§ 5.04.100. Exemptions.

Although the following may be exempt from a city business license fee, they shall apply for and obtain a city business license:

A.

Constitutional and Statutory Exemptions. This chapter shall not be construed to require the payment of a license fee by any person engaging in business when such person or business is exempt by virtue of the Constitution or applicable statutes of the United States or of the state of California, or by any ordinance of the city.

B.

Interstate Commerce. No license fee provided for by this chapter shall be so applied as to impose an undue burden upon or unlawful interference with interstate commerce. Where a licensee or applicant for a license believes a license fee places an undue burden upon or unlawfully interferes with interstate commerce, such person may apply to the Collector for an exemption of the fee. Application for exemption of the fee shall be made during application for a license. The licensee or applicant for a license shall, by sworn statement and supporting testimony, demonstrate to the Collector the interstate commerce character of the business entitling the licensee or applicant to such exemption. The statement shall contain the name and address of the company or firm for which the orders are to be solicited or secured; the name and address of the nearest local or state manager, if any; the kind of materials or merchandise bought or sold in commerce; the place from which the same are to be shipped or forwarded; the method of solicitation or taking orders; the address of any warehouse, factory, or plant within the state; the method of delivery; the name and address of the applicant for the method of delivery; the name and address of the applicant for the exemption; and any other information required by the Collector to establish such claim of exemption. The Collector shall then conduct an investigation to determine the facts and, if warranted, issue a fee- exempt license.

C.

U.S. Veterans. Every soldier, sailor, or marine of the United States who has received an honorable discharge or a release from active duty under honorable conditions from such service may distribute circulars, peddle, and vend any goods, wares, or merchandise owned, except alcoholic beverages, without payment of a business license fee.

D.

Nonprofit and Charitable Organizations. Except as otherwise provided, this chapter shall not be deemed or construed to require the payment of a license fee to engage in any business operated for nonprofit purposes where such business is conducted, managed or carried on by and/or only for the benefit of any nonprofit organization, including fraternal societies, orders or organizations, religious, charitable, philanthropic, scientific, literary or educational organizations, amateur sports or humanitarian organizations, civic leagues, social welfare and employees' organizations, nonprofit pleasure and recreation clubs, political organizations, home owners' associations, and military, federal, state, county or municipal organizations. The Collector shall require any information or evidence necessary to establish profit status.

E.

Public Utilities. This chapter shall not be deemed or construed to require payment of a license fee by any public utility which pays to the city a franchise tax; provided that a license fee shall be required for any retail sales conducted in the city by such public utility. Where a license fee is imposed on a public utility, it shall not differ from the rate imposed on mercantile, manufacturing and other business corporations.

F.

Employees of Licensees. Except as otherwise provided, no person acting solely as an employee or as the direct representative of a business which holds a business license shall be required to pay a business license fee.

G.

Domestic Household Help. The license provisions of this chapter shall not be deemed to include or apply to domestic household help in the employ of an individual homeowner.

(Ord. 92-05 § 10)

(Ord. No. 313, 8-8-2017)