Chapter 3.35 TAX RATES AND LICENSING

For state law authorizing city to license for purposes of revenue and regulation, see Gov. C. § 37101. As to authority of city to license in the exercise of the police power and for purpose of regulation, see B. and P.C. § 16000. As to licensing by cities generally, see B. and P.C. §§ 16000 to 16003. As to finance and taxation generally, see Chapter 3.05 SLTCC.

Article I. Business and Professions Tax

3.35.010 Purpose of chapter.

Except as specific regulatory authority is provided herein, the purpose of this chapter is to raise revenue for municipal purposes. (Ord. 336 § 1; Ord. 587 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-2. Formerly 3.35.020)

3.35.020 Effect of chapter on other provisions.

Persons required to pay a business and professions tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any business and professions tax for the privilege of doing such business required under this code or any other ordinance of the city, and shall remain subject to the regulatory provisions of such other ordinances and regulations. No city permit or entitlement of any type shall be issued to the owner, or successor, of any business if business and profession taxes, or any other monies owed the city, remain unpaid.

No business and professions tax certificate shall be issued, nor shall any suspended or revoked certificate be reinstated or reissued, to any person who, at the time of applying therefor, is indebted to the city for any business and professions tax, administrative fees, penalties, interest, or for any other taxes or payment(s) owed to the city. (Ord. 336 § 1; Ord. 832 § 1; Ord. 988 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-3. Formerly 3.35.030)

3.35.030 Rules and regulations.

The collector may make rules and regulations not inconsistent with the provisions of this article as may be necessary or desirable to aid in the enforcement of the provisions of this article. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-23. Formerly 3.35.260)

3.35.040 Certificate and tax payments required.

There are hereby imposed upon the businesses, trades, professions, callings and occupations specified in this chapter business and professions taxes in the amounts hereinafter prescribed. It shall be unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without having first procured a business and professions certificate from the city so to do and without paying the tax hereinafter prescribed when said taxes become due, or without complying with any and all applicable provisions of this chapter.

This section shall not be construed to require any person to obtain a certificate prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state. Persons not so required to obtain a certificate prior to doing business within the city nevertheless shall be liable for payment of the tax imposed by this chapter. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-4)

3.35.050 Administrative fees.

A fee shall be collected from each and every person to whom the provisions of this chapter apply. Such fee shall be calculated by the finance department of city, and ratified by resolution of the city council.

Administrative fees shall be calculated based upon the cost of administering the business and professions tax collection program, and shall not exceed the reasonable costs of such program administration. (Ord. 777 § 2; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-4.1)

3.35.060 Separate certificate for each place of business.

A separate business and professions tax certificate must be obtained for each branch establishment or location of the business transacted, and each certificate shall authorize the certificate holder to transact and carry on only the business for which the certificate has been issued.

Warehouses and distributing plants used in connection with and incidental to a business certified under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments, and shall not be required to pay any additional business and professions tax. (Ord. 336 § 1; Ord. 781 § 4; Ord. 832 § 1; Ord. 1109¹ § 1 (Exh. A). Code 1997 § 15-5. Formerly 3.35.060)

3.35.070 Evidence of doing business.

When any person shall by use of signs, circulars, cards, telephone book or newspapers advertise, hold out or represent that he is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he is in business in the city, and such person fails to deny by a sworn statement given to the collector that he is not conducting a business in the city, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that he is conducting a business in the city. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-6. Formerly 3.35.090)

3.35.080 Application – Contents of certificate.

Every person required to have a certificate under the provisions of this chapter shall make application as hereinafter prescribed for the same to the collector of the city, and upon the payment of the prescribed business and professions tax the collector shall issue to such a person a certificate which shall contain the following information:

A. The name of the person to whom the certificate is issued;

B. Federal Tax ID number, social security number or employer identification number;

C. The business name;

D. The place where such business is to be transacted and carried on;

E. The date of the expiration of such certificate;

F. Such other information as may be necessary for the enforcement of the provisions of this chapter.

Whenever the tax imposed under the provisions of this chapter is measured by the number of vehicles, devices, machines or other pieces of equipment used, or whenever the business and professions tax is measured by the gross receipts from the operation of such items, the collector shall issue only one certificate. (Ord. 336 § 1; Ord. 777 § 4; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-9. Formerly 3.35.120)

3.35.090 Application – First certificate and sworn statement.

Upon a person making application for the first certificate to be issued hereunder or for a newly established business, such person shall furnish to the collector a sworn statement, upon a form provided by the collector, setting forth the following information:

A. The exact nature or kind of business for which a certificate is requested.

B. The place where such business is to be carried on, and if the same is not to be carried on at any permanent place of business, the places of residences of the owners of same.

C. In the event that application is made for the issuance of a certificate to a person doing business under a fictitious name, the application shall set forth the names and places of residences of those owning such business.

D. In the event that the application is made for the issuance of a certificate to a corporation or a partnership, the application shall set forth the names and places of residence of the officers or partners thereof, owners, and registered agent for service of process.

E. In all cases where the amount of business and professions tax to be paid is measured by gross receipts, the application shall set forth such information as may be therein required and as may be necessary to determine the amount of the tax to be paid by the applicant.

F. Every person, firm or corporation conducting, managing, or carrying on the business of leasing or renting commercial or industrial building(s), land or space(s), where the building(s), land or space(s) are to be utilized for any business purpose including retail sales, offices and suites or other business rentals including mini-storage; or freight forwarding storehouse(s) and warehouse(s); or operating hotel(s) or motel(s), roominghouse(s),

boardinghouse(s), apartment house(s), mobile home park(s); or leasing or renting any residential dwelling consisting of two or more units, shall obtain a business and professions certificate and pay a fee as set forth in SLTCC 3.35.280 and 3.35.300.

All businesses which conduct, manage or carry on the business of leasing or renting of commercial or industrial building(s), land or space(s) which are to be utilized for any business purpose, shall furnish, upon the request of the collector, a list of tenants or lessees for all such buildings to the collector. The list of tenants shall be included with the business and professions certificate application or renewal application of the management company. The list of tenants shall include reference to the business’ business and professions tax identification number.

The intent of this section is to increase compliance with the requirement that a business and professions certificate be obtained for the business of rental or leasing of real property including commercial or industrial building(s), land, for renting or leasing office(s), suite(s) or other business rental(s), and for renting or leasing dwelling units.

G. Any further information which the collector may require to enable him to issue the type of certificate applied for.

If the amount of the business and professions tax to be paid by the applicant is measured by gross receipts, he shall estimate the gross receipts for the period to be covered by the certificate to be issued. Such estimate, if accepted by the collector as reasonable, shall be used in determining the amount of business and professions tax to be paid by the applicant; provided, however, that the amount of the tax so determined shall be tentative only, and such person shall, upon the request of the collector, furnish a sworn statement, showing the gross receipts during the period of such certificate, and the tax for such period shall be finally ascertained and paid in the manner provided by this chapter for the ascertaining and paying of renewal taxes for other businesses, after deducting from the payment found to be due the amount paid at the time such first certificate was issued.

The collector shall not issue to any such person another certificate for the same or any other business, until such person shall have furnished to him the sworn statement and paid the business and professions tax as herein required.

H. The applicant has obtained and possesses a valid South Lake Tahoe Development Services Zoning Clearance Form. (Ord. 336 § 1; Ord. 832 § 1; Ord. 988 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-10. Formerly 3.35.130)

3.35.100 Application – Renewal certificate.

In all cases, the applicant for the renewal of a certificate shall submit to the collector for his guidance in ascertaining the amount of the business and professions tax to be paid by the applicant a sworn statement, upon a form to be provided by the collector, setting forth such information concerning the applicant’s business during the preceding year as may be required by the collector to enable him to ascertain the amount of the tax to be paid by such applicant pursuant to the provisions of this chapter. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-11. Formerly 3.35.140)

3.35.110 Constitutional apportionment.

None of the taxes provided for by 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 Constitutions of the United States and the state.

In any case where a business and professions tax is believed by an applicant for a certificate to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he may apply to the collector for an adjustment of the tax. Such application may be made before, at or within six months after payment of the prescribed tax. The applicant shall, by sworn statement and supporting testimony, show his method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary in order to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation and, after having first obtained the written approval of the city attorney, shall fix as the business and professions tax for the applicant, an amount that is reasonable and nondiscriminatory, or, if the tax has already been paid, shall order a refund of the amount over and above the tax so fixed. In fixing the business and professions tax to be charged, the collector shall have the power to base the tax upon a percentage of gross receipts or any other measure which will assure that the tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the tax as prescribed by this chapter. Should the collector determine the gross receipts measure of business and professions tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the city, or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of tax therefor; provided, that no additional tax during any one calendar year shall be required after the business shall have paid an amount equal to the annual tax as prescribed in this chapter. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-7. Formerly 3.35.100)

3.35.120 Sworn statement not conclusive.

No sworn statement submitted by an applicant pursuant to this chapter shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector. Whenever the collector shall have reason to believe that a sworn statement does not set forth the true facts upon which the issuance of a business tax certificate is required, said department may withhold the issuance of a business tax certificate therefor until such time as the applicant shall furnish satisfactory evidence of the truth of the statement. If such evidence is not furnished within a reasonable time, or should it at any time appear that by reason of error, misrepresentation, fraud, or any other cause whatsoever, the business tax has not been properly fixed for any business tax certificate issued, said finance department shall give not less than five business days’ written notice to the taxpayer to show cause, at a time and place fixed in said notice, why a business tax to be determined by the finance department and specified in said notice, should not be fixed for such business and professions certificate. At such hearing the taxpayer shall appear and offer evidence why such specified business tax should not be fixed as the business tax. After such hearing, or in the event the taxpayer fails to appear, the finance department shall determine the proper business tax to be charged and shall forthwith give written notice to the taxpayer of such determination and the amount of such business tax.

All records which may be necessary to inspect shall be kept within the city or shall be produced upon 10 working days’ notice at the business location within the city or at the administrative offices of the city. In the event that records are not produced upon request, or such records are not reasonably auditable, business and professions tax, penalties, and interest will be levied based upon the reasonable gross receipts for similar classes of business subject to these provisions, or upon the subject business’s prior year’s or last reported gross receipts, at the option of the finance director or his/her designee.

Further, and without limitation, any business who does not produce records following written notice as set forth herein shall pay, in addition to any business and professions tax, penalties, and interest due, the sum of $100.00 per business day for each day the records are not produced for audit.

Records acceptable shall include but not be limited to the following:

A. The statement below on certified public accountant’s (CPA) letterhead and signed by the CPA with his/her license number:

Business Name:____________________

Owner Name:______________________

The gross receipts rounded to the nearest $1,000 in the amount of $__________________ as shown on the city of South Lake Tahoe Business and Professions Tax Form for the period ending June 30, _______, agree with the amount shown on the Federal Income Tax Return form _________ for the period ending ______________.

_______________________

(Name)

License No. and State

B. Under Section 19286 of the California Revenue and Taxation Code authorizing the release of a taxpayer’s income to proper tax officials of the state, a copy of the portion of the federal tax return confirming the gross receipts for the period in question.

C. The actual books and records supporting the financial condition of the business. (Ord. 336 § 1; Ord. 832 § 1; Ord. 988 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-12. Formerly 3.35.150)

3.35.130 Information confidential.

Except as provided otherwise herein, the statements filed pursuant to the provisions of this chapter shall be deemed confidential in character and 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 of this chapter; and provided, that nothing in this section shall be construed to prevent:

A. The disclosure to, or the examination of records and equipment by, another city official, employee or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter, or collecting taxes imposed hereunder.

B. The disclosure of information to, or the examination of records by, federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists or to a grand jury or court of law, upon subpoena.

C. The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to a court of law in a proceeding brought to determine the existence or amount of any business and professions tax liability of the particular taxpayers to the city.

D. The disclosure after the filing of a written request to that effect to the taxpayer himself, or to his successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, however, that the city attorney approves each such disclosure and that the collector may refuse to make any disclosure referred to in this subsection when in his opinion the public interest would suffer thereby.

E. The disclosure of the names and addresses of persons to whom certificates have been issued, and the general type or nature of their businesses.

F. The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of business and profession taxes, or submits an offer of compromise with regard to a claim asserted against him by the city for taxes, or when acting upon any other matter.

G. The disclosure of general statistics regarding taxes collected or business done in the city.

H. The disclosure of information and results of examination of records of particular taxpayers, or relating to particular taxpayers, to persons who have a written contractual agreement and/or nondisclosure agreement to provide professional services for cost apportionment and fee analysis for the formation of assessment districts, business improvement districts and property improvement districts that will fund improvements and services that confer special benefits on the businesses, residential and commercial properties for whose information and records are disclosed pursuant to this provision. (Ord. 336 § 1; Ord. 832 § 1; Ord. 940 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-13. Formerly 3.35.160)

3.35.140 Extension for time of filing.

In addition to all other power conferred upon him, the collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not to exceed 30 days, and in such case to waive any penalty that would otherwise have accrued, except that interest at the rate of one and one-half percent per month, or a fraction thereof, shall be added to any tax determined to be payable. (Ord. 336 § 1; Ord. 777 § 5; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-15. Formerly 3.35.180)

3.35.150 Duplicate certificate.

A duplicate certificate may be issued by the collector to replace any certificate previously issued hereunder which has been lost or destroyed upon the business filing statement of such fact, and at the time of filing such statement paying to the collector a duplicate certificate fee to be set by the city manager. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-17. Formerly 3.35.200)

3.35.160 Business and professions tax – Time and manner of payment.

Unless otherwise specifically provided, all annual taxes, under the provisions of this chapter shall be due and payable in advance on the first day of July of each year or on the day the business commences operations for the first time, whichever is later. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-19. Formerly 3.35.220)

3.35.170 Notice or bill by finance director.

The finance director is not required to send a notice or bill to any person subject to the provisions of this article, and the failure to send such notice or bill shall not affect the validity of any fee or penalty due hereunder, or the duty of such person to pay required taxes. (Ord. 1109 § 1 (Exh. A))

3.35.180 Posting and display.

A. Any business transacting and carrying on business at a fixed place of business in the city shall keep the business and professions tax certificate posted in a conspicuous place upon the premises where such business is carried on.

B. Any business transacting and carrying on business but not operating at a fixed place of business in the city shall keep the business and professions tax certificate upon his person at all times while transacting and carrying on the business for which it is issued.

C. Each certificate holder shall at all times when requested exhibit said certificate to any police officer or other official of the city of South Lake Tahoe. (Ord. 336 § 1; Ord. 761 § 1; Ord. 777 § 6; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-18. Formerly 3.35.210)

3.35.190 Certificate nontransferable.

No certificate issued pursuant to this chapter shall be transferable to any person or entity including new owners of any business; provided, that where a certificate is issued authorizing a person to transact and carry on a business at a particular place, such business may upon application therefor and paying a fee in an amount set by the city manager have the certificate amended to authorize the transacting and carrying on of such business under such certificate at some other location to which the business is or is to be moved. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-16)

3.35.200 Business and professions tax – Penalty for delinquent payment.

A. Penalties. Any business who fails to remit the business and professions tax and administrative fee when due, shall pay a penalty of 10 percent of such business and professions tax and administrative fee on the first day of each month after the due date of the business and professions tax; providing, that the amount of such penalty to be added shall in no event exceed 100 percent of the amount of the business and professions tax and administrative fee due.

B. Interest on Delinquencies. In addition to the penalties imposed, any business who fails to remit the business and professions tax and administrative fee shall pay interest at the rate of one and one-half percent per month or fraction thereof on the amount of the business and professions tax, administrative fee and penalties from the date on which the amount first became delinquent until paid.

C. Fraud. If the collector determines that the nonpayment of any business and professions tax and administrative fee due under this article is due to fraud, a penalty of 25 percent of the amount of tax shall be added thereto in addition to the penalties stated in subsections (A) and (B) of this section.

D. Penalties and Interest Merged with Tax. Every penalty imposed and such interest as accrued under the provisions of this section shall become a part of the tax required to be paid, but shall in no case be construed to be limited by any cap established within this chapter or attendant resolution. The city attorney may, within his or her duties to settlement disputes in anticipation of litigation, waive penalties and interest.

E. Certificates and Installment Payment Agreements. No business and professions tax certificate shall be issued, nor shall any suspended or revoked certificate be reinstated or reissued, to any person, who at the time of applying therefor, is indebted to the city for any delinquent business and professions tax, administrative fees, penalties, or interest unless such person, with the consent of the collector, enters into a written agreement with the city, through the collector, to pay such delinquent amounts in installments as provided in SLTCC 3.20.130.

In any agreement so entered into, such person shall acknowledge the obligation owed to the city and agree that, in the event of failure to make timely payment of any installment, the whole amount unpaid shall become immediately due and payable and that his current business and taxation certificate shall be revocable by the collector upon 30 days’ notice. The execution of such an agreement shall not prevent the prior accrual of penalties and interest on unpaid balances at the rate provided hereinabove but no penalties and interest shall accrue on account of taxes and fees included in the agreement, after the execution of the agreement, and the payment of the first installment and during such time as such person shall not be in breach of the agreement.

F. Charge for Audits and Collection of Attorney’s Fees. A reasonable per hour fee equal to the city’s costs for the audit of business and professions tax accounts shall be charged to the owner of the business where unpaid taxes are discovered as a result of the audit. If the city is the prevailing party in litigation filed to collect taxes, penalties, and/or interest due under this chapter, the city shall be entitled to recover reasonable attorney’s fees and costs engendered by said litigation from the owner of the business. (Ord. 336 § 1; Ord. 777 § 7; Ord. 796 § 2; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-20. Formerly 3.35.230)

3.35.210 Refunds of overpayments.

No refund of an overpayment of taxes imposed by this chapter shall be allowed in whole or in part unless a claim for refund is filed with the collector within a period of three years from the last day of the calendar month following the period for which the overpayment was made, and all such claims for refund of the amount of the overpayment must be filed with the collector on forms furnished by him/her. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-21. Formerly 3.35.240)

3.35.220 Enforcement.

It shall be the duty of the finance director, who is hereby directed to enforce each and all of the provisions of this chapter, and the chief of police to render such assistance in the enforcement of the provisions of this article.

A. The finance director, in the exercise of the duties imposed hereunder, and acting through his/her deputies or duly authorized employees or assistants, shall examine or cause to be examined all places of business in the city to ascertain whether the provisions of this chapter have been complied with.

B. The finance director, in the exercise of the duties imposed hereunder, and acting through his/her deputies or duly authorized employees or assistants and any police officer shall have the power and authority to enter, free of charge, and at any time the establishment is open for business, any area made available to the public of any place of business required to be issued a certificate herein, and demand an exhibition of its certificate.

C. Any person having such certificate issued under this article, in his/her possession or under his/her control, who willfully fails to exhibit the same on demand, or any person who fails to obtain such certificate, shall be guilty of a misdemeanor, and may be cited. It shall be the duty of the finance director, in the exercise of the duties imposed hereunder, and acting through his/her deputies or duly authorized employees or assistants to cause a complaint to be filed against any and all persons found to be violating any of such provisions.

D. The finance director, in the exercise of the duties imposed hereunder, and acting through his/her deputies or duly authorized employees or assistants shall have the power to examine all necessary books and records of any person doing business in the city to determine whether that business is required to be taxed by the terms of this article, or for the purpose of ascertaining the amount of any tax required to be paid by the provisions hereof.

E. Whenever any person(s) subject to the provisions of this chapter fails to comply with any provision of this chapter relating to business and professions taxes, administrative fees, or any rule or regulation of the finance director or his/her designee relating to business and professions tax and/or administrative fees prescribed and adopted under this chapter, the finance director or his/her designee can upon hearing, after giving said person(s) 15 days’ written notice of the time and place of hearing and requiring him/her to show cause why his/her certificate or certificates should not be revoked may suspend or revoke any one or more of the certificates held by the persons subject to the provisions of this chapter. The finance director or his/her designee shall give to said person(s) written notice of the suspension or revocation of any of these certificates. The notices herein required shall be served personally or by first class mail, postage prepaid. The finance director or his/her designee shall not issue a new certificate after the revocation of a certificate unless he/she is satisfied that the former holder of the certificate will comply with the provisions of this chapter relating to the business and professions tax, administrative fees and regulations of the finance director.

F. During any period of time during which a certificate has not been issued, or is suspended, revoked or otherwise not validly in effect, the finance director or his/her designee may order that the business be closed. The closure can only be ordered after a hearing held upon 15 days’ written notice of the time and place of the hearing to the business/person(s) subject to the closure, requiring him/her to show cause why his/her business should not be closed. The notice herein required shall be served personally or by first class mail, postage prepaid.

G. Any person aggrieved by a decision of the finance director with respect to the issuance or refusal to issue a certificate, the suspension or revocation of any certificate, or the closure of any business may appeal said decision pursuant to Chapter 2.35 SLTCC. (Ord. 336 § 1; Ord. 770 § 1; Ord. 832 § 1; Ord. 988 § 1; Ord. 1105 § 1 (Exh. B); Ord. 1109 § 1 (Exh. A). Code 1997 § 15-24. Formerly 3.35.270)

3.35.230 Suit for recovery of unpaid sums.

The amount of any business and professions tax, administrative fees, penalties and interest imposed by the provisions of this chapter shall be deemed a debt to the city. An action may be commenced in the name of such city in any court of competent jurisdiction, for the amount of any delinquent tax, administrative fees, and/or penalties and interest. (Ord. 336 § 1; Ord. 777 § 8; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-25. Formerly 3.35.280)

3.35.240 Remedies cumulative.

All remedies prescribed hereunder shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-26. Formerly 3.35.290)

3.35.250 Effect of chapter on past actions and unexpired certificates.

Neither the adoption of this chapter nor its superseding of any portion of any other ordinance of the city shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date hereof, nor be construed as a waiver of any certificate or any penal provisions 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.

Where a certificate for revenue purposes has been issued to any person by the city and the tax paid for the business for which the certificate has been issued under the provisions of any ordinance heretofore enacted and the term of such certificate has not expired, then the tax prescribed for such business by this chapter shall not be payable until the expiration of the term of such unexpired certificate. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-27. Formerly 3.35.300)

3.35.260 Appeals.

Any person aggrieved by a decision of the tax collector with respect to action taken under this chapter may appeal pursuant to Chapter 2.35 SLTCC. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1105 § 1 (Exh. B); Ord. 1109 § 1 (Exh. A). Code 1997 § 15-14. Formerly 3.35.170)

3.35.270 Exemptions.

No person engaged in any business described in this section shall be required to pay any tax or fee prescribed in this chapter, and such persons are exempted from payment thereof, as long as such persons can furnish documentation to the finance director or his/her designee establishing that.

Any person claiming an exemption pursuant to this section shall file a sworn statement with the collector 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 chapter.

The collector shall, upon a proper showing contained in the sworn statement, issue a certificate to such person claiming exemption under this section without payment to the city of the business and professions tax required by this chapter.

The collector, after giving notice and a reasonable opportunity for a hearing to the business, may revoke any certificate granted pursuant to the provisions of this section upon information that the business is not entitled to the exemption as provided herein.

The following businesses are hereby declared to be exempt by this section:

A. Charitable and Nonprofit Organizations. Any church, school, charitable, benevolent or social organization conducting any exhibition, show or performance for the exclusive benefit of such organization. Also any such organization conducting any sale or business for the exclusive benefit of such organization provided such organization is located within the corporate limits of the city. This exemption shall not apply to any person operating any business, show, sale, exhibition or enterprise for profit who shares such profit with any such organization.

B. Conflict with Federal and State Law. Any business exempt by virtue of the Constitution or applicable statutes of the United States or of the state from the payment to municipal corporations of such taxes as are prescribed by this chapter.

C. Employees. No person who is an employee or who is the direct representative of a business shall be required to pay a business and professions tax for doing any part of the work of such business.

D. Nurses. Nurses who work directly with a patient under a contract with the patient.

E. Single-Family Dwellings. No person owning, renting, or leasing out a single-family dwelling, as defined in SLTCC 3.00.010, shall be required to pay a business and professions tax.

F. Teachers. Teachers or instructors giving individual instruction where all of the following conditions exist:

1. Instructions are given only in the homes of the teacher or instructor or student.

2. Instruction is not given to groups in excess of four.

3. Concerts, recitals, exhibits or other similar events are not held.

4. Instruction is given only in the main building.

5. The teacher or instructor shall have no employees.

6. The teacher or instructor shall not be required to hold a sales tax permit for the conduct of business.

G. Minors. Businesses owned and conducted by minors under the age of 16 where all of the following conditions exist:

1. All persons engaged in the operation of the business shall be under the age of 16 years.

2. All persons engaged in the operation of the business shall have a bona fide ownership interest in the business.

H. Newspaper Vending Machines. Newspaper vending machines wherein periodicals published at least once each week are dispensed or sold upon the insertion of a coin or coins. (Ord. 336 § 1; Ord. 777 § 3; Ord. 796 § 2; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-8. Formerly 3.35.110)

Article II. Tax Rates and Classification

3.35.280 Business and professions tax rates – Gross receipts.

Businesses classified within the following schedules shall pay business license fees per $1,000 of gross receipts as follows:

Schedule A:	In an amount set by resolution of the city council, consistent with the voter approved rates.
Schedule B:	In an amount set by resolution of the city council, consistent with the voter approved rates.
Schedule C:	In an amount set by resolution of the city council, consistent with the voter approved rates.
Schedule D:	In an amount set by resolution of the city council, consistent with the voter approved rates.
Schedule E:	In an amount set by resolution of the city council, consistent with the voter approved rates.

Taxes imposed by this section and administrative fees assessed pursuant to SLTCC 3.35.050 shall not exceed in total the sum of $20,000 for any business location in any calendar year. Penalties and interest shall be in addition to business license fees and administrative fees.

The rates set forth herein shall be applicable to every business made subject to a tax based upon gross receipts by this code. The city manager or his/her designee shall annually calculate the increased amounts authorized by this section and shall publish those calculations in the manner required by law. (Ord. 336 § 1; Ord. 777 § 9; Ord. 781 § 7; Ord. 796 § 4; Ord. 832 § 1; Ord. 925 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-28. Formerly 3.35.310)

3.35.290 Reporting of total gross receipts required.

Irrespective of the maximum tax imposed, all persons subject to this chapter shall report total gross receipts. (Ord. 777 § 10; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-28.1. Formerly 3.35.320)

3.35.300 Business and professions tax – Classification.

Except where a business shall be specifically taxed pursuant to another section of this chapter, every person conducting, managing or carrying on any business at a fixed place of business within the city shall pay an annual business and professions tax, based upon gross receipts as follows:

A. Business and Professions Classifications under Tax Rate Schedule A. The following businesses shall pay a tax based upon Tax Rate Schedule A:

1. Bowling Alley. Businesses conducting, managing or carrying on any public amusement room, business or parlor wherein bowling alleys are kept or maintained for use by the public.

2. Cutlery Sharpening – Door-to-Door. Businesses which provide for the grinding or sharpening of scissors, razors, knives, cutlery or mechanical tools, when the person conducting such business travels from place to place or from house to house.

3. Financial Lending Institutions. Businesses where the principal business activity is the loaning of money, advancing of credit, or loaning of credit or arranging for the loan of money or advancing of credit or loaning of credit and not otherwise specifically issued a certificate by other section of this chapter.

4. Flower Stands/Nurseries. Businesses operating or maintaining a flower stand in or upon any public street, alley, or other public place, for the purpose of selling flowers, plants, ferns or other nursery stock.

5. Newsstands. Businesses operating or maintaining any newsstand in or upon any public street, alley or other public place, for the sale of newspapers, periodicals or magazines.

6. Peddlers and Solicitors. Every person, whether a resident of the city or not, when traveling from place to place, from house to house, or from street to street, whether in response to an invitation or not, for the purpose of selling, or taking orders for the sale of any form or kind of goods, produce, merchandise, printed matter or services, shall first pay a tax in accordance with this chapter.

7. Printer/Engraving. Businesses operating or maintaining a card writer’s stand in or upon any public street, alley or other public place, for the purpose of writing, printing or engraving any cards, invitations or announcements, or for taking orders for the same.

8. Retail. Businesses consisting primarily of selling at retail, or engaged in any trade, occupation, calling or business not otherwise specifically issued a certificate by other sections of this chapter.

9. Shoeshine. Businesses operating or maintaining a shoeshine stand or parlor.

10. Sidewalk Vendors. Businesses operating or maintaining any stand in or upon any public street, alley or other public place for the sale of candy, peanuts, popcorn, chewing gum, ice cream or other confections, or for sharpening razors or performing other mechanical work.

11. Theaters. Businesses which conduct, manage or carry on a theater where moving or motion pictures, legitimate theater or vaudeville shows are exhibited, whether indoors or outdoors.

B. Business and Professions Classifications under Tax Rate Schedule B. The following types of businesses shall pay an annual tax based upon Tax Rate Schedule B:

1. Advertising – Amplification Technology. Businesses which advertise by means of any vehicle containing amplifiers, phonograph, loudspeakers, microphone, broadcasting radio or a device for public address or carrying advertising signs, and which is used for announcing or advertising upon the public streets or public grounds in the city.

2. Advertising – Graphics. Businesses which consist primarily of advertising by posting, sticking, tacking, affixing or painting bills or signs to or upon posts, fences, buildings, or other structures, except billboards or advertising signboards.

For the purpose of this subsection, the word “business” is defined as, and is construed to mean, the doing or performing of any act or series of acts of advertising by means or any manner in this section specified, or the doing or performing of any act or series of acts of posting, sticking, tacking, affixing or painting bills or signs to or upon posts, fences, buildings or other structures, except billboards or advertising signboards; provided, that nothing contained in this section shall be construed to affect or apply to any person posting, sticking, tacking, affixing, painting or erecting any business sign on the premises or building occupied and used in the business of such person, and which sign advertises the goods or business of such person.

3. Advertising – Visual Technology. Businesses which advertise by means of stereopticon, biograph, moving picture or any similar device.

This subsection shall not apply to theaters issued a certificate under this chapter.

For purposes of this subsection, the word “business” is defined as, and is construed to mean, the doing or performing of any act or series of acts of any advertising in any manner or by any means specified in this section.

4. Amusement – Billiards. Businesses consisting of a public amusement room, business or parlor, wherein billiard tables are kept or maintained for use by the public.

5. Amusement – Generally. Businesses consisting of a public amusement room, business or parlor other than a theater, show, theatrical performance or other type of amusement or recreation elsewhere described in this chapter, wherein no pool tables or bowling alleys are kept or maintained.

6. Amusement – Skating. Businesses operating any roller or ice skating rink, enclosure or park.

7. Auto Wrecking. Businesses engaged in auto wrecking, which shall be defined as and construed to mean and include any person who buys any motor vehicle for the purpose of dismantling or disassembling, or who dismantles or disassembles any such motor vehicle whether for the purpose of dealing in the parts thereof or using the same for the purpose of reconditioning any other vehicle, or for the purpose of selling or otherwise dealing in the materials of such vehicles.

8. Automobile Rental. Businesses renting the use of any automobile for the transportation of persons, to be driven by the person hiring or renting the same, at rates per mile, per trip, per hour, per day, per week or per month, and such vehicle is routed under the direction of the person hiring the same.

9. Bath Houses. Businesses providing steam baths, electric light baths, electric tub baths, shower baths, sponge baths or operating any public bath which maintains in connection therewith a steam room, plunge, bath or sleeping accommodations.

10. Bicycle Rental. Businesses renting bicycles or other vehicles propelled by human power or drawn by animals.

11. Building Contractor. Businesses required to be licensed as a general contractor by the state or which undertake to or offer to undertake to or purport to have the capacity to undertake to or submit a bid to or do, either by themselves or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith, defined as a contractor.

This subsection shall not apply to specialty building contractors. (See Tax Rate Schedule C).

12. Delivery Service. Every person not having a fixed place of business within the city who delivers goods, wares or merchandise or any kind by vehicles, other than a certificated highway carrier on a regular route, or who provides any service by the use of vehicles in the city, and who is not otherwise issued a certificate under the provisions of this chapter, shall pay an annual business and professions tax as set forth in Tax Rate Schedule B; provided, that no such tax shall be required where such service is occasional or incidental to business conducted elsewhere. For the purposes of this section, such service shall not be deemed occasional or incidental to business conducted elsewhere where trips or hauls are made beginning or ending at points within the city upon an average of once a week in any calendar quarter. Any person having an established route within the city or servicing regular customers on a periodic basis shall not be deemed to be occasional or incidental to business conducted elsewhere.

13. Junk Collectors. Businesses engaged in junk collecting, which shall be defined as any person other than a junk dealer, engaged in the business of buying or selling, at either wholesale or retail, of rags, bottles, papers, cans, metals or other articles of junk.

14. Junk Dealing. Businesses engaged in junk dealing, which shall be defined as any person having a fixed place of buying or selling, whether at wholesale or retail, or storing on any premises, any rags, sacks, bottles, cans, papers, metals or other articles of junk.

15. Manufacturing/Packing. Businesses where the principal business activity is manufacturing, packing, processing, carrying or selling at wholesale any goods, wares, merchandise or produce.

16. Pawnbroker. Businesses engaged in the activities of a pawnbroker, which shall be defined as any person conducting, managing or carrying on the business of loaning money, either for himself or for any other person, upon any personal property, personal security or purchasing personal property to the vendor or other assignee at prices previously agreed upon. Nothing in this subsection shall be deemed to apply to the loaning of money on personal property or personal security by any bank authorized to do so under the laws of the state or of the United States.

17. Property Management/Transient Lodging. Businesses consisting of the rental or leasing of real property where the rental units are located on one parcel of property, whether such rental units be commercial stores or office, permanent dwellings consisting of two or more units, transient occupancy facilities (as such term is defined in SLTCC 3.50.050), warehouses, mobile home or travel trailer parks, campgrounds or any other type of rental unit and whether the rental or leasing by the day, week, month or year or other period of time.

18. Recreational Vehicle Rentals. Businesses renting off-road vehicles and sleds which are self-propelled.

19. Services – Generally. Businesses where the principal business activity is the furnishing of services and where such business is not specifically issued a certificate by other sections of this chapter.

20. Trailer Rental. Businesses renting the use of trailers designed to be attached to motor propelled vehicles.

21. Transportation – Generally. Businesses transporting for hire passengers in a motor propelled vehicle over a defined route, which vehicle receives and discharges passengers along the route.

22. Transportation – Tours. Businesses transporting for hire passengers for purposes of sightseeing tours.

23. Truck Rental. Businesses renting the use of any truck or automobile for the transportation of materials, commodities or products, or the transportation of any other object, to be driven by the person hiring the same at rates per mile, per trip, per hour, per day, per week or per month, and the truck or automobile is routed under the direction of the person hiring the same.

24. Vehicle Rental – Miscellaneous. Businesses renting the use of any motor propelled vehicle having less than four wheels for the transportation of persons or property, to be driven by the person hiring or renting the same at rates per trip, per hour, per day, per week, per month or per year, and such vehicle is routed under the direction of the person hiring the same.

25. Vending Machines. Businesses engaged in, managing, conducting or carrying on the business of leasing, letting the use of, renting and maintaining any vending, weight or merchandise machine or device, not otherwise issued a certificate under this chapter, where coins are inserted.

Stamp vending machines selling or dispensing postage stamps of the United States for mailing purposes are hereby exempt from the terms and provisions hereof.

26. Real Estate Brokers/Agencies. Each real estate broker shall be assessed the annual business tax on behalf of themselves and all other real estate professionals doing business under their brokerage license including agents, employees, and independent contractors.

27. Dance Studios. Professional instruction in dance.

C. Business and Professions Classifications under Tax Rate Schedule C. The following types of businesses shall pay an annual tax based upon Tax Rate Schedule C:

1. Amusement Park. Businesses engaged in conducting and maintaining an amusement park or center not containing a bowling alley, poolroom or billiard parlor, on a permanent basis.

2. Amusement – Shooting Galleries/ Arcades. Businesses comprised of a shooting gallery, shooting range, archery range, or carrying on any game of ball rolling or any game or games of skill or science, not otherwise specifically provided for in this chapter, in which a charge is paid for participating therein.

3. Beauty/Barber Shops. Each barber shop and each beauty shop, and each barber and beautician in a shop operated under conditions wherein the barbers and beauticians are not employees but are independent contractors.

4. Building Contractors – Specialty. Businesses required to be licensed as a specialty contractor by the state or which undertake to, or offer to undertake to, or purport to have the capacity to undertake projects for which a specialty contractor license is required.

5. Child Care. Each child nursery having facilities for six or more children.

6. Dance Halls. Businesses engaged in conducting public dances, dance halls, or cabaret dances.

7. Taxi Service. Businesses engaged in carrying of passengers for hire in vehicles. For purposes of this subsection, taxi service shall be construed to mean those businesses where drivers are furnished by the person conducting the business or an independent contractor operating with a leased vehicle provided by another person or entity.

D. Business and Professions Classifications under Tax Rate Schedule D. The following types of businesses shall pay an annual tax based upon Tax Rate Schedule D:

1. Professionals. Businesses consisting of any of the following professions: accountants; architects; attorneys; chiropodists; chiropractors; civil engineers; dentists; funeral directors and embalmers; land surveyors; optometrists; osteopaths; physical therapists; physicians and surgeons.

2. Schools of Instruction. Businesses operating a school of instruction.

E. Business and Professions Classifications under Tax Rate Schedule E. The following types of businesses shall pay an annual tax based upon Tax Rate Schedule E:

1. None currently in this classification. (Ord. 336 § 1; Ord. 777 § 11; Ord. 781 § 9; Ord. 796 §§ 5, 6; Ord. 832 § 1; Ord. 1073 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 15-29. Formerly 3.35.330)

3.35.310 Business and professions tax – Reclassification and appeal.

In any case where a person or an applicant for a certificate believes that his individual business is not assigned to the proper classification under this chapter because of circumstances peculiar to it, as distinguished from other businesses of the same kind, he may appeal for a reclassification pursuant to Chapter 2.35 SLTCC. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1105 § 1 (Exh. B); Ord. 1109 § 1 (Exh. A). Code 1997 § 15-30. Formerly 3.35.340)

3.35.320 Businesses outside of city.

Every person not having a fixed place of business within the city who engages in business within the city and is not subject to the provisions of any other section of this chapter shall pay a business and professions tax at the same rate prescribed herein for persons engaged in the same type of business and having a fixed place of business within the city. (Ord. 336 § 1; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-32. Formerly 3.35.350)

3.35.330 Special tax rates applied.

The following businesses shall pay a special business and professions tax rate as set forth herein:

A. Advertising – Billboards/Signs. Every person conducting, managing or carrying on the business of billposting, advertising by means of electric signs or sign advertising by means of billboards or advertising signboards shall pay an annual license tax of $100.00.

Nothing contained in this subsection shall be deemed or construed as applying to the owners of real estate or their agents in advertising their property for sale or lease by means of billboards or advertising signboards situated upon the property advertised for sale or lease by such billboards or advertising signboards.

B. Concessionaires. Every person conducting, managing or carrying on any business as a concession in the premises of a business issued a certificate under this chapter shall obtain a certificate for such concession as follows:

1. If such concession is to be operated for a period of less than 30 days, the business and professions tax shall be $50.00.

2. If such concession is to be operated for a period of 30 days or more, it shall be issued a certificate as any other business.

3. If the concessionaire fails to obtain the certificate required within 10 days of commencing operations, the person granting the concession shall be liable for the tax.

C. Gratuitous Passenger Service. Every person engaged in the operation of a motor propelled passenger carrying vehicle for the transportation of passengers over and along the public streets of the city without charge to the passengers carried for the business benefit of the operator shall pay an annual business and professions tax of $50.00 for each vehicle used in such gratuitous passenger service.

D. Outdoor Entertainment. Except where conducted in a recreation park or amusement center as mentioned in SLTCC 3.35.300, every person conducting, managing or carrying on any street exhibition, outdoor entertainment or similar enterprise, or any tent show where seating accommodations are not provided for, which exhibition, entertainment, enterprise or tent show is not specifically provided for in this chapter and for which a charge is made or collected, shall pay a daily business and professions tax of $250.00. (Ord. 336 § 1; Ord. 781 § 10; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-40. Formerly 3.35.360)

3.35.340 Exemption – Outdoor entertainment.

Notwithstanding any other provisions of this chapter, a sponsoring organization formed as a nonprofit organization may apply to the city council for a free certificate to conduct any activity or event for which a license is required by SLTCC 3.35.330. Upon such application, the city council may waive the tax required by SLTCC 3.35.330; provided, that:

A. The city council is persuaded that the activity or event being sponsored is for a legitimate charitable purpose and that it will comport with the best interests of the community; and

B. The activity for which the certificate is sought by such organization shall not continue for a period in excess of four consecutive days; and

C. The sponsoring organization shall agree to provide, and shall provide, adequate supervisory personnel to reasonably insure the health, safety and welfare of all persons in attendance. Upon the recommendation of the chief of police, the city council shall establish the number of security personnel required at each particular activity or registered with the city police department and must either be licensed as such by the state or be approved by the chief of police; and

D. The sponsoring organization shall agree to meet, and shall meet, all reasonable conditions imposed by the city council to guarantee the orderly and sanitary conduct of such activity or event; and

E. The sponsoring organization shall, at the time of the above described application, have complied with, or be in the process of complying with, all applicable requirements of Chapter 6.55 SLTCC. (Ord. 336 § 1; Ord. 391 § 1; Ord. 781 § 11; Ord. 832 § 1; Ord. 1109 § 1 (Exh. A). Code 1997 § 15-41. Formerly 3.35.370)

Article III. Cannabis Business and Professions Tax

3.35.350 Title.

This article shall be referenced as the “South Lake Tahoe cannabis business and professions tax.” (Ord. 1164 § 1)

3.35.360 Purpose.

This article is adopted for the following purposes and shall be interpreted to accomplish them:

A. To impose a tax on the privilege of conducting cannabis business in the city, under the state Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code Section 26000, Proposition 64, approved by the voters in November 2016 and as amended to date (“MAUCRSA”), which legalized and regulates adult use of cannabis in California, and other applicable law as it now exists or may hereafter be adopted;

B. To impose a general tax to generate revenues which may be used in the discretion of the city council for any lawful purpose of the city;

C. To specify the type of tax and rate of tax to be levied and the method of collection; and

D. To comply with all requirements for imposition of a general tax.

This article is enacted solely to raise revenue, not for regulation. It shall apply to all persons engaged in cannabis business in the city. The tax imposed by this article is a general tax under Article XIII C of the California Constitution. (Ord. 1164 § 1)

3.35.370 Definitions.

For the purposes of this article, the following words shall have the meanings ascribed to them by this section unless the context makes apparent another meaning was intended:

“Cannabis” has the meaning stated in SLTCC 6.55.710.

“Cannabis business” means the activity of any natural or legal person, business, or collective in the city relating to cannabis, including but not limited to cultivation (including nurseries), transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, delivery and sales (including both wholesale and retail sales) of cannabis, cannabis products, or cannabis accessories, whether or not carried on for gain or profit, whether for medical or adult use, and whether or not such business is licensed by the state. A cannabis business does not include any business the only relationship of which to cannabis or cannabis products is the production or sale of cannabis accessories.

“Cannabis product” has the meaning stated in SLTCC 6.55.710.

“Canopy” has the meaning stated in SLTCC 6.55.710. The city manager may, but is not required to, determine canopy from the area described in a cultivation license issued by the city whether or not the licensee actually cultivates that entire area.

“City manager” means the city manager or designee.

“Collector” means the city manager or a person charged by the city manager to administer this article.

“Commercial cannabis cultivation” means cultivation conducted by, for, or as part of a cannabis business. Commercial cannabis cultivation does not include personal medical cannabis cultivation, or cultivation for personal adult use as authorized by the MAUCRSA, including Health and Safety Code Section 11362.1 et seq., for which the individual receives no compensation whatsoever.

“Cultivation” has the meaning stated in SLTCC 6.55.710.

“Delivery” has the meaning stated in SLTCC 6.55.710.

“Distributor” has the meaning stated in SLTCC 6.55.710.

“Gross receipts,” except as otherwise specifically provided in this article or by regulation authorized by this article, has the meaning stated in SLTCC 3.00.010.

“Manufacturer” has the meaning stated in SLTCC 6.55.710.

“Person” means any individual, firm, partnership, corporation, company, association, joint stock association; city, county, state, or district; and includes any trustee, receiver, assignee, or other similar representative thereof.

“Retailer” has the meaning stated in SLTCC 6.55.710. (Ord. 1164 § 1)

3.35.380 Cannabis business and professions tax.

A. There is hereby imposed on every person who engages in cannabis business in the city an annual cannabis business and professions tax in the amounts stated in this section or such lesser amounts as the city council may from time to time establish by resolution.

B. SLTCC 3.35.280 notwithstanding, the initial rate of the cannabis business and professions tax shall be as follows:

1. For every cannabis business engaged in commercial cannabis cultivation in the city:

a. Twenty dollars annually per square foot of canopy.

2. For every cannabis business that engages in any other cannabis business in the city whether or not that cannabis business is lawful under this code or other law:

a. Six percent of gross receipts annually.

Should a city cannabis use permit be issued to a business which cultivates only for certain months of the year, the collector shall prorate the tax as to sufficiently reflect the time in which cultivation occurs. In no case shall any portion of the canopy authorized by a city cannabis use permit but not used for cultivation be deducted from the tax base unless the taxpayer informs the collector in writing before the canopy or portion thereof is disused and the collector provides written evidence of relief from tax.

C. The city council may, by resolution, implement a tax rate lower than the maximum rate established in subsection (B) of this section for all persons engaged in cannabis business, or establish differing tax rates for different categories of cannabis business. The city council may, by resolution, decrease or increase such tax rates without further voter approval provided the tax rate is not above the maximum tax rate established in subsection (B) of this section. (Ord. 1164 § 1)

3.35.390 Payment obligations.

Each person subject to a tax under this article shall pay that tax regardless of any rebate, exemption, incentive, or other reduction elsewhere in this code, except as required by state or federal law. Failure to pay such a tax shall be subject to penalties, fines and interest charges established under SLTCC 3.35.200, and the city may resort to any or all other remedies available at law or in equity to enforce this article. No provision of this article shall be interpreted to reduce a tax rate established under this article or otherwise reduce the taxes paid hereunder unless the provision specifically requires that reduction. (Ord. 1164 § 1)

3.35.400 Tax payment does not authorize activity.

The payment of a tax imposed under this article does not authorize the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this article authorizes or implies the lawfulness of any activity connected with the distribution or possession of cannabis unless otherwise authorized and allowed in strict and full conformance with this code. Nothing in this article is intended to authorize commercial cannabis activity. (Ord. 1164 § 1)

3.35.410 Cannabis tax is not a sales tax.

The tax imposed by this article is upon the privilege of doing business in the city. It is not a sales or use tax. (Ord. 1164 § 1)

3.35.420 Returns and remittances.

The tax imposed by this article shall be due and payable as follows:

A. Each person owing tax under this article shall provide a tax return to the city manager on or before the last business day of each month stating the tax owed for the preceding month and the basis of its calculation. The taxpayer shall remit the tax owed to the city manager when the return is due.

B. The city manager may establish a form for tax returns submitted under this section and, if so, use of that form shall be mandatory.

C. Tax returns and payments for all outstanding taxes, penalties and interest owed the city are immediately due upon cessation of business for any reason.

D. Postmarks are not accepted and payments, statements, reports, requests, or other communications must be physically in the office of the collector when due. If the due date falls on a day when city offices are not open for business, the due date shall be the next following business day.

E. Unless otherwise provided by this article, the tax imposed by this article is delinquent if not paid by the due date specified in subsection (A) of this section.

F. The city manager need not send a bill or delinquency or other notice to any person subject to a tax imposed by this article and failure to send such bill or notice shall not affect the validity of any tax, interest or penalty due under this article. (Ord. 1164 § 1)

3.35.430 Audits.

The city manager shall arrange for an annual independent audit of the receipts and expenditures of the taxes imposed by this article. He or she shall share that audit report with the city council and make it available for public inspection. (Ord. 1164 § 1)

3.35.440 Refunds.

A. No refund shall be made of any tax collected pursuant to this article, except as provided in this section.

B. No refund of any tax collected pursuant to this article shall be made because of the discontinuation, dissolution, or other termination of a cannabis business.

C. If a tax, penalty, or interest imposed under this article has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city, such amount shall be refunded to the person who paid it upon a written claim for refund filed with the collector within one year of the payment sought to be refunded, and all such claims for refund of the amount of overpayment must be filed with the collector on forms furnished by the collector.

D. Any person entitled to a refund of sums paid under this article may ask the city to apply it as a credit against future obligations under this article.

E. The collector may examine and audit all the books and business records of a refund claimant to determine entitlement to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of the claimant’s books and business records. (Ord. 1164 § 1)

3.35.450 Tax administration.

A. It shall be the duty of the city manager to collect the taxes, penalties, and interests, and perform the duties this article requires.

B. The city manager may from time to time promulgate such administrative rules and procedures consistent with the purpose, intent, and terms of this article as the city manager deems necessary to implement or clarify it or to aid in its enforcement. The city manager shall give notice of those regulations as required for ordinances of the city council and such regulations shall take effect upon such notice unless a particular regulation provides otherwise.

C. The city manager may take such administrative actions as needed to administer the tax, including but not limited to:

1. Provide information about this article to any taxpayer;

2. Receive and record all taxes remitted to the city under this article;

3. Maintain records of taxpayer reports and taxes collected under this article;

4. Assess penalties, fines and interest charges to taxpayers under this article;

5. Determine amounts owed and enforce collection under this article; and

6. Take such other reasonable steps as he or she deems appropriate to enforce this article.

D. The penalties, fines, and interest for delinquent payments in SLTCC 3.35.200 shall apply to this article. The city council may establish by ordinance or resolution additional penalties, fines and interest charges related to this article. (Ord. 1164 § 1)

3.35.460 Appeals.

Any person aggrieved by any decision of the city manager or collector under this article may appeal to the city council pursuant to the procedures described in Chapter 2.35 SLTCC. (Ord. 1164 § 1)

3.35.470 Consistency with business license tax.

The city council intends this article to be enforced consistently with the balance of Chapter 3.35 SLTCC and any rule or regulation promulgated under Chapter 3.35 SLTCC except as this article expressly requires to the contrary. (Ord. 1164 § 1)

3.35.480 Constitutionality and legality.

A. The tax imposed under this article is intended to be applied consistently with the United States and California Constitutions and applicable law. The tax shall not be applied to cause an undue burden upon interstate or inter-city commerce, a violation of the equal protection or due process clauses of those Constitutions, to constitute a special tax, or to violate any other provision of applicable law.

B. Notwithstanding SLTCC 3.35.410, a cannabis business may separately identify the tax on invoices, receipts and other evidences of transactions. (Ord. 1164 § 1)

Code reviser’s note: Section 3.35.060(B) of Ord. 1109 has been removed at the request of the city.