Chapter 5.12


5.12.010    Council discretion.

5.12.020    Exemption – Disabled veterans.

5.12.040    Interstate or foreign commerce.

5.12.050    Not-for-profit business.

5.12.060    Exemption from business taxes – Franchise taxes.

Prior legislation: Ords. 399, 558 and 911.

5.12.010 Council discretion.

The City Council, for good and satisfactory cause shown, may order the issuance of a license for less than the fees provided in Chapters 5.04 through 5.32 LEMC or without the payment of any fee whatsoever. [Ord. 1001 § 4, 1995].

5.12.020 Exemption – Disabled veterans.

A. Every honorably discharged soldier, sailor, marine, or coast guardsman of the United States, who is physically unable to obtain a livelihood by manual labor and who is a voter of this State, shall have the right to distribute circulars and hawk, peddle and vend any goods, wares, or merchandise owned by him, except spirituous, malt, vinous, or other intoxicating liquor, without payment of any license tax whatsoever, providing proof of such physical disability is furnished to the City.

B. Every such honorably discharged person, before carrying on any such business or pursuit, shall first procure from the City a license to do so, and shall be subject to all the provisions of Chapters 5.04 through 5.32 LEMC. Such license shall not extend beyond the current calendar year during which same is issued.

C. Every such honorably discharged person claiming exemption under the provisions of this chapter shall exhibit to the City his or her honorable discharge, or a certified copy thereof, together with a certificate signed by a licensed physician practicing in the City, setting forth the physical disabilities of such honorably discharged or honorably released person, and stating whether, in the opinion of such physician, the disabilities render such person physically unable to obtain a livelihood by manual labor.

D. The City may revoke any license granted pursuant to the provisions of this section, upon information that the licensee is not entitled to the exemption. [Ord. 1001 § 4, 1995].

5.12.040 Interstate or foreign commerce.

A. None of the license fees provided for in this chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitution of the United States or of the State of California.

B. In any case where a license fee is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, such person may apply to the City for an adjustment of the fee. Such application may be made before, at the time of, or within six months after, payment of the prescribed license fee. The applicant or licensee shall, by sworn statement and supporting testimony, show his method of business and the gross receipts or estimated gross receipts of such business and such other information as the City may deem necessary in order to determine the extent, if any, of undue burden or violation. The City may then conduct an investigation, and fix as the license fee for the applicant or licensee an amount that is reasonable and nondiscriminatory. If the license fee has already been paid, the City shall refund the amount over and above the license fee so fixed. Any adjusted fee fixed pursuant to this section shall not exceed the license fee prescribed for similar businesses as to which no adjustment has been made pursuant to this section.

C. The City may require the applicant or licensee to submit, either at the time of termination of applicant’s or licensee’s business in the City, or at the end of each three-month or longer period, a sworn statement of the gross receipts from sources within the City upon which the license fee adjustment has been based; provided, that no additional license fee during any one licensing year shall be required after the licensee shall have paid an amount equal to the annual license fee prescribed for businesses as to which no adjustment has been made pursuant to this section. [Ord. 1001 § 4, 1995].

5.12.050 Not-for-profit business.

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 from the payment of such taxes as are herein prescribed. Any person claiming exemption pursuant to this section shall file a sworn statement with the City stating the facts upon which exemption is claimed; provide to the City, the Secretary of State’s Certified List of Officers and an official computer printout of the status of the organization, any costs incurred from the State shall be paid by the person or organization; and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this chapter. The City 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 the business license tax required by this chapter. The City, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein.

A. 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 an individual; provided, that the applicant shall furnish proof to the City that such is the case.

B. Any enterprise or entertainment when the receipts derived therefrom are to be apportioned to any church or school or to any religious, benevolent or charitable purpose.

C. “Charity” shall include any nonprofit organization, trust or other person which solicits or obtains contributions solicited from the public for charitable purposes or holds any assets for charitable purposes. Charitable purposes include but are not limited to the improvement and advancement of public safety, education, religion, the prevention of cruelty to children and animals, environmental protection, and other benevolent purposes. Any charity described herein must be exempt from taxation pursuant to California Revenue and Taxation Code Section 23701(d) or Internal Revenue Code Section 501(c)(3). [Ord. 1001 § 4, 1995].

5.12.060 Exemption from business taxes – Franchise taxes.

Except as may be otherwise specifically provided in this chapter, the terms hereof shall not be deemed or construed to apply to any public utility which pays a franchise or similar tax to the City. [Ord. 1001 § 4, 1995].