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HomeMy WebLinkAboutOrdinances 1921 03/15/1993`.. ..:w ~7 ~R 1 5 994 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 ORDINANCE NO_ 1921 N.C_S_ Introduced by Seconded by Vice Mayer Sobel C'ar~1P Rarlas AN URGENCY ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA REPEALING CHAPTERS 6.04, 6.08, 6.28 AND 6.36 OF TITLE 6 "BUSINESS REGULATIONS AND LICENSES" AND ADDING CHAPTER 6.01 "BUSINESS TAX"; AMENDING SECTIONS 6.32.010 AND 6.32.080 OF CHAPTER 6.32 "PEDDLERS AND SOLICITORS" OF TITLE 6 "BUSINESS REGULATIONS AND LICENSES" TO THE CITY OF PETALUMA MUNICIPAL CODE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Chapters 6.04, 6.08, 6.28 and. 6.36 of Title 6 "Business Regulations and Licenses" of the Petaluma Municipal Code shall be repealed on the effective date of this ordinance. Section 2. Chapter 6.01 "Business Tax" of the Petaluma Municipal Code is hereby added and shall read as follows: CHAPTER 6.01 -BUSINESS TAX Sections: 6.0.1.010 Definitions 6.01..020 Tax Certificate Required 6.01.030 Purpose 6.01..040 Certificate Nontransferable 6.01.050 Duplicate Certificate 6.01..060 Separate Certificate for Each Type of Business Activity 6.01..070 Separate Certificate for Each Branch Establishment or Place of Business 6.01.080 Change of Location of Business 6.01.090 Exclusions 6.01.100 Exemptions 6.01.1.10 Exemption Application 6.01.120 Business Classifications 6.01.130 Tax Rates and Taxing Measures 6.01.1.40 Apportionment 1 1 of 20 pgs Ord. 1921 NCS 1 6:01.150 Application for Certificate and Payment of Tax 2 6.01.1.60 New and Renewal Business Applicants 3 6.01..1.70 Certificate Period 4 6.01.1.80 Tax Payments Due 5 6.01.190 Businesses Ceasing Operations During the Certificate Period 6 6.01.200 Verification and Audit of Application and Tax 7 6.01.210 Date of Payment 8 6.01..220 Issuance of Certificate 9 6.01.230 Renewals 1.0 6.01..240 Certificate to Be Posted 1.1 6.01..250 Failure to File Application or Renewal -Assessment of Taxes 12 6.01..260 Penalties and Interest 13 6.01.270 Delinquent Tax as a Debt 14 6.01.280 Criminal. Penalties 15 6.01..290 Inspection of Business Records 16 6.01..300 Confidentiality of Taxpayer Records 1.7 6.01.310 Tax Refund 18 6.01..320 Regulations 19 6.01..330 Unauthorized Business 20 6.01.340 Void Business Certificate 21 6.01.350 Suspension and Revocation 22 6.01.360 Appeal 23 6.01..370 Appeal Procedures 24 25 6.01..010 -Definitions. 26 For purposes of this chapter, the following terms shall be defined as follows: 27 A. "Business" means all activities engaged in or caused to be engaged in the City, 28 with the object of attaining direct or indirect gain, benefit or advantage.. This includes but is not 29 limited to: a business, commercial enterprise, trade, calling, vocation, profession, occupation, 30 or means of livelihood. This term does not include services rendered by an employee to an 31 employer. 32 B. "Business tax certificate" means the document issued as evidence of payment of a 33 business tax or exemption from payment as provided in this chapter. 34 C. "City" means the Ciry of Petaluma, Sonoma County, California, including all of 35 the territory and jurisdiction thereof as presently constituted, and any and all of the same which 36 shall later come into existence by any manner or means whatsoever. 37 D. "Cost of operations" means the total amount expended for engaging in business 38 within the City. This includes but is not limited to, salaries and benefits, operating 39 leases/rentals for equipment and facilities, utilities, services and supplies, maintenance, and 40 general overhead expenditures. This term shall not include non-cash expenditures for 41 depreciation and amortization. 42 E. "Engaging in business" means commencing, conducting or continuing in 43 business. Proof of engaging in business includes but is not limited to: 44 (1) Use of signs, circulars, cards, telephone books, newspapers, or trade 45 publications to advertise, hold out or represent that a person is in business in the City. 2 Ord. 1921 NCS 2 of 20 pgs 1 (2) An active license or permit issued by a governmental agency indicating 2 that such person transacts business in the City; 3 (3) Any other evidence of engaging in business and the failure to deny in a 4 sworn statement given to the Tax Collector upon request that a person is not engaged in business 5 within the City. 6 Failure to make a profit or complete a transaction does not negate a finding of 7 engaging in business. 8 F. "Fixed place of business" means a place of business in the City which is regularly 9 kept open with someone in charge thereof for the transaction of business during customary 10 business hours. 1.1 G. "Gross receipts" means the total amount actually received or receivable from 12 sales and/or the performance of any act, service or employment for which a charge is made or 13 credit allowed. Gross receipts include but are not limited to, all receipts, cash received, credits, 14 commissions or fees earned, sales on time, cost of materials, labor or services provided, value 15 of property taken in lieu of cash payments, and interest paid or payable. Excluded from gross 16 receipts .are: 17 (1) Cash and jobber discounts which reduce selling price and ultimate receipts 18 from sale. 19 (2) Any tax including but not limited to, sales tax, use tax, gas tax, transient 20 occupancy tax and real property transfer tax, which is measured by the sales price and is 21 included in the purchase price and collected from the consumer or purchaser. 22 (3) Any refund that is granted, either in cash or credit, to a purchaser who 23 returns property upon the rescission of a contract of sale. 24 (4) Amounts received by persons acting as agents, brokers or trustees, where 25 such amounts have been collected for and are paid to another party. This includes but is not 26 limited to, amounts collected by salesmen and transmitted to manufacturer or distributor; trust 27 funds received and transmitted by trustee; fees separately itemized on statements and forwarded 28 to a subcontractor or consultant as payment for services rendered, provided that a list of 29 subcontractors or consultants and amount paid is reported to the Tax Collector; and receipts 30 collected and subsequently repaid to a lessee, provided that the name of the lessee and the 31 amount paid is reported to the Tax Collector. 32 (5) Amounts received as refundable deposits, except those amounts that are 33 forfeited and subsequently taken as business income. 34 (6) Any credit that is granted for property provided by the consumer or 35 purchaser as part of the purchase price (trade-in merchandise), provided that the value of 36 property taken is reported in gross receipts when sold to someone else. 3 Ord. 1921 NCS 3 of 20 pgs. 1 (7) Bad debts, when credits are reported in total in the first year and prove 2 uncollectible in a subsequent year. 3 (8) Passive income including interest on investments, dividends, occasional 4 sale of property or surplus equipment. 5 (9) Receipts not taxable by virtue of the Constitution or laws of the United 6 States or the State of California. 7 I. "Person" includes all domestic and foreign corporations, associations, syndicates, 8 joint stock corporations, partnerships of every kind, clubs, business or common law trusts, 9 societies, and individuals transacting or carrying on any business in the City, other than as an 10 employee. 11 J. "Tax Collector" means the Director of Finance of the City of Petaluma or the 12 authorized designee of said Director. 13 14 6.01..020 -Tax Certificate Required: 15 No person shall engage in business in the City without first applying for and receiving an 16 annual business tax certificate from the City and paying to the City Tax Collector a business tax 17 described in this chapter. Operation of a business in the City without a business tax certificate 18 and payment of the business tax shall constitute a separate violation for each day that such 19 business is conducted. 20 21 6.01.030 -Purpose. 22 The business tax required by this chapter is imposed through the taxing power of the 23 City solely for the purpose of obtaining general revenue. Payment of the tax and issuance of a 24 business tax certificate does not release or in any way excuse a person from compliance with 25 other applicable provisions of this code or other laws, including any permit or other licensing 26 requirements by the City or other government agencies. Issuance of the business tax certificate 27 does not entitle the holder thereof to conduct a business in a manner or location otherwise 28 prohibited or regulated by law. 29 30 b.01.040 -Certificate Nontransferable. 31 A. No certificate issued pursuant to this chapter shall be transferable: 32 (1) Provided that where a certificate is issued authorizing a person to transact 33 and carry on a business at a particular place, such person may upon application therefor have the 34 certificate amended to authorize the transacting and carrying on of such business under said 35 certificate at some other location to which the business is or is to be moved. 36 (2) Provided further that transfer of ownership, whether by sale or otherwise, 37 to another person under such circumstances that the real or ultimate ownership after the transfer 4 Ord. 1921 NCS 4 of 20 pgs. 1 is substantially similar to the ownership existing before the transfer, shall not be prohibited by 2 this chapter. 3 (3) For the purpose of this chapter, stockholders, bondholders, partnerships, 4 or other persons holding an interest in a corporation or other entity herein defined to be a person 5 are regarded as having the real or ultimate ownership of such corporation or other entity. 6 7 6.01.050 -Duplicate Certificate. 8 A duplicate certificate may be issued by the Tax Collector to replace any certificate 9 previously issued hereunder which has been lost or destroyed upon the person filing statement of 10 such fact, and paying to the Tax Collector a duplicate certificate fee as set by resolution. 11 12 6.01.060 -Separate Certificate for Each Tyke of Business Activity. 13 A separate certificate is required for each business activity which falls within the 14 different business classification as defined in this chapter. Where two or more business 15 activities are engaged at one location and each is taxable on the same basis and tax rate, the 16 person may request a consolidated certificate and pay only one tax. A separate business will not 17 be deemed to include any isolated transaction or activity that is ancillary to a primary business. 18 19 6 O1 070 -Separate Certificate for Each Branch Establishment of Place of Business. 20 A separate certificate must be obtained for each branch office or place of business 21 located in the City. However, if the person engages in the same business at each branch office, 22 the person may request a consolidated certificate in which the tax base will be consolidated and 23 one tax shall be paid. based upon the rate applicable to that. business classification. 24 25 6.01.080 -Change of Location of Business. 26 In the event that a business with a valid certificate moves or changes its location of 27 business, the certificate shall notify the Tax Collector of the change of address and shall pay a 28 fee as set by resolution to update the administrative records and issue a new certificate. 29 30 6.01.090 -Exclusions. 31 This chapter shall not apply to any person transacting or carrying on any business 32 excluded from the payment of business taxes by the constitution or applicable statutes of the 33 United States or of the State of California. 34 35 6.01.1.00 -Exemptions. 36 The provisions of this chapter shall not require the payment of a business tax, but the 37 Tax Collector may issue a business certificate for the following: 5 Ord. 1921 NCS 5 of 20 pgs. 1 A. Any non-profit organization or corporation which has qualified for exemption 2 from federal income taxes under Section 501(c) of the Internal Revenue Code, provided that the 3 business is operated wholly for the benefit of non-profit purposes and no profit is derived, either 4 directly or indirectly, by any person. However, any non-profit organization that has unrelated S business gross receipts as defined in the Internal Revenue Code shall be required to pay a 6 business tax on said gross receipts. 7 B. Every honorably discharged or relieved veteran of the United States, who is 8 physically unable to obtain a livelihood by manual labor, and who is a voter of the State of 9 California, 'who distributes circulars, and hawks, peddles, and vends any owned goods, wares or 10 merchandise, except spirituous, malt, vinous, or other intoxicating liquor. 11 C. Any non-profit organization conducting or staging any concert, exhibition, lecture 12 or entertainment, where the proceeds from admissions charged are used for the furtherance of 13 education, art or music within the City and where no part of the profits derived therefrom is 14 used for the purpose of private gain of any person. 15 D. Any blind person or indigent person who by reason of the infirmities of age, loss 16 of limb or other disabling cause is unable to obtain livelihood by other means than such street 17 vending or entertaining or house-to-house selling. The exemption granted under this section 18 shall not exceed two days in any one month, and shall only be granted after the chief of police 19 has reviewed and approved the application required by Sections 6.01.110 and 6.32.060. 20 E. Any person whose total gross receipts for the preceding year is less than One 21 Thousand Dollars ($ l , 000) . 22 23 6.01.110 - Exemption Anvlication. 24 Any person claiming an exemption pursuant to Sections 6.01.090 and 6.01.100 shall file 25 a sworn statement with the Tax Collector, on a form provided and payment of an administrative 26 fee as set by resolution, stating the facts upon which such an exemption is claimed, as well as 27 documentation requested by the Tax Collector to support the requested exemption such as, but 28 not limited to, evidence of non-profit status, or prior year(s) tax return(s) or evidence of 29 disability or discharge from the service. 30 The Tax Collector may, upon a proper showing of exempt status, issue a business tax 31 certificate to such person claiming exemption from payment of the business tax required by this 32 chapter. In the absence of substantiating the claim for exclusion or exemption, such person 33 shall be liable for the payment of the business tax imposed by this chapter. 34 35 6.01.1.20 -Business Classifications. 36 Each business in the City shall be classified into one of the following business 37 classifications: 6 Ord. 1921 NCS 6 of 20 pgs. 1 A. Administrative Headquarters. Any business operation where the principal 2 business transacted consists of providing administrative or management-related services to other 3 locations where the operations of the business are conducted which lead more directly to the 4 production of gross receipts. Administrative or management-related services include but are not 5 limited to, record keeping, data processing, research, advertising, public relations, personnel 6 administration, legal and corporate headquarter services. 7 B. Contractors. Any person who undertakes or offers to undertake to or purports 8 to have the capacity to undertake to or submits a bid to, or does by or through others, construct, 9 alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, 10 road, railroad, excavation or other structure, project, development or improvement, or to do 11 any part thereof. Any person whose operations as such are the performance of construction 12 work requiring special skill and the use of specialized building trades or craft, whose principal 13 contracting business involves serving as a subcontractor or speciality contractor to a general 14 contractor. 15 C. Manufacturing. Any person conducting, managing or carrying on a business 16 consisting mainly of manufacturing, packing or processing any goods, wares, merchandise or 17 produce. 18 D. Miscellaneous. Any person engaged in a business not specifically taxed by 19 other provisions of this chapter and not otherwise exempt. 20 E. Production/Film Mal~ing. Any person, group, association, partnership, firm or 21 corporation involved in the shooting of films, commercials, television series or related visual. 22 programs utilizing City streets, facilities or other locations as a backdrop for the audio and/or 23 visual program. 24 F. Professionals. Any person, group, association, partnership, firm or corporation 25 engaged in a profession or vocation licensed by the State, related to a licensed profession or 26 vocation, and/or requiring a period of specialized training including, but not limited to, 27 physicians, dentists, attorneys, real estate brokers, real estate appraisers, and accountants. 28 G. Public [Itility. Any person, excluding government agencies, engaged in the 29 business of providing utility services to the general public or to private businesses including 30 such services as electrical, gas, sanitary, refuse, cable television and telephone. 31 H. Recreation and Entertainment. Any person engaged in the business of 32 providing directly recreation, entertainment, amusement or card room services not specifically 33 identified or defined elsewhere in this section. 34 I. Rental of Non-residential Property. Any person engaged in the business of 35 renting or letting a building or structure to a tenant for purposes of conducting business (i.e., 36 commercial retail space, office buildings, warehouses, .industrial uses and other non-residential 37 uses). This classification includes property owners and those who are in the business of leasing 7 Ord. 1921 NCS 7 of 20 pgs. 1 space for the express purpose of subletting. Leasing agents and property managers are included 2 under the services classification. 3 J. Mental of Residential Property. Any person engaged in the business of renting 4 or letting five (5) or more attached residential units for purposes of dwelling, sleeping or 5 lodging (i.e., apartments, boarding houses and other residential property rentals). This 6 classification does not include hotels, motels, bed and breakfast, or campgrounds which are 7 classified under services. 8 K. Retailing. Any person conducting, managing or carrying on the business 9 consisting mainly of selling at retail any goods. 10 L. Seasonal Sales. Any person engaged in a temporary or transient business in the 11 City, selling or offering for sale goods, wares, merchandise, food or food products, plants or 12 plant products, beverages, holiday or special wares, or any other article of value, with the 13 intention of conducing such business for a period not to exceed one hundred twenty (1.20) days 14 in any calendar year. This classification does not include transient or itinerant business activity 15 classified under transient sales. 16 IVI. Services. Any business providing services, repairs or improvements to or on 17 real and personal property; renting or leasing personal property to businesses or persons, 18 including the rental of vehicles; operating a hotel or motel; or providing services to persons 19 including but not limited to, laundries, cleaning and dyeing, shoe repair, barber and beauty 20 shops, and photographic studios. This classification excludes any business activity specifically 21 identified and defined elsewhere in this section. 22 N. Special Events. Any activity or event ~r recreational, educational, information 23 or other intent that is of short duration and non-permanent such as, but not limited to, carnivals, 24 circuses, flea markets, home and garden shows, parades, and informational conventions. 25 O. Transient Sales. Any person conducting, managing, or carrying on business as 26 a peddler, itinerant vendor, itinerant photographer or solicitor as further defined under Chapter 27 6.32. 28 P. 'Transportation of Persons and Goods. Any person engaged in the 29 transportation of goods and/or persons to, from or within the City not otherwise specifically 30 taxed under the provisions of this ordnance nor specifically exempt under federal or state laws. 31 Examples of such activities include but are not limited to, taxis, limousine services, bus 32 services, private transit operators, and delivery trucks. This classification does not include 33 rental or leasing. of motor vehicles to businesses or persons which is classified under services. 34 Q. Wholesaling and Suppliers. Any person conducting, managing or carrying on 35 the business consisting mainly of selling at wholesale any goods or supplying other businesses 36 with goods. 8 Ord. 1921 NCS 8 of 20 pgs. 1 6.01.130 -Tax Rates and Taxing Measures. 2 The business tax rates and method of application for each business classification 3 described in this chapter shall be established from time to time by a resolution of the City 4 Council. The tax rate measure for all business classifications except for classifications listed 5 below, defined in Section 6.01.1.20, shall be gross receipts as further defined in Section 6 6.01.010. For the business classifications of administrative headquarters and manufacturers 7 defined in Section 6.01.120, the tax rate measure shall be the cost of operations or .gross 8 receipts, whichever is greater. For the following business classifications of transient sales, 9 special events, seasonal sales, transportation of persons and goods, and production/filmmaking 10 as defined in Section 6.01.120, the tax rate measure shall be a fixed period, activity, or vehicle. 11 12 6.01.140 - Apportionment. 13 Whenever a person engages in business both within and outside the City, the tax imposed 1.4 by this chapter for those businesses using gross receipts or cost of operations as a taxing 15 measure shall be based on business activity that is fairly apportioned to reflect that portion of 16 business initiated, conducted, rendered or delivered from within or to the City. Guidelines for 17 apportionment may be issued from time to time by the Tax Collector. 18 19 6.01.1.50 - Annlication for Certificate and Payment of Tax. 20 Before any business certificate is issued to any person, unless otherwise provided in this 21 chapter, a written application by the applicant shall be made to the Tax Collector. Such 22 application shall contain the following information: 23 A. The business owner name(s) and type of ownership: corporation, partnership, 24 sole ownership or trustee. All owners' names, partners' names, or officers' names of the 25 corporation shall be included. 26 B. Business address and phone number of all owners or partners. Business address 27 and phone number of corporation officers and their headquarter address and phone number. 28 C. The exact physical address and phone number of the fixed place of business; 29 business classification as transient sales or without a fixed place of business shall supply their 30 personal address and phone number. 31 D. The nature or type of all business activity conducted from the location. 32 E. The exact name of business, including fictitious business name(s), partnership 33 name, and/or corporation name. 34 F. Mailing address if different from business address. 35 G. Federal Employer ID number or Social Security number of all owners, State 36 Employer ID number, State resale permit number, and any other County, Federal or State 37 license or permit number and class if applicable. 9 Ord. 1921 NCS 9 of 20 pgs. 1 H. In the case of a corporation, the name and address of the officer or person 2 designated. to accept service of legal documents. 3 I. Provide information from prior calendar year or the prior corporation fiscal year 4 for business tax to be measured by gross receipts, cost of operations, vehicles, events or other 5 methods to calculate tax as applicable to the business classification and fairly apportioned to 6 business activity within the City. 7 J. Submit business tax payment based on the appropriate tax measure and rate for 8 the business classification. 9 K. Any further information with the Tax Collector may deem necessary for issuance 10 of the business certificate, or computation of the business tax, or other information which may 1.1 be mandated by law. 12 13 6.01.160 -New and Renewal Business Applicants. 14 Any person starting a business in the City shall file a written application prior to 15 commencing business and the minimum tax applicable to the business classification. The 16 application shall contain all of information described in Section 6.01.150 except that an estimate 17 of gross receipts, cost of operations or other tax measure from the start of the business to the 18 end the certificate period will be required. Upon expiration of the certificate, the person shall 19 be required to file a statement showing the actual amount of gross receipts or other applicable 20 tax measure incurred during the first certificate period and pay the appropriate business tax. 21 based on that amount in excess of the minimum tax paid. 22 To renew the certificate for the following- calendar year and any subsequent year, the 23 applicant shall update the renewal application and submit a tax payment in the manner described 24 in Section 6.01..1.50. 25 26 6..01.170 -Certificate Period. 27 Each business shall, for purposes of paying the business tax, be categorized by the Tax 28 Collector as conducting business under one of the following: 29 A. Calendar Year Period. Calendar year period shall commence on January 1 and 30 end on December 31. 31 B. Transient Period. Transient period shall begin on the date of issuance of the 32 business certificate and shall expire one hundred twenty (120) days thereafter. 33 C. Daily Period. Daily period shall begin at 1.2:01. a.m. and expire at 1.1.:59 p.m. 34 on the calendar date of issuance of the business certificate. 10 10 of 20 pgs. Ord. 1921 NCS 1 6.01.180 -Tax Payments Due. 2 A. For those businesses categorized under the calendar year period, the annual 3 renewal payment shall be due and payable by March 1 of each year for the calendar year 4 beginning the preceding January, and shall be deemed delinquent if not paid prior to March 31 5 of said year. 6 B. All other businesses categorized under a transient or daily period shall pay the 7 business tax in advance of the certificate period. 8 C. For the 1993 calendar year period, the tax payment shall be due and payable by 9 April 1 and deemed delinquent if not paid by April 30, 1993. 10 11 6.01.190 -Business Ceasing~perations During the Certificate Period. 12 In the event that a business terminates operations during the certificate period, there shall 13 be no proration or refund of taxes paid for that certificate period. 14 15 6.0.1.200 - _ Verification and Audit of Annlication and Tax. 16 No business certificate application or payment of estimated tax shall be conclusive upon 17 the City. The correctness of any information and estimated tax listed on an application shall be 18 subject to audit and verification by the Tax Collector. 19 6.01.210 -Date of Payment. 20 Payment made in person to the Tax Collector during City business hours shall be deemed 21 received as of the date of personal delivery. If payment is made by United States mail, the 22 payment shall be deemed received by the date of cancellation by the U.S. Postal Service as 23 reflected on the envelope containing the payment, or in the event such cancellation cannot be 24 determined, the date of receipt by the Tax Collector's office. 25 26 6.01.220 -Issuance of Certif cafe. 27 After the Tax Collector has reviewed the application and the applicant has paid in full the 28 tax required by this chapter, the Tax Collector shall issue a certificate which contains the 29 following information: 30 A. The name of the person to whom the certificate is issued; 31 B. The identification, by business classification(s), of the business authorized by the 32 certificate; 33 C. The location where business(es) is to be conducted; and 34 D. Such other information that the Tax Collector may determine to be necessary. it 11 of 20 pgs. Ord. 1921 NCS 1 2 3 4 5 6 7 8 9 1.0 11 12 13 1.4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 6.01.230 -Renewals. It shall be the responsibility of each person to obtain a renewal certificate and pay the business tax as provided in this chapter regardless of whether or not renewal notice from the Tax Collector has been received. No business certificate shall be renewed until the person has paid in full all delinquent business taxes, including accrued interest. and applicable penalties, to the Tax Collector. 6.01.240 -Certificate to Be Posted. Every person with a certificate and conducting a business at a fixed place of business located within the City shall post the certificate in a conspicuous place at the place of business. All other persons, their employees and agents, shall carry the certificate,. or a certified copy, with them at all times while conducting business in the City. All persons with certificate under this chapter shall produce the certificate upon the request of any police officer or any person designated by the Tax Collector. 6.01.250 -Failure to File Application or Renewal -Assessment of Taxes. A. Whenever the Tax Collector determines that any tax is due or may be due to the City of Petaluma under the provisions of this title, the Tax Collector may give notice of an assessment of such business tax. B. The notice of assessment shall set forth the amount of any business tax known to be due or estimated by the Tax Collector, after full consideration of all information within the Tax Collector's knowledge concerning the business and activities of the person assessed. The notice shall also include the amount of any penalties or interest accrued to the date of the notice of assessment. C. The notice of assessment shall be served personally or by depositing in the United States mail, postage prepaid thereon, addressed to the person at the last known address. For the purpose of this section, a service by mail is complete at the time of deposit in the United States mail. D. Within thirty (30) days after the date of service, the person assessed may apply in writing to the Tax Collector for a hearing on the assessment. If the person neither requests a hearing upon the assessment nor requests a waiver of hearing within the prescribed time, the amount of the assessment shall be final and the amount thereof shall immediately be due and owing to the City of Petaluma. Penalties and interest as provided by this chapter shall continue to accrue until paid. The administrative proceeding prescribed by this section shall be deemed exhausted and the taxes a debt to the City. The City shall have the right to bring an action in any court of competent jurisdiction to collect the amount of the assessment, plus such penalties and interest as may have accrued thereon as provided by this chapter. 12 Ord. 1921 NCS 12 of 20 pgs. 1 E. If the person requests a hearing upon the assessment, the Tax Collector shall 2 cause the matter to be set for hearing before the City Manager, or designee, within fifteen (15) 3 days after the request. Notice of the time and place of the hearing shall be mailed to the person 4 assessed not less than ten (10) days before the date set for hearing and, if the Tax Collector 5 desires said person to produce specific records at such hearing, such notice may designate the 6 records required to be produced. 7 F. At the hearing, the person assessed and the Tax Collector may submit such. 8 evidence as they believe to be relevant to their respective positions. The City Manager may 9 require the presentation of additional evidence and may continue the hearing from time to time 1.0 for the purpose of allowing the presentation of additional evidence. 11 Upon completion of the hearing, the City Manager may affirm the assessment, 12 increase the assessment; or decrease the assessment. However, the amount of the assessment 13 shall not be increased unless the claim for the increase is asserted on behalf of the City either 14 before or during the hearing. Written notice of the decision of the City Manager shall be given 15 to the person assessed in the same form and manner as the notice of assessment. 16 G. Within fifteen (15) days from the date of service of the notice of decision by the 17 City Manager, the person assessed may file written exceptions to the decision. If the person 18 does not do so, the person shall nevertheless be deemed to have exhausted the administrative 19 proceedings provided by this chapter. Upon filing of written exceptions, the City Manager may 20 either deny the exceptions or modify the decision. If the City Manager modified the decision, a 21 written notice of the decision shall be given to the person assessed in the same form and manner 22 as the notice of assessment. If the City Manager does not modify the decision within thirty (30) 23 days from the service of said exceptions, the exceptions shall be deemed denied. 24 H. The decision of the City Manager may be appealed to the City Council in the 25 same manner as prescribed in Section 6.01.370.B of this chapter. 26 I. Failure of the Tax Collector to set any hearing within the time prescribed in this 27 chapter and failure of the City Manager to complete any procedure prescribed in this chapter 28 within the period stated shall not affect the validity of any proceedings taken hereunder. 29 J. Acceptance of any payment upon an assessment, the validity of which has not 30 previously been passed upon by the Tax Collector or City Manager, shall not preclude the Tax 31 Collector from subsequently levying another assessment in any case where the original 32 assessment does not truly reflect the correct business 'tax liability. 33 34 b.01.260 -Penalties and Interest. 35 If a business tax is not paid in full by March 31 of each year or, in the case of newly 36 established businesses, within thirty (30) days after commencement of business in the City, the 37 Tax Collector shall: 13 13 of 20 pgs. Ord. 1921 NCS 1 A. Impose atwenty-five percent (25%) penalty on the estimated tax payment due 2 and owing; and 3 B. Impose an additional twenty-five percent (25%) penalty per month of the 4 estimated tax payment, or fraction thereof, that remains unpaid; and 5 C. Impose an interest charge at the rate of one and one-half percent (1-1J2%) per 6 month, or fraction thereof, on the estimated amount of the tax from sixty (60) days after the tax 7 is delinquent. 8 In no case, however, shall the penalty exceed one hundred percent (1.00%) of the 9 estimated business tax due or One Thousand Dollars ($1,000), whichever is less. 10 11 6.01.270 -Delinquent Tax as a Debt. 12 The amount of any business tax, penalty and/or interest imposed by this chapter shall be 13 deemed a debt to the City, and any person who fails to pay the tax, penalty and/or interest shall 14 be liable to the City for said amount(s) and an action may be brought in the name of the City in 15 any court of competent jurisdiction to recover the amount of the tax, penalties and interest that 16 are due and owing. The City may collect the debt through any legal means including attachment 17 and seizure of business property. All remedies prescribed by this chapter are cumulative, and 18 the use of one or more remedies by the City shall not bar the use of any other remedy for the 19 purpose of enforcing this chapter. 20 21 6.01.280 -Criminal Penalties. 22 Any violation of this chapter shall be a misdemeanor and shall be punishable as provided 23 by law. 24 25 6.01..290 -Inspection of Business Records. 26 The Tax Collector shall have the right to inspect, free of charge, during reasonable 27 business hours, any place of business required to pay a business tax under this chapter and to 28 examine the books, records, or information regarding the business that the Tax Collector deems 29 necessary in order to carry out duties under this chapter subject to the regulations governing 'the 30 right of entry of City officials for purposes of inspection in Chapter 1.08. 31 32 6.01.300 -Confidentiality of Taxpayer Records. 33 It is unlawful for the Tax Collector or any person having an administrative duty under 34 the provisions of this chapter to make known in any manner whatever the business affairs, 35 operations, or information obtained by an investigation of records and equipment of any person 36 required to submit such information to the Tax Collector, or any other person visited or 37 examined in the discharge of official duty, or the amount or source of income, profits, losses, 14 14 of 20 pgs. Ord. 1921 NCS 1 expenditures, or any particular thereof, set forth in any statement or application, or to permit 2 any statement or application, or copy of either, or any book containing any abstract or 3 particulars thereof to be seen or examined by any person; provided that nothing in this section 4 shall be construed to prevent: 5 A. The disclosure to, or the examination of records and equipment by, another city 6 official, employee, or agent for collection of taxes for the sole purpose of adminstering or 7 enforcing any provisions of this chapter, or collecting taxes imposed hereunder; 8 B. The disclosure of information and/or the results of an examination of records of a 9 particular taxpayer, or relating to a particular taxpayer, in judicial proceedings brought to 10 determine the existence and/or the amount of any tax liability of the particular taxpayer to the 11 City or to the City Attorney for the defense of the City or any employee or official thereof, 12 against a claim filed by the taxpayer against the City or any employee or official thereof; 13 C. The disclosure after the filing of a written request to that effect, to the taxpayer 14 or to successors, receivers, trustees executors, administrators, assignees and guarantors, if 15 directly interested, of information as to the items included in the measure of any paid tax, any 16 unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, 17 however, that the City Attorney approves each such disclosure and that the Tax Collector may 18 refuse to make any' disclosure referred to in this paragraph when in the Tax Collector's opinion 19 the public interest would suffer thereby; 20 D. The disclosure of the names and business addresses of persons to whom tax 21 certificates have been issued, and the general type or nature of their business; 22 E. The disclosure by way of public meeting or otherwise of such information as may 23 be necessary to the City Council in order to permit it to be fully advised as to the facts when a 24 taxpayer files a claim for refund of taxes, or submits an offer of compromise with regard to a 25 claim asserted against the taxpayer by the City for delinquent taxes, or when acting upon any 26 other matter; 27 F. The disclosure of general statistics regarding taxes collected or business done in 28 the City; 29 G. The disclosure of information and records as may be required under state law 30 applicable to chartered cities or required by subpena served on the City. 31 32 6.01.310 -Tax Refund. 33 Whenever the amount of any tax, penalty or interest has been paid more than once or has 34 been collected in error by the City under this chapter, it may be refunded by the Tax Collector 35 only upon a written verified claim, which states the specific grounds for the refund, filed with 36 Tax Collector within one (1) year of the date of payment of the amount sought to be refunded. 15 15 of 20 pgs. Ord. 1921 NCS 1 If the claim is approved, the refund may be credited on any amounts then due and payable from 2 the person from whom it was collected. 3 4 6.0.1.320 -Regulations. 5 The Tax Collector shall enforce the provisions of this chapter and may prescribe, adopt, 6 and enforce rules and regulations relating to the administration and enforcement of this 7 ordinance. 8 9 6.01.330 -Unauthorized Business. 10 No business certificate issued pursuant to the provisions of this chapter, or the payment 11 of any business tax required under the provisions of this chapter, shall be construed as 12 authorizing the conduct or continuance of any illegal business, or of a legal business in an illegal 13 manner, or the conduct of a business without complying with all the provisions of City and State 14 and Federal laws, including, but not limited to, certificate of occupancy requirements, or zoning 15 compliance, or a permit from any board, commission, department, or other office of the City. 16 17 6.01.340 -Void Business Certificate. 18 The City shall not be bound by an error of the Tax Collector or employees of the City in 19 issuing business certificates contrary to the terms of this chapter. 20 Failure to comply with the provisions of this chapter shall constitute grounds for the 21 refusal, suspension or revocation of the business certificate. 22 If a business certificate is issued and thereafter the business certificate holder is in 23 violation of any certificate of occupancy requirements, zoning regulation, or other City permits, 24 said business certificate is voidable and subject to suspension and/or revocation. 25 26 6.01.350 -Suspension and Revocation. 27 A. The Tax Collector may suspend or revoke any business certificate issued when it 28 shall appear that a business is being conducted or premises used in violation of the provisions of 29 any law of the United States, State of California, County of Sonoma, of the City, or the 30 premises are being used for a purpose wholly or partially different to that for which the business 31 certificate was issued. In such event, the Tax Collector shall, in writing, notify the certificate 32 holder of such action. 33 B. When a business certificate has been suspended as provided in this section, all 34 rights of the person affected to be in compliance with the provisions of this chapter for such 35 business at the premises where the violation occurred, shall be suspended effective upon receipt 36 of the notice of suspension. If no appeal is filed pursuant to Sections 6.01.360 and 6.01.370, 16 Ord. 1921 NCS 16 of 20 pgs. 1 the suspension shall become a permanent revocation effective thirty (30) days from receipt of 2 the notice of suspension. 3 C. When a business certificate is proposed to be revoked as provided in this section, 4 all rights of the person affected to be in compliance with the provisions of this chapter for such 5 business at the premises where the violation occurred shall be revoked effective thirty (30} days 6 from receipt of the notice of revocation unless such proposed revocation is appealed pursuant to 7 Sections 6.01.360 and 6.01.370 of this chapter. 8 9 6.01.360 -Appeal. 10 Any person aggrieved by the action of the Tax Collector suspending, revoking, or 11 denying a business certificate may appeal to the City Manager in accordance with Section 12 6.01.370. For purposes of this section, revocation shall include a decision to deny an l3 application to issue or renew a business certificate. 14 15 6.01.370 -Appeal Procedures. 16 A. An aggrieved person per Section 6.01.360 may appeal the decision of the Tax 17 Collector to the City Manager within fifteen (15) days after notice thereof by filing with the Tax 18 Collector a written Notice of Appeal. The Notice of Appeal shall briefly state the grounds 19 relieved upon for appeal. If such appeal is made within the time prescribed, the Tax Collector 20 shall cause the matter to be set for hearing before the City Manager within thirty (30} days from 21 the date of receipt of such Notice of Appeal, giving the appellant not less than ten (10) working 22 days' notice in writing of the time and place of hearing. The findings and determination of the 23 City Manager at such hearing shall be final and conclusive. No such determination shall 24 conflict with any substantive provision of this chapter. Within five (5) working days after such 25 findings and determination are made, the Tax Collector shall give written notice thereof to the 26 appellant. 27 B. The decision of the City Manager may be appealed to the City Council within 28 fifteen (15) days after notice of the City Manager's decision. The matter shall be set for public 29 hearing before the City Council within forty-five (45) days giving the appellant not less than ten 30 (10) day's notice in writing of the time and place of hearing. The findings and determination of 31 the City Council at such hearing shall be final and conclusive. 32 33 Section 3. Sections 6.32.01.0 and 6.32.080 of Chapter 6.32 "Peddlers and Solicitors" of 34 Title 6 "Business Regulations and Licenses" are hereby amended to read as follows: 17 Ord. 1921 NCS 17 of 20 pgs. 1 6.32.010 -Definitions. 2 The following words and phrases, when used in this chapter, shall have the meanings 3 ascribed to them by this section: 4 A. "Certificate" means the issuance of a business tax certificate for payment of a S business tax as provided by Chapter 6.01. 6 B. "Peddler" includes any person traveling or not traveling by foot, wagon, 7 automotive vehicle, railroad car or any other type of conveyance, from place to place, from 8 house to house, or from street to street, carrying, conveying or transporting goods, wares and 9 merchandise, and personal property of any nature and offering and exposing for sale, or making 10 sales and delivering articles to purchasers or prospective purchasers. "Peddler" also includes the 1.1 common definitions of hawker and huckster. 12 C. "Permit" means a permit granted and issued pursuant to the provisions of this 13 chapter. 14 D. "Solicitor" means any person traveling or not traveling either by foot, wagon, 15 automotive vehicle, or any other type of conveyance, from place to place, from house to house, 16 or from street to street, taking or attempting to take orders for sale of goods, wares and 17 merchandise, and personal property of any nature for future delivery, or for services to be 18 furnished or performed in the future, whether or not such person has, carries or exposes for sale 19 a sample of the subject of such sale or whether such person is collecting advance payments of 20 such sales or not. This definition includes any person, who, for himself or for any other 21 person, hires, leases, uses or occupies any building, structure, railroad car, boat, hotel room, 22 lodginghouse, apartment, shop or any other place within the City for the sole purpose of 23 exhibiting samples and taking orders for future delivery for less than one hundred twenty (120) 24 days. 25 E. "Itinerant photographer" shall mean and include all persons, both principal and 26 agent, who engage in a temporary or transient business in the City of selling photographs or 27 taking, soliciting or securing orders for photographs with the intention of continuing such 28 business in the City for a period of not more than one hundred twenty (120) days, and who for 29 the purpose of carrying on such business hires, leases or occupies any room, building or 30 structure for the taking of such photographs. The person so engaged shall not be relieved from 31 the provisions of this chapter by reason of associating temporarily with any local dealer, trader 32 or merchant, or by conducting such temporary or transient business in connection with, or as 33 part of, or in the name of any local dealer, trader or merchant. 34 F. "Itinerant vendor" shall mean and include all persons, both principal and agent, 35 who engage in a temporary or transient business in the City of selling goods, wares or 36 merchandise, or taking, soliciting or securing orders therefor with the intention of continuing 37 such business in the City for a period of not more than one hundred twenty (120) days, and who 18 Ord. 1921 NCS 18 of 20 pgs. 1 for the purpose of carrying on such business hires, leases or occupies any room, building or 2 structure for the exhibition or sale of such goods, wares or merchandise. The person so 3 engaged shall not be relieved from the provisions of this chapter by reason of associating 4 temporarily with any local dealer, trader or merchant, or by conducting such temporary or 5 transient business in connection with, or as part of, or in the name of any local dealer, trader or 6 merchant. The term "itinerant vendor" shall not apply to peddlers or solicitors as defined 7 above. 8 G. "Junk dealer" shall mean any person not having a fixed place of business within 9 the City, who buys or sells, either at wholesale or retail, any old rags, sacks, bottles, cans, 10 papers, metals or other articles of junk. 11 12 Section 6.32.080 -Issuance of Peddlers/Solicitors Permit. 13 If, as a result of the investigation mentioned in Section 6.32.070, the character and 14 business responsibility of the applicant are found to be satisfactory, the chief of police shall 15 approve the application. The applicant shall present the approved application to the Tax 16 Collector who shall then compute and collect the appropriate permit fee, established from time 17 to time by resolution, and a business tax as required in Chapter 6.01. Upon issuance of a 18 business tax certificate, the chief of police shall issue a permit showing thereon the applicant's l9 name, address, the kind of goods, wares and merchandise to be sold or for which orders are to 20 be solicited, the date of issuance and expiration date one hundred twenty (120) days later of the 21 permit. 22 23 Section 4. This ordinance is hereby declared to be an urgency ordinance and shall take 24 effect and be in force from and after its passage by the Council. The reason for this urgency 25 ordinance is that it relates to taxes for the usual and current expenses of the City and is 26 necessary for the immediate preservation of the public peace, health and safety of the City of 27 Petaluma. 28 29 Section 5. If any section, subsection, sentence, clause or phrase or word of this 30 ordinance is for any reason held to be unconstitutional by a court of competent jurisdiction, such 31 decision shall not affect the validity of the remaining portions of this ordinance. The City 32 Council of the City of Petaluma hereby declares that it would have passed and adopted this 33 ordinance and each and all provisions thereof irrespective of the fact that any one or more of 34 said provisions be declared unconstitutional. 35 36 Section The City Clerk is hereby directed to post/publish this ordinance for the 37 period and in the manner required by the City Charter. 19 Ord. 1921 NCS 19 of 20 pgs. 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 INTRODUCED and ordered postedJpublished this 1993. ADOPTED this 15th day ~f March 15th day of March 1.993 by the following vote: AYES: Nelson, Barlas, Shea, Vice Mayor Sobel, Mayor Hilligoss NOES: None ABSENT: Read, Hamilton ~~ Mayor ATTEST Clerk c:\word5\ord.doc 3/16/93 (fmk) 20 Ord. 1921 NCS 20 of 20 pgs.