This chapter is enacted solely to raise revenue for municipal purposes, and is not intended for regulation. No person required to pay a license tax for transacting or carrying on any business under this chapter shall be relieved from the obligation to pay any other license tax or permit fee or from any regulation under any other provision of this Code or other ordinance of the City.
(Prior code § 18-2)
For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
"Business"
means any business, trade, occupation, association, practice or profession.
"Gross payroll"
means the gross payroll of the preceding fiscal year, and the total gross payroll before deductions of any kind are made.
"Gross receipts"
means the gross receipts of the preceding fiscal year; and the total amount of the sale price of all sales; the total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether such service, act or employment is done as a part of or in connection with the sale of goods, or not, for which a charge is made or credit allowed, including all receipts, cash, credits and property of any kind or nature; any amount for which credit is allowed by the seller to the purchaser without any deduction on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, losses or other expenses whatsoever; provided, that cash discounts allowed or taken on sales shall not be included, and that this section shall not be construed to impose any tax upon any business or transaction which the City is not authorized to license or tax under the laws of the state or of the United States. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser, and such part of the sale price of any property previously sold returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowance given or taken as part payment on any property so accepted for resale, shall be deducted for the purpose of determining the gross receipts.
"License periods"
means the annual license period commences on the first day of July of each year and ends on June 30 of the subsequent year. The daily license period commences at the hours of eight a.m. on any day and ends at eight a.m. on the next day. The quarterly license periods commence on any day of issuance of such license and ends three months after such day.
"Unpaid license fee"
means all license fees owing for licenses therefor issued, and any sums or amount which the City would have received had a license been issued as required by this chapter.
(Prior code § 18-1; Ord. 2006-898, § 1, 2006)
A. 
Nothing in this chapter shall 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 from the payment to municipal corporations of such taxes as are prescribed in this chapter.
B. 
The provisions of this chapter shall not require the payment of a license fee to conduct, manage or carry on any business, occupation or activity from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any person; nor shall any license fee be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the City whenever the receipts of any such entertainment, concern, exhibition or lecture on scientific, historical, literary, religious or moral subjects are to be appropriated to any church or school or to any religious or benevolent purpose; nor shall any license fee be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association, whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objects for which such organization or association was formed, and from which profit is not derived, either directly or indirectly, by any person; provided, that nothing in this section shall exempt any such organization or association from complying with the provisions of this chapter or any other provisions of this Code or other ordinance of the City requiring a permit from the City Council or any commission or officer to conduct, manage or carry on any profession, trade, calling or occupation.
C. 
Farmers and horticulturists who sell exclusively products actually produced or grown by them shall be exempt from the provisions of this chapter.
D. 
The provisions of this chapter shall not require the payment of the license fee to conduct, manage or carry on the intercity transportation business of any express corporation, freight forwarder, motor transportation broker or person or corporation, owning or operating motor vehicles in the transportation of property for hire upon the public highways, under the jurisdiction of the Public Utilities Commission of the state. As used in this section "intercity transportation business" shall include every service performed in connection with transportation of property by such transportation companies where both the origin point and the destination point are not within the exterior boundaries of the city.
E. 
Any person claiming an exemption pursuant to this section shall file a verified statement with the Director of Finance, stating the facts upon which exemption is claimed. The Director of Finance, upon a proper showing contained in the verified statement, shall issue a license to such person claiming exemption under this section without payment to the City of the license tax required by this chapter. The Director of Finance 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.
(Prior code § 18-3)
There is imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amounts prescribed, and no person shall commence, transact or carry on any business, trade, profession, calling or occupation in the City without first having procured a license from the City to do so or without complying with the applicable provisions of this chapter.
(Prior code § 18-4)
A. 
A separate license under this chapter shall be obtained for each branch establishment or location of the business engaged in and each license shall authorize the licensee to engage only in the business licensed thereby at the location or in the manner designated in such license; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments.
B. 
Every person who operates any business, whether upon a cost rental or commission basis as a concession or upon rented floor space in or upon the premises of any person licensed under any provision of this chapter, shall obtain a separate and independent license pursuant to the appropriate provisions of this chapter, and shall be subject to all of the provisions of this chapter.
(Prior code § 18-5)
Except as otherwise expressly provided in this chapter, any person conducting, managing or carrying on two or more businesses licensed by this chapter at the same location shall apply for and obtain a license for only one of such businesses; provided, that if the amount of such license differs for such businesses, then one license shall be issued on the basis of the combined total gross receipts of the several businesses.
(Prior code § 18-6)
In the event that any business conducted, managed or carried on in the City is organized as a partnership or joint venture, the scheduled license tax under this chapter shall be paid only by the partnership or joint venture and not by each individual partner or joint venturer.
(Prior code § 18-7)
Every person required to have a license under the provisions of this chapter shall make application for the same to the Director of Finance upon forms prescribed by the City or via the online application system available through the City's website.
(Prior code § 18-8; Ord. 2017-1048, § 1, 2017)
A. 
Any applicant for the renewal of a license under this chapter shall submit to the Director of Finance for his or her guidance in ascertaining the amount of the license tax to be paid by the applicant, a written statement, upon a form to be provided by the Director of Finance, or an online statement via the online renewal system available through the City's website under penalty of perjury setting forth such information concerning the applicant's business during the preceding fiscal year as may be required by the Director of Finance to enable him to ascertain the amount of the license tax to be paid by such applicant pursuant to the provisions of this chapter.
B. 
No such statements shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable. Such statement and each of the several items therein contained shall be subject to audit and verification by the Director of Finance, his or her deputies or authorized employees of the City, who are hereby authorized to examine, audit and inspect such books and records of any licensee or applicant for a license as may be necessary in their judgment to verify or ascertain the amount of license tax due.
C. 
All licensees, applicants for licenses and persons engaged in business in the City are hereby required to permit an examination of such books and records for the purposes set out in this section.
D. 
The information furnished or secured pursuant to this section shall be confidential. Any unauthorized disclosure or use of such information by any officer or employee of the city shall constitute a violation of this chapter, and such officer or employee shall be subject to the penalty provisions of this chapter, in addition to any other penalties provided by law.
E. 
If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the Director of Finance, he or she fails to file a corrected statement, the Director of Finance may determine the amount of license tax due from such person by means of such information as he or she may be able to obtain.
F. 
If such a determination is made, the Director of Finance shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at Yorba Linda, California, postage prepaid, addressed to the person so assessed at this last known address. Such person may, within 15 days after the mailing or serving of such notice, make application in writing to the Director of Finance for a hearing on the amount of the license tax. If such application is made, the Director of Finance shall cause the matter to be set for hearing within 30 days before the City Council. The Director of Finance shall give at least ten days' notice to such person of the time and place of hearing in the manner prescribed above for serving notices of assessment. The City Council shall consider all evidence produced, and shall make findings thereon, which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed above for serving notices of assessment.
(Prior code § 18-9; Ord. 2017-1048, § 1, 2017)
The Director of Finance shall issue licenses to qualified applicants under this chapter. Such licenses shall contain the following:
A. 
The name of the person to whom the license is issued;
B. 
The business licensed;
C. 
The place where such business is to be transacted and carried on;
D. 
The date of the expiration of such license;
E. 
Such other information as may be necessary for the enforcement of the provisions of this chapter.
(Prior code § 18-14)
A. 
All license taxes under this chapter shall be paid for in lawful money of the United States of America. All daily license taxes shall be paid in advance of each day. All quarterly license taxes shall be paid at the time of application.
B. 
All annual licenses on a gross receipts basis become due on July 1, but are payable any time prior to the following September 1, without penalty.
C. 
All annual licenses taxes shall be due and payable in advance on the first day of July of each fiscal year. Any person doing business less than a full year shall pay a license tax in advance which shall be prorated from the date of the beginning of the fiscal quarter in which such business is commenced in accordance with the provisions of this chapter.
D. 
All persons who are required to pay a license tax based on a gross receipt or gross payroll basis who do business less than a full year shall pay in advance the minimum license tax, which shall be prorated from the date of the beginning of the fiscal quarter in which such business is commenced in accordance with the provisions of this chapter. At the end of the fiscal year during which the operation of such business is commenced, the license tax for such yearly period shall be ascertained and due and payable based on a prorate from the date of the beginning of the fiscal quarter in which such business is commenced in accordance with the provisions of this chapter.
(Prior code § 18-10)
A. 
No license issued pursuant to this chapter shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee, upon application therefor and upon paying a fee of $2.00, may have the license amended to authorize the transacting and carrying on of such business under such license at some other location to which the business is moved.
B. 
No person shall lend his or her license to another.
(Prior code § 18-15)
In the event that any licensee under this chapter loses his or her license or the same is destroyed, he or she may procure a duplicate license from the Director of Finance by payment to him or her of $2.00.
(Prior code § 18-16)
Any licensee engaged in a business at a fixed place of business shall keep the license issued to him under this chapter posted in a conspicuous place upon the premises where such business is conducted. Any licensee not operating from a fixed place of business shall keep the license issued to him upon his or her person at all times while engaged in the business within the City.
(Prior code § 18-17)
No license issued under the provisions of this chapter shall be construed as authorizing the conduct of or continuance of any illegal or unlawful business. Notwithstanding any provision in this code to the contrary, any business that cannot be conducted or carried out without being in violation of state or Federal law shall be prohibited in all planning areas, districts, or zones within the City.
(Prior code § 18-18; Ord. 2006-898, § 1, 2006)
All license taxes under this section shall be due and payable to the Director of Finance or his or her representative. A penalty of ten percent shall be added to each license tax remaining unpaid 30 days after it becomes due. On the first day of each month thereafter that such tax remains unpaid, an additional penalty of ten percent of such unpaid tax shall be added; provided, that the maximum amount of such penalty shall not exceed an amount equal to the amount of such tax, and that the penalty of ten percent shall be added on September 1 for those unpaid license taxes based on a gross receipts basis and an additional ten percent on the first day of each month thereafter.
(Prior code § 18-11; Ord. 2017-1048, § 1, 2017)
The amount of any license tax imposed by this chapter, together with any penalties accruing thereon, shall be deemed a debt due to the City from the person required to pay the same, and an immediate cause of action shall accrue to the City for the collection thereof in any court of competent jurisdiction.
(Prior code § 18-12)
A. 
It shall be the duty of the Director of Finance to enforce the provisions of this chapter, and the Police Chief shall render such assistance in the enforcement hereof as may from time to time be required by the Director of Finance or the City Council.
B. 
The Director of Finance, in the exercise of the duties imposed upon him under this chapter and acting through his or her deputies or duly authorized assistants, may examine or cause to be examined all places of business in the City to ascertain whether the provisions of this chapter have been complied with.
C. 
The Director of Finance and each of his or her assistants and any police officer shall have the power and authority to enter, free of charge, at any reasonable time, any place of business required to be licensed under this chapter and demand an exhibition of its license certificate. It is unlawful for any person having such license certificate theretofore issued in his or her possession or under his or her control to wilfully fail to exhibit the same on demand. It shall be the duty of the Director of Finance and each of his or her assistants to cause a complaint to be filed against any persons found to be violating any of the provisions of this chapter.
D. 
In addition to all other powers conferred upon him, the Director of Finance shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 30 days, and in such case to waive any penalty that would otherwise have accrued; and shall have the further power, with the consent of the City Council, to compromise any claim as to amount of license tax due.
(Prior code § 18-19)
Any person aggrieved by any decision of an administrative officer or agency with respect to the issuance or refusal to issue a license under this chapter may appeal to the City Council by filing a notice of appeal with the City Clerk. The City Council shall thereupon fix a time and place for hearing such appeal. The City Clerk 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 Yorba Linda, California, postage prepaid, addressed to such person at his or her last known address.
(Prior code § 18-20)
The conviction and imprisonment of any person for engaging in any business without first obtaining a license to conduct such business shall not relieve such person from paying the license tax to conduct such business, nor shall the payment of any license prevent a criminal prosecution for the violation of any of the provisions of this chapter. All remedies prescribed under this chapter 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.
(Prior code § 18-21)