Chapters 5.04 and 5.08 are for the purpose of licensing, for revenue purposes only, the transaction and carrying on of certain businesses, trades, professions, callings and occupations in the city for the purpose of raising municipal revenue and provide a penalty for the violation thereof.
(Prior code § 16-1; Ord. 4602 § 6, 1999)
"Business"
includes professions, trades, and occupations, and all and every kind of calling whether or not carried on for profit.
"City"
means the city of El Cajon, a municipal corporation of the state of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.
Collector.
"License tax collector" shall mean the city tax collector, city clerk, or other city officer charged with the administration of Chapters 5.04 and 5.08.
"Gross receipts"
shall include the total of amounts actually received or receivable from sales and the total amounts actually received or receivable 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. Included in "gross receipts" shall be 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. Excluded from "gross receipts" shall be the following:
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;
6. 
Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded.
Intercity Commerce.
Any entity may be deemed to be in intercity commerce for purposes of this chapter whose gross receipts attributable to business within El Cajon do not exceed seventy-five percent of its total gross receipts.
"Peddler" or "solicitor"
includes any person not having a regular established place of business within the city, and who goes from house to house, place to place, or person to person within the city, soliciting, offering for sale, or selling any goods, wares, services, advertising or merchandise of any nature. "Itinerant merchant" includes any person who engages in a temporary business of selling or delivering goods, wares, services, advertising or merchandise, and who in furtherance of such purpose, hires, leases or occupies any building, structure, motor vehicle, tent or public room in a motel or any street, alley or real estate within the city for the exhibition and sale of such items, services or advertising, including the securing of orders for future delivery only.
"Person"
includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business, or common law trusts, societies, and individuals transacting and carrying on any business in the city, other than as an employee.
"Rental Unit"
includes a building or portion of a building designed for residential purposes, including a one-family, two-family and multiple-family dwelling, which is rented, leased or let in any manner for consideration. "Rental Unit" shall not include hotels and motels and other similar transient lodging establishments, mobile homes, or board and care facilities.
"Sale"
includes 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 a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.
"Sworn statement"
means an affidavit sworn to before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.
(Prior code § 16-2; Ord. 4471, 05/09/95)
Chapters 5.04 and 5.08 are enacted solely to raise revenue for municipal purposes and are not intended for regulation. Fees and taxes collected are not refundable.
(Prior code § 16-3; Ord. 3889 § 1, 1985)
Persons required to pay a license tax for transacting and carrying on any business under Chapters 5.04 and 5.08 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.
(Prior code § 16-4)
There are imposed upon the businesses, trades, professions, callings and occupations specified in this chapter license taxes in the amounts hereinafter prescribed. It is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from said city to do so and paying the tax hereinafter prescribed, or without complying with any and all applicable provisions of Chapters 5.04 and 5.08.
This section shall not be construed to require any person to obtain a license prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state of California. Persons not so required to obtain a license prior to doing business within the city, nevertheless, shall be liable for payment of the tax imposed by Chapters 5.04 and 5.08.
(Prior code § 16-5)
A separate license must be obtained for each branch establishment or location of the business transacted and carried on, and for each separate type of business at the same location; and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in the manner designated in such license.
(Prior code § 16-6)
When any person shall by use of signs, circulars, cards, telephone book, or newspapers, advertise, hold out, or represent that he is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he is in business in the city, and such person fails to deny by a sworn statement given to the license tax collector that he is conducting a business in the city, after being requested to do so by the license tax collector, then these facts shall be considered prima facie evidence that he is conducting a business in the city.
(Prior code § 16-7)
None of the license taxes provided for by Chapters 5.04 and 5.08 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 constitutions 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 license tax collector or the city council 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 decision of the city council shall be final.
(Prior code § 16-8)
There shall be specifically exempt from the payment of any license taxes all organizations which are organized and operated for nonprofit purposes within the provisions of the following subsections of Revenue and Taxation Code Section 23701:
a. 
Labor, agricultural, or horticultural organizations
b. 
Fraternal beneficiary societies, orders, or organizations
d. 
Religious, charitable, scientific, testing for public safety, literary, educational, amateur sports or humanitarian corporations
e. 
Business leagues, chambers of commerce, real estate boards, and boards of trade
f. 
Civic leagues; social welfare and employees' organizations
g. 
Nonprofit pleasure and recreation clubs
l. 
Domestic fraternal societies, orders or associations
r. 
Political organizations
t. 
Association property, common areas, architectural control, restrictions and community welfare; management, maintenance, care and enforcement
and to whom the Franchise Tax Board has issued a determination exempting the organization from tax. The exemption from payment of a license tax as required by this chapter shall not waive compliance with any and all other ordinances and regulations applicable to such exempt person. Charitable organizations utilizing paid solicitors are not exempt from license tax under this section. However, non-profit political organizations utilizing paid solicitors are exempt.
There is further exempt from payment of any license tax any entertainment, concert, exhibition or lecture, whenever the receipts of such entertainment, concert, exhibition or lecture are to be appropriated to any church or school or to any religious or benevolent purpose, and no salaries, wages or fees are paid in connection therewith.
No license tax shall be required in connection with any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association when the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purposes and objects for which such association or organization was formed; provided, that the provisions of this code and all other ordinances and regulations of the city shall be complied with.
Any person claiming an exemption pursuant to this section shall file a sworn statement with the license tax 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 the ordinances codified in this chapter and Chapters 5.08 and 5.90.
(Prior code § 16-10; Ord. 3585 § 2, 1982; Ord. 3889 § 2, 1985; Ord. 3907 § 1, 1985; Ord. 4010 § 1, 1987)
In addition to the exemptions provided in Section 5.04.100 hereof, the following activities are exempted from the license tax provisions of Chapters 5.04 and 5.08:
A. 
A business engaged in intercity transportation and paying license fee under Section 4303 of the Public Utilities Code;
B. 
A facility licensed under the California Community Care Facilities Act (Health and Safety Code Section 1500, et seq.) to provide care for six or fewer persons, exclusive of members of the household.
(Prior code § 16-11; Ord. 3072 § 1, 1977; Ord. 3684 § 1, 1983; Ord. 4471, 05/09/95)
A. 
Every person required to have a license under the provisions of Chapters 5.04 and 5.08 shall make application as hereinafter prescribed for the same to the license tax collector of the city, and upon the payment of the prescribed license tax, the license tax collector shall issue to such person a business license as hereinafter provided.
B. 
The issuance of a business license as provided in Chapters 5.04 and 5.08 shall only be denied, suspended or revoked upon one or more of the following grounds:
1. 
Application has not been made as hereinafter prescribed; or
2. 
The prescribed tax has not been paid; or
3. 
The requirements of Section 5.04.290 have not been met; or
4. 
The activity for which the license is sought is contrary to local, state or federal law.
(Prior code § 16-12)
The business license issued by the license tax collector shall contain the following information:
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 Chapters 5.04 and 5.08; and
F. 
Any license coupon issued under Chapter 5.98 shall be deemed to have complied with this section when the application of the sponsor has been approved by the director of finance.
(Prior code § 16-13; Ord. 3904 § 2, 1985)
Upon a person making application for the first license to be issued hereunder or for a newly established business, such person shall furnish to the license tax collector a sworn statement, upon a form provided by the collector, setting forth the following information:
A. 
The exact nature or kind of business for which a license is requested;
B. 
The place where such business is to be carried on, and if the same is not to be carried on at any permanent place of business, the places of residence of the owners of same;
C. 
In the event that application is made for the issuance of a license to a person doing business under a fictitious name, the application shall set forth the names and places of residence of those owning said business;
D. 
In the event that the application is made for the issuance of a license to a corporation or a partnership, the application shall set forth the names and places of residence of the officers or partners thereof;
E. 
In all cases where the amount of license tax to be paid is measured by gross receipts, the application shall set forth such information as may be therein required and as may be necessary to determine the amount of the license tax to be paid by the applicant;
F. 
Any further information which the license tax collector may require to enable him to issue the type of license applied for.
If the amount of the license tax to be paid by the applicant is measured by gross receipts, he shall estimate the gross receipts for the period to be covered by the license to be issued. Such estimate, if accepted by the license tax collector as reasonable, shall be used in determining the amount of the license tax to be paid by the applicant; provided, however, the amount of the license tax so determined shall be tentative only, and such person shall, within thirty days after the expiration of the period for which such license was issued, furnish the license tax collector with a sworn statement, upon a form furnished by the license tax collector, showing the gross receipts during the period of such license, and the license tax for such period shall be finally ascertained and paid in the manner provided by Chapters 5.04 and 5.08 for the ascertaining and paying of renewal license taxes for other businesses, after deducting from the payment found to be due the amount paid at the time such first license was issued.
The license tax collector shall not issue to any such person another license for the same or any other business, until such person shall have furnished to him the sworn statement and paid the license tax as herein required.
(Prior code § 16-14)
In all cases, the applicant for the renewal of a license shall submit to the license tax collector for his guidance in ascertaining the amount of the license tax to be paid by the applicant, a sworn statement, upon a form to be provided by the license tax collector, setting forth such information concerning the applicant's business during the preceding year as may be required by the license tax collector to enable him to ascertain the amount of the license tax to be paid by such applicant pursuant to the provisions of Chapters 5.04 and 5.08.
(Prior code § 16-15)
No 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 hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the license tax collector, his 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 license, as may be necessary in their judgment to verify or ascertain the amount of license fee due.
All persons subject to the provisions of this chapter shall keep complete records of business transactions, including sales, receipts, purchases, and other expenditures, and shall retain all such records for examination by the license tax collector. Such records shall be maintained for a period of at least three years. No person required to keep records under this section shall refuse to allow authorized representatives of the license tax collector to examine said records at reasonable times and places.
(Prior code § 16-16)
It is unlawful for the license tax collector or any person having an administrative duty under the provisions of this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any person required to obtain a license or pay a license tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person; provided that nothing in this section shall be construed to prevent:
A. 
The disclosure to, or the examination of records and equipment by, another city official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of Chapters 5.04 and 5.08, or collecting taxes imposed hereunder;
B. 
The disclosure of information pursuant to law;
C. 
The disclosure of the names and addresses of persons to whom licenses have been issued, and the general type of nature of their business;
D. 
The disclosure of general statistics regarding taxes collected or business done in the city;
E. 
The disclosure of charitable or religious solicitation license application information to any concerned citizen, including the news media.
(Prior code § 16-17; Ord. 3585 § 3, 1982)
If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the license tax collector he fails to file a corrected statement, or if any person subject to the tax imposed by Chapters 5.04 and 5.08 fails to apply for a license, the license tax collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain.
If the license tax collector is not satisfied with the information supplied in statements or applications filed, he may determine the amount of any license tax due by means of any information he may be able to obtain.
If such a determination is made, the license tax collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at El Cajon, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may appeal said determination of the license tax collector pursuant to the provisions of Chapter 5.12.
(Prior code § 16-18)
No license issued pursuant to Chapters 5.04 and 5.08 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 may, upon application therefor and paying a fee of one dollar, have the license amended to authorize the transacting and carrying on of such business under said license at some other location to which the business is or is to be moved; provided further, that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer, shall not be prohibited by this section.
A sponsor or organization licensed under Section 5.98.040 is exempt from the provisions of this section relating to any additional fee for transfer of said license coupons.
(Prior code § 16-19; Ord. 3904 § 3, 1985)
A duplicate license may be issued by the license tax collector to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing statement of such fact, and at the time of filing such statement, paying to the license tax collector a duplicate license fee of one dollar.
(Prior code § 16-20)
A. 
Any licensee transacting and carrying on business at a fixed place of business in the city shall keep the license posted in a conspicuous place upon the premises where such business is carried on;
B. 
Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license upon his person at all times while transacting and carrying on the business for which it is issued.
(Prior code § 16-21)
A. 
Whenever the tax imposed under the provisions of Chapters 5.04 and 5.08 is measured by the number of vehicles, devices, machines, or other pieces of equipment used, or whenever the license tax is measured by the gross receipts from the operation of such items, the license tax collector shall issue only one license; provided that he shall issue for each tax period for which the license tax has been paid one identification sticker, tag, plate, or symbol for each item included in the measure of the tax or used in a business where the tax is measured by the gross receipts from such items.
B. 
Whenever identifying stickers, tags, plates, or other symbols have been issued for each vehicle, device, machine, or other piece of equipment included in the measure of a license tax, the person to whom such stickers, tags, plates, or symbols have been issued shall keep firmly affixed upon each vehicle, device, machine, or piece of equipment the identifying sticker, tag, plate, or symbol which has been issued therefor at such locations as are designated by the license tax collector. Such sticker, tag, plate, or symbol shall not be removed from any vehicle, device, machine, or piece of equipment kept in use during the period for which the sticker, tag, plate, or symbol is used.
C. 
No person shall fail to affix as required herein any identifying sticker, tag, plate, or symbol to the vehicle, device, machine, or piece of equipment for which it has been issued. No person shall sell or transfer such identifying sticker, tag, plate, or symbol to another person, or permit its use by another person.
(Prior code § 16-22)
It is unlawful for any person to operate or carry on any business, trade, calling, profession, occupation, place of occupation or any other activity whatsoever under any license or permit which has been suspended or revoked pursuant to Chapter 5.12.
No license or evidence thereof shall be exhibited or kept in a conspicuous place by any licensee when such license is delinquent or has been revoked.
(Prior code § 16-24)
Unless otherwise specifically provided, all annual license taxes under the provisions of Chapters 5.04 and 5.08 shall be due and payable in advance on the first day of January of each year.
Upon application by any person for a license during the months of October, November or December, such applicant can elect to be issued a license for the current year and for the next successive calendar year for a fee equal to one and one-half times the applicable annual business license fee.
Any business located within an area on the effective date of the annexation of such area to the city required by Chapters 5.04 and 5.08 to have an annual license shall be required to pay a prorated amount of such annual license fee on the basis of quarters for the balance of the year.
Except as otherwise herein provided, license taxes, other than annual, required hereunder shall be due and payable as follows:
A. 
Semiannual license taxes, on the first day of January and the first day of July of each year;
B. 
Quarterly license taxes, on the first day of January, April, July and October of each year;
C. 
Monthly license taxes, on the first day of each and every month;
D. 
Weekly flat-rate license taxes, on Monday of each week in advance;
E. 
Daily flat-rate license taxes, each day in advance;
F. 
Other flat-rate license taxes are payable in advance on the first day of business, and thereafter on the first day of any applicable period.
(Prior code § 16-25)
All persons who are required to be licensed under Chapters 5.04 and 5.08 shall see that the proper tax as required is paid to the license tax collector.
All license taxes shall be paid in lawful money of the United States at the department of finance.
The license tax collector shall deliver daily to the director of finance all tax moneys collected pursuant to the provisions of Chapters 5.04 and 5.08.
(Prior code § 16-26; Ord. 4528 § 22, 1997)
The amount of any license tax and penalty imposed by the provisions of Chapters 5.04 and 5.08 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, with costs of suit, including reasonable attorneys' fees to be fixed by the court.
(Prior code § 16-27)
In no case shall any mistake of the director of finance or the city treasurer, or any deputy thereof, in stating or collecting the amount of any tax prescribed in this chapter, prevent or prejudice any collection for the city of the amount actually due, together with costs of collection, including reasonable attorneys' fees as fixed by court, nor shall any such mistake prevent or prejudice the prosecution of any person for the violation of any provision of Chapters 5.04 and 5.08.
(Prior code § 16-28; Ord. 4528 § 23, 1997)
No license or sticker, tag, plate of symbol shall be issued, nor one which has been suspended or revoked shall be reinstated or reissued, to any person who at the time of applying therefor is indebted to the city for any delinquent license taxes, unless such person, with the consent of the license tax collector, enters into a written agreement with the city through the license tax collector to pay such delinquent taxes plus seven percent simple annual interest upon the unpaid balance, in monthly installments or oftener, extending over a period of not to exceed one year.
In any agreement so entered into, such person shall acknowledge the obligation owed to the city and agree that in the event of failure to make timely payment of any installment the whole amount unpaid shall become immediately due and payable, and that his current license shall be revocable by the license tax collector upon thirty days' notice. In the event legal action is brought by the city to enforce collection of any amount included in the agreement, such person shall pay all costs of suit incurred by the city or its assignee, including a reasonable attorney's fee. The execution of such an agreement shall not prevent the prior accrual of penalties on unpaid balances at the rate provided hereinabove, but no penalties shall accrue on account of taxes included in the agreement after the execution of the agreement and the payment of the first installment, and during such time as such person shall not be in breach of the agreement.
(Prior code § 16-29)
Penalties shall be applicable on the nonpayment of license taxes as follows:
A. 
Daily Licenses. Any daily license tax unpaid when due shall be doubled.
B. 
Weekly Licenses. Any weekly license tax unpaid at the end of the calendar week shall have an amount equal to fifty percent of such tax added.
C. 
Monthly and Quarterly Licenses. Any monthly or quarterly license tax which shall remain unpaid at the end of the calendar month in which such license tax becomes due shall have added thereto a penalty equal to twenty-five percent of the amount thereof.
D. 
Semiannual and Annual Licenses. Semiannual license taxes, if unpaid, are delinquent on January 31st or on July 31st following the dates they are due. Annual license taxes, if unpaid, are delinquent on January 31st following the date they are due. Penalties shall be imposed for nonpayment as follows:
In any case where the applicant has failed for a period of thirty days to obtain the business license required by Chapters 5.04 and 5.08, there shall be added to and collected a penalty equal to ten percent of the tax, or one dollar, whichever is the greater; and for each additional month or fraction of a month after the expiration of such thirty-day period that the applicant fails to obtain such license there shall be added to and collected an additional penalty equal to ten percent of the license tax.
(Prior code § 16-30)
The license tax collector may make rules and regulations not inconsistent with the provisions of Chapters 5.04 and 5.08 as may be necessary or desirable to aid in the enforcement of the provisions of Chapters 5.04 and 5.08.
(Prior code § 16-33)
A. 
It shall be the duty of the license tax collector, and he is directed, to enforce each and all of the provisions Chapters 5.04 and 5.08, and the chief of police shall render such assistance in the enforcement hereof as may from time to time be required by the license tax collector or the city council.
B. 
The license tax collector, in the exercise of the duties imposed upon him hereunder, 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 Chapters 5.04 and 5.08 have been complied with.
C. 
The chief of police and any officer or employee of the city authorized to issue, inspect or collect licenses or taxes therefor, or to make investigations in connection therewith, shall have the right to enter, free of charge or restraint, during business hours, any place of occupation for which a license is required under this chapter and Chapter 5.08 or for which a license has been issued, and demand the exhibition of such license, examine the same, ascertain the tax due in connection therewith, and collect any tax due, and otherwise enforce any provisions of Chapters 5.04 and 5.08.
D. 
The chief of police and any officer or employee of the city authorized to issue, inspect, investigate or collect licenses or taxes in connection therewith, may make arrests for the violation of any of the provisions of Chapters 5.04 and 5.08, and shall cause complaints to be filed in a court of competent jurisdiction for the collection of any and all taxes and penalties due under Chapters 5.04 and 5.08.
(Prior code § 16-34)
Any person who claims that an arbitrary assessment of a license tax or penalty has been made by the license tax collector may request a hearing before the city council pursuant to Chapter 5.12.
(Prior code § 16-35)
Any person violating any of the provisions of Chapters 5.04 and 5.08, or knowingly or intentionally misrepresenting to any officer or employee of this city any material fact in procuring the license or permit herein provided for, shall be deemed guilty of a misdemeanor.
(Prior code § 16-31; Ord. 2893 § 6, 1975; Ord. 3647 § 2, 1983)
The conviction of any person for the violation of any provision of Chapters 5.04 and 5.08, and any fine resulting therefrom, shall not affect the payment of any tax or penalty for nonpayment prescribed in Chapters 5.04 and 5.08; however, such conviction shall be prima facie evidence in any action to collect any tax alleged to be due under Chapters 5.04 and 5.08.
(Prior code § 16-32; Ord. 2893 § 6, 1975)