Chapter 5.04 BUSINESS LICENSE TAX*

Chapter 5.04
BUSINESS LICENSE TAX*

Sections:

5.04.010 Purpose.

5.04.020 Definitions.

5.04.030 One act constitutes doing business.

5.04.040 Applicability—Fees.

5.04.050 License fee additional to others.

5.04.060 Compliance required.

5.04.070 Agent responsibility.

5.04.080 Joint license—Issued when.

5.04.090 Delivery—No license required when.

5.04.100 Nonprofit enterprise—Special permit issuance.

5.04.110 Exemptions.

5.04.120 License officer—Powers and duties.

5.04.130 License—Application required—Requirements.

5.04.140 Information confidential.

5.04.150 Fee—Amount determination—Time for procuring.

5.04.160 Reduced license fee.

5.04.170 Receipt—Issued when—Not to be construed as license.

5.04.180 License—Nonapproval—Business operation prohibited.

5.04.190 License—Nonapproval—Fee refund.

5.04.200 License—Duties generally.

5.04.210 License—Display requirements.

5.04.220 Change of location—Notification required.

5.04.230 Fee—Refund prohibited—Exception.

5.04.240 Transferability.

5.04.250 Order to comply—Issuance.

5.04.260 Order to comply—Form—Content—Delivery.

5.04.270 Hearing—Application requirements—Notification.

5.04.280 License officer—Authority to modify compliance regulations.

5.04.290 Suspension or revocation when—License officer authority.

5.04.300 Right of appeal—Filing procedure.

5.04.310 Hearing—Procedure—Notification.

5.04.320 Decision—Finality—Appeal filing.

5.04.330 Liability of violator—Debt recovery.

5.04.340 Late payment—Ten percent surcharge imposed.

5.04.350 Violation—Penalties.

* For provisions relating to gas installer’s and gas-fitter’s licenses, see Chapter 14.20.

Prior ordinance history: Ords. 97, 319, 344, 373, 402, 442 and 476.

5.04.010 Purpose.

The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. (Ord. 615 § 1 (part), 1993).

5.04.020 Definitions.

For the purpose of this chapter the following terms, phrases, words and their derivations shall have the meaning given in this section. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number and words in the singular include the plural number. The word “shall” is always mandatory and not merely directory.

(1) “Business” is meant to include all kinds of vocations, occupations, professions, enterprises, establishments, and all other kinds of activities and matters, together with all devices, machines, vehicles and appurtenances used therein, any of which are conducted for private profit, or benefit, either directly or indirectly, on any premises in this city or anywhere else within its jurisdiction.

(2) “City” is the city of Connell.

(3) “City council” is the city council of the city of Connell.

(4) “City license officer” or “license officer” is the city clerk.

(5) “Employee” is any natural person who works for salary or wages or on a commission basis.

(6) “License” or “licensee” as used generally in the chapter includes respectively the words “permit,” or “permittee,” or the holder for any use or period of time of any similar privilege, wherever relevant to any provision of this code or other law or code.

(7) “Person” is meant to include individual natural persons, partnerships, joint ventures, societies, associations, clubs, trustees, trusts, or corporations; or any officers, agents, factors, or any kind of personal representatives of any thereof, in any capacity, acting for either himself or for any other person, under either personal appointment or pursuant to law.

(8) “Premises” is meant to include all lands, structures, places, and also the equipment and appurtenances connected or used therewith in any business, and also any personal property which is either affixed to or is otherwise used in connection with any such business conducted on such premises. (Ord. 615 § 1 (part), 1993).

5.04.030 One act constitutes doing business.

For the purpose of this chapter any person shall be deemed to be in business or engaging in a nonprofit enterprise, and thus subject to the requirements of Section 5.04.040, when he does one act of:

(1) Selling any goods or service;

(2) Soliciting business or offering goods or services for sale or hire;

(3) Acquiring or using any vehicle or any premises in the city for business purposes. (Ord. 615 § 1 (part), 1993).

5.04.040 Applicability-Fees.

(a) There is levied upon and shall be collected from every person engaged in operating a show or exhibition the sum of one hundred dollars per day. Shows and exhibitions include but are not limited to the following: Circuses, carnivals, professional boxing and wrestling exhibitions, shooting galleries, tent shows, and vaudeville and touring shows; provided, however, that for all street carnivals, shows or circuses, or shows or performances ordinarily classified as such, whether shown upon public streets or property or upon other property within the city, during the duration of the annual and traditional Connell/North Franklin Festival, appearing at the invitation of and under the auspices, sponsorship, regulation and control of the North Franklin Festival Association, or other similar officially authorized nonprofit association, shall pay a reduced license fee of one dollar per day.

(b) There is levied upon and shall be collected from every person in the city engaged in any business or occupation set forth below a license fee of thirty dollars for the privilege of engaging in such business in the city:

(1) Every person engaged in the occupation of doctor, attorney, accountant, dentist, optometrist, veterinarian, or other profession;

(2) Every person engaged in real estate, photography, insurance, private school, mortician, travel agency, financial institution, architect, securities, or other similar businesses or occupations;

(3) Every person engaged in operating a restaurant, grocery store, tavern or similar business, or a retail store;

(4) Every person renting or subletting any type of property, unimproved or improved, including apartments and sleeping room, rooms in hotels, motels, and cabin courts, or places where rooms are kept for rent for the accommodation of the traveling public, whether rented by the day, week, or month, and including lots for the placement of trailers, mobile homes, etc.; provided, that in all such cases the person shall have at least four units of property; each separate tenant on a tract of land shall constitute a separate unit for purposes of this chapter;

(5) Each person operating a public massage parlor, art studio, public bathhouse or similar business;

(6) Every person engaged in the business of dray and transfer or the moving of goods and commodities for hire;

(7) Every person engaged in operating a theater or drive-in theater in which motion pictures are shown for profit;

(8) Every person operating a service station, garage, or similar business; and

(9) Every person engaged in manufacturing, production, construction, or research, or in other business or occupations not enumerated above.

(c) There is levied upon and shall be collected from every itinerant merchant as defined in Chapter 5.08, the sum of thirty dollars per thirty-day period.

(d) Any person, firm or corporation or public utility district, engaged in or carrying on the business of selling or furnishing electric lights and power to persons, firms or corporations within the city, shall be required to pay and there is levied thereon, a fee or tax equal to three percent of the gross income from such business during its fiscal year next preceding the tax year for which the license is required. (Ord. 615 § 1 (part), 1993).

5.04.050 License fee additional to others.

The license fee and tax levied in this chapter shall be additional to any license fee or tax imposed or levied under the law of any other ordinance of the city except as otherwise expressly provided in this chapter. (Ord. 615 § 1 (part), 1993).

5.04.060 Compliance required.

(a) It is unlawful for any person, either directly or indirectly, to conduct any business or nonprofit enterprise for which a license or permit is required by this chapter without having a license or permit therefor in effect at all times as required by this chapter.

(b) The issuance of a license or permit under this chapter shall not waive or excuse compliance with the provisions of any other ordinance of the city. (Ord. 615 § 1 (part), 1993).

5.04.070 Agent responsibility.

The agents or other representatives of nonresidents who are doing business in the city shall be personally responsible for the compliance by their principals and by the businesses they represent, with this chapter. (Ord. 615 § 1 (part), 1993).

5.04.080 Joint license-Issued when.

(a) A person engaged in two or more businesses at the same location shall not be required to obtain separate licenses for conducting each of such businesses but, when eligible, shall be issued one license which shall specify on its face all such businesses.

(b) Services provided by a retail business which are incidental to or ordinarily associated with the retail business shall not be considered as a different or separate business. (Ord. 615 § 1 (part), 1993).

5.04.090 Delivery-No license required when.

No license shall be required of any person for any mere delivery in the city of any property purchased or acquired in good faith from such person at his regular place of business outside the city where no intent by such person is shown to exist to evade the provisions of this chapter. (Ord. 615 § 1 (part), 1993).

5.04.100 Nonprofit enterprise-Special permit issuance.

(a) The license officer shall issue special permits, without the payment of any license fees or other charge therefor, to any person or organization for the conduct or operation of a nonprofit enterprise, either regularly or temporarily, when she finds that the applicant operates without private profit for a public, charitable, educational, literary, fraternal, or religious purpose. However, a profit organization operating under the sponsorship of a nonprofit organization shall pay all applicable license fees or charges.

(b) An applicant for a special permit shall submit an application therefor to the license officer upon forms prescribed by the license officer and shall furnish such additional information and make such affidavits as the license officer shall require.

(c) A person or organization operating under a special permit shall operate his nonprofit enterprise in compliance with this chapter and all other applicable rules and regulations except as provided in this chapter. (Ord. 615 § 1 (part), 1993).

5.04.110 Exemptions.

The provisions of this chapter shall not apply to:

(1) Any person in respect to insurance business upon which a tax based on gross premiums is paid to the state; provided, however, that the provisions of this subsection shall not exempt any person engaging in the business of representing any insurance company, whether as general or local agent or acting as broker for such companies; and provided further, that the provisions of this subsection shall not exempt any bonding company from tax with respect to the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor;

(2) Any person in respect to his employment in the capacity of an employee or servant as distinguished from that of an independent contractor;

(3) National banks, state banks, trust companies, mutual savings banks, building and loan, and savings and loan associations with respect to their banking business, trust business or savings and loan business, but not with respect to engaging in any other business taxable under this chapter, even though such other business is conducted primarily for the purpose of liquidating the assets thereof;

(4) The business of manufacturing, selling, or distributing motor vehicle fuel, as that term is defined in Chapter 58, Laws of 1993, as amended;

(5) Any religious society, association or corporation, through the operation of any hospital, clinic, resort or other institution devoted exclusively to the care or healing of human beings; provided, that no exemption is granted where the income therefrom inures to the benefit of any physician, surgeon, stockholder, or individual by virtue of ownership or control of such hospital, clinic, resort or other institution;

(6) Any instrumentality of the United States, the state, or political subdivision thereof;

(7) Any farmer, gardener or other person who shall sell, deliver or peddle any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm produce or edibles raised, caught, produced or manufactured by such person within the state;

(8) Any person to whom at least three of the following apply:

(A) The person is under eighteen years of age,

(B) The business or occupation is part-time,

(D) The person is not required to file a state business and occupations taxation form,

(E) The gross income of the business involved is less than one thousand eight hundred dollars per year. (Ord. 615 § 1 (part) 1993).

5.04.120 License officer-Powers and duties.

The license officer shall collect all license fees and shall issue licenses in the name of the city to all persons qualified under the provisions of this chapter and shall:

(1) Promulgate and enforce all reasonable rules and regulations necessary to the operation and enforcement of this chapter;

(2) Adopt all forms and prescribe the information to be given therein as to character and other relevant matters for all necessary papers;

(3) Require applicants to submit all information necessary to the administration of this chapter;

(4) Submit applications in a proper case to interested city officials for their endorsements thereon as to compliance by the applicant with all city regulations which they have the duty of enforcing;

(5) Investigate and determine the eligibility of any applicant for a license as prescribed herein;

(6) Examine the books and records of any applicant or licensee when reasonably necessary to the administration and enforcement of this chapter;

(7) Notify any applicant of the acceptance or rejection of his application and shall, upon his refusal of any license or permit, at the applicant’s request state in writing the reasons therefor and deliver them to the applicant. (Ord. 615 § 1 (part), 1993).

5.04.130 License-Application required- Requirements.

Every person required to procure a license under the provisions of this chapter shall submit an application for such license to the license officer. The application shall:

(1) Be in writing upon forms provided by the license officer;

(2) Contain all information necessary to establish compliance with this title and any other information which the license officer finds to be reasonably necessary to the fair administration of this chapter;

(3) Be accompanied by the full amount of the fees chargeable for such license;

(4) Be in compliance with the applicable city zoning codes. (Ord. 615 § 1 (part), 1993).

5.04.140 Information confidential.

To the extent possible under applicable state and federal laws relating to public information, the license officer shall keep all information furnished or secured under the authority of this chapter in strict confidence. Such information shall not be subject to public inspection and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration and enforcement of this chapter. (Ord. 615 § 1 (part), 1993).

5.04.150 Fee-Amount determination- Time for procuring.

License fees shall be in the amounts established in Section 5.04.040 and as further determined under this chapter. Licenses required by the terms of this chapter shall be for the calendar year and shall be procured by the licensee prior to March 1st of the calendar year for which required, or prior to the commencement of the operation of the business within the city. (Ord. 615 § 1 (part), 1993).

5.04.160 Reduced license fee.

For any new business commencing to do business after June 30th of any year, a reduced license fee for the remainder of the calendar year shall be the sum of fifteen dollars. (Ord. 615 § 1 (part), 1993).

5.04.170 Receipt-Issued when-Not to be construed as license.

Whenever a license cannot be issued at the time the application for the same is made, the license officer shall issue a receipt to the applicant for the money paid in advance, subject to the following conditions:

(1) Such receipt shall not be construed as the approval of the license officer for the issuance of a license;

(2) It shall not entitle or authorize the applicant to open or maintain any business contrary to the provisions of this chapter or of any other ordinance or of general law. (Ord. 615 § 1 (part), 1993).

5.04.180 License-Nonapproval-Business operation prohibited.

When the issuance of a license is denied and any action is instituted by the applicant to compel its issuance, such applicant shall not engage in the business for which the license was refused unless a license is issued to him pursuant to a judgment ordering the same. (Ord. 615 § 1 (part), 1993).

5.04.190 License-Nonapproval-Fee refund.

The license officer, upon disapproving any application submitted under the provisions of this chapter, shall refund all fees paid in advance to the applicant, provided the applicant is not otherwise indebted to the city. (Ord. 615 § 1 (part), 1993).

5.04.200 License-Duties generally.

Every licensee under this chapter shall:

(1) Ascertain and at all times comply with all laws and regulations applicable to such licensed business;

(2) Refrain from operating the licensed businesses on premises after expiration of his license and during the period his license is revoked or suspended;

(3) Promptly surrender any license certificate when required by the license officer. (Ord. 615 § 1 (part), 1993).

5.04.210 License-Display requirements.

Every licensee under this chapter shall:

(1) Display such license in a prominent location upon the licensed premises;

(2) When he has no licensed business premises, carry such license on his person. (Ord. 615 § 1 (part), 1993).

5.04.220 Change of location-Notification required.

A licensee shall have the right to change the location of the licensed business, provided he shall promptly notify the license officer of such change of location. (Ord. 615 § 1 (part), 1993).

5.04.230 Fee-Refund prohibited- Exception.

Except as provided in this chapter, no rebate or refund of any license fee or part thereof shall be made by reason of the nonuse of such license or by reason of a change of business rendering the use of such license ineffective; provided, however, that the license officer shall have authority to refund a license fee only where the license fee was collected by error on the part of the city. (Ord. 615 § 1 (part), 1993).

5.04.240 Transferability.

No licensee shall loan, sell, give or assign to any other person, or allow any other person to use or display, or to destroy, damage or remove, or to have in his possession, except as authorized by the license officer or by law, any license which has been issued to the licensee. (Ord. 615 § 1 (part), 1993).

5.04.250 Order to comply-Issuance.

When a violation of this chapter or of any other law or ordinance has been reported to the license officer, she shall issue to the person reported to be in violation an order to comply. (Ord. 615 § 1 (part), 1993).

5.04.260 Order to comply-Form- Content-Delivery.

(a) The order to comply shall:

(1) Be in writing;

(2) Be served on the licensee; and

(3) Apprise the person affected of his specific violations.

(b) In the absence of the person affected or his agent or employee, a copy of such notice shall be affixed to some structure on the premises.

(d) The order to comply shall require compliance within ten days of serving notice on the affected person. (Ord. 615 § 1 (part), 1993).

5.04.270 Hearing-Application requirements-Notification.

(a) Upon written application by the person affected, before the expiration of the ten-day period for compliance, the license officer shall order and hold a hearing.

(b) Notice of such hearing shall be given the affected person in the manner prescribed in Section 5.04.260. (Ord. 615 § 1 (part), 1993).

5.04.280 License officer-Authority to modify compliance regulations.

Upon written application, or on her own motion, the license officer shall have the authority, in a proper case, to:

(1) Extend the time for compliance;

(2) Grant a new hearing date; and

(3) Change, modify or rescind any recommendation or order. (Ord. 615 § 1 (part), 1993).

5.04.290 Suspension or revocation when- License officer authority.

Upon the refusal or failure of the violator to comply with the initial order, or if an appeal is taken, with any order made after hearing, the license officer shall have the authority to suspend or revoke the violator’s license. No license, however, shall be suspended or revoked until ten days has elapsed from the service of the initial order, and if the violator applies for a hearing under Section 5.04.270, until an order has been made after hearing, and if the violator exercises his right of appeal under Section 5.04.300, until the city council has made its findings. (Ord. 615 § 1 (part), 1993).

5.04.300 Right of appeal-Filing procedure.

(a) Any person aggrieved by any decision of the license officer after a hearing shall have the right to appeal to the city council by filing a written appeal with the mayor within ten days following the effective date of the action or decision complained of.

(b) Such appeal shall set out a copy of the order or decision appealed from and shall include a statement of the facts relied upon to avoid such order.

(c) At the time of filing any such appeal a copy thereof shall be filed by the appellant with the license officer. (Ord. 615 § 1 (part), 1993).

5.04.310 Hearing-Procedure- Notification.

The mayor shall fix a time and place for hearing the appeal before the city council and shall have served a written notice, as provided in Section 5.04.260, upon the appellant informing him thereof. The mayor shall also give such notice to the license officer and such officer shall be entitled to appear and defend such order. The city council shall thereupon ascertain the correct amount of the fee or tax by resolution, and the city clerk shall immediately notify the appellant thereof by mail, which amount, together with costs of the appeal, if the appellant is unsuccessful therein, must be paid within five days after such notice is given. (Ord. 615 § 1 (part), 1993).

5.04.320 Decision-Finality-Appeal filing.

The findings and decision of the city council shall be final and conclusive unless appeal is taken to the county superior court within ten days from the date of the decision. (Ord. 615 § 1 (part), 1993).

5.04.330 Liability of violator-Debt recovery.

(a) The amount of any unpaid fee, the payment of which is required under this chapter, shall constitute a debt due the city.

(b) The city attorney shall, at the direction of the mayor, institute a civil suit in the name of the city to recover any such unpaid fee.

(c) No civil judgment, or any act by the city attorney, the license officer, or the violator shall bar or prevent a criminal prosecution for each and every violation of this chapter. (Ord. 615 § 1 (part), 1993).

5.04.340 Late payment-Ten percent surcharge imposed.

A late payment fee of ten percent of the total license fee due shall be added to each annual license fee not paid by February 1st of the current year for each month or fraction thereof that the license fee is not paid after said date, the late charge being to help defray added administrative and collection expenses because of such late payment. (Ord. 615 § 1 (part), 1993).

5.04.350 Violation-Penalties.

A. Every person, firm or corporation convicted of a violation of any provision of this chapter shall be punished by a fine of not more than five hundred dollars.

B. For any violation of a continuing nature, each day’s violation shall be considered a separate offense and shall subject the offender to the above penalties for each offense. (Ord. 615 § 1 (part), 1993).