A separate business license shall be obtained for each branch establishment or location of the business and each license shall authorize the license holder to transact and carry on only the business authorized thereby at the location designated in such license provided that warehouses and distributing plants used in connection with and incidental to a business holding a license under the provisions of this title shall not be deemed to be separate places of business or branch establishments.
(Ord. No. 85-8, § 3, 4-1-85)
Notwithstanding any other provision of this Code, every person engaged in, managing, conducting, or carrying on any cannabis business defined in Chapter VI of this title, or any other marijuana and/or cannabis business, shall pay an annual business tax as follows:
(a) 
Every person who is lawfully engaged in, managing, conducting, or carrying on a business as a cannabis distributor, manufacturer, and/or research and development laboratory, as set forth in section 9-486(a), shall pay an annual business tax of 1% based on the gross receipts of that business.
(b) 
Every person who is lawfully engaged in, managing, conducting, or carrying on a business as a cannabis testing laboratory, as set forth in section 9-486(a), shall pay no annual business tax.
(c) 
Every person who is engaged in, managing, conducting, or carrying on a business as a cannabis store-front retailer, as set forth in section 9-486(a), and/or who otherwise sells, dispenses and/or furnishes cannabis anywhere within the city, shall pay an annual business tax of 7% based on the gross receipts of that business.
(d) 
Every person who is engaged in, managing, conducting, or carrying on a business as a cannabis nonstore front retailer, as set forth in section 9-486(a), and/or who otherwise delivers cannabis anywhere within the city, shall pay an annual business tax of 7% based on the gross receipts of that business, subject to the applicable provisions of section 9-40.
(e) 
Every cannabis business that is engaged as a distributor, manufacturer, or research and development laboratory, that is also engaged in retail sales or delivery of the same cannabis products, shall pay the business tax as set forth in subsections (c) and (d) of this section, as applicable, for the retail sale or delivery of the same cannabis and cannabis products and is not required to pay business taxes set forth in subsection (a). The operator has the burden of proving that the cannabis or cannabis products involved in the distribution, manufacturing, and/or research and development are the same.
(f) 
The proceeds of the tax set forth in subsections (a), (c), (d), and (e) shall be subject to an annual audit as scheduled by the city manager or director of finance.
(g) 
One-half of one percent of the proceeds of the tax set forth in subsections (c) and (d) shall be directed toward the implementation of the cultural and arts master plan and one-half of one percent shall be directed towards the implementation of a first time homebuyer program for current residents of the city, former residents who were raised in the city and/or who graduated from the Newport Mesa Unified School District.
(Ord. No. 16-15, § 3, 11-8-16; Ord. No. 18-04, § 1, 4-3-18; Ord. No. 21-09, § 1, 6-15-21)
Every person who operates any business, whether upon a cost, rental or commission basis, as a concession or upon rented floor space in or upon the premises of any person taxed under any provision of this title shall be required to pay a business tax and obtain a separate and independent business license pursuant to the appropriate provisions hereof and shall be subject to all the provisions of this title.
(Ord. No. 85-8, § 3, 4-1-85)
Every person acting as a general contractor shall, subsequent to obtaining a building permit, provide to the tax collector a list of subcontractors which have worked or will work on the construction or remodeling of the building or project for which the building permit was issued. The list shall include the name, address, telephone number and state license number of each subcontractor. It shall be the responsibility of the person acting as general contractor to ensure that each subcontractor is duly registered with the city. No certificate of occupancy shall be issued, or final inspection provided, until all subcontractors hold a current business license.
(Ord. No. 85-8, § 3, 4-1-85)
No business license or permit issued under the provisions of this title, nor the payment of any tax required under the provisions of this title shall be construed as authorizing the conduct or continuance of any illegal business or a legal business in an illegal manner.
(Ord. No. 85-8, § 3, 4-1-85)
No business license shall be issued pursuant to this title when the provisions of this title or of some other ordinance of the city require a permit to be obtained as a prerequisite to engage in or conduct such business, until such permit is first applied for and obtained. Any business license issued in violation of the provisions of this section shall be void.
(Ord. No. 85-8, § 3, 4-1-85)
The payment of any business tax required by this title, its acceptance by the city, and the issuance of such business license to any person shall not entitle the holder thereof to carry on any business called for by the business license unless he has complied with all requirements of this Code, or to carry on any business at any location contrary to the city's zoning regulations.
(Ord. No. 85-8, § 3, 4-1-85)
Every person required to pay a business tax under the provisions of this title shall make an application for a business license as hereinafter prescribed to the tax collector of the city, and upon the payment of the prescribed tax, the tax collector shall issue to such person a business license which shall contain the following information:
(a) 
The name and title of the person to whom the business license is issued;
(b) 
The name of the business taxed;
(c) 
The address where such business is to be transacted and carried on and, where it is different, the mailing address of the business being taxed;
(d) 
The date of the expiration of such business license;
(e) 
The classification of the business and the section of the Municipal Code which sets the measure of the business tax;
(f) 
The amount of tax paid by the business;
(g) 
Such other information as may be necessary for the enforcement of the provisions of this title.
(Ord. No. 85-8, § 3, 4-1-85)
A person making application for the first business license to be issued hereunder or for a newly established business shall furnish to the tax collector a completed application, upon a form provided by the tax collector. The tax collector may require such information as is necessary to identify the business and its principals, the business location and type of business, and to determine the applicable business tax and to determine whether the appropriate resale number has been obtained from the California State Board of Equalization to ensure that sales taxes collected will be credited to Costa Mesa.
(Ord. No. 85-8, § 3, 4-1-85)
Upon receipt of a completed application, and when the applicant has tendered the business tax required, the tax collector shall process the application. If it is an application for a business license for a new business or if it is deemed necessary, the tax collector may submit the application to other departments as necessary, including the health officer, if health and sanitation may be affected, to determine whether the business and premises to be occupied meet the requirements of state law and city ordinances.
(Ord. No. 85-8, § 3, 4-1-85)
All taxes shall be paid in advance to the tax collector in lawful money of the United States. The amount to be paid shall be determined in accordance with the terms and provisions of this title.
(Ord. No. 85-8, § 3, 4-1-85)
Except as otherwise provided in this title, the business license shall be valid for a term of one year commencing the first day of the month that application was made.
(a) 
The tax collector, if he deems it necessary or convenient for administrative purposes, may establish fixed terms on a fiscal year, calendar year, or other basis for certain classes of businesses.
(Ord. No. 85-8, § 3, 4-1-85)
(a) 
No greater or lesser amount of money shall be charged or received for any business license issued pursuant to this title than is specified therefor in this title, and, except as otherwise provided, no business license shall be granted or issued for any period of time other than the full then-current tax period provided herein for such tax; provided, however, that in cases where a portion of an annual tax period has elapsed prior to the time application is made for a business license, the amount of the tax payable shall, in such cases, be apportioned on a quarterly basis, and the applicant for a business license shall pay the full tax, or three quarters, two quarters or one quarter, as the case may be, of the total tax.
(b) 
The finance director or designee has the authority to apportion the business tax obligation under section 9-25 for any business that provides written proof that the business has paid and continues to pay business taxes on annual gross receipts of that portion of the business conducted outside of the City of Costa Mesa. A request for apportionment shall be made in writing to the finance director or designee, and a decision on the request shall be made within a reasonable time after a complete application is received by the director. Such decision is appealable to city council pursuant to Title 2 of this Code upon payment of a fee set by resolution of city council.
(Ord. No. 85-8, § 3, 4-1-85; Ord. No. 95-2, §§ 1, 2, 2-6-95)
In no case shall any mistake by any officer or employee of the city in stating the amount of a certificate prevent or prejudice the collection by the city of what should be actually due from any person carrying on a business subject to a certificate under the provisions of this title.
(Ord. No. 85-8, § 3, 4-1-85)
In the event a discrepancy exists between the amount of tax paid and the amount of tax due under this title, resulting in an underpayment or overpayment of the tax in an amount of $5 or less, the tax collector may accept and record such underpayment or overpayment without other notification to the taxpayer.
(Ord. No. 85-8, § 3, 4-1-85)
No business license for any succeeding, current or unexpired period shall knowingly be issued to any person who, at the time of making application for any business license, is indebted to the city for any unpaid business tax.
(Ord. No. 85-8, § 3, 4-1-85)
No business license issued pursuant to this title shall be transferred or assigned or authorize any person other than the person named in the license to carry on the business described therein; provided that where a certificate is issued authorizing a person to conduct business at a particular location, such certificate holder may upon application therefor and paying a fee of $2 have the certificate previously issued amended so as to authorize the conduct of such business from another location.
(Ord. No. 85-8, § 3, 4-1-85)
Duplicate business licenses may be issued by the tax collector to replace any certificate previously issued which has been lost or destroyed, upon applicant therefor filing an affidavit attesting to such fact and at the time of filing such affidavit paying to the tax collector a fee of $2 therefor.
(Ord. No. 85-8, § 3, 4-1-85)
If any person fails to file a complete application as required by this title within the time prescribed hereby, or after demand therefor, made by the tax collector, fails to file a corrected application, such person shall be liable for the maximum business tax prescribed in this chapter for the type of business carried on by such person. In such a case the tax collector shall give notice of the amount so assessed by serving the same personally or by depositing the same in the United States Post Office in the City of Costa Mesa, California, with postage prepaid thereon, addressed to the person so assessed at his last known address. The amount herein set forth, plus any applicable penalties, shall be assessed as of that date and shall be due and owing as of the first time said amount would have been due and owing under this title.
(Ord. No. 85-8, § 3, 4-1-85)
If the tax collector is not satisfied that any statement filed as required under the provisions of this title is correct, or that the amount of tax is correctly computed, he may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his possession or that may come into his possession. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination was issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be mailed to the last known address of the owner of the business.
(Ord. No. 85-8, § 3, 4-1-85)
On order of the city council any business tax or penalties or portion thereof, may be refunded, if they were:
(a) 
Paid more than once;
(b) 
Erroneously or illegally collected;
(c) 
Paid in an amount in excess of the correct amount due;
(d) 
Issued for a business which becomes prohibited or illegal under some law. In such case, the amount to be refunded shall be prorated on the basis of the proportion which the number of days remaining in the period for which the business tax was paid bears to the number of days in the whole period.
(Ord. No. 85-8, § 3, 4-1-85)
(a) 
Any person entitled to a refund of any business tax shall file an application therefor with the tax collector. Such application may be made only by the person who made the payment, his guardian, executor, administrator or heir. Refunds shall not be made to an assignee of the applicant.
(b) 
No person shall be entitled to any such refund of tax payment unless application is made within six months from the date such tax was paid or the tax became refundable under subsection (d) of section 9-48. The failure to file such application within the time prescribed above shall bar any right of recovery.
(Ord. No. 85-8, § 3, 4-1-85)
No refund shall be made where the business license was issued under a misrepresentation of fact by the applicant and such applicant actually engaged in the conduct of the business for which the business license was granted.
(Ord. No. 85-8, § 3, 4-1-85)
In all cases, the applicant for the renewal of a business license shall submit to the tax collector for his guidance in ascertaining the amount of the business tax to be paid by the applicant, a sworn statement, upon a form to be provided by the tax collector, setting forth such information concerning the applicant's business during the preceding year as may be required by the tax collector to enable him to ascertain the amount of the business tax to be paid by said applicant pursuant to the provisions of this title. The applicant shall also advise the tax collector if the resale number in effect during the previous year has been terminated or changed.
(Ord. No. 85-8, § 3, 4-1-85)
For failure to pay a business tax when due, the tax collector shall add a penalty of 10% of said business tax on the last day of each month after the due date thereof, providing that the amount of such penalty to be added shall in no event exceed 50% of the amount of the business tax due. No license or sticker, tag, plate or symbol shall be issued, nor shall one which has been suspended or revoked be reinstated or reissued, to any person who, at the time of applying therefor, is indebted to the city for any delinquent business tax, unless such person, with the consent of the tax collector, enters into a written agreement with the city, through the tax collector, to pay such delinquent taxes, plus 10% simple annual interest upon the unpaid balance, in monthly installments, or oftener, extending over a period not exceeding one year. 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 license shall be revoked by the tax collector after 30 days. In the event legal action is brought by the city to enforce collection of any amount included in the agreement, such person shall pay all costs of suit incurred by the city or its assignee, including a reasonable attorney's fee. The execution of such an agreement shall not prevent the prior accrual of penalties on unpaid balances at the rate provided hereinabove, but no penalties shall accrue on account of taxes 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.
(Ord. No. 85-8, § 3, 4-1-85)
Whenever any payment, statement, report, request or other communication received by the tax collector is received after the time prescribed by this title for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed prior to the time prescribed in this title for the receipt thereof, or whenever the tax collector is furnished substantial proof that the payment, statement, report, request or other communication was in fact deposited in the United States mail prior to the time prescribed for receipt thereof, the tax collector may regard such payment, statement, report, request or other communication as having been timely received.
(Ord. No. 85-8, § 3, 4-1-85)
The tax collector may, upon receipt of the written request of a taxpayer, and for good cause, extend the time for filing any statement required under the provisions of this title for a period not to exceed 30 days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension in the manner provided elsewhere in this chapter.
(Ord. No. 85-8, § 3, 4-1-85)
It is unlawful for the tax collector or any person having an administrative duty under the provisions of this title to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any person required to obtain a business license or pay a tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person. Provided that nothing in this section shall be construed to prevent:
(a) 
The disclosure to, or the examination of records by, another city official, employee, or agent if the information contained in such records is needed by such official, employee or agent in the performance of his duties;
(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 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 tax collector may refuse to make any disclosure referred to in this paragraph when in his opinion the public interest would suffer thereby;
(e) 
The disclosure of the names and business addresses of persons to whom business licenses have been issued, and the general type or nature of their business;
(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 tax, or submits an offer of compromise with regard to a claim asserted against him by the city for business taxes or when acting upon any other matter;
(g) 
The disclosure of general statistics regarding taxes collected or business done in the city.
(Ord. No. 85-8, § 3, 4-1-85)