HomeMy WebLinkAboutORD 60ORDINANCE NO. 60
AN ORDINANCE OF THE CITY OF PALM DESERT, CALIFORNIA,
PERTAINING TO TAXING THE TRANSACTION AND CARRYING ON
OF CERTAIN BUSINESSES, TRADES, PROFESSIONS, CALLINGS
AND OCCUPATIONS IN THE CITY OF PALM DESERT, FOR THE
PURPOSE OF RAISING MUNICIPAL REVENUE AND PROVIDING A
PENALTY FOR VIOLATION THEREOF.
The City Council of the City of Palm Desert does ordain
as follows:
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CHAPTER I
GENERAL PROVISIONS
AMENDED
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Definitions.
License and Tax Payment Required.
Branch Establishment and Separate Businesses.
Evidence of Doing Business.
Constitutional Apportionment.
Exemptions.
Exemption - Charitable and Nonprofit Organizations.
Exemption - Disabled Veterans.
Minor's Exemption.
Exemption for Artists and Art Exhibits.
Revocation of Exemption.
Application for License.
Processing of Application.
Issuance of License - Contents.
Error in Fee Nonprejudicial.
Error in Terms Voids License.
Unpaid Fees.
Duplicate License.
License Nontransferable.
Posting and Keeping of License.
Payment and Term of License.
Penalties for Delinquency.
Penalty for Violation.
BY ORDINANCE #-......�� y_..,..,.
BY ORDINANCE #.....'.,:3
License Fee a Debt.
Business Requiring Food Handling.
Business Requiring Certificate of Occupancy.
Refunds.
Enforcement - Right of Entry.
Extension of Time.
Appeal.
Waiver or Reduction of Taxes or Penalties.
Information Confidential.
Verification of Statements and Records.
SECTION 1. Definitions.
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(a) Business: "Business" shall mean arts, professions,
trades and occupations and all and every kind of calling, whether or
not carried on for profit.
(b) Operate: "Operate" shall mean and include manage,
control or carry on.
(c) Person: "Person" shall mean and include all domestic
and foreign corporations, associations, syndicates, joint stock
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corporations, partnerships of every kind, clubs, Massachusetts
business, or common law trust, societies, and individuals trans-
acting and carrying on any business in the City other than as
employees.
(d) Contractor: "Contractor" for the purpose of this
Ordinance is synonymous with the term "builder" and, within the
meaning of the Ordinance, a contractor is any person who under-
takes to or offers to undertake to, or purports to have the capa-
city to undertake to, or submits a bid to, or does himself or by
or through others, construct, alter, repair, add to, subtract
from, improve, move, wreck or demolish any building, highway, road,
parking facility, railroad, excavation or other structure, pro-
ject, development or improvement, or to do any part thereof,
including the erection of scaffolding or other structures or works
in connection therewith, or the installation of a mobile home upon
a site for the purpose of human occupancy. The term Contractor
includes sub -contractor, specialty contractor and owner -builder
who builds either commercial or residential units for either rent
or sale, either wholly or partially, or for any purpose other than
occupancy by the owner.
(e) Gross payroll: "Gross payroll" shall mean the total
annual wages paid employees working in the City of Palm Desert as
reported to the Department of Human Resources Development of the
State of California on quarterly unemployment tax returns; pro-
vided, however, that where employees working in the City were
reported to the State of California as having worked elsewhere
than in the City, the part of their wages paid or due for work
performed in the City shall be included as gross payroll in the
City for purposes of this chapter.
(f) Gross receipts: "Gross receipts" shall include the
total of amounts actually received or receivable from sales and
the total amounts actually received for the performance of any act
or service, of whatever nature it may be, for which a charge is
made or credit is allowed, including interest and carrying charges
in connection with sales, whether or not such act or service is
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done as a part of or in connection with the sale of materials,
goods, wares, or merchandise. Included in "gross receipts" shall
be 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.
Excluded from "gross receipts" shall be the following:
(1) Cash discounts allowed and taken on sales;
(2) Sales, use or transient occupancy taxes required
by law to be included in or added to the purchase price and
collected from the consumer or purchaser;
(3) Such part of the sale price of property returned
by purchasers upon recission of the contract of sale as is
refunded in either cash or by credit;
(4) Amounts collected for others where the business is
acting as an agent or trustee to the extent that such amounts are
paid to those for whom collected, provided the agent or trustee
has furnished the collector with the names and addresses of the
others and the amounts paid to them;
(5) Receipts of refundable deposits, except that refund-
able deposits forfeited and taken into the income of the business
shall not be excluded;
(6) As to a retail gasoline dealer, a portion of his
receipts from the sale of motor vehicle fuels equal to the motor
vehicle fuel license tax imposed by and previously paid under the
provisions of Part 2 of Division 2 of the Revenue and Taxation
Code of the State of California;
(7) As to a retail gasoline dealer, the special motor
fuel tax imposed by Section 4041 of Title 26 of United States
Code if paid by the dealer or collected by him from the consumer
or purchaser.
SECTION 2. License and Tax Payment Required.
Business license taxes in the amounts hereinafter pre-
scribed are hereby imposed upon the business and persons specified
in this Ordinance, and no person shall transact and carry on any
business without having procured a license from the City to do
so, or without complying with any and all regulations of such
business contained in this Ordinance, shall constitute a separate
violation of this Ordinance for each day and every day that such
business is so carried on.
SECTION 3. Branch Establishment and Separate Business.
A separate license must be obtained for each branch
establishment or location of the business transacted and carried
on and for each separate type of business at the same location,
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and each license shall authorize the licensee to transact and carry
on only the business licensed thereby at the location or in the
manner designated in such license.
SECTION 4. Evidence of Doing Business.
When any person shall by use of signs, circulars, cards,
telephone books, or newspapers, advertise, hold out, or represent
that he is in business in the City, or when any person holds an
active license or permit issued by a governmental agency indicating
that he is in business in the City, and such person fails to deny
by a sworn statement given to the Tax Administrator that he is not
conducting a business in the City, after being requested to do so
by the Tax Administrator, then these facts shall be considered
prima facie evidence that he is conducting a business in the City.
SECTION 5. Constitutional Apportionment.
None of the license taxes provided for by this Ordinance
shall be so applied as to occasion an undue burden upon interstate
commerce or be violative of the equal protection and due process
clauses of the Constitutions of the United States and the State
of California.
In any case where a license tax is believed by a licen-
see or applicant for license to place an undue burden upon inter-
state commerce or be violative of such constitutional clauses,
he may apply to the Tax Administrator for an adjustment of the
tax. Such application may be made before, at, or within six
months after payment of the prescribed license tax. The applicant
shall, by sworn statement and supporting testimony, show his
method of business and such other information as the Tax Adminis-
trator may deem necessary in order to determine the extent, if any,
of such undue burden of violation. The Tax Administrator shall
then conduct an investigation, and, after having first obtained
the written approval of the City Attorney, shall fix as the license
tax for the applicant, an amount that is reasonable and nondis-
criminatory, or if the license tax has already been paid, shall
order a refund of the amount over and above the license tax so
fixed.
ORDINANCE NO. 60
SECTION 6. Exemptions.
Nothing in this Ordinance shall be deemed or construed
to apply to any person transacting and carrying on any business
exempt by virtue of the Constitution or applicable statutes of
the United States or of the State of California from the payment
of such taxes as are herein prescribed.
Any person claiming an exemption pursuant to this
section shall file a sworn statement with the Tax Administrator
stating the facts upon which exemption is claimed, and in the
absence of such statement substantiating the claim, such person
shall be liable for the payment of the taxes imposed by this
Ordinance.
The Tax Administrator shall, upon a proper showing con-
tained in the sworn statement, issue a license to such person
claiming exemption under this section without payment to the City
of the license tax required by this Ordinance.
The Tax Administrator, after giving notice and a reason-
able opportunity for hearing to a licensee, may revoke any license
granted pursuant to the provisions of this section upon inform-
ation that the licensee is not entitled to the exemption as pro-
vided herein.
SECTION 7. Exemption - Charitable and Nonprofit
Organizations.
The provisions of this Ordinance shall not be deemed or
construed to require the payment of a license tax to conduct,
manage, or carry on any business, occupation, event, or activity
from any institution or organization which is conducted, managed
or carried on for the benefit of religious, charitable, philan-
thropic or educational purposes; provided that convincing evidence
is furnished to the Tax Administrator which establishes that not
less than 75% of the gross receipts derived from any such business,
occupation, event or activity will be devoted to religious, charit-
able, philanthropic or educational purposes. Also, may qualify
under Section 501 of the United States Internal Revenue Code or
equivalent statute, or equivalent statute of the State of
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California.
This Section shall not be deemed to exempt any such
institution or organization from complying with any other pro-
visions of this Ordinance requiring a permit from the City.
(a) The within exemption shall not be deemed applicable
with regard to any commercial type revenue producing rental activ-
ity or other merchandising or business activities directly or
indirectly operated on a regular basis by or on behalf of a relig-
ious or charitable institution or organization;
(b) When activities otherwise exempt under the above
basic rule are conducted for and on behalf of an exempt institution
or organization, by a profit -making contractor or concessionaire,
or the like, then the exemption shall be applicable only with
regard to the religious or charitable organization, and shall not
be applicable with regard to the activities, operations or revenues
received by the contractor or concessionaire or the like;
(c) No license tax shall be required for the conducting
of any entertainment, concert, exhibition, or lecture on scientific,
historical, literary, religious, or moral subjects within the City,
whenever the receipts therefrom are to be appropriated to any
institution or organization exempt under the above basic rule,
provided that this exemption shall not apply to any person or
entity conducting the business and deriving profit, incidentally
to producing the receipts as stated;
(d) No license tax shall be required for the conducting
of any temporary entertainment, concert, exhibition, or lecture
by any religious, charitable, civic, fraternal, educational,
military, state, county or municipal organization or association,
whenever the receipts therefrom are to be appropriated for the
purposes and objects for which such organization or association
was formed, and from which profit is not derived by any other per-
sons except those in the business of producing, staging, or other-
wise participating in such events, and provided that this exemption
shall not apply to such or any other persons or entities conducting
business and deriving profit, incidentally to producing the
receipts as stated.
SECTION 8. Exemption - Disabled Veterans.
Every honorable discharged soldier, sailor, marine, or
airman of the United States who is physically unable to obtain
his livelihood by means of manual labor and who is a qualified
voter of the State of California shall have the right to hawk,
peddle and vend any goods, wares or merchandise owned by him,
exempt spiritous, malt, vinous or other intoxicating beverages,
without the payment of a license fee, subject, however, to the
restrictions, limitations, regulations and conditions hereinafter
set forth.
(a) Every applicant must comply with the following
requirements before a license may be issued under the provisions of
this Section:
1. Every applicant must furnish a certificate of
physical disability executed by a qualified surgeon of the United
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States Army, Navy or Air Force, a certificate of honorable dis-
charge from the United States Armed Forces, and a written recommend-
ation from the representatives of the local posts of the American
Legion and the Veterans of Foreign Wars.
2. Every applicant must furnish two identification
photographs; one to be attached to the license issued to said
applicant, and the other to be attached to the copy retained by
the Tax Administrator. The applicant must also sign both copies
of said license at the time of the issuance thereof.
(b) A license when issued is subject to the following
conditions:
1. It is nontransferable and for the exclusive
use of the licensee named.
2. Applicant's identification photograph must be
attached to said license at all times, and failure to comply here-
with is grounds for revocation of said license and for refusing its
renewal or the issuance of a new license thereafter.
3. Should a license be found in the possession of
one other than the licensee named, it shall be surrendered up to
the Tax Administrator and cancelled, and neither the licensee
named nor the holder thereof shall thereafter be entitled to hold
a license under the provisions of this Section.
4. The licensee named must identify himself by
his signature whenever required to do so by the police officers,
or other authorized City officials.
5. Whenever the licensee uses any wagon, cart,
tray, basket or other vehicle or receptacle in vending any such
goods, wares, or merchandise, said license shall be carried in
a license holder attached to said vehicle or receptacle and in
plain view.
(c) It shall be unlawful for any person other than
the licensee named, to use or have in his possession any license
issued pursuant to the provisions of this Section.
(d) No person shall purchase or transfer any license
issued pursuant to the provisions of this Section, or tranfer or
convey the certificates mentioned in paragraph (a) 1. above, to
any other person for the purpose of securing a license as herein
provided for.
SECTION 9. Minor's Exemption.
Any person under 16 years of age whose annual gross
income from any business done within the City is less than Eight
Hundred Dollars ($800.00) shall be exempt from the requirements
of this Ordinance.
SECTION 10.
Exemption for Artist and Art Exhibits.
A business license shall not be required of individual
artists for the exhibition or display of paintings, sculpture,
photographs or other fine arts in public buildings, art galleries,
or in any business establishment if the exhibition or display is
incidental to the primary business conducted on the premises, and
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is primarily for cultural and educational purposes. Any artist
shall be exempt from the requirements of this Ordinance if the
sales of his art work within the City do not result in annual
gross receipts in excess of One Thousand Dollars ($1,000.00).
SECTION 11.
Revocation of Exemption.
The City Council or City Manager may revoke the
exemption license, if in their opinion the person is not entitled
to the exemption.
SECTION 12.
Application for License.
Before any license is issued to any person, such person
shall make application therefore to the Tax Administrator. Appli-
cant must state the name of the party to whom the license is to be
issued; the nature of the trade or business to be pursued; the
place where such business will be conducted and such other inform-
ation as may be deemed necessary for the enforcement of the pro-
visions of this Ordinance.
SECTION 13. Processing of Application.
Upon application being made as provided in Section 12,
and when the applicant has tendered the license fee required, the
Tax Administrator shall process the application. If it is an
application for a license for a new business or if he deems it
necessary, including the Health Officer, if health and sanitation
may be affected, to determine whether the business and premises
to be occupied meet the requirements of State law and City ordinances.
SECTION 14. Issuance of License - Contents.
Upon receiving the approval of departments to which
the application has been referred and, where necessary, the approval
of the City Manager, the Tax Administrator shall prepare and issue
the license showing upon the face of each license the following:
(a) name of business and location; (b) business license number;
(c) type of business by code; (d) date of issuance; (e) date
of expiration; (f) term of license; (g) business mailing
address; and (h) account number.
SECTION 15. Error in Fee Nonprejudicial.
In no case shall any mistake by any officer or employee
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ORDINANCE NO. 60
of the City in stating the amount of a license fee prevent or pre-
judice the collection by the City of what should be actually due
from any person carrying on a business subject to a license under
the provisions of the provisions of this Ordinance.
SECTION 16. Error in Terms Voids License.
The payment of any license fee required by this Ordin-
ance, its acceptance by the City, and the issuance of such license
to any person shall not entitle the holder thereof to carry on
any business called for by the license unless he has complied with
all requirements of this Ordinance, or to carry on any business at
any location contrary to the City's building and zoning regulations.
SECTION 17.
Unpaid Fees.
(a) No license for any succeeding, current or unexpired
license period shall knowingly be issued to any person who at
the time of making application for any license, is indebted to the
City for any unpaid license fee.
(b) No license or sticker, tag, plate or symbol shall
be issued, nor one which has been suspended or revoked shall be
reinstated or reissued, to any person, who at the time of apply-
ing therefore, is indebted to the City for any delinquent license
taxes, unless such person, with the consent of the Tax Adminis-
trator, enters into a written agreement with the City through the
Tax Administrator, to pay such delinquent taxes, plus 8% simple
annual interest upon the unpaid balance, in monthly installments,
or oftener, extending over a period of not to exceed one (1) year.
(c) In any agreement so entered into, such person
shall acknowledge the obligation owed to the City and agree that,
in the event of failure to make timely payment of any install-
ment, the whole amount unpaid shall become immediately due and
payable and that his current license shall be revocable by the
Tax Administrator upon thirty (30) days notice. In the event
legal action is brought by the City to enforce collection of any
amount included in the agreement, such person shall pay all
costs of suit incurred by the City or its assignee, including a
reasonable attorney's fee. The execution of such an agreement
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shall not prevent the prior accrual of penalties on unpaid bal-
ances at the rate provided herein above, but no penalties shall
accrue on account of taxes included in the agreement after the
execution of the agreement, and the payment of the first install-
ment and during such time as such person shall not be in breach
of the agreement.
SECTION 18. Duplicate License.
The Tax Administrator shall charge a fee of Three
Dollars ($3.00) for each duplicate license issued to replace
any license issued under the provision of this Ordinance, which
has been lost or destroyed, upon reasonable proof thereof.
SECTION 19. License Nontransferable.
Each license granted or issued under any provision of
this Ordinance shall authorize the licensee to transact or
carry on the business therein named, at the place therein
designated and at no other place, and the license shall not be
assignable or transferable.
When a person, as defined in this Ordinance, transfers
fifty percent (50%) or more of his interest, or more than fifty
percent (50%) of the stock or assets of a business operated at
a fixed place of business, regardless of whether the transfer is
made under such circumstances that the real or ultimate owner-
ship after the transfer is substantially similar to the owner-
ship existing before the transfer, the transferee shall first
report such change to the Tax Administrator and pay a registra-
tion transfer fee in the amount of Five Dollars ($5.00). For
purposes of this subsection, stockholders, bondholders, partner-
ships or other persons holding an interest in a corporation or
other entities herein defined to be a person are regarded as
having the real or ultimate ownership of such corporation or
other entity.
A change of location shall be allowed to the holder
of the license upon the payment to the Tax Administrator of the
sum of Three Dollars ($3.00) within thirty (30) days of such
change taking place. If licensee fails to apply for change of
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address within thirty (30) days of such change taking place, his
license shall terminate and expire at midnight of the thirtieth
(30th) day. In the event of any such termination of the tax or
fee paid by such licensee and in any application for a new
license, there shall be no proration of the required tax or fee.
SECTION 20. Posting and Keeping of License.
(a) Any licensee transacting and carrying on business
at a fixed place of business in the City shall keep the license
posted in a conspicuous place upon the premises where such busi-
ness is carried on.
(b) Any licensee transacting and carrying on business,
but not operating at a fixed place of business in the City shall
keep the license upon his person at all times while transacting
and carrying on the business for which it was issued.
(c) Whenever identifying stickers, tags, plates or symbols
have been issued for each vehicle, device, machine or other piece
of equipment, the identifying sticker, tag, plate or symbol; shall
not be removed from any vehicle, device, machine, or piece of
equipment kept in use, during the period for which the sticker, tag,
plate or symbol is issued.
SECTION 21.
Payment and Term of License.
All licenses as set forth in this Ordinance shall be
issued for the calendar year and shall expire on December 31, of
each year. Payment of the minimum Business License Tax shall
accompany an application for any new business
Renewals of busi-
ness licenses shall be paid on January 1, of each year and shall
be delinquent on February 15.
SECTION 22. Penalties for Delinauencv.
For failure to pay a license tax when due, the Tax
Administrator shall add a penalty of fifty percent (50%) of said
license tax to delinquent licenses on the fifteenth (15th) day of
the succeeding month after the due date thereof, and an additional
penalty of twenty-five percent (25%) shall be added thereto on
the fifteenth (15th) day of each succeeding month thereafter;
provided that the amount of such penalties shall not exceed one
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hundred percent (100%) of the license tax due.
SECTION 23. Penalties for Violation.
Any person violating any of the provisions of this
Ordinance or knowingly or intentionally misrepresenting to any
officer or employee of this City, any material fact in procuring
a business license or permit herein provided for shall be deemed
guilty of a misdemeanor, punishable by a fine of not more than
Five Hundred Dollars ($500.00), and imprisonment in the County
Jail for a period of not more than six (6) months. (Ref:
California Business and Professional Code, Article 3, Section
16240.)
SECTION 24. License Fee a Debt.
The amount of any license fee and penalty imposed by the
provisions of this Ordinance shall be deemed a debt to the City of
Palm Desert, and any person carrying on any business without first
having procured a license from the City to do so shall be liable
to an action in the name of the City in any court of competent
jurisdiction, for the amount of license fee and penalties imposed
on such business.
A penalty of fifty percent (50%) of the prescribed
license tax shall be imposed for operating without first procuring
a license.
SECTION 25.
Business Requiring Food Handling.
Where a business is required by law to have a food
handling permit, no license shall be issued until the Riverside
County Health Department, the City Building and Safety Department,
and the Fire Department have inspected and approved the premises.
SECTION 26.
Business Requiring Certificate of Occupancy.
All commercial, industrial, and miscellaneous buildings
constructed within the City which are to house a business requir-
ing a City license must have a Certificate of Occupancy issued
by the City Building and Safety Department before a license to
operate the business may be issued. Any existing buildings which
are structurally altered to house a business requiring a City
license must also have a Certificate of Occupancy issued by the
City Building and Safety Department before a license to operate
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said business may be issued.
SECTION 27. Refunds.
The Tax Administrator, with the approval of the City
Manager, may refund any license fee or penalty which he determines
was erroneously collected, but no license fee shall be refunded
if, prior to his application for a license, the applicant has
engaged in the business for which the license is sought.
SECTION 28.
Enforcement - Right of Entry.
(a) Enforcement: It shall be the duty of the Tax
Administrator to enforce each and all of the provisions of the
Ordinance, and the Chief of Police shall render such assistance
in its enforcement as may from time to time be required by the
Tax Administrator.
(b) Right of Entry: The Tax Administrator and each
and all of his assistants, and any police officer or City employee
whose job includes the inspection of the business license, shall
have the power and authority to enter, free of charge, and at
any reasonable time, any place of business required to be licensed
and demand an exhibition of its license certificate. Any person
having such license certificate theretofore issued in his possession
or under his control, who willfully fails to exhibit the same on
demand, shall constitute a misdemeanor and subject to the penal-
ties provided or by the provisions of this Ordinance.
SECTION 29. Extension of Time.
In addition to all other power conferred upon him, the
Tax Administrator shall have the power, for good cause shown, to
extend the time for filing any required sworn statement or applic-
ation for a period not to exceed thirty (30) days, and in such
case, to waive any penalty that would otherwise have accrued,
except that eight percent (8%) simple interest shall be added
to any tax determined to be payable.
SECTION 30. Appeal.
Any person aggieved by any decision of the Tax
Administrator with respect to the issuance or refusal to issue such
license may appeal to the City Council by filing a notice of appeal
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with the City Clerk. The City Council shall thereupon fix a time
and place for hearing by serving it personally or by depositing
it in the United States Mail at Palm Desert, California, postage
prepaid, addressed to such person at his last known address. The
Council shall have the authority to determine all questions raised
on such appeal. No such determination shall conflict with any
substantive provision of this Ordinance.
SECTION 31. Waiver or Reduction of Taxes or Penalties.
There shall be no deviation in fees, penalties, or due
dates, unless, specifically authorized by formal City Council
action, after written request by the applicant through the Tax
Administrator on forms provided by the City.
SECTION 32. Information Confidential.
It shall be unlawful for the Tax Administrator or any
person having an administrative duty under the provisions of this
Ordinance to make known in any manner whatever the business affairs,
operations or information obtained by an investigation of records
and equipment of any person or business or any other person
visited or examined in the discharge of official duty, or the
amount or source of income, profits, losses, expenditures or any
particular thereof set forth in any statement or to permit any
statement, or copy of any statement or any book containing any
abstract or particulars thereof, to be seen or examined by any
person; provided, however, that nothing in this Section shall be
construed to prevent the following:
(1) The disclosure to or the examination of records
and equipment by another City official, employee or agent for
collection of taxes for the sole purpose of administering or enforc-
ing any provisions of this chapter or collecting taxes imposed
hereunder;
(2) The disclosure of information to, or the examin-
ation of records by Federal or State officials, or the tax
officials of any city or county or the tax officials of the City
of Palm Desert, and its auditors if a reciprocal arrangement
exists or to a grand jury or a court of law, upon subpoena;
(3) The disclosure of information and results of
examination of records of particular taxpayers, or relating to
particular taxpayers, to a court of law in a proceeding brought to
determine the existence or amount of any business tax liability of
the particular taxpayers to the City;
(4) The disclosure after the filing of a written request
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to that effect to the taxpayer himself, or to his successors,
receivers, trustees, executors, administrators, assignees and
guarantors, if directly interested, of information as to the
items included in the measure of any paid tax, any unpaid tax or
amounts of tax required to be collected, interest and penalty;
further provided, however, that the City Attorney approve each
such disclosure and that the collector may refuse to make any
disclosure referred to in this paragraph when in his opinion the
public interest would suffer thereby;
(5) The disclosure of the names and addresses of
taxpayers pursuant to this chapter, and the general type of
nature of their business;
(6) The disclosure by way of public meeting or other-
wise of such information as be necessary to the City Council in
order to permit it to be fully advised as to the facts when a
taxpayer files a claim for refund of business taxes or submits
an offer of compromise with regard to a claim asserted against
him by the City for business taxes or when acting upon any other
matter;
(7) The disclosure of general statistics regarding
taxes collected or business done in the City.
SECTION 33. Verification of Statements and Records.
The correctness of tax computations, based upon state-
ments and records relating directly or indirectly to business
activity conducted within the City, shall be subject to verifi-
cation upon the recommendation of the Tax Administrator and
approval by the City Manager. The City is authorized to verify
the statements and records of any and all persons licensed to
conduct or carry on any business in the City.
All information relating to verification of statements
and records are confidential as stated in this Ordinance.
Any unauthorized disclosure or use of such inform-
ation by any officer or employee of the City shall constitute
a misdemeanor and such officer or employee shall be subject to
the penalty provisions of this Ordinance, in addition to any
other penalties provided by law.
-15-
ORDINANCE NO. 60
CHAPTER II
RATES
SECTION 34. Business License Tax Categories.
Category I Retail, wholesale sales, amusement and recreational
centers, services dealing directly with the public
and public utilities dealing in transmission or
transportation of water, electricity or gas.
Category II Industrial, manufacturing and research and develop-
ment firms and public utilities dealing in
communications.
Category III Professional establishments and those businesses
offering skilled services.
Category IV General engineering contractors, general building
contractors, swimming pool contractors, and all
sub or specialty contractors and builders.
Category V Any person conducting a business exclusively with
a vehicle.
Category VI Coin operated vending machines, laundry equipment,
businesses limited exclusively to renting, leasing
or operating.
Category VII Coin operated machines - generally.
Category VIII Boxing and wrestling exhibitions or sporting events,
carnivals, circus and menageries performances.
Category IX Soliciting, hawking, peddling.
Category X Auctioneering.
Category XI Bankrupt sales.
Category XII Real estate.
Category XIII Advertising - outdoor structures, billboards.
Category XIV Leasing or rental of room, unit, space, or other
similar living facilities.
Category XV Optional daily fees.
Category XVI Businesses not specifically mentioned.
CATEGORY I
Businesses included: Retail, wholesale, amusement and
recreational centers, and most businesses that deal directly with
the public. Public utilities dealing in the transmission or trans-
portation of water, electricity or gas. Coin operated vending
machines as defined elsewhere in this Chapter are omitted from
this Category.
-16-
ORDINANCE NO. 60
Rate Schedule:
GROSS RECEIPTS
Gross
Receipts to and including
$
40,000
$
50
(Over
$ 40,000
but
less
than
$
100,000)
$
59
(Over
$ 100,000
but
less
than
$
250,000)
$
91
(Over
$ 250,000
but
less
than
$
500,000)
$
151
(Over
$ 500,000
but
less
than
$
750,000)
$
226
(Over
$ 750,000
but
less
than
$
1,000,000)
$
301
(Over
$1,000,000
but
less
than
$
1,500,000)
$
376
(Over
$1,500,000
but
less
than
$
2,000,000)
$
451
(Over
$2,000,000
but
less
than
$
3,000,000)
$
563
(Over
$3,000,000
but
less
than
$
5,000,000)
$
788
(Over
$5,000,000
but
less
than
$
7,500,000)
$
1,126
(Over
$7,500,000
but
less
than
$10,000,000)
$
1,501
Computation of Fee:
1. The first $40,000
of
gross
receipts is taxed
at
a minimum of $50.
2. Gross receipts of over $40,000 and up to and including $1,000,000
taxed at the rate of $.30 per thousand applied to the mid -point
of each bracket.
3. Gross receipts of over $1,000,000 taxed at the rate of $.15 per
thousand applied to the mid -point of each bracket.
Type of activities: The following businesses and business activ-
ities shall be included in (Category I) together with any other
similar businesses:
Agricultural supply
Aircraft dealers and supply stores
Amusement and recreational centers, arcades, theatres,
golf course, tennis courts, bowling alley, etc.
Animal care
Awning and tent supply
Automobile dealers, new and used
Automobile renting or leasing
Automobile repair shops and garages
Automobile trailer dealers and trailer supply stores
Bakery
Blueprint shop
Boat and motorcycle dealers and supply stores
Building supplies
Candy, confectionery and nut stores
Child care centers (7 or more children)
Cigar stores and stands
Clubs - private or public
Dancing schools or academy
Department and dry good stores
Distributors
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ORDINANCE NO. 60
Drugstores
Dry cleaners and laundry
Eating and drinking places
Family apparel stores
Farm implement and construction equipment
Fine arts or music school
Fine arts stores
Florist shops
General merchandise and country stores
Gift shops
Grocery stores
Hardware and appliance stores
Hospitals, rest homes and sanitariums (7 or more patients)
Household and home furnishing stores
Janitorial supplies stores
Jewelry stores
Junk dealers and automobile wrecking
Liquor stores selling other than packaged liquor, such
as groceries and other staple goods
Lumber and builder material dealers
Mobile vehicle and mobile home dealers
Mobile vehicle and mobile home renting and leasing
Nurseries
Office, store, and school furniture and equipment stores
Paint, glass and wallpaper stores
Parking lot
Pawnbrokers and second hand dealers
Personal service shops (barber, beauty, reducing salons,
dressmaking and alteration shops)
Photographic equipment and supply stores
Photography studio
Plumbing and electrical supply stores
Printing, publishing or circulating and distributing
publications
Repair and hand trade shops
Schools (private, trade or business)
Service stations
Shoe stores
Sign shops
Specialty stores not elsewhere classified
Sporting goods stores and bicycle stores
Stationery and book stores
Transfer and storage
Trucks or trailer rental or leasing
Upholstery shop
Utilities: gas, water, electricity
Variety store
Warehouses
Welding shop
Women's apparel and accessories stores
CATEGORY II
Businesses included: Industrial, manufacturing and
research and development firms and those public utilities dealing
in the transportation or transmission of communications.
ORDINANCE NO. 60
Rate Schedule:
GROSS ANNUAL PAYROLL
Gross
Annual Payroll
to and including
$
40,000
$ 50
(Over
$ 40,000
but
less
than
$
100,000)
$ 73
(Over
$ 100,000
but
less
than
$
250,000)
$ 151
(Over
$ 250,000
but
less
than
$
500,000)
$ 301
(Over
$ 500,000
but
less
than
$
750,000)
$ 489
(Over
$ 750,000
but
less
than
$
1,000,000)
$ 676
(Over
$1,000,000
but
less
than
$
1,500,000)
$ 870
(Over
$1,500,000
but
less
than
$
2,000,000)
$1,070
(Over
$2,000,000
but
less
than
$
3,000,000)
$1,370
(Over
$3,000,000
but
less
than
$
5,000,000)
$1,970
(Over
$5,000,000
but
less
than
$
7,500,000)
$2,870
(Over
$7,500,000
but
less
than
$10,000,000)
$3,870
Computation of Fee:
1. The first $40,000
of
Gross Annual
Payroll is taxed
at a
minimum of $50.
2. Gross Annual
Payroll
over $40,000
and
up to and
including
$1,000,000 taxed at the rate of $.75 per thousand applied to
the midpoint of each bracket.
3. Gross Annual Payroll over $1,000,000 taxed at the rate of $.40
per thousand applied to the midpoint of each bracket.
CATEGORY III
Professional establishments and those businesses offer-
ing skilled services.
Rate: Minimum business license tax of $75 which includes one
professional and one nonprofessional employee engaged in
the business. A fee of $50 for each additional professional
who is a principal of the firm and engaged in said business
in the City or in an additional category of the firm. A
fee of $20 for each additional professional employee. A
fee of $5 for each additional nonprofessional employee.
Note: For purpose of this Ordinance "professional" is defined to
also include certified, licensed, technical or other
highly skilled persons.
Uption: professional establishments and those businesses in C atevory
III have the option under this Ordinance of using Category
I Tax Schedule, if they wish.
-19-
ORDINANCE NO
Professional and business establishments and skilled
services shall include, but not be limited to, the following:
Abstractor of titles
Accountants - all types
Agencies: advertising,
travel
Appraiser
Architect
Artist
Assayer
Assessor
Attorney -at -law
Auditor
Bacteriologist
Bookkeeping service
employment, public relations,
Broker - all types, except real estate
Chemist
Chiropodist
Chiropractor
Consultants - all types
Dealers in stocks, bonds, and other securities
Dental hygienist
Dental laboratory
Dental technician
Dentist
Designer or illustrator
Detective, detective agency
Draftsman
Drugless practitioner
Electrologist
Engineers - all types
Engraver
Entomologist
Escrow company
Finance and loan company
Geologist
Herbalist
Hypnotherapist
Interior decorator
Investment counselor
Landscape designer or architect
Lapidary
Lithographer
Masseuse and masseur
Medical laboratory
Mortician
Naturopath
Nurse
Oculist
Optician
Optometrist
Osteopath
Photographer
Physician
Physiotherapist
Piano tuner
Property management
Psychiatrist
Psycholigist
Public stenographer
Radiology
Roentgenologist
Savings and loan
Surgeon
Surveyor
Taxidermist
Termite inspector
-20-
ORDINANCE NO. 60
Tree removing, surgery, or trimming
Tutoring
Veterinarian
X-Ray technician
CATEGORY IV
Businesses included: General engineering contractors
(A); General building contractors (B-1); swimming pool contractors
(C-53); owner/builder and subcontractor.
(A) General engineering contractor (A); General build-
ing contractor (B-1); Swimming pool contractors
(C-53).
Rate: A minimum business license tax of $100 with
an additional job valuation fee of $.25 per
thousand dollars of job valuation as deter-
mined by building permit applications. The
job valuation fee shall be payable with the
issuance of the building permit.
(B) Owner/builder who builds any building, structure,
shop, store, or apartment for rent, lease, or
sale shall pay in accordance with subsection (A)
of this Category. The provisions of this Category
shall not apply to an owner of single residential
property improving structures thereon for the
exclusive occupancy of such owner and not offered
for sale, lease, or rent.
(C) Each general engineering contractor, general build-
ing contractor, swimming pool contractor, or
owner/builder shall furnish the City with a list
of each subcontractor under his control or dir-
ection, before the final inspection on a building
or structure shall be given by the Building and
Safety Department.
(D) Every person engaged in the business of plumbing
contractor (C-36), and electrical contractor (C-10).
Rate: A business license tax of $75.
(E) Every person engaged in the business of subcontractor
-21-
ORDINANCE NO. 60
or specialty contractor other than (C-53, C-36,
C-10).
Rate: A business license tax of $50.
(F) Additional tax for shop, store, or maintenance
service. In addition to the basic license tax
payable by a contractor as stated in the subdivision
of this Category above. Each contractor shall pay
a tax as stated in Categories I and V for any shop,
store, or maintenance service in connection or
conjunction with the contracting business.
CATEGORY V
Businesses included: Any person conducting a business
exclusively with a vehicle. Advertising vehicle, vehicle used
to deliver goods, wares, or merchandise of any kind, or any
person who provides any service by use of a vehicle.
Rate: Two rates are included in this Category:
(A) Any person conducting a business with a vehicle
from a fixed place of business in the City of Palm Desert shall
pay a minimum license tax of $50, which shall include the first
vehicle. Each additional vehicle will be $25.
(B) Any other person conducting business with a vehicle
who does not have a fixed place of business in Palm Desert will
pay a minimum tax of $75 for the first vehicle. Each additional
vehicle will be $40.
Option: Establishments falling within Category V (A)
have the option under this Ordinance of using
the Category I tax schedule, if they wish.
Business conducted with a vehicle shall include, but
not be limited to the following:
Ambulance service
Armored car service
Auto parts service
Bakery service
Cesspool service
Delivery service
Ditching or backhoe service (except contractors)
Driving school
Escort service
Gardener service
Guard and patrol service
-22-
ORDINANCE NO. 60
Home maintenance service
Janitorial service
Junk pick up service
Laundry and cleaning service
Locksmith service
Messenger service
Mobile car washing service
Mobile repair service - all types
Portable toilets
Searchlights
Sign painter
Swimming pool service
Taxicab
Tow truck
Water softener service
Window cleaning service
CATEGORY VI
Businesses included: Coin operated vending machines,
laundry equipment. Businesses limited exclusively to renting,
leasing or operating. Any person whose business is limited
exclusively to renting, leasing or operating:
1. Coin operated vending machines dispensing tangible
or intangible items, property, music, entertainment, recreation
or other services; or
2. Laundry equipment, whether or not coin operated,
but this Category shall not be deemed to include coin operated
laundry equipment for general use.
Rate: A rate of five percent (5%) of all gross
receipts actually derived from or directly
attributable to the business activities con-
ducted within the City.
Definition of "Gross Receipts" for the purpose of this
Category means all sums deposited in the machine or paid for the
use of the machines, from any source prior to the division, sub-
traction or distribution of any such monies, but shall not include
cash sums returned by the machines themselves to the customers.
CATEGORY VII
Businesses included: Coin operated machines - generally.
The provisions of this Category apply to the proprietor of any
established place of business who owns, possesses or maintains
any coin operated machines. These fees are in addition to any
other license fees required by this Ordinance.
-23-
ORDINANCE NO. 60
Rate:
$ 25 Amusement machine, kiddie ride, or pool table
not incidental to the original business license
$ 10 Beverage machine
$ 10 Food dispensing machine
$ 5 Laundry machine
$ 25 Photograph machine
$ 2 Postage stamp machine
$ 5 Service machine (soap, laundry, bags, etc.)
$ 25 For the first 25 one cent vending machines, and
$.50 for each machine over 25
$ 5 Per machine - any other machine requiring a coin
to open
Seizure of Unlicensed Coin Machines: In the event a
coin machine remains unlicensed thirty (30) days after first
notification, the City may seize such machines and hold them as
security for the payment of the license fee, and until license
is obtained or renewed, and in the event the person owning or
having control of possession of the machine, shall fail, within
a period of thirty (30) days, to obtain a license or pay any
license due, then in that event, the machine shall be disposed
of as follows:
The machine or machines or so many thereof
shall be sold to satisfy the amount of
license fees due the City and any machine
or machines not sold shall be returned to
the owner thereof; and provided further
that in the event the machine or machines
be sold for a sum less than the amount of
the license fee, then the operator of the
machines shall, nevertheless, remain liable
for the balance of such license fees due
and unpaid thereon.
CATEGORY VIII
Businesses included: Boxing or wrestling exhibitions,
or sporting events, carnivals, circus and menageries. The term
"circus" shall include any collection of animals, acrobats,
jugglers, magicians, slight -of -hand exhibitions, sideshows, and
similar attractions. The term "carnival" shall include any group
of attractions such as ball games, dice games, merry-go-rounds,
ship, ferris wheels, or other riding devices, freaks, dancing
show minstrels, or other like entertainments or games for which
IPME
ORDINANCE NO. 60
a charge is made for attending or playing or participating therein.
Rate: First Day $ 200
Each additional day $ 100
CATEGORY IX
Businesses included: Soliciting, hawking, peddling.
(a) Solicits either by sample or otherwise the pur-
chase of goods, ware, merchandise, services,
magazines, periodicals, or other publications
(to secure advertisements), or subscriptions for
the same; or
(b) Distributes goods, wares, merchandise or services
of any kind from house to house, or upon any street,
sidewalk, alley, or in any park or public place in
the City; or
(c) Offers to any person, or distributes to any person,
any coupon, certificate, ticket or card which is
redeemable in goods, wares, merchandise or ser-
vices of any kind.
The foregoing licensing requirement shall not be
applicable to persons engaged in the activities of soliciting
subscription for, selling, or distributing regularly published
newspapers, or to any person engaged in, or acting as an agent for
any business entitled to an exemption from local taxation by
reason if it is being engaged in interstate commerce.
Rate: The license fee shall be $200 annually for each
individual.
Exemption: Any business that assigned its business
through the use of persons assigned as solicitors to established
and defined routes regularly serviced by solicitors may pay
according to Category I based on total annual gross receipts
derived from all orders solicited by such solicitors.
CATEGORY X
Businesses included: "Auctioneering." Auctioneering
means and includes any person who offers to sell or a sale of
any property, real or personal, tangible, or intangible, by
public outcry to the highest bidder or to any bidder when instead
of asking the bidders to make increasingly higher bids for an
article or articles of merchandise, the seller or auctioneer
announces a price at which he will sell one or more articles of
merchandise and then, if no sale occurs, increasingly adds
-25-
ORDINANCE NO. 60
additional articles of merchandise to those originally offered,
with or without varying the price, or reduces the price on the
originally offered article or articles.
Rate: $50 per day or $300 quarterly.
Exemption: Auction required by law.
1. Exemption - when an auction in connection with a
duly licensed existing business is required by
law no tax will be applied, providing, however,
that the licensee shall notify the Tax Adminis-
trator in writing prior to the auction, regarding
time and place.
2. Exemption - government legal sales. No license
tax shall be applied for selling at public sale of
goods or property belonging to the United States
or to the state or county, or by virtue of process
issued by any state or county, or by virtue of
process issued by any state or federal court or by
the legally appointed administrator or executor of
an estate.
CATEGORY XI
Businesses included: Bankrupt sales, etc., every per-
son engaged in the business of owning, opening, establishing,
managing, operating, maintaining, or having charge of any tem-
porary location of business of any kind for the selling of any
insolvent, bankrupt, fire damage or other similar goods, wares
or merchandise, and every itinerant or transient merchant having
a temporary place of business, but not having any continuous or
permanent place of business in the City who sells or offers for
sale, any insolvent, bankrupt, fire damaged or other goods, wares
or merchandise.
Rate: $100 per day.
Exemption: This Category shall not apply to any stock
of goods owned by any person having a regular, fixed place of
business in the City, whose stock has been damaged by fire,
water, wreck, or business failure.
CATEGORY XII
(A) Every person engaged in the occupation of real
estate broker and/or engaged in or carrying on the business of
lending or selling real estate on commission, or making loans
for others on commission, collecting rents as agents for others,
in the transfer or sale of real estate in whatsoever manner the
-26-
ORDINANCE NO. 60
transactions are conducted, other than those carrying on the
business of banking.
(B) Every person engaged in or carrying on the
occupation of real estate salesman.
Rate: (1) $75 for a real estate broker, and $25
for real estate salesman, and $5 for
each non -licensed employee operating
from a fixed place of business within
Palm Desert.
(2) $100 for a real estate broker who does
not operate from a fixed place of business
with Palm Desert.
CATEGORY XIII
Advertising - outdoor structures, billboards.
Businesses included: Every person engaged in the business of
constructing, erecting, installing, maintaining, or operating
or renting any outdoor structure, billboard, sign, painted sign
or structures, signboards, benches or similar devices used for
the purpose of exhibiting or displaying advertising matter
thereon.
Rate: $50 plus $5 for each single face sign and $10
for each double fact sign located within the
City limits.
This Category shall not apply to signs affixed to a
building in which a business is being operated, which signs refer
only to such businesses, nor to "for sale" or "for rent" signs
or real estate.
CATEGORY XIV
Businesses included: Every person engaged in the
business of operating a hotel, motel, apartment complex, rooming
house, spaces in any trailer or mobile home park, or recreational
vehicle park, or any other similar type of lease or rented living
facilities of three (3) or more units or spaces.
Rate: $50 for three (3) to five (5) units or spaces,
plus $3 for every unit or space over five (5).
-27-
ORDINANCE NO. 60
CATEGORY XV
Optional daily fixed fee license tax basis. When any
of the following is conducted as or at a commercial activity, or
public and private institution, open to all or parts of the gen-
eral public, whether or not associated with another activity
such as a convention, exhibition, showing or other gathering or
event, the person conducting the business may, at his option, be
taxed on a daily fixed fee basis for the following business
activities, in lieu of longer term tax bases, and at the following
rates:
(1) TEMPORARY RETAIL SALES. For the first four (4)
booth or individuals selling outside booths,
$25 per day. For each additional booth or
individual selling outside any booth, $1.00
per day;
(2) EXHIBITS OR SHOWS. Antiques, coin, furniture,
travelogues, etc., not classified elsewhere at
a higher daily rate, where a charge is made
for admittance, but no sales are made, $25.00
per day;
(3) TEMPORARY OR OCCASIONAL SEMINARS, SCHOOLS,
CLASSES, LECTURES, AND TRAVELING THEATRICAL PER-
FORMANCES, ETC. Where a charge is made, there-
fore, $25.00 per day.
CATEGORY XVI
Businesses included: Fee for businesses not specific-
ally mentioned. It is the intent and purpose of this Ordinance
to license, for revenue, as herein set forth, all business
activities conducted within this City, and if an application
for a license is made for any business not specifically
referred to herein or not included in any of the provisions
hereof fixing license fees, the Tax Administrator shall deter-
mine the fee applicable. If an appeal is made, it shall be
submitted to the City Manager for final determination.
The City Clerk of the City of Palm Desert is hereby
directed to cause this Ordinance to be posted in three (3)
public places in accordance with Resolution No. 74-17 and
Section 36933 of the Government Code of the State of California.
ORDINANCE NO. 60
PASSED, APPROVED and ADOPTED this 5th day of
December , 1974, by the City Council of the City of Palm
Desert, California, by the following vote:
AYES: Aston; Benson; Brush; McPherson; Clark
NOES: None
ABSENT: None
ATTEST:
R EY U• , City C erk
City of Palm Desert, California
-29-