HomeMy WebLinkAboutNS-2000 - Amending Sections 21-3, 21-7, and 21-119 of the Santa Ana Municipal Code Relating to Business License Tax--089
OKDINANCE NO. NS- 2000
AN ORDINANCE OF TME CITY COUNCIL OF THE CITY
OF SA/qTA ANA AMENDING SECTIONS 21-3, 21-7
AND 21-119 OF THE SANTA ANA MUNICIPAL CODE
RELATING TO BUSINESS LICENSE TAX.
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
SECTION 1: That Chapter 21 of the Santa Ana Municipal Code,
is hereby amended by amending Section 21-3 which said section
reads as follows:
Sec. 21-3. Definitions - Specific.
As used in this chapter, the following words, terms, or phrases
shall have the meaning hereinafter set forth:
"Annual tzat ion" shall mean an estimation, extended for a twelve
(12) month period, based on reported gross receipts for a prior
period of less than twelve (12) months.
"Applicant" shall mean any person who applies for a license or
a license renewal under the provisions of this chapter.
"Automobile Dismantler" shall mean any person who has an
established place of business and is engaged in the business of
buying, selling, or dealing in vehicles of a type required to be
registered pursuant to Section 220 of the California Vehicle
Code, as the same now exists or as hereafter amended, for the
purpose of dismantling the same, who buys or sells the integral
parts and component materials thereof, in whole or in part, or
deals in used motor vehicle parts. This section does not apply
to the occasional and incidental dismantling of vehicles by
dealers who have secured dealers' plates from the California
Department of Motor Vehicles and whose principle business is
buying and selling new and used vehicles, or by owners who desire
to dismantle not more than three personal vehicles within any
twelve (12) month period.
"Builder-Owner" shall mean any person employing subcontractors,
specialty contractors, general engineering contractors, or
workers under his or her supervision and direction by the hour or
day, for the purpose of constructing improvements on real
property owned by him or her within the city; such person shall
be taxed herein the same as a contractor unless his or her only
building activity is constructing on his or her property a single
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family dwelling unit or addition theret° wh
whole or in part for the purpose of his or
a period of not less than one year. Proof
offering for sale of any such structure by
within one year after completion of same is
that such structure was undertaken for purp
Provided, however, that any person holding
license pursuant to Sections 7056, 7057, an
California Business and Professions Code, a
or as hereafter amended,~ shall be cons idere,
"Building And Loan" shall mean any person
in the loan of money upon personal security
personal property, evidences of debt, or
contracts, commercial paper, assignments of
warranty, salary demands, time checks, or o
salary due or to become due, or automobile
building and loan as used in this chapter
loans, but does not include pawnbrokers or
brokers license, or any person conducting a
under the 1. aws of the state or any person
corporate hncome tax as a financial corPora~
"Building-Tradesman" shall mean any perso~
city, as an independent contractor in any t~
avocation or occupation of the building tra~
as a contractor by the state.
"Business" shall include all activities e~
be engaged in within the city, including an.,
industrial enterprise, trade, profession, o,
calling, or livelihood, including rental of
commercial real estate, and every other kin,
or not carried on for gain or profit, amd w!
in as a principal or as an independent cont=
include the services rendered by an employee
"Business License Receipt" shall mean the
be posted or displayed as evidence of a bus:
tax required by the provisions of this Chap
· be referred to as "license receipt" or "lic
otherwise spec if led.
"Business License Tax" shall mean the pr
required by the provisions of this chapter
referred to as "business or license tax'! or
otherwise spec ified.
"Charge" shall mean any fee fixed herein
solely to cover the reasonable administ~ati%
performing any specified act on behalf Of ar
person's request for which said person Shal]
otherwise spec ified hereinafter.
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ich will be used in
~er own occupancy for
)f the sale or
:he builder-owner
~resumpt ive evidence
)se of sale.
state contractor's
7058 et seq. of the
the same now exists
a contractor.
,ho for a fee engages
, automobile, or any
~chases automobile
salary, salary
;her evidences of
Japer. The term
~cludes savings and
:he holder of a bond
banking business
Lbject to the state
:ion.
engaged within the
~ade, art, calling,
ies and not licensed
;aged in or caused to
commercial or
· .upat ion, vocation,
residential or
[ of activity whether
~ether or not engaged
'actor, but shall not
to his employer.
receipt required to
ness' payment of the
~er and shall herein
nsc" except as
ilege tax paid as
.nd shall herein be
"fee" except as
hich is intended
'e cost incurred in
y person or at any
be liable except as
· 091
"Coin-Operated Machine Or Device" shall mean any machine or
device that dispenses a product, or provides a service, or
utility or amusement; resulting from insertion or use of a coin,
slug, token, plate, disc, plug, key, check or other device, or
money, or thing of value.
"Collector" shall mean the finance director or other city
officer charged with the administration of this chapter.
"Commission Agent, Broker Or Merchant" shall mean any person
engaged in the business of buying and selling of goods, wares, or
merchandise for the owner or consignee thereof for a fee or
commission, whether or not the operation of such business
customarily includes the actual possession, custody or control of
goods, wares or merchandise to the extent that such person (1)
does not engage in the business of manufacturing, refining,
fabricating, milling, treating or other processin~ of the goods,
wares or merchandise bought and sold, and does not cause said
goods, wares or merchandise to be manufactured, refined,
fabricated, milled, treated or otherwise processed; (2) does not
obtain or retain title to said goods, wares or merchandise except
during one or more of the following situations: while such goods,
wares or merchandise are actually in transit, or for short
periods of time before transportation commences or after it
ceases; and (3) does not store or warehouse such goods, wares or
merchandise except during one or more of the following
situations: while such goods, wares or merchandise are actually
in transit, or for short periods of time before transportation
commences or after it ceases.
"Contractor" shall mean any person who is licensed as a
contractor by the State of California and who undertakes to or
offers to undertake to or purports to have the capacity to
undertake to or submits a bid to, or does himself.or by others,
construct, alter, repair, add to, subtract from, ~mprove, move,
wreck or demolish any building, highway, road, railroad,
excavation or other structure, project, development or
improvement, or to do any part thereof, including the erection of
scaffolding or other structures or works in connection therewith.
The term contractor as used in this chapter includes, general
en~ineering contractor, general building contractor, s.p_e, ci. alty
co~tractor and subcontractor except as otherwise specitle~
here in.
"Cost Of Doing Business" shall mean that amount which is
equivalent to the volume of business performed, where the
business of any local office, facility, agent, broker, or
employee is that of performing administrative or management
related services in connection with sales or services performed
or rendered elsewhere. Said amount shall be computed by
determining the total cost of maintaining said local office,
facility, agent, broker or employee. Said total cost of
maintaining said local office, facility, agent, broker or
employee shall include, but is not limited to the wages,
salaries, commissions, bonuses, rent, and/or depreciation,
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092
telephone, postage, utilities, janitorial at
allocated for maintenance of said office, ft
or employee.
"Disabled Veteran" shall mean any honOrab]
of the Armed Forces of the United StateS, w!
unable to obtain his livelihood by means of
is a qualified voter of the state.
"Employee" shall mean all individuals who
operation or conduct of any business, and w!
services rendered is in the form of a regul~
"Engaged In Business" shall mean the tran~
on, managing or operating of a business~whe~
by means of an officer, agent, manager, emp~
"Fixed Place Of Business" shall mean the !
occupied for the particular purpose of Cond~
thereat, and regularly kept open for that p~
competent person in attendance for the purp~
such business, except that an auto-car Wash
similar self-service business shall be cons
of business" whether or not any one is in a~
warehouse shall be considered a "fixed plac~
or not anyone is in attendance, and whether
is regularly kept open.
"Flat Rate" or "Flat Rate Tax" shall mean
assessed per business location, or alternat
amount or fixed scale of amounts whose sum
depending on the number or other factor fur~
determination of the license tax. The term
rate tax as used in this chapter includes a~
number of persons engaged or employed in a
"General Contractor" shall include any ge
contractor or general engineering contracto~
who is licensed pursuant to Sections 7056 a~
California Business and Professions Code as
or as hereafter amended.
"Gross Receipts" shall include the total.
price of all sales and the total amount cha
the performance of any act or service of wh.
be, for which a charge is made or credit al
such act or service is done as a part of or
the sale of materials, goods, wares, or~mer
following shall be included in "gross recet'
rents, cash, credits, and property of any k
any deduction therefrom on account of the c~
the cost of materials used, labor or servic
or payable, or losses or other expenses wha
,d other expenses
~cility, agent, broker
discharged member
~ is physically
manual labor and who
are engaged in the
Lose cons iderat ion for
.r salary or wage.
acting and carrying
:her done as owner, or
oyee, or lessee.
,remises primarily
~cting the business
Lrpose with a
,se of attending to
auto-laundromat, or
ldered a "fixed place
~tendance and a
~ of business" whether
or not the premises
a fixed amount
[rely, a fixed
is variable
lishing the basis for
flat rate or flat
ly tax based on the
~us iness.
~eral building
or any other person
~d or 7057 of the
the same now exists
mount of the sale
~ged or received for
~tever nature it may
[owed, whether or not
in connection with
:handise. The
~ts:" Ail receipts,
Md or nature, without
)st of property sold,
cost, interest paid
soever.
093
following shall be excluded from "gross receipts:"
(a) Cash discounts allowed and taken on sales;
(b) Credit allowed on property accepted as part of the
purchase price and which property may later be sold;
(c) Any tax required by law to be included in or added to
the purchase price and collected from the consumer or
purchaser;
(d) Such part of the sale price of property returned by
purchasers upon recission of the contract of sale as is
refunded either in cash or by credit;
(e) Amounts collected for others where the business is
acting as an agent, or trustee to the extent that such
mmounts 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, other than amounts received as commissions
or fees earned, or charges of any character made or
compensation of any character received for the
performance of any service as agent, or trustee;
provided that any agent, or trustee dealing in stocks or
other similar written instruments evidencing a right to
participate in the assets of any business, or dealing in
bonds or other evidences of indebtedness, who also deals
in such property as a principal, shall include in the
gross receipts by which the tax is measured the amount
of his or her trading profits resulting therefrom. No
deduction from receipts attributable to trading as a
principle shall be made unless such deduction is
provided for in this section;
(f) The difference between the balance owed and paid on a
defaulted purchase or finance contract upon repossession
by seller and the amount received from resale of the
repossessed article by the repossessing seller.
(g) Receipts of refundable deposits, except that refundable
deposits forfeited and taken into income of the business
shall not be excluded;
(h) As to alcoholic beverages, that portion of the receipts
of a manufacturer, transporter, retailer or wholesale
distributor generated or otherwise collected from the
manufacture, transport, retail or wholesale of
intoxicating liquors within the state pursuant to
Article XX, Section 22 of the State Constitution.
(i) As to a retail gasoline dealer, a portion of his or her
receipts from the sale of motor vehicle fuels equal to
the motor vehicle fuel license tax imposed by and pre-
viously paid under the provisions of Part 2 of Division
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2 of the State Revenue and Taxatior
now exists or as hereafter amended
(J)
As to a retail gasoline dealer, th~
tax imposed by Section 4041 oflTit]
States Code, as the same now exist~
amended, if paid by the dealer or
her from the purchaser;
(k) Cash value of sales, trades, trans
transactions as made between separ~
divisions, or units of any single
(1) Sales for convenience where sales
or merchandise are made by a persor
such articles to another person enl
or similar articles:
(1) Where the primary purpose o
transaction of sale is to ac
purchaser rather than to m~
ordinary course of business
essentially the book value c
(2) Where, in the particular k~
involved, a similar manner c
or customary in the cireumst
particular sale is made; an¢
(3) Where goods, wares, or merck
similar kind and of subStan!
value to that which was sole
cons iderat ion;
As to general contractors and other s~mtla
receipts" shall not include that portion of
general contractor which represents payment~
provided that such subcontractors are licen~
chapter, and provided the general contracto~
Collector upon request with the names and ac
subcontractors and the amounts paid to them
As to bail bond brokerages, commission agen
brokerages, real estate brokerages, securit:
agencies, and other similar businesses empl(
and/or commissioned employees, "gross recei!
total gross commissions or other receipts a!
local office, agents, brokers and/or employ~
As to accountants, architects, attorneyS, ct
dentists, optometrists, podiatrists, psycho]
and other professionals, either practicing
partnership, or as a professional corpoFat~
shall include the total gross fees or o~her
to services performed or otherwise rendered
-6
Code, as the same
special motor fuel
e 26 of the United
or as hereafter
ollected by him or
ers, or other
te departments,
usiness entity;
f new goods, wares,
engaged in selling
aged u~ selling like
the particular
commodate the
e a sale in the
and the price paid
f the article;
is
d of business
f dealing is frequent
ances under which the
andise of like or
ially equivalent
is received in
businesses, "gross
the receipts of a
to subcontractors,
ed under this
furnishes the
dresses of the
brokerages, mortgage
.es brokerages, travel
ying agents, brokers
.ts" shall include the
tributable to the
:es o
,iropractors, doctors,
oglsts, veterinarians
olely, or in
n, "gross receipts"
receipts attributable
within the city.
O95
As to other persons having a fixed place of business within the
city and providing a service or plying an occupation or trade, or
involved in similar businesses, "gross receipts" shall include
the total fees, commissions, or ot~ier receipts attributable to
that local location and/or employees.
As to building and loan associationS, "gross receipts" shall
include:
(1)
(3)
(4)
Interest on real estate loans;
Loan fees of various kinds such as: Fee for
escrow, appraisal drawing papers, and other
similar charges;
Bonuses received for prepayment of loans;
Penalty charges on delinquent loans;
(6)
(7)
Tax service fees
Interest on personal loans to depositors and;
Receipts over and above the recovery of
principal from the sale of mortgages or other
evidence of money due from loans.
As to building and loan associations,
excluded from "gross receipts:"
(i)
(ii)
(iii)
the following shall be
Interest and dividends earned from the
placing of surplus funds in bonds,
securit ies, or federal home loan banks;
Payments received on the principal amount of
outstanding loans;
Sale of capital assets used in the conduct of
the business;
Payments made to other building and loan
associations which represents their share of
interest under participation agreements; and
(v) Gains or losses on the sale of real estate
acquired by foreclosure.
As to a business established outside the city but maintaining an
office within the city through an agent, broker, or employee,
"gross receipts" shall include the total sales or receipts
attributable to the local office or facility, agent, broker or
employee.
096
In the event separate sales or receipt reco~
for said local office or facility, agent, bE
in the event amy retailing, wholesaling,, mar
processing activity conducted thereat does
receipts as hereinabove defined, or in the
office or facility, agent, broker, or emplo
providing administrative or management relat
include, but not limited to, record keeping,
research and development, advertising, publJ
personnel administration, or legal services,
sales or services performed or rendered else
tax shall be based upon an amount which bea~
to the total gross receipts of the business
maintaining said local office, facility, lo¢
employee bears to the total cost of maintain
As to a business.established within the city
local branch offzce or establishment through
employee engaged in providing administrative
related services within the city, the businE
on an amount equivalent to the cost of doin~
_
As to a business established outside the czt
carrying on business within the city, or otk
rendering services negotiated, or contracte~
whether or not by a principal or through an
"gross receipts" shall include the total fe~
other receipts attributable to the business
"Independent Contractor" shall mean any n~
than a state licensed contractor, who iS en~
business of any other person, whether as a ~
defined hereinbelow, or whether pursuant to
certificate or registration authorized by t~
and Professions Code, as the same now exists
amended, or whether with regard to any othe~
occupation, and who receives renumeration el
commzssion, or pursuant to any contract of E
excludes regular wages or salary, or in any
other than through regular wages, salary or
participation in the profits of the bus inesE
"Insurance Agent" shall mean any person,
bailbond agents, directly authorized by and
insurer, to transact insurance and to bind
execution of insurance policies.
Insurance Broker shall m. ean any person~
brokers, who, for compensation and on bahai
transact insurance other than life with, but
insurer.
"Insurance Solicitor" shall mean a natura]
aid an insurance agent or insurance broker
Insurance other than life.
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ds are not maintained
oker or employee, or
ufacturing, or
ot generate gross
vent said local
ee is engaged in
ed services, to
data processing,
relations,
in connection with
here, the business
the same proportion
hich cost of
1 agent, broker or
lng said business.
but maintaining a
an agent, broker~ or
or management
ss tax shall be based
business.
y but transacting and
erwise performing or
for within the city,
agent or employee,
s, commissions, or
activity conducted.
rural person other
aged to aid in the
rofessinnal as
any license,
e California Business
or as hereafter
trade, skill or
ther through
mployment which
other manner
a direct
.cluding
on behalf of an
he insurer in the
including bailbond
of another person,
not on behalf of, an
person employed to
n transacting
097 .
"Itinerant Merchant" shall mean any person who engages in a
temporary or transient business in the city, selling or offering
for sale goods, wares, merchandise, or things or articles of
value, with the intention ~f ConduCting such business in the city
for a period of not more than ninety (90) days in any calendar
year, and who, for the purpose of carrying on such business,
hires, leases, or occupies any room, doorway, vacant lot,
building or structure, for the exhibition or sale of goods, wares
or merchandise, or who associates temporarily with any local
dealer, trader, merchant or auctioneer, or who conducts such
temporary or transient business in connection with or as a part
of or in the name of any local dealer, trader, merchant or
dUC t ioneer.
"Junk Collector" sh. all mean any. person no.t having a fixed place
of business in the city engaged un the business of buying or
selling, either at wholesale or retail, any rags, bottles,
papers, cans, metals or other junk.
"Junk Dealer" shall mean any person having a fixed place of
business in the city engaged in the business of buying or
selling, either at wholesale or retail, any rags, bottles,
papers, cans, metals or other junk.
"Junk Salvager" or "Junk Recycler" shall mean any person, at a
fixed place of business in the city engaged in the business of
carrying on or collecting, buying or selling at either retail or
wholesale or otherwise dealing in junk and/or rubbish, waste
material, refuse and/or any rags, sacks, bottles, papers, cans,
metals, rubber, cordage, tires and other like articles, whether
the same can be sold or otherwise disposed of for the purpose of
being treated, repaired or prepared so as to be used again in
some other form.
"Junk Yards," "Automobile Wrecking Yards," and "Salvage Yards"
shall include any space of two hundred (200) square feet or more
of area of any lot used for the storage, sale, keeping o.r
abandonment of inoperable vehicles, junk or waste materzal,
including scrap metal or other scrap materials, or for the
dismantling, demolition or abandonment of automobiles, other
vehicles, machinery or parts thereof, other than an impound yard.
"Leaseholder" or "Leasehold Interest" as applied to any real
property shall mean any person who possesses or shares an estate
in reality held under lease. As applied to any dwelling,
building, structure, premises or portion thereof located on such
real property the term "leaseholder" and/or "leaSehold interest"
shall mean any person who possesses or shares in a contract for
exclusive possession or control of any such dwe. ll. ing, building,
structure, premises or portion thereof for a lzmzted time.
"Leaseholder-lessor" as applied to commercial or residential
real estate shall mean any person who, while in possession of a
leasehold or leasehold interest in any commercial or residential
real estate, acts as a lessor by engaging in the subleasing,
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subletting, providing, exchanging or tradin
property, dwelling, building, structure, pr
thereof without loss of leasehold~
"Licensee" shall mean any person who hold
business license issued to that person unde
"Life Agent" shall mean any insurance age
on behalf of a life, disability or life and
to transact life, disability or life and df
"Life And Disability Insurance Analyst" s
who, for a fee or compensation of any kind,
from any person or source other than an ins
purports to advise, or offers advice to any
named as a beneficiary of, or having an int
disability insurance contract, in any manne
contract or his or her rights in respect th
"Manufacture" or "Process" shall embrace
a commercial or industrial nature wherein 1
applied, by hand or machinery, to materials
thereof a new, different or useful article
property or substance of trade or commerce
include the production or fabrication of sp
made articles.
"Manufacturer" shall mean any person, who
contracting with others for the necessary 1
services, manufactures for sale or for comm
use from his or her own materials or ingred
substances or commodities.
any such real
.mises or portion
a Valid, current
this chapter.
authorized, by and
d isab il ity insurer,
3ability insurance.
lall mean a person
paid by or derived
~rer, advises,
person insured under,
~rest in, a life or
concerning that
:reto.
11 the activities of
~bor or skill is
so that as a result
)f tangible personal
Ls produced and shall
~cially made or custom
~ directly or by
~bor or mechanical
~rcial or industrial
Lents any articles,
"Owner," "Ownership," or "Ownership Inter.~st" as applied to any
real property shall include the legal property owner of record as
recorded by the office of the county assess, ir, and in addition
thereto shall include, whether recorded or ~nrecorded, any
owner, any part.owner, Joint owner, tenant ~ common, tenant in
partnership, jo znt tenant, or tenant by thelenttrety, co-
partnerships .of the whole or of a part of s~ch real property, or
a person having an interest ~ community pr)perry as a me~ber, or
former member, of the community. As applie, l to any dwellzng,
building, structure or premises located, on ~uch real property the
term "owner," "ownership," or "ownership in:crest" shall include
the legal owner, and in addition thereto sh
owner, Joint owner, tenant in common, renan
joint tenant, or ten&nt by the entirety, co
whole or of a part of such dwelling, build~
premises, or a person having an interest in
a member, or former member, of the communit'.
"Owner-lessor" as applied to commercial o
estate shall mean any person who, while an
an ownership interest in any commercial, or
estate, acts as a lessor by engaging in. the
- 10 -
~11 include, any part
in partnership,
· partnerships of the
~g, structure or
community property as
: res ident iaI real
>wner or while having
:esidential real
leasing, renting,
099
providing, exchanging or trading of any such real property,
dwelling, building, structure, premises or portion thereof
without loss of ownership. ~
"Pawnbroker" shall mean any person conducting, managing or
carrying on the business of loaning money either for himself or
herself or for any other person, upon any personal property,
personal security, or purchasing personal property and reselling
or agreeing to resell such property to the vendor or other
assignee at prices previously agreed upon. Nothing in this
section shall be deemed to apply to the loaning of money on
personal property or personal security by any bank authorized to
do so under the laws of the state or of the United States.
"Peddler" shall mean any person who sells and makes immediate
delivery or offers for sale and immediate delivery any goods,
wares, merchandise, service or thing in possession of the seller,
at any place in the city other than at a fixed place of business
but shall not include salespersons or agents for wholesale houses
or firms who sell to retail dealers for resale or sell to
manufacturers for manufacturing purposes or to bidders for public
works or supplies.
"Person" shall include all domestic and foreign corporations,
associations, syndicates, joint stock corporations, partnerships
of every kind, clubs, or common law trusts, societies, and
natural persons transacting and carrying on any business in the
city, other than as an employee.
"Premises" shall include all lands, buildings, accessory
buildings or structures erected or modified, equipment and
appurtenances connected or used therewith, and any personal
property affixed to or. otherwise used for the purpose of
transacting and carryzng on any business on such premises.
"Processor" shall mean any person engaging in the business of
converting an article, substance or commodity into marketable
form for the purpose of resale by changing its physical form or
chemical compos it ion.
"Professional" shall mean any person, including any
professional corporation, wherever located, engaged in or
carrying on, within the city, any profession requiring
satisfactory compliance with written and/or oral examination
standards adopted by a branch of the state or federal government
and/or requiring a certain amount of tenure with such branch of
government. Such professions to include but not be limited to:
Architect (all types), Attorney, Accountant (all types), Auditor,
Audiologist, Chiropractor, Clinical Social Worker, Dentist,
Drugless Practitioner, Electrologist, Geologist, Gemologist,
~erbalist Marria~e~ Family and Child Counselor, Mortician,.
o~,,~ Nu~.se~.e~istered), Oculist, Optician, Optometrist,
Osteopath, Physician (all types), Podiat. rtst, Psycholog ,
Speech Pathologist, Surveyor, Veterinarzan.
- 11 -
"Professions. 1 Corporation" shall mean any ¢
under the California General Corporation Law
rendering professional services in a single ~
otherwise authorized pursuant to Section 1340
California Business and Professions Code, as
or as hereafter amended, and which in its pr~
designates itself as a professional or other
be required by statute.
"Property" or "Real Property" as applied tc
residential real estate shall mean recorded ~
parcel, as identified by county assessor's p~
"Real Estate Agent" shall mean any person
the state and engaged wholly or in part in t~
carrying on the sale of real estate.
"Real Estate Broker" shall mean any person
the state and engaged wholly or in part in t~
carrying on the sale of real estate includin~
offering to buy, sell, or lease real property
negotiating and collecting loans for borrowe~
dealing in real property sales contracts and
receiving advance fees for real estate ltst~
real estate syndicate securities.
"Real Estate Developer" shall mean any per.,
managing, or transacting and carrying on the
acquiring, subdividing, improving, selling, ~
dealing in and disposing of or developing re~
commercial, industrial, residential, or nonrE
including, but not limited to, one who const~
upon real property for commercial, industria]
nonresidential purposes with the object of s~
developing it for his or her own use.
"Recreational Services" shall mean any pert
business of providing facilities for recreat:
services to .i~.clude but not be limited to: ~
arcades, bowling alleys, driving ranges, golJ
miniature), motion picture theaters %includi~
halls (including billiards and snooker), rid:
rinks, social clubs, sports clubs (including
and conditioning gyms), swimming pools, and
clubs.
"Rental Of Commercial Real Estate" shall
whether as an owner-lessor or leaseholder-le~
business of leasing, renting, subleasing, su[
exchanging or trading without loss of owners!
real property, dwelling, building, structure.
thereof for industrial, commercial, office,
entrepreneurial uses or purposes other than
or purpose of dwelling, sleeping, lodging o~
Provided, however, that the leasing, renting,
- 12 -
orporat ion organized
which is engaged in
rofession, or as
O et seq. of the
the. same now exists
ct~ce or business
corporation as may
commercial or
ssessor's property
rcel number.
licensed as such by
ansacting and
licensed as such by
ansact ing and
soliciting or
for others;
s or lenders;
promissory notes;
gs; and dealing in
on conducting,
business of
enting and otherwise
i property, for
.idential purposes
~cts improvements
residential, or
.ling, renting or
on engaged in the
onal use. Such
musement machine
!courses (including
g drive-in), pool
~g stables, skating
spas, health clubs,
~nnis and racket
:lude every person,
sor, engaged in the
letting, providing,
~ip or leasehold, any
premises or portion
'arehouse or other
lot the immediate use
general residency.
subleasing,
101
subletting, providing, exchanging or trading, without loss of
ownership or leasehold, of any real property, dwelling, building,
structure, premises or portion thereof to another for the purpose
of their independent commercial ope~ration of an apartment
building, apartment house, boarding house, guest house, mobile
home park, nursing home, residential care facility, rooming
house, or hotel or motel thereat, shall be deemed to constitute a
rental of commercial real estate.
The license tax for the rental of commercial real estate shall be
assessed per property and liability for said tax shall be
determined by owner-lessor's ownership of, or leaseholder-
lessor's leasehold interest in, said property. Independent
property management agemts acting for property owner-lessors or
property leaseholder-lessors are responsible for payment of the
license tax on the rental of such property, if the owner-lessor
or leaseholder-lessor of said property has not paid the tax when
due and payable, and in addition, are subject to the license tax
as a separate business.
Provided, however, that where any one dwelling, building,
structure or premises is comprised of one or more contiguous
properties then the owner-lessor or leaseholder-lessor owning or
controlling said building, structure or premises may, upon
submission of acceptable documentary proof thereof, obtain a
single consolidated business license tax assessment. Further
provided that where an owner-lessor or leaseholder-lessor owns or
controls two or more separate buildings, structures or premises
located on the same property, or two or more buildings,
structures or premises located on separate but contiguous
properties, then the owner-lessor or leaseholder-lessor owning or
controlling said buildings, structures or premises may, upon
submission of acceptable documentary proof thereof, obtain a
single consolidated business license tax assessment.
"Rental Of Residential Real Estate sha 1 include every person,
whether as an owner-lessor or leaseholder lessor, engaged in the
business of leasing, renting, subleasing, subletting, providing,
exchanging or trading, without loss of ownership or leasehold,
any real property, dwelling, building, structure, premise, s or
portion thereof, except for any hotel or motel, for the immediate
purpose of dwelling, sleeping, lodging, boarding, or other such
occupancy, accommodation, or general residency.
The license tax for the rental of residential real estate shall
be assessed per property and liability for said tax shall be
determined by owner-lessor's ownership of, or leaseholder-
lessors's leasehold interest in, said property, Independent
property management agents acting for property owner-lessors or
property leaseholder-lessors are responsible for payment of the
license tax on the rental of such property, if the owner-lessor
or leaseholder-lessor of said property has not paid the tax when
due and payable, and in addition, are subject to the license tax
as a separate business.
- 13
102
Provided, however, that where any one dwellJ
structure or premises is comprised of one o~
properties then the owner-lessor or leasehol
controlling said dwelling, building, struct~
upon submission of acceptable documentary p~
single consolidated business license tax ass
provided that where an owner-lessor or lease
controls two or more separate dwellings, bu~
premises located on the same property, or tw
buildings, structures or premises located on
contiguous properties, then the owner-lessor
lessor owning or controlling said dwellings,
structures or premises may, upon submission
documentary proof thereof, obtain a single
license tax assessment.
"Rental Unit" shall mean the smallest acc
fee is charged or received.
"Retailer" shall mean any person engaging
selling goods, wares, or other merchandise
users thereof.
"Revenue Officer" shall mean the duly autl
Collector charged with assisting the Collect
the duties imposed upon him or her hereunder
"Sale" shall include the transfer, in any
means whatsoever, of title to property for a
serving, supplying, or furnishing for a cons
property; and a transaction whereby the poss
transferred and the seller retains the title
payment of the price shall likewise be deeme
foregoing definitions shall not be deemed to
transaction which is or which, in effect, re
within the contemplation of law.
"Sale At Retail" and "Retail Sale" shall m
tangible personal property (including articl
fabricated or imprinted) other than sale to.
for the purpose of resale as tangible person
regular course of business, or (2) purchases
consuming the property purchased in producin
article of tangible personal property or sub
property becomes an ingredient or component,
used in processing, when the primary purpose
to create a chemical reaction directly throu
ingredient of a new article being produced f,
"Sale At Wholesale" and "Wholesale Sale" s
tangible personal property which is not a "s.
otherwise classified hereinabove as "retail
nevertheless be classified as "wholesale saL
section, if the vendor can establish to the ~
Collector that the sale was made to a governl
14 -
ng, building,
more contiguous
der-lessor owning or
re or premises may,
oof thereof, obtain a
essment. Further
holder-lessor owns or
ldings, structures or
o or more dwellings,
separate but
or leaseholder-
buildings,
9f acceptable
Dnsolidated business
~modation for which a
in the business of
consumers or end-
ized agent of the
)r in the exercise of
lanner or by any
consideration; the
ideration of any
~ssion of property is
as security for the
a sale. The
exclude any
~ults in a sale
~an every sale of
~s produced,
)ne who (1) purchases
~1 property in the
for the purpose of
~ for sale a ~ew
3tance, of which such
or as a chemical
of such chemical is
~h contact with an
)r sale.
%all mean any sale of
~le at retail." Sales
;ales", may,
.~s" under this
~atisfaction of the
lent asency, public
utility, manufacturer, processor or contractor who consumed the
articles in the course of his or her own operations and did mot
offer the articles for resale to the general public except as an
integral part of manufacturing, construction or service.
"services" shall mean the business of providing, maintaining,
or performing labor for the benefit of another within the city;
of supplying some general demand for the benefit of another
within the city which does not produce a tangible commodity; or
furnishing of services and all activities in which any person,
for any other person performs any personal service and all
services in which any real or personal property, stocks or bonds,
or other financial instruments, or evidences of debt, or
contracts of insurance or any money or credits are exchanged,
leased, transferred~ or loaned; as well as every business of
maintaining, storing, cleaning, improving or repairing tangible
commodities within the city whether or not such business is
conducted from a premises, vehicle, or mobile location within or
outside the city. Services include recreation services but do
not include theatrical performances, exhibitions, or temporary
amusements nor do they include professional services, or
telephone services within the terms of this chapter.
"Solicitor" shall mean any person who engages in the business
of going from house to house, place to place, on or along the
streets, within the city and/or by telephone, soliciting any
opinions, preferences, endorsements, or other information, or
selling or taking orders for or offering to sell or take orders
for goods, wares, or merchandise or other things of value for
future delivery, or for services to be performed in the future.
"Stock Broker" and "Bond Broker" shall mean any person engaged
in the business of buying or selling federal, state, county or
municipal stocks or bonds, or stocks or bonds of partnerships or
other incorporated entities, or evidences of indebtedness of
private persons, partnerships or of incorporated entities, for a
fee or commission.
"Sworn Statement" shall mean an affidavit sworn to before a
person authorized to take oaths, or a declaration, certification,
or verified affidavit made under penalty of perjury.
"Telephone Serv. ices" shall mean any. person e,n, ga~ged_in the n"
business of providing telephone services as a te£epnone corn. pa y
pursuant to Article XIII, Section 19 of the State Constitution.
"Transact And Carry On" means to repeat, or intend to repeat,
or to continue, and includes:
(a) The maintaining, operating, managing, or being in control
of, any office, store, warehouse, factory, establishment,
location or place:
- 15
(1)
Having one or more telephones lis
activity in any classified teleph,
the classified section of any
directory,
(2)
Having in use in connection with ,
more counters, desks, chairs, tab
typewriters, adding or calculatin
articles of office equipment,
(3)
At, from, or in which, any proces
administration, research, sales p:
solicitation, distributing, routi]
dispatching, billing, collection,
keeping, or other activity is corn
with any business,
(4)
In, or at which, one or more persc
valuable consideration intended ti
results, in any livelihood, finan,
commercial gain to any person, re,
advice, treatment or examination,
their person, or any repair, refi~
cleaning, or other improvement to
property,
(5)
In which any letter, announcement
circular, handbill, newspaper, agi
instruction, legal instrument, fil
statement of account, financial r~
instrument or record, is written,
published, prepared or kept, in cc
bus iness,
(6)
From which any circular, handbill
announcement, statement of accouni
sent, or distributed, in writtng,
made, in person or by telephone,
business,
(7)
Upon any exterior side, wall, win
other portion, or in the proximit]
maintained any sign, lettering,
advertisement indicating that suc!
one in, at or from, which any art~
act is performed, in connection
(b) The repeated or co. ntinuous Offering, i
orally or in writing, in connection w:
(1) To sell or rent one or more attic]
or more rooms, apartments, port io~
real or personal property, or
(2) To transport any person or person~
16 -
:ed for any business,
}ne directory or in
~olidated telephOne
business, one or
filing cabinets,
machines, or other
ing, supervising,
~omotion,
~g, delivery,
accounting, record-
lucted in connection
,ns may, for any
result, or that
:ial profit or
:eive any instruction,
or any service upon
cishing, renewing,
or of, any personal
advertisement,
· cement, contract,
~ancial statement,
~cord, or any other
printed, reproduced,
,nnection with any
newspaper,
:, card or letter is
or any contract is
m connection with any
Low, door, roof or
' of which, there is
~nouncement or
L offic~ or place is
.cle exists, or any
ith any business;
,r contracting,
.th any business:
,eS, or one
~s or parcels, of any
1 property, or
105
(c)
(3) To perform any Service;
In connection with any business, the repeated or
continuous:
(1) Sale or renting of one or more articles or parcels of
real or personal property, or
(2) The transporting of any person or property, or
(3) The performance of any service;
id) The performance, in connection with any business, of any
single act, with intent to repeat or continue the
performance of such act.
"Vehicle" means every device in, upon or by which any person or
property is or may be transported or drawn upon a public street
or highway, except devices moved by human power or used
exclusively upon stationery rails or tracks.
"Vending Operations" means any business conducted or carried on
by any person engaged in the business of operating coin-operated
machines or devices on the premises of another or in the busmess
of owning, renting, leasing, lending, or otherwise distributing
or supplying coin-operated machines or devices while retaining
title thereto. Such machines include, but are not limited to,
vending, amusement, service and telephone machines.
"Wholesaler" shall mean any person engaging in the business of
selling goods, wares, merchandise or other products for the
purpose of resale and not to consumers or users thereof.
"Utility" and "Public Utility" mean any person furnishing the
public with communication, water, light, heat or power, subject
tO regulation by the Public Utilities Commission of the State of
California.
SECTION 2: That Chapter 21 of the Santa Ana Municipal Code,
is hereby amended by amending Section 21-7 which said section
reads as follows:
Sec. 21-7. Branch establishments; multiple places of business;
more than one type of business.
A separate business license fee must be paid and a separate
business license obtained for each branch establishment or
separate property location 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 and
in the manner designated in such license. Provided, however,
- 17 -
106
that warehouse or distributiOn facilities lo
premises or upon contiguous premises and use
with or incidental to a business licensed th
provisions of this chapter shall not be deem
types of business or separate branch establi
provided that no separate business transacti
administrative or management related activit
on in such incidental or supplemental wareho
fac il it ies.
SECTION 3: That Chapter 21 of the Sant
is hereby amended by amending Section 21-11
reads as follows:
:ated upon the same
~ in connection
reat under the
~d to be separate
3hments. Further
ies shall be carried
ases or distribution
~ Aha Municipal Code,
which said section
classifications are
Sec. 21-119. Gross receipts tax rates.
Gross receipts tax rates for the differen
as follows:
(1) Classification "A" - Ail businesses fo~. which no tax is
specified elsewhere in this article, Including, but not
limited to: retail businesses and sales at retail,
services (including real estate broker
developers, insurance brokers, life an
insurance analysts, stock and bond bro
agents, brokers or merchants, build in
recreational services), hotels, motel
establishments:
For each separate place of business 1
of $60.00, plus
s, real estate
d disability
mers, commission
and loans, and
theaters, and food
(2)
$0.50 per $1,000.00 to
$0.30 per $1,000.00 to
$0.20 per $1,000.00 to
$0.15 per $1,000.00 over
Classification "B" - Manufacturing,
businesses and sales at wholesale, sa
motor fuels, and telephone services:
For each separate place of business
of $60.00, plus
- 18
ensed, a basic rate
100,000.00
500,000.00
1,000,000.00
1,000,000.00
ocessing, wholesale
es of gasoline and
$0.30 per $1,000.00 to
$0.25 per $1,000.00 to
$0.20 per $1,000.00 to
$0.15 per $1,000.00 to
$0.10 per $1,000.00 over
lJ.censed, a basic rate
100,000.00
300,000.00
600,000.00
1,000,000.00
1,000,000.00
107
(3) Classification "C" - Rental of Commercial Real Estate:
For the first property location licensed; a basic rate of
$60.00, plus
$0.50 per $1,000.00 to
$0.30 per $1,000.0o to
$0.20 per $1,000.00 to
$0.15 per $1,000.00 over
$ 100,000.00
$ 500,000.00
$ 1,000,000.00
$ 1,000,000.00
For each additional property location licensed; a basic
rate of $10.00, plus
$0.50 per $1,000.00 to
$0.30 per $1,000.00 to
$0.20 per $1,000.00 to
$0.15 per $1,000.00 over
100,000.00
500,000.00
1,ooo,ooo.oo
,000,000.00
(4)
Classification "D" - Junk yards, automobile wrecking
yards and salvage yards; junk dealers, junk collectors,
automobile dismantlers, junk salvagers, and junk
recyclers:
For each separate place of business licensed, a basic
rate of $100.00, plus
$0.50 per $1,000.00 to .
$0.30 per $1,000.00 to
$0.20 per $1,000.00 to . .
$0.15 per $1,000.00 over
$ 100,000.00
$ 500,000.00
$ 1,000,000.00
$ 1,000,000.00
SECTION 4: The tax rates established by this ordinance
shall be subject to adjustment pursuant to section 21-121 of the
Santa Aha Municipal Code to the same extent as if the tax rates
established by this ordinance had been established by Ordinance
No. NS-1922; provided that any tax liability under Chapter 21 of
the Santa Ana Municipal Code for which payment ~as due prior to
January 1, 1989 shall be governed by the provisions of said
chapter as they existed prior to this ordinance.
SECTION 5: If any section, subsection, sentence, clause,
phrase or portion of this ordinance 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 ordinance. The City
Council of the City of Santa Ana hereby declares that it would
have adopted this ordinance and each section, subsection,
sentence, clause, phrase or portion thereof irrespective of the
fact that any one or more sections, subsections, sentences,
clauses, phrases, or portions be declared invalid or
unconstitutional.
19 -
SECTION 6: Neither the adoption of this Ordinance nor the
repeal hereby of any o[dinance shall in any ~mnne. r affect the
prosecution for Violation of Ordinances, wh£~:h v~olations were
committed prior to the effective date hereof, nor be construed as
affecting any of the provisions of such ordil~ance relating to the
collection of any such license or penalty or the penal provision
applicable to any cash deposit in l£eu there,,f, required to be
posted, filed or deposited pursuant to any o~dinance and all
rights and obligations thereunder appertaini~g shall continue in
full force and effect.
ADOPTED th is
A TTES T:
·
COUNCILMEMBERS:
Young Absent
Acosta Aye
Gr iset ~ye
May Aye
McGu igan Aye
Pul ido Aye
6th day of March
· Young 0
Ap pL~.D~ FOR:
20 -
, 1989.