Chapter 5.06
GOING OUT OF BUSINESS SALES*
Sections:
5.06.010 License required.
5.06.020 Requirement for existing business license.
5.06.030 License application requirements.
5.06.040 Basic license fee.
5.06.050 Supplemental licensing.
5.06.060 False application.
5.06.070 Commingling of goods.
5.06.080 Advertising going out of business sales.
5.06.090 Violation.
*Cross reference(s) – Sales and use taxes, ch. 3.16.
5.06.010 License required.
It shall be unlawful for any person to advertise or conduct any sale of goods, wares, or merchandise at retail that is represented or advertised as a bankrupt, insolvent, assignee’s, adjustor’s, trustee’s, executor’s administrator’s, receiver’s, wholesaler’s, jobber’s liquidation, quitting business, or any other sale which is by representation of advertisement intended to lead the public to believe that the person conducting such sale is selling out or closing out all or substantially all of the stock of goods, wares, or merchandise or any business for less than the current or going retail price thereof in the city without first filing with the city an inventory hereafter provided for and obtaining from the city a going out of business license. Such license shall be issued by the finance director upon payment of proper license fees provided in KCC 5.06.040.
(Ord. No. 1858, § 1. Formerly Code 1986, § 5.12.010)
5.06.020 Requirement for existing business license.
No going out of business license will be issued to any person that does not at the time of application for such license hold a then valid business license.
(Ord. No. 1858, § 2. Formerly Code 1986, § 5.12.020)
5.06.030 License application requirements.
Any person desiring to secure a license to advertise or conduct any sale of goods referred to in KCC 5.06.010 shall make application for license to the finance director. The application shall state the name and address of the person, firm, or corporation applying for the license and shall specify the period of time during which the sale will continue, which shall not exceed three (3) months, except as hereinafter provided. The application shall have attached to it an inventory which shall contain a complete and accurate list of goods, wares, and merchandise to be sold, together with the wholesale price. The inventory shall be signed by the person seeking the license or by an authorized agent. The application shall be accompanied by the oath of the applicant or agent that the statements contained in the application are true and correct to the best of his knowledge and belief.
(Ord. No. 1858, § 4. Formerly Code 1986, § 5.12.030)
5.06.040 Basic license fee.
The basic license fee for going out of business sale licenses shall be seventy-five dollars ($75). The basic license shall be valid for a period not to exceed three (3) months. The basic license fee shall be paid at the time of application.
(Ord. No. 1858, § 5. Formerly Code 1986, § 5.12.040)
5.06.050 Supplemental licensing.
A. If at any time during three (3) months after issuance of a basic license a sworn statement is filed with the finance director that all the goods in the original inventory have not been sold and the statement is accompanied by an inventory of what remains unsold showing the wholesale price, a supplemental license to be effective upon expiration of the basic license shall be issued by the finance director. The fee for the supplemental license shall be fifty dollars ($50) per day and the license shall remain in effect only upon receipt each day of the fifty-dollar fee and only so long as full compliance with all provisions of this chapter occurs. No supplemental license may be issued for any period thirty (30) days beyond the expiration date of the basic license.
B. Any application for a license under this chapter covering any goods, wares, or merchandise previously inventoried and licensed, shall be deemed to be an application for a supplemental license under this section, whether presented by the original applicant or by any other person.
(Ord. No. 1858, § 7. Formerly Code 1986, § 5.12.050)
5.06.060 False application.
It shall be unlawful to knowingly make any false statement in any application.
(Ord. No. 1858, § 8. Formerly Code 1986, § 5.12.060)
5.06.070 Commingling of goods.
After sixty (60) days, any license issued under the provision of this chapter shall be valid only for inventoried goods. Commingling of additional merchandise with inventoried merchandise shall cause the inventoried merchandise to lose its identity as goods described in KCC 5.06.010, and any license issued under the provisions of this chapter shall no longer apply to the sale of such goods. After sixty (60) days, if inventoried stock shall be put on sale with other stock, the same shall be deemed to be commingled, unless sufficiently segregated and marked so that the difference can be readily ascertained. A second inventory shall be submitted after sixty (60) days.
(Ord. No. 1858, § 9. Formerly Code 1986, § 5.12.070)
5.06.080 Advertising going out of business sales.
It shall be unlawful for any person to advertise a going out of business sale in a newspaper or other media or in any other manner such as flyers, posters, window displays, etc., without including in such advertisement the number of the license issued to such person by the finance director for such going out of business sale.
(Ord. No. 1858, § 10. Formerly Code 1986, § 5.12.080)