No business tax shall be required of or from the following:
A. Any
person exempt from the business tax by virtue of the constitution
or any applicable statutes of the United States or the State of California;
B. Any
disabled veteran who has been honorably discharged from military service
of the United States and who is exempted from the payment of business
tax by statute of the state who distributes circulars, hawks, peddles,
or vends any goods, wares or merchandise owned by him or her, except
spirituous, malt, vinous or other intoxicating liquor;
C. Banks,
including national banking associations, federal credit unions, and
financial corporations, but only to the extent that a city may not
levy a business tax upon them under the provisions of Article XIII,
Section 27 of the State Constitution;
D. Insurance
companies or associations engaged in the sale and servicing of insurance
and their direct agents, including bail bond agents and life agents,
but not including brokers or bail bond brokers or life and disability
insurance analysts or insurance solicitors, but only to the extent
that a city may not levy a business tax upon them under the provisions
of Article XIII, Section 28 of the State Constitution;
E. Any
governmental agency or subdivision and the employees thereof, but
only to the extent they are engaged in the business of such governmental
agencies or subdivisions;
F. Motor
vehicle carriers, or household goods carriers operating under the
jurisdiction of the Public Utilities Commission of the State of California
or any public transportation system in the City whose definite permanent
points of origin and/or termination lie outside of the legal limits
of the City but only to the extent that a city may not levy a business
tax upon them pursuant to Section 4301 et seq. of the State Public
Utilities Code;
G. Any
state alcoholic beverage licensee engaged in the manufacture, sale,
purchase, possession, or transportation of alcoholic beverages within
the state, but only to the extent that a city may not levy a business
tax upon them under provisions of Article XX, Section 22 of the State
Constitution;
H. Any
day care or residential facility where not more than six people are
cared for on a full- or part-time basis, but only to the extent that
a city may not levy a business tax upon it pursuant to Section 1523
of Section 1566.2 of the State
Health and Safety Code;
I. Any
real estate auction conducted by a person whose business is solely
limited to the auctioning of real estate and who does not have a permanent
place of business in the City, to the extent such exemption is required
by
Business and Professions Code Section 16002.1.
(94-3)
No business tax shall be required of or from the following:
A. Any
nonprofit tax-exempt organization, provided this exemption shall not
apply to promoters hired as independent contractors by nonprofit tax-exempt
organizations;
B. Any
enterprise or entertainment conducted or operated for not more than
seven days during any calendar year when the receipts derived therefrom
are to be appropriated to the sole benefit of a nonprofit tax-exempt
organization, from which no profit is derived, either directly or
indirectly, by any private person, except such persons who have a
valid tax certificate covering their participation in such event;
C. Resident
farmers, poultrymen, and horticulturists selling exclusively their
own produce whether to stores or from house to house. This exemption
shall not apply to nurseries or to any commercial establishment, or
to any person who buys goods for resale as well as selling his or
her own goods;
D. Any
doctor, lawyer, architect, dentist or other professional person not
having a fixed place of business within the City; provided, however,
that he or she does not advertise for or solicit business within the
City;
E. Ministers
engaging in their duties as such;
F. Any
person who is acting solely as an employee or as the direct representative
of a business which pays the required business tax to the City and
is named as certificate holder in an unrevoked tax certificate;
G. Any
person who performs manual labor only, on an hourly or other time-basis,
and who furnishes only such tools and incidentals as may be required
in the performance of such manual labor. This provision shall not
apply to any person who also furnishes materials, whether the same
are billed separately or not;
H. Any
person performing only an act required by order of a court of competent
jurisdiction for performing such an act;
I. Students
of high school age or less and those persons over sixty-five engaged
in part-time occupations whose income does not exceed five thousand
dollars per year;
J. Teachers
of musical, artistic or educational subjects when the total income
from this activity does not exceed five thousand dollars for the calendar
year and one or more of the following conditions exist:
1. The
teaching is done at the residence of the teacher or at the residence
of the pupil as a part-time business only,
2. The
teacher does not employ assistants, does not display an advertising
sign at the residence, and does not make a general practice of selling
merchandise in connection with the teaching,
3. Upon
issuance of a home occupation permit, the teacher complies with all
provisions and conditions set forth in the home occupation ordinance,
and has applied for and been granted approval for such permit;
K. Yard and garage sales conducted on any property used or occupied for residential purposes and in compliance with Chapter
16.157 of the City's municipal code;
L. Concerts,
theatrical performances, dances and similar activities conducted on
any property owned or operated by a nonprofit tax-exempt organization
or by a government agency.
(94-3)
Any person claiming exemption from the payment of a business
tax under this chapter shall, nevertheless, apply to the collector
for a tax certificate in the same manner, and at the same time as
is required in this title of all other persons applying for a tax
certificate and shall be subject to the same procedures for enforcement
and to the same penalties as provided herein, if either of the following
apply:
A. The
person has a fixed place of business within the City and employs one
or more persons;
B. The
person has a fixed place of business within the City which is owned,
leased or licensed by it for its exclusive use, and for which no other
person has a valid business permit issued by the City.
(94-3)
An institution or organization claiming a business tax exemption
under this section has the burden of furnishing to the collector such
information as the collector may require to support the claim or eligibility
for exemption.
(94-3)