Chapter 5.12
EXEMPTIONS

Sections:

5.12.010    Exemptions generally.

5.12.020    Charitable and nonprofit organizations.

5.12.030    Disabled veterans.

5.12.040    Minors.

5.12.050    Artists and art exhibits.

5.12.060    Revocation of exemption.

5.12.070    Residential rentals.

5.12.080    Real estate salespeople.

5.12.090    Participation in public proceedings.

5.12.010 Exemptions generally.

A.    Nothing in this article 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 from the payment of such taxes as are herein prescribed.

B.    Any person claiming an exemption pursuant to this section shall file a sworn statement with the finance officer stating the facts upon which exemption is claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this article.

C.    The finance officer shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the city of the license tax required by this article.

D.    The finance officer, after giving notice and reasonable opportunity for hearing to a licensee, may revoke any license granted to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein. (Ord. 77-11 § 6, 1978)

5.12.020 Charitable and nonprofit organizations.

A.    The provisions of this article shall not be deemed or construed to require the payment of a license tax to conduct, manage or carry on any business, occupation, event, or activity from any institution or organization which is conducted, managed or carried on for the benefit of religious, charitable, philanthropic or educational purposes; provided, that convincing evidence is furnished to the finance officer which establishes that not less than seventy-five percent of the gross receipts derived from any such business, occupation, event or activity will be devoted to religious, charitable, philanthropic or educational purposes. Such organization may also qualify under Section 501 of the United Stated Internal Revenue Code or equivalent statute, or equivalent statute of the state.

B.    This section shall not be deemed to exempt any such institution or organization from complying with any other provisions of this article requiring a permit from the city.

C.    The exemption in this section shall not be deemed applicable with regard to any commercial-type revenue-producing rental activity or other merchandising or business activities directly or indirectly operated on a regular basis by or on behalf of a religious or charitable institution or organization.

D.    When activities otherwise exempt under the above basic rule are conducted for and on behalf of an exempt institution or organization by a profit-making contractor or concessionaire, or the like, then the exemption shall be applicable only with regard to the religious or charitable organization, and shall not be applicable with regard to the activities, operations or revenues received by the contractor or concessionaire or the like.

E.    No license tax shall be required for the conducting of any entertainment, concert, exhibition, or lecture on scientific, historical, literary, religious, or moral subjects within the city, whenever the receipts therefrom are to be appropriated to any institution or organization exempt under the above basic rule; provided, that this exemption shall not apply to any person or entity conducting the business and deriving profit, incidentally to producing the receipts as stated.

F.    No license tax shall be required for the conducting of any temporary entertainment, concert, exhibition, or lecture by any religious, charitable, civic, fraternal, educational, military, state, county or municipal organization or association, whenever the receipts therefrom are to be appropriated for the purposes and objects for which such organization or association was formed, and from which profit is not derived by any other persons except those in the business of producing, staging, or otherwise participating in such events, and provided that this exemption shall not apply to such or any other persons or entities conducting business and deriving profit, incidentally to producing the receipts as stated. (Ord. 77-11 § 7, 1978)

5.12.030 Disabled veterans.

A.    Every honorable discharged soldier, sailor, marine, or airman 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 shall have the right to hawk, peddle and vend any goods, wares or merchandise owned by him, exempt spiritous, malt, vinous or other intoxicating beverages, without the payment of a license fee; subject, however, to the restrictions, limitations, regulations and conditions hereinafter set forth.

B.    Every applicant must comply with the following requirements before a license may be issued under the provisions of this section:

1.    Every applicant must furnish a certificate of physical disability executed by a qualified surgeon of the United States Army, Navy or Air Force, a certificate of honorable discharge from the United States Armed Forces, and a written recommendation from the representatives of the local posts of the American Legion and the Veterans of Foreign Wars.

2.    Every applicant must furnish two identification photographs; one to be attached to the license issued to said applicant, and the other to be attached to the copy retained by the finance officer. The applicant must also sign both copies of said license at the time of the issuance thereof.

C.    A license, when issued, is subject to the following conditions:

1.    It is nontransferable and for the exclusive use of the licensee named.

2.    Applicant’s identification photograph must be attached to said license at all times, and failure to comply herewith is grounds for revocation of said license and for refusing its renewal or the issuance of a new license thereafter.

3.    Should a license be found in the possession of one other than the licensee named, it shall be surrendered up to the finance officer and cancelled, and neither the licensee named nor the holder thereof shall thereafter be entitled to hold a license under the provisions of this section.

4.    The licensee named must identify himself by his signature whenever required to do so by the police officers, or other authorized city officials.

5.    Whenever the licensee uses any wagon, cart, tray, basket or other vehicle or receptacle in vending any such goods, wares, or merchandise, said license shall be carried in a license holder attached to said vehicle or receptacle and in plain view.

D.    It is 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.

E.    No person shall purchase or transfer any license issued pursuant to the provisions of this section, or transfer or convey the certificates mentioned in subsection B1 of this section, to any other person for the purpose of securing a license as herein provided for. (Ord. 77-11 § 8, 1978)

5.12.040 Minors.

Any person under sixteen years of age whose annual gross income from any business done within the city is less than eight hundred dollars shall be exempt from the requirements of this article. (Ord. 77-11 § 9, 1978)

5.12.050 Artists and art exhibits.

A business license shall not be required of individual artists for the exhibition or display of paintings, sculpture, photographs or other fine arts in public buildings, art galleries, or in any business establishment if the exhibition or display is incidental to the primary business conducted on the premises, and is primarily for cultural and educational purposes. Any artist shall be exempt from the requirements of this article if the sales of his art work within the city do not result in annual gross receipt in excess of one thousand dollars. (Ord. 77-11 § 10, 1978)

5.12.060 Revocation of exemption.

The city council or city manager may revoke the exemption license if in their opinion the person is not entitled to the exemption. (Ord. 77-11 § 11, 1978)

5.12.070 Residential rentals.

A.    For the purposes of this article, the following activity shall not be deemed to constitute “engaging in business,” and no business license shall be required for such activity:

The rental by an occupant to tenant(s) of one or more rooms of the occupant’s primary residence or of shared use with the occupant of his or her primary residence.

B.    This section shall not apply to any residential rental that is offered for tenancies that are shorter than thirty days. (Ord. 2017-06 § 2, 2017)

5.12.080 Real estate salespeople.

A real estate salesperson shall not be required to obtain a license under this article or pay a tax under this article with respect to his or her activity as a real estate salesperson, so long as he or she is employed (as that term is used in Business and Professions Code Section 10132) by a licensed real estate broker who (A) has obtained a license under this article and (B) treats the salesperson’s activities as the broker’s own activities for purposes of calculating taxes owed by the broker pursuant to this article. (Ord. 2017-06 § 3, 2017)

5.12.090 Participation in public proceedings.

For the purposes of this article, a person shall not be deemed to be engaging in business in the city if the person, in the course of business, is present in the city solely to appear at, present testimony at, or attend a session or meeting of any court, administrative agency, or local government legislative body located in the city. This exemption shall not apply if the person is appearing, testifying, or attending on the city’s behalf or in fulfillment of a contract with the city. (Ord. 2017-06 § 4, 2017)