Chapter 5.04
LICENSE TAXES GENERALLY

Sections:

5.04.001    Evidence of doing business.

5.04.002    New businesses – Taxes – When payable.

5.04.003    Payment of license taxes does not confer license or permit rights.

5.04.010    Rates – Generally.

5.04.015    Amounts and terms to be as provided in title – Rebates.

5.04.020    Payment – Due when – Term – Delinquent when.

5.04.025    Payment – Quarterly licenses – Method.

5.04.030    Penalties for failure to pay business license tax on or before delinquency date.

5.04.040    License tax deemed debt to city – Period – Applies to licensed and unlicensed business.

5.04.045    License tax deemed debt to city – Actions for collection.

5.04.050    Assessment error not to prevent collection of tax.

5.04.060    Revocation of license – When.

5.04.065    Revocation of license – Notice required – Hearing.

5.04.070    Collection and disposition of funds collected.

5.04.080    Payment – Waiver authorized when.

5.04.085    Promotional events and charitable organizations.

5.04.090    Duplicate licenses – Fee.

5.04.140    Rates – For new businesses with fixed location in city.

5.04.145    Rates – For off-site, multiuser hazardous waste facilities.

5.04.150    Rates – For new businesses with no fixed location in city.

5.04.160    Renewal procedure – Rates.

5.04.170    New businesses – Licensing procedure.

5.04.180    Records – Inspection required – Violation – Penalty.

5.04.001 Evidence of doing business.

When any person or firm by use of signs, circulars, cards, telephone book, or newspapers advertises, holds out, or represents that such a person is conducting a business within the city, or when any person holds an active license or permit issued by a governmental agency indicating that such person is in business within the city, or when any person indicates any other evidence of transacting and carrying on business as may be defined elsewhere herein and such person fails to deny by a sworn statement given to the director of finance that he is not conducting a business within the city, after being requested to do so, then the foregoing facts shall be considered prima facie evidence that such person is conducting a business within the city.

A license issued during any prior year to the same owner, tenant, or occupant for the same place of business shall be prima facie evidence in any court or administrative proceeding that the business was continuously operated by the same person or firm from said prior year to the current year. (Ord. 2537 § 1, 1992).

5.04.002 New businesses – Taxes – When payable.

Initial business license taxes are due and payable prior to issuance of the license for which application is made. The payment of such taxes shall not in any way constitute a right or permission to begin operations of said business. However, taxes will be refunded for any business which is denied a license and never opens for operations or conducts business within the city. (Ord. 2537 § 1, 1992).

5.04.003 Payment of license taxes does not confer license or permit rights.

Payment of business license taxes is a requirement, not a license, to transact and carry on any business activity within this city. The business license tax receipt is evidence only of the fact that such tax has been paid. Neither the payment of the tax nor possession of the business tax receipt authorizes, permits or allows the doing of any act which the person paying or holding the same would not otherwise be entitled to do; and any business license, permit, variance or other instrument of approval or evidence that any conditions exists as required by any other section of this code or by any statute or code provisions of the state must first be obtained or complied with before the doing of any act or thing for which it is required. (Ord. 2537 § 1, 1992).

5.04.010 Rates – Generally.

The amount or rate of license taxes to be paid the city by any person, for transacting, engaging in, conducting, or carrying on any business, show, exhibition or game as specified in this title and CVMC 8.20.020 and 9.13.040, shall be as hereinafter provided in this title and the sections cited above. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.015 Amounts and terms to be as provided in title – Rebates.

No greater or lesser amount of money shall be charged or received for any license than is provided in this title and CVMC 8.20.020 and 9.13.030, and no license shall be sold or issued for any part of time other than is provided in this title and the sections cited above, and there shall be no rebate given for any unused portion of the term, except as in this title and the sections cited above otherwise specifically provided. (Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.020 Payment – Due when – Term – Delinquent when.

Except as otherwise provided in this code, all business license taxes shall be paid in advance, in lawful money of the United States, at the office of the director of finance; provided, however, that the licenses required to be paid by the provisions of this code shall be due and payable from and after the first day of January of each year. Such licenses shall be delinquent 30 days after the same are due and payable, except monthly or quarterly licenses which shall be delinquent 10 days after the same becomes due and payable. (Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.025 Payment – Quarterly licenses – Method.

The quarterly licenses provided in this title and CVMC 8.20.020 shall be due and payable to the city on the first days of January, April, July and October, in advance, and all such licenses shall expire with the last days of March, June, September and December of each year; provided, however, that any person desiring to do so may pay for and procure all four quarterly licenses at the time the first quarterly license becomes due and payable under the provisions of this code. (Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.030 Penalties for failure to pay business license tax on or before delinquency date.

A. For failure to pay a business license tax on or before the delinquency date, the director of finance shall add a penalty of 10 percent and shall add an additional penalty of 10 percent on the first day of each month thereafter; provided, that the amount of such penalty to be added shall in no event exceed 60 percent of the business license tax to which the penalty rates herein provided for have been applied.

B. The director of finance for good cause may extend for not more than 30 days the time for paying any sums required to be paid hereunder; provided, a written request therefor is filed with the director of finance prior to the delinquency date. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.040 License tax deemed debt to city – Period – Applies to licensed and unlicensed business.

Any person who shall commence, engage, transact and carry on any trade, calling, profession, occupation or business within the city without first having procured a business license from the city to do so shall be assessed taxes and penalties, which amount shall be calculated for the period beginning with the quarter in which the commencement of business activity within the city began and ending with the expiration of the current annual licensing period; provided, however, that the start of such period shall not exceed three years prior to the date of notification of violation. Such taxes and penalties are to be collected, and the amount thereof to be enforced, in the same manner as business license taxes are collected and the payment thereof enforced for licensed businesses. (Ord. 2537 § 1, 1992).

5.04.045 License tax deemed debt to city – Actions for collection.

The amount of any license tax imposed by this title and CVMC 8.20.020 and 9.13.030 shall be deemed a debt to the city, and any person, or any person as agent, clerk or employee, either for himself or for any other person transacting, engaging in or carrying on any business, show, exhibition or game hereinafter specified, without having a license from the city to do so, shall be liable to an action in name of the city, in any court of competent jurisdiction, for the amount of any delinquent license tax penalties, and administrative costs incurred in connection therewith, including attorneys’ fees. Court actions to collect license tax due are not limited to the current year’s tax, but may include any license tax that would have normally been due during the preceding three years. (Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.050 Assessment error not to prevent collection of tax.

In no event shall any mistake or error made by the director of finance in stating the amount of a license provided in this title and CVMC 8.20.020 and 9.13.030 prevent the collection by the city of an amount that shall be actually due from any person transacting or carrying on a business subject to a license under this title and by the section cited above. (Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.060 Revocation of license – When.

Any license for which license tax is due and payable and has become delinquent shall thereby be revoked without further action. No person shall engage in any business subject to be licensed under this title and CVMC 8.20.020 and 9.13.030, after such license has become delinquent. (Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.065 Revocation of license – Notice required – Hearing.

The director of finance shall deliver a notice in writing either personally or by mail to the person or business holding such license, stating that he or she is proposing the revocation of the license, and a brief summary of the reasons therefor. Such notice shall conform to Chapter 1.40 CVMC regarding the right to a hearing before the revocation may be made final. (Ord. 2718 § 1, 1998; Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.070 Collection and disposition of funds collected.

The director of finance shall collect all moneys specified under this title and CVMC 8.20.020 and 9.13.030 for all business license taxes and penalties and deposit these moneys into the general fund within five business days. (Ord. 2537 § 1, 1992; Ord. 1801 § 2, 1978).

5.04.080 Payment – Waiver authorized when.

A. The council may, at its option and good cause appearing therefor, waive the payment of any license tax and/or fee imposed by this title for the conducting or staging of any concert, exhibition, lecture or entertainment, the nature of which, in view of public morals and well-being, meets with the approval of the chief of police and council, and where the major portion of the net receipts, if any, derived therefrom are to be used solely for charitable or benevolent purposes within the city, and not for the purpose of private gain of any individuals.

B. The council may, at its option and good cause appearing therefor, waive the payment of any license tax and/or fee required by this title to be paid by any religious, charitable, fraternal, educational, military, state, county or municipal organization for the conducting or staging of any entertainment, dance, concert, exhibition or lecture, the nature of which, in view of public morals and well-being, meets with the approval of the chief of police and the council, where the major portion of the net receipts, if any, derived from any of the same are to be used wholly for the benefit of such organization, and not for the purpose of private gain of any individual.

C. In lieu of action by the city council, as set forth in subsections (A) and (B) of this section, the city manager is hereby authorized to issue a waiver of the payment of any license tax and/or fee imposed by this title and all activities for which a business license would be required by the city, when he has received evidence or other information which satisfies him that the conditions set forth in subsections (A) and (B) of this section exist, except that the city manager’s approval may be substituted for that of the city council, and when such application has received the written approval of the chief of police.

D. The applicant shall receive evidence of any such waiver granted under subsections (A), (B) and (C) of this section in such form as the city manager may from time to time determine. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.085 Promotional events and charitable organizations.

A. Notwithstanding any provision of this chapter to the contrary, the city council may waive the business license taxes and/or fees for those events of not more than three successive days that help to promote and publicize the city of Chula Vista. In addition, the city council may waive business license taxes and/or fees for nonprofit or charitable organizations.

B. For those events that the city council does not waive business license taxes pursuant to subsection (A) of this section and the event is sponsored by a nonprofit or charitable organization, the city council may allow that each participant obtain a temporary license for a tax as presently designated, or as may in the future be amended, in Section 5.04.075 of the master tax schedule in CVMC 5.07.030. Participants will have a choice of paying the event tax or obtaining an annual business license by paying the tax established by this title. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 2113 § 1, 1985).

5.04.090 Duplicate licenses – Fee.

The director of finance shall charge the required fee(s) for each duplicate of a license, issued under the provisions of this title and CVMC 8.20.020, which has been lost or destroyed. (Ord. 2537 § 1, 1992; Ord. 2506 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.140 Rates – For new businesses with fixed location in city.

For every person transacting, engaging in, conducting or carrying on any business within the city, which business has a fixed location in and is upon the tax rolls of the city, such person shall pay a business license tax as follows:

Except as otherwise provided herein and specifically enumerated, the tax shall be an amount as presently designated, or as may in the future be amended, in Section 5.04.140 of the master tax schedule in CVMC 5.07.030. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.145 Rates – For off-site, multiuser hazardous waste facilities.

A. Gross Receipts Tax Rate. The tax shall be equal to 10 percent of the facility’s annual gross receipts for the treatment, storage, or disposal of hazardous waste, except for that portion of the facility’s gross receipts which are derived from the recycling of hazardous wastes or the treatment of infectious wastes.

B. Payment Schedule. The business license tax for hazardous waste facilities shall be paid quarterly, in advance, in accordance with the specific provisions detailed under CVMC 5.04.010 and 5.04.020.

C. Gross Receipts – Basis for Calculating/Estimating Tax. The business license tax for a given calendar year after the first calendar year in which the facility carries on business shall be based on the actual amount of gross receipts received by the facility during the preceding tax year. The taxpayer shall submit to the finance director a certified statement, upon a form provided by the city, setting forth the actual amount of gross receipts, as defined herein, received for the preceding calendar year.

If the facility has not carried on business within the city for an entire calendar year preceding the tax period, the taxpayer shall estimate the tax due based on monthly or quarterly performance, and/or other relevant data; such tax, as estimated, shall be the tax due for that year. The taxpayer shall submit such information on the facility’s gross receipts as the finance director may require. The taxpayer shall furnish the finance director with a certified statement, showing the actual gross receipts earned, within 30 days after the expiration of the tax period for which the license was issued. The finance director shall, in turn, ascertain the actual amount due after deducting the amount paid at the time such license was first issued. Any adjustments shall be made within 30 days after such ascertainment.

D. Operative Date. The tax herewith levied shall apply commencing upon the date that the taxpayer is next required to obtain a business license. Nothing herein shall affect the effective date of the ordinance codified in this chapter.

E. Records Inspection. The provisions of CVMC 5.04.180, “Records – Inspection required – Violation – Penalty,” shall apply to instances where the business license tax is based on gross receipts.

F. Confidentiality of Information. It shall be a misdemeanor for the director of finance or any person having any administrative duty under the provisions of this chapter to make known any information contained in the application for license or obtained while performing the duties required under this section. Nothing in this section shall, however, be construed to prevent:

1. The disclosure of information as may be reasonably necessary in any proceeding brought to determine the existence or amount of any license tax liability of the particular taxpayer;

2. The disclosure of the names and addresses of persons to whom licenses have been issued and the general type or nature of their business;

3. The disclosure of general statistics pertaining to groups of businesses. (Ord. 2537 § 1, 1992; Ord. 2401 § 1, 1990).

5.04.150 Rates – For new businesses with no fixed location in city.

In the event no fixed or established place of business is maintained within the city, and except as otherwise provided herein and specifically enumerated, the tax shall be:

A. For wholesalers, an amount as presently designated, or as may in the future be amended, in Section 5.04.150 of the master tax schedule in CVMC 5.07.030;

B. For retail route deliveries and retail routemen, an amount as presently designated, or as may in the future be amended, in Section 5.04.150 of the master tax schedule in CVMC 5.07.030;

C. For all other businesses, including services, except as otherwise provided herein and specifically enumerated, as presently designated, or as may in the future be amended, in Section 5.04.150 of the master tax schedule in CVMC 5.07.030;

D. Business license taxes for businesses with no fixed location within the City will be offered on an annual or quarterly basis. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.160 Renewal procedure – Rates.

A. For every person operating any business classified under CVMC 5.04.140 and 5.04.150, who is applying for a renewal of license, such licensee shall when applying pay a license tax as presently designated, or as may in the future be amended, in Section 5.04.160 of the master tax schedule in CVMC 5.07.030. Licenses for business with no fixed location within the City may be issued on a quarterly or annual basis.

B. The provisions of this section do not apply to licenses due under Chapter 5.40 CVMC. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.170 New businesses – Licensing procedure.

A. If any person commences a new business during the calendar year, his license shall be prorated on a quarterly pro rata basis for the balance of such calendar year.

B. The provisions of this section do not apply to licenses due under Chapter 5.40 CVMC. (Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).

5.04.180 Records – Inspection required – Violation – Penalty.

In each and every instance where the amount of license tax to be paid by any person shall be based upon the number of employees or the amount or number of admissions, the licensee therein named shall on the request of the Director of Finance then and there submit for inspection to the Director of Finance any and all books, papers, accounts and records, including State and federal income tax returns, Social Security returns and State sales tax returns pertaining to the business. The license as required in this title and CVMC 8.20.020 may be based upon the amounts indicated in such books, papers, accounts and records. In the event a licensee fails to comply with the provisions of this section, such licensee shall then be liable to the penal provisions set forth in CVMC 1.20.010, and shall be liable for and shall pay an additional sum in an amount equal to 100 percent of the correct license tax, together with the correct amount of such license tax as based upon the actual number of employees for such business during the calendar year for which such license was issued. (Ord. 2408 § 1, 1990; Ord. 1801 § 2, 1978).