Funds generated by the business license tax specified in this chapter and Chapter 5.12 of this code shall be used for the improvement of or for the benefit of the business community and not used for employee costs except for costs of administration. Unless a specific license fee is imposed elsewhere in this title, the general license fee for doing business shall be as follows:
A. 
For a sole proprietorship, with no employees, a license fee of forty-one dollars per year;
B. 
For a business operating with one to five employees, a license fee of sixty-one dollars per year;
C. 
For a business operating with six, to ten employees, a license fee of eighty-two dollars per year;
D. 
For a business operating with eleven or more employees, a license fee of one hundred two dollars per year.
E. 
License fees due pursuant to this section or as set forth in subsections A through M of Section 5.12.010 of this code shall, for each year after 1996, be increased by multiplying .8 times the Consumer Price Index ("CPI") for Los Angeles Urban Wage Earners and Clerical as determined on June 1st of the year just ended times the license fee for the year just ended.
(Ord. 80-16 § 3, 1980; Ord. 89-01 § 1(part), 1989; Ord. 95-10 § 1, 1995)
Upon a person making application for a license or any renewal thereof, under the provisions of this title, he shall upon demand by the city clerk furnish to the city clerk for his guidance in ascertaining the amount of license to be paid by the applicant, a written declaration under penalty of perjury, setting forth such information as may be required and as may be necessary to properly determine the amount of the license to be paid by the applicant.
(Ord. 80-16 § 2(2), 1980)
The declaration filed pursuant to the provisions of this title shall be deemed confidential in character and shall not be subject to public inspection, and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration of this title. Any officer or employee who shall wilfully violate any provision of this section shall be deemed guilty of an unlawful act, and such violation shall be cause for discharge from the city’s service.
(Ord. 80-16 § 2(3), 1980)
No declaration required in this title shall be conclusive upon the city, and whenever it appears to the satisfaction of the city clerk and the city clerk has reason to believe that such statement does not set forth the true facts of the business for which a license is required, the city clerk may withhold the issuance of a license therefor until such time as the applicant shall furnish to the city council satisfactory evidence of the truth of such statement. If such evidence is not furnished to the city council within a reasonable time, or should it at any time appear to the council that by reason of error, misrepresentation, fraud or any other cause whatsoever, the license fee has not been properly fixed for any license issued, the city council shall give not less than five days’ written notice to the licensee to show cause, at a time and place fixed in the notice, why a fee, to be determined by the city council and specified in the notice, should not be fixed for such license. At such hearing, the licensee may appear and offer evidence why such specified fee should not be fixed as the license fee. After such hearing, the city council shall determine the proper fee to be charged and shall forthwith give written notice to the licensee of such determination and the amount of such fee.
(Ord. 80-16 § 2(4), 1980)