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ORD 027 ORDINANCE NO. 27 AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES LICENSING THE TRANSACTION AND CARRYING ON OF CERTAIN BUSINESSES, TRADES, PROFESSIONS, CALL- INGS AND OCCUPATIONS FOR THE PURPOSE OF RAISING MUNICIPAL REVENUE, PROVIDING A PENALTY FOR VIO- LATIONS THEREOF, RENUMBERING CERTAIN SECTIONS AND AMENDING THE MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES ORDAIN AS FOLLOWS: Section 1. The Rancho Palos Verdes Municipal Code is hereby amended by adding thereto a new Chapter 4 of Article VI , and such chapter is hereby adopted to read: "Chapter 4. Business Licenses. 6400 . Short Title. This Chapter may be cited and referred to as the Business License Ordinance. 6401. Definitions. As used in this Chapter, the words defined in this section shall have meanings as follows: (a) 'Persons ' includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massa- chusetts, business, or common law trusts, societies, and individuals transacting and carrying on any busi- ness in the City, other than as an employee. (b) 'City' shall mean the City of Rancho Palos Verdes, a municipal corporation of the State of Cali- fornia, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincor- porated form. (c) 'Business ' includes professions, trades, and occupations and all and every kind of calling whether or not carried on for profit. (d) 'Gross Receipts ' shall include the total of amounts actually received or receivable from sales and the total amounts 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. 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) Credit allowed on property accepted as part of the purchase price and which property may later be sold; (3) Any tax required by law to le included or added to the purchase price and collected from the consumer or purchaser; -1- Ordinance No. 27 (4) Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit; (5) 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; (6) That portion of the receipts of a general con- tractor which represents payments to subcontractors, pro- vided that such subcontractors are licensed under this chapter, and provided the general contractor furnishes the Collector with the names and addresses of the subcon- tractors and the amounts paid each subcontractor; (7) Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded; (8) As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker; (9) 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 Divi- sion 2 of the Revenue and Taxation Code of the State of California; (10) As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code if paid by the dealer or collected by him from the consumer or purchaser. (11) As to a public utility or cable television company holding a franchise granted by the City of Rancho Palos Verdes under the Franchise Act of 1937, that por- tion of the receipts of such public utility or company upon which a franchise tax shall be computed and paid to the City under the provisions of said Act and the ordi- nance of the City granting such franchise. (e) 'Sale' shall include the transfer, in any man- ner or by any means whatsoever, of title to property for a consideration; the serving, supplying, or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The fore- going definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law. (f) 'Sworn Statement' shall mean an affidavit sworn to or before a person authorized to take oaths, or a declaration or certification made under penalty of perjury. (g) 'Collector' shall mean the city tax collector, finance director or other city officer charged with the administration of this Chapter. -2- Ordinance No. 27 6402 . Revenue Measure. This Chapter is enacted solely to raise revenue for municipal purposes, and is not intended for regulation. 6403. Effect on Other Ordinances. Persons required to pay a license tax for transacting and carry- ing on any business under this Chapter shall, except as otherwise specifically provided herein, not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordi- nance of the City, and shall remain subject to the regu- latory provisions of other ordinances. 6404. License and Tax Payment Required. There are hereby imposed upon the businesses, trades, professions, callings and occupations specified in this Chapter license taxes in the amounts hereinafter prescribed effective upon the effective date hereof. It shall be unlawful for any person to transact and carry on any business, trade, pro- fession, calling or occupation in the City without first having procured a license from said City so to do and paying the tax hereinafter prescribed or without comply- ing with any and all applicable provisions of this Chap- ter. This section shall not be construed to require any person to obtain a license prior to doing business within the City if such requirement conflicts with applicable statutes of the United States or of the State of Califor- nia. Persons not so required to obtain a license prior to doing business within the City nevertheless shall be liable for payment of the tax imposed by this Chapter. 6405. Branch Establishments. A separate license must be obtained for each branch establishment or loca- tion of the business transacted and carried on and for each separate type of business at the same location, 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; provided that warehouses and distributing plants used in connection with or incidental to a business licensed under the provisions of this Chapter shall not be deemed to be separate places of business or branch establish- ments; and provided further that any person conducting two or more types of businesses at the same location and under the same management, or at different locations, but which businesses use a single set or integrated set of books and records, may, at his option, pay only one tax calculated on all gross receipts of the businesses under the schedule that applies to the type of business of such person which requires the highest percentage pay- ment on such gross receipts, except that a license fee of $5. 00 for each additional branch or location shall be paid upon issuance. 6406. Evidence of Doing Business. When any person shall by use of signs, circulars, cards, telephone book, 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 Collector that he is not conducting a business in the City, after being requested to do so by the Collector, then these facts shall be considered prima facie evi- dence that he is conducting a business in the City. -3- Ordinance No. 27 6407. Constitutional Apportionment. None of the license taxes provided for by this Chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection or due process clause of the Constitution of the United States or the Constitution of the State of California. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he may apply to the Collector 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 this method of business and the gross volume or estimated gross volume of business and such other information as the Collector may deem necessary in order to determine the extent, if any, of such undue burden or violation. The Collector 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 non-dis- 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. In fixing the license tax to be charged, the Collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will assure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this Chapter. Should the Collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant ' s business in the City, or at the end of each three-month period, a sworn state- ment of the gross receipts and pay the amount of license tax therefor, provided that no additional license tax during any one calendar year shall be required after the licensee shall have paid an amount equal to the annual license tax as prescribed in this Chapter. 6408. Exemptions. . Nothing in this Chapter shall be deemed or construed to apply to any person transact- ing 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 Collector 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 Chapter. The Collector 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 Chapter. The Collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any -4- Ordinance No. 27 license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein. 6409 . Contents of License. Every person required to have a license under the provisions of this Chapter shall make application as hereinafter prescribed for the same to the Collector of the City, and upon the pay- ment of the prescribed license tax the Collector shall issue to such person a license which shall contain the following information: (1) The name of the person to whom the license is issued; (2) The business licensed; (3) The place where such business is to be transacted and carried on; (4) The date of the expiration of such license; and (5) Such other information as may be necessary for the enforcement of the provisions of this Chapter. Whenever the tax imposed under the provisions of this Chapter is measured by the number of vehicles, devices, machines, or other pieces of equipment used, or whenever the license tax is measured by the gross receipts from the operation of such items, the Collector shall issue only one license; provided that he may issue for each tax period for which the license tax has been paid one identification sticker, tag, plate, or symbol for each item included in the measure of the tax or used in a business where the tax is measured by the gross receipts from such items. 6410. Application - First License. Upon a person making application for the first license to be issued here- under for the applicant' s business or for a newly established business, such person shall furnish to the Collector a sworn statement, upon a form provided by the Collector, setting forth the following information: (1) The exact nature or kind of business for which a license is requested; (2) The place where such business is to be carried on, and if the same is not to be carried on at any permanent place of business, the places of residences of the owners of same; (3) In the event that application is made for the issu- ance of a license to a person doing business under a ficti- tious name, the application shall set forth the names and places of residences of those owning said business; (4) In the event that the application is made for the issuance of a license to a corporation or a partnership, the application shall set forth the names and places of residence of the officers or partners thereof; (5) In all cases where the amount of license tax to be paid is measured by gross receipts or by the number of dwelling units, of square feet of commercial or industrial buildings constructed as herein provided, or by the number of -5- Ordinance No. 27 vehicles used or other computaion,. count or similar cri- teria, the application shall set forth such information as may be therein required and as may be necessary to determine the amount of the license tax to be paid by the applicant; (6) Any further information which the Collector may require to enable him toissue the type of license applied for; If the amount of the license tax to be paid by the applicant is measured by gross receipts or by the number of dwelling units or square feet of commercial or indus- trial buildings constructed as herein provided, or by the number of vehicles used or other computation, count or similar criteria, he shall estimate the gross receipts or number of dwelling units or number of square feet of com- mercial or industrial buildings, or the number of vehicles to be used or other criteria, respectively, for the period to be covered by the license to be issued. Such estimate, if accepted by the Collector as reasonable, shall be used in determining the amount of license tax to be paid by the applicant; provided, however, the amount of the license tax so determined shall be tentative only, and such person shall, within thirty (3 0) days after the expiration of the period for which such license was issued, furnish the Collector with a sworn statement, upon a form furnished by the Collector, showing the gross receipts or the required facts as to number of dwelling units or square feet of com- mercial or industrial buildings, or number of vehicles or other criteria, respectively, during the period of such license, and the license tax for such period shall be finally ascertained and paid in the manner provided by this Chapter for the ascertaining and paying of renewal license taxes for businesses, after deducting from the payment found to be due, the amount paid at the time such first license was issued. The Collector shall not issue to any such person another license for the same , or any other business, until such per- son shall have furnished to him the sworn statement and paid the license tax as herein required. 6411. Renewal License . In all cases, the applicant for the renewal of a license shall submit to the Collector for his guidance in ascertaining the amount of the license tax to be paid by the applicant, a sworn statement, upon a form to be provided by the Collector, setting forth such information concerning the applicant's business during the preceding year as may be required by the Collector to enable him to ascertain the amount of the license tax to be paid by said applicant pursuant to the provisions of this Chapter. 6412 . Statements and Records. No statements shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the City from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the Collector, his deputies, or authorized employees of the City, who are hereby authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee due. -6- Ordinance No. 27 All persons subject to the provisions of this Chapter shall keep complete records of business transactions, in- cluding sales, receipts, purchases, and other expenditures, and the number of dwelling units and number of square feet of commercial and industrial buildings constructed, if applicable, and shall retain all such records for examination by the Collector. Such records shall be maintained for a period of at least three years. No person required to keep records under this section shall refuse to allow authorized representatives of the Collector to examine said records at reasonable times and places. 6413. Information Confidential. It shall be unlawful for the Collector or any person having an administrative duty under the provisions of this Chapter to make known in any manner whatever the bus.ine s s off airs operations or information obtained by an investigation of records and equipment of any person required to obtain a license , or pay a license tax, 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 hereof,, or the number of dwelling units or the number of square feet of commercial oindustrial buildings constructed or number of vehicles or other criteria for measurement of the tax set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person. Provided that nothing in this section shall be construed to prevent: (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 ad- ministering or enforcing 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 another city or county, or city and county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena; (3) The disclosure of information and results of exam- ination 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 license tax liability of the particular taxpayers to the City; (4) The disclosure after the filing of a written re- quest to that effect, to the taxpayer himself, or to his successors, receivers , trustees, executors, administrators, assignees and guarantors, if directly interested, of inform- ation as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be col- lected, interest and penalties; further provided, however, that the City Attorney approves each such disclosure and that the Collector may refuse to make any disclosure refer- red to in this paragraph when in his opinion the public interest would suffer thereby. (5) The disclosure of the names and addresses of persons to whom licenses have been issued, and the gen- eral type or nature of their business; (6) The disclosure by way of public meeting or other- wise of such information as may be necessary to the City Council in order to permit it to be fully advised as to _7_ Ordinance No. 27 the facts when a taxpayer files a claim for refund of license taxes, or submits an offer of compromise with regard to a claim asserted against him by the City for license taxes , or when acting upon any other matter. (7) The disclosure of general statistics regard- ing taxes collected or business done in the City. 6414 . Failure to File Statement or Corrected State- ment._ If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the Collector he fails to file a corrected state- ment, or if any person subject to the tax imposed by this Chapter fails to apply for a license, the Collector may determine the amount of license tax due from such person by means of such information as he may be able to obtain. If the Collector is not satisfied with the informa- tion supplied in statements or applications filed, he may determine the amount of any license tax due by means of any information he may be able to obtain. If such a determination is made the Collector shall give a notice of the amount so assessed by serving it personally or by depositing it in a branch of the United States Post Office in Los Angeles County, California, postage prepaid, addressed to the person so assessed at his last known address. Such person may, within fifteen (15) days after the mailing or serving of such notice, make application in writing to the Collector for a hear- ing on the amount of the license tax. If such application is made, the Collector shall cause the matter to be set for hearing within thirty (3 0) days before the City Council. The Collector shall give at least ten (10) days ' notice to such person of the time and place of hearing in the manner prescribed above for serving notices of assessment. The Council shall consider all evidence produced, and shall make findings thereon, which shall be final. Notice of such findings shall be served upon the applicant in the manner prescribed above for serving notices of assessment. 6415 . Appeal. Any person aggrieved by any decision of the Collector with respect to the issuance or refusal to issue such license may appeal to the Council by filing a notice of appeal with the Clerk of the Council and de- positing the amount of disputed license tax with the Collector. The Council shall thereupon fix a time and place of hearing by serving such notice personally or by depositing it in a branch of the United States Post Office in Los Angeles County, California, postage prepaid, addressed to such person at his last known address. The Council shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any sub- stantive provision of this Chapter. 6416 . Additional Power of Collector. In addition to all other power conferred upon him, the Collector shall have the power, for good cause shown, to extend the time for filing any required sworn statement or application for a period not exceeding thirty (30) days, and in such case to waive any penalty that would otherwise have accrued, except that 7% simple interest shall be added to any tax determined to be payable. -8 Ordinance No. 27 6417. License Nontransferable: Changed Location and Ownership. No license issued pursuant to this Chap- ter shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a business at a particular place, such licensee may upon application therefor and paying a fee of $20 . 00 have the license amended to authorize the transacting and carrying on of such business under said license at some other loca- tion to which the business is or is to be moved. Provided further, that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer, shall not be prohibited by this section. For the purpose of this section stockholders, bondholders, partnerships, or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corpora- tion or other entity. 6418. Duplicate License. A duplicate license may be issued by the Collector to replace any license previ- ously issued hereunder which has been lost or destroyed upon the licensee filing statement of such fact, and at the time of filing such statement paying to the Collector a duplicate license fee of $10 . 00. 6419 . Posting and Keeping Licenses. (a) Any licensee transacting and carrying on busi- ness at a fixed place of business in the City shall keep the license posted in a conspicuous place upon the prem- ises where such business is carried on. (b) Any licensee transacting and carrying on busi- ness 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 is issued. (c) Whenever identifying stickers, tags, plates, or symbols have been issued for each vehicle, device, machine, or other piece of equipment included in the measure of a license tax, the person to whom such stickers, tags, plates, or symbols have been issued shall keep firmly affixed upon each vehicle, device, machine, or piece of equipment the identifying sticker, tag, plate, or symbol which has been issued therefor at such locations as are designated by the Collector. Such 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. (d) No person shall fail to affix as required herein any identifying sticker, tag, plate, or symbol to the vehicle, device, machine, or piece of equipment, for which it has been issued at the location designated by the Collector, or to give away, sell,. or transfer such identifying sticker, tag, plate, or symbol to another person, or to permit its use by another person. 6420. License Tax - How and When Payable. Unless otherwise specifically provided, all annual license taxes, under the provisions of this Chapter, shall be due and payable in advance on the first day of January of each year, and if not paid shall become delinquent -9- Ordinance No. 27 on the first day of February of such year; provided that license taxes covering new operations, commenced after the first day of January, may be prorated as of the first day of the quarter in which such new operation is commenced for the balance of the license period; and fur- ther provided, that license taxes for the portion of 1974 from the effective date hereof to December 31, 1974 shall be due and payable on May 1, 1974, and if not paid shall become delinquent on June 1, 1974 . Except as otherwise herein provided, license taxes, other than annual, required hereunder shall be due and payable as follows: (a) Semi-annual license taxes, measured by gross receipts, due on the first day of January and the first day of July of each year, delinquent 16 days thereafter; (b) Quarterly license taxes, measured by gross receipts, due on the first day of January, April, July and October of each year, delinquent 16 days thereafter; (c) Monthly license taxes, measured by gross receipts, due on the first day of each and every month, delinquent 11 days thereafter; (d) Weekly flat-rate license taxes due on Monday of each week in advance, delinquent 3 days thereafter; (e) Daily flat-rate license taxes due each day in advance, delinquent 1 day thereafter; (f) Other flat-rate license taxes are payable in advance on the first day of business and thereafter on the first day of any applicable period and delinquent on expiration of like periods as hereinabove provided in this section 6420 . 6421 . Delinquent Taxes - Penalties -Installment Payment. For failure to pay a license tax when due, the Collector shall add a penalty of 5% of said license tax on the delinquency date and a like penalty upon the expiration of each like period thereafter, after the due date thereof, providing that the amount of such pen- alty to be added shall in no event exceed 50% of the amount of the license tax due. The Collector may waive the penalty on proof satisfactory to the Collector of absence of notice of the accrual of the tax. No license or sticker, tag, plate, or symbol shall be issued, nor shall one which has been suspended or revoked be reinstated or reissued, to any person, who at the time of applying therefor is indebted to the City for any delinquent license taxes, unless such per- son, with the consent of the Collector, enters into a written agreement with the City, through the Collector, to pay such delinquent taxes, plus 7% simple annual interest upon the unpaid balance, in monthly install- ments, or oftener, extending over a period of not to exceed one (1) year. 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 installment, the whole amount unpaid shall become immediately due and payable and that his current license shall be revocable by the Collector upon thirty (30) -10- Ordinance No. 27 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 reason- able attorney' s fee. The execution of such an agreement shall not prevent the prior accrual of penalties on unpaid balances at the rate provided hereinabove, but no penalties shall accrue on account of taxes included in the agreement after the execution of the agreement and during such time as such person shall not be in breach of the agreement. 6422 . Refunds of Overpayments. No refund of an overpayment of taxes imposed by this Chapter shall be allowed in whole or in part unless a claim for refund is filed with the Collector within a period of one (1) year from the last day of the calendar month following the period for which the overpayment was made, and all such claims for refund of the amount of the overpayment must be filed with the Collector on forms furnished by him and in the manner prescribed by him. Upon the filing of such a claim and when he determines that an overpayment has been made, the Collector may refund the amount over- paid. Any person aggrieved by the decision of the Collec- tor may appeal to the City Council in the manner provided in section 6415 hereof. 6423. License Tax Gross Receipts. Except as expressly provided herein, or in section 6424 hereof or as otherwise specifically provided in this Chapter, every person who engages in business at a fixed place of busi- ness within the City shall pay a license tax based upon gross receipts at the following rates and in the follow- ing classifications: 6423. 1 Classification "A" . Wholesale Sales and Automobile Sales. (Annual) Manufacturing and selling at wholesale, sales at wholesale, and sales of automobiles: Minimum tax $20 . 00 for the first $50, 000. 00 of gross receipts or fractional part thereof, and in addition thereto $0. 30 for each $1,000 .00 or fractional part thereof of gross receipts in excess of $50 , 000. 00 . 6423. 2 Classification "B" . Retail Sales, General Services and Other Businesses. (Annual) Minimum tax $20 . 00 for the first $50, 000. 00 of gross receipts or fractional part thereof, and in addition thereto $0. 30 for each $1,000 . 00 or fractional part thereof of gross receipts in excess of $50, 000 . 00 . 6423. 3 Classification "C" . Professions and Specified Services. (Annual) Minimum tax $20 . 00 for the first $50 , 000 . 00 of gross receipts or fractional part thereof, and in addition thereto $0 .30 for each $1 ,000. 00 or fractional part thereof of gross receipts in excess of $50 , 000 . 00. 6423.4 Classification "D" . Commercial Rentals. (Annual) Minimum tax $20 . 00 for the first $50 ,000 . 00 of gross receipts or fractional part thereof, and in addition thereto $0 .30 for each $1,000. 00 or -11- Ordinance No. 27 fractional part thereof of gross receipts in excess of $50 ,000. 00 . 6423. 5 Classification "E" . Residential Rental Business. (Annual) No. of Units (excluding manager' s unit) Annual Tax 3 $ 30 . 00 4 40 . 00 5 50. 00 6 60 . 00 7 70. 00 8 80. 00 9 90. 00 10 or more 100. 00 plus $0 . 30 for each $1,000 . 00 or frac- tional part thereof of gross receipts over $50, 000 . 00 . 6423. 6 Classification "F" . Contractors. (Annual) 6423. 6 .1 General Building Contractor and Building Contractor (Speculative) ; State License Classification: A and B-1. (Annual) $ 100. 00 6423 . 6 . 2 Plumbing, Gas, Sewer and Electrical Con- tractor; State License Classification: C-10, C-36 and C-42 . (Annual) $ 50. 00 6423. 6 .3 Subcontractors and Specialty Contractor; All Other Contractors. (Annual) $ 50 .00 6424 . License Tax Builders, Developers. Every person who engages in a business specified in this sec- tion 6424, including the subsections thereof, at a fixed place of business within the City shall pay a license tax to be computed in the manner and as set forth in the following classifications: 6424 . 1 Classification "G" . Residential Builders, Developers. (Annual) Includes all persons engaged in the business of building, construction or development of new residential housing in the City, whether performed or accomplished in whole or in part by employees, contractors, subcontractors or others, whether for, or for the account of, the builder or developer or for others, for human occupancy, and whe- ther for sale, rental, lease, or otherwise. Minimum tax $20. 00 per year; $500 . 00 per bedroom not to exceed a maximum of $1, 000. 00 per dwelling unit constructed in the City per year. "Dwelling unit" shall mean and include any structure or dwelling designed for human occupancy as a place of abode, which has one or more rooms with or without a kitchen or cooking facilities, except a "hotel" as defined in Section 139 .2 of the Los Angeles County Ordi- nance No. 1494 , Zoning Ordinance. "Bedroom" shall mean and include any room in a dwelling unit which is deter- mined by the City Engineer to be intended, designed or constructed so as to be suitable for use to accommodate the sleeping needs of a resident or guest of a dwelling unit. -12- Ordinance No . 27 6424.2 Classification"H" . Commercial, Industrial Builders, Developers. (Annual) Includes all persons engaged in the business of build- ing, construction or development of new commercial or in- dustrial buildings in the City, whether performed or accom- plished in whole or in part by employees, contractors, sub- contractors or others, whether for, or for the account of, the builder or developer or for others, and whether for sale, rental, lease or otherwise. Commercial or industrial construction shall include all construction which is deter- mined by the City Engineer to be designed or constructed for use or occupancy for any purpose other than for human occupancy as a dwelling or place of abode , or structures or facilities incidental or ancillary thereto. Minimum tax $20 . 00 per year; $0. 30. per square foot of gross building area constructed in the City per year. 6424 . 3 Computation of Tax. The amount of tax payable under the provisions of sub-sections 6424 .1 and 6424 .2 shall be measured by computing the number of bedrooms and dwelling units as provided in subsection 6424 . 1, and the number of square feet of commercial and industrial building as provided in subsection 6424 . 2 , respectively, as follows: (a) If a building permit is issued during the year for such construction the number of bedrooms, dwelling units, and/or square feet of commercial or industrial construction, as the case may be , for which such permits are issued shall be included; (b) If a certificate of occupancy is issued during the year for any such construction the number of bedrooms, dwelling units, and/or square feet of commercial or industrial construction, as the case may be, for which any such certificate of occupancy is so issued, shall be included, excluding there- from, however, any construction theretofore included in the computation by virtue of the issuance of a building permit by the City as provided in (a) above; (c) If construction is in progress during the year pursuant to a building permit issued before the beginning of the year, and such construction is not completed so that a certificate of occupancy issues with respect thereto during the year, and by virtue thereof such construction has not been included in computing the measurement of the tax under the pro- visions of either (a) or (b) of this subsection 6424 .3, then the number of bedrooms, dwelling units or square feet of commercial or industrial building, as the case may be, under construction, at any time during the year shall be included in computing such tax measure for the year; (d) In no event shall any construction be included more than once in computing the measure of tax pay- able hereunder. 6424. 4 Exclusions, Exemptions , Credits. (a) The amounts of all excise taxes which shall have -13- Ordinance No. 27 been unconditionally and finally paid to the City by any builder or developer under the provisions of Chapter 7 of Article VI of the Rancho Palos Verdes Municipal Code with respect to any residential, commer- cial or industrial construction or occupancy, shall be excluded from the amount of tax which would otherwise be payable by such builder or developer under the pro- visions of this section 6424. It is the intent of this subsection that in no event shall double taxation be imposed upon a builder or developer by virtue of the provisions of this section 6424 and of Article VI of this Code. (b) A builder or developer who shall pay the license tax imposed by this section 6424 shall not be required to pay the license tax imposed upon contractors under the provisions of section 6423 with respect to any residential, commercial or indus- trial construction included in the measure of tax imposed by this section 6424. 6425. Classification "I" . Commercial Vehicles (Annual) 6425. 1 Taxicabs. The minimum license fee for a taxicab business shall be $70 per year. There shall be an additional license tax of $35 per year for each taxicab in excess of two which trans- ports persons for hire upon or over the public strees of the City. 6425 . 2 Refuse Operator. The minimum license tax for a refuse, rubbish and/or garbage collection and removal business shall be $150 per year. There shall be an additional license tax of $150 per year for each collection truck in excess of one which utilizes the public streets of the City for refuse, rubbish or garbage collection or removal. 6425 . 3 Pick-Up, Delivery Vehicles . Every person engaged in any business not otherwise spec- ifically taxed by other provisions of this Chapter who uses any motor vehicle over the public streets of the City for picking up, transporting and/or delivering any goods, wares or merchandise in the course of such business shall pay a minimum license tax of $20 per year. There shall be an addi- tional license tax of $20 per year for each such motor vehicle in excess of one utilizing the public streets of the City for such business. 6426 . Classification "J" . Advertising. (Annual) Every person engaged in the business of displaying ad- vertising on bus stop benches in the City shall pay a minimum license tax of $25 per year plus $5 for each bench within the City used for such advertising in excess of five such benches. 6427. Classification "K" . Outside Business. (a) General. Every person engaged in a business in Classification "A" , "B" or "C" , as defined in this Chapter, -14- Ordinance No. 27 and not having a fixed place of business within the City, shall pay a license tax equal to twice the amount of the license tax imposed on businesses within said classifications having a fixed place of business within the City, except as provided in sub- section (b) of this section. (b) Itinerant Street Vendors. Itinerant street vendors, hawkers, peddlers, itinerant merchants and other transient vendors of merchandise shall pay a license tax of $150, plus an additional tax of $50 for each wagon, cart, vehicle or temporary location in excess of one, within the City. 6428. Reclassification. In any case where a licensee or an applicant for a license believes that his individual business is not as- signed to the proper classification under this Chapter because of circumstances peculiar to it, as distinguished from other businesses of the same kind, he may apply to the Collector for reclassification. Such application shall con- tain such information as the Collector may deem necessary and require in order to determine whether the applicant' s individual business is properly classified. The Collector shall then conduct an investigation, following which he shall assign the applicant' s individual business to the classifica- tion shown to be proper on the basis of such investigation. The proper classification is that classification which, in the opinion of the Collector, most nearly fits the applicant' s individual business. The reclassification shall not be retro- active , but shall apply at the time of the next regularly ensuing calculation of the applicant' s tax. No business shall be classified more than once in one (1) year. The Collector shall notify the applicant of the action taken on the application for reclassification. Such notice shall be given by serving it personally or by deposit- ing it in a United States Post Office or postal branch in Los Angeles County, California, postage prepaid, addressed to the applicant at his last known address. Such applicant may, within fifteen (15) days after the mailing or serving of such notice, make written request to the Collector for a hearing on his application for reclassification. If such request is made within the time prescribed, the Collector shall cause the matter to be set for hearing before the City Council within thirty (30) days. The Collector shall give the applicant at least ten (10) days ' notice of the time and place of the hear- ing in the manner prescribed above for serving notice of the action taken on the application for reclassification. The Council shall consider all evidence adduced and its findings thereon shall be final. Written notice of such findings shall be served upon the applicant in the manner prescribed above for service of notice of the action taken on the application for reclassification. 6429. 1974 License Tax. Notwithstanding the provisions of sections 6410 , 6420, or any other provision of this Chapter, the license tax for the period from the effective date hereof to December 31, 1974 for businesses being conducted in the City on the effective date hereof and which were conducted in the area or any portion thereof which is within the present incorporated -15- Ordinance No. 27 boundaries of the City for the entire 1973 calendar year, may be estimated by the Collector at a figure equal to eighty (80%) percent of the amount determined by applying the tax rates herein provided for to the 1973 calendar year gross receipts, number of dwelling units , number of square feet of commercial or industrial construction, number of vehicles used or other computation, count or similar criteria applicable to such business. The Collector may require each such business to furnish the Collector with such 1973 information and data, under oath, upon a form to be provided by the Collector. 6430 . Rules and Regulations. The Collector may make rules and regulations not inconsistent with the provisions of this Chapter as may be necessary or desirable to aid in the interpretation or enforcement of the provisions of this Chapter. 6431. Enforcement. It shall be the duty of the Collector, and he is hereby directed, to enforce each and all of the provisions of this Chapter, and the Chief of Police shall render such assistance in the enforcement hereof as may from time to time be required by the Collector or the City Manager. The Collector in the exercise of the duties imposed upon him hereunder, and acting through his deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the City to ascertain whether the provisions of this Chapter have been complied with. The Collector and each and all of his assistants and any police officer shall have the power and authority (upon obtaining an inspection warrant therefor) to enter, free of charge, and at any reasonable time, any place of bui sne s s required to be licensed herein, and demand an exhibition of its license. Any person having such license theretofore issued, in his possession or under his control, who wilfully fails to exhibit the same on demand, shall be guilty of a misdemeanor and subject to the penalties provided for by the provisions of this Chapter. It shall be the duty of the Collector and each of his assistants to cause a complaint to be filed against any and all persons found to be violating any of said provisions. 6432 . License Tax A Debt. The amount of any license tax and penalty imposed by the provisions of this Chapter shall be deemed a debt to the City. An action may be commenced in the name of said City in any court of competent jurisdiction, for the amount of any delinquent license tax and penalties . 6433. Remedies Cumulative. All remedies prescribed hereunder shall be cumula- tive and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. 6434 . Penalty for Violation. Any person violating any of the provisions of this -16- Ordinance No. 27 1 T Chapter or knowingly or intentionally misrepresenting to any officer or employee of this City any material fact in procuring the license herein provided for, shall be deemed = guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500 or by im- prisonment in the city jail for a period of not more than six (6) months, or by both such fine and imprisonment. 6435. Effect of Ordinance on Past Actions -- Unexpired Licenses. The adoption of this Chapter shall not in any manner be construed to affect prosecution for violation of any other provision of this Code or of any ordinance of the City committed prior to the effective date hereof, nor be construed as a waiver of any license, permit or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance or provision of this Code to be posted, filed, or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect. 6436 . Severability. If any section, subsection, sentence, clause, phrase or portion of this Chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. The City Council hereby declares that it would have adopted this Chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, sub- sections, clauses, phrases or portions be declared invalid or unconstitutional. Section 2 . Present Chapter 4 of Article VI of the Rancho Palos Verdes Municipal Code, entitled Transient Occupancy Tax, is renumbered as Chapter 5 of Article VI and the sections presently numbered 6400 to 6414 , inclusive, are renumbered as sections 6500 to 6514, inclusive, at all places where said numbers 6400 to 6414, inclusive, appear in said chapter. Section 3 . This ordinance relates to taxes for the usual and current expenses of the City and, pursuant to the provisions of Government Code Section 36937, shall take effect immediately. APPROVED AND ADOPTED this 9th day of April 19-74 by the following vote: AYES: Buerk, Dyda, Ruth, R. Ryan, M. Ryan NOES: None ABSENT: None AOP ' P q f A Mayor ATTEST: r City Clerk I HEREBY CERTIFY that the foregoing is a true and -17- Ordinance No. 27 correct copy of Ordinance No. 27 passed and adopted by the City Council of the City of Rancho Palos Verdes at a meeting thereof held on the 9th day of April, 1974 , and that said Ordinance was posted pursuant to law. City Clerk -18- Ordinance No. 27 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CERTIFICATE OF POSTING CITY OF RANCHO PALOS VERDES ) The undersigned declares and certifies under penalt y of perjury: That he at all times herein mentioned was and now is the duly qualified and acting City Clerk of the City of Rancho Palos Verdes, California; That on the //z;i.. day of , 19 he caused to be posted in three conspicuo s public places, as required by law, • o? 7 a copy of which is attached hereto, in the following ublic P laces in this City: P City Hall 31244 Palos Verdes Drive West Los Angeles County Fire Station 4000 Miraleste Plaza Ridgecrest Intermediate School 28915 Northbay Road Dated this /_.a, day of 19 . LEONARD G. WOOD, CITY CLERK EX OFFICIO CLERK OF THE COUNCIL By AL /// ' #. A Deputy