 Town not bound by employee error.
The town shall not be bound by the mistake of any officer or employee of the town in issuing a license contrary to the terms of this chapter or of the terms of any zoning or other ordinance of the town. (Ord. 409 § 7 (part), 1985)
5.12.110 Duplicate license—Fee.
A charge of twenty-five dollars shall be made for each duplicate license issued to replace any license issued under the provisions of this chapter which has been lost or destroyed. No duplicate will be issued unless the licensee files with the collector an affidavit satisfactory to the collector attesting to such loss. (Ord. 409 § 7 (part), 1985)
5.12.120 License—Nontransferable.
No license issued pursuant to this chapter shall be transferred except that when a licensee transfers his business from one location to another the license previously issued may be amended to change the address to the new location. The license transfers and amendments authorized in this chapter may be obtained upon application therefor to the license collector and the payment of the sum of five dollars. (Ord. 409 § 7 (part), 1985)
5.12.130 Information deemed confidential.
The information furnished or secured pursuant to the provisions of this chapter shall be deemed confidential in character; shall not be subject to public inspection unless otherwise required by law; and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration of this chapter, or other governmental agency, or as required by law. (Ord. 409 § 8, 1985)
5.12.140 Delinquent tax—Penalty.
For failure to pay a license tax when due, a penalty shall accrue at the rate of ten percent of the license tax per month after the due date thereof, provided that the amount of such penalty to be added shall in no event exceed one hundred percent of the amount of the license tax due annually. (Ord. 409 § 9, 1985)
5.12.150 Business license categories.
A. Persons or firms conducting business within the town shall pay a business license tax according to the tax rate specified for that type of business. Tax rates are based on the following categories:
1. Category I: Firms with two or more employees doing business as:
General contractors
Alarm installers
Private patrol
Maintenance companies
Buildings
Grounds/landscaping
Swimming pools
Real estate firms
2. Category II: Firms with two or more employees doing business as:
Subcontractors
3. Category III: Sole operators which are doing business as:
Subcontractors
Maintenance companies
Buildings
Grounds/landscaping
Swimming pools
Real estate brokers
Home occupations
4. Category IV:
Handymen
Horseshoers
Solicitors
Delivery vehicles
B. Where a person does business in more than one of the above classifications, the annual license tax will be the highest one set in any of the classifications in which business is being done, plus one-half of the fixed license tax for each of the additional classifications in which such person is doing business. (Ord. 409 § 10, 1985)
5.12.160 Tax designated.
A. Except as otherwise provided, the license tax for those in business, conducting business, supplying services, or delivering goods within the town shall be as follows:
1. Category I: Five percent of gross receipts derived during the license year from business conducted or performed within the town, or two hundred fifty dollars, whichever is lower.
2. Category II: Five percent of gross receipts derived during the license year from business conducted or performed within the town, or one hundred fifty dollars, whichever is lower.
3. Category III: Five percent of gross receipt derived during the license year from business conducted or performed within the town, or one hundred dollars, whichever is lower.
4. Category IV: Five percent of gross receipts derived during the license year from business conducted or performed within the town, or fifty dollars, whichever is lower.
B. Each licensee shall pay an administrative fee of fifty dollars to help defray the cost of issuing, maintaining and enforcing this chapter. This fee shall be part of the license fee and not in addition to the license fee specified in this section.
C. For the tax year commencing July 1, 2000, and ending June 30, 2001, the license tax designated in subsection A of this section shall be prorated based upon the schedule shown in Section 5.12.080. (Ord. 516 § 2, 2000: Ord. 409 § 11, 1985)
5.12.170 Dispute arising from tax—Administrative procedure.
A. If any person fails to file in a timely manner any statement required under this chapter or if it appears to the satisfaction of the collector that a statement filed does not set forth the true facts of the business for which a license is required, the collector shall determine the amount
of license tax due from such person by means of such information as the collector may be able to obtain. The collector shall have the right, to be exercised by himself or his designated representative, to inspect the books of any such person after five days’ written notice to such person.
B. In case a determination is made that a license tax is due, the collector shall give notice of the amount so assessed by serving it personally or by depositing it in the U.S. post office in Atherton, postage prepaid, addressed to the person so assessed at the address appearing on his last license or application, if any, or at such address as the collector may determine is such person’s principal place of business or residence. 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. If such application is made, the collector shall give not less than five days’ written notice, in the manner prescribed in this chapter, to the licensee to show cause, at a time and place fixed in the notice, why the amount specified therein should not be fixed for such license. At such hearing, the licensee may appear and offer evidence why such specified amount should not be fixed as the license tax. After such hearing, the collector shall determine the proper tax to be charged and shall forthwith give written notice to the licensee in the manner prescribed in this chapter of such determination and the amount of such tax.
C. If application by the licensee for a hearing is not made within the time prescribed, the license tax determined by the collector shall become final and conclusive.
D. The amount of any license tax finally determined as provided in this section or Section 5.12.180 shall be due and payable as of the date the original license fee 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.
E. For the purpose of this section, the collector, his deputies and authorized agents, are authorized to administer oaths.
F. In any action brought under or arising out of any of the provisions of this chapter, or of any ordinance imposing a license tax, the fact that a party thereto represented himself as conducting or engaged in any business for which a license is required shall be conclusive evidence of the liability of such party to pay for a license for such business. (Ord. 409 § 12, 1985)
5.12.180 Appeal.
A. Any person aggrieved by any decision of the collector or any other administrative officer or agency with respect to the issuance or refusal to issue a license or the amount of a license tax may appeal to the city council by filing a notice of appeal with the city clerk within fifteen 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 serving it personally or by depositing it in the U.S. post office at Atherton, postage prepaid, addressed to such person at the address appearing on his last license application, or if not previously licensed, such person’s principal place of business. The findings of the city council shall be final and conclusive and shall be served upon such person in the manner prescribed in this chapter for service of notice of hearing.
B. In the event the license taxes set forth in this chapter work unreasonably, unfairly or discriminatorally as to any particular person conducting a business subject to a license tax under this chapter, such person may apply to the city council for an adjustment of the tax. The city council shall have the right to adjust any fee so that it will not be discriminatory, unjust or unfair.
C. Upon such application being made to the city council, the collector shall investigate the application and make a finding of facts to the city council, after which time such application will be set for hearing at a regular meeting of the city council, due notice of which will be given to the applicant. The decision and order of the city council on such application shall be final and conclusive. (Ord. 409 § 13, 1985)
5.12.190 Effect on past actions and obligations.
A. Neither the adoption of the ordinance codified in this chapter nor its superseding of any portion of any other ordinance of the town shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in this chapter; nor be construed as a waiver of any license or penalty 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 posted, filed or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.
B. The payment of a license tax required by the ordinance codified in this chapter and its acceptance by the town and the issuance of a license to any person shall not entitle the holder thereof to carry on any business in or on any building or premises when the carrying on of such business would be in violation of any other ordinances of the town. (Ord. 409 § 4, 1985)