The following words or phrases as used in this Article shall
have the following meanings:
Any business, commercial enterprise, trade, calling, vocation,
profession, occupation, or means of livelihood, whether or not carried
on for gain or profit.
The City of Santa Monica.
"Evidence of doing business" shall include, but not be limited
to, a person's or entity's use of signs, circulars, cards, telephone
books, newspapers, or trade publications to advertise, hold out or
represent that such person or entity is in business in the City, or
when any person or entity holds an active license or permit issued
by a governmental agency indicating that such person or entity is
in business within the City, or when any person or entity gives other
evidence of transacting and carrying on business, and such person
fails to deny in a sworn statement given to the Director of Finance
that such person or entity is not "engaged in business" within the
City, after being requested to do so by the Director of Finance, then
these facts shall be considered prima facie evidence that such person
or entity is conducting a business in the City.
Unless a different meaning is specifically defined, "gross receipts"
shall include:
The total amount of the sale price of all sales, the total amount
charged or received for the performance of any act, service, or employment
of whatever nature it may be, whether such service, act, or employment
is done as part of or in connection with the sale of goods, wares,
merchandise or not, for which a charge is made or credit allowed,
including all receipts, cash, credits, and property of any kind or
nature, any amount for which credit is allowed by the seller to the
purchaser 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, losses or any other expense whatsoever.
The amount of any Federal manufacturers' or importers' excise
tax included in the price of property sold, even though the manufacturer
or importer is also the retailer thereof and whether or not the amount
of such tax is stated as a separate charge.
In connection with a person leasing, subleasing, or renting
property, all amounts paid by a tenant or subtenant to a lessor or
sublessee for the services performed, or materials used, or utilities
or facilities furnished by the lessor or sublessor on the premises
or in connection with the tenant's or subtenant's use, possession,
or the right to possess the property, including, but not limited to,
income from laundry facilities on the property; any receipts paid
by a tenant or subtenant to a lessor or sublessor for the use or possession
of land, or the right to use or possess land other than that upon
which the building or structure is located but which is used or possessed
or is available for use or possession by a tenant or subtenant for
purposes related to the tenancy, all amounts paid as prepaid rent,
and all amounts paid by a tenant or subtenant for the rental of any
furniture, equipment, fixtures, garage, or storage space.
Receipts of any person received as commissions or fees earned,
or charges of any character made or compensation of any character
received, for the performance of any service by said person or any
of said person's employees and receipt of any person received as partial
or full compensation or reimbursement for salaries, payroll taxes,
fringe benefits, and any and all similar expenses for persons who
are employees of said person and receipts of any person received as
partial or full compensation or reimbursement for equipment, supplies,
utilities, or other items or services acquired by said person in that
person's name and used or consumed in the performance of services.
"Gross Receipts" shall not include:
The amount of any Federal tax imposed on or with respect to
retail sales whether imposed upon the retailer or upon the consumer
and regardless of whether or not the amount of Federal tax is stated
to customers as a separate charge.
Any California State, city, or city and county sales or use
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 sales price of any property previously sold
and returned by the purchaser to the seller which is refunded by the
seller by way of cash or credit allowances given or taken as part
payment on any property so accepted for resale.
Any refundable deposit which is returned to the depositor.
That portion of the receipts of a general building contractor licensed under Section 6.08.060 or 6.08.070, which represents payments to subcontractors, provided such subcontractors are licensed under the provisions of this Chapter and that the general contractor furnishes the Director of Finance with the names and addresses of the subcontractors and the amounts paid to each subcontractor.
Bad debts taken from gross receipts reported during a prior
tax year in accordance with generally acceptable accounting practices.
Anything which the City of Santa Monica may not lawfully include
by virtue of the Constitution of the United States or the Constitution
of the State of California.
Fees for actual costs of governmental requirements (e.g., inspections,
plan checks, etc.) paid by a licensee on behalf of a third party.
Any natural person other than a State licensed building trades
contractor, who is engaged to aid in the business of any other person,
whether as a professional as defined hereinafter, or whether pursuant
to any license, certificate, or registration authorized by the California
Business and Professions Code, as the same now exists or as hereafter
amended, or whether with regard to any other trade, skill or occupation,
and who receives remuneration either through commission, or pursuant
to any contract of employment which excludes regular wages or salary,
or in any other manner other than through regular wages, salary or
a direct participation in the profits of the business.
Manage, control or carry on, whether done as an owner, an
agent, an employee, or a lessee, or a licensee.
(Prior code § 6000; added
by Ord. No. 1523CCS, adopted 5/8/90)
It shall be unlawful for any person, whether as principal or
agent, clerk or employee, either for him or herself or for any other
person, or for any body corporate, or as an officer of any corporation,
or otherwise, to operate in the City of Santa Monica any business
specified in this Code and as herein defined, whether or not such
business is carried on for gain or profit, without first having paid
the required business tax and having procured a license from said
City so to do and without complying with all other applicable regulatory
ordinances now existing or hereafter adopted by the City Council,
and without obtaining the permit, certificate of compliance, or other
instrument required under the provisions of this Code and complying
with all regulations covering such business herein contained; and
the carrying on of any business not specifically exempted by law without
first having complied with the provisions of this Code shall constitute
a separate violation thereof for each and every day that such business
is so carried on.
(Prior code § 6001; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
The
requirements of this Chapter relating to the payment of business license
taxes shall not apply to the operator of any small business if the
business operates from a physical location within the City and the
tax liability of the business would otherwise be calculated based
upon gross receipts.
(b)
For
purposes of this Section, the term "small business" is defined as
a business with total taxable and nontaxable annual gross receipts
from within and without the City during the preceding calendar year
that do not exceed forty thousand dollars.
(c)
Any person claiming exemption from the requirement of paying the business license tax under this Section shall be required to obtain a business license and timely file for exemption and subsequent renewals before the delinquency date. The failure to timely file or renew prior to the date the taxes would otherwise have been delinquent pursuant to Section 6.04.160, shall render inapplicable the exemption provided in subsection (b) of this section and shall subject the person to the tax that would otherwise be payable as well as to any interest and penalty applicable thereto. Persons claiming exemption shall also be required to pay the business license fee, renewal processing fee, all other applicable City fees, and to obtain all permits required for the operation of the business.
(d)
Any
person claiming exemption under this Section shall submit documentation
evidencing the total taxable and nontaxable gross receipts of the
applicant in support of its initial exemption registration and the
annual exemption renewal. Such documentation shall comply with the
requirements established by the Finance Director to ensure the accuracy
and validity of the City's determination on the exemption claim.
(Added by Ord. No. 2158CCS, adopted 6/14/05)
Any approved participant, including vendors, in any community
event authorized by the City shall not be required to obtain a business
license or pay business license taxes solely due to participation
in the community event. An approved participant otherwise subject
to the requirements of this Chapter shall not exclude any gross receipts
attributable to participation in the community event in total gross
receipts calculations as required by this Article.
(Added by Ord. No. 2458CCS §
1, adopted 5/27/14)
(a)
Director of Finance to Issue. The licenses required by this
Code shall be issued by the Director of Finance and shall state therein
the amount thereof, the period of time covered thereby, the name of
the person to whom issued, the business licensed and the location
or place of business where such business is to be carried on.
(b)
Prohibition on Assignment or Transfer. No license granted
or issued under provisions of this Code shall be in any manner transferred
or assigned. If a person or entity that holds a City license loans
or otherwise allows such City license to be used by a nonlicensed
person or entity, such City license shall automatically be revoked.
(c)
Duplicate Licenses. The Director of Finance shall make a charge
of ten dollars for each duplicate license issued under the provisions
of this Code which has been lost or destroyed.
(d)
Mistake Not Binding on City. In no case shall any mistake
made by the Director of Finance in stating the amount of a license
prevent or prejudice the collection by the City of the amount actually
due from any licensee.
(e)
City Clerk References. Whenever in this Article the City Clerk
is charged with the responsibility of processing, issuing, or administering
a license or permit, the reference to the City Clerk shall be deemed
a reference to the Director of Finance.
(Prior code § 6003; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
All
license fees shall be paid in advance in legal money of the United
States, at the office of the Director of Finance.
(Prior code § 6004; added
by Ord. No. 1523CCS, adopted 5/8/90)
Except as otherwise provided in Section 6.08.050 (pertaining to auto dealers), a separate license must be obtained for each branch establishment or separate place of business in which business is conducted. Each license shall authorize the party obtaining it to operate only that business described in such license and only at the location or place of business which is indicated thereby.
(Prior code § 6005; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS § 1,
adopted 5/28/96)
A separate business license is required for each business activity which comes within any of the business classifications described in Chapter 6.08 of this Article 6.
(Prior code § 6006; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
Any
person holding a California State license shall be considered a contractor
and must secure his or her City license.
(b)
Any
general building contractor or subcontractor holding a contract with
the City must secure a City license.
(c)
Any
person holding a State of California contractor's license will be
deemed to be engaged in business if he or she is engaged within the
City in work covered by his or her State license and must obtain a
City business license, unless he or she is employed by another person
who holds the same type of State license and a City business license.
(Prior code § 6007; added
by Ord. No. 1523CCS, adopted 5/8/90)
This Section applies to persons who build upon property in which
they have an ownership interest. Every person who makes application
for a building permit as a builder-owner must file an affidavit that
all workers under his or her supervision and direction are employed
by the hour, or day, and do not hold a State of California license.
(Prior code § 6008; added
by Ord. No. 1523CCS, adopted 5/8/90)
Prior to requesting final approval of any building or project,
it shall be the duty of the general contractor or owner-builder to
fill out and return the form to be provided by the Building Department
listing the names and addresses of all subcontractors or specialty
contractors performing work or services upon said structure or project.
It shall be the duty of the general building contractor or owner-builder
at the time he or she makes any subcontract (written or oral) for
the performance of any work by a subcontractor or specialty contractor,
and which is to be performed within the City, to see that such subcontractor
or specialty contractor has obtained the required contractor's City
license from the City and he or she shall not permit any such contractor
to perform any of the work contemplated in any such subcontract (written
or oral) unless and until such required contractor's license has been
first obtained. Final approval for such building shall not be given
until all subcontractors or specialty contractors have obtained all
necessary City licenses.
(Prior code § 6009; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
Every
daily license shall expire at midnight on the day during which it
was issued.
(b)
Every
monthly license shall expire at midnight of the last day of the month
during which it was issued.
(c)
Every
annual license, whether based on gross receipts or a flat rate, shall
expire at midnight on the June 30th next succeeding its issuance unless
specified otherwise in this Code.
(Prior code § 6010; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2126CCS § 1, adopted 6/15/04; Ord. No. 2292CCS § 3, adopted 7/28/09; Ord. No. 2315CCS § 6, adopted 6/22/10)
The license fee for any daily, monthly, or annual license, or
any license based upon gross receipts, shall not be reduced even though
a portion of the license period has expired at the time the license
is issued.
(Prior code § 6011; added
by Ord. No. 1523CCS, adopted 5/8/90)
In the event a bond is required, no license shall be issued
until said bond has been filed with the Director of Finance.
(Prior code § 6012; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
The
payment of a license fee made in person by the licensee or licensee's
agent or representative shall be made on or prior to close of City
business hours, and will be clocked in as received at the date of
delivery, if such personal delivery is made prior to close of City
business hours.
(b)
If
payment is made by United States mail, the payment date will be the:
(1) date of cancellation by the United States Postal Service, as reflected
on the envelope which contains the payment; or (2) date of receipt
by the City for any payment mailed in an envelope which has used a
postal meter.
(Prior code § 6013; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
No
renewal of a business license shall be issued until payment in full
of all delinquent business license taxes, including accrued interest
and applicable penalties thereon is received by City.
(b)
It shall be the responsibility of each business licensee to obtain and pay for renewal license regardless of whether or not such licensee has received a renewal notice from the City. Any failure to receive such notice shall not affect the applicability of penalties for nonpayment or late payment set forth in Section 6.04.160.
(Prior code § 6014; added
by Ord. No. 1523CCS, adopted 5/8/90)
A penalty of twenty percent of the license fee due, in addition
to the amount of such license fee, shall be levied on all licensees
who fail to pay their yearly license renewal prior to September 1st
("delinquent date") and on all new businesses operating in the City
who fail to secure a business license within thirty days after opening
for business. An additional penalty of ten percent of the original
license fee due shall be added for each month or portion thereof that
said license fee remains unpaid after the delinquent date. In no case,
however, shall the penalty exceed one hundred percent of the original
license fee due.
(Prior code § 6015; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2126CCS § 2,
adopted 6/15/04; Ord.
No. 2292CCS § 4, adopted 7/28/09; Ord. No. 2315CCS § 7,
adopted 6/22/10)
(a)
No penalty assessed pursuant to Section 6.04.160 shall be waived or refunded except as provided for in this Section.
(b)
The
City Manager or designee may waive or refund a penalty assessed pursuant
to this Section upon receiving satisfactory proof that the licensee
mailed the business license payment prior to September 1st of the
year in which it was due and that the failure of the payment to be
postmarked prior to September 1st of the year in which it was due
or delivered was based upon operational problems caused by the United
States Postal Service.
(c)
Satisfactory
proof must include documentation from the United States Postal Service
that unusual operational problems or natural disasters occurred that
created the possibility that the postmark was delayed or the mail
lost. In addition, the City Manager may require such other documentation
as is necessary to verify the claim, such as bank, checking, and other
accounting records that might corroborate the claim that payment was
timely deposited in the mail.
(d)
No
interest shall be paid on any money refunded pursuant to this Section.
(e)
The
decision of the City Manager shall be final and not subject to additional
hearing or review.
(Prior code § 6015a; added
by Ord. No. 1573CCS § 1, adopted 2/26/91; amended by Ord. No. 2126CCS § 3, adopted 6/15/04; Ord. No. 2292CCS § 5, adopted 7/28/09)
A person who is disabled within the meaning of any Federal or
State law may request and be issued a certificate of exemption from
the payment of the business license fee for any retail, manufacturing,
or wholesaling business in which he or she is engaged if the gross
receipts of the business are less than sixty thousand dollars.
(Prior code § 6016; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
Exemption. The provisions of this Chapter shall not require
the payment of a license to carry on any business, or require the
payment of any license, from any nonprofit corporation or organization
which is carried on wholly for the benefit of nonprofit purposes and
from which profit is not derived, either directly or indirectly by
any person. No license shall be required for the conducting of any
entertainment, concert, exhibition, or lecture on scientific, historical,
literary, religious, political, or moral subjects whenever the receipts
of any such entertainment, concert, exhibition or lecture are to be
appropriated entirely to any nonprofit purpose.
(b)
Definition of Nonprofit Corporation or Organization. For purposes
of this Section, a nonprofit organization is defined as one which
is organized not for profit but for the promotion of the welfare of
others. A nonprofit corporation is defined as any nonprofit corporation
organized under California law for charitable purposes. A nonprofit
organization or corporation is one which is exempt from paying Federal
income tax by virtue of its nonprofit status.
(c)
Evidence of Nonprofit Status. Upon request of the Director
of Finance, a corporation or organization claiming exemption from
the business license fee based upon its nonprofit status shall submit
documentation satisfactory to City, evidencing the nonprofit status
of the applicant organization or corporation.
(Prior code § 6017; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
No
license fee or any portion thereof may be refunded after one year
from the date of payment thereof.
(b)
No
person or entity shall be entitled to a refund on a business license
after he has engaged in business under the license.
(c)
No
person or entity shall be entitled to a refund on a business license
if such person or entity has any delinquent business license fees,
including accrued interest or penalties. Any overpayment of business
license fees shall first be applied against any such delinquent fees,
interest, or penalties.
(Prior code § 6018; added
by Ord. No. 1523CCS, adopted 5/8/90)
The conviction and punishment of any person for transacting
any business without a license shall not excuse or exempt such person
from the payment of any license due or unpaid at the time of such
conviction, and nothing herein shall prevent a criminal prosecution
for any violation of the provisions of the Code.
(Prior code § 6019; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
Filing of Statement. In all cases where the amount of license
to be paid by any person is based upon the amount of gross receipts,
or upon the number of vehicles used, such person or entity, before
obtaining a license for such business and within sixty days after
the beginning of each license period, shall file with the Director
of Finance a written statement in the form required by the Director
of Finance, supported by such documentation requested by the Director
of Finance, showing the total amount of gross receipts during the
preceding calendar year, or the number of vehicles used at the date
of such statement.
(b)
Contents of Statement. Any statement filed pursuant to this
Section shall be signed and shall contain the following:
I declare, under penalty of making a false declaration, that
I am authorized to make this statement and to the best of my knowledge
and belief it is a true, correct and complete statement, made in good
faith for the period stated.
For making a false statement or declaration the person signing
the statement shall be guilty of a misdemeanor.
(c)
Confidentiality as to Gross Receipts. Information filed pursuant
to this Section as to the gross receipts of a particular person or
entity shall be confidential in character and shall not be subject
to public inspection. It shall be the duty of the Director of Finance
to preserve and keep such gross receipts information so that it may
not become known except to the persons charged by law with the administration
of this Code.
(d)
Statement Not Conclusive. No statement filed pursuant to this
Section shall be conclusive upon the City or upon any officer thereof
as to the matters therein set forth, and the same shall not prejudice
the right of the City to recover any amount that may be ascertained
to be due from such person in addition to the amount shown by such
statement should it be found to be incorrect.
(e)
Newly Established Business License Renewal. In any case where
an original license is to be issued for a newly established business,
the minimum tax applicable for that type of business shall be paid
for the original license. At the date of renewal, if such business
is subject to a business license tax based upon gross receipts, an
additional fee shall be charged, based upon the gross receipts of
such business during the prior year, at the tax rate applicable for
such business, after deducting from the amount so found to be due
the amount paid at the time such original license was issued.
(f)
Accuracy of Statement Subject to Audit. The correctness of
any statement filed pursuant to this Section shall be subject to audit
and verification by the Director of Finance, who is hereby authorized
and empowered to inspect and audit the books and records of any and
all persons licensed to carry on any business specified in this Code.
No person licensed to carry on any business specified in this Code
shall refuse or fail to allow the Director of Finance to inspect and
audit such books and records or shall refuse or fail to provide such
additional information as requested by the Director of Finance.
(g)
Failure to File Statement. If any person or entity required
to file any statement pursuant to this Section shall fail to do so
such person shall be guilty of a violation of this Code.
(Prior code § 6020; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2126CCS § 4,
adopted 6/15/04; Ord.
No. 2292CCS § 6, adopted 7/28/09)
For any tax due on or after July 1st, gross receipts shall be
determined based upon gross receipts for the calendar year preceding
the license tax period for which the tax is due; EXCEPT that for licensees
of newly established businesses that were not in operation during
the preceding calendar year, the gross receipts shall be determined
based upon gross receipts from the date the business opened through
June 30th.
(Prior code § 6022; added
by Ord. No. 1523CCS, adopted 5/8/90)
When, by reason of the provisions of the Constitution of the
United States or the Constitution of the State of California, the
business license fee imposed by this Article cannot be enforced without
there being an apportionment according to the amount of business done
in the City of Santa Monica, or in the State of California, as the
case may be, apportionment rules shall be established as follows:
(1)
The
City Council from time to time shall adopt by resolution general guidelines
for apportionment.
(2)
The
Director of Finance with the approval of the City Attorney, may make
such rules and regulations for the apportionment of the tax as are
necessary and desirable to overcome the constitutional objections
and which are consistent with the general apportionment guidelines
adopted by resolution of the City Council. The Director of Finance
shall publish such rules and regulations once in a newspaper of general
circulation within the City of Santa Monica. Within ten days of the
date of publication of such rules and regulations, any interested
person may file a request with the City Clerk that the City Council
review the rules and regulations so published. The rules and regulations
shall be final at the expiration of the period for requesting review
in the event no request for review is filed, or in the event of the
filing of a request for review when the rules and regulations have
been adopted by the City Council.
(Prior code § 6023; added
by Ord. No. 1523CCS, adopted 5/8/90)
Any license issued pursuant to this Code may be suspended or
revoked by the City Manager or designee when it shall appear that
the business of the person to whom such license was granted has been
conducted in a disorderly or improper manner, or in violation of any
statute of the State, or ordinance of this City or of this Code, or
that the person conducting said business is of an unfit character
to conduct the same, or the purpose for which the license has been
issued is being abused to the detriment of the public, or is being
used for a purpose different from that for which the license was issued.
If the license of any person shall be so revoked, another such license
shall not be granted to such persons within twelve months after the
date of such revocation.
(Prior code § 6024; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2365CCS § 8,
adopted 7/26/11)
Every person having a license under the provisions of this Code
and carrying on a business at a fixed place of business shall keep
such license posted and exhibited while in force in some conspicuous
part of said place of business. Every person having such a license
and not having a fixed place of business, shall carry such license
with him or her at all times while carrying on the business for which
the same was granted. Every person having a license under the provisions
of this Code shall produce and exhibit the same whenever requested
to do so by any police officer, any person authorized by City to issue,
inspect or collect licenses, or by any person being solicited. Businesses
operated without an agent or employee on the premises shall post in
a conspicuous place the name, address, and telephone number of the
person or persons to be contacted in event of an emergency.
(Prior code § 6025; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a)
The
Director of Finance shall conduct a program to audit business license
tax returns of businesses operating in the City of Santa Monica. The
audit shall be conducted for the two tax periods preceding the current
tax period.
(b)
If,
subsequent to the audit, it is determined that the business has been
delinquent or has nonreported or under-reported gross receipts, thereby
underpaying business license taxes, the licensee shall pay to the
City within ten days of notification of the determination; the amount
of tax due, interest from the date the tax was due in the amount determined
by the Director of Finance based upon the City's actual rate of return
on its invested funds, and a penalty in the amount of the tax due.
Interest shall continue to accrue on the additional tax amount until
such amount is paid in full.
(c)
No
person who fails to pay the tax due as required by this Section shall
operate a business in the City of Santa Monica.
(d)
The
Director of Finance shall issue forms and instructions and take other
actions as are needed to implement this Section.
(Prior code § 6026; added
by Ord. No. 1523CCS, adopted 5/8/90)
The repeal of code sections set forth in Chapters 6.20 and 6.24 of the Santa Monica Municipal Code shall not in any manner affect the prosecution for violations thereof, if the violations were committed prior to the effective date of the ordinance repealing those Sections, and shall not affect any prosecution or action which may be pending in any court for the violation of these Sections. As to any violation or as to any such prosecution or pending prosecution or actions, the Sections in effect prior to the adoption of this ordinance shall be deemed to continue and be in full force and effect. The repeal of these Sections shall not in any manner affect the collection of any taxes or fees due prior to the effective date of this ordinance. As to the collection of any such tax or fee, the Sections in effect prior to the adoption of this ordinance shall be deemed to continue in full force and effect.
(Added by Ord. No. 1851CCS §
2, adopted 5/28/96)
