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HomeMy WebLinkAboutCC ORD 2003 - 2224ORDINANCE NO. 2003 - 2224 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 6 OF THE NATIONAL CITY MUNICIPAL CODE RELATING TO BUSINESS AND FRANCHISE TAXES BY AMENDING CHAPTERS 6.04 (BUSINESS TAXES) AND 6.20 (RESIDENTIAL RENTAL TAXES), RECODIFYING AND RENUMBERING CHAPTER 6.70 INTO TITLE 4 AS CHAPTER 4.50 RELATING TO BUILDING CONSTRUCTION FEES, AND REPEALING CHAPTERS 6.14 (ADULT MOVIES AND BOOKSTORES), 6.18 (AMUSEMENT ARCADES), 6.22 (AUCTIONS AND AUCTIONEERS), 6.24 (BOWLING ALLEYS), 6.30 (DANCE HALLS), 6.34 (DELIVERY SERVICES), 6.44 (GOING OUT OF BUSINESS SALES), 6.54 (PAWN BROKERS), 6.60 (SWAPMEETS), 6.62 (MOBILE HOME PARKS), 6.64 (MOBILE AMUSEMENT VEHICLES), 6.66 (MOBILE SEARCHLIGHT ADVERTISING), 6.68 (TOWING SERVICES), 6.73 (VIDEO MACHINES), AND AMENDING TITLE 10, BY ADDING CHAPTER 10.57 REGULATING SWAPMEETS BE IT ORDAINED by the City Council of the City of National City that the National City Municipal Code is amended as follows: Section 1. That Title 6 is amended by changing the heading and the table of contents to read as follows: Chapters: 6.04 6.10 6.20 TITLE 6 BUSINESS AND FRANCHISE TAXES Business tax license Cable television Residential rentals Section 2. That Chapter 6.04 is amended in its entirety by amending Sections 6.04.010 through 6.04.250 and adding Sections 6.04.260 through 6.04.430, all to read as follows: 2003 Ordinance Business and Franchise Taxes NCMC Title 6 Sections: I. GENERAL 6.04.010 6.04.020 6.04.030 6.04.040 II. DEFINITIONS 6.04.050 Chapter 6.04 BUSINESS TAX LICENSE Purpose of chapter Effect of other ordinances Recodification Severability Definitions ►II. ADMINISTRATION 6.04.060 6.04.070 6.04.080 6.04.090 6.04.100 6.04.110 6.04.120 6.04.130 6.04.140 6.04.150 6.04.160 6.04.170 Rulemaking authority Statutory exemptions or apportionment Statements and recordkeeping Information confidential Business tax license —Nontransferable —Change of name, location or ownership Replacement of business tax license or decal Effect of dishonored check Cancellation of business tax license and termination of future tax liability Transition and administrative provisions Audit Appeals Revocation of Business Tax License IV. APPLICATION, ISSUANCE AND DISPLAY OF LICENSE 6.04.180 6.04.190 6.04.200 6.04.210 Contents of application Contents of business tax license Posting of business tax license and sticker or decal [Reserved] 2 2003 Ordinance Business and Franchise Taxes NC:MC Title 6 V. CLASSIFICATION OF BUSINESS 6.04.220 6.04.230 6.04.240 6.04.250 Determination of business classification Special classification and administration rules for multiple business activity or location, or both, and warehouses, headquarters and distribution facilities Independent contractors [Reserved] VI. COMPUTATION AND PAYMENT OF TAXES 6.04.260 6.04.270 6.04.280 6.04.290 6.04.300 6.04.310 6.04.320 6.04.330 6.04.340 VII. REFUNDS 6.04.350 6.04.3E Business tax payment —Required Initial business tax Computation of total business tax based on gross receipts Business tax —How and when payable Computation of tax upon failure to file an initial application or a renewal application Business by vehicle —Optional rate Businesses located outside city limits —Optional rate Specific taxes applicable to specific categories of businesses [Reserved] Refunds of overpayments Refund for termination by governmental action VIII. COLLECTION, ENFORCEMENT AND PENALTIES 6.04.370 6.04.380 6.04.390 6.04.400 6.04.410 IX. VIOLATIONS 6.04.420 6.04.430 X. APPENDICES A. B. Delinquent taxes —Penalties —Installment payment Tax deemed debt —Collections Effect of mistakes Enforcement [Reserved] Misuse of business tax license or indicia Penalty for violations GROSS RECEIPTS TAX TABLE FLAT TAX RATES FOR SPECIFIC BUSINESSES 3 2003 Ordinance Business and Franchise Taxes NCMC Title 6 I. GENERAL 6.04.010 Purpose of chapter. A. This chapter is enacted to raise revenue for municipal purposes. The business tax is revenue to the General Fund for the privilege of conducting business within the City of National City and receiving the benefits of various City services. B. This Chapter 6.04 is a recodification of prior regulations governing business taxes. It applies to all persons conducting business within National City. It establishes requirements for payment and procedures for licensing, administration and enforcement of the business tax. 6.04.020 Effect of other ordinances. A. Except as provided in Section 6.04.020B, persons required to pay a business tax for the privilege of conducting business under the provisions of this chapter shall not be relieved from the payment of any tax or permit fee required under any other ordinance of the city, and shall remain subject to the regulatory provisions of all other ordinances. Payment of the business tax and issuance of a business tax license does not authorize the conduct of any business or act in violation of any law or regulation applicable to that business or its location. It shall not be a defense to any act performed in violation of this Municipal Code that a business tax license was issued. B. The Residential Rental Tax that is imposed on owners and operators of residential rental units pursuant to Chapter 6.20 is in lieu of the tax imposed by this Chapter 6.04. Except as noted, the provisions of this Chapter 6.04 shall apply to the administration and enforcement of Chapter 6.20 regarding payment, administration and enforcement of the Residential Rental Tax. 6.04.030 Recodification. A. The amendments made to this Chapter 6.04 by Ordinance No. , 2003 constitute a recodification of previously existing provisions, and a republication of the Schedules and Appendices of or applicable to this Chapter 6.04, together with clarifying amendments regarding business taxes, and shall not be construed as imposing any new or higher tax applicable to businesses in the city. B. Appendix "A" to Ordinance No. 1606 adopted on November 15, 1977 established a tax schedule by industry classification. It is referred to in this Chapter 6.04 as the "business tax rate classification schedule". It maintains existing tax classification schedules based on business classification. A copy is on file in both the Office of the Collector and the City Clerk. C. Appendix "A" to Ordinance 2037 adopted September 1, 1992, established the annual business tax payable based on classification and gross receipts, and is hereby republished and recodified as Appendix A to this Chapter 6.04. It is titled "Gross Receipts Tax Table". D. Appendix "B" is added to this Chapter 6.04 to list the various specific flat rate taxes that were previously adopted by Ordinance Nos. 1012, 1337, 1788, 1606 and 2037 for particular types of businesses, thereby republishing and recodifying those taxes. Appendix "B" is titled "Flat Tax Rate for Specific Businesses." 4 2003 Ordinance Business and Franchise Taxes NJCMC Title 6 6.04.040 Severability. The City Council declares that the invalidity of any section or portion of this ordinance or this chapter 6.04 as recodified by Ordinance 2003- , shall not affect the validity of any other remaining section or portion; that the Council would have adopted each of those remaining portions, notwithstanding any later declared invalidity. If any provision is determined by a court to be irivalid, it shall be severed, or if it can be judicially interpreted in a way that would harmonize it with the remaining provisions, then it may be applied as interpreted, so as to give full purpose, meaning and effect to the remaining provisions of this chapter and ordinance. I1. DEFINITIONS 6.04.050 Definitions. As used in this chapter, the following terms and phrases shall have the meanings ascribed to them in this section: "Adult book store" is as defined in Section 18.69.020. "Adult cabaret" is as defined in Section 18.69.020. "Adult movies" is as defined in Section 18.69.020. "Amusement arcade" is any premises defined in Section 18.04.033 in which any greater number of coin operated amusement devices than those specified in Section 18.16.191 as constituting an incidental use are installed. "Auctions" or "Auctioneer" is as defined by Civil Code Section 1812.601. "Bingo" is as defined in Section 10.27.010. "Bowling alleys" are premises where one or more bowling alleys are installed for the purpose of allowing patrons to participate in the sport of bowling. "Business" shall mean any and all activity engaged in or caused to be engaged in within the city as a principal or as an independent contractor for the purpose of commerce, including, without limitation, any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, the leasing or rental of real estate, and every other kind of activity carried on whether for gain or profit or as a non-profit organization, excluding only the services rendered by an employee to his or her employer. "Business" also includes a home -based occupation or entity described under "person" that markets, sells, designs or creates documents, goods, merchandise, handicrafts or works of art or literature intended for sale. "Business by vehicle" means the driving or operating of any vehicle defined by Vehicle Code Section 670 or any wagon for the purpose of transportation, sale, collection, or delivery of goods, wares, merchandise, or other personal property of any kind from that vehicle or wagon, either as a principal business or in connection with any other business, or in soliciting for work, labor, or services to be performed upon the public streets or private property on or from that vehicle or wagon, or to be performed on goods, wares, merchandise, clothes, or other personal property to be taken for such purpose to a plant or establishment either inside or outside the city through the use of that vehicle or wagon. This definition shall not apply to the delivery of goods by vehicle operating in conjunction with a fixed place of business 5 2003 Ordinance Business and Franchise Taxes NCMC Title 6 within the city for which a business tax has been paid pursuant to the provisions of this Chapter. This definition shall not be construed as imposing a tax upon vehicles, but rather as a method of classification of businesses in which vehicles are used. "Business tax license", "business license" and "tax license" have the sarne meaning and effect as the terms "business license tax", "license tax" and "business license" which were in effect prior to the adoption of Ordinance 2003- These terms are adopted as a redefinition and recodification of an existing tax revenue collection procedure. "Coin operated equipment" or "coin operated amusement device" means a machine, device or equipment through which products, entertainment or services are vended or provided to a customer upon payment by the insertion of a coin, currency or token into a receptacle on the machine, or for which an electronic or mechanical authorization or credit is generated by payment at a central station or to an attendant. The term includes, without limitation, amusement devices, pay telephones, video machines, peep show devices, food and beverage dispensers and laundry equipment. "Collector" means the city official charged by the City Manager, or the City Treasurer when applicable, with the administration and enforcement of this chapter, and his or her authorized deputies or assistants. "Conduct", when used as a verb or in a verb form, means and includes transacting, maintaining, prosecuting, practicing, operating or carrying on. When used as a noun, it means and includes the act by which a transaction, practice or operation is effected. "Conducting business" or "doing business" means a process by which a "person" defined in this Section 6.04.050 attempts, manages, transacts, begins or carries on a "business" within the city or from an address or location in the city to another city or jurisdiction. It can also include business transactions from an address in another jurisdiction to a location or address within the city. Address or location includes an office, warehouse, manufacturing facility, store, any facility or structure by or through which business is conducted or facilitated, as well as a "home business" or "home office" at a residence at that location. Prima facie evidence of conducting business includes, but is not limited to, the use by a person of signs, circulars, cards, telephone book or directory listings, newspapers, advertising, personal solicitation or other representation which lists an address in the city. Any person who owns and rents out commercial real estate in the city, or who holds an active license or permit issued by a governmental agency and practices that trade or profession in National City is also considered to be conducting business in the city. "Contractor" is a person defined by Business and Professions Code Section 7026. (The term "subcontractor" is used to define a person licensed as a contractor who performs work for or under the direction of a general contractor.) It includes "A", "B", "C" and "D" categories of licensed individuals. "Cost of doing business" means an amount which is equivalent to the volume of business performed by or at any local office, facility, agent, broker or employee performing only administrative or management related services in connection with sales or services rendered in another jurisdiction. The amount shall be computed by determining the total cost of maintaining that local office, facility, 6 2003 Ordinance Business and Franchise Taxes NCMC Title 6 agent, broker or employee, and shall include, but not be limited to, the wages, salaries, commissions, bonuses, rent, and/or depreciation, telephone, postage, utilities, janitorial and all other expenses allocated for the maintenance and operation of that office, facility, agent, broker or employee. "Dance halls" are premises, other than an adult cabaret, where patrons are allowed to dance as singles, couples or in a group to the accompaniment of live or recorded music. "Day" or "days", when used to define a period of time for commencement or completion of action shall refer to calendar days, except when otherwise specified. "Disabled veteran" means any honorably discharged member of the Armed Forces who is physically unable to earn a livelihood by manual labor. "Employee" is as defined by Labor Code Sections 3351 and 3352. The indicia of "employee" status includes the principal's control or definition of the hours or terms of labor, the means and manner by which the work is performed or the results accomplished, and the right of discharge. Any person rendering service for another, other than as an independent contractor, is presumed by Labor Code Section 3357 to be an "employee." An employee is a person for whom an employer or principal is required to withhold federal or state tax from compensation for services rendered. (An employee is not required to obtain a business tax license). See also "Independent Contractor." "Garage sale" is as defined in Section 7.21 .120. "Gross receipts" includes the total amounts actually received or receivable during a calendar year 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 or delivery of materials, services, goods, wares or merchandise within the city, or outside the city when the business is located within the city and the proceeds are credited to or for the account of the business located within the City. Included in "gross receipts" shall be all commissions, fees, receipts, receipts from coin operated equipment, 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 sates; 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 refunded either in cash or by credit; 5. Amounts collected or held in trust for others where the business is acting as an agent or trustee, to the extent that such amounts are paid to or for the benefit of those for whom collected (the collector may require proof of payment or disbursement); 6. That portion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed under this chapter, and the general contractor furnishes the collector with 7 2003 Ordinance Business and Franchise Taxes NC MC Title 6 the names and addresses of the subcontractors and the amounts paid each subcontractor; 7. Receipts of refundable deposits, except that refundable deposits forfeited and taken into the income of the business shall not be excluded; 8. As to a real estate agent or broker, the sales price of real estate sold for the account of others, except for that portion which represents commission or other income to the agent or broker; 9. As to a retail gasoline dealer, that portion of his or her receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and previously paid under the provisions of Part 2 of Division 2 of the Revenue and Taxation Code of the state; 10. As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code, if paid by the dealer or collected by him from the consumer or purchaser; 1 1 . As to alcoholic beverage sales, that portion of receipts excluded under Article XX, Section 22 of the California Constitution. "Home business" or "home office" refers to a business, trade or occupation that is conducted from a residential dwelling unit located in National City, and which requires a home occupation permit issued by the Planning Director under the provisions of Title 18 of this code. "Independent contractor", as defined by Labor Code Section 3353, means any person who renders service for a specified compensation for a specific result, and who is under the control of a principal as to the result of work only and not as to the means by which that result is accomplished. An independent contractor may also be defined as a person for whom the principal is required to issue a Form 1099 for compensation for services rendered. "Live ent rtainment" and "adult cabaret" is as defined by Section 18.69.020 and Section 10.73.020. "Mobile amusement vehicle" means a mobile platform upon which is installed one or more amusement devices. "Mobile searchlight advertising" means a vehicle upon which is installed one or more floodlights or high powered searchlights for the purpose of advertising or promoting an event. "Peep show" and "peep show device" is as defined in Section 18.69.020 or Chapter 15.36. "Person" as used in this Chapter 6.04 means and includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, limited liability companies, partnerships of every kind, clubs, business or common law trusts, societies, and natural individuals conducting any business in the city as sole proprietor, or any combination of such entities, other than as an employee. "Residential rental unit" is as defined in Section 6.20.010. "Specialty contractor" is as defined by Business and Professions Code Section 7058. "Sticker" refers to a decal issued for display in a window to evidence the issuance of a business tax license. "Swapmeet" is as defined in Business and Professions Code Section 21661. 8 2003 Ordinance Business and Franchise Taxes NCMC Title 6 "Taxis—Paratransit" is as defined by Chapter 11 .70. "Video machine" means an electronic or mechanical coin operated amusement device, other than a peep show device, which projects upon a screen electronic or computer generated images capable of manipulation by a player for the purpose of amusement of the player or some other person in the vicinity of the device. III. ADMINISTRATION 6.04.060 Rulemakinq authority. The collector is authorized to make all rules, determinations and regulations consistent with the provisions and intent of this chapter as may be necessary and proper to aid in the administration and enforcement of the provisions of this chapter. Copies of those rules shall be maintained in the Office of the Collector, available for public inspection. 6.04.070 Statutory exemptions or apportionment. A. Nothing in this chapter shall be deemed or construed to apply a tax to a Savings and Loan Association, any non-profit corporation or association exempt from income taxation pursuant to Revenue and Taxation Code Section 23701 or Section 501(C) 3 of the Internal Revenue Code, or to any person conducting any business exempt from the payment of business or income taxes by virtue of the Constitution or applicable statutes of the United States or the state. The collector shall administer the provisions of this Chapter 6.04 in a manner consistent with state and federal law regarding avoidance of burdens on interstate or interjurisdictional commerce applicable to a taxpayer or class of taxpayers. The collector may require proof of the payment of taxes to other jurisdictions when necessary to a determination regarding apportionment of taxes applicable to businesses conducting business in more than one jurisdiction. B. Any person claiming exemption from or an apportionment of tax pursuant to this section shall file a sworn statement with the collector stating the facts upon which the exemption or apportionment is claimed, and shall provide a copy of all documents supporting the claim of exemption. In the absence of sufficient evidence substantiating the claim, that person shall be liable for the payment of the taxes imposed by this chapter. C. The collector, upon a proper showing, shall issue a fee exempt license to any person exempt from tax under the provisions of this section without requiring payment of the tax required by this chapter. The exempt license shall expire December 31 st of each year and shall be renewed annually prior to the last day of February of the following year in the manner prescribed for all businesses. D. After giving notice and providing a reasonable opportunity to the person for a hearing, the collector may revoke or disallow any exemption or apportionment granted pursuant to the provisions of this section upon evidence that the business is not entitled to the exemption or apportionment as provided herein. Appeals from that determination may be made in accordance with Section 6.04.160. 9 2003 Ordinance Business and Franchise Taxes N.:MC Title 6 E. In addition to those businesses exempted under Section 6.O4.070A, the following are also exempted from the payment of a business tax under this chapter: 1. Any natural person of the age of sixteen years and under whose annual gross receipts from all businesses in the city are five hundred dollars or less. 2. Any public utility or utility service provider making franchise payments to the city, except to the extent of the value of retail sales or services provided and not covered or excluded within the terms of the franchise agreement. 3. Any person or organization conducting no more than two garage sales per calendar year, each sale not exceeding four (4) consecutive days, provided a garage sale permit pursuant to Section 7.20.120 is first obtained. 4. Any business licensed in another jurisdiction which, incidental to its business activity within that other jurisdiction, only delivers goods or merchandise free of any delivery charge and performs no other service within this jurisdiction. 5. Any occasional vendor selling used merchandise at a licensed swapmeet within the city who rents a stall or booth for not more than two periods of not more than four (4) consecutive days each per calendar year is exempt from payment of business taxes. A business license is required for all other vendors. 6. Any disabled veteran who sells only goods and merchandise owned by him or her as a sole proprietor, and not as an employee of another. 7. Any occasional vendor selling goods designed and made by that vendor as a principal, and not as an employee, at an arts and crafts fair or show for not more than two periods of not more than four (4) consecutive days each, per calendar year, when such vendor is exempted from possessing a resale license issued by the State Board of Equalization. A vendor selling through an employee is not exempt. 6.04.080 Statements and recordkeepinq. A. Statements made by an applicant or taxpayer shall not be conclusive as to the truth of the matters set forth therein, nor • shall filing the same preclude the collector from collecting by appropriate action such sum as is actually due and payable under this chapter. The statement shall be subject to audit and verification. The collector is authorized to examine, audit, and inspect books and records of any business as may be necessary to verify or determine the amount of tax due. B. All persons subject to the provisions of this chapter shall keep complete and accurate records of business transactions, sufficient to establish the business's "gross receipts" or "costs of doing business", as applicable, as defined in Section 6.04.050. The collector may require the business to produce all financial records for examination by the collector. The business shall promptly provide such copies upon request, and, when applicable, may authorize the collector to obtain official copies of the federal or state income tax forms filed for all applicable tax years for comparison, when necessary. Records shall be maintained for a period of at least three calendar years. C. Licensees shall provide the collector with a change of address or phone number, or both, within ten (10) days for any principal whose name and address is required to be filed pursuant to Section 6.O4.18O(A) 9. 10 2003 Ordinance Business and Franchise Taxes NCMC Title 6 D. It is unlawful for any person required to keep financial records under this chapter to fail to keep such records, or to refuse to produce or allow the collector to examine those records at a reasonable time and manner, upon request of the collector. 6.04,090 Information confidential. With the exception of information regarding the business name and address, phone number(s), and names of principals of the business, all other information collected by or disclosed to the collector in the administration of this chapter shall be kept confidential and used for official purposes only. Confidential information shall not be disclosed to any person without an official need and purpose without a subpoena or court order. 6.04.100 Business tax license—Nontransferable—Changd name, location or ownership. A. Business tax licenses are not transferable. The business tax license issued to a business under a particular name or at a particular location may be amended to change the name or location upon application and payment of the fee established in the National City Fee Schedule. B. In the case of change of ownership, a change in the Federal Identification number or, when applicable, the Social Security number of a principal, an application for a new business tax license and payment of tax is required in accordance with Section 6.04.270. The applicant will not be required to deposit the clearance fee if the location remains the same. Prior payments of tax will not be transferred or credited to the account of the new business. 6.04.110 Replacement business tax license or decal. A. A replacement business tax license or decal may be issued by the collector upon payment of a duplicate issuance fee to replace any business tax license which has been lost or destroyed. B. A replacement vehicle decal may be issued to replace any decal which has been lost, stolen or destroyed upon the licensee filing a statement of such fact and paying a replacement fee. 6.04.120 Effect of dishonored check. Any business tax license, regulatory permit, development permit or other license issued by the city is rendered void and invalid if any check tendered in payment is dishonored, and no lawful authority to act under that permit or license is conferred until payment is satisfied in full. 6.04.130 Cancellation of business tax license and termination of future tax liability. A. The tax collector may cancel a business tax license at the request of the business owner provided: 1. The business owner surrenders the business tax license and any applicable stickers or decals; and, 2. All business activity at the licensed premises has stopped. 11 2003 Ordinance Business and Franchise Taxes NC MC Title 6 Liability for any further business taxes will cease if the owner's account is current and cleared once the collector has been notified within the thirty (30) days following the cessation of business that all business activity has ceased. B. Failure to notify the collector within the thirty days creates a presumption that the business has not terminated its operations and therefore remains liable for future business taxes and penalties in accordance with this Chapter 6.04. The collector is authorized to waive this presumption in the case of an itinerant vendor when the collector has determined that the business terminated for bonafide reasons. Liability for taxes will otherwise continue until a taxpayer executes a declaration under penalty of perjury that it has ceased doing business and has not conducted business since the date stated. C. There will be no refund for any portion of the tax paid for the unexpired tax year. D. Unpaid business taxes remain the personal liability of the former principals of the business upon dissolution, each of whom is and shall remain jointly and severally liable for payment. 6.04.140 Transition and administrative provisions. A. The provisions of this Chapter 6.04 will be fully applicable to all businesses on and after its effective date; provided however that any business which has already applied for or paid business taxes for the current calendar year will not be subject to any additional processing requirements. The collector may use existing stocks of forms until depleted in the administration of this Chapter 6.04. B. Pursuant to section 6.04.050, the term "business license" or "license tax," or any similar language appearing on such forms shall be construed to refer to the terms "business tax license" or "business tax" adopted by this ordinance as the context may require. C. The collector shall collect all regulatory permit and license processing fees on behalf of an administering department at the time an applicant presents an application for payment of business tax. Regulatory processing consists of reviews by the Building Department and Fire Department for fire, life safety and occupancy compliance, and the Planning Department for zoning compliance and home occupation permits, when applicable. Police Department or Health Department clearance may be required for a police or health regulated business activity. Processing fees are listed in the National City Fee Schedule. The collector will issue a receipt for the deposit of taxes and fees. A business tax license will not be issued until completion of regulatory processing by administering departments, payment by the taxpayer of any delinquent accounts owed to the City, and determination that the operation of the business would not be in violation of law or the requirements of the Municipal Code. The collector is authorized to coordinate regulatory processing with the payment of business taxes and fees for the issuance of regulatory permits. The applicant remains responsible for completion of forms and delivery to any department or agency for review. 12 2003 Ordinance Business and Franchise Taxes NC MC Title 6 D. The collector will refund the business tax deposited upon written request if the business cannot be lawfully conducted at the proposed location following regulatory compliance review, except that no refund will be made if the business opening date was prior to the application date. Regulatory permit processing fees are not refundable. 6.04.150 Audit. The collector has the authority to examine by audit and any other accepted accounting process the records and practices of any place of business in the city to ascertain whether the provisions of this chapter have been complied with. A business that misstates its gross receipts or basis for tax liability shall be liable for the city's actual costs of audit when the understatement is greater than five -percent (5%) of the actual gross receipts or basis for tax liability, irrespective of whether the understatement results in any change in the tax due. Penalties under Section 6.04.370C shall be collected on the balance of any tax due. 6.04.160 Appeals and dispute resolution. A. Any person aggrieved by any decision of the collector with respect to the determination of tax due or the issuance of or refusal to issue a tax license, exemption certificate or apportionment may file a notice of appeal or request for dispute resolution with the collector no later than 90 days from the date of notification, and shall pay at the time of filing the appeal processing fee prescribed in the National City Fee Schedule. The collector shall notify the person at the time of adverse decision of the right to appeal within the 90-day period or be barred. Failure to timely appeal renders the determination final and no further administrative review shall be required or allowed. The failure to exhaust administrative remedy shall bar judicial review of the final action. B. The appeal shall be forwarded to the City Treasurer who shall then fix a time and place for hearing any appeal. The hearing shall be held no later than thirty (30) days from the date the appeal is received, unless mutually agreed otherwise. The City Treasurer shall give notice of the time and place of hearing by serving it personally or by depositing it in the United States Post Office, postage prepaid, addressed to the applicant's last reported address for business tax purposes. C. The City Treasurer may conduct the examination personally or appoint an examiner to determine all questions raised on appeal. The examiner may be a city employee or any other person who is neutral and unbiased in the matter. The collector and applicant shall each be allowed an opportunity to present relevant evidence. The formal rules of evidence shall not apply to the appeal, and the examiner may consider any evidence that is relevant and of the sort that responsible persons are accustomed to rely upon in the conduct of serious affairs. Hearsay may be used to supplement or explain the evidence. The examiner's determination may not conflict with any substantive provision of this chapter. D. The decision of the City Treasurer shall be based upon the administrative record on appeal and shall constitute the exhaustion of administrative remedy. The City Treasurer shall mail or deliver a written decision to the appellant within fifteen (15) days from receipt of the examiner's report. 13 2003 Ordinance Business and Franciise Taxes NCVAC Title 6 E. The appeal fee shall be refunded only if the appeal is decided wholly in the appellant's favor. 6.04.170 Business Tax License Revocation. A. The collector is authorized to revoke a business tax license for good cause. Good cause exists where the business is operated in violation of state, federal or local law which reasonably and rationally relates to: consumer fraud and protection; fraudulent or unfair business or trade practice; sale of adulterated product or contraband; release of hazardous materials or environmental pollution; or zoning or public health violations which relate to the nature of the business conducted. The order of revocation becomes final thirty (30) days after the issuance of the order, unless appealed. B. Appeals shall be processed in accordance with Section 6.04.160. The time limit for submitting an appeal shall be thirty (30) days from the date a written order of revocation is mailed to the licensee by the collector by both certified mail, return receipt requested, and first-class mail. Receipt of either by the licensee shall constitute receipt of notice. Appeal fees shall not be required for an appeal under this section. C. Conviction of an offense shall not be a prerequisite to revocation of a business tax license under this section. Revocation may be exercised upon the existence of facts demonstrating the occurrence of the violation. D. It is a misdemeanor to continue to operate a business after the business tax license has been revoked and either the appeal period has lapsed or the appeal was denied. IV. APPLICATION, ISSUANCE AND DISPLAY OF LICENSE 6.04.180 Contents of application. A. Every person required to have a license under the provisions of this chapter shall submit a sworn application under penalty of perjury on a form provided by the collector. The application must be complete and accurate and shall be accompanied with payment of application and clearance fees before the collector is required to process it. B. The following information is required: 1. The name of the business. 2. If there is a fixed place of business within the City, the place where such business is to be conducted. 3. The mailing address for business mail. 4. The complete business phone number. 5. A description of the business activity, including the principal product or service. 6. Any state licenses and license number required to conduct a particular type of business, including a Contractor's license. 7. A state resale number, if applicable. 8. A federal employer identification number or social security number. 14 2003 Ordinance Business and Franchise Taxes NCMC Title 6 9. The type of ownership and a list of all owners or officers with corresponding home addresses, home phone numbers, and driver's license number. A photocopy of the applicant's driver's license shall be provided. 10. The name, title and home phone number of persons to contact in case of emergencies for businesses with a fixed location in the city. 11. For existing or transferred businesses whose business tax is levied based on gross receipts by business classification, the exact gross receipt figure from the previous calendar year. A taxpayer may elect to report gross receipts by gross receipts tax bracket, in which case, the gross receipts shall be considered by the collector to be the highest amount in that category. For new businesses, only the business opening date need be supplied. 12. Such other information as may be necessary and required by the collector for the enforcement of the provisions of this chapter, and as may be required by the Franchise Tax Board. 13. Information regarding any claim of exemption from or apportionment of business taxes. 14. A copy of any Fictitious Business Name certificate, when issued, shall be provided to the collector. Note: This is not a precondition to the initial business license. C. The collector is not required to process an incomplete application or issue a license if the applicant refuses to provide necessary information or lacks a permit or state license that is a prerequisite to the conduct of that business. D. Application and clearance fees are those fees established in the National City Fee Schedule. The application fee is a fee charged by the Collector for the initial processing of the license application. The clearance fee is a fee charged for the costs of processing and reviewing applications for zoning, fire, and regulatory clearance by other departments. The application fee, but not the clearance fee, is refundable if the business cannot be licensed after regulatory clearance review. 6.04.190 Contents of business tax license. Except upon finding fraud or error or as provided in Section 6.04.140C, upon the payment of the prescribed tax or a determination of exemption the collector shall then issue a business tax license that shall contain the following information: A. The name of the business for which the certificate is issued which evidences payment of the prescribed taxes or of exemption; B. The address where the business is to be conducted, whether mobile or at a fixed location within the city; C. The date of expiration of the license or exemption; and D. Such other information as may be necessary for the enforcement of the provisions of this chapter. 6.04.200 Posting of business tax license, and sticker or decal. A. Any person conducting business at a fixed place of business in the city shall keep the business tax license posted in a conspicuous place visible to the public upon the premises where such business is conducted. A sticker to be issued by the collector 15 2003 Ordinance Business and Franchise Taxes N:::MC Title 6 shall also be displayed in the front window along the primary street frontage, visible for observation by the collector from the sidewalk. B. Any person not operating at or from a fixed place of business in the city shall keep the business tax license or copy upon his or her person at all times while conducting the business for which it is issued, and shall display the certificate upon request. C. Any person conducting business by vehicle shall keep the business tax license or a copy within each vehicle, and shall affix an identifying decal issued by the collector to each vehicle used in that business. D. The collector will issue identifying decals for vehicles and for coin operated equipment. Each decal is nontransferable and shall be affixed to the vehicle or to the coin operated equipment for which issued. E. It is unlawful to sell or transfer a tax license sticker or decal or to permit its use by another person. 6.04.210 [Reserved] V. CLASSIFICATION OF BUSINESS 6.04.220 Determination of business classification. A. The classification of a particular business shall be that classification set forth in the business tax rate classification schedule designated in Section 6.04.030B. When a particular type of business cannot be located on that schedule, the collector shall assign to it the tax rate classification most closely corresponding to the business's standard industrial classification number ("SIC" number) from the most current Standard Industrial Classification manual published by the U.S. Government, a copy of which shall be kept on file in the collector's office. B. Any business classifiable under two or more classification schedules shall be classified on the basis of the business classification with the highest dollar volume of business; if the business dollar volume is equal, however, it shall be classified on the basis of the business classification which will result in the highest tax. 6.04.230 Special classification and administration rules for multiple business activity, names or location, and warehouses, headquarters and distribution facilities. A. Rule for multiple locations or business names. Except as provided in Section 6.04.330, business taxes are to be calculated on the basis of the tax rate schedule and the gross receipts attributable to the principal classification of the business conducted at each location in the City. If a person conducts business at more than one location, or at a single location but under two or more different names, the business tax will be separately calculated for each business location and for each business name at the same location on the basis of the tax rate schedule and the gross receipts attributable to the principal classification of each business operating at that location under a business name. Separate business tax licenses will be issued for each location and for each separate business name at the same location. 16 2003 Ordinance Business and Franchise Taxes NCMAC Title 6 B. Rules for multiple business activity at a single location. 1. When a person operates two or more businesses or business activities which are similar for tax rate schedule classification purposes (e.g., retail and wholesale auto parts) at the same location under a single business name, the tax will be calculated and administered on the basis of the total gross receipts from all the businesses operated at that single location, using the tax rate classification schedule applicable to that business classification which records the highest of the gross receipts of the respective businesses. 2. If two or more businesses at the same location (address) are not similar within the tax rate classification schedules (e.g., retail auto parts and automobile repair, or restaurant and amusement arcade), each will be classified separately and the tax rate classification schedule applicable to each separate business classification will be applied to the respective gross receipts from each business to calculate the combined taxes due, irrespective of the bookkeeping system used by the owner. The business license may list both business classifications. C. Rules for warehouses and distribution facilities. 1. Except as provided in Section 6.04.230 (C)(3), a warehouse or distribution facility that is an integral part of, but not co -located with, a business located in the city is not a separate place of business, and a separate fee exempt business tax license will be issued for that location. 2. A warehouse or distribution facility located in the city which is incidental to a business located in another jurisdiction, from which no sales are made and any delivery of merchandise is restricted solely to deliveries to the business to which it is incidental, shall pay a business tax calculated from the tax rate schedule that would apply to the principal business classification of the parent business, using the costs of doing business attributable to the warehouse or distribution facility as the measure of gross receipts upon which the tax is computed. 3. Any warehouse or distribution facility located in the city, whether incidental to another business or not, that sells merchandise to any person or delivers any merchandise stored on its premises to any person other than the business to which it is incidental, is conducting business in the city and shall pay a business tax computed on the basis of (A) the gross receipts attributable to that facility from all its sales and delivery activities in the city, or (B) its costs of doing business when gross receipts cannot be determined by the collector. D. Rule for headquarters facility. A business with a principal office in the city that operates manufacturing, sales, warehouse or distribution facilities located in other jurisdictions is considered to conduct business within this city, even though no goods or services are sold, produced or delivered within this city, and it shall be taxed on the basis of its cost of doing business at its principal office within this city as the measure of its gross receipts earned within the city. 6.04.240 Independent contractors. An independent contractor providing services for another business entity in National City shall designate a business address. An independent contractor from outside National City may list its business 17 2003 Ordinance Business and Franchise Taxes NC MC Title 6 address or the business address of the principal for whom professional services are rendered. If the independent contractor's business address is located in a residential zone in National City, then the zoning laws (Title 18) regarding home occupation permits must be satisfied. 6.04.250 [Reserved] VI. COMPUTATION AND PAYMENT OF TAXES 6.04.260 Business tax payment —Required A. Except as provided in Section 6.04.260B, there are imposed upon all persons conducting business in the city business taxes in the amounts hereinafter prescribed. It is unlawful for any person to conduct business in the city without complying with all applicable provisions of this chapter and, except when exempt from tax, paying the applicable tax, B. Any person who is considered to be conducting business by virtue of the prima facie evidence definition defined in Section 6.04.050 is subject to tax until the collector determines otherwise. The collector may require the submission of proof under affidavit executed under penalty of perjury that the person is not conducting a business within the city. C. Licensed Professionals. Each professional licensed by the State, .including without limitation any lawyer, doctor, dentist, health care professional, investment adviser, real estate agent, real estate broker, or insurance broker, who maintains a fixed place of business in the city must pay a business tax as set forth in the tax scher'!'les established under the authority of this chapter. 6.04.270 Initial business tax. Unless exempted or taxed on a flat rate basis pursuant to Section 6.04.310, 6.04.320, or 6.04.330, a person making application for the initial business tax license for a newly established business is required to pay a first year's tax of fifty dollars, the minimum annual tax, prorated by quarter. Upon making application in the following (second) year, that second year's tax due will be based upon the actual gross receipts for the first year. For all future years thereafter, the person will pay the tax based upon the gross receipts for the preceding year. 6.04.280 Computation of total business tax based on gross receipts. A. The total business tax levied by this section shall be determined by the business tax rate classification schedule by business class (see Section 6.04.030B) and the corresponding tax on the gross receipts of that business as set forth in Appendix "A" ("Gross Receipts Tax Table"). Depending on the tax class schedule pertaining to the business classification, the business shall pay a rate of twelve dollars, sixteen dollars, twenty dollars, twenty-four dollars, twenty-eight dollars or thirty- two dollars per ten thousand dollars of gross receipts. The minimum tax for any classification shall be fifty dollars. 18 2003 Ordinance Business and Franchise Taxes NCMC Title 6 B. No tax shall be charged against the gross receipts of any business in excess of twenty-two million dollars per year. C. Businesses for which an alternative flat tax is prescribed by Sections 6.04.310, 6.04.320 or 6.04.330 may elect to pay a tax based on gross receipts prescribed by this section and shall thereafter be taxed on the basis of the gross receipts schedule applicable to the business classification determined by the collector. D. Gross receipts for tax purposes shall either be the actual amount of gross receipts, or the gross receipts bracket in which the actual gross receipts appear, as reported by the taxpayer. 6,04.290 Business tax—I-iowand when payable. A. Unless otherwise provided, annual business taxes under the provisions of this chapter are due and payable on the first day of January of each year and are delinquent on the first day of March. The date of payment is the date the completed application together with payment is received by the collector, provided there is no dishonor of any check tendered in payment. It is the taxpayer's obligation to renew the business tax license when due. Payment by mail is effective only on the date of receipt at the collector's office, and not the date of postmark. B. A courtesy renewal application may be sent by the collector to all businesses holding a prior valid business tax license as of December 31 st of each year. The failure of the collector to provide a courtesy renewal notice or the business's failure to receive the courtesy renewal application shall not relieve the business of its obligation to pay its tax or any penalties that may apply for the failure to pay the tax when due. C. The c^hector shall issue a business tax license to the business upon full payment of the required tax and all penalties due, without dishonor, thereby verifying that the tax has been paid. 6.04.300 Computation of tax upon failure to file an initial application or a renewal application. If any person required to file an initial application or a renewal application fails or refuses to do so within the time period prescribed, the collector shall compute a tax on the estimated annual gross receipts based on all relevant information the collector is able to obtain. If the collector is unable to compute a gross receipt basis because of a lack of cooperation or financial records, then the tax will be estimated on the basis of the highest tax on gross receipts applicable to that category of business on the appropriate schedule. The tax bill shall be sent by mail to the last known business address and shall include the estimated gross base tax due plus any delinquency penalties assessed. The total amount on the billing shall be payable to the city within fifteen calendar days from the date of the deposit of notice in the U.S. Postal Service. Within those fifteen calendar days, the person may submit proof to the collector of the actual gross receipts and pay the tax or the adjustment authorized by the collector. The proposed tax will be due and final if not challenged or appealed pursuant to Section 6.04.160 within the prescribed time. 19 2003 Ordinance Business and Franchise Taxes NCIIC Title 6 6.04.310 Business by vehicle—Optionalrate. A. Except as provided in section 6.04.070E.4, every person not having a fixed place of business within the city and not otherwise designated, who on a regular basis conducts business by vehicle and charges a fee for service, shall pay an annual business tax of sixty-five dollars per vehicle operated within the city, or may make a binding election to pay a business tax measured by business classification and the gross receipts derived from business within the city as set out in Section 6.04.280. B. Any person conducting business by vehicle in the city vending food products or beverages shall pay an annual business tax of two hundred dollars per year per vehicle operated within the city, or may make a binding election to pay a business tax measured by business classification and gross receipts derived from business within the city pursuant to Section 6.04.280. C. Upon payment, identifying vehicle decals will be issued by the collector in a quantity equal to the number of vehicles through which business is conducted. D. Any business by vehicle that operates additional vehicles within the city after payment of annual taxes has been made shall make an additional application to the collector to account for the additional vehicles. After the appropriate tax has been paid for the additional vehicle(s), additional vehicle decals will be issued. E. Taxes for the first year of operation shall not be prorated, unless the annual gross receipt method is elected by the taxpayer. 6.04.320 Businesses located outside city limits —Optional rate. A. Out -of -city contractors. - Except as provided in Section 6.04.320C, and in lieu of a tax based on gross receipts, every state licensed contractor licensed as an A or B contractor conducting business in the city who does not have a fixed place of business in the city shall pay annually a flat tax of two hundred dollars ($200). Every contractor conducting business in this city as a subcontractor or state licensed C or D contractor who does not have a fixed place of business in the city shall pay annually a flat tax of one hundred thirty-five dollars ($135). Any contractor may make a binding election to pay a business tax measured by classification and gross receipts derived from business within the city pursuant to Section 6.04.280. Penalties shall accrue at the rate set forth in Section 6.04.370D. A contractor who commences business during the last quarter of a calendar year shall pay only twenty-five percent (25%) of the initial installment at the time of application if a flat tax is elected, and will be subject to normal tax the years following. B. Every other person not having a fixed place of business in the city who conducts business in the city and is not otherwise subject to a tax by any of the other sections of this chapter shall pay a business tax of the greater of: (a) sixty- five dollars per year; or (b) a tax calculated at the same rate prescribed herein for the same type of business having a fixed place of business within National City based on the gross receipts earned within National City or 12% of gross receipts from all sources within California where the amount of gross receipts earned within National City cannot readily be calculated or otherwise be determined by the collector. 20 2003 Ordinance Business and Franchise Taxes NCMC Title 6 C. In order to promote public safety, the City Council will allow any out - of -city contractor installing a work of improvement that does not exceed five hundred dollars ($500) materials and labor, inclusive, to pay a tax of ten dollars ($10) for a one -day tax certificate, in addition to any applicable building or engineering permit fees. This certificate shall not be available during any calendar year when the contractor performs any single job exceeding five hundred dollars ($500), or has performed two (2) jobs each not exceeding five hundred dollars ($500). The applicant shall make his or her declaration under penalty of perjury on a form provided by the Collector to the Building and Safety Director or City Engineer in conjunction with the permit application for the work of improvement. A receipt showing proof of payment shall qualify as the business license. D. First year's taxes will not be prorated, except as provided in Section 6.04.320A. 6.04.330 Specific taxes applicable to specific categories of businesses. A. Taxes applicable to specific categories of businesses previously established in Title 6 by Ordinances 708, 1048, 1231, 1699, 1788 or 2037 are recodified and summarized in Appendix B to this chapter. Recodification in Appendix B does not constitute enactment of a new tax. B. Video machines. A business which also operates video machines on its premises shall pay in addition to any tax based on gross receipts for its principal business an additional tax of $55.00 per machine, not to exceed a total of $4,500 annually for all video machines. An identifying decal shall be affixed to each machine, unless the business tax license specifies the number of machines for which tax has been paid and the number of machines installed does not exceed the number specified on the business tax license (thereby allowing for replacement and maintenance).. C. Amusement arcades. Amusement arcades shall be taxed on a flat tax basis of $265 per year and shall pay the additional tax specified in Section 6.04.330E for each video machine installed on the premises, not to exceed $4,500.00 annually for all machines. D. Any business listed in this section or Appendix B may make a binding election to pay its tax on the basis of total gross receipts and the classification schedule determined by the collector, including revenues from coin operated equipment or amusement devices, instead of this section, and such election shall be thereafter binding upon that business. E. A swap meet shall be taxed at the rate of $6,000 per year instead of gross receipts, unless it makes a binding election to pay its tax on the basis of total gross receipts and the classification schedule determined by the collector. F. A pawnshop shall be taxed at the rate of $400 per year instead of gross receipts, unless it makes a binding election to pay its tax on the basis of total gross receipts and the classification schedule determined by the collector. 6.04.340 [Reserved] 21 2003 Ordinance Business and Franchise Taxes NCMC Title 6 VII. REFUNDS 6.04.350 Refunds of overpayments. Claims for refund must be filed on forms in the manner prescribed by the collector. No refund of an overpayment of taxes imposed by this chapter shall be allowed in whole or in part unless a written claim for refund is filed with the collector within one year from the last day of the calendar month following the period for which the overpayment was made. The burden of proof shall be upon the taxpayer to establish the overpayment. If the collector determines that an overpayment was made, the collector shall refund the amount overpaid. Application and processing fees are not refundable. 6.04.360 Refund for termination by governmental action. Upon written application, the collector is authorized to refund any business tax collected when the business is terminated through condemnation or eminent domain by any agency of local, county, state or national governments. VIII. COLLECTION, ENFORCEMENT AND PENALTIES 6.04.370 Delinquent taxes and charges—Penalties—Installmeptyment. A. Except as provided in Section 6.04.370D or E, the collector, upon failure to pay a tax when due, shall add a penalty of twenty percent of the tax due on the first day of March and each first day of each month thereafter, provided that the amount of penalty added shall not exceed one hundred percent of the tax due for each year or portion thereof that the tax was unpaid. B. 1. No business tax license shall be issued or reissued to any person who, at the time of application, is indebted to the city for delinquent business taxes, fees or sewer charges, unless that person enters into a written agreement with the collector to pay all delinquent taxes or charges, and interest and penalties due in monthly installments, or more often, over a period not to exceed one year. 2. The agreement shall acknowledge the obligation is a debt owed to the city. Upon failure to make timely payment of any installment, the entire amount unpaid, including penalties and interest, shall become immediately due and payable. If legal action is brought by the city to enforce collection of any amount included in the agreement, that person shall pay all costs of suit incurred by the city or its assignee, including reasonable attorney's fees. The execution of an agreement shall not exonerate previously accrued penalties, but no further penalties or interest shall accrue on amounts included in the agreement during such time as the person is not in breach of the agreement. If, however, a default in payment occurs, then additional penalties and interest shall reattach back to the date of execution of the agreement and become due and payable. C. Notwithstanding any other provision of this code, any person who misstates or falsifies gross receipts for taxation purposes or the nature of the business for classification purposes shall pay a penalty of 100% of the balance of tax due for each year of misstatement, in addition to the balance of the actual taxes due. Payment of the penalty shall not discharge the taxpayer from liability from civil or criminal proceedings, if applicable. 22 2003 Ordinance Business and Franchise Taxes NCMC Title 6 D. Any person who fails to apply to the collector for the issuance of an initial business tax license and pay the prescribed tax within 30 calendar days from first beginning business is subject to a penalty of 50% plus 20% per month after the first thirty days has elapsed, not to exceed 100 percent of the total tax due for the first year. The total tax will be computed on the basis of the gross receipts for the calendar year. Until payment is made in full, that person remains subject to the provisions of Section 6.04.380 regarding the involuntary cessation of business. E. -Neither a penalty nor the provisions of Section 6.04.300 will be applicable to (1) any licensed professional, such as an architect, engineer, consultant, or attorney who does not maintain an office in National City but is called upon to provide a single project service within National City, or (2) to any swap meet vendor or occasional contractor or vendor who is no longer exempted by Section 6.04.O70E(5) or (7) or by Section 6.04.32OC, provided that that person pays the business tax within the first thirty days following the commencement of business in the City for that calendar year. If the tax is not paid within thirty days, a penalty will accrue from the date of commencement of business pursuant to Section 6.O4.37OD. After payment of taxes due for the applicable calendar year, should the project continue into the next calendar year and be completed within the first two months of that following year, the collector is authorized to waive collection of tax for that following year. 6.04.380 Tax deemed debt —Collections A. The amount of any tax and any fees, charges or penalty imposed by the provisions of this chapter is a debt owed to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount due. The collector, with the concurrence of the City Attorney, is authorized to compromise or adjust claims for back taxes that extend beyond the current year plus three prior years when it is in the best interests of the City; provided, however, that such authority shall not include compromising claims for any taxes due for continuing in business following the failure to renew a previously issued business tax license. B. The collector shall set off any refunds, payments or credits owing to the taxpayer by the city against unpaid taxes and charges, and may require a business to cease business or remove equipment through which the business is conducted if the tax is not fully paid. Payments shall be applied first to satisfy the payment of the oldest tax and any penalties outstanding before being applied to satisfaction of later or current taxes. Upon notification by the collector, city departments shall withhold progress payments or payments for goods or services when the vendor or supplier has failed to pay taxes or penalties, or both, required under this chapter until the debt is satisfied. C. Upon notification by the collector, other departments shall withhold development and building permits, except those permits necessary to correct code violations, until all delinquent taxes are paid. Administering departments will withhold related permits until notified otherwise by the collector. D. The collector may request the city attorney to obtain a civil injunction or issue a criminal complaint if the business refuses to comply with this Chapter 6.04 or pay taxes. The collector is authorized to collect the tax due by the 23 2003 Ordinance Business and Franchise Taxes NCMC Title 6 issuance of an order of execution directed to the Marshal of San Diego authorizing a till -tap or other collection of monies due from the delinquent taxpayer, until the delinquency is satisfied. E. The conviction of a person for conducting any business without first paying the tax due does not exonerate that person from the payment of any tax due or still unpaid at the time of conviction. Late payment shall not prevent a criminal prosecution of any violation of the provisions of this chapter. All civil, administrative and criminal remedies prescribed are cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for enforcing the provisions of this chapter. F. Neither the adoption of the ordinance codified in this chapter nor the superseding of any portion of any other ordinance of the city or the Municipal Code shall in any manner be construed to affect prosecution for violations committed prior to the date of adoption, nor be construed as a waiver of any license required for or any penal provisions applicable to any such violation, nor shall it affect the validity of any bond or cash deposit required by any prior ordinance to be posted, filed, or deposited, and all rights and obligations thereby conferred shall continue in full force and effect. 6.04.390 Effect of mistakes. Any mistake by the collector in computing or collecting any tax prescribed in this chapter shall not preclude collection by the city of the amount actually due, together with costs of collection, including reasonable attorney's fees fixed by the court, nor shall mistake preclude the prosecution of any person for violation of any provision of this chapter. 6.04.400 'nforcement. A. The collector and each cede compliance officer, public officer or police officer shall have the power and authority to enter any place of business free of charge at any reasonable time to demand production of its business tax license. It shall be the duty of any code compliance officer or building inspector conducting an inspection of any business premises to also require the owner or proprietor of an inspected property to produce proof of business license and to report violations to the collector. The collector will be responsible for any follow-up investigation and enforcement and shall notify the appropriate enforcement officer of any apparent code violation observed during inspections by the collector. B. The collector may require the production of any records of the taxpayer necessary to verify the accuracy of any business tax license issued or business tax paid, upon at least twenty-four (24) hours' prior notice. Records shall be made available at the taxpayer's place of business, or be delivered to the collector's office upon mutual agreement. In addition to any other remedies, the collector is authorized to assess a $50O administrative penalty against any taxpayer who refuses to produce such records following reasonable request by the collector. Procedures for appeal are as set forth in section 6.04.160. C. Each department of the city issuing development or building permits, public contracts or purchases shall require the production of a valid business tax license prior to the issuance of any contract to a vendor or a development permit to 24 2003 Ordinance Business and Franchise Taxes NCMC Title 6 a licensed contractor, and upon notification by the collector shall not issue any development permit or building permit - except those reasonably necessary to correct code violations - until all outstanding tax delinquencies are satisfied. D. As an aid in enforcement of the provisions of this chapter with respect to construction contractors and subcontractors, any person applying for any building or engineering permit or requesting final inspection of any construction project shall furnish the collector with a written list of the names and addresses of all contractors, subcontractors and material supply people engaged in working on the project. E. The collector is authorized to require the owner or operator of a commercial or industrial property (other than a residential rental property) in National City to provide a current tenant list or mail box rental list and information regarding the commencement of each tenancy or mail box rental. It is unlawful for an owner or operator to refuse or fail to provide this information upon the reasonable request of the collector. F. As a condition of a Temporary Use Permit issued under Chapter 15.60, an itinerant business operating in National City shall provide information and records to the collector on sales transactions for which sales taxes are collected, and shall verify its gross receipts upon which the business tax is based. G. The collector and designees with the duty to enforce this Chapter are authorized to arrest persons without a warrant pursuant to Penal Code Section 836.5 whenever the person to be arrested has committed a violation of the provisions of this Chapter 6.04 in the collector's or designee's presence. When the person arrested does not demand to be taken before a magistrate, a written notice to appear shall be prepared and the person released on his or her promise to appear as prescribed ty the Penal Code of the State of California (commencing v.ith Section 853.6). H. The collector is further authorized to issue administrative citations pursuant to Chapter 1 .44 of this code without prior notification in the enforcement of this Chapter 6.04, and to impose administrative penalties for violations of this Chapter 6.04. 6.04.410 [Reserved] IX. VIOLATIONS 6.04.420 Misuse of business tax license or indicia. A. It is unlawful for any person holding a business tax license required by this Chapter to permit any other person to use the business tax license, sticker or decal, or the licensea premises or the licensed person's name for the purpose of evading payment of any business tax or any other requirement of this Chapter. Violation will also result in cancellation of the business tax license. B. It is unlawful to reproduce, duplicate, copy or alter any original business tax license, decal or sticker to falsely represent that an original business tax license is valid or that the appropriate tax has been paid. 25 2003 Ordinance Business and Franchise Taxes NC MC Title 6 C. Every person conducting business by vehicle shall keep the tax license or a photocopy within each vehicle, and shall affix an identifying decal to each vehicle used in that business. D. It is unlawful for any person subject to this chapter to drive, operate or use, or cause to be driven, operated, or used, any vehicle in the conduct of a business by vehicle without a decal being attached to the vehicle as required in this chapter, or to remove, deface or cover up the decal, or place the decal upon any vehicle other than a vehicle used in its business. 6.04.430 Penalty for violations. A. It is unlawful to violate any of the mandatory provisions or prohibitions of this chapter or to knowingly or intentionally misrepresent to any officer or employee of this city any material fact in connection with the administration or collection of taxes pursuant to this Chapter 6.04. B. Each violation of any of the mandatory provisions or prohibitions of this chapter is a misdemeanor, punishable by a fine of $ 1,000 or imprisonment for six months, or both. Each day a violation continues shall constitute a separate violation for which the violator may be separately charged. (APPENDIXES A and B to CHAPTER 6.04 - next page) 26 2003 Ordinance Business and Franchise Taxes NCMC Title 6 CHAPTER 6.04 - APPENDIX A GROSS RECEIPTS TAX TABLE TAXABLE GROSS BUSINESS CLASSIFICATION RECEIPTS BRACKET 1 2 3 4 5 6. 01 4,999; 5,000 19,999' 20,000. 50,000 100,000 200,000' 300,000 49,999 50 50 50 50 50 50! 50 50 50 501 50 50 50 5C111 60 99,999' 50 50 52 60 199,9991 299,9991 399,999 400,000 r 500,000 600,0001 699,999 700,000 799,999 800,000 899,9991 900,000 999,999 1,000,000 1,099,999 1,100,000 1,199,999 1,200,000, 1,299,999, 1,300,000I 1,399,999 1,400,000! 1,499,999 50 58 70. 64 80 96 81 121 731 97 84' 113 96 1281 107 143' 118! 157 129: 172 139 1851 149 199� 159' 212 1,500,000 1,999,999 2,000,000 2,500,000 3,000,000 50 50. 60 499,999. 599,999 2,499,9991 2,999,999 3,499,999 168 224; 177 2361 296 222 296[ 370 266' 355 444 3101 413; 516 101 121 141 160 179 1.97 215' 2321 2481 265 280 145 169 192 214 236 257 278 298 318 336 355 50 50 80 74 86 444 533 619 352 469 586 703 81 93. 112 128. 141 161 169 194 197 225, 224 256! 250 286. 275 315 300 343 324 371 3,500,000 3,999,999 392 523 653 784 1 4,000,000 4,999,999 470 627 783 940, 1,096 1,2531 5,000,000' 5,999,999 545 727. 908 1,090 6,000,000 7,999,999 688 918 1,147 1,376 1,606; 1,835 8,000,000 10,999,999 894 1,192T 1,490 1,788 2,0861 2,384 11,000,000 13,999,999 1,091 1,455 1,819 2,183 2,547' 2,910' 1 14,000,000 15,999,999 1,217 1,623 2,0291 2,434 2,840' 3,246 16,000,000 17,999,999 1,343 1,791 2,238 2,686 3,133 3,581 18,000,000 19,999,999 1,4691_ 1,958 2,448 2,937 3,427 3,916' 20,000,000 21,999,999 1,594 2,126i 2,657 3,189 3,7201 4,2521 22,000,000 AND ABOVE 1,720: 2,2941 2,867 3,440 4,014� 4,587: 348 398 371 423, 392 449 414 473 518 592 621, 710 723 826 820 938 915 1,045 1,271 1,453 27 2003 Ordinance Business and Franchise Taxes N.MC Title 6 CHAPTER 6.04 - APPENDIX B FLAT TAX RATES FOR SPECIFIC BUSINESSES TYPE OF BUSINESS ANNUAL TAX RATE OTHER TAX RATE ADOPTED BY ORDINANCE SECTION NUMBER Adult Book Store $535 92-2037 8 Adult Movie Theater $535 92-2037 8 Amusement Arcade $265 92-2037 9 Auctioneer $135 92-2037 11 1 Bowling Alleys $265 $5/quarter/alley 92-2037 12 (Standard sized) Bowling Alleys $25 $5/quarter/alley 1012 2 (Substandard sized) Dance Hall $805 92-2037 13 Delivery by Vehicle $65 92-2037 6 Food Vending Vehicle $200 92-2037 6 Fortune Telling, etc. $265 92-2037 15 Mobile Amusement Vehicle $65 92-2037 18 Mobile Searchlight Advertising $135 92-2037 19 Outside Contractors (A & B licensed) $200 92-2037 7 Outside Contractors (C licensed) $135 92-2037 7 Pawnbroker $400 92-2037 16 Peep Shows and Peep Show !Devices --- $10/quarter/device 1 1337 3 Shooting Galleries $265 9 Swapmeet $6,000 92-2037 17 Taxis -- Paratransit $65 92-2037 14 Video Machines 855 per 1 machine 82-1788 ---- t 28 2003 Ordinance Business and Franchise Taxes NCMC Title 6 Section 3. That Chapter 6.14 is repealed. Section 4. That Chapter 6.18 is repealed. Section 5. That Chapter 6.20 is amended by amending the Table of Contents and Sections 6.20.010, 6.20.020 and 6.20.040, and adding Section 6.20.050 to read as follows: 6.20.010 Residential rental units defined. "Residential rental unit" means any room or combination of rooms within a building or a trailer coach rented out to serve as a single-family dwelling to be occupied by an individual or group of individuals. 6.20.020 Minimum license fee. Any person, firm, corporation, partnership or other entity owning residential rental units in the city shall pay a license or tax fee based on the number of units owned, in lieu of a business tax under Chapter 6.04, as follows: A. Persons owning one to four units at one location or a total of one to four units at various locations shall pay fifty dollars per unit for the first unit, and fifteen dollars per unit for each additional unit. B. Persons owning a total of five or more units at various locations, but fewer than thirty-one units at any one location, shall pay a license fee or tax of fifty dollars per unit for the first unit, and fifteen dollars per unit for each additional unit, or may, at his or her option, pay a base tax of seventy-five dollars in addition to the sum of the tax set forth in the tax table in Appendix A based on gross receipts (gross rents) derived h" such person from all units owned by the person within the city. The gross tax r4.e is one tenth of one percent. C. Persons owning thirty-one to sixty units at one location shall, for each such location, pay a base tax of one hundred dollars in addition to the sum of the tax set forth in the tax table in Appendix A based on gross receipts (gross rents) derived by such person from each complex owned by the person within the city. The gross tax rate is one tenth of one percent. A separate calculation and payment must be provided for each location of rental properties. D. Persons owning sixty-one or more units at one location shall, for each such location, pay a base tax of one hundred fifty dollars in addition to the sum of the tax set forth in the tax table in Appendix A based on gross receipts (gross rents) derived by such person from each complex owned by the person within the city. The gross tax rate is one tenth of one percent. A separate calculation and payment must be provided for each location of rental properties. 6.20.040 Exemptions. A. No tax shall be imposed on a residential rental unit in any of the following situations: 1. The unit is the primary residence of the property owner for at least six months of the year and no portion of the residence is rented, leased or sublet for any portion of the year; 29 2003 Ordinance Business and Franchise Taxes NCMC Title 6 2. The unit is occupied by a family member, is rented at less than current owner expense, and is declared as family occupied on the owner's county property tax declaration or federal income tax return. "Current owner expense" is defined to include mortgage payments, property taxes, association fees, as- sessments, property insurance, and utilities; 3. The unit is not available for rent for any period of time; 4. The unit is directly owned by a federal, state, county, local or special district governmental agency; 5. The unit is unoccupied and is under construction and will not be occupied for any portion of the tax year; or 6. The unit sold and escrow closed during the first two months of the taxable year. B. Proof of exemption eligibility will be required for certain exemptions and may be different for each exemption claimed. Exemption eligibility is only good for one year and must be renewed each taxable year by the tax due date or be subject to an administration fee. 6.20.050 Administration and enforcement. A. The Finance Director is responsible for the administration of this Chapter. The provisions of Chapter 6.04 pertaining to the application and issuance of business licenses and the collection, enforcement and penalties for delinquent taxes shall be utilized in the administration of this Chapter 6.20. B. The Finance Director shall issue a residential rental tax license upon payment by the person or entity liable for the taxes described in this Chapter 6.20, commencing in calendar year 2004. C. It is unlawful to violat3 any of the mandatory provisions or prohibitions of this chapter or to knowingly or intentionally misrepresent to any officer or employee of this city any material fact in connection with the administration or collection of taxes pursuant to this Chapter 6.20. Each violation of any of the mandatory provisions or prohibitions of this chapter is a misdemeanor, punishable by a fine of $1,000 or imprisonment for six months, or both. Each day a violation continues shall constitute a separate violation for which the violator may be separately charged. (APPENDIX A TO CHAPTER 6.204 — next page) 30 2003 Ordinance Business and Franchise Taxes NCMC Title 6 UNITS 1 to 4 5 to 30 31 to 60 61 + $ 20,000 $ 100,000 $ 300,000 $ 600,000 $ 900,000 $1, 500, 000 $2,500,000 $3,500,000 $4,500,000 GROSS to to to to to to to to + CHAPTER 6.20 - APPENDIX A BASE $ 50.00/$15.00 $ 75.00 $100.00 $150.00 $ 99,999 $ 299,999 $ 599,999 $ 899,999 $1,499,999 $2,499,999 $3,499,999 $4,499,999 + gross rate + gross rate + gross rate $ 60.00 $ 200.00 $ 450.00 $ 750.00 $1,175.00 $ 2 , 000.00 $3,000.00 $4,000.00 $5,000.00 TAX base base base base base base base base base 31 2003 Ordinance Business and Franchise Taxes NCMC Title 6 Section 6. That Chapter 6.22 is repealed. Section 7. That Chapter 6.24 is repealed. Section 8. That Chapter 6.30 is repealed. Section 9. That Chapter 6.34 is repealed. Section 10. That Chapter 6.44 is repealed. Section 1 1 . That Chapter 6.54 is repealed. Section 12. That Chapter 6.60 is repealed. Section 13. That Chapter 6.62 is repealed. Section 14. That Chapter 6.64 is repealed. Section 15. That Chapter 6.66 is repealed. Section 16. That Chapter 6.68 is repealed. Section 17. That Chapter 6.70 is renumbered and recodified in Title 4 as Chapter 4.50, that Title 4 is thereby amended by adding Chapter 4.50 to read "Chapter 4.50 Building Construction Fees", and the sections are thereby renumbered within those respective chapters as follows: Section Renumbered as 6.70.010 4.50.010 6.70.020 4.50.020 6.70.030 4.50.030 6.70.040 4.50.040 6.70.050 4.50.050 Section 18. That Chapter 6.73 is repealed. Section 19. That Title 10 is amended by adding Chapter 10.57 regulating swapmeets, to read as follows: 32 2003 Ordinance Business and Franchise Taxes NCMC Title 6 Sections: 10.57.010 10.57.020 10.57.030 10.57.040 10.57.050 10.57.060 10.57.070 10.57.080 10.57.090 10.57.100 10.57.110 10.57.120 Chapter 10.57 SWAPMEETS Definitions and designation Prohibited items Participants informed of prohibited items Suspension or revocation of license Vendor to obtain license Occasional sales Control of the sale of certain goods Operator's records Premises --paving requirements Premises --fencing requirements Premises--restroom requirements Premises --remaining overnight prohibited 10.57.010 Definitions and designation. As used in this chapter, the terms "swapmeet operator," "vendor" and "swapmeet" shall have the meanings ascribed to them by Business and Professions Code Section 21661. A swapmeet is designated as a regulated activity in order to ensure legitimate business practice that does not facilitate the possession or transfer of stolen property. 10.57.020 Prohibited items. It is unlawful for any vendor in a swapmeet to exchange, barter, trade or sell, the following items of oersonal property: firearms, ammunition, explosives, animals and livestock, any item of personal property from which the serial number or identifying number has been removed, or any other item of personal property which is prohibited from being exchanged, bartered, traded or sold by ordinance or resolution or any laws of the city, the county, or the state. 10.57.030 Participants informed of prohibited items. The swapmeet operator shall take the following steps to notify each vendor of the prohibitions against selling property designated in Section 10.57.020: A. The swapmeet operator shall install and maintain a public address system of sufficient volume to be heard in all parts of the licensed premises during the conduct of the swapmeet. B. The swapmeet operator shall install and maintain signs in the English and Spanish language announcing the prohibitions of Section 10.57.020. One sign shall be installed for every twenty-five vending sites within the premises. Each sign shall be of a minimum dimension of three feet by four feet. There shall also be installed a sign at each entrance to the licensed premises stating that the sale of property forbidden by Section 10.57.020 is illegal. C. The swapmeet operator shall give to each vendor entering the premises written notice of the restrictions of this chapter. 33 2003 Ordinance Business and Franchise Taxes MCMC Title 6 D. The swapmeet operator shall make oral announcements in the English and Spanish languages of the restrictions of this chapter through the use of the required public address system. Announcements shall be made at least once every sixty minutes during the operation of a swapmeet as defined in this chapter. E. The swapmeet operator or agent shall maintain a constant foot patrol of the licensed premises to observe violations of this chapter. The foot patrol shall be of sufficient frequency that each vending site is passed and observed by the patrolman at least once every sixty minutes during the operation of a swapmeet as defined in this chapter. F. Upon observing a violation of this chapter the swapmeet operator or agent shall notify the National City police department and report the violation. 10.57.040 Suspension or revocation of license. Violation of any provision of this chapter by any person, firm or corporation shall be proper ground for suspension or revocation of the business tax license issued pursuant to Chapter 6.04. 10.57.050 Vendor to obtain business tax license. Except as provided in Section 10.57.060, every vendor selling new merchandise, every vendor selling used merchandise more frequently than twice each calendar year, and every vendor advertising for products or services at a swapmeet shall obtain a tax license from the city pursuant to Chapter 6.04 for his or her operations at a swapmeet. The vendor may give the address of the swapmeet at which he or she operates as the business address for the purpose of obtaining the tax certificate. The vendor must provide a mailing address of the business on the application, which may be his or her home address and home telephone number if there is no fixed place of business. 10.57.0e i Occasional sales. Vendors engaging in the occasional or infrequent sale of used goods at a swapmeet, which is defined as two or less sales per calendar year, each sale not exceeding four (4) consecutive days, are not required to pay a city business tax prior to operating at a swapmeet. 10.57.070 Control of the sale of certain goods. Each vendor shall maintain records and comply with Business and Professions Code Sections 21663 through 21666. Records shall be provided to the Chief of Police, as required 10.57.080 Operator's records. The operator of a swapmeet shall comply with Business and Professions Code Sections 21664, 21665 and 21666. Records shall be provided to the Chief of Police as required. 10.57.90 Premises --paving requirements. Portions of real property to be used by a swapmeet operator for conducting a swapmeet sales area, parking, and for the foot travel of participants, shall be paved with surfacing approved by the director of public works prior to that real property being utilized for the conducting of a swapmeet. Nothing in this section shall be construed to prevent an operator from installing suitable landscaping or lawns in lieu of paving any of the areas subject to this section. 34 2003 Ordinance Business and Franchise Taxes NC MC Title 6 10.57.100 Premises --fencing requirements. The portions of real property used for the swapmeet shall be fenced with fencing not less than six feet in height, constructed of chain link or other open type of material that does not materially obscure visibility through such fencing. 10.57.110 Premises--restroom requirements. All parcels of real property used for the conducting of swapmeets shall be serviced by adequate restroorn facilities. 10.57.120 Premises--remaininq overnight prohibited. No person shall remain overnight on premises used for the swapmeet. Section 20. Severability. The City Council declares that the invalidity of any section or portion of this ordinance shall not affect the validity of any other remaining section or portion; that the Council would have adopted each of those remaining portions or section, notwithstanding any later declared invalidity. If any provision is determined to be invalid, it may either be severed or judicially interpreted in a way that harmonizes it with the remaining provisions and be applied so as to give full purpose, meaning and effect to the remaining provisions of this ordinance. Section 21. Non -tax increase. The City Council declares that the provisions of this ordinance do not constitute the imposition of a new tax or increase an existing tax, and for that reason this ordinance is exempt from the provisions of Proposition 218 and may therefore be adopted without submission to a vote of the electorate. Section 22. The City Clerk shall insert into the blank spaces provided the ordinance number i.jsigned to this Ordinance. PASSED and ADOPTED this 3RD day of ATTEST: i Mi. ael R. all City Clerk APPROVED AS TO FORM: 1 George H. Eiser, III City Attorney 35 2003 Ordinance JUNE , 2003. Business and Franchise Taxes NCMC: Title 6 Passed and adopted by the Council of the City of National City, Califomia, on June 3, 2003, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Natividad, Parra, Ungab. Nays: None. Absent: Councilmember Morrison. Abstain: None. AUTHENTICATED BY: By: NICK INZUNZA Mayor of the City of National City, California 11/1/e/4 City Cle of the City of National City, California Deputy I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven calendar days had elapsed between the day of its introduction and the day of its final passage, to wit, on May 20, 2003, and on June 3, 2003. I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that the reading of said ordinance in full was dispensed with by a vote of not Tess than a majority of the members elected to the Council and that there was available for the consideration of each member of the Council and the public prior to the day of its passage a written or printed copy of said ordinance. I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of ORDINANCE NO. 2003-2224 of the City Council of the City of National City, passed and adopted by the Council of said City on June 3, 2003. By: City Clerk of the City of National City, California Deputy