HomeMy WebLinkAboutORD 1270 (2003)ORDINANCE NO. 1270
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, AMENDING CHAPTER 5 OF ARTICLE 2 OF THE TUSTIN
CITY CODE RELATING TO THE BUSINESS LICENSE TAX.
The City Council of the City of Tustin does hereby ordain as follows:
Section I.
The City Council finds and determines as follows:
Ao
That an amendment to Chapter 5 of Article 2 of the Tustin City Code related
to the business license tax has been prepared to identify the Director of
Community Development or his or her designee as the person responsible
for the provisions of the Chapter and to make other minor changes.
B.
That the proposed amendment is not a "project" pursuant to the provisions
of the California Environmental Quality Act (CEQA).
C.
That the proposed amended business license tax provisions are reasonably
necessary to protect the health, safety, and welfare of the citizens of the
City of Tustin. -
Do
That the proposed amendments are consistent with the Tustin General Plan
in that they comply with Goal 4 to assure a safe, healthy, and aesthetically
pleasing community for residents and businesses.
E.
That amended provisions for the business license tax are necessary to
make the City's provisions consistent with State law and the City's
operating procedures.
Section II. Chapter 5 of Article 2 of the Tustin City Code is hereby repealed in its
entirety and new Chapter 5 of Article 2 of the Tustin City Code is hereby added to read
as follows:
Ordinance No. 1270
Page 2
CHAPTER 5
BUSINESS LICENSE TAX
CHAPTER INDEX
PART 1
PART 2
GENERAL PROVISIONS
2511
2512
2513
2514
2515
2516
2517
INTRODUCTION
LICENSE REQUIRED
EXEMPTIONS FROM TAX PAYMENT
STATEMENTS
UNLAWFUL BUSINESS NOT AUTHORIZED
ENFORCEMENT OF CHAPTER; RIGHT OF ENTRY
REMEDIES DEEMED CUMULATIVE
FEES
2521
2522
2523
REQUIREMENTS
TAX BASED ON GROSS RECEIPTS
TAX SCHEDULES
Ordinance No. 1270
Page 3
CHAPTER 5
BUSINESS LICENSE TAX
PART 1 GENERAL PROVISIONS
2511 INTRODUCTION
a Definitions
Business. Professions, trades, and occupations, and all and every kind of calling,
whether or not for profit.
Director.
designee.
The Director of the Community Development Department or his or her
Gross receipts. The total amount of the sale price of all sales in Tustin and the total
amount charged or received for the performance of any act or service in Tustin of
whatever nature it may be for which a charge is made or credit allowed, whether or not
such act or service is done as a part of or in connection with the sale of materials, goods,
wares, or merchandise. Included in "gross receipts" shall be all receipts, cash, credits,
and property of any kind or nature without any deduction therefrom on account of the cost
of the property sold, the cost of the materials used, labor or service costs, interest paid or
payable or losses, or other expenses whatsoever.
Excluded from "gross receipts" shall be anything exempted by State law, cash discounts
allowed and taken on sales; credit allowed on property sold; and tax required by law to be
included in or added to the purchase price and collected from the consumer or purchaser;
such part of the sale price of property returned by purchasers upon recision of the
contract of sale as is refunded either in cash or by credit; amounts collected for others
where the business is acting as an agent or trustee to the extent that such amounts are
paid to those for whom collected.
Person. An individual, partnership, or corporation.
b Chapter for Revenue Purposes
This Chapter is enacted solely to raise revenue for municipal purposes and is not
intended for the purpose of regulation.
c Not Substitute for Other Licensing Measures
Persons required to pay a license tax for transacting and carrying on any business under
this Chapter shall not be relieved from the payment of any license tax for the privilege of
Ordinance No. 1270
Page 4
doing such business as required by any other ordinance of the City and shall remain
subject to the regulatory provisions of other ordinances.
d Effect on Prior Obligations and Actions
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 license or any penal provision 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.
2512 LICENSE REQUIRED
a Business License Application
Applicants for City business licenses required by this Article shall obtain an application
form from the Director.
License Tax Imposed
There are hereby imposed upon the businesses specified in this Chapter license taxes in
the amounts hereinafter prescribed. It shall be unlawful for any person to transact and
carry on any business in the City without first having procured a license from the City to
do so, or without complying with any and all applicable provisions of this Chapter.
Vendors, contractors, and similar businesses that provide work or services to the City
under a City contract or agreement shall also comply with any and all applicable
provisions of this Chapter.
c Certain Businesses Exempted
Subsection (b) shall not be construed to require any person to obtain a license prior to
doing business within the City if such requirement conflicts with applicable statutes of the
United States of America or of the State.
Persons not required to obtain a license prior to doing business within the City because of
conflict with applicable statutes of the United States of America or of the State shall be
liable for the payment of the tax imposed by this Chapter.
There shall be exempt from the provisions of this Chapter the business of any express
corporation, freight forwarder, motor transportation broker, or person or corporation
owning or operating motor vehicles in the transportation of property for hire upon the
public highways, under the jurisdiction of the Public Utilities Commission of the State of
California, which consists of the transportation of property and every service performed in
connection therewith, other than where the origin point and the destination point of such
Ordinance No. 1270
Page 5
transported property are within the boundaries of the City of Tustin. Services not directly
related to the transportation of property, such as gasoline delivery, retrieval of keys from
locked vehicles, and repair of broken windows shall not be exempt from the provisions of
this Chapter.
The following are exempt from the requirement to obtain a business license:
(1) Small family day care homes.
(2) Residential Community Care Facilities serving six or fewer individuals.
d Branch Establishments
A separate license must be obtained for each branch establishment or location of the
business transacted and carried on and for each type of business at the same location,
and each license shall authorize the licensee to transact and carry on only the business
licensed thereby at the location or in the manner designated in such license, provided that
warehouses and distributing plants used in connection with and incidental to a business
located in the City and licensed under the provisions of this Chapter shall not be deemed
to be separate places of business or branch establishments.
e Issuance of License
--
Every person required to have a license under the provisions of this Chapter shall make
application to the Director in such form as the Director shall designate, and upon payment
of any applicable business license application processing fee and a prescribed license
tax, the Director shall issue to such person a license which shall contain: (1) the name of
the person to whom the license is issued, (2) the business licensed, (3) the place where
such business is to be transacted and carried on, (4) the date of expiration of such
license, and (5) such other information as the Director may deem reasonable or
necessary for the enforcement of the provisions of this Chapter.
All information specified to be set forth on any application form prescribed by the Director
shall be submitted completely and accurately and the license subsequently issued shall
be based upon the information submitted. Any license shall be deemed based upon the
application on file, and if the information is incomplete or inaccurate, the license shall be
deemed invalid, if information submitted in an application subsequently becomes
incomplete or inaccurate by reason of a change in circumstances, the license shall
thereafter be deemed invalid. Upon the Director's learning of any inaccuracy or
incompleteness, notice shall be given forthwith to the licensee, at the address shown on
the license, that the license is invalid. If the address shown on the license is known to be
inaccurate due to a change in circumstances, notice may be given to the licensee at any
address deemed appropriate by the Director.
Ordinance No. 1270
Page 6
f Investigation of Application
The Director shall make such investigations and inspections required for particular
businesses as may be necessary and may designate investigations and inspections to be
made by other departments in accordance with the following general guides:
(1) The Building Division shall review applications involving a change of
occupancy of any portion of a building and in such other circumstances as
may involve questions of compliance with building, electrical, plumbing, or
other construction codes.
(2) The Orange County Fire Authority shall review applications which involve
businesses or premises which may constitute substantial fire risks,
hazardous materials, or any risks of serious danger to human life or property.
(3) The Police Department shall review applications for businesses which may
affect public morals, involve substantial danger of fraud or deception, pose
unusual police problems, may involve the handling or receiving of stolen
goods to a higher degree than usual, tend to affect traffic control, involve
public assembly, include police-type functions, or otherwise substantially
affect public safety. If the Police Department, in the person of the Chief of
Police or his or her designated representative, determines that it is
reasonable or necessary, it may require fingerprinting and photographing of
a proposed licensee, and any or all of its officers, partners, owners,
managers, or employees.
(4) The Orange County Health Department shall review applications for
businesses which involve the preparation, storage or sale of food or drink,
except in sealed containers.
(5) The Water Operations Division of the City's Public Works Department shall
review applications for businesses which involve the use of water in
manufacturing or processing.
(6) Other departments, agencies, or officers shall review applications when the
proposed business poses special problems dealt with by such department,
agency, or officer.
g Appeal from Decision of the Director
Any person may appeal to the City Council any decision of the Director with respect to the
issuance or refusal to issue such license by filing a notice of appeal with the Director.
The Council shall thereupon fix a time and place for hearing such appeal. The Director
shall give notice to such person of the time and place of hearing by serving it personally
or by depositing it in the United States Post Office at Tustin, California, postage prepaid,
addressed to such person at his or her last known address. The Council shall have the
authority to determine all questions raised on such appeal. No such determination shall
conflict with any substantive provision of this Chapter.
Ordinance No. 1270
Page 7
h Licenses Not Transferable
No license issued pursuant to this Chapter shall be transferable, provided that where a
license is issued authorizing a person to transact and carry on a business at a particular
place, such licensee may, upon application therefore, have the license amended to
authorize the transacting and carrying on of such business under such license at some
other location to which the business is or is to be moved.
Duplicate Licenses
A duplicate license may be issued by the Director to replace any license previously issued
hereunder which has been lost or destroyed, upon the licensee filing a statement of such
fact.
j Posting and Display of License
All licenses must be kept and posted in the following manner:
(1) Any licensee transacting and carrying on business at a fixed place of
business in the City shall display the license in a conspicuous place upon the
premises where such business is carried on.
(2) Any licensee transacting and carrying on business, but not operated at a fixed
place of business in the City, shall keep the license upon his or her person at
all times while transacting and carrying on such business.
(3) All vehicles licensed by the City shall have a sticker issued by the City placed
in a conspicuous place upon such vehicle at all times.
(4) All vending machines licensed by the City shall have a current sticker issued
by the City placed upon such vending machine at all times in a conspicuous
place. Any and all machines not having such required current sticker shall be
subject to impoundment by the Chief of Police.
2513 EXEMPTIONS FROM TAX PAYMENT
a Generally
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 of America or of the State, from the amount of such taxes as are
herein prescribed.
None of the license taxes provided for by this Chapter shall be so applied as to occasion
an undue burden upon interstate commerce. In any case where a license tax is believed
by a licensee or applicant for a license to place an undue burden upon such commerce,
he may apply to the Director for an adjustment of the tax so that it shall not be
discriminatory or unreasonable as to such commerce. Such application may be made
before, at, or within six (6) months after payment of the prescribed license tax. The
Ordinance No. 1270
Page 8
applicant shall, by affidavit and supporting testimony, show his or her method of business
and the gross volume or estimated gross volume of business, and such other information
as the Director may deem necessary in order to determine the extent, if any, of such
undue burden on such commerce. The Director shall then conduct an investigation, and,
after first having consulted with the City Attorney, shall affix as the license tax for the
applicant an amount that is reasonable and nondiscriminatory, or, if the license tax has
already been paid, shall order a refund of the amount over and above the license tax so
fixed. In fixing the license tax to be charged, the Director shall have the power to base the
license tax upon a percentage of gross receipts, or any other measure which will assure
that the license assessed will be uniform with that assessed on business of like nature, so
long as the amount assessed does not exceed the license tax as prescribed by this
chapter. Should the Director determine the gross receipts measure of license tax to be
the proper basis, the Director 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 license tax therefrom,
provided that no additional license tax, during any one calendar year, shall be required
after licensee shall have paid an amount equal to the annual license tax, as prescribed in
this Chapter.
Organizations and Persons Exempted
A licens_e shall be obtained without payment of the usual fee under the provisions of t~is
section by the following:
(1) Any institution or organization which is conducted, managed, or carried on wholly
for the benefit of charitable, religious, eleemosynary, or benevolent purposes and
from which no profit is derived, either directly or indirectly, subject to compliance
with the provisions of this chapter.
(2)
Any nonprofit organization which engages in fundraising ventures, solicitations,
carnivals, fairs, or other events, when all of the net proceeds from the fundraising
venture, solicitation, carnival, fair, or other event is solely utilized for a charitable
or eleemosynary purpose, and no direct or indirect monetary profit or benefit is
derived by any other person, institution, or organization. However, any person or
entity desiring to solicit donations for a charitable purpose must first comply with
the requirements set forth in section 2513f of this chapter. In no event shall a
solicitation or event be engaged in within the City except in conformance with the
provisions of all applicable ordinances of the City regulating the particular event.
If a portion of the proceeds of the charitable or eleemosynary fundraising venture,
solicitation, carnival, fair, or other event are to be received by or are for the direct or
indirect benefit of any other person, institution, or organization, then the fee which would
ordinarily be charged for such venture, if it were wholly a profit venture, shall be reduced
in proportion to the percentage of the proceeds which are to be received by any such
person, institution, or organization.
Ordinance No. 1270
Page 9
c Procedure for Obtaining Fee-Exempt License
Businesses that are exempt from the payment of the license tax are required to obtain a
fee-exempt business license.
(1) A fee-exempt license may be issued by the Director to any person when the
· application for issuance of a business license is accompanied by a statement
of facts that is verified or certified under penalty of perjury and clearly shows
that the applicant meets the requirements of one or more of the classifications
set forth in section 2513b.
(2) The burden of proof of entitlement to exemption shall in all cases be upon the
applicant to establish the facts showing entitlement to a fee-exempt license.
The Director may prescribe the form or forms of statements of fact required
and may require the applicant to present such other proof of entitlement as
may be reasonable in the particular case. (Ord. No. 328, Sec. 13)
d Appeal from Denial of Fee-Exempt License
Any person denied a fee-exempt license or endorsement for a particular solicitation by
the Director, after compliance with the procedural requirements thereof and believing
himself or herself to be entitled to receive fee-exemption or solicitation endorsement-on
the basis of the information filed with the Director, may appeal to the City Council for its
order directing the Director to grant such exemption or solicitation endorsement. Appeal
shall be in writing, filed in triplicate with the Director, and shall clearly and concisely state:
(1)
Subdivision of section 2513b entitling such applicant to such exemptions or
solicitation endorsement.
(2)
The facts relied upon to establish that applicant meets the requirements
and conditions of such subdivision.
(3) That the applicant has disclosed all such facts to the Director.
(4)
That the applicant has filed a duly executed statement of facts as required
and such other proof of entitlement as the Director has requested.
The City Council may decide such appeal and shall deny the same unless it finds that the
written appeal complies with the requirements of this section, that the applicant has
furnished to the Director all of the documents and data reasonably required by him or her,
and that the applicant, upon the record, is entitled to exemption from the usual fees or to
a solicitation endorsement.
Ordinance No. 1270
Page 10
Limitations on Fee-Exempt Licenses
(1) Every license issued without payment of the usual fee shall be stamped
"Exempt" upon its face.
(2) Any license issued as fee-exempt may be revoked by the Director in the
event it is determined by the Director that the applicant is not entitled to
exemption, except that no such license shall be revoked without forty-eight
(48) hours notice to the licensee. If the license is revoked, the licensee shall
be required to surrender the license to the Director within forty-eight (48)
hours of receiving the notice of revocation from the Director.
(3) Any license issued as fee-exempt shall be void and shall afford no defense in
any civil or criminal prosecution if any material statement contained in the
application, statement of facts, or any other document or representation
made to the Director in claiming exemption is false or fraudulent.
(4) No fee-exempt license may be transferred.
(5) Upon any uncertainty, for lack of information or otherwise, as to the
entitlement of any organization or activity to a fee-exempt license, the
Director may require the filing of a verified report of all funds received and
disbursed by any licensee. Upon demand such licensee shall file its report in
the form and detail as required by the Director within fifteen (15) days after
demand.
Charitable Solicitation Permits
(1) No person shall solicit donations for charitable purposes within the City
without first obtaining a permit from the Director for the particular solicitation
and for the stated purposes and period provided therein.
(2) A completed application for a permit to solicit donations for charitable
purposes shall be filed with the Director prior to soliciting donations in the City
and a permit issued for such solicitation. The application shall contain all of
the following information:
(a) The name and address of the person or organization;
(b) The State Charitable Trust number;*
(c)
Name, address, telephone number, and birth date, along with any
aliases used, of the individual in charge of the solicitation;
(d) The purpose of the solicitation;
(e) The type of donations to be solicited;
(f) If the solicitation is for a special event, the nature of the event and the
time and place of the event;
Ordinance No. 1270
Page 11
(g) The anticipated beginning and ending dates of the solicitation;
(h)
Whether the solicitation is on behalf of an organization other than the
applicant and if so, the name, address, and business telephone number
of the other organization;
(i) The method of solicitation to be utilized;
(j) If paid solicitors are used, the total estimated cost of fundraising
expenses;
(k) The estimated percentage of the amount of donations which will be
used for charitable purposes;
(1) The names, residential addresses, and day-time telephone numbers of
all officers and directors of the applicant;
(rn)
The names, business addresses, and day-time telephone numbers of all
agents, volunteers, solicitors, promoters, and managers to be involved
with the solicitation;
_ In addition, the applicant shall provide the following documents, as they apply:
(a) The articles of incorporation and bylaws of corporations and bylaws of
unincorporated entities;
(b) The Internal Revenue Service Notice of Tax-Exempt Status;
(c)
The notice from the California Attorney General Registrar of Charitable
Trusts confirming registration in good standing or in 'the case of a
religious corporation sole, a Certificate of Status of Domestic
Corporation from the Secretary of the State;
(d) A copy of the most recent periodic report filed with the Attorney
General;*
(e)
A copy of the solicitation or sale for charitable purposes card which must
be exhibited to prospective donors pursuant to Business and
Professions Code Section 17510.3;* and
(f)
If the solicitation is for the benefit of an organization other than the
applicant, a letter from such organization authorizing applicant's
solicitation.
Upon submittal of the application, the Director shall verify within five (5) working days as
to whether the application is complete. If complete, a permit will be issued within five (5)
Ordinance No. 1270
Page 12
working days, or the City will apply to the court for an order enjoining the applicant's
solicitation. If the Director determines that the application is incomplete, the applicant
shall be notified within five (5) working days of such determination, along with the specific
reasons therefore. The permit is valid for six (6) months.
*Not applicable to a corporation solely organized for religious purposes.
2514 STATEMENTS
a Not Conclusive
No statement shall be conclusive as to the matters set forth therein, nor shall the filing
thereof preclude the City from collecting, by appropriate action, such sum as is actually
due and payable hereunder.
b Examination by Experts
The Director, with the approval of the City Council, is hereby authorized and empowered
to retain from time to time accountant or accountants licensed by the State of California to
examine, audit, and inspect the books and records of any licensee or applicant for a
license to ascertain and verify that the matters in any statement or statements are correct.
Upon any such verification by accountant or accountants, no information shall be given to
the Director by such accountant or accountants other than the statement is correct or
incorrect.
All licensees, applicants for licenses, and persons engaged in business in the City are
hereby required to permit examination of their books and records for the purposes
aforesaid.
The information furnished or secured pursuant to this section or section 2512d shall be
confidential. Any unauthorized disclosure or use of such information by any officer or
employee of the City or by any accountant or accountants retained as provided herein
shall constitute a misdemeanor, and such person shall be sUbject to the penalty
provisions of section 1121, in addition to any other penalties provided by law.
Failure to File; Hearing Before City Council
If any person fails to file any required statement within the time prescribed, or if at the
demand therefore made by the Director the person fails to file a corrected statement, the
Director may determine the amount of license tax due from such person by means of
such information as he may be able to obtain.
If such a determination is made, the Director shall give a notice of the amount so
assessed by serving it personally or depositing it, by certified mail, in the United States
Post Office in Tustin, California, addressed to the person so assessed at his or her
last-known address. Such person may, within fifteen (15) days after the mailing or serving'
Ordinance No. 1270
Page 13
of such notice, make application in writing to the Director for a hearing on the amount of
the license tax. If such application is made, the Director shall cause the matter to be set
for hearing within fifteen (15) days before the City Council. The Director shall give at least
ten (10) days notice to such person of the time and place of hearing in the manner
prescribed for service of notices of assessment. The City Council shall consider all
evidence produced and shall make findings thereon, which shall be final. Notice of such
findings shall be served upon the applicant in the manner prescribed above for serving
notices of assessment.
d Extension of Time for Filing
In addition to all other authority conferred upon him or her, the Director shall have the
authority, for good cause shown, to extend the time for filing any required sworn
statement for not exceeding thirty (30) days, and in such cases to waive any penalty that
would otherwise have accrued and shall have the further authority, with the consent of the
City Council, to compromise any claim as to the amount of license tax due.
2515 UNLAWFUL BUSINESS NOT AUTHORIZED
No license issued under the provisions of this chapter or the payment of any tax required
under the provisions of this chapter shall be construed as authorizing the conduct or
continuance of any illegal business or of a legal business in any ill~gal manner. Licenses
issued to unlawful businesses shall be deemed invalid and shall be surrendered to the
Director within forty-eight (48) hours of receiving notice from the Director.
2516 ENFORCEMENT OF CHAPTER; RIGHT OF ENTRY
It shall be the duty of the Director to enforce each and all of the provisions of this chapter,
and the Chief of Police shall render such assistance in the enforcement hereof as may
from time to time be required by the Director or the City Council. The Director, in the
exercise of the duties imposed upon him or her hereunder, and acting through his or her
deputies or duly authorized 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.
The Director and other City staff shall have the power and authority to enter, free of
charge and at any reasonable time, any place of business required to be licensed herein
and demand an exhibition of its license certificate. Any person having such license
certificate theretofore issued in his or her possession or under his or her control who
willfully fails to exhibit the same on demand shall be guilty of a misdemeanor and subject
to the penalties provided for by section 1121. It shall be the duty of the Director to cause a
complaint to be filed against any and all persons found to be violating any of such
provisions.
Ordinance No. 1270
Page 14
2517 REMEDIES DEEMED 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 of this chapter.
PART 2 FEES
2521 REQUIREMENTS
a Generally
Every person who engages in business within the City shall pay a license tax upon
business done within the City annually, unless otherwise provided in this chapter, in the
amounts and at the rates hereinafter designated.
b Unexpired Licenses
Where a license for revenue purposes has been issued to any business by the City, the
tax paid therefore under the provisions of any ordinance heretofore enacted, and the
terms of such license have not expired, then the license tax prescribed by this chapter for
such business shall not be required to be paid until the expiration of the term of such
unexpired license.
c Penalties for Failure to Pay When Due
For failure to pay the license tax when due, the Director shall add a penalty of twenty-five
percent (25%) of such license tax on the last day of each month after the due date
thereof, provided that the amount of such penalty to be added Shall in no event exceed
one hundred percent (100%) of the amount of the license tax due.
d When Payable
Unless otherwise specifically provided, all annual license taxes under the provisions of
this chapter shall be due and payable in advance on the first day of January of each year,
provided that license taxes covering new operations commenced after the first day of
January may be prorated for the balance of the license period, by quarters.
Except as otherwise herein provided, license taxes required hereunder shall be due and
payable as follows:
(1) Annual: Due and payable on the first day of January of each year; delinquent
on February 1st of the same year.
(2) Daily flat-rate license taxes: Each day, in advance.
Ordinance No. 1270
Page 15
(3) New businesses: Due immediately prior to commencement of business and
delinquent on the last day of the month in which business commenced.
e Deemed Debt Owed City
The amount of any license tax and penalty imposed by the provisions of this chapter shall
be deemed a debt to the City. An action may be commenced in the name of the City in
any court of competent jurisdiction for the amount of any delinquent license tax penalties.
2522 TAX BASED ON GROSS RECEIPTS
a Original License
Upon a person making application for the first license to be issued hereunder or for a
newly established business, in all cases where the amount of .the license tax is to be
measured by gross receipts, such person if engaged in business or registering in the first
quarter of the calendar year shall pay the amount based on anticipated annual gross
receipts. For succeeding quarters, the payment shall be reduced by one-fourth if made
after March 31st, by one-half if made after June 30th, and by three-fourths if made after
September 30th.
The Director shall not issue to any person another license for the same or any other
business until such I~erson has submitted a complete application-to the Director and paid
the license tax required by this Chapter.
Determination of Tax
The license fee for any business whose license fee is determined under Sections 2523a,
b, and c shall be based upon the gross receipts of such business for the preceding year,
except that in the case of a new business, the fee shall be based upon an estimate of the
gross receipts which the business will have for the year for which the license is granted.
The amount of the actual gross receipts used to determine the license tax shall be
consistent with the amount reported to the State and the Federal government for tax
purposes.
All gross receipts and license taxes shall be prorated on the basis of the quarter of the
year in which they are initially paid.
For businesses paying the license tax prior to March 31st, the full amount shall be paid
based upon estimated gross receipts for the year. For license taxes paid subsequently,
the amount shall be three-fourths of the full amount if paid after March 31st, but prior to
June 30th; one-half of the full amount if paid after June 30th, but prior to September 30th;
one-fourth of the full amount if paid after September 30th.
Persons making application for any such business shall furnish to the Director a verified
written statement upon the form provided by the Director, setting forth such information
as may be therein referred to and required and as may be necessary to determine the
Ordinance No. 1270
Page 16
amount of license tax to be paid by the applicant, which estimate, if accepted by the
Director as reasonable, shall be used to determine the amount of license tax to be paid.
2523 TAX SCHEDULES
Retail and Wholesale Sales Generally
Retail and wholesale sales businesses, and all other businesses not otherwise specified:
0 to 999.99 Excluding all activities conducted wholly
within the limitations and definitions of
"Home Occupation" as provided in
Ordinance No. 330 of the City of Tustin.
$25.00
1,000 to 25,000
25,001 to 100,000
100,001 to 200,000
200,001 to 300,000
300,001 to 600,000
600,001 and over
25.00
4O.0O
50.00
60.OO
80.00
100.00
b Manufacturing
Any business consisting primarily of manufacturing, packing, processing, canning, or
fabricating goods or produce:
0 to 999.99
Excluding all activities conducted wholly within the limitations and
definitions of "Home Occupation" as provided in Ordinance No.
330 of the City of Tustin.
$ 25.00
1,000 to 25,000
25,001 to 100,000
100,001 to 200,000
200,001 to 300,000
300,001 to 600,000
600,001 and over
25.00
40.00
5O.O0
60.00
80.00
100.00
Ordinance No. 1270
Page 17
Services Generally
Any profession, trade, or occupation, not including retail or wholesale sales or
manufacturing, and not otherwise specifically named or described, and involving
principally a service rather than a sale or the furnishing or rendering of a facility or thing:
0 to 999.99
Excluding all activities conducted wholly within the limitations and
definitions of "Home Occupation" as provided in Ordinance No.
330 of the City of Tustin.
.~
1,000 to 25,000
25,001 to 100,000
100,001 to 200,000
200,001 to 300,000
300,001 to 600,000
600,001 and over
Enumerated Businesses
$ 25.00
25.00
40.00
50.00
60.00
80.00
100.00
The taxes for certain particular business shall be as follows:
Ambulance ............................................................................................................. $ 25.00
per vehicle
Amusement facilities and devices:
(1) Parks and facilities, card rooms, bowling alleys, skiball, batball, handball,
shuffleboard, pool-for each facility ................................................................. 25.00
Plus, for each table, court, alley, ride, or device, in excess of one ..................... 5.00
(2) Billiards, similar facilities, amusement parks of all kinds, mechanical devices of any
kind--for each facility ....................................................................................... 25.00
Plus, for each table, court, alley, ride, or device, in excess of one ..................... 5.00
(3) Rinks, ranges, and courses:
Ice or roller skating rinks ................................................................................. 50.00
Shooting Gallery ............................................................................................. 50.00
Golf Course .................................................................................................... 50.00
Miniature Golf Course .................................................................................... 50.00
Archery Range ................................................................................................ 50.00
Ordinance No. 1270
Page 18
Golf Driving Range ......................................................................................... 50.00
Riding Academy or Stable .............................................................................. 50.00
Go-Cart, Bicycle, or similar courses ............................................................... 50.00
Similar Facilities
.............................................................................................. 50.00
(4) Places of assembly:
Cafe with Dancing ........................................................................................ 100.00
Nightclub
....................................................................................................... 100.00
Dance hall (admission charged) ................................................................... 100.00
Public hall for rent
......................................................................................... 100.00
(5) Coin-operated Machines
Coin-operated machines shall be taxed upon the gross receipts received from said
machines in accordance-with the schedule set forth in Section 2523. Licensees
shall, with the business license application and each renewal thereof, file with the
Director a list of each location within the City at which licensee has machines,
showing the number of machines at each such location. Within fifteen (15) days
after any change in location or in the number of machines at such location, the
licensee shall file an amended and current list.
(6) Entertainment:
Circus or carnival (all devices, shows, sales, and facilities included)wfor each
consecutive series of days ........................................................................... 100.00
Plus
........................................................................................................ 25.00
each day in excess of one
Motorcycle or car show ..................................................................... 35.00 per day
Parade advertising any circus or carnival where business is located
outside the City .................................................................................. 25.00 per day
Traveling lecture or professional theatrical performance
of any kind, except in a licensed theater ........................................................ 25.00
Plus
........................................................................................................ 12.50
per day in excess of one
Trained animal show, per day ........................................................................ 35.00
Ordinance No. 1270
Page 19
Circus, carnival, lecture, parade, or other theatrical performance
of any kind if determined by the City Clerk to be primarily
educational, non-professional, or sponsored by a school P.T.A.--type
group primarily for children and primarily non-profit, per day ........................... 2.00
Sports arena, hall or stadium:
Under 500 seats, per exhibition ........................................................................... 30.00
500 or more seats, per exhibition ........................................................................ 60.00
Auction sales, house, or yard .................................................................................. 200.00
An auction of goods conducted by an individual who personally
owns such goods and who did not acquire such goods for resale,
house, or yard, per day .............................................................................................. 25.00
or per year ................................................................................................................ 200.00
Baths, steam rooms, pools, gymnasiums, and health clubs .................................. $ 35.00
Bill posting (except billboards), per day ....................................................................... 5.00
Building Construction, general contractors ............................................................... 80.00
Building construction, sub-contractors ...................................................................... 40.00
Day nursery or child care center ............................................................................... 25.00
Hand bill or sample distribution ................................................................................. 50.00
Homes for the aged and rest homes:
1 to 4 guests ...................................................................................................... 15.00
5 to 9 guests ...................................................................................................... 25.00
10 or more guests ............................................................................................. 35.00
House movers ........................................................................................................... 40.00
Newspapers and magazine sellers or distributors selling, distributing,
or delivering materials printed or published outside of the City to local
dealers or to any other persons, by means of agents or employees
(excluding newsstands and magazine stands operated by a licensee
including such activity in gross receipts tax rate) ...................................................... 25.00
Lawn care and gardeners (if not State-licensed contractors) .................................... 25.00
Outdoor advertising (billboards with space available),
per sign per year ........................................................................................................ 50.00
Outdoor advertising (not including billboards with space available),
Ordinance No. 1270
Page 20
per year ...................................................................................................................... 40.00
Outdoor advertising (benches only)
First ten
............................................................................................................. 50.00
Over ten, each
..................................................................................................... 5.00
Pawn Broker
............................................................................................................ 100.00
Private patrolman, detective agency, and security patrol ........................................... 25.00
Rental of real property, residential, commercial, or industrial:
Fewer than 4 rental units in the City ............................................................... No tax
4 or more rental units in the City ....................................................................... 25.00
Plus for each unit in excess of 4 ......................................................................... 1.00
Rooming house or boarding house:
Fewer than 4 roomers or boarders ................................................................. No tax
4 to 9 roomers or boarders
............................................................................... 25.00
10 or more roomers or boarders ....................................................................... 35.00
Route sales or services (no established place of business in the
City; occasional solicitation only), each vehicle ......................................................... 25.00
Searchlight/beacon advertising, each device per day .................................................. 2.00
Or annually 25.00
Sign building, installation, and construction companies ............................................ 40.00
Solicitors-Solicitors, registered agents (persons having non-employed
agents as itinerant or transient merchants, vendors, peddlers, hawkers,
hucksters, canvassers, solicitors, and the like), itinerant or transient
merchant or vendor, peddler, hawker, huckster, canvasser, solicitor,
photographer, or book agent, or like business (employees of licensees excluded),
per day per person .................................................................................................... 10.00
Transfer, moving, or any other business involving the movement
of anything whatsoever, excepting human passengers, by means
of vehicles, not included in any other specific category, minimum ........................... 25.00
Plus for each vehicle stored, garaged, or principally used in the City ................ 5.00
Trailer parks and mobile hOme parks, for the first 4 spaces ..................................... 25.00
Each space in excess of 4
· ........ ..... .........-................................. .......... .. ..... . ...... .1.0O
Ordinance No. 1270
Page 21
e Vehicles
Every person not having a fixed place of business within the City who delivers
goods, wares, or merchandise of any kind by vehicle or who provides any service
by the use of vehicles in the City, shall pay a license tax of twenty-five dollars
($25.00) per vehicle, provided that any such person may elect to pay a license tax
measured by gross receipts from business done within the City, pursuant to the
preceding provisions of this chapter.
Fortunetelling
Every person engaging in the business of fortunetelling, as defined by Section
3141 of the Tustin City Code, shall pay an annual license tax of one hundred
dollars ($100.00).
Section III.
If any section, subsection, sentence, clause, phrase, or portion of this ordinance is
for any reason determined to be invalid-or unconstitutional b~Tthe decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this ordinance. The City Council of the City of Tustin hereby declares that it would
have adopted this ordinance and each section, subsection, sentence, clause, phrase, or
portion thereof irrespective of the fact that any one or more sections, subsections,
sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting
on the 21 st day of April, 2003.
TRACY WILLS WORLEY
Mayor
AMELA STOKER
City Clerk
Ordinance No. 1270
Page 22
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
SS
CERTIFICATION FOR ORDINANCE NO. 1270
PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, does hereby certify that the whole number of the members of the City Council
of the City of Tustin is 5; that the above and foregoing Ordinance No. 1270 was duly and
regularly introduced at a regular meeting of the Tustin City Council, held on the 7th day of
April, 2003 and was given its second reading, passed, and adopted at a regular meeting
of the City Council held on the 21st day of April, 2003 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNClLMEMBER ABSENT:
~ORLEY, KA~ASHIMA, BONE, DAVERT, THOI~S
NONE
NONE
NONE
City Clerk