This chapter shall be known as the "Business License Tax
Ordinance of the City of Sunnyvale."
(Prior code § 6-1.101; Ord. 1477 § 1, 1968)
This chapter is adopted pursuant to the powers of the city of
Sunnyvale as a charter city as provided in Article IV of the city
Charter, and as authorized by Section 6 of Article XI of the Constitution
of the state of California, and solely to raise revenue for municipal
purposes and is not intended for regulation.
(Prior code § 6-1.102; Ord. 1477 § 1, 1968)
Except where the context otherwise requires, the definitions
contained in this section shall govern the construction of this chapter.
The word "may" is always directory and discretionary and
not mandatory; the word "shall" is always mandatory and
not directory or discretionary.
means any person who sells or offers for sale any real or personal property or service at an "auction," "public auction" or "auction sale," or by public outcry as these terms are defined in Section 5.16.010 of this title.
means professions, trades and occupations and all and every
kind of calling or enterprise, including the rental of real property,
and carried on for profit or livelihood.
means all manner of sideshows, freak or other exhibitions,
feats of strength, games of skill, merry-go-rounds, Ferris wheel or
any other amusement device (mechanical or otherwise), merchandise
booths for the sale of novelties or notions, and all other activities
incident to a carnival presented upon the streets, or parking lots
or vacant property within the city, and for which a charge of admission
is made, either for general entrance or for entrance into or participation
in any portion or department thereof.
means any exhibition of a menagerie or collection of animals,
feats of horsemanship, acrobatic performances, wire or rope dancing,
clowns, singers, or any other show held in a tent or under canvas
cover or in a building and for which a charge of admission is made.
means the city of Sunnyvale, California, including all of
the territory and jurisdiction thereof as presently constituted, and
any and all of the same which shall later come into existence by any
manner or means whatsoever.
means the person designated as the revenue officer of the
city of Sunnyvale for the purposes of this chapter.
means the director of finance of the city of Sunnyvale.
means any person working in, or engaged in, the operation
or conduct of any business, including, but not limited to the owner,
a member of the owner's family, partner, officer, agent, manager,
servant, or solicitor.
means a place of business located in the city of Sunnyvale.
means any person to whom a business license has been issued
pursuant to this chapter.
means any person who receives personal property in pledge
as security for a loan and includes any person who purchases personal
property absolutely but gives the seller a preference right to purchase
back the personal property.
means all firms; domestic and foreign corporations; associations;
syndicates; partnerships; joint ventures; clubs; Massachusetts business
or common law trusts; societies; and any officer or agent thereof;
and any natural person transacting, engaging in or carrying on any
business in the city of Sunnyvale, but excluding an employee who is
not also an owner.
means any building or buildings (whether or not connected),
in a single ownership, within which three or more separate spaces
or units are located which are available for rental and are intended
to be used for office or dwelling, lodging or sleeping purposes. This
term also shall include three or more contiguous spaces upon any parcel
of land available for rental and intended to be used for the parking
and maintenance of mobile homes or house trailers.
means an affidavit sworn to before a person authorized to
take oaths, or a declaration or certification made under penalty of
perjury.
(Prior code § 6-1.03; Ord. 1477 § 1, 1968; Ord.
1793-75 § 1; Ord. 2241-88 § 1; Ord. 2769-04 §
1)
Any person required to pay a business license tax under this
chapter shall not be relieved from the payment of any other permit,
fees or license tax for the privilege of doing such business required
under any other provision of this code, and shall remain subject to
the regulatory provisions of other chapters of this code.
(Prior code § 6-1.104; Ord. 1477 § 1, 1968; Ord.
2769-04 § 1)
The taxes imposed by this chapter shall become operative as
of January 1, 1976.
(Prior code § 6-1.105; Ord. 1477 § 1, 1968; Ord.
1793-75 § 2)
Nothing contained in this chapter shall be deemed or construed
as applying to any person transacting, engaging in and carrying on
any business exempt by virtue of the Constitution or applicable statutes
of the United States or of the state of California from payment of
taxes prescribed herein.
(Prior code § 6-1.201; Ord. 1477 § 1, 1968)
Nothing contained in this chapter shall be deemed or construed
to require the payment of any license tax by any institution or organization
which is conducted, managed or carried on wholly for the benefit of
charitable purposes and from which profit is not derived, either directly
or indirectly, by any person.
(Prior code § 6-1.202; Ord. 1477 § 1, 1968)
Nothing contained in this chapter shall be deemed or construed
to require the payment of any fees or license tax by any honorably
discharged or relieved veteran described in Section 16001 or 16001.5
of the Business and Professions Code of California, as amended, who
is physically unable to earn a livelihood by manual labor and who
is a voter or resident of this state, and who desires to hawk, peddle
or vend goods, wares or merchandise owned by him, except spirituous
malt, or vinous, or other intoxicating liquors, or to distribute circulars.
(Prior code § 6-1.203; Ord. 1477 § 1, 1968; Ord.
2769-04 § 2)
Any public utility possessing a franchise granted by the city
of Sunnyvale, and making annual payments under said franchise to the
city, shall not be subject to the provisions of this chapter.
(Prior code § 6-1.204; Ord. 1477 § 1, 1968)
No person shall transact, engage in, or carry on any business
within the city without first having procured a license from the city
to so do and having paid the tax hereinafter prescribed, and having
complied with any and all applicable regulations concerning the use
and occupancy of the premises from which the business is to be conducted.
(Prior code § 6-1.301; Ord. 1477 § 1, 1968)
There is hereby imposed a yearly license tax upon every person
transacting, engaging in, or carrying on any business within the city.
The amount of the tax is calculated as follows:
(a)
(For
the tax due January 1, 2007) For businesses based on employees or
rental units, twenty dollars for the first employee, thirty dollars
for two to five employees or rental units, or portion thereof, and
an additional twenty-five dollars for each additional group of five
employees or rental units, or portion thereof, up to a maximum of
four thousand seven hundred dollars for employees and two thousand
five hundred dollars for rental units.
(b)
(For
the tax due January 1, 2008) For businesses based on employees or
rental units, thirty dollars for the first employee, fifty dollars
for two to five employees or rental units, or portion thereof, and
fifty dollars for each additional group of five employees or rental
units, or portion thereof, up to a maximum of seven thousand dollars
for employees and three thousand five hundred dollars for rental units.
(c)
(For
the tax due January 1, 2009) For businesses based on employees or
rental units, thirty dollars for the first employee, fifty dollars
for two to five employees or rental units, or portion thereof, and
fifty dollars for each additional group of five employees or rental
units, or portion thereof, up to a maximum of nine thousand five hundred
dollars for employees and four thousand two hundred fifty dollars
for rental units.
(d)
For
businesses with both employees and rental units, the tax shall be
based on the greater number of employees or rental units.
(e)
(For
the tax due January 1, 2009 and thereafter) The amount of the tax
and cap shall be indexed annually, based upon the San Francisco/Oakland/Hayward
Consumer Price Index for the September to September period for the
preceding year, or comparable successor index established by the Bureau
of Labor Statistics of the United States Department of Labor. The
indexed amounts shall be set forth each year in the city's master
fee resolution.
(Prior code § 6-1.302; Ord. 1477 § 1, 1968; Ord.
1793-75 § 3; Ord. 2241-88 § 2; Ord. 2797-05 §
1; Ord. 3139-18 § 1)
The total number of employees for whom a tax is to be paid shall
be determined in the following manner:
(a)
For
any business having a fixed place of business in the city, the total
number of employees shall be the greatest number of persons employed
or expected to be employed or taking part in the business during any
twenty-four-hour period.
(b)
For
any business not having a fixed place of business in the city, the
total number of employees shall be the greatest number of persons
employed or expected to be employed or taking part in the business
within city limits during any twenty-four-hour period.
(Prior code § 6-1.303; Ord. 1477 § 1, 1968; Ord.
2769-04 § 3)
All fees and charges required to be paid under the provisions of this chapter, except those specified in Section 5.04.120, shall be fixed by resolution of the city council.
(Prior code § 6-1.304; Ord. 1477 § 1, 1968)
All applications for licenses to be issued hereunder, including first time licenses, licenses for newly established businesses, and renewals of any previously issued license must be accompanied by payment of an application fee at the time of submittal. Pursuant to Section 5.04.130, the amount of the fee shall be fixed by resolution of the city council.
Each person making application for the first license to be issued
hereunder, or a license for a newly established business, 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 license is requested;
(b)
The
place where such business is to be carried on;
(c)
If
the license is to be issued to a person doing business under a fictitious
name, the application shall set forth the names of the owners of the
business;
(d)
If
the license is to be issued to a corporation or a partnership, the
application shall set forth the names of the officers or partners
thereof;
(e)
The
number of employees employed in the business which is the subject
of the application;
(f)
Any
further information which the collector may require.
(Prior code § 6-1.401; Ord. 1477 § 1, 1968; Ord.
1793-75 § 4; Ord. 2727-03 § 1; Ord. 2769-04 §
4)
The collector is authorized to issue licenses required to be
obtained under this chapter upon persons making application therefor,
furnishing the sworn statement when required, and paying the license
tax imposed. Each license issued shall state upon its face:
(a)
The
name of the person to whom issued;
(b)
The
kind of business licensed;
(c)
The
location of such business;
(d)
The
date of expiration of the license;
(e)
The
number of employees; and
(f)
Such
other information as shall be deemed necessary by the collector to
enforce this chapter.
(Prior code § 6-1.402; Ord. 1477 § 1, 1968; Ord.
1793-75 § 5)
The payment of a license tax and the issuance of a license to
any person by the city shall not entitle the licensee to carry on
any business unless he has complied with all the requirements of this
code and all other applicable laws, nor to engage in or to carry on
any business in any building or in any premises designated in such
license in the event such building or premises are situated in an
area or locality in which the conduct of such business is in violation
of this code, or any ordinance of the city, or any other law.
(Prior code § 6-1.403; Ord. 1477 § 1, 1968)
No license issued to any person shall be transferable to any
other person. If a license is issued authorizing a person to transact,
engage in and carry on a business at a particular place, such licensee
may upon application therefor and payment of a fee have the license
amended to authorize the transacting, engaging in and carrying on
of such business under the license at another location to which the
business has been or is to be moved. A transfer of ownership of any
business for which a license has been issued to another person, under
such circumstances that the real or ultimate ownership after the transfer
is substantially similar to the ownership existing before the transfer,
shall not constitute a transfer requiring amendment of the license.
For the purpose of this section, stockholders, bondholders, partnerships,
or other persons holding an interest in a corporation or other entity
herein defined to be a person are regarded as having the real or ultimate
ownership of such corporation or other entity.
(Prior code § 6-1.404; Ord. 1477 § 1, 1968)
Upon application therefor and payment of a fee, the collector
may issue a duplicate of any unexpired license which has been lost
or destroyed.
(Prior code 6-1.405; Ord.
1477 § 1, 1968)
When applying for the renewal of any license previously issued,
the licensee shall submit to the collector upon a form to be provided
by the collector, a sworn statement setting forth such information
concerning the licensee's business during the preceding tax
period as may be required to enable the collector to ascertain the
amount of the license tax to be paid.
(Prior code § 6-1.406; Ord. 1477 § 1, 1968; Ord.
2769-04 § 5)
Any person transacting, engaging in and carrying on a business
at a fixed place of business in the city shall keep the license issued
hereunder posted in a conspicuous place upon the premises where such
business is carried on.
Any person transacting, engaging in and carrying on a business
but not operating at a fixed place of business in the city shall keep
the license issued hereunder upon his person at all times while transacting,
engaging in and carrying on such business.
(Prior code § 6-1.407; Ord. 1477 § 1, 1968)
It is unlawful for any person to whom a license has been issued
to fail or to refuse to produce the same for inspection when required
to do so by the collector, or any employee of the city working under
the direction of the collector, or by the chief of the department
of public safety or any public safety officer.
(Prior code § 6-1.409; Ord. 1477 § 1, 1968)
(a)
No
sworn statement required to be filed shall be conclusive as to the
matter set forth therein. The filing of a sworn statement shall not
preclude the city from collecting any sum of money actually due and
payable under this chapter by appropriate action.
(b)
The
collector shall have the right to examine and audit at all reasonable
times the books and records of any licensee, or person making application
for a license in order to (1) verify any sworn statement filed and
the items contained therein, and (2) verify or ascertain the amount
of any business license tax due.
(Prior code § 6-1.410; Ord. 1477 § 1, 1968)
If any person fails to file any required statement within the
time prescribed, or if after demand therefor made by the collector
he fails to file a corrected statement, or if any person subject to
the tax imposed by this chapter fails to apply for a license, the
collector shall proceed in such manner as he may deem best to obtain
facts and information on which to base his estimate of the tax due.
In case such determination is made, the collector shall give a notice
of the amount so assessed by serving it personally or by depositing
it in the United States mail, postage prepaid, addressed to the person
so assessed at his last known place of address.
(Prior code § 6-1.411; Ord. 1477 § 1, 1968)
The person so assessed may within fifteen calendar days after the serving or mailing of the notice referred to in Section 5.04.240 make application in writing to the collector for a hearing on the amount of the license tax assessed. If application for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the collector shall become final and conclusive and immediately due and payable. If such application is made, the collector shall give not less than ten calendar days' written notice in the manner prescribed herein to the person to show cause at a time and place fixed in the notice (which shall be not more than thirty calendar days after receipt of the application for a hearing) why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the person may appear and offer evidence why such specified tax, interest and penalties should not be so fixed.
(Prior code § 6-1.412; Ord. 1477 § 1, 1968; Ord.
2769-04 § 6)
After a hearing on the amount of tax assessed, the collector shall determine the proper tax to be paid, and shall thereafter give written notice to the person so assessed in the same manner as prescribed in Section 5.04.240 for giving notice of an assessment. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in this chapter.
(Prior code § 6-1.413; Ord. 1477 § 1, 1968)
(a)
All
license taxes shall be due and payable in advance on the first day
of January in the year due, and shall become delinquent thirty calendar
days thereafter. License taxes covering new business operations, commenced
after the first day of January, shall be due and payable on the day
such business is commenced, and shall be delinquent thirty calendar
days thereafter. The license tax for a new business commenced after
the first day of July shall be fifty percent of the license tax for
that business specified herein for the first year only.
(b)
Daily
license taxes shall be due and payable on each day in advance. Unless
otherwise specifically provided, license taxes shall not be prorated.
(Prior code § 6-1.501; Ord. 1477 § 1, 1968; Ord.
2769-04 § 7)
For failure to pay a license tax when due, the collector shall
add to the amount due a penalty of ten percent of the amount of the
license tax on the last day of each month after the due date thereof
until paid, provided the amount of such penalty to be added shall
in no event exceed one hundred percent of the amount of the license
tax due.
(Prior code § 6-1.502; Ord. 1477 § 1, 1968)
If the collector determines that the nonpayment of any license tax due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties stated in Section 5.04.280.
(Prior code § 6-1.503; Ord. 1477 § 1, 1968)
In addition to the penalties imposed, any person who fails to
pay any tax imposed by this chapter shall pay interest at the rate
of one percent per month, or fraction thereof, on the amount of the
tax exclusive of penalties, from the date on which the tax first became
delinquent until paid.
(Prior code § 6-1.504; Ord. 1477 § 1, 1968)
Every penalty imposed upon any person and such interest as accrues, under the provisions of Sections 5.04.280 to 5.04.300, inclusive, shall become a part of the tax required to be paid.
(Prior code § 6-1.505; Ord. 1477 § 1, 1968)
The collector shall not issue any license or reissue one previously
revoked, whether for the same or another business, to any person who
at the time of application is indebted to the city for any delinquent
license taxes until that person shall have paid any delinquent license
taxes, together with any penalty and interest, and shall have furnished
to the collector any sworn statement required in this chapter.
(Prior code § 6-1.506; Ord. 1477 § 1, 1968; Ord.
1793-75 § 7)
Whenever the amount of any tax, interest or penalty has been
overpaid or paid more than once, or has been erroneously or illegally
collected or received by the city under this chapter, it may be refunded
provided a claim in writing therefor, stating under penalty of perjury
the specific grounds upon which the claim is founded, is filed with
the collector within three years from the last day of the calendar
month following the period of time for which the amount which is the
subject of the claim was paid. The claim shall be on a form furnished
by the collector. No refund shall be paid unless the claimant establishes
his right thereto by written records showing entitlement thereto.
(Prior code § 6-1.507; Ord. 1477 § 1, 1968)
The amount of any license tax, interest and penalty, and all
other fees and charges required to be paid under this chapter, shall
be deemed a debt due to the city. The city may maintain a civil action
thereon in its own name in any court of competent jurisdiction for
the amount thereof, together with its court costs. Such civil action
shall not be a bar to any criminal action provided by law or by this
chapter.
(Prior code § 6-1.508; Ord. 1477 § 1, 1968)
A license issued under the provisions of this chapter may be
revoked by the collector if the licensee shall conduct, engage in
or carry on his business in an unlawful manner or fails to comply
with the provisions of this chapter, or any other provisions of this
code.
(Prior code § 6-1.601; Ord. 1477 § 1, 1968)
Prior to the revocation of any license, the licensee shall be given notice of the proposed action and shall be given an opportunity to be heard. If, within five days after such notice of proposed action has been given to the licensee he requests a hearing on the proposed revocation, a public hearing shall be held within thirty days after such request, upon ten days' notice to the licensee. The collector shall conduct the hearing, and if, as a result thereof such license is ordered revoked, such holder shall have the right, within fifteen days after such order, to appeal such action to the director in the manner specified in Sections 5.04.370 to 5.04.400. Notice of the proposed revocation of any license, of the date of the hearing, and of the decision of the collector shall be given by serving it personally upon the licensee or by depositing it in the United States mail, postage prepaid, addressed to the licensee at the place of business set forth in the license.
(Prior code § 6-1.602; Ord. 1477 § 1, 1968)
Any person aggrieved by any decision of the collector pursuant
to this chapter may appeal to the director by filing a notice of appeal
with the director within fifteen days of the serving or mailing of
the decision.
(Prior code § 6-1.701; Ord. 1477 § 1, 1968)
The director shall fix a time and place for hearing such appeal.
The director shall give notice thereof in writing to such person by
serving it personally or by depositing it in the United States mail,
postage prepaid, addressed to such person at his last known place
of address, or in the case of a licensee, to the place of business
set forth in the license.
(Prior code § 6-1.702; Ord. 1477 § 1, 1968)
The director shall have authority to determine all questions
raised on such appeal at the time of the hearing. No determination
so made by the director shall conflict with any substantive provision
of this chapter.
(Prior code § 6-1.703; Ord. 1477 § 1, 1968)
No penalty provided for in this chapter shall be imposed after
the filing of an appeal, or prior to the completion of the hearing
on the appeal and the making of a determination of the subject of
the appeal by the director.
(Prior code § 6-1.704; Ord. 1477 § 1, 1968)
(a)
It
shall be the duty of the collector and he is directed to enforce each
and all of the provisions of this chapter, and the chief of the department
of public safety shall render such assistance in the enforcement hereof
as may from time to time be required.
(b)
The
collector in the exercise of the duties imposed upon him hereunder
shall examine or cause to be examined all businesses conducted in
the city of Sunnyvale to ascertain whether the provisions of this
chapter have been complied with.
(Ord. 1477 § 2, 1968)
All remedies prescribed in this chapter are cumulative, and
the use of one or more remedies by the city of Sunnyvale shall not
bar the use of any other remedy for the purpose of enforcing the provisions
hereof.
(Ord. 1477 § 3, 1968)
