This Chapter enumerates each primary business classification, and the tax rate group applicable to each such classification in calculating the license fee due. Tax rate groups are more particularly described in Chapter
6.12. In addition, specific information relevant to calculation of gross receipts for particular business classifications is described herein.
(Prior code § 6050; added
by Ord. No. 1523CCS, adopted 5/8/90)
The Director of Finance or his or her designee shall determine
the license classification for each business in the City. Such determination
shall be final and not subject to appeal.
(Prior code § 6051; added
by Ord. No. 1523CCS, adopted 5/8/90)
The business classifications set forth in Sections
6.08.040 through
6.08.160 shall pay a business license fee based upon gross receipts.
(Prior code § 6052; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group III and applies
to a person or entity who, for a fee or commission, engages in the
occupation of bringing buyers and sellers together for negotiations,
or negotiates or arranges terms and conditions for buyers and sellers
for the purpose of effecting a sale of real property or personal property
(including securities, commodities, and/or insurance) only. For purposes
of this business classification, the following criteria shall apply:
(a) Gross
receipts for an agent/broker licensee shall include:
(1) All commissions, fees, charges, monies, or compensation of any character,
received by such person and/or entity for performing in the capacity
described herein.
(2) All other monies received by such person and/or entity in connection
with the sale of real or personal property, except those monies received
and placed in a segregated account or escrow for the benefit of a
third party, and not subject to such person and/or entity's use or
control.
(b) An
agent/broker shall not obtain or retain title to the real or personal
property which is the subject of the sales transaction.
(c) An
agent/broker's unadjusted gross income as reflected on its federal
income tax return, shall be considered evidence of such licensee's
total gross receipts upon which the business license fee is payable.
This business classification shall be limited to real estate
brokers, insurance brokers, travel agents or travel agency, stock
brokers and bond brokers, commodities brokers and manufacturer's representatives.
(Prior code § 6052A; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a) This
business classification is in Tax Rate Group II and applies to the
buying, selling or offering for sale, of new or used automobiles,
trucks, vans, trailers, house trailers or campers, including parts
and accessories, and any maintenance and repair services for such
vehicles.
(b) For
purposes of this Section, the term "new vehicle dealership" shall
have the same meaning as the term "franchise" as that term is defined
in Section 331 of the California
Vehicle Code; and the term "used
vehicle dealership" shall mean a business which sells only used vehicles.
(c) A
separate business license is required for each new vehicle dealership
regardless of whether it is owned or managed by a person who owns
or manages more than one new vehicle dealership. A separate business
license is required for each used vehicle dealership. However, a used
vehicle dealer who owns and operates more than one location under
the same business name or entity may utilize a single license.
(d) The
gross receipts for each separate new vehicle dealership or used vehicle
dealership in the City shall include all sales arising from the dealership
regardless of where the product is delivered. The gross receipts from
a new vehicle dealership shall include receipts from sales of parts,
maintenance, repairs and used vehicle activities associated with that
dealership; and those activities shall not require a separate business
license regardless of their location in the City, so long as they
are associated with the dealership.
(Prior code § 6052B; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS §
3, adopted 5/28/96)
This business classification is in Tax Rate Group III and applies
to a general building contractor whose principal contracting business
is in connection with any structure built, or to be built for the
support, shelter and enclosure of persons, animals, chattels, or movable
property of any kind, requiring in its construction the use of more
than two unrelated building trades or crafts, or to do or superintend
the whole or any part thereof or a general engineering contractor
whose principal contracting business is in connection with fixed works
requiring specialized engineering knowledge and skill including, but
not limited to, irrigation, drainage, water, power, railroads, highways,
streets, pipelines, powerhouse plants, industrial plants, land leveling,
earth moving, harbors, and concrete surfacing. This Section does not
include anyone who merely furnishes material or supplies without fabricating
them in the performance of the work of a general building or engineering
contractor.
(Prior code § 6052C; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group III and applies
to any person or entity engaging in any of the following listed building
trades:
(2) Boilers,
hot water heating, steamfitting.
(9) Excavating,
grading, trenching, paving, surfacing.
(10) Fire protection engineering.
(14) Heating and/or air conditioning.
(15) House and building moving or wrecking.
(20) Miscellaneous, specialty.
(29) Sewer (five thousand dollar surety bond is required).
(34) Tile (ceramic and mosaic).
(37) Well drilling.
A lathing and plastering business which holds a State license
for both and who uses his or her or its own employees to do both may
be issued one license covering both businesses.
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(Prior code § 6052D; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group I and applies
to corporate or administrative headquarters located in the City. Any
business in this license classification shall pay a license tax based
upon gross receipts as specifically defined herein. For purposes of
this business classification, gross receipts shall be equal to the
costs of operation of such corporate or administrative headquarters.
"Costs of operation" shall be equal to the total of the following
items:
(a) Annual
fair rental value of all real property located in the City and used
for such corporate or administrative headquarters.
(b) Annual
payroll of all employees based in the City.
(c) The
cost of all utilities related to the operation of such corporate or
administrative headquarters.
(Prior code § 6052E; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group I and applies
to a business which engages in the manufacturing, fabrication, or
assembly of goods, wares, merchandise, or components. Gross receipts
of a business licensed as a manufacturer shall include all gross receipts
from products manufactured in the City. In addition, if the product
is not sold from the manufacturer's location in the City, an amount
equal to the value of all component parts of the product, shall be
included in the licensee's gross receipts.
(Prior code § 6052F; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group IV and applies
to any person, group, association, partnership, firm, or corporation
engaged in a profession, vocation or calling including, but not limited
to, the following:
(6) Certified
financial planner.
(7) Certified
public accountant.
(9) Child,
marriage and family counselor.
(30) Veterinary.
Whenever a State of California license is required to entitle
a person to practice a profession, the Director of Finance may require,
before issuing a license pursuant to this Section, that the applicant
exhibit an unexpired and unrevoked license entitling said applicant
to practice such profession in the State of California.
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(Prior code § 6052G; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group I and applies
to any person or entity engaged in providing recreation, entertainment,
or amusement opportunities. Gross receipts for such classification
shall include all receipts from all business locations in the City.
Examples of businesses within the recreation and entertainment classification
include, but are not limited to, museums, theaters, dance halls, night
clubs, golf courses, bowling, billiards, skill games and machines,
arcades, rides, shooting galleries, and fortune telling.
(Prior code § 6052H; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group I and applies
to any person, group, association, partnership, firm, corporation
or other entity (whether as the owner or an agent for the owner, a
lessee, sublessee or licensee) which rents, leases, subleases or has
available for rent, lease, sublease or license, any commercial building,
industrial building, office or office building, structure, land or
vacant lot that may be utilized for commercial, industrial, office
or storage uses. Gross receipts for this business classification shall
include one hundred percent of gross receipts from the rental, leasing,
subleasing or licensing of commercial property located in the City.
A separate business license shall be required for each such commercial
rental property.
(Prior code § 6052I; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS §
4, adopted 5/28/96)
(a) This
business classification is in Tax Rate Group I and applies to any
person, group, association, joint venture, partnership, firm, corporation
or other entity (whether as the owner, or an agent of the owner),
which rents, leases, subleases, licenses or has available for rent,
lease, sublease or license, accommodations in more than three units
for residential use where such units are located on the same or an
adjoining property.
(b) For
purposes of this business classification, a living unit for residential
use shall include, without limitation, an apartment, hotel or motel
room or suite, rooming house, trailer court, auto court or other accommodations.
(c) Gross
receipts for this business classification shall include one hundred
percent of gross receipts from the rental of accommodations in any
of the types of property described herein. Gross receipts shall also
include: (i) all monies received for the rental of furniture, equipment,
appliances, and garages, parking and/or storage space; (ii) all monies
received for payment of utility charges attributable to the accommodations;
and (iii) all monies received in connection with providing additional
amenities, including, but not limited to washer/dryer facilities.
(Prior code § 6052J; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS §
5, adopted 5/28/96)
This business classification is in Tax Rate Group I and applies
to the selling of any goods, wares or merchandise at retail, and not
otherwise specifically licensed by other provisions of this Code.
(Prior code § 6052K; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS §
6, adopted 5/28/96)
This business classification is in Tax Rate Group III and applies
to the selling or providing for pay any service which is not otherwise
specifically licensed by other provisions of this Code. The services
referred to herein include, but are not limited to, the following:
(3) Ambulance
(police permit required).
(7) Auctioneer
(police permit required).
(8) Auction
house (police permit required).
(9) Auto
maintenance and/or repair.
(10) Auto parks (parking) (police permit required).
(11) Auto service station (exclusive of retail sales of gasoline and diesel fuels, and any products, parts or accessories, which are subject to a business license fee for retail sales under Section
6.08.140 above).
(13) Auto wrecking (police permit required).
(14) Barbershop, beauty parlor.
(15) Bathhouse or bath treatment (police permit required).
(17) Booking or theatrical agent.
(21) Cleaning service (janitorial and cleanup for commercial, industrial
and residential properties, including window washing).
(22) Cleaning (laundry and dry cleaning).
(30) Dental technician or hygienist.
(34) Employment bureau and/or business for provision of labor services
(whether such employment or labor services are permanent or temporary).
(35) Figure studio (police permit required).
(36) Gardening and landscaping.
(37) Hairdressing salon, hairdresser.
(38) Health club, gym, figure salon (police permit required).
(39) Herb doctor, herbalist (police permit required).
(40) Hypnotist, hypnotherapist.
(42) Instructional schools and institutions.
(43) Letter writing or addressing.
(47) Massage establishment (police permit required).
(48) Massage technician (police permit required).
(51) Odor and/or pest control.
(52) Pawnbroker (police permit required).
(54) Private investigation, patrol and/or security services.
(55) Public relations, publicity, publicist.
(56) Public stenographic service or certified court reporter.
(57) Rental or leasing of vehicles, equipment, or other personal property.
(58) Repair service of any type.
(60) Storage or warehouse facilities.
(62) Telephone answering service.
(63) Ticket reservation service.
(Prior code § 6052L; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS §
7, adopted 5/28/96)
This business classification is in Tax Rate Group I and applies
to any person or entity engaged in the selling of any goods, ware,
or merchandise at wholesale prices. For purposes of this classification,
gross receipts includes all receipts derived from the wholesale selling
of any goods, wares, or merchandise.
(Prior code § 6052M; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group I and applies
to any regulated utility company subject to Article XIII, Section
19 of the Constitution of the State of California. For purposes of
this business classification, gross receipts shall include one hundred
percent of gross receipts derived from utility services provided within
the City of Santa Monica and gross receipts attributable to any other
business activity conducted within the City.
(Prior code § 6052N; added
by Ord. No. 1523CCS, adopted 5/8/90)
The business classifications set forth in Sections
6.08.190 through
6.08.210 shall pay a business license tax based upon the flat rate indicated.
(Prior code § 6053; added
by Ord. No. 1523CCS, adopted 5/8/90)
This business classification is in Tax Rate Group V and applies
to the running, driving, or operating of any vehicle used for the
delivery or pickup of goods, wares, merchandise, or material.
(Prior code § 6053A; added
by Ord. No. 1523CCS, adopted 5/8/90)
(a) This
business classification is in Tax Rate Group VI and applies to event
planners and promoters of any recreation, entertainment, cultural
and educational events and exhibitions which are conducted for limited
periods of time. Included in such classification without limitation
are sporting events/competitions, circuses, carnivals, trade shows,
and special sales of goods or services.
(b) For
purposes of this classification, event planner or promoter shall mean
any person or entity who for hire organizes, sponsors or administers
any activity classified in the category of special or community event.
(c) All
event planners or promoters in a special or community event shall
be subject to the business license requirements described in this
Chapter regardless of whether the special or community event is carried
on for profit or for charitable purposes.
(d) Notwithstanding
the above, all events held at the Civic Auditorium, including its
adjacent parking lot, shall not be subject to business license fees
but shall be required to obtain any other permits required by this
Code.
(Prior code § 6053B; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1598CCS §
1, adopted 9/10/91; Ord.
No. 1851CCS § 8, adopted 5/28/96; Ord. No. 2008CCS § 2,
adopted 5/8/01)
This business classification is in Tax Rate Group VII and applies
to the running, driving, or operating of any taxicab when driven by
the owner of the taxicab franchisee, or a member, employee or other
representative of the taxicab franchisee, or by the person or persons
hiring or renting the same at rates per mile, per trip, per hour,
per day, per week, or per month; and such vehicle is routed under
the direction of such passenger or passengers, or of such persons
hiring the same.
(Prior code § 6053C; added
by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2292CCS §
7, adopted 7/28/09)