Every person, firm or corporation, whether or not having an established place of business within the city, commencing or conducting any business within said city, not otherwise specifically mentioned in this code, shall pay an annual license fee based upon the gross receipts of such business or profession according to the following schedule:
Gross Receipts Per Annum
Fee Per Annum
Less than $25,000
$75.00
$25,000 and less than $50,000
$90.00
$50,000 and less than $75,000
$105.00
$75,000 and less than $100,000
$120.00
$100,000
$120.00 for the first $100,000.00 plus $100.00 for each $100,000.00 or fraction thereof, thereafter, to a maximum license fee of $500,000.00
(Ord. 1591 § 2, 1995)
Gross receipts shall mean:
A. 
The total amount of all sales or business transactions conducted in the city with any other person or business entity; and
B. 
The total amount received for the performance of any act or service in the city 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 part of or in connection with the sale of merchandise, wares or goods; and
C. 
A business established outside of the city but maintaining a branch office within the city, or doing business within the city through an agent, broker or employee, shall report as gross receipts its total sales or receipts attributable to the local branch office, local agent, broker or employee.
In the event separate sales or receipt records are not maintained for said branch office, local agent, broker or employee or that the business of said branch office, agent, broker or employee within the city is that of performing essentially administrative functions in connection with sales or services performed or rendered elsewhere, the business tax shall be based on an amount equivalent to the volume of business which shall be computed by multiplying the total cost of maintaining said branch office, agent, broker or employee by five. Said total cost of maintaining said local branch office, agent, broker, or employee, shall include but not be limited to wages, salaries, commissions, bonuses, office rent, telephone, postage, utilities, janitorial and other expenses allocated for maintenance of said branch office, agent, broker or employee.
D. 
All other receipts, cash, credits, and property of any kind or nature from business conducted in the city without any deduction therefrom on account of the cost of property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or other expenses; and
E. 
Gross receipts of general contractors or building contractors (speculative) shall not include sums paid subcontractors of said general contractors or building contractors, performing services within the city for such contractors, provided such subcontractors have a valid business tax certificate issued by the city.
F. 
"Gross annual receipts (CATV grantee)" means any and all compensation and other consideration in any form whatever and any contributing grant or subsidy received directly or indirectly by a grantee from subscribers or users in payment for television or FM radio signals or service received within the city.
Gross annual receipts shall not include any taxes on services furnished by the grantee imposed directly on any subscriber or user by any city, state or other governmental unit and collected by the grantee for such governmental unit.
G. 
Gross receipts for real estate brokers or agents, travel agents, insurance brokers, and bail bond brokers shall mean the total gross commissions.
H. 
Gross receipts for horse or livestock auctions shall include the total sale price of each animal sold, excluding only sales and use taxes required to be collected at the time of sale; and all other fees and charges received by the auctioneer.
I. 
Excluded from gross receipts shall be the following:
1. 
Cash discounts allowed and taken on sales;
2. 
Any tax required by law to be included in or added to the purchase price and collected from the customer or purchaser. (Federal and state gasoline taxes are not excludable from gross receipts);
3. 
Such part of the sale price of property returned by purchasers upon rescission of the contract of sales as is refunded either in cash or by credit;
4. 
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, provided the agent or trustee makes available to the city clerk for inspection the names and addresses of the persons for whom collection is made and the amounts paid to them;
5. 
Credit allowed on property accepted as part of the purchase price and which property may later be sold;
6. 
Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;
7. 
As to a real estate agent or broker, the sales price of real estate sold for the account of other except that portion which represents commission or other income to the agent or broker.
(Ord. 1172 § 1, 1978)
Whenever any person shall, by use of signs, circulars, cards or any other advertising media, hold himself out as, or represent that he is, doing business in the city, then these facts may be used as evidence that such person is doing business in the city.
(Ord. 1172 § 2, 1978)
Any person, firm, corporation or business enterprise which is regularly and duty licensed, and maintains an established place of business within an incorporated city of the state of California, which city adopts a reciprocity exemption with the city of Hawthorne substantially in the form hereof is hereby exempted from the required payment of the fee for a business license in an amount equivalent to that which said entity has paid within a reciprocating city.
(Prior code 6-1701)