City of Claremont, CA APPORTIONMENT OF TAX

When, by reason of the provisions of the Constitution of the United States or the Constitution of the State of California, the business tax imposed by the provisions of this title cannot be enforced as to any single class or set of classes of business or business activity without there being an apportionment according to the amount of business done in the City, or in the State of California, as the case may be, the collector, having first obtained the approval of the City Attorney, shall make such rules and regulations for the apportionment of the tax as are necessary or otherwise desirable to overcome the constitutional objections.

(94-3)

In any case where a business tax is claimed by a certificate holder or applicant for tax certificate to place an undue burden upon interstate commerce, or intercity commerce, or be violative of the Constitutions of the United States and/or the State of California, he or she may apply to the collector for an adjustment of the tax so that it shall not be discriminatory or unreasonable as to such commerce. Such application may be made before, at or within six months after payment of the prescribed business tax. The applicant shall by affidavit and supporting testimony show his or her method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary in order to determine the extent, if any, of undue burden on such commerce. The collector shall then conduct an investigation and, having first obtained the approval of the City Attorney, shall fix as the business tax for the applicant an amount that is reasonable and nondiscriminatory. If the business tax has already been paid, the collector shall order a refund of the amount over and above the business tax so fixed. In fixing the business tax to be charged, the collector may base the business tax upon a percentage of the gross receipts or any other measure which will assure that the business tax levied shall be uniform with that levied on businesses of like nature so long as the amount levied does not exceed the business tax as prescribed by this title. Should the collector determine the gross receipts measure of business tax to be the proper basis, he or she may require the applicant to submit, either at the time of termination of the applicant's business in the City, or at the end of each twelve-month period, a verified affidavit of the gross receipts and payment of the amount of business tax therefor; provided, that no additional business tax during any one calendar year shall be required after the certificate holder has paid an amount equal to the annual business tax as prescribed in this title.

The collector shall, upon proper showing contained in the verified affidavit, cause the issuance of a tax certificate to such person showing partial exemption under this section with a business tax based upon the approved reduced gross receipts.

The collector after giving notice and a reasonable opportunity for hearing to a certificate holder pursuant to Section 4.04.080 of this title, shall revoke any tax certificate granted pursuant to the provisions of this section upon information that the certificate holder is not entitled to the adjustment as provided herein.

(94-3)