The purpose of Article 6 is to identify businesses, trades and professions conducted and carried on in the City of Santa Monica that require local regulation in order to promote and protect the public health, safety and welfare of Santa Monica and its citizens. In addition to the imposition of business license taxes that support general fund services, this Article sets forth the specific standards and criteria under which such businesses, trades and professions shall be conducted and regulated within the City and, as to those businesses, trades and professions for which a business license certificate is required hereunder, to set forth the procedures and conditions for applying for such a license. Additionally, the purpose of Article 6 is to protect the health, safety, and welfare by:
(a) 
Providing a method of monitoring all businesses operating within the City;
(b) 
Providing adequate information regarding the ownership and operation of businesses within City limits and facilitating contact between the City and those businesses;
(c) 
Regulating the operation of certain enumerated businesses to ensure that their operation does not adversely affect the general welfare;
(d) 
Providing for a healthy and stable business community;
(e) 
Collecting statistical information regarding businesses within the City; and
(f) 
Monitoring tax registration and compliance.
(Ord. No. 2797CCS, eff. 1/1/2025)
The following words or phrases as used in this Article shall have the following meanings:
(a) 
"Administrative regulations"
means written administrative regulations and instructions that are consistent with and further the terms and requirements set forth within this Chapter.
(b) 
"Assessments"
means business improvement district assessments that are established by resolution and are assessed typically in conjunction with business license taxes.
(c) 
"Business"
means any business, commercial enterprise, trade, calling, vocation, profession, occupation, or means of livelihood, whether or not carried on for gain or profit. "Business" shall include operations of any related entity or independent entity conducted for the benefit of others and at no profit to themselves, nonprofit businesses, and trade associations.
(d) 
"Business license certificate"
means a document issued by the City which signifies that the person or entity named on the face of the certificate has fulfilled the requirements of the Santa Monica Municipal Code by registering with the Department of Finance for the purpose of paying business license tax for the classification of business for which the certificate is issued. This document is also a written authorization issued by the City allowing the business to engage in a specific business activity subject to all required regulatory approvals for that business activity.
(e) 
"Business license certificate exemption"
means businesses that are exempt from procuring a business license certificate under this Chapter.
(f) 
"Business license tax"
means the tax imposed pursuant to Chapters 6.04, 6.08, and 6.12 of the Santa Monica Municipal Code for the privilege of engaging in a business or occupation in the City. The business license tax is a general tax imposed for general governmental purposes.
(g) 
"Business license tax exemption"
means business activities that the City has exempted under Section 6.04.025 or business activities that the City is prohibited from taxing under the Constitution or laws of the United States, or under the Constitution or laws of the State of California.
(h) 
"City"
means the City of Santa Monica.
(i) 
"Corporate or administrative headquarters"
means a location that provides administrative or management-related services including, but not limited to, record keeping, data processing, research, public relations, personnel administration, and legal support to other location of the business. Businesses that are in research and development or otherwise providing a service to another location of the business or that are primarily funded by investment money or loans rather than by gross receipts are also classified as a "corporate or administrative headquarters".
(j) 
"Engaged in business"
means conducting, operating, managing, or carrying on of a business, whether done as owner, or by means of an officer, agent, manager, related entity or employee. A person or entity shall be deemed engaged in business within the City if such entity officer, agent, manager, or employee, among other things:
(1) 
Maintains a fixed place of business within the City for the benefit or partial benefit of such person, or
(2) 
Owns or leases real property within the City for business purposes, or
(3) 
Maintains a stock of tangible personal property in the City for sale in the ordinary course of business, or
(4) 
Conducts solicitation of business or advertises within the City, or
(5) 
Performs work or renders services in the City, or
(6) 
Utilizes the streets within the City in connection with the operation of motor vehicles for business purposes, or
(7) 
Any other evidence of transacting or carrying on business.
"Engaged in business" shall be construed as broadly as possible. The foregoing specified activities are non-exhaustive and shall not be construed as a limitation on the meaning of "engaged in business".
(k) 
"Fees"
means applicable fees that are collected in conjunction with the business license tax.
(l) 
"Gross receipts"
(1) 
"Gross receipts" includes:
(i) 
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 part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit allowed, including, without limitation, all receipts, cash, credits, forfeited or retained deposits of any kind or nature, and property of any kind or nature, in any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom 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 any other expense whatsoever.
(ii) 
Cost of Operations. For corporate or administrative headquarters, all annual expenses incurred in the operation of the corporate or administrative headquarters located in the City including, without limitation, all payroll, including all benefits, for employees based in the City, annual fair rent value of all real property in the City, and cost of all utilities for the operation of such corporate or administrative headquarters.
(2) 
"Gross receipts" shall not include:
(i) 
The amount of any Federal tax imposed on or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of Federal tax is stated to customers as a separate charge.
(ii) 
Any California State, city, or city and county sales or tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser.
(iii) 
Such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale.
(iv) 
Any refundable deposit which is returned to the depositor.
(v) 
That portion of the receipts of a general building contractor licensed under Section 6.08.060 or 6.08.070, which represents payments to subcontractors, provided such subcontractors are licensed under the provisions of this Chapter and that the general contractor furnishes the Director of Finance with the names and addresses of the subcontractors and the amounts paid to each subcontractor.
(vi) 
Bad debts taken from gross receipts reported during a prior tax year in accordance with generally acceptable accounting practices.
(vii) 
Anything which the City of Santa Monica may not lawfully include by virtue of the Constitution of the United States or the Constitution of the State of California.
(viii) 
Fees for actual costs of governmental requirements (e.g., inspections, plan checks, etc.) paid by a licensee on behalf of a third party.
(ix) 
Collections for others when the business is acting as an agent, broker, or trustee to the extent that payments are made to those for whom collected.
(m) 
"Independent contractor"
shall have the same meaning as set forth in California Labor Code Sections 3353 and 2775, as may be amended from time to time.
(n) 
"Newly established business"
means a business which was not engaged in business in the City during the immediately preceding business license tax period specified for that kind of business.
(o) 
"Operate"
means to manage, control or carry on, whether done as an owner, an agent, an employee, or a lessee, or a licensee.
(p) 
"Regulatory permit"
means an annual regulatory permit for the privilege of conducting specific types of business within the City as provided by other chapters of the Santa Monica Municipal Code.
(q) 
"Related entity"
means a parent, subsidiary and any business, corporation, partnership, limited liability company or other entity in which the company, a parent or a subsidiary holds a substantial ownership interest, directly or indirectly.
(r) 
"Required regulatory approvals"
means any required regulatory approval, including, without limitation, the issuance of any license agreement, permit, or any other authorization required by the Santa Monica Municipal Code, State law, or Federal law.
(Prior code § 6000; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
It shall be unlawful for any person, whether as principal or agent, clerk or employee, either for him or herself or for any other person, or for any body corporate, or as an officer of any corporation, or otherwise, to operate in the City of Santa Monica any business specified in this Code and as herein defined, whether or not such business is carried on for gain or profit, without first having paid the required business license tax and having procured a business license certificate and obtained all required regulatory approvals.
(Prior code § 6001; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
The provisions of this Chapter shall not be deemed or construed to 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 of California, or local law, from the payment of such taxes as are prescribed in this Chapter. Any person claiming an exemption pursuant to the provisions of this Section shall file a sworn statement with the Finance Department stating the facts upon which an exemption is claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the business license taxes imposed by this Chapter.
(a) 
World-Wide Gross Receipts of One Hundred Thousand Dollars or Less. The requirements of this Chapter relating to the payment of business license taxes shall not apply to the operator of a business operating within the City and the tax liability of the business would otherwise be calculated based upon gross receipts.
(1) 
For purposes of this Section, businesses with total taxable and nontaxable annual gross receipts from within and without the City during the preceding calendar year that do not exceed one hundred thousand dollars may claim this exemption. Effective July 1, 2026, and every July 1st thereafter, the exemption limit shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the Los Angeles, California, area (or any successor to that index) during the preceding calendar year. The maximum annual exemption shall not exceed one hundred twenty-five thousand dollars without City Council approval.
(2) 
Any person claiming exemption from the requirement of paying the business license tax under this Section shall be required to obtain a business license certificate and timely file for exemption and subsequent renewals before the delinquency date. The failure to timely file or renew prior to the date the taxes would otherwise have been delinquent pursuant to Section 6.04.160, shall render inapplicable the exemption provided in this Section and shall subject the person to the tax that would otherwise be payable as well as to any interest and penalty applicable thereto. Persons claiming exemption shall also be required to pay any applicable assessments, processing fee, all other applicable City fees, and to obtain all permits required for the operation of the business.
(3) 
Any person claiming exemption under this Section shall submit documentation evidencing the total taxable and nontaxable gross receipts of the applicant in support of its initial exemption registration and the annual exemption renewal. Such documentation shall comply with the requirements established by the Finance Director to ensure the accuracy and validity of the City's determination on the exemption claim.
(b) 
Disabled Persons, Exemption. A person who is disabled within the meaning of any Federal or State law may request and be issued a certificate of exemption from the payment of the business license tax for any retail, manufacturing, or wholesaling business in which he or she is engaged if the gross receipts of the business are less than one hundred thousand dollars. Effective July 1, 2026, and every July 1st thereafter, the exemption limit referenced above in paragraph (b) shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the Los Angeles, California, area (or any successor to that index) during the preceding calendar year. The maximum annual exemption in this Section shall not exceed one hundred twenty-five thousand dollars without City Council approval.
(c) 
Nonprofit Business Exemption. The provisions of this Chapter shall not require the payment of business license taxes to carry on any business, by any nonprofit corporation or organization which is carried on wholly for the benefit of nonprofit purposes and from which profit is not derived, either directly or indirectly by any person.
(1) 
Definition of Nonprofit Corporation or Organization. For purposes of this Section, a nonprofit organization is defined as one which is organized not for profit but for the promotion of the welfare of others. A nonprofit corporation is defined as any nonprofit corporation organized under California law for charitable purposes. A nonprofit organization or corporation is one which is exempt from paying Federal income tax by virtue of its nonprofit status.
(2) 
Evidence of Nonprofit Status. Upon request of the Director of Finance, a corporation or organization claiming exemption from the business license tax based upon its nonprofit status shall submit documentation satisfactory to City, evidencing the nonprofit status of the organization or corporation.
(Added by Ord. No. 2158CCS, adopted 6/14/05; Ord. No. 2797CCS, eff. 1/1/2025)
The following activities shall be exempt from the business license certificate requirement under this Chapter:
(a) 
Community Event Exemption. Any approved participant, including vendors, in any community event authorized by the City shall not be required to obtain a business license certificate or pay business license taxes solely due to participation in the community event. An approved participant otherwise subject to the requirements of this Chapter shall not exclude any gross receipts attributable to participation in the community event in total gross receipts calculations as required by this Article.
(b) 
No business license certificate or payment of business license tax shall be required for the conducting of any entertainment, concert, exhibition, or lecture on scientific, historical, literary, religious, political, or moral subjects whenever the receipts of any such entertainment, concert, exhibition or lecture are to be appropriated entirely to any nonprofit purpose.
(c) 
Any business that is exempt from procuring a business license certificate and paying business license tax provided in applicable statutes of the United States, the Federal or State Constitution, the State of California Civil Code, other State law, or local law.
(d) 
Upon request of the Director of Finance, a corporation or organization claiming exemption from the business license certificate requirement shall submit documentation satisfactory to City, evidencing the nonprofit status of the organization or corporation. The Director of Finance, or designee, may promulgate administrative regulations to implement the provision of this Section.
(Added by Ord. No. 2458CCS § 1, adopted 5/27/14; Ord. No. 2797CCS, eff. 1/1/2025)
Business license applicants and annual renewals shall pay a fee for processing business license applications and annual renewals. The initial amount of this fee shall be forty dollars. The City Council may increase this fee by resolution up to a maximum one hundred dollars.
(Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
Director of Finance to Issue Business License Certificates. The business license certificates required by this Code shall be issued by the Director of Finance and shall state the period of time covered thereby, the name of the person to whom issued, the business licensed and the location or place of business where such business is to be carried on.
(b) 
Prohibition on Assignment or Transfer. No business license certificate may be transferred or assigned. If a person or entity that holds a business license certificate loans or otherwise allows such business license certificate to be used by an unlicensed person or entity, such business license certificate shall automatically be revoked.
(c) 
Duplicate Business License Certificate, Permits and Decals. The Director of Finance shall charge a fee set by resolution for each duplicate business license certificate, regulatory permit and/or decal issued under the provisions of this Code which has been lost or destroyed.
(d) 
Mistake Not Binding on City. In no case shall any mistake made by the Director of Finance in stating the amount of a business license tax owed prevent or prejudice the collection by the City of the amount actually due from any licensee.
(e) 
City Clerk References. Whenever in this Article the City Clerk is charged with the responsibility of processing, issuing, or administering a license or permit, the reference to the City Clerk shall be deemed a reference to the Director of Finance.
(Prior code § 6003; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
The Director of Finance, or designee, may issue administrative rules and regulations, determinations, and interpretations consistent with Chapters 6.04, 6.08, and 6.12 as may be necessary or appropriate, including without limitation, rules and regulations for the purpose of carrying out and enforcing the payment, collection, remittance of business license taxes, or the conditions or operations of any rules and regulations promulgated by this Section. Failure or refusal to comply with any rules and regulations promulgated under this Section shall be deemed a violation of the applicable Chapter.
(Ord. No. 2797CCS, eff. 1/1/2025)
The Director of Finance may delegate any authority under this Chapter to: (1) any City employee; or (2) any contractor or agent engaged by the City for the purpose of administering the business license tax.
(Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
All applicable business license tax, fees, and assessments shall be paid in advance in legal money of the United States, at the office of the Director of Finance.
(b) 
A charge established by resolution shall be assessed for any check, ACH, electronic payment or echeck return due to lack of sufficient funds. Penalties shall also be assessed pursuant to Section 6.04.160 hereof, unless a new check clears prior to the delinquent date.
(Prior code § 6004; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
The issuance of a business license certificate or the payment of the applicable business license tax, assessments, and fees for conducting any business shall not relieve any such business from any other required regulatory approval. At all times, a business in receipt of a business license certificate remains subject to the Santa Monica Municipal Code, as may be amended from time to time, and all applicable required regulatory approvals. Revocation, suspension, or denial of any required regulatory approvals may result in the revocation, suspension, or denial of a business license certificate.
(Ord. No. 2797CCS, eff. 1/1/2025)
Except when a business is physically contiguous, a separate business license certificate must be obtained for each branch establishment or separate place of business in which business is conducted. Each license shall authorize the party obtaining it to operate only that business described in such license and only at the location or place of business which is indicated thereby.
(Prior code § 6005; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS § 1, adopted 5/28/96; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
Any person holding a California State license shall be considered a contractor and must secure his or her City license.
(b) 
Any general building contractor or subcontractor holding a contract with the City must secure a City license.
(c) 
Any person holding a State of California contractor's license will be deemed to be engaged in business if he or she is engaged within the City in work covered by his or her State license and must obtain a City business license, unless he or she is employed by another person who holds the same type of State license and a City business license.
(Prior code § 6007; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This Section applies to persons who build upon property in which they have an ownership interest. Every person who makes an application for a building permit as a builder-owner must file an affidavit that all workers under his or her supervision and direction are employed by the hour, or day, and do not hold a State of California license.
(Prior code § 6008; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
Prior to requesting final approval of any building or project, it shall be the duty of the general contractor or owner-builder to fill out and return the form to be provided by the Building Department listing the names and addresses of all subcontractors or specialty contractors performing work or services upon said structure or project. It shall be the duty of the general building contractor or owner-builder at the time he or she makes any subcontract (written or oral) for the performance of any work by a subcontractor or specialty contractor, and which is to be performed within the City, to see that such subcontractor or specialty contractor has obtained the required contractor's business license certificate from the City and he or she shall not permit any such contractor to perform any of the work contemplated in any such subcontract (written or oral) unless and until such required contractor's business license certificate has been first obtained. Final approval for such building shall not be given until all subcontractors or specialty contractors have obtained all necessary business license certificates.
(Prior code § 6009; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
Every daily business license certificate shall expire at midnight on the day during which it was issued.
(b) 
Every monthly business license certificate shall expire at midnight of the last day of the month during which it was issued.
(c) 
Every annual business license certificate, whether based on gross receipts, cost of operations or a flat rate, shall expire at midnight on the June 30th next succeeding its issuance unless specified otherwise in this Code.
(Prior code § 6010; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2126CCS § 1, adopted 6/15/04; Ord. No. 2292CCS § 3, adopted 7/28/09; Ord. No. 2315CCS § 6, adopted 6/22/10; Ord. No. 2797CCS, eff. 1/1/2025)
The business license tax, applicable assessments and fees for any daily, monthly, or annual business license, or any business license based upon gross receipts, cost of operations or flat fees shall not be reduced or prorated even though a portion of the license period has expired at the time the business license certificate is issued.
(Prior code § 6011; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
Prior History: Former Section 6.04.130 Bond requirement, compiled of prior code § 6012; added by Ord. No. 1523CCS, adopted 5/8/90; repealed by Ord. No. 2797CCS, eff. 1/1/2025.
(a) 
The payment of business license taxes, applicable fees and assessments made in person by the licensee or licensee's agent or representative shall be made on or prior to close of City business hours, and will be clocked in as received at the date of delivery, if such personal delivery is made prior to close of City business hours.
(b) 
If payment is made by United States mail, the payment date will be the: (1) date of cancellation by the United States Postal Service, as reflected on the envelope which contains the payment; or (2) date of receipt by the City for any payment mailed in an envelope which has used a postal meter.
(c) 
Payments received online, via wire, credit card, or ACH, the payment date shall be the posting date provided by the City's bank or the payment processor.
(Prior code § 6013; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
No renewal of a business license certificate shall be issued until payment in full of all delinquent business license taxes, applicable fees and assessments including accrued interest and applicable penalties thereon is received by City.
(b) 
If a partial payment is made or if a taxpayer owes payment for prior fiscal years, the partial payment will be accepted and applied to the oldest year. The difference between the amount paid by the taxpayer and the total amount due shall be treated as a delinquent tax and shall be subject to penalties as set forth in Section 6.04.160.
(c) 
It shall be the responsibility of each business licensee to obtain and pay for renewal business license renewal regardless of whether or not such licensee has received a renewal notice from the City. Any failure to receive such notice shall not affect the applicability of penalties for nonpayment or late payment set forth in Section 6.04.160.
(d) 
All required regulatory approvals must be met prior to the issuance of a business license certificate renewal.
(Prior code § 6014; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
A penalty of twenty percent of the business license taxes and applicable assessments due, shall be levied on all licensees who fail to pay their annual business license certificate renewal prior to September 1st ("delinquent date") and on all new businesses operating in the City who fail to secure a business license within thirty days after opening for business. An additional penalty of ten percent of original unpaid business license taxes and applicable assessments due shall be added for each month or portion thereof that said business license taxes and applicable assessments remains unpaid after the delinquent date. In no case, however, shall the penalty exceed fifty percent of the unpaid business license taxes and applicable assessments due.
(Prior code § 6015; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2126CCS § 2, adopted 6/15/04; Ord. No. 2292CCS § 4, adopted 7/28/09; Ord. No. 2315CCS § 7, adopted 6/22/10; Ord. No. 2797CCS, eff. 1/1/2025)
The Director of Finance, or designee, shall have the authority to settle tax, fee or other accounts payable disputes by reducing or waiving amounts due or establishing payment plans, if such payment plans, reduction or waiver serves to promote the City's fiscal welfare by expeditious payment, enhancing revenue, or otherwise. The Director of Finance, or designee, may promulgate administrative regulations to implement this Section.
(Prior code § 6015a; added by Ord. No. 1573CCS § 1, adopted 2/26/91; amended by Ord. No. 2126CCS § 3, adopted 6/15/04; Ord. No. 2292CCS § 5, adopted 7/28/09; Ord. No. 2797CCS, eff. 1/1/2025)
The Voluntary Disclosure Program (VDP) is a program which allows noncompliant taxpayers to enter into a voluntary disclosure arrangement with the City in which eligible taxpayers may file returns and pay taxes, with reduced or waived taxes, penalties, and interest for prior years without risk of imposition of prosecution in exchange for future tax compliance. The Director of Finance, or designee, may promulgate administrative regulations to implement this Section.
(Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
Subject to subsection (b) below, any action commenced to enforce the payment of any business license tax due, or any other requirement of this Article shall be commenced within four years of the accrual of the cause of action. Any person owing any tax under the provision of this Article shall be liable in an action brought in the name of the City of Santa Monica in any court of competent jurisdiction for recovery of any such amount.
(b) 
An action to collect the business tax and any related penalty and interest must be commenced within four years of the date the business tax becomes delinquent. The statute of limitations on an action by the City to collect unpaid taxes is tolled while the City is unaware of the existence or ongoing activities of a business due to the taxpayer's failure to obtain a business license certificate and pay a business license tax. The statute of limitations is also tolled while an administrative appeal is pending.
(Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
No business license tax applicable assessments or any portion thereof may be refunded after one year from the date of payment thereof.
(b) 
No person or entity shall be entitled to a refund on a business license taxes or applicable assessments after he has engaged in business under the business license.
(c) 
No person or entity shall be entitled to a refund on business license taxes or applicable assessments if such person or entity has any delinquent business license taxes, applicable assessments or fees, including accrued interest or penalties. Any overpayment of business license taxes, applicable assessment and/or fees shall first be applied against any such delinquent fees, interest, or penalties.
(Prior code § 6018; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
The conviction and punishment of any person for transacting any business without a business license certificate shall not excuse or exempt such person from the payment of any business license tax due or unpaid at the time of such conviction, and nothing herein shall prevent a criminal prosecution for any violation of the provisions of the Code.
(Prior code § 6019; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
Filing of Statement. In all cases where the amount of business license tax to be paid by any person is based upon the amount of gross receipts, cost of operations or upon the unit number or flat fee, such person or entity, before obtaining a business license certificate for such business and within sixty days after the beginning of each license period, shall file with the Director of Finance a written statement in the form required by the Director of Finance, supported by such documentation requested by the Director of Finance, showing the total amount of gross receipts or cost of operations during the preceding calendar year, or the unit number used at the date of such statement.
(b) 
Contents of Statement. Any statement filed pursuant to this Section shall be signed and shall contain the following:
I declare, under penalty of making a false declaration under the laws of the State of California, that I am authorized to make this statement and to the best of my knowledge and belief it is a true, correct and complete statement, made in good faith for the period stated.
For making a false statement or declaration the person signing the statement shall be guilty of a misdemeanor.
(c) 
Confidentiality as to Gross Receipts, Business License Taxes, Applicable Assessments and Payment. Information filed pursuant to this Section as to the gross receipts, business license tax, applicable assessments, source of income, profit, losses, expenditures, net worth of a particular person or entity shall be confidential in character and shall not be subject to public inspection. It shall be the duty of the Director of Finance to preserve and keep such gross receipts information so that it may not become known except to the persons charged by law with the administration of this Code.
(d) 
Statement Not Conclusive. No statement filed pursuant to this Section shall be conclusive upon the City or upon any officer thereof as to the matters therein set forth, and the same shall not prejudice the right of the City to recover any amount that may be ascertained to be due from such person in addition to the amount shown by such statement should it be found to be incorrect.
(e) 
Newly Established Business License Certificate. In any case where an original business license certificate is to be issued for a newly established business, the minimum business license tax, applicable assessments and fees applicable for that type of business shall be paid for the initial business license application.
(f) 
Accuracy of Statement Subject to Audit. The correctness of any statement filed pursuant to this Section shall be subject to audit and verification by the Director of Finance or designee, who is hereby authorized and empowered to inspect and audit the books and records of any and all persons licensed to carry on any business specified in this Code. No person licensed to carry on any business specified in this Code shall refuse or fail to allow the Director of Finance, or designee, to inspect and audit such books and records or shall refuse or fail to provide such additional information as requested by the Director of Finance.
(g) 
Failure to File Statement. If any person or entity required to file any statement pursuant to this Section shall fail to do so such person shall be guilty of a violation of this Code.
(h) 
Inspection and Examination of Places of Business. The Director of Finance, or designee, shall have the right to inspect and examine any places of business, including any books and records, of any business subject to the business license tax to ascertain whether the provisions of Article 6 of the Santa Monica Municipal Code have been complied with.
(Prior code § 6020; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2126CCS § 4, adopted 6/15/04; Ord. No. 2292CCS § 6, adopted 7/28/09; Ord. No. 2797CCS, eff. 1/1/2025)
For any business license tax, applicable assessments and fees due on or after July 1st, gross receipts shall be determined based upon gross receipts for the calendar year (January 1st through December 31st) preceding the business license tax period for which the tax is due; EXCEPT that for licensees of newly established businesses that were not in operation during the preceding calendar year, the gross receipts shall be determined based upon gross receipts from the date the business opened through June 30th.
(Prior code § 6022; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
When, by reason of the provisions of the Constitution of the United States or the Constitution of the State of California, the business license tax imposed by this Article cannot be enforced without there being an apportionment according to the amount of business done in the City of Santa Monica, or in the State of California, as the case may be, the Director of Finance, or designee, shall make such rules and regulations for the apportionment of the tax as are necessary or desirable to overcome the constitutional objections. Such rules and regulations shall be approved by the City Attorney prior to becoming effective.
(Prior code § 6023; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
The Director of Finance, or designee, is authorized to negotiate and execute agreements with any business setting forth an applicable formula, schedule, or plan for apportioning current and future business activity subject to the business license tax.
(Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
The City is not required to issue any business license certificate unless all required regulatory approvals have been received by a business.
(b) 
The issuance of a business license certificate, or the payment of any required business license tax, shall not be construed as authorizing the conduct, or continuance, of either:
(1) 
Any illegal business; or
(2) 
A legal business operating in an illegal manner; or
(3) 
A business lacking any required regulatory approvals.
(c) 
Failure to comply with the provisions of this Section shall constitute grounds for the refusal, suspension, or revocation of the business license certificate.
(Ord. No. 2797CCS, eff. 1/1/2025)
Any business license certificate and applicable regulatory permits issued pursuant to this Code may be suspended, revoked or denied by the Director of Finance, or designee, when it shall appear that the business of the person to whom such license was granted has been conducted in a disorderly or improper manner, or in violation of any statute of the State, or ordinance of this City or of this Code, or that the person conducting said business is of an unfit character to conduct the same, or the purpose for which the license has been issued is being abused to the detriment of the public, or is being used for a purpose different from that for which the license was issued. If the business license and applicable regulatory permits of any person shall be so revoked, another such license shall not be granted to such persons within twelve months after the date of such revocation. The Director of Finance, or designee, may promulgate administrative regulations to implement the provision of this Section.
(Prior code § 6024; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2365CCS § 8, adopted 7/26/11; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
Any business license certificate and applicable regulatory permits issued may be cancelled by the Director of Finance, or designee, without hearing, if:
(1) 
The licensee permanently discontinues business operations under the license; or
(2) 
The licensee requests cancellation; or
(3) 
The business operated under the license is abandoned for a period more than three months.
(b) 
Cancellation pursuant to this Section shall be made only after an inspection has been ben conducted or a notice of cancellation has been mailed to the licensee, thirty days has elapsed from the date of such mailing and permittee has failed to respond to said notice with a statement setting forth a valid reason why such permit should not be cancelled.
(Ord. No. 2797CCS, eff. 1/1/2025)
Every person having a business license certificate under the provisions of this Code and carrying on a business at a fixed place of business shall keep such business license certificate posted and exhibited while in force in some conspicuous part of said place of business. Every person having such a business license certificate and not having a fixed place of business, shall carry such business license certificate with him or her at all times while carrying on the business for which the same was granted. Every person having a business license certificate under the provisions of this Code shall produce and exhibit the same whenever requested to do so by any police officer, any person authorized by City to issue, inspect or collect business licenses certificate, or by any person being solicited. Businesses operated without an agent or employee on the premises shall post in a conspicuous place the name, address, and telephone number of the person or persons to be contacted in event of an emergency.
(Prior code § 6025; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
The Director of Finance, or designee, shall conduct a program to audit business license tax returns of businesses operating in the City of Santa Monica. Subject to specific situations covered by Section 6.04.285, the audit may be conducted for three tax periods in addition to the current tax period.
(b) 
If, subsequent to the audit, it is determined that the business has been delinquent or has nonreported or under-reported gross receipts, thereby underpaying business license taxes, the licensee shall pay to the City within ten days of notification of the determination; the amount of tax due, interest from the date the tax was due in the amount determined by the Director of Finance or his or her designee based upon the City's actual rate of return on its invested funds, and a penalty up to the amount of the tax due. Interest shall continue to accrue on the additional tax amount until such amount is paid in full.
(c) 
No person who fails to pay the tax due as required by this Section shall operate a business in the City of Santa Monica.
(d) 
The Director of Finance shall issue forms and instructions and take other actions as are needed to implement this Section. The Director of Finance, or designee, may promulgate administrative regulations to implement the provision of this Section.
(Prior code § 6026; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
When a business has registered with the City but has failed to obtain a business license certificate as required by this Chapter, the City may initiate an audit within five years of the last day of the tax year for which the business license certificate application should have been filed.
(b) 
When a business has failed to obtain or apply for a business license certificate as required by this Chapter and has not registered as a business operating in the City, the City may initiate an audit within ten years of the last day of the tax year for which the business license certificate application should have been filed.
(Ord. No. 2797CCS, eff. 1/1/2025)
The amendments of Chapters 6.04, 6.08 and 6.12 shall not in any manner affect the collection of any taxes, applicable assessments, or fees due prior to the January 1, 2025 effective date of the ordinance codified in this chapter. As to the collection of any such tax, applicable assessment or fee, the Sections in effect prior to the January 1, 2025 shall be deemed to continue in full force and effect.
(Added by Ord. No. 1851CCS § 2, adopted 5/28/96; Ord. No. 2797CCS, eff. 1/1/2025)