Note: For the statutory provisions authorizing cities to license for revenue and regulation purposes, See Gov. Code 37101; for the statutory provisions authorizing cities to license businesses in the exercise of police powers and for purposes of regulations, see Bus. and Prof. Code §§ 16000—16003.
The ordinance codified in this chapter and Chapters 6.08 through 6.16 is enacted solely to raise revenue for municipal purposes, and is not intended for regulation.
(Ord. 720 § 2.18, 1976)
Persons required to pay a license tax for transacting and carrying on any business under this chapter and chapters 6.08 through 6.16 shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the city, and shall remain subject to the regulatory provisions of other ordinances. Payment of the license tax and issuance of a receipt or business license does not constitute a permit to carry on the business in violation of other city ordinances and the collector may require proof of an occupancy permit prior to issuance of the business license.
(Ord. 720 § 2.3, 1976)
When any person shall by use of signs, circulars, cards, telephone book, internet web pages, newspapers, or other related means cause to advertise, hold out, or represent that he or she is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he or she is in business in the city, and such person fails to deny by a sworn statement given to the collector that he or she is not conducting a business in the city, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that he or she is conducting a business in the city.
(Ord. 720 § 2.10, 1976; Ord. 1391.1 § 2, 2008)
A. 
Nothing in this chapter or Chapters 6.08 through 6.16 shall be deemed or construed to apply to any person transacting 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 the payment of such taxes as are prescribed in Chapter 6.16.
B. 
Any person claiming an exemption pursuant to this section shall file a sworn statement with the collector stating the facts upon which exemption is claimed and, in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by Chapter 6.16.
C. 
The collector shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the city of the license tax required by Chapter 6.16.
D. 
An exemption so granted because of physical infirmity, unavoidable misfortune, or unavoidable poverty shall be limited to one license for a single business. An exemption so granted to a nonprofit corporation shall be based on the collector’s determination that said corporation, institution, association or organization is so classified pursuant to the revenue laws and regulations administered by the Internal Revenue Service and the state of California, and is being conducted only for nonprofit purposes and receipts and assets are not used in whole or part for the private gain of any person. Such an exemption shall not be granted to promoters employed by a nonprofit corporation, institution, association or organization.
E. 
The collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided in this section.
(Ord. 720 § 2.11, 1976)
Every peddler, solicitor, or other person claiming to be entitled to exemption from the payment of any license provided for in this chapter and Chapters 6.08 through 6.16 alleging that such license casts an unreasonable burden upon his right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States Congress respecting interstate commerce, shall file a verified statement with the collector, disclosing the interstate or other character of his business entitling such exemption. Such statement shall state the name and location of the company or firm for which the orders are to be solicited or secured; the name of the nearest local or state manager, if any, and his address; the kind of goods, wares or merchandise to be delivered; the place from which the same are to be shipped or forwarded; the method of solicitation or taking orders; the location of any warehouse, factory, or plant within the state of California; the method of delivery; the name and location of the residence of the applicant; and any other facts necessary to establish such claim of exemption. A copy of the order blank, contract form or other papers used by such person in taking orders shall be attached to the affidavit for the information of the collector.
(Ord. 720 § 2.12, 1976)
A. 
Neither the adoption of the ordinance codified in this chapter and Chapters 6.08 through 6.16 nor its superseding of any portion of any other ordinance of the city shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in this chapter and Chapters 6.08 through 6.16, nor be construed as a waiver of any license or any penal provisions applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed, or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.
B. 
Where a license for revenue purposes has been issued to any person by the city and the tax paid for the business for which the license has been issued under the provisions of any ordinance heretofore enacted and the term of such license has not expired, then the license tax prescribed for said business by Chapter 6.16 shall not be payable until the expiration of the term of such unexpired license.
(Ord. 720 § 2.9, 1976)
The collector shall administer this chapter and Chapters 6.08 through 6.16, collect and receive all license taxes required by this chapter and Chapters 6.08 through 6.16, and keep an accurate record thereof.
(Ord. 720 § 2.5, 1976)
The collector may make rules and regulations not inconsistent with the provisions of this chapter and Chapters 6.08 through 6.16 as may be necessary or desirable to aid in the administration and enforcement of the provisions of this chapter and Chapters 6.08 through 6.16 including reexamination and correction of returns and payments.
(Ord. 720 § 2.6, 1976)
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 Chapters 6.08 through 6.16, and the chief of police shall render such assistance in the enforcement as may from time to time be required by the collector or the city manager.
B. 
The collector, in the exercise of the duties imposed upon him under this chapter, and acting through his deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the city to ascertain whether the provisions of this chapter and Chapters 6.08 through 6.16 have been complied with.
C. 
The collector and each and all of his assistants and any police officer shall have the power and authority, upon obtaining an inspection warrant therefor, to enter, free of charge, and at any reasonable time, any place of business required to be licensed under this chapter and Chapters 6.08 through 6.16 and demand an exhibition of its license. Any person having such license theretofore issued, in his possession or under his control, who wilfully fails to exhibit the same on demand, shall be guilty of an infraction and subject to the penalties provided for in this chapter and Chapters 6.08 through 6.16.
(Ord. 720 § 2.7, 1976)
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.
(Ord. 720 § 2.8, 1976)
A. 
Upon application for or renewal of a business license, in the event that a business can legitimately or reasonably be assigned to more than one classification, the collector shall assign the business to an appropriate and reasonable category. A business that disagrees with the collector’s assignment may seek review thereof, as provided for in subsections (C) through (E) below.
B. 
The classification of a business may change as a result of a change of technology and/or the predominant nature of the business’s activities, and the collector may revise the classification at the next renewal time.
C. 
In any case where a licensee or an applicant for a license believes that his or her individual business is not assigned a reasonable classification under this chapter and Chapters 6.08 through 6.16 because of circumstances peculiar to it, as distinguished from other businesses of the same kind, he may apply to the collector for reclassification. Such application shall contain such information as the collector may deem necessary and required in order to determine whether the applicant’s individual business is properly classified.
D. 
The collector shall then conduct an investigation following which he shall assign the applicant’s individual business to the classification shown to be proper on the basis of such investigation. The proper classification is that classification which, in the opinion of the collector, most nearly fits the applicant’s individual business. The reclassification shall not be retroactive, but shall apply at the time of the next regularly ensuing calculation of the applicant’s tax. No business shall be classified more than once in one year.
E. 
The collector shall notify the applicant of the action taken on the application for reclassification. Such notice shall be given by serving it personally or by depositing it in the United States Post Office at South San Francisco, California, postage prepaid, addressed to the applicant at his or her last known address. Such applicant may, within fifteen days after the mailing or serving of such notice, make written request to the collector for a hearing on his application for reclassification. If such request is made within the time prescribed, the collector shall cause the matter to be set for hearing before the city manager within fifteen days. The collector shall give the applicant at least ten days’ notice of the time and place of the hearing in the manner prescribed above for serving notice of the action taken on the applications for reclassification. The city manager shall consider all evidence adduced and his or her findings thereon shall be final. Written notice of such findings shall be served upon the applicant in the manner prescribed above for service of notice of the action taken on the application for reclassification.
(Ord. 720 § 2.4, 1976; Ord. 1391.1 § 3, 2008)
Any person aggrieved by any decision of the collector with respect to the issuance or refusal to issue such license, or other administrative decision, may appeal to the city manager by filing a notice of appeal with the collector. The city manager shall thereupon fix a time and place for hearing such appeal. The collector shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States Post Office at South San Francisco, California, postage prepaid, addressed to such person at his last known address. The city manager shall have authority to determine all questions raised on such appeal and he may approve, modify or disapprove the decision of the collector. No such determination shall conflict with any substantive provision of this chapter or Chapter 6.08 through 6.16.
(Ord. 720 § 2.1, 1976)
Unless specified otherwise, the annual business license tax shall consist of a fixed rate of seventy-five dollars per business (“fixed rate”), plus fifteen dollars multiplied by the average number of employees as defined in Section 6.08.010 (“per employee rate”).
(Ord. 1391.1 § 4, 2008)
The annual business license tax per business shall not exceed one hundred thousand dollars (“annual cap”).
If a business has multiple locations within the city and is required to obtain a separate business license for each location, as provided for in Section 6.12.040, then the annual cap shall apply separately to the license tax levied on each license.
(Ord. 1391.1 § 5, 2008)
A. 
Commencing January 1, 2010 and each January 1st thereafter, each of the tax items listed in subsection (D) below shall be adjusted by the same percentage as the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (“CPI-W”) for the San Francisco Bay Area published by the U.S. Bureau of Labor Statistics during the previous calendar year. The collector shall calculate the change in each tax rate and component, rounding to the nearest quarter dollar. The percentage change shall be calculated by comparing the CPI-W for the most recent month of June with that of June of the prior year. If the time period for measurement of CPI-W changes, the collector shall determine a revised time period and apply that revised time frame consistently.
B. 
In the event that the CPI-W is discontinued or renamed by the Bureau of Labor Statistics or its successor agency, the collector shall select a reasonable successor index.
C. 
Unless otherwise specified, the CPI-W adjustment shall not apply to any portion of a business license tax that is calculated based on gross receipts.
D. 
The following tax items shall be adjusted annually as provided for in this section, subject to the exceptions provided for in this section:
1. 
The fixed rate, as defined in Section 6.04.123.
2. 
The per employee rate, as defined in Section 6.04.123.
3. 
Each rate established in Chapter 6.16.
4. 
The annual cap, as defined in Section 6.04.125.
(Ord. 1391.1 § 6, 2008)
None of the license taxes provided for by Chapter 6.16 shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitution of the United States and the State of California. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he may apply to the collector for an adjustment of the tax. Such application may be made before, at, or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show his method of business and such other information as the collector may deem necessary in order to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation and, after having first obtained the written approval of the city manager, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory or, if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector shall have the power to determine a license tax which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by Chapter 6.16.
(Ord. 720 § 2.2, 1976)
Whenever the amount of any license tax, penalty, or interest has been paid more than once or has been erroneously or illegally collected by the city under this chapter or Chapters 6.08 through 6.16, it may be refunded provided a verified claim in writing therefor, stating the specific ground upon which said claim is founded, is filed with the collector within three years from the date of payment. The claim shall be audited by the collector and shall be made on forms provided by the city. If the claim is approved by the collector, the excess amount collected may be refunded or may be credited on any amounts then due and payable from the person from whom it was collected, and the balance may be refunded to such person, his or her administrators or executors.
(Ord. 720 § 2.16, 1976)
In addition to all other power conferred upon him, the collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not exceeding thirty days, and in such case to waive any penalty that would otherwise have accrued, except that seven percent simple interest shall be added to any tax determined to be payable.
(Ord. 720 § 2.13, 1976)
The amount of any license tax and penalty imposed by the provisions of this chapter and Chapters 6.08 through 6.16 shall be deemed a debt to the city. An action may be commenced in the name of said city in any court of competent jurisdiction, for the amount of any delinquent license tax and penalties.
(Ord. 720 § 2.14, 1976)
All remedies prescribed under this chapter and Chapters 6.08 through 6.16 shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter or Chapters 6.08 through 6.16.
(Ord. 720 § 2.17, 1976)
A. 
Any person committing or omitting an act which violates any of the provisions of this chapter, or Chapters 6.08 through 6.16 of this code, is guilty of a misdemeanor, except sidewalk vendors operating via their person or via a human-powered device shall be regulated under Chapter 6.90 of this code and exempt from the requirements of this section.
B. 
Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this chapter, or Chapters 6.08 through 6.16 of this code occurs by commission or omission, or is continued or permitted by any such person.
(Ord. 720 § 2.15, 1976; Ord. 904 § 1, 1982; Ord. 1582 § 3, 2019)