Article 19.04 LICENSE TAXES

Except for businesses for which an exemption has been granted and businesses governed by subsection (b), any person engaged in or carrying on any profession, trade, calling, occupation or business hereinafter designated shall pay an annual registration tax of ten dollars. All business license taxes provided for herein for the privilege of engaging or carrying on any profession, trade, calling, occupation or business are imposed in addition to the annual registration tax, except that no registration tax shall be paid for those businesses mentioned in Section 19.04.090. The annual registration tax shall be nonrefundable and shall not be prorated. The annual registration tax is due and payable at the same time as any other business license tax which is due and payable pursuant to this chapter.

Those businesses described in subsection (k) of Section 19.04.060 shall pay an annual registration tax of twenty-five dollars, in addition to any other business license tax which is due and payable pursuant to this chapter. The annual registration tax shall be nonrefundable and shall not be prorated, and shall be paid at the same time as any other business license tax imposed by this chapter.

Notwithstanding other provisions of this chapter, an annual registration tax shall be charged for branch establishments of licensed businesses as set forth in Section 19.02.040, even if the business transacted by such branch is classified hereunder in the same category as the primary or principal licensed business.*

In the event that the tax hereby levied is declared invalid by a final judgment of a court of competent jurisdiction or is repealed by a legislative act or constitutional amendment, then, and without further action of the city council, the amendment adopted by Ordinance 1269 shall be of no further force and effect, and Section 19.04.020 shall automatically be revised to read as they did prior to the amendment by Ordinance 1269 and the passage of Ordinance 1257.

(Ord. 872 § 1; Ord. 973 § 1; Ord. 1269 § 1; Ord. 1299 § 1)

§ 19.04.030 Businesses in Group V.

As of January 1, 1979, the following businesses shall pay an annual business license tax in accordance with the schedule of taxes for Group V businesses based upon gross receipts derived therefrom.

Such businesses as may be hereafter specifically designated by resolution of the city council. Businesses which are included within this section and some other sections of this chapter shall be taxed at the rates applicable under this section to the exclusion of those rates specified by such other section or sections; however, every such business shall be required to pay the annual registration tax specified by Section 19.04.020.

(Ord. 973 § 2; Ord. 978 § 1)

§ 19.04.040 Businesses in Group IV.

The businesses listed below, and any other professional business requiring qualifying certification or licensing, shall pay an annual business license tax in accordance with the schedule of taxes for Group IV businesses based upon gross receipts derived therefrom:

Abstract and title

Advertising agent

Appraiser

Architect; landscape architect

Assayer

Attorney-at-law

Auditor

Bacteriologist

Broker or commission agent

Certified public accountant or public accountant

Chemist

Chiropodist

Chiropractor

Consulting services

Counselors

Dentist

Designer, illustrator or decorator; computer graphics designer

Detective agency and/or private patrol

Drugless practitioner; homeopathic physician

Electrologist

Engineer (civil, electrical, mining, chemical, structural, consulting or hydraulic)

Employment agency

Engraver

Entomologist

Feed, grain and fruit broker

Geologist

Illustrator or show-card writer

Insurance broker

Interpreter

Lapidary; gemologist

Massage therapist

Mortician

Naturopath

Nutritionist

Oculist

Optician

Optometrist

Osteopath

Pathologist

Physicians

Physiotherapist

Psychiatrist

Psychologist

Podiatrist

Real estate broker

Reporters (court, convention and/or certified shorthand)

Roentgenologist

Stock and bond broker

Surgeon

Surveyor

Taxidermist

Therapist

Urban planner

Veterinarian

(Ord. 872 § 1; Ord. 1879 § 4)

§ 19.04.050 Businesses in Group III.

The following businesses shall pay an annual business license tax in accordance with the schedule of taxes for Group III businesses based upon gross receipts derived therefrom:

Amusements, games, etc.

Concerts, lectures, motion pictures, tennis matches, boxing or wrestling matches, theatrical performances, vaudeville performances, street musicians, or any similar type of entertainment not otherwise specifically licensed hereunder, where an admission fee is charged.

Operation of coin-operated mechanical amusement devices.

(3)

Riding academy where instructions in horseback riding are given or horses or other animals are maintained for hire; or a feed or livery stable.

(4)

Other amusements and recreation services, except for those specifically enumerated elsewhere in this chapter.

Business and personal services. Every person engaged in the business of providing business or personal services, including internet and telephone services, not specifically taxed by other provisions of this chapter.

"Business and personal services" means any business providing services, repairs or improvements to or on real or personal property, or the renting or leasing of personal property to businesses or persons, including internet and telephone services.

General contractors, subcontractors and specialty contractors and property developers. Every person conducting, carrying on or managing a business, who undertakes to or offers to undertake to or purports to have the capacity to undertake to, or submits bids to, or does or causes to be done by or through 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 therewith, is defined as a contractor. The term "contractor," as used in this section, also includes subcontractors and specialty contractors.

Distributing advertising or handbills, etc. Distributing handbills, advertising throw-aways and other similar types of advertising materials.

(Ord. 872 § 1; Ord. 1879 § 5)

§ 19.04.060 Businesses in Group II.

The following businesses shall pay an annual business license tax in accordance with the schedule of taxes for Group II businesses based upon gross receipts derived therefrom:

Ambulance service.

Artist.

Commercial printing.

Finance companies and savings and loan associations.

Hospital, sanitarium, rest home, nursing home or asylum.

(f)

Newspaper publication and/or distribution.

(g)

Restaurants.

(h)

Vending machine (merchandise and/or service).

(i)

Commercial or industrial property. Every person engaged in the business of renting of commercial nonresidential property as an owner leasing to another person or as a lessee or sublessee subleasing to another person.

(j)

Distribution of stamps, coupons, etc. Every person who distributes any stamps, coupons, tickets, cards or other devices to be issued to purchasers of goods, wares, merchandise, services or any other thing of value, which stamps, coupons, tickets, cards or other devices shall entitle such purchaser to procure from the person issuing the stamps, coupons, tickets, cards or other devices, or from any other person, any goods, wares, merchandise, services, money or any other thing of value, free of charge upon the presentation of one or a number of such stamps, coupons., tickets, cards or other devices.

(k)

Hotels, motels, duplexes, apartment houses, roominghouses, trailer or mobile home parks, etc.* Hotel, motel, or roominghouse, boardinghouse, apartment house, lodging-house, trailer or mobile home park, house court or bungalow courts; also, except as exempted by Section 19.02.020(f), and except as defined in Section 19.04.090, persons engaged in the business of renting or letting rooms, apartments, or other accommodations for dwelling, sleeping, housekeeping or lodging.

(l)

Manufacturing and processing. Every person conducting or carrying on a business consisting of manufacturing, packing or processing any goods, wares, or merchandise other than food, at a fixed place of business within the city. For the purpose of this section, the business license tax shall be applicable to the value of the manufactured or processed product, as reflected by the licensee's method of accounting, using generally accepted principles of accounting consistently applied, less the cost of purchased raw materials or, in the alternative, less the value of the raw materials or the value of the partially completed product at the time it enters the manufacturing process within the city.

(m)

Retail sales and miscellaneous businesses. Every person conducting or carrying on a business consisting of selling at retail any goods, wares and merchandise or commodities, or conducting, maintaining or carrying on any trade, occupation, calling or business at a fixed place of business within the city and not otherwise specifically licensed by other subdivisions of this chapter.

(n)

Trade school or college, business school or college. Where instruction is given in any trade, profession, calling or occupation and a fee is charged for such instruction.

(o)

Transporting persons. Every person. conducting or carrying on the business of transporting persons for hire, picking up and/or discharging passengers within the city.

(p)

Wholesaling. Every person conducting or carrying on a business consisting of selling, handling and storing at wholesale any goods, wares and merchandise or commodities, other than food, at a fixed place of business within the city.

In the event that the tax hereby levied is declared invalid by a final judgment of a court of competent jurisdiction or is repealed by a legislative act or constitutional amendment, then, and without further action of the city council, the amendment adopted by Ordinance 1269 shall be of no further force and effect, and subsection (k) shall automatically be revised to read as they did prior to the amendment by Ordinance 1269 and the passage of Ordinance 1257.

(Ord. 872 § 1; Ord. 1269 § 2)

§ 19.04.070 Businesses in Group I.

The following businesses shall pay an annual license tax in accordance with the schedule of taxes for Group I businesses based upon gross receipts derived therefrom:

Automobile, boat and motorcycle dealers, including related services which are a part of the dealership, except that leasing services are under Group III.

Gasoline service stations.

Grocery stores.

Food wholesaling. Every person conducting or carrying on a business consisting of selling, handling and storing at wholesale any food at a fixed place of business within the city.

Food manufacturing or processing. Every person conducting or carrying on a business consisting of manufacturing, packing or processing any food at a fixed place of business within the city. For the purpose of this section, the business license tax shall be applicable to the value of the manufactured or processed product as reflected by the licensee's method of accounting, using generally accepted principles of accounting consistently applied, less the cost of purchased raw materials or, in the alternative, less value of the raw materials or the value of the partially completed product at the time it enters the manufacturing process within the city.

(f)

Public utilities.

(Ord. 872 § 1; Ord. 906 § 2)

§ 19.04.080 Schedule of taxes.

See Table 9-1 at the end of this section.

To compute the total tax due for gross receipts in excess of one million dollars, find the appropriate bracket for each one million dollars or increment thereof, adding the total tax due for each one million dollars or increment thereof. (For example, a grocery store (Group I) has receipts of two million and fifty-five thousand dollars. The total tax due is three hundred one dollars and fifty cents for the first million plus three hundred one dollars and fifty cents for the second million plus sixteen dollars and fifty cents for the fifty-five thousand dollars, yielding a business license tax of six hundred nineteen dollars and fifty cents):

Annual registration tax. Ten dollars.

Business license tax.

Tax on first million: three hundred one dollars and fifty cents.

Tax on second million: three hundred one dollars and fifty cents.

(3)

Tax on fifty-five thousand dollars: sixteen dollars and fifty cents.

(4)

Total tax on two million, fifty-five thousand dollars: six hundred nineteen dollars and fifty cents.

§ 19.04.090 Businesses subject to miscellaneous tax rates.

Total due (1 + 2). Six hundred twenty-nine dollars and fifty cents.

TABLE 9-1: SCHEDULE OF TAXES
Gross Receipts		Business License Tax
Brackets		Group I	Group II	Group III	Group IV
$0	$ 9,999	$ 1.50	$ 3.00	$ 4.50	$ 9.00
10,000	19,999	4.50	9.00	13.50	27.00
20,000	29,999	7.50	15.00	22.50	45.00
30,000	39,999	10.50	21.00	31.50	63.00
40,000	49,999	13.50	27.00	40.50	81.00
50,000	59,999	16.50	33.00	49.50	99.00
60,000	69,999	19.50	39.00	58.50	117.00
70,000	79,999	22.50	45.00	67.50	135.00
80,000	89,999	25.50	51.00	76.50	153.00
90,000	99,999	28.50	57.00	85.50	171.00
100,000	109,999	31.50	63.00	94.50	189.00
110,000	119,999	34.50	69.00	103.50	207.00
120,000	129,999	37.50	75.00	112.50	225.00
130,000	139,999	40.50	81.00	121.50	243.00
140,000	149,999	43.50	87.00	130.50	261.00
150,000	159,999	46.50	93.00	139.50	279.00
160,000	169,999	49.50	99.00	148.50	297.00
170,000	179,999	52.50	105.00	157.50	315.00
180,000	189,999	55.50	111.00	166.50	333.00
190,000	199,999	58.50	117.00	175.50	351.00
200,000	209,999	61.50	123.00	184.50	369.00
210,000	219,999	64.50	129.00	193.50	387.00
220,000	229,999	67.50	135.00	202.50	405.00
230,000	239,999	70.50	141.00	211.50	423.00
240,000	249,999	73.50	147.00	220.50	441.00
250,000	259,999	76.50	153.00	229.50	459.00
260,000	269,999	79.50	159.00	238.50	477.00
270,000	279,999	82.50	165.00	247.50	495.00
280,000	289,999	85.50	171.00	256.50	513.00
290,000	299,999	88.50	177.00	265.50	531.00
300,000	309,999	91.50	183.00	274.50	549.00
310,000	319,999	94.50	189.00	283.50	567.00
320,000	329,999	97.50	195.00	292.50	585.00
330,000	339,999	100.50	201.00	301.50	603.00
340,000	349,999	103.50	207.00	310.50	621.00
350,000	359,999	106.50	213.00	319.50	639.00
360,000	369,999	109.50	219.00	328.50	657.00
370,000	379,999	112.50	225.00	337.50	675.00
380,000	389,999	115.50	231.00	346.50	693.00
390,000	399,999	118.50	237.00	355.50	711.00
400,000	409,999	121.50	243.00	364.50	729.00
410,000	419,999	124.50	249.00	373.50	747.00
420,000	429,999	127.50	255.00	382.50	765.00
430,000	439,999	130.50	261.00	391.50	783.00
440,000	449,999	133.50	267.00	400.50	801.00
450,000	459,999	136.50	273.00	409.50	819.00
460,000	469,999	139.50	279.00	418.50	837.00
470,000	479,999	142.50	285.00	427.50	855.00
480,000	489,999	145.50	291.00	436.50	873.00
490,000	499,999	148.50	297.00	445.50	891.00
500,000	509,999	151.50	303.00	454.50	909.00
510,000	519,999	154.50	309.00	463.50	927.00
520,000	529,999	157.50	315.00	472.50	945.00
530,000	539,999	160.50	321.00	481.50	963.00
540,000	549,999	163.50	327.00	490.50	981.00
550,000	559,999	166.50	333.00	499.50	999.00
560,000	569,999	169.50	339.00	508.50	1017.00
570,000	579,999	172.50	345.00	517.50	1035.00
580,000	589,999	175.50	351.00	526.50	1053.00
590,000	599,999	178.50	357.00	535.50	1071.00
600,000	609,999	181.50	363.00	544.50	1089.00
610,000	619,999	184.50	369.00	553.50	1107.00
620,000	629,999	187.50	375.00	562.50	1125.00
630,000	639,999	190.50	381.00	571.50	1143.00
640,000	649,999	193.50	387.00	580.50	1161.00
650,000	659,999	196.50	393.00	589.50	1179.00
660,000	669,999	199.50	399.00	598.50	1197.00
670,000	679,999	202.50	404.00	607.50	1215.00
680,000	689,999	205.50	411.00	616.5.0	1233.00
690,000	699,999	208.50	417.00	625.50	1251.00
700,000	709,999	211.50	423.00	634.50	1269.00
710,000	719,999	214.50	429.00	643.50	1287.00
720,000	729,999	217.50	435.00	652.50	1305.00
730,000	739,999	220.50	441.00	661.50	1323.00
740,000	749,999	223.50	447.00	670.50	1341.00
750,000	759,999	226.50	453.00	679.50	1359.00
760,000	769,999	229.50	459.00	688.50	1377.00
770,000	779,999	232.50	465.00	697.50	1395.00
780,000	789,999	235.50	471.00	706.50	1413.00
790,000	799,999	238.50	477.00	715.50	1431.00
800,000	809,999	241.50	483.00	724.50	1449.00
810,000	819,999	244.50	489.00	733.50	1467.00
820,000	829,999	247.50	495.00	742.50	1485.00
830,000	839,999	250.50	501.00	751.50	1503.00
840,000	849,999	253.50	507.00	760.50	1521.00
850,000	859,999	256.50	513.00	769.50	1539.00
860,000	869,999	259.50	519.00	778.50	1557.00
870,000	879,999	262.50	525.00	787.50	1575.00
880,000	889,999	265.50	531.00	796.50	1593.00
890,000	899,999	268.50	537.00	805.50	1611.00
900,000	909,999	271.50	543.00	814.50	1629.00
910,000	919,999	274.50	549.00	823.50	1647.00
920,000	929,999	277.50	555.00	832.50	1665.00
930,000	939,999	280.50	561.00	841.50	1683.00
940,000	949,999	283.50	567.00	850.50	1701.00
950,000	959,999	286.50	573.00	859.50	1719.00
960,000	969,999	289.50	579.00	868.50	1737.00
970,000	979,999	292.50	585.00	877.50	1755.00
980,000	989,999	295.50	591.00	886.50	1773.00
990,000	999,999	298.50	597.00	895.50	1791.00
1,000,000	1,009,999	301.50	603.00	904.50	1809.00

(Ord. 872; Ord. 973 § 1; Ord. 987 § 1)

For every person conducting or carrying on any business hereinafter described in this section, the license tax shall be as set forth herein:

Transportation and trucking. Every person not having a fixed place of business within the city and not being herein otherwise licensed or classified, who delivers goods, wares or merchandise of any kind by vehicle or who provides any service by the use of vehicles in the city, shall pay a business license tax of one hundred twenty dollars annually per vehicle; provided, that any such person may elect to pay a business license tax under the same section as a similar business with a fixed place of business within the city, measured by gross receipts from business done within the city.

Dance halls, etc. Public dance hall, nightclub or any place where dancing is permitted, two hundred dollars per year, in addition to the business license tax determined by gross receipts.

Card rooms. Conducting a public card room where games of any kind are played with cards, six hundred dollars per year for the first table, one hundred eighty dollars per year for each additional table, in addition to the business license tax determined by gross receipts, exempting therefrom all fraternal organizations and labor unions, if no private individual operates the card room for a fee or percentage of the profits.

Amusement circuses, menageries, tent shows, theatricals.

Circus, carnival or other similar exhibition, three hundred dollars for each day; each circus or menagerie parade or procession on, over or along any public street or highway of the city, by any person not having a license to exhibit such circus, carnival or other similar exhibit in such city, three hundred dollars per day.

When the carnival, circus or tent show business license tax is paid, no additional license shall be required for shows, exhibitions, rides or devices within the carnival, circus or tent show.

"Carnival" shall include tent shows, games of skill, rides and devices.

Lecture or traveling theatrical performance under or surrounded or partially enclosed by canvas, such as comedy, spoken drama, opera or concert, sixty dollars per day.

(3)

Concessions or rides for children, other than carnivals, including miniature trains, merry-go-rounds, pony rides, speedways (small electric automobiles), small gasoline automobiles, etc., one hundred twenty dollars per year for each such ride device.

(4)

Concessions or rides for adults, other than carnivals, including carrousels, loop-o-planes, aeroplanes, Ferris wheels, sky fliers, scooters, whips, toonervilles, or ride devices of a similar character, one hundred twenty dollars per year for each such ride device.

Bankrupt closeout sales, etc. Owning, operating, opening, establishing, managing, maintaining or having charge of any location or place of business of any kind for the sale of any insolvent or bankrupt business, fire-damaged, closeout or other similar goods, wares or merchandise, one hundred twenty dollars for the first thirty days, plus thirty dollars per day over thirty days.

(f)

Christmas trees, greens or card sales. Sale of Christmas trees, holly, berries, cards or other seasonal items, sixty dollars per season, except where business is conducted in connection with another regularly established place of business for which a license has been issued, or is conducted by and solely for the benefit of a charitable or nonprofit organization.

(g)

Junk dealers or dealers in old and/or used articles. Every person, at a fixed place of business in the city, engaged in the business of carrying on or collecting, buying or selling, at either retail or wholesale, or otherwise dealing in junk and/or rubbish, waste material, refuse and/or any old rags, sacks, bottles, cans, papers, metals, jewelry, precious metals, rubber, bric-a-brac, cordage, truck or automobile tires, truck or automobile accessories and truck or automobile parts and other like articles, whether such can be sold or otherwise disposed of for the purpose of being treated, repaired or prepared so as to be used again in some other form, six hundred dollars per year.

(h)

Pawnbrokers. Six hundred dollars per year.

(i)

Occasional bazaar, crafts fair, etc. The coordinator or promoter of the event shall pay a fee of thirty dollars per day for the entire event. This section shall only apply to occasional bazaars, crafts fairs, and the like, where individual artisans display for purposes of sale only such goods, crafts and works which they have personally created.

(j)

Peddler. "Peddler" is defined as any person who sells and makes immediate delivery or offers for sale and immediate delivery any goods, wares, merchandise, service or thing in the possession of the seller, at any place in the city other than at a fixed place of business, but does not include salesmen or agents for wholesale houses or firms who sell to retail dealers for resale or sell to manufacturers for manufacturing purposes to bidders for public works or supplies. Every person, firm or corporation engaged in such a business (peddler) in the city shall pay a business license tax of four hundred fifty dollars per year per peddler, or thirty dollars per day per peddler. No peddler shall conduct business within the area bounded by B Street on the west, Fifth Street on the north, H Street on the east and First Street on the south during the annual three-day sidewalk sale conducted by the Davis Downtown Merchants Association. No peddler shall sell, nor shall a business license be granted for the sale of Silly String or any similar product that causes a foam-like material to be propelled out of an aerosol container on the annual Picnic Day conducted by the University of California at Davis.

Peddlers of food products, produce and fresh cut flowers shall pay a business license tax of one hundred fifty dollars per year per peddler, or fifteen dollars per day per peddler.

All other peddlers shall pay a business license tax of four hundred fifty dollars per year per peddler, or thirty dollars per day.

(k)

Solicitor. "Solicitor" is defined as any person who engages in the business of going from place to place, and/or by telephone, selling or taking orders for or offering to sell or take orders for goods, wares or merchandise or other things of value for future delivery, or for services to be performed in the future. Every person, firm or corporation engaged in such a business in the city shall be required to pay a business license tax of four hundred fifty dollars per year per solicitor, or thirty dollars per day per solicitor. No solicitor shall conduct business within the area bounded by B Street on the west, Fifth Street on the north, H Street on the east and First Street on the south during the annual three-day sidewalk sale conducted by the Davis Downtown Merchants Association.*

(l)

Owners or lessors of single-family dwellings (attached or detached), and of individual rooms in such dwellings shall pay a tax of twenty-five dollars per calendar year, or portion thereof for each such dwelling unit so used or offered for such use. For purposes of this section, a duplex shall be considered a single-family dwelling if one unit is occupied by the record owner thereof.**

If the order of any court of competent jurisdiction or any valid passed statute or constitutional amendment prohibits tax increases without a vote of the electors in the city, and if the within amendment is declared to be a tax increase by a court of competent jurisdiction, then subsection (k) shall automatically, without further action of the city council, read as it did prior to passage of the amendment by Ordinance 1278.

Due January 1, 2010, and each year thereafter.

(Ord. 872; Ord. 904 § 1; Ord. 973 § 4; Ord. 976 § 1; Ord. 978 § 2; Ord. 994 § 1; Ord. 1269 § 3; Ord. 1278 § 1; Ord. 2164 § 1, 2005; Ord. 2344 § 1, 2009)

§ 19.04.100 Marijuana businesses.

Every person engaged in a marijuana business shall pay an annual business license tax as follows:

Ten percent of each dollar of gross receipts shall be due to the city for the reporting period.

Notwithstanding the tax rate imposed in subsection (a), the city council may, in its discretion, at any time by resolution implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rate established under subsection (a).

For purposes of this section, the following terms have the following meanings:

"Gross receipts"

has the meaning as defined in Section 19.01.010, as it pertains to the marijuana business' reporting period, and includes receipts from the sale of marijuana and from the sale of paraphernalia used for consuming marijuana and any other products, goods, or services sold or provided by the marijuana business.

"Marijuana"

has the same meaning as "Cannabis" as defined in California Business and Professions Code Section 19300.5(f).

"Marijuana business"

means a business activity including, but not limited to, planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, distributing, providing, or selling wholesale and/or retail sales of marijuana. A marijuana business includes any facility, building, structure or location, whether fixed, mobile, permanent or temporary, but excluding dispensaries that only provide medical marijuana for medical purposes.

"Reporting period"

means a year, quarter or calendar month, as determined by the administrator.

The purpose of this tax is to raise revenue to fund general municipal services.