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HomeMy WebLinkAboutMINUTES - 10301990 - H.1 H. 1 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this order on October 30, 1990 by the following vote: AYES: Supervisors Powers, Schroder, McPeak, Fanden NOES: Supervisor Torlakson ABSENT: None ABSTAIN: None SUBJECT: Proposed Ordinance to Establish a Business License Tax in the Unincorporated Areas of the County The Board on October 23, 1990 introduced a proposed Ordinance to provide for the collection of a business license tax in the unincorporated areas of Contra Costa County. County Administrator Phil Batchelor spoke on the serious fiscal position of the County and the limitations placed on county government relative to raising revenues. He called attention to the fact that the State has allowed counties to charge a business tax, a revenue source that is currently used by city governments. Mr. Batchelor advised that the tax under consideration by the Board--will be comparable to what the cities are charging. Scott Tandy, Chief Assistant County Administrator, commented on the documentation presented in his report to the Board (copy attached and included as a part of this document) relative to the process used in contacting businesses and business associations to discuss the proposed businesslicensetax. Tony Enea, Deputy County Administrator, commented on the method of computing the tax and referred to comparison data of business license tax rates on gross receipts of selected cites, city business license taxes on manufacturing firms, and city flat fee business license taxes on retail firms. Board members commented on the reductions in county programs/, services and staff because of diminishing revenues while the need for these services increases. There was discussion on the action of the Legislature allowing counties to impose booking fees and a utility tax and to charge cities and school districts for tax collections within their boundaries. In response to the Board' s inquiry, the County Administrator advised that revenue received from the business tax would be used to mitigate layoffs and cutbacks in the Sheriff' s patrol, Social Service Department, and the Health Services Department. Supervisors McPeak and Torlakson expressed support for dedicating monies collected from the business tax to services provided to the unincorporated areas in the. County and possibly to a specific program area. In responding to a question on administrative costs associated with the collection of a business license tax, Mr. Batchelor advised that these costs would be kept minimal because of current county procedures in place with the Office of the Treasurer Tax Collector and the Office of Revenue Collections who are already performing related functions. The following persons who spoke against the imposition of a business license tax commented on the notification procedure used; equity in the application of the tax; consideration for a sliding scale tax formula based on gross profits; requests to defer action on the tax pending further review by a representative .group of the business community; negative impact or consequences to small businesses, to the industrial community, and on seasonal businesses; f-1• � uv TO: BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator Costa County DATE: October 30, 1990 cGiii+ SUBJECT: ORDINANCE TO ESTABLISH BUSINESS LICENSE TAX IN THE UNINCORPORATED AREAS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. Waive second reading and adopt the business license tax ordinance. 2. Direct the County Administrator to analyze proposed refinements to the ordinance and report to the Finance Committee in December. 3 . Direct the County Administrator to notify appropriate business representatives of the status of the . building license tax ordinance. BACKGROUND: On October 23, the Board directed the staff to continue to contact businesses and business associations to discuss the proposed' businesslicense tax. Since the Board meeting, staff has : 1. disseminated over 50 business license tax ordinances to persons attending the October 23 meeting as well as chambers of commerce, industrial associations and building associations; 2. initiated telephone contact with ten chambers of commerce, the Business Industry Association, and the Contra Costa Taxpayers Association to provide follow-up information; CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER , r VOTE OF SUPERVISORS i HEREB RTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT AND CORREC PY OF AN ACTION TAKEN AYES: N AND ENTERED ON T INUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE SHOWN. cc. County CA ATTESTED At Tax Co Ctor PHIL BATCHELOR,CLERK OF THE D OF SUPERVISORS AND COUNTY ADMINISTR �aon �n,00 BY DEPUT\ -2- 3. prepared a written response to a letter sent by the El Sobrante Chamber of Commerce; 4. . responded to over 30 calls from individual businesses; 5. held a meeting on October 26 with representatives from the Contra Costa Council, the Industrial Association, the Council of Industry, and the Five "C' s" (chambers of commerce in the unincorporated area) . 6. held several public meetings organized by Supervisor Torlakson to solicit input on the ordinance. Approximately 65 business representatives provided opinions and suggestions on the ordinance. The October 26 meeting with representatives from industry, and the chambers proved to be a productive exchange of information. The group was concerned about: A. whether an inflation adjustment would be built into the rate structure in the future and the process for approving such an adjustment; B. whether the tax rates would be increased on manufacturing firms to offset any lost revenue due to reductions in rates to other business; C. the need for the associations to be included on the County's '' mailing list for budget information which is significant to the County. The business representatives were satisfied with the responses given to them by County staff on these issues. Phil Batchelor indicated that each association would be placed on a mailing list for County budget information. Another meeting was set for January to continue the discussion of the business license tax and County budget matters. ORDINANCE NO. 90 - (Business License Taxes) The Contra Costa County Board of Supervisors ordains as follows (omitting the parenthetical footnotes from the official text of the enacted or amended provisions of the County Ordinance Code) : SECTION I: Chapter 64-14 is added to the County Ordinance Code, provide for the collection of business license taxes to read: Chapter 64-14 Business License Tax Article 64-14 .2 Purpose and Authority Section Section 64-14 . 202 . Purpose and Authority. The purpose of this chapter is to effectuate Government Code section 7284 (CH 466 , Stats . 1990; Cal. Const. Art. IV, 58(c) (2) ) in order to levy a business license tax in the unincorporated area of the County. (Ord. 90- , S1 . ) Article 64-14 .4- Definition and License Requirements Sections Section 64-14 . 402 . Definitions. The following words and phrases whenever used in this chapter shall be construed as defined in this section. a. "Business" includes all activities engaged in or caused to be engaged in within the unincorporated area of the county with the object of gain, benefit or advantage, whether direct or indirect, to the taxpayer or to another or to others, but does not include the services rendered by an employee to his or her employer or a casual or isolated transaction. b. "Sale" and "sell" include and refer to the making of any transfer of title, in any manner or by any means whatsoever, to ORDINANCE NO. 90- Pacte 2 tangible personal property for a price, and to the serving, supplying or furnishing, for a price, of any tangible personal property fabricated- or made at the special order of consumers who do or who do not furnish directly or indirectly the specifications therefor. A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price shall likewise be deemed a sale. C, "Engaging in business" means commencing, conducting or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business . d. "Gross receipts., " except as otherwise specifically provided in this chapter, means the gross receipts of the preceding fiscal year of the licensee or part thereof, and is IPX defined as follows: the total amount actually received or receivable from all sales; the total amount of compensation actually received or receivable 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 of materials, goods, wares or merchandise; and gains realized from trading in stocks or bonds; interest discounts, rents, royalties, fees, commissions, dividends or other emoluments, however designated. Included in "gross receipts" are all receipts, 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, except that the ORDINANCE NO2 90- Pane 3 following are excluded therefrom: ( 1 ) Cash discounts allowed and taken on sales; ( 2) Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as "gross receipts" ; ( 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 a contract of sale as is refunded either in cash or by credit; (5 ) Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one. dollar; ( 6 ) Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the finance department with the names and -the addresses of the others and the amounts paid to them. THis exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees; ( 7 ) Cash value of sales, trades or transactions between departments or units of the same business; ( 8 ) Transaction between a partnership and its partners; (9 ) Receipts from services or sales in transactions between affiliated corporations . An "affiliated corporation" is a corporation: (a) The voting and nonvoting stock of which is owned ORDINANCE NO. 90- Page 4 at least eighty percent by such other corporation with which such transaction is had. (b) Which owns at least eighty percent of the voting and nonvoting stock of such other corporation, or (c) At least eighty percent of the voting and nonvoting stock of which is owned by a common parent corporation which also has such ownership of the corporation with which such transaction is had; ( 10) Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the licensee in the regular course of the licensee's business . e. As used in this chapter, "occasional recreational, sporting or entertainment events" are any recreational, sporting or entertainment exhibitions, shows, games, motion pictures, screenings, or theatrical or vaudeville performances which are not operated or carried on regularly throughout the year in the unincorporated area of the county. f . "Tax Collector" shall mean the Treasurer-Tax Collector of the County of Contra Costa. (Ord. 90- , §1 . ) Section 64-14 .404 . License required. It shall be unlawful for any person, either for himself/herself or for any other person, to commence or carry on any business specified in this chapter and with gross receipts in excess of $5,000 per year, in the unincorporated area of the county without first having procured a license from the county to do so, or without complying with any and all regulations of such business contained in this ORDINANCE NO. 90- Pacre 5 chapter for each and every day that such business is so carried on. (Ord. 90- , 51 . ) Section 64-14 .406 . Separate license for each place of business. A separate license must be obtained for each and every branch establishment or separate place of business in which a business is carried on. (Ord. 90- , §1 . ) Section 64-14 .408 . License fee a tax - Does not permit business otherwise prohibited.. "License, " as used in this chapter, does not mean a permit. Any other permit requirements or regulatory licenses located outside this chapter remain in effect and are not superceded by this chapter. The fees prescribed by this chapter constitute a tax for revenue purposes, and are not regulatory permit fees . The payment of a license tax required by the provisions of this chapter, and its acceptance by the county, and the issuance of such license to any person, shall not entitle the holder thereof to carry on any business unless he/she has complied with all of the requirements of this chapter and all other applicable laws, nor to carry on any business in any building or on any premises designated in such license in the event that such building or premises are situated in a cone or locality in which the conduct of such business is in violation of any law. (Ord. 90- , §1 . ) Section 64-14 . 410 . Interstate commerce. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license provided for in this chapter upon the ground that such license casts an unreasonable burden upon his/her right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States Congress respecting interstate commerce, shall ORDINANCE NO. 90- Pacre 6 file a verified statement with the tax collector, disclosing the interstate or other character of the business entitling such exemption. Such statement shall state the name and location of the company or firm for which the orders are to be solicited or secured; the name and address of the nearest local or state manager, if any; the kind of goods, wares or merchandise to be delivered; the place from which the same are to be shipped or forwarded; the method of solicitation of taking orders; the location of any warehouse, factory or plant within the state; the method of delivery; the name and location of the residence of the applicant; and any other facts necessary to establish such claim of exemption. A copy of the order blank, contract form or other papers used by such person in taking orders shall be attached to the affidavit for the information of the tax ;f collector. (Ord. 90- §1 . ) Section 64-14 . 412 . Exemptions. Nothing in this chapter shall be .1z,s.- X deemed or construed to apply to any person transacting and =` ` carrying on any business exempt by virtue of the Constitution or r1ry applicable statutes of the United States or of the State of California from the payment of such taxes as are herein prescribed. (Ord. 90- , §1 . ) Section 64-14 .414 . Contents of license. Every person required to have a license under the provisions of this chapter shall make application for the same to the tax collector and, upon the payment of the prescribed fee to said department, the department: shall issue to said person a license which shall contain the following: a. The name of the person to whom the license is issued; b. The business licensed; ORDINANCE NO. 90- Pane 7 C. The place where such business is to be carried on; d. The date of the expiration of such license; and e. Such other information as the tax collector determines . (Ord. 90- , §1 . ) Section 64-14 . 416 . Annual license. All licenses issued under this chapter, except the daily licenses issued to occasional recreational, sporting or entertainment events and the first license issued to a newly established business, shall be considered to be. issued on January 1st of each year and shall expire on December 31st of the same year. (Ord. 90- , §1 . ) Article 64-14 . 6 License Procedures Section 64-14 . 602 . Declaration statement required for license and amended tax and renewal for new business. a. Every person subject to a license fee shall, before the license fee becomes delinquent, file with the tax collector a written application with such information as is required by the tax collector's department to enable it to administer the provisions of this chapter, and shall pay at such time the amount of the fee computed thereon. b. The written statement provided for in this section shall be on a form prescribed by the tax collector's department and shall include a declaration substantially as follows : "I declare under penalty of perjury that to my knowledge all information contained in the statement is true and correct. " ORDINANCE NO. 90- Pacte 8 C. When any person terminates his/her business during the calendar year, the person shall file an amended declaration within thirty days of the cessation and pay a fee based upon the actual gross receipts generated and fee rate applicable to the business classification for the period of the year that the business was in. operation. (Ord. 90- , §1 . ) Section 64-14 . 604 . Registration Fees - New business registration and businesses established prior to the chapter. A person applying for the first license for a newly established business shall pay the minimum tax as provided in Section 64- 14 . 836 or 64-14 . 840 of this_ chapter. - In addition, a non refundable registration fee in the amount of twenty-five dollars shall be paid within fifteen days from the date of commencement of business activity. The purpose of this fee is to offset a portion of the administrative costs . Failure to register shall subject the taxpayer to penalty and interest the same as provided for by Section 64-14 . 842 . All businesses established prior to the adoption of this chapter and subject to licensing under this chapter shall also pay the non refundable registration fee contained within this section in addition to the business' license tax fee based upon Article 64-14 . 8 and• its receipts from the immediately preceding year or section 64- 14 . 836 if applicable. The non refunable registration fee shall be payable each year in addition to any license tax fee pursuant to Article 64-14 . 8, upon renewal of the business license. (Ord. 90- Section 64-14 . 606 . Declaration, additional statement by contractors for first, renewal or transferred license. In ±t addition to the information required to be included in the ORDINANCE NO. 90- Page 9 written statement of the applicant for a first license, and of the licensee for a renewal of license, as provided in Section 64-14 . 602, and in addition to and as a part of the procedure to be followed in any assignment or transfer of a license, as provided in Section 64-14 . 612, each applicant, licensee or transferee who is subject to the contractors license law shall state that he/she is licensed under such law, that his/her license is in full force and effect, and the number thereof, or., if he/she is exempt from •the provisions of the contractors license law, proof of the facts which entitle the applicant to such exemption. (Ord. 90- , §1 . ) Section 64-14 . 608 . Declaration -Not conclusive. No statements required in this chapter shall be conclusive upon the county for any department, officer or agent thereof, and whenever it appears to the satisfaction of ,the tax collector and he has reason to believe that such statement does not set forth the true facts of the business for which a license is required, the tax collector may withhold the issuance of a license therefor until. such time as the applicant furnishes to the tax collector satisfactory evidence of the truth: of such statement. If such evidence is not furnished to the tax collector within a reasonable time, or should it at any time appear to the tax collector that, by reason of error, misrepresentation, fraud or any other cause whatsoever, the license fee has not been properly fixed for any license issued, the department, shall give not fewer than five days, written notice to the licensee to show cause, at a time and place fixed in the notice, why a fee, to be determined by the department, and specified in the notice, should not be fixed for such license. At such hearing, the licensee shall appear and offer evidence ,why such specified fee should not be fixed as the license fee. After such hearing, the ORDINANCE NO. 90- Pane 10 tax collector shall determine the proper fee to be charged and shall forthwith give written notice to the licensee of such determination and the amount of such fee. Any fee finally determined shall be due and payable as of the date the original license fee was due and payable, together with any penalties that may be due thereon; provided, however, if such fee is fixed in accordance with the original statement of the license, then no penalty shall attach to such fee by reason of any delinquency. (Ord. 90 , §1 . ) Section 64-14 . 610 Declaration-Confidential documents. The statements filed pursuant to the provisions of this chapter shall be' deemed confidential in character and shall not be subject to public inspection, and shall be kept so that the contents thereof shall not become known except to the persons charged with the administration of this chapter. (Ord. 90- , Section 64-14 . 612 . Transfer of license-Procedure. No license granted or issued under any provisions of this chapter shall be in any manner transferred or assigned„or authorize any person other than the person named in .the license to carryon the business therein named or to transact such business in any place other than the place of location therein named without the written consent of the tax collector endorsed thereon. At the time such license is assigned or transferred or the place of location for the carrying on of such business is changed, the person applying for such transfer or change shall pay to the tax collector a fee, as provided in Section 64-14 . 836 (b) , for each assignment or transfer. (Ord. 90- , §1 . ) ORDINANCE NO. 90- Pane 11 Section 64-14 . 614 . License to be conspicuously posted- Exception. Every person having a license under the provisions of this chapter and carrying on a business at a fixed place of business shall keep such license posted and exhibited while in force in some conspicuous part of said place of business . Every person having a license and not having a fixed place of business shall carry such license in possession at all times while carrying on the business for which the same was granted. Every peddler having a license shall keep such license prominently displayed at all times . (Ord. 90- Section 64-14 . 616 . Lost license. The tax collector shall make a charge, as provided in Section 64-14 . 836 (b) , for each" duplicate license issued to replace any license issued under the provisions of this chapter which has been lost or destroyed; the applicant shall make satisfactory proof of such loss. (Ord. 90- §1 • ) Article 64-14 . 8 Fees and Penalties Section 64-14 . 802. Rates-General. Any business with annual gross receipts below $5, 000 per year is not subject to either the yearly registration fee or the gross receipts base rate or flat fee tax. Class A: Administrative headquarters; Business, personal and repair svcs; Construction contractor; Grocer (retail or wholesale) ; Miscellaneous business; Motor vehicle sale; Nonprofit organizations; Professional-Semiprofessional; Recreation and entertainment; Rental of real property; Retail ORDINANCE NO. 90- Page 12 trade;. Wholesale trade. -Unless otherwise provided in this chapter, every business operating within the unincorporated are of the county shall pay the amount of the annual license tax due and payable as calculated in accordance with the gross receipts schedule shown below. Gross Recei is Tax 'Rate In Dollars Per Thousand Dollars (in dollars Gross Receipts First 5,000 to 99,999 AT 1.00/per Thousand Next 100,000 to 249,999 AT .90/per Thousand Next 250,000 to 499,999 AT .80/per Thousand Next 500,000 to 749,999 AT .70/per Thousand Next 750,000 to 999,999 AT .60/per Thousand All Over 1 ,000,000 AT .30/per Thousand Minimum Tax under gross receipts schedule is $25.00. Class Bt Manufacturing. Each manufacturing business shall pay. an annual flat fee tax of $150.00 and $12 per employee in addition to the yearly non refundable registration fee of $25.00. Section 64-14.804. Retail trade. a Every person primarily engaged in the business of selling any goods, wares or merchandise at retail , and not otherwise specifically taxed by other provisions of this chapter, shall be , classified within the category of retail trade and pay an annual license fee for each thousand dollars of gross receipts as provided in Section 64- 14.802. Public Utilities shall also' be classified within the category of retail trade. b. For the purpose of this section, a "retail sale" or "sale at retail" means a sale of goods, wares or merchandise for any purpose other than resale in the regular course of business. C. Persons engaging in retail trade and other business activities taxed on the basis of gross receipts under different rates, as provided by this ORDINANCE NO. 90- Paste 13 chapter, may elect to combine gross receipts at. one rate and obtain one license if the provisions of Section 64-14.802 apply to the combined activities. (Ord. 90-_, §1, ) Section 64-14.806. Grocer, retail or wholesale. . a. Every person primarily engaged in business as a grocer shall be classified within the Class A and pay a license fee for each one thousand dollars of gross receipts as provided in Section 64-14.802. b. "Grocer" includes any business in which the principal activity of the business consists of the retail or wholesale. sale of foodstuffs intended for human consumption, but does not include restaurants or any other businesses where food products are prepared on the premises for immediate consumption. c. Persons engaging in grocery sales and other business activities taxed on the basis of gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license if the provisions of Section 64-14.802 apply to the combined activities. (Ord. 90-_, §1. ) Section 64-14.808. Motor vehicle dealers (new and used). a.Every person . engaged in the business of selling new or used motor vehicles at retail shall pay a license fee for each thousand dollars of gross receipts under Class A as provided in Section 64-14.802. 64-14.810 Wholesale trade. a. Every person primarily engaged in the business of selling any goods, wares or merchandise at wholesale, and not otherwise specifically taxed by other provisions of this chapter, shall be classified within the wholesale trade category and shall pay in annual license fee for each thousand dollars of gross receipts as provided under Class A in section 64-14.802. b. Persons engaging in motor vehicle sales and other business activities taxed on the basis of gross receipts under different rates, as provided by ORDINANCE NO. 90— Page 14 this chapter, may elect to combine gross receipts at one rate and obtain one license, if the provisions of Section "64-14.838 apply to the combined activities. (Ord. 90_, § 1. ) b. For the purpose of this section, "a wholesale sale" or "sale at wholesale" means a sale of goods, wares or merchandise for the purpose of resale in the regular course of business. c. Persons engaging in wholesale sales and other business .activities taxed on the basis of gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license, if the provisions of Section 64-14.838 apply to the combined activities. (Ord. 90-_, § 1. ) Section 64-14.812. Business, personal and repair services. a. Every person primarily engaged in the business of providing business, personal or repair services or social' services, or transportation services, as defined in the current U.S. Government Printing Office publication Standard Industrial Classification Manual , not specifically taxed by other provisions of this chapter, shall be classified within the business, personal and repair services categoryland pay a license fee for each thousand dollars of gross receipts for services performed within the county as provided under Class A in Section 64-14.802. . b. Persons engaging in business, personal and repair services and other business- activities taxed on the basis of gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license, if the provisions of Section 64-14.838 apply to the combined activities. (Ord. 90 §1. ) Section 64-14.614. Professional-Semiprofessional-Connected business. Every person primarily engaged in any business defined in this section (or any combination of such businesses) , and ,classified as professional or ORDINANCE' N0. 90- n<1 `f: Pacte 15 semiprofessional , shall pay an annual license fee for each ,thousand dollars of gross receipts for services performed within the county as provided under Class A in Section 64-14.802. a. Finance, Insurance and Real Estate. Every person in any business, profession or occupation within the business fields of finance, insurance and real estate, as described in the current U.S. Government Printing Office publication Standard Industrial Classification Manual , except for those persons whose business is primarily renting real property, as defined in Section 64-14.826, shall be classified as professional-semi-professional. b. Health, Veterinary, Legal , Educational , Engineering-Architectural- Surveying, Accounting-Auditing-Bookkeeping, and Miscellaneous Services not Classified Elsewhere. Every person in any business, profession or occupation within the business fields of health, veterinary, legal , education, engineering-architectural-surveying, accounting-auditing- bookkeeping, and miscellaneous services not classified elsewhere, as described in the current U.S. Government Printing Office publication Standard Industrial. Classification Manual shall be -classified as professional-semi-professional . c. Nothing contained in this section shall be deemed or construed as applying to any person engaged in any of professions or occupations enumerated in this section solely as an employee or partner of any other person or entity conducting, .managing or carrying on any such business in the unincorporated area of the County. d. Any person subject to a license under provisions of this section may exclude from gross receipts the portion of those receipts paid to subcontractors, providing that a list of such subcontractors and the amounts of payment are reported to the tax collector. ORDINANCE NO. 90— Page 16 e. Persons engaging in professional and semiprofessional connected business and other business activities taxed on the basis of gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license, if the provisions of Section 64-14.838 apply to the combined activities. (Ord. 90-_, §1. ) Section 64-14.816. Entertainment, recreation and amusement connected business. a. Every person primarily engaged in the business of providing entertainment, recreation or amusement, and not otherwise specifically taxed by other provisions of this chapter, shall be classified recreation. and entertainment and pay an annual license fee for each thousand dollars of gross receipts as provided in Section 64-14.802. Occasional recreational , sporting or entertainment events, as defined in Section 64-14.402(e) , shall pay in addition to the registration fee a daily license fee at the recreational and entertainment rate for each thousand dollars of gross receipts as provided in Section 64-14.802. IF ' b. The business of providing entertainment, recreation or amusement 4 includes, but is not limited to, the following: theatrical or musical entertainment; all shows or exhibits; exhibiting motion pictures, films; nonprofessional sports and athletic exhibition or contest; pool or billiard n; , _ . room; bowling alley; golf course; circus, penny arcade, carnivals, menageries; charter boats, sports fishing. :'- c. Persons engaging in recreation and entertainment businesses and other business activities taxed on the basis of gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license, if the,provisions of Section .64-14.838 apply to the combined (Ord. 90-_, §1. ) Section 64-14.818. Professional sports event. a. As used in this chapter, "Professional sports event" means any sporting activity held at any place in the unincorporated area of the county wherein the participants are ORDINANCE NO. 90— Pacie 17 paid or compensated for their sporting services, whether in cash, securities or otherwise, and regardless of the amount of such services. This definition does not include athletes or students participating in athletic events, wherein such athletes or students receive scholarships, grant-in- aid, or similar financial support for educational purposes. b. Every person commencing, transacting or carrying on any professional sports event in the unincorporated area of the county shall pay a daily license tax of ten percent of gross receipts measured as of the time or times such event or events as to which this tax is applicable may commence, be transacted or be carried on in the unincorporated area of the county. (Ord. 90-_, §1. ) Section 64-14.820. Construction contractors. . a. Every person primarily conducting or carrying on a business who is licensed as a contractor by the state and who undertakes to, or offers to undertake to, or purports to have the capacity to undertake to, or submits bids to, or does personally or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including erection of scaffolding or other structures or works in connection therewith, is defined as a contractor. "Contractor, " as used in this section, also includes subcontractor and specialty contractor, whether operating within the unincorporated area of the county or from outside the unincorporated area of the county with no fixed place of business in the unincorporated area of the county. A contractor shall pay an annual license fee as provided in under Class A in Section 64-14.802 for each thousand dollars of gross receipts for work engaged in at sites with the unincorporated area of the county. b. Any person subject to a license under provisions of this section may exclude from gross receipts the portion of those receipts paid to ORDINANCE NO. 90— Page 18 subcontractors, providing that a list of such subcontractors and the amounts of payment is reported to the finance department. C.. Persons engaging in construction contracting and other business activities taxed on the basis of gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license. If the provisions of Section 64-14.838 apply to the combined activities. (Ord. 90 §1.) Section 64-14.822. Manufacturing. a. Every person primarily engaged in the business of manufacturing or processing any goods, wares, merchandise, food, article, substance or commodity at a fixed place of business within the unincorporated area of the county shall be classified manufacturing and pay an annual license fee as provided under Class B in Section 64-14.802. b. A business taxed under this section shall not be considered either a retailer or wholesaler with respect to the sale of goods manufactured by such business within the unincorporated area of the county. Section 64-14.824. Administrative headquarters. a. Every person conducting or carrying on the operation of an administrative headquarters shall be classified administrative headquarters and pay a license fee as provided under Class .A in Section 64-14.802 for each thousand dollars of gross payroll of all persons employed by the business at such administrative headquarters. b. "Administrative headquarters" means a location where the principal business transacted consists of providing administrative or management- related services, such as, but not limited to, record keeping, data processing, research, advertising, public relations, personnel , administration, legal and corporate headquarters services, to other locations where the operations of the same business are conducted which lead ORDINANCE NO. 90— Page 19 more directly to the production of gross receipts. c. A business shall be taxed as an administrative headquarters if the number of employees engaged in managing the business activities exceeds the total number of employees engaged in activities at the same location which would be otherwise taxable under this chapter. The gross payroll on which the license fee is to be computed shall include those employees engaged in those activities otherwise taxable under this chapter. d. "Gross payroll" means and includes the total gross amount of all salaries, wages, commissions, bonuses or other money payment of any kind which a person received from, or is entitled to receive from or be given credit for by his employer for any work done or personal service rendered in the unincorporated area of the county, from any trade, occupation or profession, including any kind of deductions before "take home" pay is received; but does not mean or include amounts paid to traveling salespersons or other workers as allowance or reimbursement for traveling or other expenses incurred in the business of the employer, except to the extent of the excess of such amounts over such expenses actually incurred and accounted for by the employee to the employer. (Ord. 90-_, §1.) Section 64-14.826. Rental of real property. a. Every person engaged in the business of renting or letting a building structure or other property, or a portion of such building structure or property, within the unincorporated area of the county for any purpose, except property designated for and used exclusively for residential use which contains fewer than three dwelling units, shall pay an annual license fee as provided in Section 64-14.802 for each thousand dollars of gross receipts. b. Every person engaged in the business of providing lodging for five or more persons, for direct or indirect compensation, shall pay an annual license fee as provided in Section 64-14.802 for each thousand dollars of ORDINANCE NO. 90— Pati 20 gross receipts. c. A lessor may exclude from gross receipts any receipts received which represent rent for the use of space by the lessor, by a partner, when the lessor is a partnership, or by an affiliated corporation, as defined in Section 64-14.402(d)(9). d. A lessor may not combine returns, or include income derived from real property rental with income from other business activities taxed under other provisions of this chapter. A separate license is required for each building or structure or lodging property, subject to business license taxation, as provided in this section. (Ord. 90- Section 64-14.828. Peddlers and solicitors. Every person engaged in the business of soliciting or peddling any goods, wares, merchandise or other things of value, not otherwise specifically licensed by this chapter or any ordinance of the county shall pay a license fee annually as provided in Section 64-14.836. a. For the purpose of this chapter, "peddling" means going from house to house, place to place, or in or along the streets, within the county, selling and making immediate delivery of, or offering for sale and immediate delivery, any goods, wares, merchandise or anything of value, in possessio of the peddler, but does not include selling and delivering, and offering to sell and deliver, items of food and drink for immediate human consumption by a vendor to regular customers along established routes where such sales and deliveries and offers of sale and delivery are made only for such regular customers on the premises of their place of residence or their place of employment of business, in accordance with invitations previously made to such vendor to make regular calls at specific intervals at such premises for the purpose of making sales and deliveries of such items of food and drink for immediate human consumption. ORDINANCE NO. 90— Paste 21 b. For the purpose of this chapter, "solicitor" means any person who engages in the business of going from house to house, place to place, or in or along the streets within the unincorporated area of the county selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise or other things of value for future delivery, or for services to be performed in the future. (Ord. 90- §1. ) Section 64-14.830. Handbill distributing. Every person primarily conducting, managing or carrying on the business of distributing handbills, advertising, samples, dodgers, advertising matter or printed matter of any kind shall pay a license fee annually, as provided in Section 64-14.836. (Ord. 90-_, §1. ) Section 64-14.832. Automobiles or vehicles for hire. Every person engaged in taxicab, ambulance or limousine service in the county shall pay an annual license fee as provided in Section 64-14.836. (Ord. 90-_, §1. ) Section 64-14.836. Flat rates and fees. a. Flat rates Industry Classification Annual Flat Tax Category Rate of Fee Automobile or Vehicles for hire $100.00 for the first vehicle and $25.00 for each vehicle thereafter. Handbill distributing $100.00 Peddlers and solicitors $100.00 b. Fees. Transferof license. . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.00 Lost license/duplicate license . . . . . . . . . . . . . . . . $10.00 (Ord. 90- Section 64-14.838. Optional method of determining tax. Whenever a person ORDINANCE NO. 90— Pacte 22 is engaged in two or more business activities, except rental of real property, which are taxed on the basis of gross receipts under different rate provisions of this chapter, such person may elect to combine all such gross receipts and pay a tax determined by applying the rate of tax applicable to that business activity producing the greatest amount of gross receipts, subject to the following provisions: a. Both businesses are conducted at the same location; b. Business activities to be included in the gross receipts, as provided by this section, shall not exceed twenty percent of the total of the combined total gross receipts of the businesses. (Ord. 90-_, §1. ) Section 64-14.840. License. Every annual license renewal which is not paid on or before March 15' of each year, or within thirty days after commencing business for a newly established business is declared delinquent and the tax collector shall thereupon add to said license and collect a penalty of ten percent of the license so delinquent. If such license renewal, is not paid on or before April 15 of each year or within sixty days following the commencement of business for a newly established business, a sum of fifty percent of the license shall be added thereto and collected as a penalty. (Ord. 90-_, §1.) Section 64-14.842. Penalty for nonpayment, of annual license. Every annual license which is not paid on or before March 15th of each year, or within thirty days after commencing business for a newly established business is declared to be delinquent, and the tax collector shall thereupon add to said license and collect a penalty of ten percent of the license as delinquent. If the license is not paid before April 15th of each year or within sixty ' days following the commencement of business for a newly established business, a sum of fifty percent of said license shall be added thereto and collected as a penalty. (Ord. 90-_, § 1. ) ORDINANCE NO. 90— `ky, y. Parte 23 64-14.844. Penalty for nonpayment of a daily license. Every daily license which is not paid at the close of the day when the same was due and payable is declared to be delinquent, and the tax collector shall thereupon add to said license and collect a penalty of ten percent of the license as delinquent. If the license is not paid within ten days from the time such license became due and payable, an additional sum of fifty percent of said license shall be added to the license and collected as a penalty. 64-14.846. Interest. In addition to the penalties imposed, any person who fails to remit any license fee imposed by this chapter shall pay interest at the rate of one percent per month, or fraction thereof, on the amount of the fee and penalties from the date on which the license fee first became delinquent until paid. (Ord. 90-_, §1.) 64-14.848. License a debt. The amount of any license fee and penalty imposed by the provisions of this chapter shall be deemed a debt to the County; and any person carrying on any business without first having procured a license from the County to do so shall be liable to action in the name of the County in any court of competent jurisdiction, for the amount of license and penalties imposed on such business. If the taxes are not paid when due, such tax, penalty and interest shall constitute an assessment against such business property and shall be a lien on the property for the amount thereof, which lien shall continue until the amount thereof including all penalties and interest are paid, or until it is discharged of record. The tax collector shall notify the owner of the business/business property not less than thirty days prior to notifying the count that a lien will be placed on said property in the amount of the outstanding business, license tax. ORDINANCE NO. 90- Page 24 The tax collector shall turn over to the county assessor for inclusion' in the next property tax assessment the total sum of unpaid delinquent business tax charges consisting of the delinquent business taxes, penalties, interest at the rate of eighteen percent per annum from the date of recordation to the date of lien, an administrative charge of fifty dollars and a release of lien filing fee in an amount equal to the amount charged by the County Recorder's Office. Thereafter, said assessment may be collected at the same time and in the same manner as ordinary county taxes are collected, and shall be subject to the same penalties and the same procedure of sale as provided for delinquent ordinary county taxes. The assessment liens shall be subordinate to other liens except for those of state, county and municipal taxes with which it shall be upon parity. The lien shall continue until the assessments and all interest and charges due and payable thereon are paid. All laws applicable to the levy, collection and enforcement of county taxes shall be applicable to said special assessments. (Ord. 90-_, §1.) Article 64-14.10 Enforcement, Appeals, and Refunds 64-14.1002. Enforcement. It shall be the duty of the tax collector, and he/she is directed, to enforce each and all of the provisions of this �- chapter. Each department of the county which issues permits for work to be ° . ><s done shall require the production of a valid unexpired license prior to the issuance of such a permit. The tax collector, in the. exercise of the duties imposed upon him/her under this chapter, and acting through deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the unincorporated area of the county to ascertain whether the provisions of this chapter have been complied with. ORDINANCE NO. 90— Page 25 The tax collector, and each and all of the his/her assistants and any deputy Sheriff, shall have the power and authority to enter, free of charge and at any reasonable time, any place of business required to be licensed in this chapter and demand an exhibition of its license certificate. Any person, having such license certificate heretofore issued in his/her possession or under his/her control , who wilfully fails to exhibit the same on demand, shall be guilty of an infraction and subject to the penalties provided in this chapter. It shall be the duty of the tax collector and each of his/her assistants to cause a complaint to be filed against any and all persons found to be violating any of said provisions. (Ord. 90-_, §1. ) 64-14.1004. Remedies cumulative. The conviction and punishment of any person for transacting any business without obtaining a license shall not excuse or exempt such person from the payment of any license tax due or unpaid at the time of such conviction, and nothing in this chapter shall prevent a criminal prosecution of any violation of the provisions of this chapter. All remedies prescribed under this chapter shall be cumulative and the use of one or more remedies by the county shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. (Ord. 90-_, §1. ) 64-14.1006. Appeals. A. Any person aggrieved by any decision of an administrative officer or agency with respect to the issuance or refusal to issue a license, or the amount of a license tax, may appeal to the county administrator by filing a notice of appeal with the clerk of the board of supervisors. An appeal may be taken by filing with the county administrator or his/her designated representative a written statement setting forth in full the grounds of the appeal . B. The county administrator is authorized to issue such regulations as may be reasonable and necessary to hear and determine such appeals. Such ORDINANCE NO. 90— Pane 26 regulations shall be in writing and available to any person so requesting them. C. The amount of any license tax finally determined, as provided in this section, or any other section os this chapter, shall be due and payable as of the date the original license fee was due and payable, together with any penalties that may be due thereon; provided, however, if the amount of such license tax is fixed in accordance with the original statement of the applicant, then no penalty shall attach by reason of any delinquency. (Ord. go- 64-14.1008. Examination of books, records, witnesses -- Information confidential -- Penalty. The tax collector, or any authorized employee, is authorized to examine the books, papers and records of any person subject to this chapter for the purpose of verifying the accuracy of any return made or, if no return was made, to ascertain the license fees due under this chapter. Every licensee or supposed licensee is directed and required to' �1 furnish to the tax collector, or his/her duly authorized agent, or employee, the means, facilities and opportunity for making such examination and investigations as are authorized by this section. The tax collector is authorized to examine any person, under oath, for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the ' license fees due under this chapter, and for this purpose may compel the production of books, papers and records and the attendance of all persons x ,= before him/her, whether as parties or witnesses, whenever he/she believes such persons have knowledge of such matters. The refusal of such r* examination by any employer or person subject or presumed to be subject to the license fees shall be deemed a violation of this chapter. (Ord. 90-_, 64.10-1010. Refund of tax--Penalty or interest paid more than once or erroneously or illegally collected. Whenever the amount of any tax, penalty j r(. ORDINANCE NO. 90— 'rk' Paste 27 or interest has been paid more than once or has been erroneously or illegally collected or received by the county under this section, it may be ..}. refunded provided a verified claim in writing therefor, stating the specific grounds upon which said claim is founded, is filed with the tax collector within three years from the date of payment. The claim shall be audited by the tax collector and shall be made in accordance with current county refund procedures. If the claim is approved, the refund may be refunded or may be credited on any amounts then due and payable from the person from whom it was collected or -by whom paid, and the balance may be refunded to such person or to his/her administrators or executors. (Ord. 90-_, §1. ) SECTION II : EFFECTIVE DATE. This ordinance shall take effect immediately as a tax measure. SECTION III. SEVERABILITY. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or any part thereof is for any reason held to be unconstitutional , such decision shall not affect the validity of the remaining portio of this ordinance or any part thereof. The County hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrases be declared unconstitutional . PASSED ON by the following vote: AYES: NOES: ABSENT: ORDINANCE NO. 90— Pane 28 ABSTAIN: ATTEST: PHIL BATCHELOR, Clerk of the Board and County Administrator By Board Chair [SEAL] AWC:df (October 25, 1990) df8 wpdate.bus ORDINANCE NO. 90— z X14 fR _E4 44 44 N N n 0 rr (D N N v+ _j O o t+ U) N O Ln O Ul O O (D UI Ln O O O O O O I'd O O O O O O O ~ 0 O O O O O O Q (D UI b• F(D J• UI rt P) r• (D rn m a 0 ~ ~ Oo .P w N N 0 a rt 01 01 N cn Ul rt >C o to 0• t, tii r � o ro N N . (� (D � O . po to J Ln N H ti 0 a O d1 rn al N J a En roo 6-4 F3 t` O O O m ro a F,• (D p, rn Fi- En • o0 00 �1 o rn to O En rt, o H J N m Q :j 0 (D 0 O ° O O N O � .. ro a rt a � O CD N F-' N to 00 Q1 U1 (D N � (D �P 00 W Ol 00 rt (D 0 P. U) H H. U) UI C1 Ul a N ° a (D a ,� ,� ro m J rn to w a n (D N N %D Ln F-' Ul N 11 O En rt 10 1-3a N 0 a (D (D ro N a � a o (D tr 0 En a w w 'p w (D �C 0 a t~-J a O G] a rt a o Fi• U) 0 U) PL) ro 0 (D p o 0 0 w m 00 F-I rt (D 0 (n N• � ro rr n � • rn to w n a ,p N O v Q N Ith. cD F-J to F-A O 7V rt N N p • to 0o v w H 0 0 o a0 :� 0 A) rr � � 0 m > rt pd 0 7� rt rpt 0 > o4A 4A � 4A n O (D H O U) • N O Ln O Ln O C U) Ul O O O O O (D E ':), O O O O O O N 0 b (D O O O O O O (D ro (D n (D r rtrt m PL) Fl- cD wp -6s +4 &I N O F-` N N A Ln W K F11 U i m 00 F✓ w 0 Lo (D Fl O (D (DFit O ft O �J E K O a Ul N It:. u, u, a (n • N rn F-� 00 ll�- AN k4 (� rt, O Ul N .P _.1 0 51 r F- O Au UI n rn K F- (D F.,. U) (n ((D n n (D O U) r• t� tf O F-J �J UI rt N l0 N .P Ui -4 (D (D O lrn N F-j 0 00 to 0 0 O ro a a � r v, 0H. (D ift ift 4A (D r• (D 01 F_A W dl Ol K (D m O 00 N 00 O 00 0 Ul UI O O O O O � W Co Fl- En a 0 nm a � a 10 P) w F� N w w K O n a, O rn N (D w � aK N n (D 0 UI ro ro N rt t:rF-J �C F-J 4 x (D c� 0 p w FA ao P. O K w O H 110 NP a (pn a rt � � P) z P) nn �Jro mm 4,4 4A 409. 40:11r• r• N N N W W W rt b W Lyl O Ul N .P J fr (t a O O W Ln UI O � K 4A -64 149 _M nE W N W W K A� Ul F-� Ln W _j N (D N Ul .P W W (D ;J IK 0 fr 0 4)et 409- JA 44 4A -64 44 +ODI 41% 4 4A -M Kn N N 00 N N N W &- (Ji Ol M _l a 0 Ul O O W 01 W H H W m Fl- 10 b o Ul Ul o o K K (D (D ((DD (D FC K K K K () (D > � � O O O O rt rt rt rt rt 0 o t ,mfr lOrt K,' o bd Attachnv--nt C City Business License Taxes on Manufacturing Firms Flat Fee Per Employee Fee Brentwood $21. 60 all $ 4. 80 Concord -- 1-10 $ 11 11-30 $113 31-50 $290 51-100 $416 over 100 $667 El Cerrito $142. 97 over 4 $10 194. 04 ( 2 employees) 214. 46 ( 3 employees) 2.65. 52 ( 4 employees) .Martinez $103 1-49 $ 17 50 + $ 10 Pinole $61 2-19 $8 .75 over 20 $6. 25 Pleasant Hill $142 all $8. 50 Richmond $140 1-25 $28 over 25 $24 San Pablo $85 2-25 $16 over 25 $11 San Ramon $ 25 ( 5 or less employees) 50 ( 5 to 50 employees) . 250 (more than 50 employees) Walnut Creek $172 all $11. 45 County $150 all $12 Note: Pittsburg charges on a gross receipts basis and Antioch on a value added basis. Attachment D 10/90 City Flat Fee Business License Tax on Retail Firms Flat Fee Per Empioyee Fee Brentwood $21. 60 all $4. 80 El Cerrito $142.97 over 4 $10 194.04 ( 2 employees) 214.46 ( 3 employees) 265.52 (4 employees) Pinole $61 2-19 $8 .75 over 20 $6.25 Richmond $140 1-25 $28 over 25 $24 San Pablo $85 2-25 $16 over 25 $11 San Ramon $ 25 50 ( 5 50 employees) 250 (more than 50 employees)