For the purpose of this title, unless the context clearly requires
otherwise, the words, and phrases defined in this chapter shall have
the meanings set forth in this chapter.
(94-3)
"Ambulance" means any vehicle specifically equipped or previously
used to transport the sick, wounded, handicapped, injured or deceased.
(94-3)
"Annualization" means an estimation, extended for a twelve-month
period, based on reported gross receipts for a prior period of less
than twelve months.
(94-3)
"Applicant" means any person who applies for a tax certificate
or a certificate renewal under the provisions of this title. It shall
also include a person who has not applied for a tax certificate but
is deemed by the collector to be required by this title to have such
a certificate.
(94-3)
"Arts and crafts fair" means an event at which an arts and crafts
fair organizer arranges for temporary individual spaces for retailers,
including artists and handicrafters, to sell their products to the
public. It may be a one-time event, or scheduled at regular or irregular
intervals.
(94-3)
"Arts and crafts fair organizer" means a person who arranges
an arts and crafts fair. Such person, if not otherwise exempt, is
taxable as a renter of commercial space.
(94-3)
"Arts and crafts fair vendor" means a person who sells products
or services, including but not limited to arts and crafts, at an arts
and crafts fair.
(94-3)
"Branch or management office" means any office within the City
for which separate sales or receipt records are not maintained, and
the business which is essentially that of performing administrative
functions in connection with sales or service preformed or rendered
elsewhere.
(94-3)
"Builder-owner" means any person employing subcontractors, specialty
contractors, general engineering contractors, or workers under his
or her supervision and direction by the hour or day, for the purpose
of constructing improvements on real property owned by him or her
within the City; such person shall be charged herein the same as a
contractor unless his or her only building activity is constructing
on his or her property a single-family dwelling unit or addition thereto
which will be used in whole or in part for the purpose of his or her
own occupancy for a period of not less than one year. Proof of the
sale or offering for sale of any such structure by the builder-owner
within one year after completion of same is presumptive evidence that
such structure was undertaken for purpose of sale. Provided, however,
that any person holding a state contractor's license pursuant to Sections
7056, 7057 and 7058 et seq. of the California Business and Professions
Code, as the same now exists or as hereafter amended, shall be considered
a contractor.
(94-3)
"Building and loan" means any person who for a fee engages in
the loan of money upon personal security, evidences of debt, automobile,
or any personal property, or purchases automobile contracts, commercial
paper, evidence of debt, assignments of salary, salary warranty, salary
demands, time checks, or other evidences of salary due or to become
due, or automobile paper. The term building and loan as used in this
title includes savings and loans, but does not include pawnbrokers
or the holder of a bond brokers license, or any person conducting
a banking business under the laws of the state or any person subject
to the state corporate income tax as a financial corporation.
(94-3)
"Business" means all enterprises, professions, trades and occupations
and all and every kind of calling, full time or part time, whether
or not carried on for profit, engaged in within the City, including
lease or rental of residential or nonresidential real estate, whether
or not engaged in as a principal or as an independent contractor,
but shall not include the services rendered by an employee to an employer.
(94-3)
"Business tax" means the privilege tax paid as required by the
provisions of this title.
(94-3)
"Business tax certificate" or "tax certificate" means the certificate
required to be posted or displayed as evidence of a business' payment
of the tax required by the provisions of this title.
(94-3)
"Catering truck" means a vehicle as that term is defined in
the California Vehicle Code which is equipped or used for the sale
of food or beverages, or both, whether on public or private property.
(94-3)
"Certificate holder" means any person who holds a valid, current
tax certificate issued to that person under this title.
(94-3)
"Coin-operated machine or device" means any machine or device
that dispenses a product, or provides a service, or utility or amusement;
resulting from insertion or use of a coin, slug, token, plate, disc,
plug, key, check or other device, or money, or thing of value.
(94-3)
"Collector" means the financial services director, or if there
is none, the City Manager or his or her designate, charged with the
administration and enforcement of this title. Whenever in this title
reference is made to the collector, it shall include anyone designated
by the collector to perform all or a portion of his or her duties.
(94-3)
"Commission agent, broker or merchant" means any person engaged
in the business of buying and selling of goods, wares, or merchandise
for the owner or consignee thereof for a fee of commission, whether
or not the operation of such business customarily includes the actual
possession, custody or control of goods, wares or merchandise to the
extent that such person (1) does not engage in the business of manufacturing,
refining, fabricating, milling, treating or other processing of the
goods, wares or merchandise bought and sold, and does not cause said
goods, wares or merchandise to be manufactured, refined, fabricated,
milled, treated or otherwise processed; (2) does not obtain or retain
title to said goods, wares or merchandise except during one or more
of the following situations: while such goods, wares or merchandise
are actually in transit, or for short periods of time before transportation
commences or after it ceases; and (3) does not store or warehouse
such goods, wares or merchandise except during one or more of the
following: while such goods, wares or merchandise are actually in
transit, or for short periods of time before transportation commences
or after it ceases.
(94-3)
See "transact and carry on."
(94-3)
"Contractor" means any person who is licensed as a contractor
by the State of California and who undertakes to or offers to undertake
to or purports to have the capacity to undertake to or submits a bid
to, or does himself/herself or by others, construct, alter, repair,
add to, subtract from, improve, move, wreck or demolish any building,
highway, road, railroad, excavation or other structure, project, development
or improvement, or to do any part thereof, including the erection
of scaffolding or other structures or works in connection therewith.
The term contractor as used in this title includes general engineering
contractor, general building contractor, specialty contractor and
subcontractor except as otherwise specified herein.
(94-3)
"Cost of doing business" means that amount which is equivalent
to the volume of business performed, where the business of any local
office, facility, agent, broker or employee is that of performing
administrative or management-related services in connection with sales
or services performed or rendered elsewhere. Said amount shall be
computed by determining the total cost of maintaining said local office,
facility, agent, broker or employee. Said total cost of maintaining
said local office, facility, agent, broker or employee shall include,
but is not limited to the wages, salaries, commissions, bonuses, rent,
and/or depreciation, telephone, postage, utilities, janitorial and
other expenses allocated for maintenance of said office, facility,
agent, broker or employee.
(94-3)
"Day" means a calendar day.
(94-3)
"Disabled veteran" means any honorably discharged member of
the Armed Forces of the United States, who is physically unable to
obtain his or her livelihood by means of manual labor and who is a
qualified voter of the state. (BP Section 16001.)
(94-3)
"Employed" means engaged in the operation or conduct of a business,
or related activity, whether as a proprietor or otherwise.
(94-3)
In determining the number of employees for the purpose of fixing the tax due under Section 4.18.050 of this chapter, the employer shall take the number of employees earning wages during pay periods ending nearest the fifteenth of each month as shown by Form DE3 of the State Department of Employment or other form which may hereafter be adopted for reporting payments due under the Unemployment Insurance Act, for each month of the previous calendar year, adding the same, and dividing by twelve. If the employer has been in business less than one year, he or she may use the average number of employees as shown by such form for the last quarter; if the employer has not previously engaged in business, he or she may estimate the average number of employees who will be employed by him or her during the remainder of the calendar year.
(94-3)
"Engaged in business" means the transacting and carrying on,
managing or operating of a business whether done as owner, or by means
of an officer, agent, manager, employee or lessee.
(94-3)
"Fixed place of business" means the place within the City at
which the principal tools, equipment, or machinery used in a business
are customarily stored or located, or where services are customarily
performed, or at which are maintained the principal stock of materials
or supplies and the books and records used in a business.
(94-3)
"Flat or fixed rate tax" means a fixed amount assessed per business
location, or alternately, a fixed amount or fixed scale of amounts
whose sum is variable depending on the number or factors furnishing
the basis for determination of the business tax.
(94-3)
"Game machine" means a coin-operated game such as pinball and
video-electronic games.
(94-3)
"Garage sale" means the sale, or offering for sale, of personal
property in, at or upon any property used or occupied for residential
purposes. Garage sales shall include, but not be limited to, any yard
sale, home sale, patio sale, or any other sale similarly conducted
on any property used or occupied for residential purposes.
(94-3)
"General contractor" means and shall include any general building
contractor or general engineering contractor or any other person who
is licensed pursuant to Sections 7056 and/or 7057 of the California
Business and Professions Code as the same now exists or as hereafter
amended.
(94-3)
"Grocery store" means any business where the majority of gross
receipts is from the sale of food items packaged by a manufacturer
or distributor.
(94-3)
"Gross receipts" means and includes the total amount of the
sale price of all sales and the total amount charged or received for
the performance of any act or service 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 a part of or in connection with the sale
of materials, goods, wares or merchandise.
A.
The
following shall be included in "gross receipts": All receipts, cash,
credits and property of any kind or nature without any deduction therefrom
on account of the cost of the property sold, the cost of materials
used, labor or service costs, interest paid or payable, or losses
or other expenses whatsoever.
B.
The
following shall be excluded from "gross receipts":
1.
Cash
discounts allowed and taken on sales;
2.
Credit
allowed on property accepted as part of the purchase price and which
property may later be sold;
3.
Any
tax required by law to be included in or added to the purchase price
and collected from the consumer or purchaser;
4.
Such
part of the sale price of property returned by purchasers upon rescission
of the contract of sale as is refunded either in cash or by credit;
5.
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 has furnished the collector with the
names and addresses of the others and the amounts paid to them, other
than amounts received as commission of any character received for
the performance of any service as agent, or trustee; provided, that
any agent or trustee dealing in stocks or other similar written instruments
evidencing a right to participate in the assets of any business, or
dealing in bonds or other evidences of indebtedness, who also deals
in such property as a principal, shall include in the gross receipts
by which the tax is measured the amount of his or her trading profits
resulting therefrom. No deduction from receipts attributable to trading
as a principle shall be made unless such deduction is provided for
in this section;
6.
The
difference between the balance owed and paid on a defaulted purchase
or finance contract upon repossession by seller and the amount received
from resale of the repossessed article by the repossessing seller;
7.
Receipts
of refundable deposits, except that refundable deposits forfeited
and taken into income of the business shall not be excluded;
8.
As
to alcoholic beverages, that portion of the receipts of a manufacturer,
transporter, retailer or wholesale distributor generated or otherwise
collected from the manufacture, sale, possession or transportation
of intoxicating liquors within the state pursuant to Article XX, Section
22 of the State Constitution;
9.
As
to a retail gasoline dealer, a portion of his or her receipts from
the sale of motor vehicle fuels equal to the motor vehicle fuel license
tax imposed by and previously paid under the provisions of Part 2
of Division 2 of the Revenue and Taxation Code of the State of California;
10.
As to a retail gasoline dealer, the special motor fuel tax imposed
by Section 4041 of Title 26 of the United States Code if paid by the
dealer or collected by him or her from the purchaser;
11.
Cash value of sales, trades, transfers or other transactions as made
between separate departments, divisions or units of any single business
entity;
12.
Sales for convenience where sales of new goods, wares or merchandise
are made by a person engaged in selling such articles to another person
engaged in selling like or similar articles:
a.
Where the primary purpose of the particular transaction of sale is
to accommodate the purchaser rather than to make a sale in the ordinary
course of business and the price paid is essentially the book value
of the article,
b.
Where, in the particular kind of business involved, a similar manner
of dealing is frequent or customary in the circumstances under which
the particular sale is made, and
c.
Where goods, wares, or merchandise of like or similar kind and of
substantially equivalent value to that which was sold is received
in consideration;
13.
The amount of gross receipts which has been subject to a license
tax paid to any other city;
14.
Any license tax or fee imposed by and previously paid under and/or
all provisions of this chapter;
15.
Franchise fee paid to the City by the cable company.
C.
As to
contractors and other similar businesses, "gross receipts" shall not
include that portion of the receipts of a contractor which represents
payments to subcontractors, provided that such subcontractors are
licensed under this title, and provided the contractor furnishes the
collector with the names and addresses of the subcontractors and the
amounts paid to them.
D.
As to
real estate brokerage, travel agencies, insurance brokerages, bail
bond brokerages, and other similar businesses, "gross receipts" shall
include the total gross commissions or other receipts attributable
to the local office, agents, brokers and/or employees.
E.
As to
accountants, architects, attorneys, chiropractors, clinical social
workers, doctors, dentists, marriage, family and child counselors,
optometrists, physicians' assistants, podiatrists, psychologists,
registered nurses, veterinarians and other similar licensed persons
performing professional services, "gross receipts" shall include the
total gross fees or other receipts attributable to the local office
and/or employees, for services performed or otherwise rendered within
the City. In the case of professional corporations, each shareholder
or employee licensed to practice the profession in which the corporation
is authorized to engage shall be included in the computation of the
tax to be paid.
F.
As to
other persons having a fixed place of business within the City and
providing a service or plying a trade, or involved in similar businesses,
"gross receipts" shall include the total fees, commissions or other
receipts attributable to that local location and/or employees.
G.
As to
a business established outside the City but maintaining an office
within the City through an agent, broker or employee, "gross receipts"
shall include the total sales or receipts attributable to the local
office or facility, agent, broker or employee within the taxing jurisdiction.
H.
As to
a business established outside the City but transacting and carrying
on business within the City, or otherwise performing or rendering
services negotiated, or contracted for within the City, whether or
not by a principal or through an agent or employee, "gross receipts"
shall include the total fees, commissions, or other receipts attributable
to the business activity conducted within the taxing jurisdiction.
(94-3)
"Handicrafter" means any person who makes or creates any tangible
product or novelty and then offers that item for sale.
(94-3)
"Handy person" means any person engaged within the City, as
an independent contractor in any trade, art, calling, avocation or
occupation of the building trades and not licensed as a contractor
by the state.
(94-3)
"Hotel-motel-rooming house" means a building in which there
are more than six guest rooms where lodging is provided for compensation.
(94-3)
"Import-export" means any broker or wholesaler which imports
or exports merchandise, but conducts no retail operations in the City.
(94-3)
"Insurance agent" means any person, including bail bond agents
directly authorized by and on behalf of an insurer, to transact insurance
and to bind the insurer in the execution of insurance policies.
(94-3)
"Insurance broker" means any person, including bail bond brokers,
who, for compensation and on behalf of another person, transact insurance
other than life with, but not on behalf of, an insurer.
(94-3)
"Isolated transaction" means an activity, which if carried on
as a continuing business would be subject to license under Tax Categories
I, II or III, but which a person conducts in the City for no more
than three days at a time, not more than twice in a calendar year.
(94-3)
"Itinerant merchant" means any person who engages in a temporary
or transient business in the City, selling or offering for sale goods,
wares, merchandise, or things or articles of value, with the intention
of conducting such business in the City for no more than three days
at a time, not more than twice in a calendar year.
(94-3)
"Manufacture or process" mean all the activities of a commercial
or industrial nature wherein labor or skill is applied, by hand or
machinery, to materials so that as a result thereof a new, different
or useful article of tangible personal property or substance of trade
or commerce is produced and shall include the production or fabrication
of specially made or custom-made articles.
(94-3)
"Manufacturer" means any person, who, directly or by contracting
with others for the necessary labor or mechanical services, manufactures
for sale or for commercial or industrial use from his or her own materials
or ingredients any articles, substances or commodities.
(94-3)
"Nonprofit tax-exempt organization" means a person exempt from
taxation under Subchapter F of Chapter 1 of Subtitle A of the Internal
Revenue Code, (Section 501 and following), as it may be amended from
time to time, including educational, religious and charitable organizations,
civic leagues, employee associations, chambers of commerce, recreational
clubs, veterans organizations, homeowners associations, and political
organizations. All other persons shall be considered for profit organizations.
The term "nonprofit tax-exempt organization" shall not include any
person, any portion of the net earnings of which inure to the benefit
of any private shareholder or individual.
(94-3)
"Owner," as applied to any building or land, means and includes
any part owner, joint owner, tenant in common, tenant in partnership,
joint tenant, or tenant by the entirety, copartnerships of the whole
or of a part of such building or land, or a person having an interest
in community property as a member, or former member, of the community.
(94-3)
"Peddler" means any person who engages in solicitation and has the same meaning as set forth in Section 4.02.550 of this chapter.
(08-07)
"Permit" means a written authorization, or permission, to conduct
a business within the City, such as a business permit issued under
Title 5 of this Code or a home occupation permit. A tax certificate
issued pursuant to this title does not constitute a "permit."
(94-3)
"Person" means a domestic or foreign corporation, an association,
a syndicate, a joint-stock corporation, a partnership of any kind,
a club, business or common-law trust, a society of an individual conducting
any business in the City.
(94-3)
"Premises" means all lands, structures, places, and also the
personal property, equipment, and appurtenances connected or used
therewith in any business.
(94-3)
"Professional corporation" means any corporation organized under
the California General Corporation Law which is engaged in rendering
professional services in a single profession, or as hereafter amended,
and which in its practice or business designates itself as a professional
or other corporation as may be required by statute.
(94-3)
"Pushcart" means any wagon, cart, or similar wheeled container,
not a "vehicle" as defined in the Vehicle Code of the State of California,
from which food, beverage or product is offered for sale to the public.
(94-3)
"Real estate agent" means any person licensed as such by the
state and engaged wholly or in part in soliciting, transacting and
carrying on the purchase, sale or rental of real estate.
(94-3)
"Real estate broker" means any person licensed as such by the
state and engaged wholly or in part in soliciting, transacting and
carrying on the sale of real estate including soliciting or offering
to buy, sell, or lease real property for others; negotiating and collecting
loans for borrowers or lenders; dealing in real property sales contracts
and promissory notes; receiving advance fees for real estate listings;
and dealing in real estate syndicate securities.
(94-3)
"Real estate developer" means any person conducting, managing,
or transacting and carrying on the business of acquiring, subdividing,
improving, selling, renting and otherwise dealing in and disposing
of or developing real property, for commercial, industrial, residential,
or nonresidential purposes including, but not limited to, one who
constructs improvements upon real property for commercial, industrial,
residential, or nonresidential purposes with the object of selling,
renting or developing it for his or her own use.
(94-3)
"Rental of residential real estate" means every person leasing,
managing, or renting two or more dwelling units whether attached or
separate properties.
(94-3)
"Retail sale" means every sale of tangible personal property
(including articles produced, fabricated or imprinted) other than
sale to one who (1) purchases for the purpose of resale as tangible
personal property in the regular course of business, or (2) purchases
of the purpose of consuming the property purchased in producing for
sale a new article of tangible personal property or substance, of
which such property becomes an ingredient or component, or as a chemical
used in processing, when the primary purpose of such chemical is to
create a chemical reaction directly through contact with an ingredient
of a new article being produced for sale.
(94-3)
"Retailer" means any person engaging in the business of selling
goods, wares or other merchandise to consumers or users thereof.
(94-3)
"Retirement home, convalescent home, skilled nursing facility,
residential or community care facility" means any facility place or
building which is maintained and operated to provide medical or nonmedical
residential care or day care including, but not limited to, a rest
home, home for the aged, a retirement home, apartments for the elderly,
a facility for care of developmentally disabled, physically handicapped,
mentally disordered or incompetent persons.
(94-3)
"Revocation" means the act of revoking, or the condition of
being revoked; canceled; repealed.
(94-3)
"Sale" means the transfer, in any manner or by any means whatsoever,
of title to property for a consideration; the serving, supplying or
furnishing for a consideration of any property; and a transaction
whereby the possession of property is transferred and the seller retains
the title as security for the payment of the price shall likewise
be deemed to exclude any transaction which is or which, in effect,
results in a sale within the contemplation of law.
(94-3)
"Services" means the business of providing, maintaining or performing
labor for the benefit of another within the City; of supplying some
general demand for the benefit of another within the City which does
not produce a tangible commodity; or furnishing of services and all
activities in which any person, for any other person performs any
personal service.
(94-3)
"Solicitor" means any person, whether a resident of the City
or not, traveling by foot, vehicle or any other type of conveyance
who goes from house to house, business to business, from place to
place or in or along any highway, street or sidewalk within the City
either: (1) requesting, either directly or indirectly, money, credit,
funds, contributions, personal property or anything of value; (2)
taking or attempting to take orders for the sale of any goods, wares,
merchandise or services of any kind, or description for future delivery
or for services to be performed in the future, either in person or
by distributing flyers and leaflets; and (3) selling and making immediate
delivery any goods, wares, merchandise or services of any kind or
description, commonly referred to as "peddling."
(08-07)
"Stockbroker" and "bond broker" mean any person engaged in the
business of buying or selling federal, state, county or municipal
stocks or bonds, or stocks or bonds of partnerships or other incorporated
entities, or evidences of indebtedness of private persons, partnerships
or of incorporated entities, for a fee or commission.
(94-3 § 4, 1994)
See "contractor."
(94-3)
"Tax" means that amount collected for the privilege of engaging
in a business or occupation.
(94-3)
"Taxicab" means any motor vehicle used in the business of transportation
of passengers for hire, where transportation is not over a fixed and
definite route, but is under the control, as to the destination and/or
route, of the passenger or passengers being carried therein.
(94-3)
"Transact and carry on" means to repeat, or intend to repeat,
or to continue, and includes:
A.
The
maintaining, operating, managing or being in control of any office,
store, warehouse, factory, establishment, location or place:
1.
Having
one or more telephones listed for any business activity in any classified
telephone directory or in the classified section of any consolidated
telephone directory;
2.
Having
in use in connection with any business, one or more counters, desks,
chairs, tables, filing cabinets, typewriters, adding or calculating
machines, or other articles of office equipment;
3.
At,
from, or in which, any processing, supervising, administration, research,
sales promotion, solicitation, distributing, routing, delivery, dispatching,
billing, collection, accounting, recordkeeping, or activity is conducted
in connection with any business;
4.
In,
or at which, one or more persons may, for any valuable consideration
intended to result, or that results, in any livelihood, financial
profit or commercial gain to any person, receive any instruction,
advice, treatment or examination, or any service upon their person,
or any repair, refinishing, renewing, cleaning, or other improvement
to, or of, any personal property;
5.
In
which any letter, announcement, advertisement, circular, handbill,
newspaper, agreement, contract, instruction, legal instrument, financial
statement, statement of account, financial record, or any other instrument
or record, is written, printed, reproduced, published, prepared or
kept, in connection with any business;
6.
From
which any circular, handbill, newspaper, announcement, statement of
account, card or letter is sent, or distributed, in writing, or any
contract is made, in person or by telephone, in connection with any
business;
7.
Upon
any exterior side, wall, window, door, roof or other portion, or in
the proximity of which, there is maintained any sign, lettering, announcement
or advertisement indicating that such office or place is one in, at
or from, which any article exists, or any act is performed, in connection
with any business.
B.
The
repeated or continuous offering, or contracting, orally or in writing,
in connection with any business:
D.
The
performance, in connection with any business, of any single act, with
intent to repeat or continue the performance of such act.
(94-3)
"Utility" and "public utility" mean any person furnishing the
public with communication, water, light, heat or power, subject to
regulation by the Public Utilities Commission of the State of California.
(94-3)
"Vehicle" means every device in, upon or by which any person
or property is or may be transported or drawn upon a public street
or highway, except devices moved by human power or used exclusively
upon stationary rails or tracks.
(94-3)
"Vending machine operations" means any business conducted or
carried on by any person engaged in the business of operating coin-operated
machines or devices on the premises of another or in the business
of owning, renting, leasing, lending, or otherwise distributing or
supplying coin-operated machines or devices while retaining title
thereto.
(94-3)
"Vendor" means any person engaged in the conduct of business
as defined by this chapter.
(94-3)
"Wholesale sale" means any sale of tangible personal property which is not a "sale at retail." Sales otherwise classified as "retail sales" under Section 4.02.500, may, nevertheless be classified as "wholesale sales" under this section, if the vendor can establish to the satisfaction of the collector that the sale was made to a government agency, public utility, manufacturer, processor or contractor who consumed the articles in the course of its own operations and did not offer the articles for resale to the general public except as an integral part of manufacturing, construction or service.
(94-3)
"Wholesaler" means any person engaging in the business of selling
goods, wares, merchandise or other products for the purpose of resale
and not to consumers or users thereof.
(94-3)
See "garage sale."
(94-3)
