(b) Provided that where a person holding a license issued under the provisions of this Chapter changes the name of the business, such person shall upon changing the name make an application to the collector and pay a charge in the amount specified in Section 21-120c(3) to have said license amended to reflect the change in name.
(c) 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 corporation or other entity.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 6, 6-21-22) Sec. 21-68. Use of license by unlicensed person.
No person holding a license required by this Chapter shall permit any unlicensed independent contractor, itinerant merchant, or other person to use the license, the licensed premises or the licensee's name for the purpose of evading payment of any license tax or of evading any other provision of this Chapter. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-69. Duplicates.
A duplicate license may be issued to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing a statement of such fact, and, at the ti me of filing such statement, paying a duplicate license charge in the amount specified in Section 21-120d(5). (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 6, 6-21-22) Sec. 21-70. Posting; public display; keeping on person. (1) Any licensee transacting and carrying on business at a fixed place of business in the city which is open to the public shall keep the license prominently posted in a conspicuous and public place upon the premises where such business is carried on. Provided further that any licensee transacting and carrying on business at a fixed place of business in the city which is closed to the public shall nevertheless keep the license posted in a conspicuous and accessible place upon the premises where such business is carried on. (2) Any licensee transacting and carrying on business at a fixed place of business in the city without an agent or employee on the premises shall post in a conspicuous place the name, address and telephone number of the person or persons to be contacted to verify the possession of a proper and valid license. (3) Any licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the license within his or her possession at all times while transacting and carrying on such business.
(4) Whenever the city shall provide a special tag or plate for the identification of a vehicle for w hich a business license tax has been paid, such tag or plate shall be affixed to the vehicle in accordance with the pertinent regulations of the collector.
(5) Whenever the city shall provide a special decal, metal-cal or label for the identification of a coin-operated machine or device for which a business license tax has been paid, such decal, metal -cal or label shall be affixed to the machine or device in accordance with the pertinent regulations of the collector.
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(6) Any person having a license under the provisions of this Chapter shall produce and exhibit same whenever required to do so by any revenue officer or police officer, or by any other officer or official or employee authorized to inspect licenses or by any person being solicited. (7) No person shall exhibit a revoked business license. (8) No person shall reproduce, duplicate, copy or alter an original business license for the purpose of circumventing the requirement of this section by giving a false or misleading impression that any duplicat ion of an original city business license is valid and that the appropriate fee therefor has been paid. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-71. Term of license; renewal; annual and quarterly.
All annual license renewals shall be for the period of twelve (12) months as specified hereinafter. (a) All annual license renewals based upon a flat rate shall be for the twelve -month period beginning January first of the current year and shall expire on the thirty-first day of December of the current year. (b) All annual license renewals based upon a variable flat rate shall be for the twelve -month period beginning July first of the current year and shall expire on the thirtieth day of June of the following year.
(c) All annual license renewals based upon gross receipts shall be for the twelve-month period beginning on April first of the current year and shall expire on the thirty-first day of March of the following year. (d) All quarterly licenses shall be for the period of three (3) months beginning on the first day of January and ending on the thirty-first day of March; on the first day of April and ending on the thirtieth day of June; on the first day of July and ending on the thirtieth day of September; on the first day of October and ending on the thirty-first day of December.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 1, 6-15-92) Sec. 21-72. Term of license; new; annual and quarterly. (a) All new annual licenses issued and based upon a flat rate shall be for the period of time remaining in the twelve-month period beginning January first of the current year and shall expire on the thirty- first day of December of the current year; provided, however, that all new annual licenses issued between December first of the current year and December thirty-first of the current year shall be for the period of the month of December of the current year as well as the entire period of th e following twelve (12) months ending on December thirty-first.
(b) All new annual licenses issued and based upon a variable flat rate shall be for the period of time remaining in the twelve-month period beginning July first of the current year and shall expire on the thirtieth day of June of the following year; provided, however, that all new annual licenses issued between May first of the current year and May thirty-first of the current year shall be for the period of the month of May of the current year as well as the entire period of the following twelve (12) months ending June thirtieth. (c) All new annual licenses issued and based upon gross receipts shall be for the period of time remaining in the twelve-month period beginning April first of the current year and shall expire on the thirty- first day of March of the following year; provided, however, that all new annual licenses issued between March first of the current year and March thirty-first of the current year shall be for the period of time in the month of March of the current year as well as the entire period of the following twelve (12) months ending March thirty -first. (d) All new quarterly licenses issued shall be for the time remaining in the individual quarter.
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(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 3, 6-18-90; Ord. No. NS-2161, § 2, 6-15-92) Editor's note(s)—Ord. No. NS-2161, § 2, adopted June 15, 1992, renumbered former § 21-73 as § 21-72 and amended the same to read as herein set out.
Sec. 21-73. Renewal due dates.
(a) The flat rate license taxes required to be paid by the provisions of this Chapter, if paid annually, shall become due and payable on the first day of December and shall become delinquent on the first day of January of each year or, if paid quarterly, shall become due and payable on the first day of December, March, June and September and shall become delinquent on the first day of January, April, July and October, respectively. (b) The variable flat rate license taxes required to be paid by the provisions of this Chapter, if paid annually, shall become due and payable on the first day of June and shall become delinquent on the first day of July of each year or, if paid quarterly, shall become due and payable on the first day of June, September, December and March and shall become delinquent on the first day of July, October, January and April, respectively. (c) The gross receipts license taxes required to be paid by the provisions of this Chapter, if paid annually, shall become due and payable on the first day of March and shall become delinquent on the first day of April of each year or, if paid quarterly, shall become due and payable on the first day of March, June, September and December and shall become delinquent on the first day of April, July, September and January, respectively. (d) The gross receipts license tax and the variable flat rate license tax for the current year shall each be based respectively on the filed gross receipts statement and the filed variable flat rate assessment statement. The flat rate license tax for the current year shall be based on the schedule of flat rate taxes as specified by the provisions of this Chapter.
(e) Any business holding a currently valid annual city business license tax receipt and desiring to pay tax quarterly may elect upon renewal to do so by making application and paying a quarterly fee equal to twenty- five (25) per cent of the annual rate.
(f) All daily or monthly license taxes shall be paid in advance. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 3, 6-15-92) Editor's note(s)—Ord. No. NS-2161, § 3, adopted June 15, 1992, renumbered former § 21-72 as § 21-73 and amended the same to read as herein set out.
Sec. 21-74. Renewal license; affidavit.
In all cases, the applicant for the renewal of a license shall submit to the collector for his or her guidance in ascertaining the amount of the license tax to be paid by the appl icant, 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 or her to ascertain the amount of the license tax to be paid by said applicant pursuant to the provisions of this Chapter. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-75. Notification of flat rate tax due.
Notification of business license tax due, when said taxes are based upon flat rates, will be given by first class United States mail no later than the fifteenth day of December, provided that failure to receive such notification shall not exempt the licensee from all requirements under this Chapter.
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(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 4, 6-15-92) Sec. 21-76. Renewal statement; variable flat rate; submission and filing; notification of variable flat rate tax renewal.
(a) Where the license is based on a variable flat rate, the applicant shall submit to the collector, for his or her guidance in ascertaining the amount of license tax to be paid by the applicant, a written statement upon a form to be provided by the collector, written under penalty of perjury or sworn to before a person authorized to administer oaths, setting forth such information concerning the nature, location, intended duration and ownership of applicant's business as well as any additional information required by the collector to enable him or her to ascertain the amount of license tax to be paid by said applicant pursuant to the provisions of this Chapter. The filing dates for the submission of renewal statements and the payment of business license tax due shall be during the period from the first day of June to the thirtieth day of June of each calendar year. In the case of a variable flat tax based upon the number of persons engaged or employed, the statement shall be for the preceding twelve-month period beginning April first of the preceding year and ending March thirty-first of the current year. (b) Where a category or class of variable flat rate licenses is based on a variable flat rate applied to a fixed amount or number which then thereafter does not vary, then, at the discretion of the collector, the variable flat rate assessment statement may be omitted and a notification of business license tax due may be given at the same time and in the same manner as is applied in the case of flat rate business license. Said business license tax shall then be due and payable and shall become delinquent in the same manner as flat rate business licenses.
(c) Notification of business license tax renewal, when such taxes are based upon variable flat rates, will be given by first class United States mail no later than the fifteenth day of May, provided that failur e to receive such notification shall not exempt the licensee from all requirements under this Chapter. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 4, 6-18-90; Ord. No. NS-2161, § 5, 6-15-92) Sec. 21-77. Renewal statement; gross receipts; submission and filing; notification of gross receipts tax renewal.
(a) In all cases where the license is based on gross receipts, the applicant shall submit to the collector, for his or her guidance in ascertaining the amount of the license to be paid by the applicant, a written statement upon a form to be provided by the collector, written under penalty of perjury or sworn to before a person authorized to administer oaths, setting forth such information concerning the nature, location, intended duration, and ownership of applicant's business as well as applicant's gross receipts during the preceding calendar year as may be required by the collector to enable him or her to ascertain the amount of license tax to be paid by said applicant pursuant to the provisions of this Chapter. The filing dates for the submission of gross receipts statements and the payment of business license tax due shall be during the period from the first day of March to the thirty-first day of March.
(b) Notification of business license tax renewal, when said taxes are based upon gross receipts, will be given by first class United States mail no later than the fifteenth day of February, provided that failure to receive such notification shall not exempt the licensee from all requirements under this Chapter. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 6, 6-15-92) City of Santa Ana
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Sec. 21-78. Miscalculation of tax, application of deposit or credit amount; effect. (a) Where the applicant has submitted a timely renewal statement and remitted the tax owed as required pursuant to Sections 21-76 and 21-77, no penalty or interest shall accrue for thirty (30) days on any amount ascertained to be deficient, where said deficiency is determined to be the result of the applicant's miscalculation of the amount of the business license tax owed. (b) Where a deposit or credit amount exists and the applicant has submitted a timely renewal statement, no penalty or interest shall accrue for thirty (30) days on any amount ascertained to be deficient. (c) Notification of deficient business license tax due will be given by first class United States mail no later than the fifteenth day of the first month following the due dates for the submission of renewal stat ements as set forth in Sections 21-76 and 21-77.
(d) Failure to receive such notifications shall not exempt the licensee from all requirements under this Chapter. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2161, § 7, 6-15-92) Sec. 21-79. Same—Failure to file or correct-Notice of assessment.
If any person fails to file any renewal statement within the prescribed time or if after demand therefor he or she fails to file a corrected statement, the collector shall determine the amount of license tax due by means of such information as he or she may be able to obtain. In determining the amount of license tax due for any business for whom the gross receipts of such business is made the basis for fixing the amount of such license the collector may in his or her discretion base such determination upon an average of the reported gross receipts of like businesses, similarly classified. Upon making a determination, the collector shall give a notice of the amount due by personal service or by depositing it in the United States post office in the city, postage prepaid, addressed to the person at his or her last known address.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-80. Same—Not conclusive; audit of books.
No statement 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 or her revenue officers, or duly authorized employees or agents 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.
All persons subject to the provisions of this Chapter shall keep complete and detailed records of business transactions, including, but not limited to, the following: rent collected, daily sales, sales taxes collected and paid to the state, any and all city, state and federal taxes collected and remitted from cannabis sales, point of sales (POS) system detailed daily sales data base and summary monthly sales reports, receipts, purchases, and other expenditures, detailed general ledger, income statements, cash flow statements, balance sheets, sales journals, cash disbursement journals and ledgers including payroll journals, third-party staffing agency statements, lease agreements, and other reports regarding the number and types of persons employed and/or otherwise engaged in the business, and shall retain all such records for examination by the collector, his or her re venue officers, or duly authorized employees or agents of the City. Such records shall be maintained for the period of the current calendar year, and for a prior period of at least three (3) complete calendar years or from the commencement of business within the city, whichever period is least. In the event such records of any business are not maintained City of Santa Ana
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within the city and are not reasonably made available for examination within the city, then such business shall be responsible for the actual travel and lodging cost in connection with the performance of said examination.
No person required to keep records under this section shall refuse to allow the collector, his or her revenue officers, or duly authorized employees or agents of the City to examine said r ecords at reasonable times and places. Any person who willfully refuses to allow said examination on demand and at a reasonable time and place as herein provided shall be deemed guilty of a misdemeanor. In addition, such willful refusal shall be cause for suspension and/or revocation of such business' existing Santa Ana Business License as set out in section 21 -86 of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2972 , § 11, 9-3-19) Sec. 21-80.1. Same—Audit deficiency; application of penalty and interest; voluntary compliance effect; abatement of penalty and interest application; exception for business license taxes assessed on a monthly basis; audit service fees.
In the event that the collector or his or her designated agents, whether through an audit or otherwise, determine that any person has misstated their gross receipts amount, square footage am ount, or other criteria upon which their current or prior years' business license tax has been calculated resulting in an underpayment of the tax amount owed, the collector shall separately calculate the deficiency for each distinct license period affected and issue a statement of tax deficiency and add delinquency penalties as applicable to the amount of the tax deficiency in accordance with Section 21-25, subsection (a) and Section 21-83, subsection (a), together with interest as provided under Sections 21-84 and 21-85, as applicable, until such time as the tax deficiency together with the accrued penalties and interest, are satisfied.
In the case of business license taxes which are assessed and payable on a monthly basis, an identical procedure shall be applied by the collector. Provided, however, that the provisions of Section 21 -25 shall not apply.
Except business license taxes which are assessed and payable on a monthly basis, where any person voluntarily reports a tax deficiency on business license taxes which are assessed and payable on an annual basis such person's penalty and interest assessment on said deficiency shall be abated until the combined amount of tax, penalty and interest due is equalized to an amount equivalent to the amount of current and prior years' taxes owing as computed or determined based upon the business license tax rates and charges in effect for the most current tax year. In computing the abatement of accrued penalties and interest to arrive at a combined amount of tax, penalty and interest equivalent to the amount of the current or prior years' taxes owing as computed or determined based upon the business license tax rates in effect for the most current tax year the collector in his or her discretion may retain a sufficient amount of accrued penalty alone, or a sufficient amount of accrued interest alone, or any sufficient combination of accrued penalty amount and accrued interest amount necessary.
Whenever the result of any audit performed pursuant to this Chapter, excluding audits performed in connection with any medicinal cannabis business or commercial cannabis business , determines that any licensee has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or more of the total amount due, but not less than two hundred fifty dollars ($250.00), then an audit service fee in an amount as specified by resolution of the City Council shall be applied.
In the case of audits performed pursuant to this Chapter in connection with any medicinal cannabis business or commercial cannabis business that has, exclusive of penalties and interest, underpaid the amount of their business license tax by five (5) per cent or more of the total amount due, but not less than five thousand dollars ($5,000.00), then such cannabis business shall be responsible for the City's actual cost of perfor ming said audit. (Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-2972 , § 12, 9-3-19) City of Santa Ana
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Sec. 21-81. Confidentiality.
It shall be unlawful for the collector or any person having administrative duty under the provisions of this ordinance [Ord. No. NS-1922] to make known in any manner whatsoever the business affairs, 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 thereof to be seen or examined by any person. All gross receipts statements or estimates required by this Chapter shall be confidential and are hereby declared not to be public records. Any unauthorized disclosure or use of such information by any officer, agent or employee of t he city shall be subject to the penalty provisions of this Code in addition to any other penalties provided by law.
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 administering or enforcing any provisions of this Chapter, or collecting taxes imposed hereunder;
(2) The disclosure of information to, or the examination of record s by, federal or state officials, or the tax officials of another city or county, if a reciprocal arrangement exists, or to a grand jury or court of law, upon subpoena;
(3) The disclosure of information and result of examination of records of 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 request to that effect, to the taxpayer himself or herself, or to his or her successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any tax paid, any unpaid tax or amounts required to be collected, interest and penalties; (5) The disclosure of the names and business addresses of persons to whom licenses are currently issued, and the general type or nature of their business;
(6) The disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files an appeals claim for fee-exemption, license reinstatement, refund of forfeited fees or bonds, compromise with regard to a claim asserted against him or her by the city for license taxes, or when acting upon any other matter;
(7) The disclosure of general statistics regarding taxes collected or business done in the city. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-82. Payments, statements, etc., made by mail; effect.
When the last day of the month in which the business tax is due falls on a Saturday, Sunday, or state or national holiday, payment of the business license tax may be made without penalty on the first working day of the succeeding month. For the purpose of this article, postmarks shall be accepted as the date of payment made, provided the transmitting envelope contains a post office cancellation indicating not later than the date due, or in the case of a weekend or holiday, not later than the first following working day.
Whenever any other payment, statement, application, report or other communication received by the collector is received after the time prescribed by this Chapter for the receipt thereof, and whenever the collector is furnished sufficient proof that the payment, statement, application, report, request or other communication was City of Santa Ana
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in fact deposited in the United States mail prior to the time prescribed for the receipt thereof, the tax collector shall regard such payment, statement, report, request or other communication as having been timely received. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-83. Penalties for past due delinquency; application—Minor errors in payments; acceptance.
(a) For failure to fully pay any business license renewal tax amount when due, the collector shall add the following penalties:
(1) Ten dollars ($10.00) or ten (10) per cent of the unpaid balance of said amount, whichever is greater, on the past due date thereof,
(2) Fifteen dollars ($15.00) or fifteen (15) per cent of the unpaid balance of said amount, whichever is greater, on the first day of the second month after the due date thereof; (3) Twenty-five dollars ($25.00) or twenty-five (25) per cent of the unpaid balance of said amount, whichever is greater, on the first day of the third month after the due date thereof; and (4) Fifty dollars ($50.00) or fifty (50) per cent of the unpaid balance of said amount, whichever is greater, on the first day of the fourth month after the due date thereof; provided that the maximum amount shall not exceed an amount equal to one hundred (100) per cent of the amount of the business license tax due. Notification of delinquent business license taxes will be given by first class United States mail no later than the fifteenth day of each month, until the maximum penalty is imposed; provided that failure to receive such notification shall not exempt the licensee from all requirements under this Chapter.
(b) In the event a minor discrepancy exists between the amount paid and the amount due under this Chapter, arising from a miscalculation on the part of an applicant or licensee, and resulting in an underpayment o f the business license tax in an amount not to exceed such amount as is specified by resolution of the city council, the collector may accept and record the underpayment as payment in full without notification to the taxpayer.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-83.1. Partial payment; not construed as meeting requirements of chapter— Installment payments and/or deferral; permitted—Written agreement to satisfy indebtedness; effect.
(a) Except as provided in Section 21-83, subsection (b), acceptance of any partial payment of business license tax or penalty or interest owing that is less than the amount required under the terms of this Chapter shall not be construed as meeting the requirements of this Chapter. No license or sticker, decal, tag, plate or symbol shall be issued, nor shall one (1) 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 business tax, unless such person, enters into an acceptable binding written agreement with the city to satisfy said delinquency within one (1) year. With the consent of the collector such agreements may be deferred or extended for a period exceeding one (1) year.
(b) The execution of any agreement to satisfy delinquent business license taxes by means of installment payments and/or deferral shall not prevent the accrual of penalties and interest as applicable on the unpaid balance as provided under the terms of this Chapter. However, such additional penalties as may accrue and City of Santa Ana
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the interest on such penalties shall not be applied after the execution of such agreement and the payment of the first installment and during such time as such person shall not be in breach of the agreement. Upon the timely payment of the final installment of the agreement such additional penalties and the interest thereon as may have accrued shall be waived. In any agreement so entered into, such person shall acknowledge the obligation owed the city and agree that, in the event of failure to make timely paymen t of any installment, the whole amount unpaid, principal together with accrued penalties and interest thereon, shall become immediately due and payable. In the event such person fails within a period of thirty (30) days thereafter to render payment in full, such person's current business license may be revoked by the collector. 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 attorney fees. The execution of such an agreement shall render any subsequent appeal null and void and shall constitute a waiver against future action.
(Ord. No. NS-2841, § 6, 2-4-13)
Sec. 21-84. Same—Added to tax.
Any penalties assessed hereunder, exclusive of interest, upon attaining a combined amount equal to one hundred (100) per cent of the amount of the business license tax due shall become merged with the tax payable hereunder and shall be considered as a part thereof for all purposes. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-85. Same—Interest.
In addition to the past due delinquency penalties imposed in Section 21 -83, any business that fails to remit the tax due shall pay interest at the rate of one (1) per cent per month, or portion thereof, exclusive of penalties, on the amount of the unpaid tax, from the date on which remittance first became delinquent until paid-in- full or otherwise satisfied. Provided however, that pursuant to Section 21-84 penalties upon attaining a combined amount equal to one hundred (100) per cent of the amount of the business license tax due are merged with the tax payable hereunder and any additional interest charged from such date on shall be charged the combined amount delinquent until paid.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-86. Same—Suspension and revocation of business license.
The collector shall suspend and/or revoke any business license issued or granted pursuant to this Chapter only upon those grounds set forth in Sections 21-45, 21-50, 21-55, 21-58, 21-59, 21-60, 21-80, 21-136 or upon conditions set forth in any written agreement executed pursuant to Section 21 -83.
Provided further, that unless revocation is made upon conditions set forth in a written agreement executed pursuant to Section 21-83 or upon licensee's failure to comply with the requirements of Section 21 -136, no licensee's business license shall be suspended and/or revoked for failure to pay any annual business license tax as set forth in this Chapter, or any monthly business license tax as set forth in Article XII or Article XIII of this Chapter, or any other amount due pursuant to this Chapter until the penalties accruing for such failure to pay, exclusive of interest, have attained the maximum applicable amount permissible under the terms of this Chapter. Whereupon, the collector shall give a notice of suspension, which notice shall specify the grounds for suspension, and which notice shall be given by personal service or by depositing it in the United State s post office in the city, postage prepaid, addressed to the licensee at the address listed on the application of the licensee where he or she consented to receive mail concerning his or her license, to obtain a license or to pay any license tax due or the City of Santa Ana
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address listed on the most recent business license renewal affidavit or business license amendment statement; and/or conspicuously posting said notice upon the premises of the business. Service of notice shall be deemed completed upon the date of personal service of said notice, or the date of mailing of said notice, or the date of actual posting of said notice on the premises of the licensee whichever occurs first.
In the event said licensee fails, within a period of thirty (30) days' notice, to pay the business license tax due or any other amount due pursuant to this Chapter, or to request a hearing the procedure for which shall be as provided in Section 21-41, then and in that event the collector shall give a notice of revocation. The licensee shall be given at least ten (10) days' notice, which notice shall specify the grounds for revocation, and which notice shall be given pursuant to the hereinabove set forth procedure for giving notice.
In the event said licensee fails within the allotted ten (10) day period to request a hearing to show cause why his or her business license should not be revoked, then and in that event the collector shall revoke said person's license and give notice thereof to said person pursuant to the hereinabove set forth procedure for giving notice.
In the event said licensee fails to file within ten (10) days thereafter, an appeal pursuant to Chapter 3 of this Code, then the collector's action in revoking said person's business license shall be conclusive as to all matters involved, and the transacting and carrying on by any person of any business pursuant to said license shall thereafter be deemed a misdemeanor.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2972 , § 13, 9-3-19) Sec. 21-87. Refunds authorized.
Any business tax, or penalties or interest thereon, or portion thereof, may be refunded, if they were:
(a) Paid more than once;
(b) Erroneously or illegally collected;
(c) Paid in excess of the correct amount due;
(d) Issued for a business which subsequently, does not operate in the city, due to applicant's inability to obtain additional permits required under any provision of this Code. In such case, the applicant shall be entitled to a refund of the business tax paid. Where applicant cancels his license prior to any inspection or investigation taking place, then in that event, applicant shall be entitled to a refund of all tax, inspection or investigation fees paid, less the fifteen dollar ($15.00) application processing charge, without further deduction to cover the administrative cost therefor; (e) Issued for a business which subsequently becomes prohibited or illegal under any la w of the state. In such case, the amount refunded shall be prorated on the basis of the proportion which the number of months remaining in the period for which the business tax was paid bears to the number of months in the whole period.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-88. Application for refund.
No refund of monies howsoever paid or collected shall be allowed in whole or in part unless an application therefor is filed with the collector within a period of one (1) year from the expiration of the license period for which a refund is sought, and all such claims for refund must be filed with the collector on forms furnished by him or her in the manner prescribed by him or her. Such application may be made only by the person who made the payment, his or her guardian, executor, administrator or heir. Refunds shall not be made to an assignee of the applicant. Upon the filing of such a claim, and when he or she determines that a refund is warranted, the collector City of Santa Ana
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shall refund the amount warranted, less an amount equivalent to the application processing charge paid, which shall be retained to cover the administrative cost of the refu nd. Provided, however, that in the case of a refund made pursuant to Section 21-87(b), and where applicable, subsection (d), no deduction shall be made on account of the administrative cost therefor. The failure to file such application within the time pre scribed herein shall bar any future right of recovery.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 6, 6-21-22) Sec. 21-89. Same—No refund in instance of other delinquency.
Where the collector has determined pursuant to Section 21-88 that a refund is due upon a particular business license, but where the applicant or licensee is at the same time determined to be deli nquent or otherwise liable for a business license tax upon a separate business license, or for a separate unlicensed business; then in that event, the collector shall apply said refund amount to the balance owing and delinquent for said business license or for said unlicensed business. The collector shall then refund any amount remaining. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-90. Same—Fraud bar to refund.
No refund shall be made where the business license was issued under a misrepresentation of fact by the applicant and or such applicant actually engaged in the conduct of the business for which the license was granted prior to the date stated in applicant's original application. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-91. Same—Proof of payment prerequisite to refund.
In all cases proof of payment shall be a prerequisite to any refund. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-92. Same—No refund upon termination of business.
The business license taxes under the terms of this Chapter are not refundable upon termination of a business or for any unused portion or term of a license period.
(Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE VIII. ENFORCEMENT
Sec. 21-93. Enforcement; duty to examine all places of business.
It shall be the duty of the collector or his or her designated agents to enforce all of the provisions of this Chapter and the chief of police, the chief building official, the chief fire official, and the city attorney shall render such assistance in the enforcement thereof as may from time to time be required b y the collector. The collector in the exercise of the duties imposed hereunder and acting through his or her deputies or duly authorized assistants, shall examine or cause to be examined all places of business in the city to assure compliance with the prov isions of this Chapter.
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(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-93.1. Enforcement; inspection/collection service fee—Application. (a) Whenever any person charged with the duty of enforcing this Chapter shall have cause to re -examine, re- inspect, re-investigate, or re-visit a place of business for purposes of enforcing any portion of the business license tax code or to collect any sum owed pursuant to this Chapter, a separate inspection/ collection service fee shall be applicable in the amount as specified by resolution of the city council. (b) In the case of a re-examination, re-inspection, re-investigation, or re-visitation of any local place of business pursuant to a violation of this Chapter or noncompliance with the business license tax code, a reasonable period of time shall be given to the responsible party to correct t he violation or to come into satisfactory compliance with the requirements of this Chapter. If the violation or noncompliance necessitating the re - examination, re-inspection, re-investigation, or re-visitation of any local place of business is remedied prior to the expiration of the correction period no inspection/collection service fee shall be imposed. (c) Whenever the collection of the unpaid balance of any business license tax or other amount subject to the enforcement and collection requirements of this Chapter is sought by transfer to a collection agency, or any other method of assignment not inconsistent with the provisions of this Chapter, a transfer service fee in the amount as specified by resolution of the city council shall also apply. (d) The collector and his or her authorized agents charged with the duty of enforcing this Chapter, may waive the application of the inspection/collection service fee or any other service fee elsewhere established pursuant to the provisions of this Chapter, in connection with any satisfactory agreement entered into in accordance with Section 21-83.1, or any compromise of claim, or any agreement or settlement entered into pursuant to a court approved stipulation, or for other good cause shown. (Ord. No. NS-2841, § 6, 2-4-13)
Sec. 21-94. Enforcement; right of entry.
The collector and all of his or her duly authorized assistants and any polic e officer shall have the power and authority to enter during business hours, free of any charge, and at such other times as may be reasonable following due process of law, any place of business required to be licensed herein and demand a display of the required business license tax receipt. Failure to exhibit said license receipt upon demand therefor shall be punishable as specified hereinafter:
(a) Any person not having such license tax receipt theretofore issued on the display in a conspicuous place on the premises pursuant to Section 21-70 shall be deemed guilty of a criminal infraction. (b) Any licensee whose license is delinquent and unissued and/or any licensee who has been placed on notice of a suspended license by personal service, or served notice through the United States mail, or by a notice conspicuously posted upon the premises, and who has not applied for, or who is not undergoing the process of a hearing or appeal pursuant to Sections 21 -41 or 21-86 of this Chapter or Chapter 3 of this Code shall be deemed guilty of a criminal infraction. (c) Any person having been previously placed on notice of violation by personal service, or served notice through the United States mail, or by a notice conspicuously posted upon the premises, and who has not paid said business license tax or applied for exemption therefrom and who has not applied for, or who is not undergoing the process of a hearing or appeal pursuant to Sections 21 -41 or 21-86 of this Chapter or Chapter 3 of this Code shall be deemed guilty of a criminal infraction.
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(d) Any person having been previously placed on notice of revocation by personal service, or served notice through the United States mail, or by a notice conspicuously posted upon the premises, and who has not applied for, or who is not undergoing the process of a hearing or appeal pursuant to Section 21 -41 or 21-86 of this Chapter or Chapter 3 of this Code shall be deemed guilty of a misdemeanor. (e) Any person having such license tax receipt theretofore issued in his or her possession or under his or her control, who willfully fails to exhibit the same on demand as provided for herein, shall be guilty of a misdemeanor.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-95. Enforcement; duty to enforce civil and penal penalties against delinquent licensees.
It shall be the duty of the collector to maintain a list of all delinquent business taxes that are payable under this Chapter, and upon the same having attained the maximum penalty permitted under this Chapter of one hundred (100) per cent of the license tax due and upon the same coming to his or her knowledge, he or she shall give notice to the licensee of suspension and thereafter act to collect the same in his or her discretion, by suit or otherwise.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-96. Enforcement; duty to serve notice of violation; duty to file complaint or issue citation upon continued violation.
It shall be the duty of the collector to cause a notice of violation to be served on any person found to be in violation of this Chapter and thereafter to cause a complaint to be filed and/or a citation issued to any person found to be in continuing violation of any provisions of this Chapter. (Ord. No. NS-1922, § 1, 7-20-87)
ARTICLE IX. MISCELLANEOUS
Sec. 21-97. Swap meets.
Swap meet exhibitors and swap meet operators shall pay business license tax according to the provisions of this Section.
(a) Definitions. As used in this Section, the following words, terms, or phrases shall have the meaning hereinafter set forth:
(1) "Swap meet" shall mean any event where the place or location at which the event is held has been advertised by any means whatsoever as a place or location to which memb ers of the public at large, during a specified period of time, may bring identifiable, tangible property and exhibit the same for sale or exchange.
(2) "Swap meet exhibitor" shall mean any person exhibiting, displaying, selling, exchanging, offering for sale or exchange any property at a swap meet.
(3) "Swap meet operator" shall mean any person or organization conducting or operating the business of a swap meet on any premises in the city excluding, however, swap meet exhibitors.
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(b) Fees.
(1) Every swap meet operator shall pay an annual business license fee according to Section 21 -119(1) of this Chapter.
(2) Each swap meet exhibitor participating in a swap meet shall pay a fee in the amount specified in Section 21-120s(7) per swap meet stall per day. Where two (2) or more swap meet exhibitors share a single stall, each such exhibitor shall pay a separate daily stall fee. Such fee shall constitute a debt owed by the swap meet exhibitor to the city and shall be extinguished only by payment to the swap meet operator. The swap meet exhibitor shall pay the fee to the swap meet operator at the time and on each day the swap meet exhibitor participates in the swap meet. Any unpaid fee shall be paid upon the termination of the swap meet exhibitor's participation in the specific swap meet. Each swap meet operator shall collect the fee imposed by the provisions of this Section to the same extent and at the same time as any other fees are collected from every swap meet exhibitor. The amount of the fee shall be separately stated from any other monies collected by the swap meet operator. The fee shall be in addition to any other fee required by the city.
(3) On or before the tenth day following each swap meet, each swap meet operator shall file a return with the collector showing the total amount of fees collected under this Section and such other information as may be required by the collector. At the time the return is filed, the swap meet operator shall remit the full amount of the fees collected to the collector. Returns and payments shall be due immediately upon cessation of business by the swap meet operator for any reason. (4) Every swap meet operator shall hold all fees collected under this Section in trust for the account of the city until payment thereof is made to the collector. Any swap meet operator who fails to remit the fees within the time specified shall pay a penalty of ten (10) per cent for each month said payment is overdue.
(c) Records. Each swap meet operator shall keep full and accurate records of gross receipts and stall rentals to vendors in connection with the operation of the swap meet. The city, by and through its authorized officers shall have the right to examine and audit such records, including records of any bank accounts, at any reasonable time, and swap meet operators shall cooperate fully with inspection of them. Such records shall include, but are not limited to, the total amount of gross receipts from each day, as well as whatever records are necessary in order to provide the city any required information pursuant to subsection (b)(3) of this Section.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 7, 6-21-22) Sec. 21-98. Coin-operated machines or devices; license tax imposed; amount of tax; applicability of tax where devices are operated as secondary business. (a) For every person whose business is limited exclusively to renting, leasing, maintaining or letting the use of any coin-operated machine or device, or otherwise engaging in vending operations, or in operating any coin- operated machine or device at any location or fixed place of business owned or otherwise under the control of another, the annual license tax on business done exclusively within the city, for every device so rented, leased, let, maintained or operated, shall be the amount specified in Section 21 -120v(1) per each ten cent ($0.10) device and over or the amount specified in Section 21-120v(2)(a) for the first five cent ($0.05) device and under and thereafter the amount specified in Section 21-120v(2)(b) for each such additional device five cents ($0.05) and under.
(b) Any person whose primary business is not limited exclusively to coin- operated machines or devices, and for which he or she pays a license tax based on gross receipts, but who owns, leases, or rents for operation at his or her fixed place of business any coin-operated machine or device or who receives rent for the operation of City of Santa Ana
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any coin-operated machine or device thereat, or who otherwise participates in the gross receipts derived from the operation of such machines thereat; such person may elect to combine the gross receipts of both activities and pay a license tax based upon the total receipts thereof which will be assessed at the same rate as is applied to his or her primary business according to Section 21-119 of this Chapter. Such election shall be made in writing at the time of applicant's original application for a business license or may be made once annually thereafter at the time of licensee's application for a renewal license. (c) Where any licensee engages in the operation of any coin-operated machine or device at his or her fixed place of business subsequent to the commencement and licensing of licensee's primary business, the initial license tax due shall be identical to the tax established in subsection (a) above. However, upon the expiration of the initial licensing period, licensee may elect to pay the tax as provided pursuant to subsection (b) above. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 7, 6-21-22) Sec. 21-99. Same—Applicability of tax where coin-operated machines or devices are operated as primary business.
For every person whose primary business is limited exclusively to the operation of coin- operated machines or devices upon premises owned or controlled by such person, the annual license tax on business done shall be based upon the total gross receipts thereof according to Section 21-119(1) of this Chapter. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-100. Additional required information.
At the time the license required under Section 21-98 is applied for, and thereafter annually at the time of the renewal of such license, or at such other time as the collector may set, the applicant or licensee shall provide to the collector a list giving the kind or character of machine or device, local business name and street address, and number of machines or devices at each proposed or existing location. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) Sec. 21-101. Sealing of nonidentified or unlicensed machines.
The collector, as chief revenue officer, and each and every duly authorized revenue officer of t he city shall seal the coin openings or slots in a manner which will render inoperative the coin devices on any machine or device not otherwise exempted by the provisions of the chapter which is found available to the public for operation and which does not have stamped or affixed thereon the required identification or for which the proper license tax has not been paid in full; in lieu thereof, he or she may seize and hold any such machine for the payment of such license tax pursuant to Section 21-102. A service charge in the amount specified in Section 21 - 120s(1) shall be paid in advance to the collector, or his or her authorized agent by the owner or operator of any such machine or device so sealed for the removal of such seals. No person shall operate any machine or device so sealed without first submitting evidence to the collector or his or her duly authorized agent that payment of the required license tax and service charge prescribed in this Section has been made and until the required identification has been stamped upon or affixed to the machine or device and the collector or his or her agent has removed such seals. It is unlawful for any person other than the collector or his or her duly authorized agents to break any such seals. Any person so doing shall be deemed guilty of a misdemeanor. Upon receipt of evidence of payment in full of the tax and service charge and, when applicable, evidence of other required compliance by the owner or operator of any machine or device so sealed, the collector or his or her duly authorized agent shall break and remove such seals. In the event of seizure, any such machines shall be disposed of upon nonpayment of such City of Santa Ana
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tax as provided by the laws relative thereto, pursuant to Section 21 -102. Such machines may be reclaimed by the owners, prior to disposal, upon payment of taxes and all costs involved in the seizure, storage and handling thereof.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 5, 6-21-22) Sec. 21-102. Enforcement; seizure of devices.
In the event that any person engages in, conducts, transacts and carries on or manages the business of maintaining any coin-operated machines or devices and operates any such devices upon premises not belonging to, nor under the control of said person without obtaining a license therefor, or upon revocation of the same the collector shall seize such coin-operated machines or devices and hold them as security for the payment of the license fee or any other amount due and owing pursuant to this Chapter and shall not surrender same until a license is obtained or renewed. In the event the person owning or having control of the devic e fails, within a period of thirty (30) days after notice to said licensee served to the address listed on the application of the licensee where he or she consented to receive mail concerning his coin-operated machines or devices, to pay any license tax and any other amount due pursuant to this Chapter, then and in that event the device shall be disposed of as hereinafter provided in this section. Where the person owning or having control of the device has failed to obtain a license for said device prior to the seizure of said same then notice shall be served through United States mail to the person owning or having control of the device to the address affixed to the device listing the owner's name and address. Where no address is so affixed a notice shall be conspicuously posted upon the premises where the device is being operated. In the event said person fails, within a period of thirty (30) days after the serving or posting of said notice, to obtain a business license, then in that event the device shall be disposed of as hereinafter provided in this section.
The device or devices or so many thereof shall be sold to satisfy the amount of license fee or any other amount due to the city pursuant to this Chapter and any device or devices not sold shall be surrendered to the owner thereof; provided further that in the event the device or devices are sold for a sum less than the amount of the license fee or any other amount due and owing to the city pursuant to this Chapter, the owner of the devices shall, nevertheless, remain liable for the balance of such license fees due and payable. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-103. Owner of business responsible.
The owner of the business wherein the machine or device indicated herein is located shall be held responsible for the full amount of the tax if the owner of the machines or devices has not paid the tax when due and payable.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-104. Decal, metal-cal or labels to be attached to machine; information to be shown. (a) No person shall maintain any coin-operated machine or device within the city without having posted thereon, in a conspicuous place, a decal or label for identification purposes, on which is written the name, address and telephone number, if any, of the owner or operator thereof. (b) No person shall maintain any coin-operated machine or device within the city without having posted thereon, in a conspicuous place, a decal, metal-cal or label, which shall be issued and supplied by the collector upon payment of the required tax, which decal, metal-cal or label shall indicate that the license tax has been paid for the current period.
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(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-104.1. Exemptions.
No business license tax or identification shall be required for the maintenance or operation of:
(1) Any U.S. postage stamp machine;
(2) Any change machine;
(3) Any machine dispensing sanitary or hygienic articles, or drinking cups, towels or medicine, which machine or device is entirely owned by the owner or operator of the premises where installed and is maintained solely for the convenience of the employees, visitors or customers; (4) Any machine or device dispensing newspapers or magazines; provided, that the distributor owning and or the independently contracted agent servicing each such machine or device has paid a business tax for the current license year pursuant to Article X of this Chapter. In the event a business license tax has not been paid, the collector or his or her duly authorized agent shall take action pursuant to Sections 21-101 and 21-102 by sealing the coin openings or seizing any such machines or devices that are found available to the public for operation.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-105. Discontinuing maintenance of machines or devices; substitution of other machines or devices.
In the event any person discontinues maintaining any machine or device duly licensed under this Chapter during a period when such machine or device is licensed under this Chapter, such licensee may substitute another like machine or device in its place, and may maintain such substituted machine or device without payment of an additional license tax for the unexpired period of the license carried on such discontinued machine or device; provided, that such person shall surrender the city-provided identifying decal, metal-cal or label, whichever the case may be, to the collector or his or her duly authorized agent and obtain a new identifying decal, metal -cal or label for such unexpired period for such substituted machine or device. (Ord. No. NS-1922, § 1, 7-20,87)
Sec. 21-106. Applicability of chapter; operation of illegal machines or devices.
Nothing contained in this Chapter nor any action of the collector or any duly authorized agent in issuing a license shall in any manner be considered as expressing any opinion or approval as to the legality of any machine or device and shall be no authority to operate any machines or devices as set forth in this article which may be illegal or illegally operated under the laws of the state. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-107. Peddlers, solicitors and pushcarts.
(a) Any person, whether a resident of the city or not, traveling by foot, automotive vehicle or any other type conveyance from place to place or from street to street carrying, conveying or transporting goods, wares, merchandise, and offering and exposing the same for sale, or making sales and delivering articles to the purchasers or offering to sell or take orders for goods, wares, or merchandise or other things of value for City of Santa Ana
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future delivery or for services to be performed in the future, or canvassing any opinions, preferences, endorsements or other information from persons within the city, not otherwise licensed under the provisions of this Chapter or not having a regularly established place of business within the city, as said established place of business within the city shall be defined in this Section, shall pay a license fee as follows:
For Peddlers:
(1) The amount specified in Section 21-120p(2) per year, or the amount specified in Section 21-120p(2) per day, unless the person, persons, firms or corporations for whom such persons peddling and/or soliciting have a principal's, peddler's or solicitor's license as hereinafter provided pursuant to Section 21-108.
(2) The amount specified in Section 21-120p(3) per year, if the person, persons, firms or corporations for whom such person is peddling and/or soliciting have a principal's, peddler's or solicitor's license.
For Solicitors:
(3) The amount specified in Section 21-120s(4) per year, unless the person, persons, firms or corporations for whom such persons are soliciting have a principal's solicitor's license as hereinafter provided pursuant to Section 21-108.
(4) The amount specified in Section 21-120s(5) per year, if the person, persons, firms or corporations for whom such person is soliciting have a principal's solicitor's license. (b) The phrase "having a regularly established place of business within the city" as used hereinabove and hereinafter below shall be defined as any individual having a fixed place of business, within the city for a period of not less than ninety (90) days and having a state board of equalization permit number applicable to the aforementioned place of business so established in the city. (c) Every person operating a pushcart vending business within the city shall pay a license fee in the amount specified in Section 21-120p(6) per year for each such pushcart operated within the city. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 5, 6-18-90; Ord. No. NS-2133, § 3, 7-15-91; Ord. No. NS-3028 , § 7, 6-21-22)
Sec. 21-108. Principal's, peddler's or solicitor's license.
Any person, firm or corporation, either employing one or more individuals, or contracting with one or more independent contractors to have such individuals solicit the retail sale of any goods, wares, merchandise, services or other things of value for future delivery or for services to be performed in the future, or to peddle or sell goods, wares and merchandise or to solicit any opinions, preferences, endorsements or other information from persons within the city, not otherwise licensed under the provisions of this Chapter or not having a regularly established place of business within the city, may obtain a principal's, peddler's or s olicitor's license and pay a license fee as follows:
For a Principal Peddler's License, the amount specified in Section 21-120p(4) annually, plus an additional amount as specified in Section 21-120p(4) per employee for each employee engaged in peddling within the city, including independent contractors required to be separately licensed pursuant to Section 21 -107(a).
For a Principal Solicitor's License, the amount specified in Section 21-120s(6) annually, plus an additional amount as specified in Section 21-120s(6) per employee for each employee engaged in peddling within the City, including independent contractors required to be separately licensed pursuant to Section 21 -107(a).
The collector shall not issue such license until the applicant files with the collector a list of all peddlers and/or solicitors employed by the applicant or with whom the applicant has contracted and a signed agreement that the City of Santa Ana
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applicant, within five (5) days thereafter, will notify the collector in writing of every change in per sonnel of those soliciting and/or peddling for him.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 6, 6-18-90; Ord. No. NS-3028 , § 7, 6-21-22) Sec. 21-109. Same; requirements for license.
No license to peddle or solicit shall be issued to any person unless and until such person furnishes the collector with his state board of equalization permit number and agrees to r eport separately in his sales tax return to the state the amount of receipts from sales in the city and agrees to pay the required sales or use tax on such receipts. This section shall apply only to those businesses subject to payment of a sales or use tax under the laws of the State of California.
(Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-110. Radio broadcasting, television broadcasting; soliciting advertising therefor.
Any person engaged in transacting and carrying on activities related to the generation of electromagnetic waves within the city for the purpose of commercial broadcasting by radio transmission or television transmis sion shall pay an annual business license fee according to Section 21-119(1) of this Chapter.
Any person engaged in transacting and carrying on activities related to the solicitation of advertising within the city for radio or television transmission in intrastate commercial broadcasting and not otherwise licensed under the provisions of this Chapter and not having a regularly established place of business within the city pursuant to Section 21-107 shall pay an annual business license fee according to Section 21- 108 of this Chapter. (Ord. No. NS-1922, § 1, 7-20-87)
Sec. 21-111. Off-premises commercial advertising signs; erecting of, maintaining of, selling of advertising space therefor.
Any person engaged in transacting and carrying on the business of erecting, maintaining and selling of advertising space on off-premises commercial advertising signs shall pay a license tax therefor per sign face located in the city. For sign faces with gross dimensions equal to or less than three hundred (300) square feet said tax shall be at the rate as specified in Section 21-120o(1) per sign face. For sign faces with gross dimensions in excess of three hundred (300) square feet said tax shall be at the rate as specified in Section 21 -120o(2) per sign face. (Ord. No. NS-1926, § 1, 10-19-87; Ord. No. NS-3028 , § 7, 6-21-22) Sec. 21-112. Trucking and hauling; transportation of property; delivering or carrying of goods, wares or merchandise; occasional and incidental activity; exemptions and exceptions.
(a) Transportation of property. Every person whose business is that of operator of any vehicle used for the transportation of property for hire or compensation, and who in the course of that business uses the public streets and highways within the city to receive or discharge, pick up or deliver property within the city, shall pay a business tax as specified in Section 21-120t(2) per year for each such vehicle. (b) Delivering or carrying of goods, wares or merchandise. Every person who uses any vehicle over the public streets and highways of the city to receive or discharge property, or for delivering or carrying goods, wares or City of Santa Ana
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merchandise sold, let or handled by him in the course of this business within the city, and who is not otherwise specifically taxed by other provisions of this Chapter, shall pay a business tax as specified in Section 21-120t(2) per year for each such vehicle.
(c) Occasional and incidental activity. The provisions of this Section shall not apply to persons operating such vehicles within the city on an occasional and incidental basis. For the purpose of this Section, "occasional [and] incidental" is defined to be the doing or performing of not more than three (3) incidents or acts as specified in this Section in any one-year period.
(d) Exemption and exceptions. The business tax imposed under the provisions of this Section shall not apply to any person who is subject to tax under the Motor Carriers of Property Permit Fee Act, commencing with Section 7231 of the California Revenue and Taxation Code; nor shall the provisions of this Section apply to the operation of any vehicle operated exclusively in interstate commerce. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 7, 6-21-22) Sec. 21-113. Telephone services.
Every person engaged in the business of providing telephone services shall pay an annual business fee according to section 21-119(2) of this Chapter.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031 , § 4, 11-8-22) Sec. 21-114. Professional services.
Every person engaged in the business of providing professional services shall be taxed upon the basis of the number of persons engaged or employed in such business, in accordance with the following schedule:
(a) Each location in which professional services are rendered, whether by one (1) or more practicing principals or by one (1) or more professional independent contractors rendering professional services pursuant to a contract of employment, or whether by one (1) or more salaried professional employees engaged in rendering professional services—the amount as specified in Section 21-120p(5)(a) ; (b) Each practicing professional principal, in excess of one (1), engaged in rendering professional services, whether as owner or as partner or officer or as professional shareholder—the amount as specified in Section 21-120p(5)(b);
(c) Each additional person engaged or employed, either as professional independent contractor rendering professional services pursuant to a contract of employment, or whether as salaried professional employee engaged in rendering professional services—the amount as specified in Section 21- 120p(5)(c);
(d) Each additional person engaged or employed otherwise—the amount as specified in Section 21- 120p(5)(d).
For the purpose of this Section, the phrase "each practicing professional principal" shall be deemed and is declared to mean the maximum number of persons engaged in rendering professional services (other than salaried employees or independent contractors engaging their services pursuant to a contract of employment and not otherwise sharing in the profits of the business) and shall be computed based upon the maximum number of practicing principals engaged in rendering professional services for any one -day period during any part of the preceding business license period.
For the purpose of this Section, the phrase "each additional person engaged or employed" shall be deemed and is declared to mean the average number of persons, whether licensed practitioners employed or otherwise City of Santa Ana
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engaged in rendering professional services, and not otherwise sharing in the profits of the business, or whether any other category of person, directly or indirectly paid for their service and not otherwise sharing in the profits of the business.
For the purpose of determining the average number of persons engaged or employed, the person subject to the tax shall ascertain separately the total number of hours of service performed by licensed practitioners engaged or employed during the preceding year, including paid leave, and the total number of hours of service performed by all other persons engaged or employed during the preceding year, including paid leave, in each case dividing the total number of hours of service by the fulltime equivalent (two thousand eighty (2,080) hours). In computing the average number of persons engaged or employed, fractions shall be rounded to the nearest whole number with one-half (0.5) or greater being rounded up and less than one-half (0.5) being rounded down.
In the case of an application for an original license, applicant shall state both the maximum number of practicing professionals engaged or intended to be engaged in rendering professional services and the average number of persons engaged or employed or intended to be engaged or employed to assist in the conduct of applicant's business. Thereafter, the license tax provided for herein shall be based solely upon the hereinabove set forth method of computation.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 2, 7-15-91; Ord. No. NS-3028 , § 7, 6-21-22) Sec. 21-115. Same—Keeping of records; applicability of audit.
Section 21-80 shall apply to all statements provided to be filed under Section 21 -114; provided however, that the inspection of books and records shall be limited specifically to books and records reflecting the employees and other persons engaged in the business activity.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2841, § 5, 2-4-13) ARTICLE X. RATES AND SCHEDULES
Sec. 21-116. Applicability of article.
The tax for any license required by any section of this Chapter shall be set forth in this article for the particular business involved. The tax and the duration of the license shall be annual, quarterly, monthly, and daily as indicated in this article. The letter "A" following the tax shall indicate an annual rate; the letter "Q" shall indicate a quarterly rate; the letter "M" shall indicate a monthly rate; the letter "D" shall indicate a daily rate. No letter following the tax shall indicate a variable duration as determined in connection with other applicable provisions set forth elsewhere in the Santa Ana Municipal Code. In place of a tax, the letter "C" shall denote a specified charge.
The applicability of the charge shall be determined by the Business License Tax Code provision establishing it. In the place of either a tax or charge, the letter "T" shall denote a specified qualifying threshold amount. The applicability of the qualifying threshold amount shall be determined by t he Business License Tax Code provision establishing it.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-117. New business license tax.
(a) A license tax for a new business shall be paid in advance or a deposit taken in lieu thereof prior to any new business activity being undertaken.
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(b) All new businesses for whom flat fees are made the basis for fixing the amount of such license shall pay in advance an amount equal to one-quarter (¼) of the annual fee therefor for each quarter and fraction of a quarter remaining during the period for which the new license is issued, except as otherwise specified hereinafter.
(c) All new businesses for whom the gross receipts of such business are made the basis for fixing the amount of such license shall pay their annual fee based on actual gross receipts received during the period for which the new license is issued. For any business which is commenced subsequent to April first, the renewal fee shall be based upon an annualization of the actual gross receipts received during the period for which the new license is issued. In the event an applicant fails to submit a report of the actual gross receipts received pursuant to Section 21-77, the fee shall be based on the collector's estimate of the actual gross receipts received pursuant to Section 21-79. In lieu of payment in advance, each applicant shall post a deposit in the amount hereinafter indicated.
(1) All new businesses beginning business on or after April first of the current year but before April first of the following year shall post a deposit of two hundred dollars ($200.00). (2) All new businesses beginning business on or after March first of the current year but before April first of current year shall post a deposit equivalent to one and one-twelfth (1 1/12) of the required deposit for all new businesses beginning April first.
Where an applicant's fee is determined to be in excess of the amount of the specified deposit, said deficiency shall be added without interest or penalty to the amount of the applicant's renewal fee as calculated pursuant to Sections 21-77 or 21-79. Where an applicant ceases to transact and carry on the business licensed on or before the expiration of the period for which the new license is issued, and where the applicant's fee is determined to be in excess of the amount of the specified deposit, the applicant shall remain liable for said deficiency which shall be deemed due and collectible at the same time and in the same manner as all other annual gross receipts fees due and payable upon renewal.
Where an applicant's fee is determined to be less than the amount of the specified deposit, said surplus shall be applied without interest as a credit against the amount of the applicant's renewal fee as calculated pursuant to Sections 21-77 or 21-79. Where an applicant ceases to transact and carry on the busine ss licensed on or before the expiration of the period for which the new license is issued, and where the applicant's fee is determined to be less than the amount of the specified deposit, said surplus may be requested by applicant as a refund; provided, however, that such request must be made in writing and must be made within one (1) year of the expiration of the initial license period.
(d) Notwithstanding subsection (b) above, unless an adjustment or exemption is obtained pursuant to this Chapter, the minimum tax pursuant to this section shall be in the amount as specified in Section 21 -120n. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 3, 7-15-91; Ord. No. NS-2161, § 8, 6-15-92; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-118. Same; nonresident businesses.
(a) All new businesses located elsewhere, excluding businesses engaged in the business of pushcart vending or in erecting, maintaining and selling of advertising space on off-premises commercial advertising signs in the city or engaged in the operation of coin-operated machines or devices, or engaged otherwise in vending operations, but transacting and carrying on business in the city, and for whom flat rates or variable flat rates are made the basis for fixing the amount of such license, shall have the option of paying the flat rate or variable flat rate amount or basing the amount of their tax upon their attributable gros s receipts in accordance with Section 21-119(1), to which no basic tax rate amount shall be added, but for which a two - hundred-dollar-annual deposit shall be required to offset any tax due should applicant cease operation City of Santa Ana
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before the expiration of the license term. Provided further that all such businesses who so elect shall pay in advance an amount therefor as set forth in Section 21-117, subsection (c) above. Said deposit to be applied as a credit or to be taken as a refund in the same manner as is set forth in Section 21-117, subsection (c). (b) All new businesses located elsewhere, but transacting and carrying on business in the city for whom gross receipts are made the basis for fixing the amount of such license, shall base their tax upon attributable g ross receipts in a manner similar to that of all other similarly classified businesses for whom gross receipts are made the basis for fixing the amount of their license, to which no basic tax rate amount shall be added.
Provided further that all such businesses shall pay in advance an amount therefor as set forth in Section 21 - 117, subsection (c) above. Said deposit to be applied as a credit, or to be taken as a refund in the same manner as is set forth in Section 21-117, subsection (c). (c) Unless an adjustment of exemption is obtained pursuant to this Chapter, the minimum tax pursuant to this section shall be in the amount as specified in Section 21-120n. (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 7, 6-18-90; Ord. No. NS-2131, § 4A, 7-15-91; Ord. No. NS- 2133, § 4A, 7-15-91; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-118.1. In lieu deposits—Election of alternate in lieu deposit.
Whenever an applicant for a new business license for whom the gross receipts of such business is made the basis for fixing the amount of such license is required under the terms of Sections 21 -117 or 21-118 to post a deposit in lieu of payment in advance of their business license tax, said applicant may alternatively elect to post an adjusted deposit amount equal to the amount of their anticipated tax based on an acceptable good- faith estimation of their expected gross receipts.
(Ord. No. NS-2841, § 6, 2-4-13)
Sec. 21-119. Gross receipts tax rates.
Gross receipts tax rates for the different classifications are as follows:
(1) Classification "A"—All businesses for which no tax is specified elsewhere in this article, including, but not limited to: retail businesses and sales at retail, services (inclu ding real estate brokers, real estate developers, insurance brokers, life and disability insurance analysts, stock and bond brokers, commission agents, brokers or merchants, professional services, ambulance services, and recreational services), hotels, motels, theaters, and food establishments:
For each separate place of business licensed, a basic rate of sixty dollars ($60.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:
$0.65 per $1,000.00
(2) Classification "B"—Manufacturing, processing, wholesale businesses and sales at wholesale, sales of gasoline and motor fuels, telephone services, and public utility services:
For each separate place of business licensed, a basic rate of sixty dollars ($60.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:
$0.50 per $1,000.00
(3) Classification "C"—Rental of commercial real estate:
For the first property location licensed, a basic rate of sixty dollars ($60.00), s ubject to adjustment for inflation/deflation in accordance with section 21-120, plus:
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$0.65 per $1,000.00
For each additional property location licensed, a basic rate of ten dollars ($10.00), subject to adjustment for inflation/deflation in accordance with section 21-120, plus:
$0.65 per $1,000.00
(4) Classification "D"—Home based businesses: for each separate place of business licensed, a basic rate of fifteen dollars ($15.00), subject to adjustment for inflation/deflation in accordance with section 21- 120, plus:
$0.65 per $1,000.00
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2000, § 3, 3-6-89; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-119.1. Maximum tax.
The maximum annual business license tax payable for any single business license required to be obtained pursuant to the Chapter shall not exceed one hundred thousand dollars ($100,000.00), which amount together with the basic rate amounts established under Section 21-119 shall be subject to annual adjustment in accordance with Section 21-120.
( Ord. No. NS-3031 , § 5, 11-8-22)
Ord. No. NS-3031 , § 5, adopted November 8, 2022, renumbered §§ 21—119.1—21-119.3 as §§ 21-119.2—21- 119.4.
Sec. 21-119.2. Holding companies and pass-through entities—Minimum tax amount.
Whenever a business entity or other person functions as a holding company or pass -through entity and does not directly generate gross receipts within the city, but otherwise transacts and carries on business within the city, or maintains a business presence in the city, or is registered as a business entity with the California Secretary of State pursuant to the California Corporations Code as the same now exists or as may be hereafter amended from time-to-time with a designated or registered business entity address located in the city, then the business license tax liability of such business entity or person under Section 21-119 shall be limited to the minimum tax amount. (Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031 , § 5, 11-8-22) Editor's note(s)—See editor's note, § 21-119.1.
Sec. 21-119.3. Home-based businesses—Alternate tax.
(a) Persons liable under the terms of this Chapter for gross receipts business license taxes for business conducted from a home residence within the city and whose gross receipts therefrom do not exceed the annual amount specified in Section 21-120h(1)(a) per year shall have the right to elect an alternate flat rate business license tax as set forth in Section 21-120h of this Chapter for home based businesses and home based occupations, in lieu of the gross receipts tax which would otherwise be applicable. Such election shall be made in writing at the time of applicant's original application for a business license or may be made once annually thereafter at the time of licensee's application for a renewal license. (b) Home based businesses and home occupations eligible for election of an alternate flat ra te tax assessment shall be deemed to be those businesses or occupations conducted from a home residence in the city whose business or occupational use of said residential premises meets the requirements for a home occupation City of Santa Ana
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permit as set forth in Sections 41-193.1 through 41-607 of this Code as the same now exist or as they may be hereafter amended from time-to-time.
(Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031 , § 5, 11-8-22) Editor's note(s)—See editor's note, § 21-119.1.
Sec. 21-119.4. Election of an alternate tax assessment basis—Effect.
In every case where a licensee exercises a right under this Chapter to elect an alternate tax assessment basis the effect of said election shall be as follows:
(a) In the event an existing licensee elects to convert their annual license assessment to an a lternate tax assessment basis with an annual term beginning one (1) or more calendar quarters before the commencement of their pre-existing tax assessment basis and ending one (1) or more calendar quarters after the conclusion of their pre-existing tax assessment basis, then their initial alternate tax assessment shall be subject to a quarterly proration to account for the reduced number of calendar quarters remaining in the term of the newly elected tax assessment. (b) In the event an existing licensee elects to convert their annual license assessment to an alternate tax assessment basis with an annual term beginning one (1) or more calendar quarters after the commencement of their pre-existing tax assessment basis and ending one (1) or more calendar quarters after the conclusion of their pre-existing tax assessment basis, then their pre-existing tax assessment shall be retroactively increased pro rata by the number of quarters necessary to account for the quarterly periods remaining between the conclusion of their pre- existing licensing term and the commencement of their alternate tax assessment licensing term. (Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3031 , § 5, 11-8-22) Editor's note(s)—See editor's note, § 21-119.1.
Sec. 21-120. Flat rate and variable flat rate tax schedules; adjustment for inflation/deflation. (a) Flat rate and variable flat rate taxes are as set forth in Section 21-120a through 21-120w of this article. (b) Each tax, including each of its components, and any specified deposit amount required in lieu thereof, together with any other charges which are imposed pursuant to this chapter, but excluding the indivi dual gross receipts tax rates set forth in section 21-119, shall be automatically adjusted on November 1, 2023, and on November 1 of each year thereafter, upward or downward, equivalent to the most recent change in the annual average of the consumer price index (All Urban Consumers 1982 -84 = 100) as published by the United States Department of Labor for the Los Angeles-Long Beach-Anaheim metropolitan area as the same now exists or as shall be from time to time amended by the United States Department of Labo r. (c) For purposes of calculating the annual inflator/deflator factor under this section, the base year shall be that year ending with the quarter ending June 30, 2022. Rates (tax rates, basic rate amounts, charges, specified deposit amounts, qualifying threshold amounts, maximum tax cap amounts) shall first be adjusted on November 1, 2023, and thereafter, based on the annually calculated change from the base year through to September 30 of each successive year. Said change shall be rounded off to the nea rest whole dollar as follows: If the remaining fraction of a dollar is forty-nine one-hundredths of a dollar or less, such fraction shall be omitted. If the remaining fraction of a percent is fifty one- hundredths of a dollar or more, the next highest dollar shall be applied.
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2131, § 5, 7-15-91; Ord. No. NS-3031 , § 5, 11-8-22) City of Santa Ana
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Sec. 21-120a. Advertising services, amusement services. (1) ADVERTISING SERVICE:
(a) Distributing samples or posting bills$250.00 A
(2) AMUSEMENT SERVICES:
(a) Amusement center (a location where mechanical devices or animals are maintained for furnishing rides or entertainment and which may also include vending stands):
(i) More than ten (10) days:
Base rate500.00 M
Plus, for each ride or vending stand in excess of 1060.00 Q (b) Sporting exhibitions100.00 D
(c) Carnival, circuses, concerts, tent shows and open air shows seating not more than four thousand (4,000) persons:
First day200.00 D
Each additional day100.00 D
(d) Carnival, circuses, concerts, tent shows and open air shows seating more than four thousand (4,000) persons:
First day500.00 D
Each additional day300.00 D
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 8, 6-18-90; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120b. Building tradesmen and taxi companies.
(1) BUILDING TRADESMEN, per individual35.00 A
(2) TAXI COMPANY, per vehicle35.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 9, 6-18-90; Ord. No. NS-2349, § 1, 5-18-98; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-120c. Catering trucks, change in location amendment charge, change in name amendment charge, Christmas tree and pumpkin lots, contractors. (1) CATERING TRUCKS, per vehicle$250.00 A
(2) CHANGE IN LOCATION AMENDMENT CHARGE, per license15.00 C (3) CHANGE IN NAME AMENDMENT CHARGE, per license15.00 C (4) CHRISTMAS TREE LOTS, per lot8.00 D
(5) PUMPKIN PATCH LOTS, per lot8.00 D
(6) CONTRACTOR—GENERAL CONTRACTOR, prorated quarterly per contractor300.00 A (7) CONTRACTOR—SPECIALTY and SUBCONTRACTOR, prorated quarterly per contractor275.00 A City of Santa Ana
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(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 10, 6-18-90; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS- 3031 , § 5, 11-8-22)
Sec. 21-120d. Dances, duplicate license charge.
(1) DANCE, PUBLIC, per dance35.00 D
(2) DUPLICATE LICENSE CHARGE, per license10.00 C
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120e. Reserved.
Sec. 21-120f. Firework stand.
FIREWORK STAND, per stand$250.00 ;
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120g. Gardeners or lawn maintenance workers.
GARDENERS OR LAWN MAINTENANCE WORKER, per individual$ 35.00 A ; (Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120h. Home-based businesses, home occupations, hobby—Gratuitous license charge. (1) HOME- BASED BUSINESS/HOME OCCUPATION$ 35.00 A
a. QUALIFYING THRESHOLD AMOUNT per licensee50,000.00 T
(2) HOBBY—GRATUITOUS LICENSE CHARGE, per license10.00 C (Ord. No. NS-2841, § 6, 2-4-13; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120i. Independent contractors, ice cream trucks, itinerant merchants, insurance solicitors, initial period application processing charge. (1) INDEPENDENT CONTRACTOR, per individual$ 35.00 A
(2) INITIAL PERIOD APPLICATION PROCESSING CHARGE Per license application15.00 C (3) ITINERANT MERCHANT250.00 Q
(4) INSURANCE SOLICITOR, per solicitor35.00 A
(5) ICE CREAM TRUCKS250.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 11, 6-18-90; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS- 3031 , § 5, 11-8-22)
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Sec. 21-120j. Janitorial and building maintenance services, junk collection. (1) JANITORS AND BUILDING MAINTENANCE WORKERS, per individual$ 35.00 A (2) JUNK COLLECTION, per vehicle250.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 12, 6-18-90; Ord. No. NS-3031 , § 5, 11-8-22) Secs. 21-120k, 21-120l. Reserved.
Sec. 21-120m. Minimum gross receipts—Qualifying threshold amount/gratuitous license charge.
MINIMUM GROSS RECEIPTS—QUALIFYING THRESHOLD AMOUNT/GRATUITOUS LICENSE CHARGE (a) QUALIFYING THRESHOLD AMOUNT per licensee$5,000.00 A (b) GRATUITOUS LICENSE CHARGE, per license10.00 C
( Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120n. New Business—Minimum tax.
NEW BUSINESS—MINIMUM TAX
Per license$10.00 A
( Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120o. Off-premises commercial advertising signs.
OFF-PREMISE COMMERCIAL ADVERTISING SIGNS:
(1) Sign faces with gross dimensions equal to or less than three hundred (300) square feet, per sign face$ 190.00 A
(2) Sign faces with gross dimensions in excess of three hundred (300) square feet, per sign face250.00 A
(Ord. No. NS-1926, § 2, 10-19-87; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120p. Peddlers and pushcarts.
(2) PEDDLER, per peddler as principal250.00 A
or10.00 D
(3) PEDDLER, per peddler as independent contractor35.00 A (4) PRINCIPAL'S PEDDLER'S LICENSE$400.00 A
per each person engaged in peddling in the city35.00 A
(5) Reserved.
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(6) PUSHCARTS, per pushcart500.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 13, 6-18-90; Ord. No. NS-2131, § 6A, 7-15-91; Ord. No. NS- 2133, § 5A, 7-15-91; Ord. No. NS-3031 , § 5, 11-8-22)
Sec. 21-120q. Reserved.
Sec. 21-120r. Real estate agents, renewal application processing charge, rental of residential real estate: residential property rental; residential apartment rental; rooming house rental; residential mobile home property rental; revalidation application processing charge.
(1) REAL ESTATE AGENT, per agent$ 35.00 A
(2) RENEWAL APPLICATION PROCESSING CHARGE Per license renewal application15.00 C (3) RESIDENTIAL PROPERTY RENTAL UNIT63.00 A
Plus per each property rental unit13.00 A
(4) RESIDENTIAL APARTMENT RENTAL63.00 A
Plus per each apartment rental unit13.00 A
(5) ROOMING HOUSE RENTAL63.00 A
Plus per each room rental unit13.00 A
(6) RESIDENTIAL MOBILE HOME PROPERTY RENTAL63.00 A
Plus per each rental unit space13.00 A
(7) REVALIDATION APPLICATION PROCESSING CHARGE
Per license revalidation application10.00 C
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120r.1. Residential rental surcharge.
(a) Except as otherwise provided in subsection (b) of this section, the business license tax for residential property rental and residential apartment rental shall consist of the amount set forth in subsections (2) and (3) of Section 21-120r plus an annual surcharge of nineteen dollars and fifty cents ($19.50) per each property rental unit or each apartment rental unit. The surcharge hereby established shall be due and payable and shall be paid at the same time and in the same manner that the amount due under Section 21 -120r is due and payable. No business license shall be issued unless the surcharge is paid. Penalties and interest shall be assessed upon the total amount due and unpaid at the rate specified in this Chapter until such time as both the amount due under Section 21-120r and the surcharge due under this section are paid in full. All provisions for the enforcement, collection and recovery of unpaid business license taxes shall likewise apply to the enforcement, collection and recovery of any unpaid surcharge. This section shall expire on, and be of no further force or effect after December 31, 2015.
(b) The city council may, by resolution, establish a program whereby particular residential properties or residential apartments, licensed pursuant to this Chapter, may be certified as having met standards of excellence in property maintenance. In such event, the executive director of the planning and building City of Santa Ana
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agency shall be responsible for the implementation of that program. Owners of property certified pursuant to that program shall be exempt from the payment of the surcharge specified in subsection (a) of t his section for the three (3) tax years next succeeding the time of such certification. The executive director of the planning and building agency shall provide the executive director of the finance and management services agency with listings of licensed properties certified under this program, which shall be periodically updated to reflect changes. The city council may provide for such financial limitations on the exemptions to be granted from the surcharge as the city council deems appropriate. (Ord. No. NS-2173, § 1, 8-17-92; Ord. No. NS-2223, § 1, 7-5-94; Ord. No. NS-2408, § 3, 11-1-99; Ord. No. NS-2527, § 3, 5-19-03; Ord. No. NS-2757, § 3, 9-4-07; Ord. No. NS-2811, § 3, 12-6-10; Ord. No. NS-2824, § 3, 9-19-11) Sec. 21-120s. Sealing of nonidentified or unlicensed machines; shoeshine stands, solicitors, swap meet exhibitor.
(1) SEALING OF NONIDENTIFIED OR UNLICENSED MACHINES Per machine$ 10.00 C (2) SHOESHINE STAND, per operator35.00 A
(3) SOLICITOR, per solicitor as principal250.00 A
(4) SOLICITOR, per solicitor as independent contractor35.00 A (5) PRINCIPAL'S SOLICITOR'S LICENSE400.00 A
Per each person engaged in soliciting in the city35.00 A (6) SWAP MEET EXHIBITOR, per participating exhibitor3.00 D (Ord. No. NS-1922, § 1, 7 20-87; Ord. No. NS-2064, § 15, 6-18-90; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS- 3031 , § 5, 11-8-22)
Sec. 21-120t. Theatrical performance; tow trucks, trucking and general delivery. (1) THEATRICAL PERFORMANCE$ 120.00 D
(2) TRUCKING AND GENERAL DELIVERY, per vehicle120.00 A
(3) TOW TRUCKS, per vehicle120.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-2064, § 16, 6-18-90; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-120u. Reserved.
Sec. 21-120v. Vending and coin-operated machines.
COIN-OPERATED MACHINES OR DEVICES:
(1) Per $0.25 device and over
(a) First machine25.00 A
(b) Per additional device13.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3028 , § 8, 6-21-22; Ord. No. NS-3031 , § 5, 11-8-22) City of Santa Ana
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Sec. 21-120w. Warehouses.
(1) WAREHOUSE$250.00 A
(Ord. No. NS-1922, § 1, 7-20-87; Ord. No. NS-3031 , § 5, 11-8-22) Sec. 21-121. Reserved.
Ord. No. NS-3031 , § 5, adopted November 8, 2022, repealed § 21-121. Former § 21-121 pertained to adjustment for inflation/deflation and derived from Ord. No. NS-1922, § 1, adopted July 20, 1987.
ARTICLE XI. ASSESSMENT BY LIEN
Sec. 21-122. Nonpayment of tax; assessment by lien; recording and enforcement of liens; recording service fee.
(a) Recording of a certificate of lien. If any amount, including penalties, interest, and administrative charges required to be paid under this chapter is not paid when due, the collector or any duly authorized revenue officer acting as his or her designated agent, may record or cause to be recorded, in the office of the county recorder(s) of such counties as the collector may determine, a certificate which specifies the amount due, the name and address of the person liable for the same, a statement that the collector has complied with all provisions of this chapter in the determination of the amount required to be paid, and a legal description of the real property owned by such person. From the time of the recording of the certificate, the amount required to be paid together with penalties, interest, and administrative charges owing constitutes a lien upon all real property in the county owned by such person or thereafter acquired before the lien expires. The lien shall have the force, effect and priority of a tax lien and shall continue for ten (10) years from the filing of a certificate unless sooner released or otherwise discharged. (b) Recording service fee. Whenever the collector in his or her discretion determines that the recording of a certificate of lien is desirable to secure and effectuate the collection of any amount required to be paid under the terms of this chapter, then a recording service fee shall be applicable in the amount as specified by resolution of the city council.
(Ord. No. NS-2161, § 9, 6-15-92; Ord. No. NS-2841, § 5, 2-4-13) Editor's note(s)—Ord. No. NS-2841, § 5, adopted February 4, 2013, amended the title of § 21-122 to read as set out herein. Previously § 21-122 was titled "Nonpayment of tax; assessment by lien." Secs. 21-123—21-125. Reserved.
Editor's note(s)—Ord. No. NS-2841, § 5, adopted February 4, 2013, repealed §§ 21-123—21-125 in their entirety.
Former §§ 21-123—21-125 pertained to notice of hearing of lien collection of delinquent taxes by special tax roll assessment; recordation of lien for delinquent charges, respectively, and were derived from Ord. No. NS - 2161, § 9, adopted June 15, 1992.
ARTICLE XII. MARIJUANA COLLECTIVES/COOPERATIVES
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Sec. 21-126. Purpose.
This article is required for the purpose of fixing the rate of taxation for marijuana collectives/cooperatives and for the purpose of providing a tax levy for the usual and current expenses of the City of Santa Ana. The taxes required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and are not regulatory permit fees. ( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-127. Marijuana collectives/cooperatives—Annual business license tax assessment. (a) Annual business license tax assessment for marijuana collectives/cooperatives. (1) Every collective/cooperative whether it is organized or conducted as a "not for profit" business, a "nonprofit" business, or a "for-profit" business, shall pay an annual business license tax in accordance with Chapter 21 and the sections and subsections hereunder. (2) For the purposes of this article, a marijuana collective/cooperative is defined in section 40- 101(b) and is considered to be a business as that term is defined in section 21-3. (3) For the purposes of this article, a collective/cooperative is not considered to be a religious or charitable organization.
(4) "Medical marijuana collective/cooperative" or "collective/cooperative" shall mean any activity regulated or permitted by chapter 40.
(5) For the purposes of this article, a marijuana collective/cooperative is not considered to be a business or person having a "specified exemption" or "specified exclusion" from business license taxation as set forth in sections 21-48 and 21-49.
(6) For the purposes of this article, a "nonprofit organization" shall mean any institution or organization that is exempted from taxes measured by income or gross receipts pursuant to Article XIII, Section 26 of the California Constitution as codified under Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code and Section 37101 (c) of the Government Code or Sub - Chapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986. An institution or organization operating as a collective/cooperative and claiming a gross receipts assessment business license tax exemption under this section shall have the burden of furnishing to the collector such information as the collector may require to validate the claim of exemption including, but not limited to, such a determination by the California Franchise Tax Board or any other information requested by the collector.
(7) For the purposes of this article, "gross receipts" shall mean any transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for marijuana whatsoever, including, but not limited to, membership dues, reimbursements provided by members, regardless of form, or the total amount of cash or in-kind contributions, including all operating costs related to the growth, cultivation or provision of marijuana or any t ransaction related thereto. "Gross receipts" shall also include without limitation anything else of value obtained by a collective/cooperative. The term "gross receipts" shall also include the total amount of the sale price of all sales, the total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, merchandise, for which a charge is made or credit allowed, including all refunds, cash credits and properties of any amount or nature, any amount for which credit is allowed by the seller to City of Santa Ana
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the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included. "Gross receipts" shall also include the amount of any federal, manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge. "Gross receipts" shall not include the amount of any federal tax imposed on or with respect to retail sales whether or not the amount of such tax is stated as a separate charge. "Gross receipts" shall not include the amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge, or any California state, city or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale. "Gross receipts" shall be calculated without any deduction on account of any of the following:
(i) The cost of tangible property sold or bartered;
(ii) The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; or
(iii) The cost of transportation of the marijuana, or other property or product. (b) Business license tax rates for marijuana collectives/cooperatives. (1) Every collective/cooperative, excepting a qualified "nonprofit organization," whether it is organized or conducted as a "not for profit" business, a "nonprofit" business, or a "for -profit" business, shall pay a separate business license tax at a rate of up to ten (10) percent of the gross receipts generated or otherwise received for each branch establishment or separate property location of the business. The gross receipts tax shall be initially set at a rate of five (5) percent. The maximum tax rate shall not exceed ten (10) percent of gross receipts. This tax shall not be adjusted for inflation pursuant to section 21-121.
(2) Notwithstanding the maximum tax rate of ten (10) percent of gross receipts imposed under subsection (b)(1), the city council may in its discretion at any time by ordinance implement a lower gross receipts tax rate for all marijuana collectives/cooperatives, as defined in such ordinance, subject to the maximum rate of ten (10) percent of gross receipts. The city council may by ordinance increase any such gross receipts tax rate from time to time, not to exceed the maximum gross receipts tax rate established under subsection (b)(1).
(3) Effective January 1, 2018, the gross receipts tax initially set at a rate of five (5) percent pursuant to subsection (b)(1), shall be increased to a rate of six (6) percent. The maximum tax rate shall not exceed ten (10) percent of gross receipts. This tax rate shall not be adjusted for inflation pursuant to section 21-121.
(4) Effective January 1, 2023, the gross receipts tax is set at a rate of six (6) percent pursuant to subsection (b)(3), shall be decreased to a rate of five (5) percent. The maximum tax rate shall not exceed ten (10) percent of gross receipts. This tax rate shall not be adjusted for inflation pursuant to section 21 -121. (5) As part of the gross receipts tax imposed by this article, each collective/cooperative shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each separate branch location or separate property location of the business.
(c) Modification, repeal or amendment. The city council may repeal the ordinance codified in this article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The city council may likewise by ordinance adopt and add additional provisions to any other City of Santa Ana
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article of this chapter and relate them to this article, or amend any existing provisions of any article of this chapter as they may already relate to this article in any manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the city council repeals said ordinance or any provision of this article, it may subsequently reenact it without voter approval, as long as the reenacted ordinance or section does not result in an increase in the tax or taxes imposed herein. (d) Administration—Rules, regulations, and guidelines; interpretation/clarification. In order to aid in the city's collection of taxes due under this article and to ensure that all marijuana collectives/cooperatives are taxed consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules, regulations, and guidelines, to implement and administer this article including, but not limited to, rules, regulations, and guidelines harmonizing other provisions of this chapter with the provisions of this article in any manner not inconsistent with the intent of this article and which does not result in an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this article.
(e) Occasional transactions—Exemptions.
(1) The provisions of this article shall not apply to persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of marijuana collective/cooperative business at the request of a specific patient, client or customer, provided that such person does not come into the city for the purpose of transacting business on more than five (5) days during any calendar year.
(2) For any person not having a fixed place of business within the city who comes into the city for the purpose of transacting collective/cooperative activities, the business tax payable by such person may be apportioned by the collector in accordance with this chapter. (f) Reporting and remittance. Beginning as set forth in subsection (k) below, and monthly thereafter, each marijuana collective/cooperative (except qualified nonprofit organizations exempt from taxes measured by income or gross receipts) required to pay a tax based on gross receipts under this article, shall report to the city any gross receipts received during the preceding monthly reporting period and shall likewise remit to the city the taxes due and owing during said period. For purposes of this section, month shall mean calendar month, and taxes shall begin to accrue on the date that a person or entity first receives a business license or other permit to operate as a collective/cooperative.
The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required annually for each separate branch location or separate property location of the business in accordance subsection (b)(3), shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and expiring on the 31st day of March of the following year. In the case of a new collective/cooperative the minimum basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every new licensee shall pay in advance an amount equal to one-quarter (¼) of the annual minimum basic rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is issued.
(g) Delinquent date—Penalty. Any individual or entity who fails to pay the taxes required by this article when due shall be subject to penalties and interest as set forth in accordance with this chapter. The collector is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
(h) Payment of tax does not authorize unlawful business.
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(1) The payment of a business tax required by this article, and its acceptance by the city, shall not entitle any person to carry on any collective/cooperative unless the person has complied with all of the requirements of this Code and all other applicable laws, nor to carry on any collective/cooperative in any building or on any premises in the event that such building or premises are situated in a zone or locality in which the conduct of such collective/cooperative is in violation of any law. (2) No tax paid under the provisions of this article shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any legal business in an illegal manner, or any business in violation of any ordinance of the city. Nothing in this article implies or authorizes that any activity connected with the distribution or possession of marijuana is legal unless otherwise authorized and allowed by California and federal law. Nothing in this section shall be applied or construed as authorizing the sale of marijuana.
(i) Business license tax certificate—Required. There are imposed upon all persons engaged in transacting and carrying on any collective/cooperative business activity in the city taxes in the amounts prescribed in this article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this chapter and having paid the taxes set forth in this article, and without complying with any and all applicable provisions contained in this chapter. The carrying on of any collective/cooperative without complying with all the provisions of this article shall constitute a separate violation of this chapter for each and every day that such collective/cooperative is so carried on. (j) Classification of business license assessment type—Term and renewal. The business license issued to marijuana collectives/cooperatives shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77.
(k) Operative date. Upon the approval by the majority of the voters of the city at the November 4, 2014 general election, the taxes imposed by this article shall become operative and shall be applied by the collector upon all marijuana collectives/cooperatives.
(l) Operative date of increased or decreased gross receipts tax rate. The gross receipts tax set initially at a rate of five (5) percent pursuant to subsection (b)(1) [(Ordinance No. NS-2864, Section 5, adopted 12-9-14)] and increased to a rate of six (6) percent effective January 1, 2018, pursuant to subsection (b)(3) [(Ordinance No.
NS-2930, Section 8, adopted 11-21-17)], shall be decreased to a rate of five (5) percent effective January 1, 2023, pursuant to subsection (b)(4) [( Ordinance No. NS-3026 , § 8, adopted 10-4-22)]. (m) Notwithstanding the tax rates imposed herein under subsection (l), the City Counci l may, in its discretion, at any time by resolution, implement any lower or higher tax rate it deems appropriate, not to exceed the maximum rate established by subsections (b)(2).
( Ord. No. NS-2864 , § 5, 12-9-14; Ord. No. NS-2930 , § 8, 11-21-17; Ord. No. NS-3026 , § 8, 10-4-22, eff. 1-1-23) Editor's note(s)—Sec. 21-127, subsection (l), effective January 1, 2023, is hereby adopted by reference and is subject to amendment from time to time by resolution.
Sec. 21-128. Effect of state and federal reference/authorization.
Unless specifically provided otherwise, any reference to a state or federal statute in this article or chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease. Only to the extent voter approval would otherwise be required or a tax decrease City of Santa Ana
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would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent.
To the extent that the city's authorization to collect or impose any tax imposed under this article is expanded or limited as a result of changes in state or federal law, no amendment or modification of this article shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this article . ( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-129. Violation deemed misdemeanor—Penalty.
Any person violating any of the provisions of this article or any regulation or rule passed in accordance herewith, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by the maximum penalties provided for in Penal Code Section 19. ( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-130. Severability.
Should any provision of this article, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this article or chapter or the application of this article or chapter to any other person or circumstance and, to that end, the provisions hereof are severable. ( Ord. No. NS-2864, § 5, 12-9-14 )
Sec. 21-131. Transferability of collective/cooperative business license.
Section 21-67 notwithstanding, business licenses issued to collective/cooperatives pursuant to this article shall be transferable or assignable upon presentation of a valid regulatory safety permit issued in the name of the transferee or assignee.
( Ord. No. NS-2918, § 12, 7-5-17 )
Sec. 21-131.1. Sale, assignment, transfer, or termination of business; marijuana collective/cooperative (medicinal cannabis retail business) owner/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability.
(a) Owner/Operator's duty to notify.
i. Termination of business. A medicinal marijuana collective/cooperative owner/operator (also referred to herein as medicinal cannabis retail business) who is terminating their business shall notify the collector in writing of such termination at least ninety (90) days in advance of the date of termination of business. If the decision to terminate business is made within less than a ninety (90) day period prior to the date of termination, the owner/operator shall then immediately notify the collector of said decision and the date of termination of business.
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ii. Sale, assignment, or transfer of business. A medicinal cannabis retail business owner/operator who is selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90) days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise transfer their business was made within less than a ninety (90) day period prior to the sale, assignment, or transfer, in which case the transferor shall then immediately notify the successor of the successor's responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale, assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing to the collector that the successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities. (b) Remitting and reporting requirements. Each medicinal cannabis retail business owner/operator upon the sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the month following the sale, assignment, transfer, or termination of business, file a final return to the collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of business license tax collected for the reporting period, remittances made, if any, and the balance of the business license tax due, if any, shall be remitted to the collector. (c) Closeout audit. After filing the final return and remitting the balance due, the medicinal cannabis retail business owner/operator shall make its records of account available for a closeout audit by the collector, his or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is found to have satisfied all business license tax liabilities, the collector shall issue to such business owner/operator a certificate of nonliability.
If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their bus iness is deficient in either their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner's/operator's remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability. (d) Successor's duty to notify. If a medicinal cannabis retail business owner/operator decides to sell, assign, or otherwise transfer their business, their successor shall notify the collector of the date of the sale, assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It shall be the duty of the successor to obtain written verification fr om the collector's office that the transferor does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks written verification from the collector's office, if the collector notifies the successor that th e transferor has or is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount equal to such outstanding business license tax liabilities until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor.
If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a City of Santa Ana
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certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become jointly and severally liable along with the transferor for the payment of the full amount of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a medicinal cannabis retail business operator/owner who is terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after conducting an audit therefore, as he or she may deem necessary, shall issue the certificate if the owner's/operator's, transferor's, or successor's business license tax liabilities have been satisfied. If any business license tax liabilities remain outstanding, or if additional business license tax liabilities have accrued subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or successor of the applicable amount which must be fully paid as a condition of issuing their respective certificate of nonliability. Where a transferor's business license tax liabilities have been partially or w holly paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their successor's action of withholding and depositing amounts with the collector pursuant to subsection (d), no certificate of nonliability shall be issued to the transferor without the prior written consent of their successor.
(Ord. No. NS-2972 , § 5, 9-3-19)
Sec. 21-131.2. Vertical and horizontal integration of marijuana collective/cooperative licensees (medicinal cannabis retail businesses)—Defined.
The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as long as they share at least eighty (80) per cent underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods.
Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least eighty (80) per cent underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term "cannabis businesses" shall include marijuana collectives/cooperatives as defined in section 18- 611 and commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. (Ord. No. NS-2972 , § 6, 9-3-19)
ARTICLE XIII. COMMERCIAL CANNABIS BUSINESSES
Sec. 21-132. Purpose.
This article is required for the purpose of fixing the rate of taxation for commercial cannabis businesses including delivery, distribution, manufacturing, cultivation, testing and retail sales of cannabis and related products. This article does not apply to medical marijuana collectives/cooperatives (also referred to as medicinal cannabis retail businesses) which are subject to a business license tax under article XII of this chapter. The taxes required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and are not regulatory permit fees.
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(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-133. Commercial cannabis businesses—Annual business license tax assessment.
Every person engaged in a "commercial cannabis business" or "commercial cannabis activity" shall pay an annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana cooperatives/collectives (also referred to as medicinal commercial cannabis medicinal retail businesses) which are vertically and/or horizontally integrated with commercial cannabis businesses, to medical marijuana cooperatives/collectives which are governed by Article XII of this Chapter, or to personal cultivation as defined in section 40-101(b) of this Code.
(a) For each branch establishment or separate property location of a commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location, the higher of the two (2) following tax rates shall be due to the Cit y for each monthly reporting period:
(1) Up to ten (10) percent of each dollar of gross receipts received or generated for each monthly reporting period.
(2) Up to thirty-five dollars ($35.00) per square foot (annual tax rate) prorated monthly to one - twelfth ( 1/12) of the annual tax rate amount.
(b) These tax rates shall not be adjusted for inflation pursuant to section 21 -121 of this Chapter. (c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rates established by subsection (a).
(d) As of the operative date of this Article, the business license gross receipts tax rates and square footage tax rates application to specific commercial cannabis business activities have been established by city ordinance [(Ordinance No. NS-2962, Section 2 (Exhibit A-1), adopted 11-6-18; and Ordinance No. NS- 2972, Section 7, adopted 9-3-19)] and by the following resolutions as referenced herein below in subsections (s), (t), and (u).
Commercial Cannabis Business Activity Gross Receipts
Tax Rate
Gross Square
Footage Tax Rate
Adult-use Cannabis Retail Business (including Delivery) (effective beginning December 21, 2018 through December 31, 2022)
8% $ 25.00
Adult-use Cannabis Retail Business (including Delivery, but not including Consumption Lounge and Temporary
Consumption and/or Special Events) (effective beginning January 1, 2023)
7% $ 25.00
Adult-use Cannabis Retail Business (including Delivery and Consumption Lounge)
(effective beginning January 1, 2023)
7% $ 25.00
Adult-use Cannabis Retail Business (Temporary
Consumption and/or Special Events)
(effective beginning January 1, 2023)
7% $ 0.00
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Qualified Social Equity Adult-use Cannabis Retail Business (including Delivery and Consumption Lounge)
(effective beginning January 1, 2023)
5% $ 25.00
Qualified Social Equity Adult-use Cannabis Retail Business (Temporary Consumption and/or Special Events)
(effective beginning January 1, 2023)
5% $ 0.00
Cultivation
(effective December 21, 2018 through December 31, 2022) 6% $ 10.00
Cultivation
(effective beginning January 1, 2023)
1% $ 7.00
Distribution
(effective December 21, 2018 through December 31, 2022) 6% $ 4.00
Distribution
(effective beginning January 1, 2023)
1% $ 3.00
Manufacturing
(effective December 21, 2018 through December 31, 2022) 6% $ 10.00
Manufacturing
(effective beginning January 1, 2023)
1% $ 3.00
Shared Manufacturing
(effective beginning January 1, 2023)
1% $ 0.00
Microbusinesses
(Tax rates apply proportionally to microbusiness' activities corresponding to Adult-use Retail [Adult-use Retail
(including
Delivery)]/Cultivation/Manufacturing/Distribution)
(effective October 4, 2019 through December 31, 2022)
Adult-use Retail
8%
Cultivation,
Distribution &
Manufacturing
6%
Adult-use Retail
$ 25.00
Cultivation &
Manufacturing
$ 10.00
Distribution
$ 4.00
Microbusinesses
(Tax rates apply proportionally to microbusiness' activities corresponding to Adult-use Retail [Adult-use Retail
(including Delivery, but not including Consumption Lounge and Temporary Consumption and/or Special
Events)]/Cultivation/Manufacturing/Distribution)
(effective beginning January 1, 2023)
Adult-use Retail
7%
Cultivation,
Distribution &
Manufacturing
1%
Adult-use Retail
$ 25.00
Cultivation
$ 7.00
Distribution &
Manufacturing
$ 3.00
Testing Facility or Testing Laboratory
(effective December 21, 2018 through June 30, 2019)
5% $ 1.50
Testing Facility or Testing Laboratory
(effective July 1, 2019)
1% $ 1.50
With respect to commercial cannabis businesses not having a fixed place of business within the city but conducting regular, non-incidental commercial cannabis business activities within the city, such businesses shall be subject to the gross receipts tax rate(s) pursuant to this Article based on the category/categories of commercial cannabis activity conducted. However, such out- of-town commercial cannabis businesses shall not be subject to any gross square footage ta x rate(s).
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(e) As part of the annual gross receipts/square footage tax(es) imposed by this Article, each commercial cannabis business located within the city shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location. Commercial cannabis businesses having no fixed place of business within the city shall be exempted from this requirement. Provided, however, as follows:
(1) that commercial cannabis microbusinesses shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, but not for each separate type of commercial cannabis business conducted at the same location; and (2) that City licensed commercial cannabis retail businesses which are also licensed by the City for adult-use cannabis retail business (temporary consumption and/or special events), or socially equitable adult-use cannabis retail business (temporary consumption and/or special events) shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, but not for each separate type of commercial cannabis retail busines s conducted at the same location; and
(3) that whenever in the discretion of the Collector, for the purposes of more fully achieving the intent of this Article, or to more efficiently and equitably administer the provisions of this Article, additional administrative commercial cannabis business licenses are required to allow the for the recognition of fee-exempt activities, or to allow for the separate accounting and apportionment of one (1) or more taxable endeavors relating to sub-activities incorporated within a consolidated commercial cannabis tax activity under subsection (d), then the Collector shall require that the affected commercial cannabis business obtain such administrative license(s), and in the case of taxable activities, separately report and pay the applicable gross receipts tax(es) due under the consolidated commercial cannabis tax activity to which said administrative license(s) relate. In such case, the minimum basic rate of two thousand dollars ($2,000.00) annually per license, shall not be applied, however, such administrative license(s) are subject to all other requirements under this Chapter, including all applicable licensing charges and service fees. (f) In the event the City should in the future permit additional categories of comm ercial cannabis business activity, as may from time to time be licensed by the State of California, such categories of commercial cannabis activities shall be subject to the same maximum tax rates as imposed herein. The City may by ordinance of the City Council initially set the required gross receipts/gross square footage tax rates based on category of cannabis business activity at lesser rates as may be deemed appropriate by the City Council.
(g) For purposes of this Article, a commercial cannabis business is not considered to be a business or person having a "specified exemption" or "specified exclusion" from business license taxation as set forth in sections 21-48 and 21-49 of this Chapter.
(h) For purposes of this Article any person claiming an exemption from the gross receipts tax rate component of the combined gross receipts/square footage tax imposed under this Article on the basis of a claim of being a qualified "nonprofit organization" shall have the burden of substantiating their claim to the same extent and in the same manner as a marijuana collective/cooperative in accordance with section 21-127(a)(6) of this Chapter.
(i) Cannabis businesses shall not pass the taxes imposed by this Article through to an adult -use cannabis retail business customer or commercial cannabis business customer in any fashion except as part of the basic product sales and/or service price.
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(j) Definitions. For purposes of this Article, the following terms have the following meanings:
(1) "Adult-Use cannabis retail business" as defined in section 40-2(4) of this Code. (2) "Commercial Cannabis Activity" as defined in section 40-2(9) of this Code. (3) "Commercial cannabis business" as defined in section 40-2(10) of this Code excluding medical marijuana collectives/cooperatives also referred to as medicinal cannabis retail sales. (4) "Commercial cannabis adult-use retail business" as defined in section 40-2(39.4). (5) "Consumption Lounge" as defined in section 40-2(39.1) of this Code. (6) "Cultivation" as defined in section 40-2(11) of this Code. (7) "Delivery" as defined in section 40-2(13) of this Code. (8) "Distribution" as defined in section 40-2(16) of this Code. (9) "Gross receipts" - section 21-3 of this Chapter notwithstanding, "gross receipts" for the purposes of this Article shall mean:
(A) Transfer of title or possession, exchange or barter, conditional or otherwise, in any manne r or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for cannabis, including, but not limited to, membership dues, reimbursements provided by members, regardless of form, or the total amount o f cash or in-kind contributions, including all operating costs related to the growth, cultivation, manufacturing, distribution, testing, or provision of cannabis or any transaction related thereto;
(B) Anything else of value obtained by an a cannabis business; (C) The total amount of the sale price of all sales and services; (D) The total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, or merchandise (whether at wholesale or retail), for which a charge is made or credit allowed, including all refunds, cash credits and properties of any amount or nature; (E) Any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included;
(F) The amount of any federal manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof; (G) The amount of any California state cannabis excise tax or state cannabis cultivation tax included in the price of the product;
(H) "Gross receipts" shall not include the following:
i. The amount of any federal tax imposed on or with respect to retail or wholesale sales or the sale of services whether imposed upon the cannabis business or the consumer whenever the amount of federal tax is authorized by law to be stated and passed through to customers as a separate charge.
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ii. Any California state, county, or city sales or use tax, including any add-on, district, or transaction and use tax, required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale; or
iii. The amount of the sale price of business personal property (all property owned or leased by a cannabis business operator used in the operation cannabis business activities, including, but not limited to: furniture, fixtures, and business equipment); real property, including land, buildings and other improvements.
iv. The amount of equity contributions, investments, and/or loan proceeds to cannabis business' operation, and/or proceeds from the sale or transfer of cannabis business' retail or commercial cannabis business. v. The amount of interparty sales and/or transfers of goods within a single vertically and/or horizontally integrated cannabis business, where the sales or transfers goods are between two (2) or more commercial cannabis business licensees (excluding testing facilities or testing laboratories), or one (1) or more said commercial cannabis business licensee(s) and one (1) or more medicinal cannabis retail business licensee(s), as set forth in accordance with section 21 - 131.2 and/or section 21-142.
(I) "Gross receipts" shall be calculated without any deduction on account of any of the following:
i. The cost of tangible or intangible property sold or bartered; ii. The cost of materials or products used, labor or service cost, interest paid, losses, or other expense;
iii. The cost of transportation of cannabis, or other property or product; iv. The amount of any federal or state income or franchise taxes; and v. Any other business costs or expenses, unless otherwise specifically exempted. (10) "Gross square foot" or "gross square footage" for the purposes of this Article shall mean:
(A) In the case of commercial cannabis businesses licensed by the state to engage in an adult - use cannabis retail business, the gross number of square feet comprising the adult -use cannabis retail property location as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater of any square footage indicated, whether such adult-use cannabis retail business is part of an on-site vertically or horizontally integrated cannabis business or not.
(B) In the case of commercial cannabis businesses licensed by the state to engage in cultivation, the aggregate number of square feet comprising all areas of the premises under "canopy," whether such sum is greater or lesser than the gross square footage as stated in the "approved building set" or "approved certificate of occupancy," and whether such commercial cannabis cultivation business is part of an on- site vertically integrated cannabis business or not.
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"Canopy" shall mean the designated area(s) of a premises that will contain mature plants at any point in time. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at an y point in time, including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which includes interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, or garden plots; and if mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation.
Canopy shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may b e deemed necessary in the discretion of the collector. Whenever an independent canopy measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's canopy is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then a canopy measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council.
(C) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and that are not occupying the same premises with another cannabis business, the gross number of square feet as confirmed by the corresponding "approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater of any square footage indicated.
(D) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and occupying the same premises with another cannabi s business, the gross number of square feet allocated by the commercial cannabis business owner/operator respectively for either distribution use or for manufacturing use, whether the combined sum of all uses is less than, equal to, or greater than the gro ss square footage as stated in the "approved building set" or "approved certificate of occupancy." The number of square feet allocated ("Allocated Square Footage") shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be deemed necessary in the discretion of the collector. Whenever an independent allocated square footage measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee's allocated square footage is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then an Allocated Square Footage measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (E) In the case of commercial cannabis businesses licensed by the state to engage in testing facilities or testing laboratory businesses, the gross number of square feet comprising such commercial cannabis business' property location as confirmed by the corresponding City of Santa Ana
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"approved building set" or "approved certificate of occupancy" on file with the City of Santa Ana Planning and Building Agency, whichever is the greater. (11) "Manufacturing" as defined in section 40-2(22) of this Code. (12) "Microbusiness" as defined in section 40-2(24) of this Code. (13) "Consumption Lounge" as defined in section 40-2(39.1) of this Code. (14) "Qualified Social Equity Adult-use Cannabis Retail Business" as set out in section 40-16 of this Code. To include: "Socially Equitable Adult-use Cannabis Retail Business (including Delivery and Consumption Lounges)," and "Socially Equitable Adult-use Cannabis Retail Business Temporary Consumption and/or Special Events)."
(15) "Retail business" as defined in section 40-2(39) of this Code. (16) "Shared manufacturing" as defined in section 40-2(22.5) of this Code. (17) "Temporary Consumption Event" and "Temporary Consumption Festival" as defined in section 40-2(39.2 and 39.3) of this Code.
(18) "Testing Facility" or "Testing Laboratory" as defined in section 40- 2(43) of this Code. (19) "Wholesale" as defined in section 40-2(44) of this Code. (k) Modification, repeal or amendment. The City Council may repeal the ordinance codified in this Article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The City Council may likewise by ordinance adopt and add additional provisions to any other Article of this Chapter and relate them to this Article, or amend any existing provisions of any Article of this Chapter as they may already relate to this Article in any manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the City Council repeals said ordinance or any provision of this Article, it may subsequently reenact it without voter approval, as long as the reenacted ordinance or section does not result in an increase in the tax or taxes imposed herein.
(l) Administration—Rules, regulations and guidelines. In order to aid in the city's collection of taxes due under this Article and to ensure that all commercial cannabis businesses are taxed consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules, regulations, and guidelines, to implement and administer this Article including, but not limited to, rules, regulations, and guidelines harmonizing other provisions of this Chapter with the provisions of this Article in any manner not inconsistent with the intent of this Article and which does not result in an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Article.
(m) Occasional transactions—Exemptions.
(1) The provisions of this Article shall not apply to persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of commercial cannabis business at the request of a specific client or customer, incidental to a commercial cannabis business principally established elsewhere, provided that such person does not come into the city for the purpose of transacting such business on more than three (3) days during any calendar year.
(2) For any person not having a fixed place of business within the city who comes into the city for the purpose of transacting commercial cannabis business activities, the business license tax(es) payable by such person may be apportioned by the collector in accordance with this Chapter.
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(n) Reporting and remittance.
(1) Beginning as set forth in subsection (r) below, and monthly thereafter, each commercial cannabis business required to pay a tax or taxes based on gross receipts under this Article (except qualified nonprofit organizations exempt from taxes measured by income or gross receipts), shall report to the city any gross receipts received during the preceding monthly reporting period. In addition, each cannabis business (including qualified nonprofit organizations) required to pay a tax or taxes based on square footage shall report to the city the gross square footage of the cannabis business' property location. Every cannabis business shall then compute the business license taxes at both the gross receipts rate and the gross square footage rate - prorated monthly to one-twelfth ( 1/12) of the annual tax rate amount - and shall then remit to the city the amount of the higher of the two (2) tax calculations due and owing during said period in accordance with section 21-133, subsection (d). In the case of a qualified nonprofit organization only the gross square footage computation shall be made and the amount of suc h calculation shall represent the amount due and owing during said period. All reporting and remitting made shall be done in accordance with instructions from the collector and shall be made using forms provided or approved by the collector.
(2) For purposes of this section, month shall mean calendar month and shall include any fraction of a month. Taxes shall begin to accrue on the date that a person or entity first receives a business license or other city permit to operate as a commercial cannabis busin ess or upon the operative date of this Article should a person or entity already possess a commercial cannabis business license or other city permit to operate as a commercial cannabis business. (3) The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required annually for each separate branch location or separate property location of the business in accordance with this section, shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and expiring on the 31st day of March of the following year. In the case of a new commercial cannabis business the minimum basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every new licensee shall pay in advance an amount equal to one-quarter (¼) of the annual minimum basic rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is issued.
(o) Delinquent date—Penalty. Any individual or entity who fails to pay the taxes required by this Article when due shall be subject to penalties and interest as set forth in accordance with this Chapter. The collector is not required to send a delinquency or other notice or bill to any person subject to the provisions of this Article and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this Article.
(p) Business license tax certificate/receipt—Required. There are imposed upon all persons engaged in transacting and carrying on any commercial cannabis business activity in the city taxes in the amounts prescribed in this Article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this Chapter and having paid the taxes set forth in this Article, and without complying with any and all applicable provisions contained in this Chapter. The carrying on of any commercial cannabis business activity without complying with all the provisions of this Article shall constitute a separate violation of this Chapter for each and every day that such commercial cannabis activity is so carried on.
(q) Classification of business license assessment type—Term and renewal. The business license issued to commercial cannabis businesses shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) of this Chapter and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77.
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(r) Operative date. Upon the approval by the majority of the voters of the city at the November 6, 2018 general election, the taxes imposed by this Article shall become operative and shall be applied by the collector upon all commercial cannabis businesses.
(s) Operative date of decreased gross receipts tax rate (Testing Facilities or Testing Laboratories). The gross receipts tax set initially at a rate of five (5) percent for testing facilities or testing laboratories pursuant to subsection (d) above shall be decreased to a rate of one (1) percent by resolution of the City Council [Santa Ana City Council Resolution No, 2019-068] as hereinabove provided for in accordance with subsection (c), which reduced rate, under the terms of said City Council resolution, shall become retroactively effective July 1, 2019.
(t) Operative date of decreased gross receipts tax rate (Cultivation, Manufacturing, and Distribution, Adult-use Cannabis Retail Business (including Delivery and Consumption Lounges), Adult -use Cannabis Retail Business (Temporary Consumption and/or Special Events). The gross receipts tax set initially at a rate of six (6) percent for cultivation, manufacturing, and distribution pursuant to subsection (d) above shall be decreased to a rate of one (1) percent, and the gross receipts tax rate set initially at a rate of eight (8) for all adult-use cannabis retail business (including delivery) activities pursuant to subsection (d) above shall be decreased to seven (7) percent to include the sub- activity of consumption lounges, and the ancillary adult-use cannabis retail business (temporary consumption and/or special events) activity; the parallel activities of social equity adult-use cannabis retail business (including delivery and consumption lounge), and the ancillary social equity adult-use cannabis retail business (temporary consumption and/or special events) activity are set at a reduced five (5) percent, by resolution of the City Council [Santa Ana City Council Resolution No, 2022-078] as hereinabove provided for in accordance with subsection (c), which reduced rates, under the terms of said City Council re solution, shall become effective January 1, 2023.
(u) Operative date of decreased square footage tax rate (Cultivation, Manufacturing, Distribution, Adult - use Cannabis Retail Business (Temporary Consumption and/or Special Events), Qualified Social Equity Adult-use Cannabis Retail Business (Temporary Consumption and/or Special Events). The square footage tax set initially at a rate of ten dollars ($10.00) per square foot for cultivation and manufacturing, and four dollars ($4.00) per square foot for distribution pursuant to subsection (d) above shall be decreased to a rate of seven dollars ($7.00) per square foot for cultivation, three dollars ($3.00) per square foot for manufacturing, three dollars ($3.00) per square foot for distribution; and to a rate of zero dollars ($0.00) per square foot for shared manufacturing, adult -use cannabis retail business (temporary consumption and/or special events), and qualified social equity adult -use cannabis retail business (temporary consumption and/or special events) by resolution of the City Council [Santa Ana City Council Resolution No, 2022-078] as hereinabove provided for in accordance with subsection (c), which reduced rates, under the terms of said City Council resolution, shall become effective January 1, 2023.
(v) Notwithstanding the tax rates imposed herein under subsections (d), (s), (t), and (u), the City Council may, in its discretion, at any time solely by resolution, implement any lower or higher tax rate it deems appropriate, not to exceed the maximum rates established by subsection (a). (Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18; Ord. No. NS-2972 , § 7, 9-3-19; Ord. No. NS-2930 , § 8, 11-21-17; Ord.
No. NS-3026 , § 9, 10-4-22, eff. 1-1-23)
Editor's note(s)—Sec. 21-133, subsections (s)—(u), effective January 1, 2023, are hereby adopted by reference and are subject to amendment from time to time by resolution.
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Sec. 21-134. Payment of tax does not authorize unlawful business. (a) The payment of a business tax required by this article, and its acceptance by the city, shall not entitle any person to carry on any commercial cannabis business unless the person has complied with all of the requirements of this code and all other applicable laws, nor to carry on any commercial cannabis business in any building or on any premises in the event that such building or premises are situated in a zone or locality in which the conduct of such commercial cannabis business is in violation of any law. (b) No tax paid under the provisions of this article shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any legal business in an illegal manner, or any business in violation of any ordinance of the city, state or federal law.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-135. Single property location; multiple state licenses; separate city business licenses.
Sections 21-7, 21-8, and 21-9 of this chapter notwithstanding, separate city business licenses, issuable to commercial cannabis businesses pursuant to this article, shall be required for each separate type of commercial cannabis business activity transacted and carried on at a single city property location for which a commercial cannabis business may seek licensure by the state, or for which a state license has been approved or issued.
Provided, however, that commercial cannabis business activity transacted and carried on at a single city property location for which a commercial cannabis business may seek licensure by the state as a microbusiness, or for which a state license has been approved or issued as a microbusiness, shall in such case be required to obtain a separate city business license business for each of the commercial cannabis activities transacted and carried on. (Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18; Ord. No. NS-2930 , § 8, 11-21-17; Ord. No. NS-3026 , § 10, 10-4-22, eff. 1-1-23)
Sec. 21-136. Security for collection of commercial cannabis business' business license tax; requirement; extension of time; application; failure to post or restore—Effect; jeopardy determination; refund or release; deposit adjustment—Effect. (a) Requirement for Security Deposit. To ensure compliance with business license tax payment requirements established pursuant to this Article, the collector shall require, beginning on the operative date of this Article, that each commercial cannabis business owner/operator, including, but not limited to, each purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) of a commercial cannabis business subject to the business licensing requirements of this Article, deposit one hundred and twenty (120) days following the last day of the month in which business was first commenced such security (per individual business license) in a form acceptable to the collector in an amount not larger than the commercial cannabis business owner's/operator's estimated average monthly business license tax liability as determined by the collector or the sum of ten thousand dollars ($10,000.00), whichever is least. Provided, however, in the event that two or more commercial cannabis business licens ees sharing at least eighty (80%) per cent underlying common ownership, regardless of form of business structure, are engaged in an integrated cannabis business (whether vertically or horizontally integrated) as defined in section 21-142, then a single consolidated deposit shall be made equal to the deposit amount owing for the integrated commercial cannabis activity having the highest individual business license tax liability. Each new city commercial cannabis business licensee shall upon obtaining their C ity business license(s) deposit a similar security as applicable per business license within thirty (30) days after commencing business.
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(b) Extension of Time. If, upon request and in the judgment of the collector, a determination of any commercial cannabis business' estimated average monthly tax liability for purposes of setting the amount of their required security deposit requires an extension of time beyond one hundred and twenty (120) days following the last day of the month in which business was first commenced, then the collector may issue a written notification to such commercial cannabis business granting such extension. (c) Application of Security Deposit. To recover past-due business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) remittable by the depositor, the collector may apply the security deposited with the collector. At least fifteen (15) days prior to the application of a security deposit, the collector shall serve upon the depositing commercial cannabis business owner/operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the deposit ing commercial cannabis business owner/operator at their place of business or other mailing address of record. Any portion of the security remaining after satisfaction of outstanding business license tax liabilities and any expenses related to third-party administrative charges or fees relating to the liquidation and application of non -cash deposits may be retained by the collector for security or in the case of a closeout audit may be paid over by the collector to the depositing owner/operator. Except in the case of a closeout audit pursuant to section 21- 141, in the event the collector applies the security deposit, or any portion of said deposit, as an offset against remittable business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non-cash deposits, the commercial cannabis business owner/operator shall be required within thirty (30) days of the collector's written demand therefor, to re- deposit the full amount of the required security. In such event the amount of the required security shall be adjusted by the collector based on the average of the commercial cannabis business' actual monthly gross receipts tax returns and/or remittances as measured over the last three (3) valid monthly returns and/or remittances received by the collector or the sum of ten thousand dollars ($10,000), whichever is least, less any amount remaining on deposit with the collector. Service of demand shall be in the same manner as stated hereinabove for service of notice.
(d) Failure to Post or Restore Security Deposit—Effect. Failure by a commercial cannabis business licensee to initially post or restore a security deposit when required by the collector pursuant to this section shall be cause for suspension and/or revocation of such commercial cannabis business' existing Santa Ana Business License as set out in section 21-86 of this Chapter. Similarly, in the case of a vertically and/or horizontally integrated cannabis business, the business license(s) of the integrated commercial cannabis business(es) shall be likewise subject to suspension and/or revocation. (e) Jeopardy Determination. If the collector believes that the collection of any business license tax imposed by this Article will be jeopardized, in whole or in part, by delay in the commercial cannabis business owner's/operator's timely remittance of the business license tax, the collector shall serve notice upon the person determined to be liable therefor of their determination of jeopardy and of the business license tax required to be paid to the City, and demand immediate payment thereof, together with any interest and penalty determined to be due. The collector may consider all facts and circumstances relevant to determining whether the collection of any business license tax will be jeopardized by delay, including, but not limited to, indications that the person liable for the business license tax intends to take or is taking action to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell, exchange, transfer, assign, or otherwise dispose of such person's business, personal or business income, or business property. The collector also may consider whether the person liable for the business license tax is or has been uncooperative or unresponsive in connection with any investigation, examination, audit, deficiency determination, assessment, or collection action or procedure undertaken by the collector. A jeopardy determination of business license tax, penalty, or interest, is immediately due and payable upon the service of the notice of jeopardy determination on the person determined to be liable therefor. Service of notice of a jeopardy determination shall be made by: (1) sending the notice initially by electronic mail to the depositing commercial cannabis business owner's/operator's electronic mail address of record as set out in the City of Santa Ana
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depositing commercial cannabis business owner's/operator's application for business license or most rec ent business license renewal affidavit or business license amendment statement; (2) placing the notice for delivery with an express carrier for next business day delivery, all delivery and tracking charges prepaid, addressed to the depositing commercial cannabis business owner/operator at their place of business; and/or (3) conspicuously posting said notice upon the premises of the commercial cannabis business. Service of notice of a jeopardy determination shall be deemed completed upon tracking confirmatio n of the delivery of said notice to the commercial cannabis business owner's/operator's place of business or on the date of the actual posting of said notice on the premises of the depositing commercial cannabis business owner/operator. Upon the business day next following the completion of service of notice of a jeopardy determination upon a depositing commercial cannabis business, the collector in his or her discretion may proceed with the application of the security deposit upon actual or estimated business license taxes due, including penalties, interest, charges, or service fees. (f) Refund or release of security deposit. In the case of the sale, assignment, or other transfer or termination of business by the depositor pursuant to section 21-141, the collector shall refund or release the security deposit amount required pursuant to this section, or in the event of prior application of the security deposit pursuant to subsection (c), any unapplied amount of such security deposit, upon depositor's present ation to the collector of a certificate of nonliability stating the nonliability of the depositor for payment of business license taxes as hereunder provided in section 21-141(f). (g) Deposit adjustment—Effect. In the case of a determination by the collector that the amount of a previously posted commercial cannabis business owner's/operator's security deposit exceeds the requirements of this section, then the collector shall adjust the amount of the required security deposit. If the prior security deposit was posted on a cash basis, then the collector shall refund the excess amount. If the prior security deposit was posted on a non-cash basis, then an adjusted cash basis security deposit or adjusted non- cash basis security deposit in a form acceptable to the collector may be posted in exchange for the release of the prior security deposit.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-137. Effect of state and federal reference/authorization.
Unless specifically provided otherwise, any reference to a state or federal statute in this article or chapter (whether by direct citation or by definitional reference to another chapter of this code) shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease. Only to the extent voter approval would otherwise be required or a tax decrease would r esult, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent.
To the extent that the city's authorization to collect or impose any tax imposed under this article is expanded or limited as a result of changes in state or federal law, no amendment or modification of this art icle shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this article. (Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
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Sec. 21-138. Violation deemed misdemeanor—Penalty.
Any person violating any of the provisions of this article or any regulation or rule passed in accordance herewith, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by the maximum penalties provided for in California Penal Code Section 19. The penalties under this section are in addition to any other penalties available pursuant to this code. (Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-139. Transferability of commercial cannabis business license.
Section 21-67 of this chapter notwithstanding, business licenses issued to commercial cannabis businesses pursuant to this article shall be transferable or assignable upon presentation of a valid regulatory safety permit issued in the name of the transferee or assignee.
(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-140. Severability.
Should any provision of this article, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this article or chapter or the application of this article or chapter to any other person or circumstance and, to that end, the provisions hereof are severable. (Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18)
Sec. 21-141. Sale, assignment, transfer, or termination of business commercial cannabis business owner's/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability.
(a) Owner/Operator's duty to notify.
i. Termination of business. A commercial cannabis business owner/operator who is terminating their business shall notify the collector in writing of such termination at least ninety (90) days in advance of the date of termination of business. If the decision to terminate business is made within less than a ninety (90) day period prior to the date of termination, the owner/operator shall then immediately notify the collector of said decision and the date of termination of business. ii. Sale, assignment, or transfer of business. A commercial cannabis business owner/operator who is selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90) days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise transfer their business was made within less than a ninety (90) day period prior to the sale, assignment, or transfer, in which case the transferor shall then immediately notify the successor of the successor's responsibility for unpaid business license taxes, including penal ties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale, assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing City of Santa Ana
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to the collector that the successor was notified of the requirements of this Article regarding their responsibility for unpaid business license tax liabilities. (b) Remitting and reporting requirements. Each commercial cannabis business owner/operator upon the sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the month following the sale, assignment, transfer, or termination of business, file a final return to the collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of business license tax collected for the reporting period, remittances made, if any, and the balance of the business license tax due, if any, shall be remitted to the collector. (c) Closeout audit. After filing the final return and remitting the balance due, the commercial cannabis business owner/operator shall make its records of account available for a closeout audit by the collector, his or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is found to have satisfied all business license tax liabilities, the collector shall issue to such business owner/operator a certificate of nonliability.
If, upon closeout audit, or by means of other information available to them, the collector determines that the owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner/operator's remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability. (d) Successor's duty to notify. If a commercial cannabis business owner/operator decides to sell, assign, or otherwise transfer their business, their successor shall notify the collector of the date of the sale, assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It shall be the duty of the successor to obtain written verification from the collector's office that the transferor does not have or is not liable for any outstanding business license taxes liabilities. After the succes sor seeks written verification from the collector's office, if the collector notifies the successor that the transferor has or is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount equal to such outstanding business license tax liabilities until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor.
If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment or other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the account of the transferor. (e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection (d) they shall become jointly and severally liable along with the transferor for the payment of the full amount of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections 21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied. (f) Certificate of nonliability. Upon application of a commercial cannabis business owner/operator who is terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after conducting an audit therefore, as he or she may deem necessary, shall issue the certificate of nonliability if City of Santa Ana
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the owner/operator's, transferor's, or successor's business license tax liabilities have been satisfied. If any business license tax liabilities remain outstanding, or if additional business license tax liabilities have accrued subsequent to the date of application, the collector shall give notice to the operator/owner, transferor, or successor of the applicable amount which must be fully paid as a condition of issuing their respective certificate of nonliability. Where a transferor's business license tax liabilities have been partially or wholly paid by their successor to the collector pursuant to subsection (e) or partially or wholly satisfied by their successor's action of withholding and depositing amounts with the collector pursuant to subsection (d), no certificate of nonliability shall be issued to the transferor without the prior written consent of their successor.
(Ord. No. NS-2972 , § 9, 9-3-19)
Sec. 21-142. Vertical and horizontal integration of commercial cannabis business licensees— Defined.
The terms vertical integration and horizontal integration as used in this Article shall have the following meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as long as they share at least eighty (80%) per cent underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods.
Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least eighty (80%) per cent underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term "cannabis businesses" shall include medicinal marijuana collectives/cooperatives as defined in section 18 -611 and commercial cannabis businesses as defined in section 40-2, but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. (Ord. No. NS-2972 , § 10, 9-3-19)
ARTICLE XIV. TAX HOLIDAY
Sec. 21-143. Development and administration of the tax holiday program.
The City Manager and his or her designee shall develop and administer a Tax Holiday program as authorized and provided in this article.
( Ord. No. NS-3031 , § 6, 11-8-22)
Sec. 21-144. Duration and application of program.
The Tax Holiday program shall be conducted for the period of twelve (12) months as specified hereinafter. (a) All annual license renewals based upon a flat rate shall be for the t welve-month period beginning January first of the current year and shall expire on the thirty-first day of December of the current year. (b) All annual license renewals based upon a variable flat rate shall be for the twelve -month period beginning July first of the current year and shall expire on the thirtieth day of June of the following year.
(c) All annual license renewals based upon gross receipts shall be for the twelve -month period beginning on April first of the current year and shall expire on the thirty-first day of March of the following year.
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(d) All quarterly licenses shall be for the period of three (3) months beginning on the first day of January and ending on the thirty-first day of March; on the first day of April and ending on the thirtieth day of June; on the first day of July and ending on the thirtieth day of September; on the first day of October and ending on the thirty-first day of December.
( Ord. No. NS-3031 , § 6, 11-8-22)
Sec. 21-145. Elements of program; requisites for compliance with program. (a) The provisions of this article shall apply to any persons who are required to obtain a business license and pay a business license tax under Chapter 21 of the Santa Ana Municipal Code and who files a business license application and complies with the following program requisites:
(1) Substantially complies with the business license application p rocedure created and administered by the City Manager and his or her designee;
(2) For any persons with unlicensed businesses who pay in full all business license taxes for the current tax year within a ninety (90) day period shall then be excused from all back tax liability, including penalties and interest, as described in Section 21-15.
(3) For any persons with licensed businesses that are in arrears for business license taxes or under - assessed as a result of improperly underreporting business license tax liabilities and wish to cure an arrears or underreporting may do so. However, the principal amount of the arrears outstanding or the principal amount of the under-assessment must be paid in full in order to qualify for a penalty and interest Tax Holiday.
(b) For any business license taxes subject to a Tax Holiday under this program, the City Manager and his or her designee may enter into an installment payment agreement, in lieu of the complete payment required under subdivision 2 of subsection (a) of this section. Failure of a person paying a business license tax to fully comply with the terms of the installment payment agreement shall render the waiver of any penalties and interest applicable thereto null and void, unless the City Manager and his or her designee determines that the failure was due to reasonable cause and the person substantially complied with the terms of the installment agreement. An installment agreement under this article shall have a minimum term of six (6) months, by which date all arrears business license taxes, fees, and costs must be fully paid. The City Manager and his or her designee may use their discretion to alter any existing installment agreement to reflect the intent of the Tax Holiday.
( Ord. No. NS-3031 , § 6, 11-8-22)
Sec. 21-146. Implementation of article.
The City Manager and his or her designee shall adequately publicize the Tax Holiday pr ogram, issue forms and instructions, and take all other necessary actions needed to implement this article. The City Manager and his or her designee shall have the discretion to create the application for the Tax Holiday program. The Finance and Management Services Agency shall have the discretion to determine whether a taxpayer has substantially complied with the requirements of the Tax Holiday program. ( Ord. No. NS-3031 , § 6, 11-8-22)
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ARTICLE V. HOTEL VISTORS' TAX1
Sec. 35-125. Title.
This article shall be known as "The Hotel Visitors Tax Ordinance of the City of Santa Ana." (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 2, 4-5-04) Sec. 35-126. Definitions.
Except where the context otherwise requires, the definitions given in this section govern the construction of this article:
(a) Person. The term "person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. (b) Hotel. The term "hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by hotel visitors for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.
(c) Occupancy. The term "occupancy" means the use or possession, or the right to the use or possession, of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. (d) Hotel visitors. The term "hotel visitors" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement. Any such person so occupying space in a hotel shall be deemed to be a hotel visitors until after the 30th consecutive day of such occupancy and said tax shall continue to be due upon all rent collected or accruing prior to said 30th day of occupancy unless such occupancy is pursuant to a qualifying rental agreement as defined in this article. In determining whether a person is a hotel visitors, uninterrupted periods of time extending both prior and subsequent to the effective date of this article may be considered. (e) Rent. The term "rent" means the total consideration charged to the hotel visitors as shown on the guest receipt for the occupancy of space in a hotel, including charges for equipment (such as rollaway beds, cribs and television set, etc.), and in-room services (such as movies and other services not subject to state taxes), valued in money, whether received or to be received in money, goods, labor or otherwise. It shall include all receipts, cash, credit, property and services of any kind or nature without any deduction therefrom whatsoever. The costs of additional goods and services, which are not "rent," but which may be sold as a package with the room (such as meals, excursions, and recreational services), must be accounted for in accordance with the rules and regulations promulgated by the finance director. (f) Operator. The term "operator" means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator 1Editor's note(s)—Ord. No. NS-2648, § 2, adopted April 5, 2004, changed the title of article V from "Transient Occupancy Tax" to "Hotel Visitors Tax."
EXHIBIT X
SANTA ANA MUNICIPAL CODE - CHAPTER 35 TAXATION, ARTICLE 5 HOTEL VISITORS’ TAX AND ARTICLE 6 UTILITY USERS TAX CODE
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performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this article and shall have the same duties and liabilities as his principal. Compliance with the provisions of this article by either the principal or the managing agent shall, however, be considered to be compliance by both. (g) Qualifying rental agreement. The term "qualifying rental agreement" means and shall be limited to a written contract signed by both the landlord and tenant, legally enforceable by either party thereto, and for a rental period of not less than thirty (30) consecutive days. Notwithstanding any other provision thereof, the term "qualifying rental agreement" as used in this article shall expressly exclude:
(1) Any agreement regardless of rental term which is terminated for any reason by either party thereto, or by mutual consent, prior to the 30th consecutive day of tenancy, or (2) Any agreement regardless of length of rental term which would be unlawful or constitute a violation of any provision of law.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 3, 4-5-04) Sec. 35-127. Tax imposed.
(a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eleven (11) per cent of the rent charged by the operator. The tax constitutes a debt owned by the transient to the city that is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent i s paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the finance director may require that such tax shall be paid directly to the finance director. (b) In the event that a qualifying rental agreement exists between the hotel and any person for occupancy, as hereinabove defined, for a period in excess of thirty (30) days and in the event that such person allows occupancy by another person as subtenant, guest, licensee or permittee, the person who has made the agreement with the hotel as aforesaid shall be subject to and shall pay the tax provided for herein. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-1694, § 1, 8-15-83; Ord. No. NS-1921, § 1, 7-20-87; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 4, 4-5-04; Ord. No. NS-2673, § 1, 11-2-04; Ord. No. NS-2673, § 1, 11-2-04) Sec. 35-128. Exemptions.
No tax shall be imposed upon:
(a) Any person as to whom, or any occupancy as to which, it is beyond the po wer of the city to impose the tax herein provided;
(b) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty;
(c) Any federal or state officer or employee while on official business only and when payment for such occupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office. This exemption does not exempt a hotel visitors who is employed by the United States government or the state or their respective instrumentalities from payment of the tax when the payment is later to be reimbursed by the United States government or the state or their respective instrumentalities.
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No exemption shall be granted except upon a claim therefore made at the time rent is collected and under penalty of perjury, upon a form prescribed by the finance director. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 5, 4-5-04) Sec. 35-129. Operator's duties.
(a) Each operator shall collect the tax imposed by this article to the same extent and at the same time as the rent is collected from every hotel visitors. The amount of tax shall be separately stated from the amount of the rent charged, and each hotel visitors shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided. Each operator shall account separately for and maintain separate monthly summary totals for taxable and nontaxable rents and for taxes collected.
(b) The operator shall maintain its financial and accounting records in accordance with established accounting principles acceptable to the finance director. In the event the operator offers paid packages or complementary services to guests, the charges shall be accounted for in accordance with the rules and regulations promulgated by the finance director.
(c) The tax required to be collected (any amount unreturned to the hotel visitors which is not tax but was collected under the representation that it was tax) constitutes a debt owed by the operator to the city and shall be paid to the city with the monthly remittance.
(d) Whenever an operator who has collected any sum under the representation that it was a tax, which sum is not required to be collected as a tax, remits said sum to the city and thereafter refunds such sum to such person in whole or part, such operator may take the amount of such refund as a credit against future taxes only upon submitting to the finance director a statement under penalty of perjury specifying the reasons for the credit and providing proof of payment of such refund. (e) Nothing contained in this article shall be deemed to authorize as a credit against taxes owed any amount returned by the operator to any tour promoter, travel agent, or third party other than the hotel visitors.
Travel agent commissions are an expense of the operator and may not be deducted from the rent. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 6, 4-5-04) Sec. 35-130. Registration.
(a) Within thirty (30) days after commencing business each operator of any hotel renting occupancy to hotel visitors shall register said hotel with the finance director and obtain from him a hotel visitors registration certificate to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following:
(1) T he name of the operator;
(2) The address of the hotel;
(3) The date upon which the certificate was issued;
(4) The words:
"This Hotel Visitors registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the uniform Hotel Visitors tax ordinance by registering with the finance director for the purpose of collecting from Hotel Visitors the Hotel Visitors tax and remitting said tax to City of Santa Ana
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the finance director. The certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a Hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this city. This certificate does not constitute a permit." (b) No hotel visitors registration certificate issued pursuant to this article shall be transferable or assignable; provided, that where a person holding a certificate issued under the provisions of this article changes the name of the business, such person shall upon changing the name make a written application to the finance director to have said certificate amended to reflect the change in name; and provided further, that transfe r, 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 corporation or other entity. (c) Whenever, upon the sale or transfer of an existing hotel, a hotel visitors registration certificate is applied for, the finance director shall require that the succeeding operator produce a certificate of nonliability or other receipt issued by the finance director establishing that no unsatisfied liability for hotel visitors taxes exists. (d) It shall be unlawful and a misdemeanor to operate a hotel without a valid hotel visitors registration certificate or to fail to post the certificate issued in a conspicuous place at all times. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 7, 4-5-04) Sec. 35-131. Reporting and remitting.
All operators shall report and remit monthly the full amount of hotel visitors taxes collected for the previous month upon the appropriate approved form available from the finance director. Hotel visitors taxes shall be deemed to be collected at that time at which the rent is earned if the operator uses the accrual basis of accounting or the time at which rent is received if the operator uses the cash basis of accounting. The same basis of accounting used for keeping the books and records shall be used for reporting and remitting hotel visitors taxes.
The finance director may establish shorter reporting periods for any certificate holder if he deems it necessary in order to insure collection of the tax, and he may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this article shall be held in trust for the account of the city until payment thereof is m ade to the finance director. (a) Calendar month reporting period. Each operator reporting on a calendar month basis shall, on or before the last day of the following month, make a return to the finance director on approved forms of the total taxable rents charged and the full amount of hotel visitors taxes collected for the previous month. At the time the return is filed, the full amount of the tax collected shall be remitted to the finance director.
(b) Timely returns. Returns and taxes remitted monthly and actually received by the finance director on or before the last day of the following month shall be deemed to be timely filed and remitted; otherwise, the taxes are delinquent and subject to the penalties imposed pursuant to section 35 -132. Provided, however, that when the last day upon which a return may be filed and taxes remitted falls on a Saturday, Sunday, or city, state, or national holiday, a timely filing and remittance may be made upon the first following working day. Returns filed and taxes remitted by mail shall be deemed to be timely filed only if the envelope or similar container enclosing the returns and taxes is addressed to the finance director, has sufficient postage and bears a United States postmark or a postage meter imprint prior to midnight on the last day for reporting and remitting without a penalty, if the last day for reporting and remitting said tax falls on a weekend or holiday, a filing shall be deemed to be timely filed if mailed prior to midnight of the first following working day. If such envelope or other container City of Santa Ana
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bears a postage meter imprint as well as a United States Post Office cancellation mark, the latter shall govern in determining whether the filing and remittance are timely. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 8, 4-5-04) Sec. 35-132. Penalties and interest; audit deficiency.
(a) Original delinquency. Any operator who fails to remit any tax imposed by this article within the time required shall pay a penalty of ten (10) percent of the amount of the tax in addition to the amount of the tax. (b) Continued delinquency. Any operator who fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay an additional delinquency penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first imposed. Any operator who fails to remit any delinquent remittance on or before a period of sixty (60) days following the date on which the remittance first became delinquent shall pay an additional delinquency penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first impos ed together with the additional ten (10) percent penalty imposed.
(c) Audit deficiency. If, upon audit by the city, an operator is found to be deficient in either its return or its remittance or both, the finance director shall immediately assess the operator the amount of the net deficiency plus an audit deficiency penalty of ten (10) percent of the amount of the net deficiency. If said operator's remittance was deficient for a period of greater than thirty (30) days following the date on which remittance was first delinquent, said operator shall pay an additional audit deficiency penalty of ten (10) percent of the net deficiency and the ten (10) percent penalty first imposed. If said operator's remittance was deficient for a period of greater than sixty (60) days following the date on which the remittance first became delinquent, said operator shall pay an additional audit deficiency penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first imposed together with the additi onal ten (10) percent penalty imposed. In addition thereto, the finance director shall assess interest at the rate of one and one-half (1½) percent per month or fraction thereto on the amount of the net deficiency for each month or portion thereof for which said operator's remittance was deficient. (d) Fraud. If the finance director determines that the nonpayment of any remittance due under this article is due to fraud, a penalty of twenty-five (25) percent of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs (a) and (b) of this section. (e) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this article shall pay interest at the rate of one and one-half (1½) percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. (f) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92) Sec. 35-133. Failure to collect and report tax.
If any operator shall fail or refuse to collect said tax and to make, within the time provided in this article, any report and remittance of said tax or any portion thereof required by this article, the finance director shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due.
As soon as the finance director shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this article and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this article. In case such determination is made, the finance director City of Santa Ana
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shall give a notice of the amount so assessed by serving it personally or by depo siting it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. Such operator may, within ten (10) days after the serving or mailing of such notice, make application in writing to the finance director for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the finance director shall become final and conclusive and immediately due and payable. If such application is made, the finance director shall give not less than five (5) days' written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties.
At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the finance director shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in section 35-134. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92) Sec. 35-134. Appeal.
(a) Any person aggrieved by any decision of the finance director or designee with respect to the amount of such tax, interest and penalties, if any, may appeal within fifteen (15) days pursuant to chapter 3 of this Code. In the event no appeal is filed within the time prescribed, the decision of the finance director or designee shall become final and conclusive and shall render any subsequent appeal null and void and shall further act as a waiver against future action.
(b) Notwithstanding any other provisions contained in this article or any other provision contained in this Code to the contrary, any operator tendering payment of any tax, interest or penalties to the city pursuant to any provision of this article shall for all purposes thereafter be precluded and barred from appealing, contesting or otherwise challenging the validity or amount of any such tax, interest or penalties pursuant to any otherwise available procedure set forth in this article, or otherwise available by law, unless said payment is made under written protest to the city. Said written protest shall be deemed made for the purposes of this article only by one (1) of the following methods: (1) a written notation set forth on the check, draft, money order, or other negotiable instrument by which payment is tendered, indicating that such payment is made under protest; or (2) a written notice addressed and delivered to the finance director at the time of payment indicating that such payment is made under protest.
(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-1235, § 14, 12-9-74; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. 2792, § 16, 8-17-09)
Sec. 35-135. Records.
(a) It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this article to keep and preserve, for the period of the current calendar year and for the prior period of the three (3) calendar years immediately preceding, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the city, which records the finance director shall have the right to inspect at all reasonable times. (b) Each operator within the city is hereby required to permit an examination of such books and records for the purposes aforesaid at a location within the City of Santa Ana. In the event such books and records cannot be made available within the City of Santa Ana, the operator is hereby required to reimburse the city for the cost of all transportation, lodging, meals, portal to portal travel time, and other incidental costs reasonably incurred by the city in obtaining said audit.
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(c) The information furnished or secured pursuant to this article shall be confidential to the extent allowed by law; provided, however, this section shall not apply to any disclosures made in connection with any appeal proceeding pursuant to this article, or any civil action relating to the recovery of such taxes, interest or penalties, or any prosecution of any person for violation of any provisions of this article. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92) Sec. 35-136. Refunds.
(a) When made. Whenever the amount of any tax, interest or penalty has been overpaid, or paid more than once, or has been erroneously or illegally collected or received by the city under this article it may be refunded as provided in subparagraph (b) and (c) of this section provided a claim in writing therefore, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the finance director within one (1) year of the date of payment. The claim shall be on forms furnished by the finance director.
(b) Refund to hotel visitors. An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the finance director that the person from whom the tax has been collected was not a hotel visitors; provided however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the hotel visitors or credited to rent subsequently payable by the hotel visitors to the operator. (c) Hotel visitors recourse. A hotel visitors may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in subparagraph (a) of this section, but only when the tax was paid by the hotel visitors directly to the finance director, or when the hotel visitors having paid the tax to the operator, establishes to the satisfaction of the finance director that the hotel visitors has been unable to obtain a refund from the operator w ho collected the tax.
(d) Written records. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04) Sec. 35-137. Actions to collect taxes; recording and enforcement of liens; cumulative remedies.
(a) Actions to collect. Any tax required to be paid by any hotel visitors under the provisions of this article shall be deemed a debt owed by the transient hotel visitors to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this article shall be liable to an action brought in the name of the city for the recovery of such tax, penalties, interest, and administrative costs incurred in connection therewith, including attorney fees.
(b) Recording of a certificate of lien. If any amount required to be paid under this article is not paid when due, the finance director or his designated agent may record in the office of the county recorder(s) of such counties as the finance director may determine a certificate which specifies the amount of tax, penalties and interest due, the name and address of the operator liable for the same, a statement that the finance director has complied with all provisions of this article in the determination of the amount required to be paid, and a legal description of the real property owned by the operator. From the time of the recording of the certificate, the amount required to be paid together with penalties and interest constitutes a lien upon all City of Santa Ana
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real property in the county owned by the operator or thereafter acquired before the lien expires. The lien shall have the force, effect and priority of a tax lien and shall continue for ten (10) years from the filing of a certificate unless sooner released or otherwise discharged. (c) Warrant for collection of tax. At any time within three (3) years after the recording of a certificate of lien, the finance director or his designated agent may issue a warrant directed to any sheriff or marshal for the enforcement of the lien and the collection of any taxes, penalties and interest required to be paid to the city under this article. The warrant shall have the same effect as a writ of execution and be executed in the same manner and with the same effect as a levy and sale pursuant to a writ of execution. (d) Seizure and sale. In lieu of issuing a warrant under subsection (c), at any time within three (3) years after an assessment was issued or a certificate of lien was recorded under subsection (b), the finance director or his designated agent may collect the delinquent amount by seizing or causing to be seized any pro perty, real or personal, of the operator and sell any non-cash or nonnegotiable property or a sufficient part of it at public auction to pay the amount of tax due together with any penalties and any costs incurred on account of the seizure and sale. Any seizure made to collect taxes due shall only be of property of the operator not exempt from execution under provisions of the Code of Civil Procedure. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04) Sec. 35-138. Violations.
(a) Any operator or other person who fails or refuses to register as required herein or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the finance director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and upon conviction thereof, is punishable as provided for in section 1-8 of this Code. Each day any such violation of this article shall continue shall constitute a separate offense. (b) Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this article to be made is guilty of a misdemeanor and is punishable as aforesaid. (c) Any operator violating any of the other mandatory provisions of this article shall be guilty of misdemeanor and is punishable as aforesaid. The commencement of criminal proceedings shall neither preclude nor abate administrative or civil actions to collect taxes due under this article. (d) It shall not be a defense to violations of this article that the operator, including a resident manager, had forwarded any return due or taxes collected to its principal or corporate headquarters, nor that any failure to file or remit taxes was based on the direction or inaction of such principal or corp orate headquarters. (Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92) Sec. 35-139. Security for collection of the tax.
(a) To ensure compliance with hotel visitors tax payment requirements, the finance director shall require each new operator subject to such requirements to deposit with the city within one (1) year after the effective date of this article, or within thirty (30) days after commencing business, whichever is later, such security in a form acceptable to the finance director in the amount not greater than the person's estimated average liability for the first period for which a return must be filed or the sum of ten thousand dollars ($10,000.00), whichever is the lesser. To recover hotel visitors taxes, including penalties and interest, remittable by the depositor, the finance director may apply the security deposited with the finance director.
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(b) At least fifteen (15) days prior to the application of a security deposit, the finance director shall serve upon the depositing operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the depositing operator at his hotel. Any portion of the security remaining after satisfaction of outstanding hotel visitors taxes, penalties, interest and costs of sale may be retained by the finance director for security or may be paid over by him to the depositing operator.
(c) In the case of the transfer or cessation of business by the depositor, the finance director shall refund or release the security amount required pursuant to this section, upon depositor's presentation to the finance director of either a receipt from the finance director showing that all hotel visitors taxes, including any penalty, interest or other charges or costs outstanding, have been paid or a certificate of nonliabi lity stating the nonliability of the depositor for payment of hotel visitors tax as hereunder provided in section 35 -140. (Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04) Sec. 35-140. Transfer or cessation of business; operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's liability; certificate of nonliability.
(a) Operator's duty to notify. An operator who is transferring, selling or terminating his business shall notify the finance director in writing of such sale, transfer or termination and the name and address of the purchaser or transferee at least thirty (30) days in advance of the date of the transfer, sale or termination, unless the decision to sell, transfer or terminate was made within less than a thirty -day period prior to the transfer, sale or termination, in which case the operator shall then immediately notify the purchaser or transferee of their responsibility for unpaid taxes as set forth in subsections (c) and (d) below, and further certify in writing to the finance director that the transferee or purchaser was notified of the requirem ents of this article regarding its responsibility for unpaid collected taxes. (b) Remitting and reporting requirements. Each operator upon the transfer or cessation of business for any reason shall, on or before the last day of the next month following the transfer or cessation of business, make a return to the finance director on approved forms of the total taxable rents charged, the amount of tax collected for the reporting period, remittances made, if any, and the balance of the tax due, if any, shall be remitted to the finance director.
(c) Closeout audit. After filing the final return and remitting the balance due, the operator shall make his records of account available for a closeout audit by the finance director or duly authorized employee or agent of the city. If, upon audit by the city, the operator transferring or quitting his business is found to have satisfied all hotel visitors liability, the finance director shall issue to such operator a certificate of nonliability stating the nonliability of the operator for payment of hotel visitors taxes. If, upon audit by the city, the operator transferring or quitting his business is deficient in either his return or his remittance or both, the finance director shall immediately assess such operator the amount of the net deficiency in accordance with section 35-132 above. Upon such operator's remittance of the deficient amount plus any penalty and interest assessed, the finance director shall issue a certificate of nonliability. (d) Successor's duty to notify. If an operator who is liable for any hotel visitors taxes, penalties or interest under this article sells or otherwise transfers his business, his assignee or successor in interest shall notify the finance director of the date of the sale or transfer at least thirty (30) days before the date of the sale or transfer. If the decision to sell or transfer was made within less than a thirty -day period prior to the sale or transfer, the assignee or successor in interest shall notify the finance director immediately and shall withhold an amount equal to the accrued or outstanding hotel visitors tax liability of the operator until the transferring operator produces either a receipt from the finance director showing that the tax, including any penalty, interest or other charge or cost outstanding, has been paid or a certificate of nonliability stating the City of Santa Ana
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nonliability of the operator for payment of hotel visitors tax. If the transferor does not present a receipt or notice of nonliability within thirty (30) days after such sale or transfer after such assignee or successor commences to conduct business, the assignee or successor shall deposit the withheld amount with the finance director pending settlement of the account of the transferor. (e) Successor's liability. If the assignee or successor in interest fails to withhold the amount required to satisfy the tax liability, he shall become personally liable for the payment of the amount required to be withheld by him and shall be subject to penalty and interest charges as set forth in section 35-132. (f) Certificate of nonliability. Within thirty (30) days from the receipt of the application of any operator for a certificate of nonliability for the payment of hotel visitors taxes, the finance director after conduct ing an audit therefore shall issue the certificate if the operator's tax liability has been satisfied to the date of the application. If tax has accrued to that date, the finance director shall give notice to the operator of the amount which must be paid as a condition of issuing the certificate. (Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 10, 4-5-04) Sec. 35-141. Additional powers and duties of tax administrator, etc. (a) The finance director shall have the power and duty to enforce this article and shall have the power to adopt rules and regulations not inconsistent with the provisions of this article for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of all such rules and regulations adopted by the finance director shall be maintained on file in the offices of the finance director.
Where uncertainty exists regarding the interpretation of any provision of this article or its application to a specific hotel, operator or hotel visitors, the finance director shall determine the intent of the provision. Such determination shall take the form of a written memorandum of intent. A copy of all such memoranda issued by the finance director shall be maintained on file in the offices of the finance director. (b) The finance director shall have the further power, for good cause shown, to extend the time for filing any required report and remitting any taxes collected for thirty (30) days; and shall have the further power, for good cause shown, to waive or release any cash deposit, bond, bankshare, lien, or other security required and to compromise any claim as to any penalty imposed or charge demanded. (c) The finance director may with the consent and approval of the city attorney enter into written agreements with persons liable for the payment of delinquent taxes, penalties and interest, in monthly installme nts, or more often, extending over a period not exceeding one (1) year. In any agreement so entered into, such person shall acknowledge the obligation owed the city and agree that, in the event of failure to make timely payment of any installment, the whole amount unpaid, principal together with interest, shall become immediately due and payable. 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 attorney fees. The execution of such an agreement shall not prevent the prior accrual of penalties and interest on unpaid balances at the rate provided hereinabove, but no penalties or additional interest shall accrue as hereinafter provided on account of taxes included in the agreement after the execution of the agreement and the payment of the first installment and during such time as such operator shall not be in breach of the agreement. The execution of such an agreement shall render any subsequent appeal null and void and shall constitute a waiver against future action. (d) In addition to all other authority conferred upon him, the finance director, upon the concurrence of the city attorney, shall have the authority to discontinue the collection of any claim if it appears that further proceedings would be without merit.
(Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 10, 4-5-04) City of Santa Ana
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Secs. 35-142—35-150. Reserved.
ARTICLE VI. UTILITY USERS TAX CODE2
Sec. 35-151. Short title.
This article shall be known as the "Utility Users Tax Ordinance of the City of Santa Ana." The word "ordinance," "code" or "article" as used in this article shall mean the "Utility Users Tax Ordinance" unless otherwise so indicated.
(Ord. No. NS-2436, § 2, 8-4-00; Ord. No. NS-2860, § 1, 12-9-14 ) Sec. 35-152. Purpose.
This article is required for the purpose of fixing the rate of taxation for the utility users' tax, and for the purpose of providing a tax levy for the usual and current expenses of the City of Santa Ana. (Ord. No. NS-2436, § 2, 8-4-00; Ord. No. NS-2860, § 2, 12-9-14 ) Sec. 35-153. Definitions.
The following words and phrases whenever used in this article shall be construed as defined in this sectio n, unless otherwise indicated.
(a) "Ancillary telecommunication services" means services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to the following services:
(1) "Conference bridging service" means an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge.
(2) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement. (3) "Directory assistance" means an ancillary service of providing telephone number information, and/or address information.
(4) "Vertical service" means an ancillary service that is offered in connection with one (1) or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services. 2Editor's note(s)—Ord. No. NS-2436, § 2, adopted August 4, 2000, essentially re-enacted Article VI of this chapter by repealing the provisions of §§ 35-151—35-168 and replacing them with the similar provisions found in §§ 35-151—35-177 as currently set out herein. For a detailed history of former §§ 35 -151—35-168, please refer to the Code Comparative Table.
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(5) "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service. (b) "Billing address" shall mean the mailing address of the service user where the service supplier submit s invoices or bills for payment by the customer.
(c) "City" shall mean the City of Santa Ana.
(d) "Day" shall mean a calendar day.
(e) "Gas" shall mean natural or manufactured gas or any alternate hydrocarbon fuel that may be substituted therefore.
(f) "Mobile telecommunications service" shall mean commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations and as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) and the regulations thereunder. (g) "Month" shall mean a calendar month.
(h) "Non-utility service supplier" means:
(1) A service supplier, other than a supplier of electric distribution services to all or a significant portion of the city, which generates electricity for sale to others, and shall include but is not limited to any publicly-owned electric utility, investor-owned utility, cogenerator, distributed generation provider, exempt wholesale generator (15 U.S.C. Section 79z-5a), municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity; (2) An electric service provider (ESP), electricity broker, marketer, aggregator, pool operator, or other electricity supplier other than a provider of electric distribution services to all or a significant portion of the city, which sells or supplies electricity or supplemental services to electricity users within the city; and
(3) A gas service supplier, aggregator, marketer or broker, other than a supplier of gas distribution services to all or a significant portion of the city, which sells or supplies gas or supplemental services to gas users within the city.
(i) "Paging service" means a "telecommunications service" that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds. (j) "Person" shall mean, without limitation, any natural individual, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non-profit), joint power agency, municipal district or municipal corporation (other than the city), cooperative, receiver, trustee, guardian, or other representative appointed by order of any court.
(k) "Place of primary use" means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer.
(l) "Post-paid telecommunication service" means the telecommunication service obtained by making a payment on a communication-by-communication basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is not associated with the origination or termination of the telecommunication service. (m) "Prepaid telecommunication service" (including prepaid mobile telecommunication service) shall mean the right to access telecommunication services, which must be paid for in advance and which enables the City of Santa Ana
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origination of communications using an access number or authorization code, whether manually or electronically dialed.
(n) "Private telecommunication service" means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels. A communications channel is a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points (i. e., the location where the customer either inputs or receives the communications). (o) "Service address" means the residential street address or the business street address of the service user. For a telecommunication service user, "service address" means either:
(1) The location of the service user's telecommunication equipment from which the telecommunication originates or terminates, regardless of where the telecommunication is billed or paid; or (2) If the location in subsection (1) of this definition is unknown (e.g., mobile telecommunications service or VoIP service), the service address means the location of the service user's place of primary use. (3) For prepaid telecommunication service, "service address" means the point of sale of the services where the point of sale is within the city, or if unknown, the known address of the service user (e.g., billing address or location associated with the service number), which locations shall be presumed to be the place of primary use.
(p) "Service supplier" shall mean any entity or person, including the city that provides, sells, or resells a utility service to a user of such service within the city.
(q) "Service user" shall mean a person required to pay a tax imposed under the provisions of this article. (r) "State" shall mean the State of California.
(s) "Streamlined sales and use tax agreement" means the multi-state agreement commonly known and referred to as the streamlined sales and use tax agreement, as it is amended from time to time. (t) "Tax administrator" shall mean the finance director, or his or her designee. (u) "Telecommunications service" means the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the techn ology used.
The term "telecommunications services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that are functionally integrated with "telecommunication services." "Telecommunications services" include, but are not limited to the following services, regardless of the manner or basis on which such services are calculated or billed: ancillary telecommunication services; intrastate, interstate, and international telecommunication services; mobile telecommunications service; prepaid telecommunication service; post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll -free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to pre -recorded or live service). The term "telecommunication services" shall include, but is not limited to, charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory or administrative fees, charges or sur charges, City of Santa Ana
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including charges or surcharges for programs imposed by state or federal law (whether such charges or surcharges are imposed on the service supplier or the customer); local number portability charges; and text and instant messaging. "Telecommunication services" shall not include digital downloads that are not "ancillary telecommunication services," such as music, ringtones, games, and similar digital products. (v) "VoIP (Voice over Internet Protocol)" means the digital process of making and receiving real -time voice transmissions over any Internet Protocol network.
(w) "800 Service" means a "telecommunications service" that allows a caller to dial a toll -free number without incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers designated by the Federal Communications Commission.
(x) "900 Service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. "900 service" does not include the charge for: collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and any subsequent numbers designated by the Federal Communications Commission.
(Ord. No. NS-2436, § 2, 8-4-00; Ord. No. 2721, § 2, 8-7-06; Ord. No. NS-2723, § 2, 8-7-06; Ord. No. NS-2860, § 3, 12- 9-14 )
Sec. 35-154. Constitutional exemptions.
(a) Nothing in this code shall be construed as imposing a tax upon:
(1) Any person or service when imposition of such tax upon that person or service would be in violation of a federal or state statute, the Constitution of the United States or that of the Sta te of California; and (2) The city.
(b) Any service user that is exempt from the taxes imposed by this code pursuant to subsection (a) shall file an application with the tax administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a state or federal agency or subdivision with a commonly recognized name, or is a service user of telephone communication services that has received a federal excise tax exemption certificate for such service. Said application shall be made upon a form approved by the tax administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption, and shall include the names of all utility service providers serving that service use r. If deemed exempt by the tax administrator, such service user shall give the tax administrator timely written notice of any change in utility service providers so that the tax administrator can properly notify the new utility service provider of the service user's tax exempt status. A service user that fails to comply with this section shall not be entitled to a refund of utility users taxes collected and remitted to the tax administrator from such service user as a result of such non-compliance. Upon request of the tax administrator, a service supplier or non- utility service supplier, or its billing agent, shall provide a list of the names and addresses of those customers which, according to its billing records, are deemed exempt from the utility users ta x. With respect to a service user of telephone communication service, a service supplier of such telephone communication services doing business in the city shall, upon the request of the tax administrator, provide a copy of the federal exemption for each exempt customer within the city that is served by such service supplier. (Ord. No. NS-2436, § 2, 8-4-00)
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Sec. 35-155. Telephone users tax.
(a) There is hereby imposed a tax upon every person in the city using telecommunication services. The tax imposed by this Section shall be at the rate of five and one-half (5½) percent of the charges made for such services and shall be collected from the service user by the telecommunication services supplier or its billing agent. There is a rebuttable presumption that telecommunication services, which are billed to a billing or service address in the city, are used, in whole or in part, within the city's boundaries, and such services are subject to taxation under this section. There is also a rebuttable presumption that prepaid telecommunication services sold within the city are used, in whole or in part, within the city and are therefore subject to taxation under this section. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecommunication services.
(b) "Mobile telecommunications service" shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The tax administrator may issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this article, sourcing rules for the taxation of other telecommunication services, including but not limited to post-paid telecommunication services, prepaid telecommunication services, VoIP, and private communication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multi jurisdictional taxation (e.g., streamlined sales and use tax agreement).
(c) The tax administrator may issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this article, an administrative ruling identifying those telecommunication services, or charges therefore, that are subject to or not subject to the tax of subsection (a) above.
(d) To prevent actual multi jurisdictional taxation of telecommunication services subject to tax under this section, any service user, upon proof to the tax administrator that the service user has previously paid the same tax in another state or city on such telecommunication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the city under this section. (e) The tax on telecommunication services imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one (1) month shall be remitted to the tax administrator, and must be received by the tax administrator on or before the 20th day of the following month. (Ord. No. NS-2436, § 2, 8-4-00; Ord. No. 2721, § 3, 8-7-06; Ord. No. NS-2723, § 3, 8-7-06; Ord. No. NS-2860, § 4, 12- 9-14 )
Sec. 35-155.1. Bundling taxable items.
If any nontaxable charges are combined with and not separately stated from taxable service charges on the customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the service supplier's books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. If the service supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non- taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, City of Santa Ana
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and not created and maintained for tax purposes. The service supplier has the burden of proving the proper valuation and apportionment of taxable and non-taxable charges. ( Ord. No. NS-2860, § 5, 12-9-14 )
Sec. 35-155.2. Substantial nexus/minimum contact.
For purposes of imposing a tax or establishing a duty to collect and remit a tax under this article, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of the imposition, collection and/or remittance of the utility users' tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any telecommunication service (including VoIP) used by a person with a service address in the city, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus/minimum contacts" exists for purposes of imposing a tax, or establishing a duty to collect and re mit a tax, under this article.
A service supplier shall be deemed to have sufficient activity in the city for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has within the city, directly or through an agent, affiliate, or subsidiary, a place of business of any nature; solicits business in the city by employees, independent contractors, resellers, agents or other representatives; solicits business in the city on a continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a transmitter with the city or distributed from a location with the city; or advertises in newspapers or other periodicals printed and published within the city or through materials distributed in the city by means other than the United States mail; or if there are activities performed in the city on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and m aintain a market in the city for the provision of utility services that are subject to a tax under this article (e.g., an affiliated person engaging in activities in the city that inure to the benefit of the service supplier in its development or maintenance of a market for its services in the city).
( Ord. No. NS-2860, § 6, 12-9-14 )
Sec. 35-156. Electricity users tax.
(a) There is hereby imposed a tax upon every person in the City of Santa Ana using electricity in the city. The tax imposed by this section shall be at the rate of six (6) percent of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and/or necessary for the provision of electricity to the service user, which are provided by a service supplier or non- utility service supplier to a service user. The tax shall be collected from the service user by the service supplier or non -utility service supplier, or its billing agent.
(b) As used in this section, the term "charges" shall apply to all services, components and items that are: i) necessary or common to the receipt, use and enjoyment of electric service; or, ii) historically have been, included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. The term "charges" shall include but is not limited to, the following charges:
(1) Energy charges;
(2) Distribution or transmission charges;
(3) Metering charges;
(4) Stand-by, reserves, firming, ramping, voltage support, regulation, emergency, or other similar minimum charges for services;
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(5) Customer charges, late charges, service establishment or reestablishment charges, demand charges, fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public purpose program charges, nuclear decommissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary to or common for the receipt, use and enjoyment of electric service; and (6) Charges, fees or surcharges for electricity services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees or surcharges appear on a bundled or line item basis on the customer billing. (c) As used in this section, the term "charges" shall also include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the electricity or services related to the provision of such electricity. If a non-taxable service and a taxable service are billed together under a single charge, the entire charge shall be deemed taxable unless the service supplier can reasonably identify charges not subject to the utility users tax based upon its books and records that are kept in the regular course of business, which shall be consistent with generally accepted accounting principles. (d) The tax administrator, from time to time, may survey the electric service suppliers to identify the various unbundled billing components of electrical retail service that they commonly provide to residential and commercial/industrial customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of prov iding such electric service. The tax administrator, thereafter, may issue and disseminate to such electric service suppliers an administrative ruling identifying those components and items which are: i) necessary or common to the receipt, use and enjoyment of electric service; or, ii) currently, or historically have been, included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. Unbundled charges for such components and items shall be subject to the tax of subsection (a) above. (e) As used in this section, the term "using electricity" shall not be construed to include the mere receiving of such electricity by an electric public utility or governmental agency at a point within the city for resal e; or the use of such electricity in the production or distribution of water by a public utility or a governmental agency. (f) The tax on electricity provided by a non-utility service supplier not under the jurisdiction of this code shall be collected and remitted in the manner set forth in section 35-158 of this code. All other taxes on charges for electricity imposed in this section shall be collected from the service user by the electric service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the tax administrator on or before the twentieth (20th) day of the following month in accordance with section 35 -163 of this code; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user on or before the twentieth (20th) day of the following month in accordance with section 35 -163 of this code.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-156.1. Reduction in rate.
The electricity users tax imposed under section 35-156 shall be reduced from six (6) percent to five and one- half (5½) percent.
( Ord. No. NS-2860, § 7, 12-9-14 )
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Sec. 35-157. Gas user tax.
(a) There is hereby imposed a tax upon every person in the City of Santa Ana, other than a gas corporation or electrical corporation, using gas in the city which is delivered through a pipeline distribution system. The tax imposed by this section shall be at a rate of six (6) percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas, and shall be collected from the service user by the service supplier or non-utility service supplier, or its billing agent. (b) As used in this section, the term "charges" shall apply to all services, components and items for gas service that are: i) necessary or common to the receipt, use and enjoyment of gas service; or, ii) currently, or historically have been, included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. The term "charges" shall include, but is not limited to, the following charges:
(1) The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production and delivery of such gas), which is delivered through a gas pipeline distribution system;
(2) Gas transportation charges (including interstate charges to the extent not included in commodity charges);
(3) Storage charges; provided, however, that the service provider shall not be required to apply the tax to any charges for gas storage services when the service provider cannot, as a practical matter, determine the jurisdiction where such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gas storage by the service provider and to remit the tax to the appropriate jurisdiction; and (4) Capacity or demand charges, late charges, service establishment or reestablishment charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary or common to the receipt, use and enjoyment of gas service, and (5) Charges, fees or surcharges for gas services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees or surcharges appear on a bundled or line item basis on the customer billing. (c) As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the gas or services related to the delivery of such gas. If a non-taxable service and a taxable service are billed together under a single charge, the entire charge shall be deemed taxable unless the service supplier can reasonably identify charges not subject to the utility users tax based upon its books and records that are kept in the regular course of business, which shall be consistent with generally accepted accounting principles. (d) The tax administrator, from time to time, may survey the gas service suppliers to identify the various unbundled billing components of gas retail service that they commonly provide to residential and commercial/industrial customers in the city, and the charges therefor, including those items that are mandated by state or federal regulatory agencies as a condition of providing such gas service. The tax administrator, thereafter, may issue and disseminate to such gas service suppliers an administrative ruling identifying those components and items which are: i) necessary or common to the receipt, use and enjoyment of gas service; or, ii) currently, or historically have been, included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. Unbundled charges for such components and items shall be subject to the tax of subsection (a) above. (e) There shall be excluded from the base on which the tax imposed in this section is computed:
(1) Charges made for gas which is to be resold and delivered through a pipeline distribution system; City of Santa Ana
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(2) Charges made for gas sold for use in the generation of electricity or for the production or distribution of water by a public utility or governmental agency; and (3) Charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities.
(f) The tax that is calculated on charges for gas provided by self-production or by a non-utility service supplier not under the jurisdiction of this code shall be collected and remitted in the manner set forth in section 35 - 158 of this code. All other taxes imposed in this section shall be collected from the service user by the gas service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the tax administrator on or before the twentieth (20th) day of the following month in accordance with section 35 - 163 of this code; or, at the option of the person required to collect or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user on or before the twentieth (20th) day of the following month in accordance with section 35-163 of this code.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-157.1. Reduction in rate.
The gas user tax imposed under section 35-157 shall be reduced from six (6) percent to five and one-half (5½) percent.
( Ord. No. NS-2860, § 8, 12-9-14 )
Sec. 35-158. Collection of tax from service users receiving direct purchase of gas or electricity. (a) Any service user subject to the tax imposed by section 35-156 or by section 35-157 of this Code, which produces gas or electricity for self-use, or which receives gas or electricity, including any related supplemental services, directly from a non-utility service supplier not under the jurisdiction of this ordinance, or which, for any other reason, is not having the full tax collected and remitted by its serv ice supplier, a non- utility service supplier, or its billing agent on the use of gas or electricity, including any related supplemental services, in the city, shall report said fact to the tax administrator and shall remit the tax due directly to the tax administrator within thirty (30) days of such use. In lieu of paying said actual tax, the service user may, at its option, remit to the tax administrator within thirty (30) days of such use an estimated amount of tax measured by the tax billed in the previous month, or upon the payment pattern of similar customers of the service supplier using similar amounts of gas or electricity, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within sixty (60) days fo llowing each calendar quarter. The credit, if approved by the tax administrator, may be applied against any subsequent tax bill that becomes due.
(b) The tax administrator may require said service user to identify its non- utility service supplier and provide, subject to audit, invoices, books of account, or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or, if the administrative cost of calculating the tax in the opinion of the tax administrator is excessive, the tax administrator may determine the tax by applying the tax rate to the equivalent charges the service user would have incurred if the gas or electricity used, including any related supplemental services, had been provided by the service supplier that is the primary provider of gas or electricity within the city. Rate schedules for this purpose shall be available from the city. (Ord. No. NS-2436, § 2, 8-4-00)
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Sec. 35-159. Water user tax.
(a) There is hereby imposed a tax upon every person in the City of Santa Ana using water in the city which is delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of six (6) percent of the charges made for such water and shall be collected from the service user by the service supplier, or its billing agent.
(b) As used in this section, the term "charges" shall apply to all services, components and items that are: i) necessary or common to the receipt, use and enjoyment of water service; or, ii) currently, or historically have been, included in a single or bundled rate for water service by a local distribution company to a class of retail customers. The term "charges" shall include, but is not limited to, the fol lowing charges:
(1) Water commodity charges (potable and non-potable);
(2) Distribution or transmission charges;
(3) Metering charges;
(4) Customer charges, late charges, service establishment or reestablishment charges, franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use and enjoyment of water service; and (5) Charges, fees, or surcharges for water services or programs, which are mandated by a wa ter district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing.
(c) As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the water services.
If a non-taxable service and a taxable service are billed together under a single charge, the entire charge shall be deemed taxable unless the service supplier can reasonably identify charges not subject to the utility users tax based upon its books and records that are kept in the regular course of business, which shall be consistent with generally accepted accounting principles. (d) There shall be excluded from the base on which the tax imposed in this section is computed charges made for water which is to be resold and delivered through a pipeline distribution system. (e) The tax on water service imposed by this section shall be collected from the service user by the service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the tax administrator on or before the twentieth (20th) day of the following month in accordance with section 35- 163 of this Code.
(f) Notwithstanding subsection (e), above, the city, when acting as the service supplier or billing agent, may remit the amount of tax collected to the tax administrator in accor dance with any administrative rules established by the tax administrator.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-159.1. Reduction in rate.
The water user tax imposed under section 35-159 shall be reduced from six (6) percent to five and one-half (5½) percent.
( Ord. No. NS-2860, § 9, 12-9-14 )
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Sec. 35-160. Decisions on amounts imposed.
If any tax, penalty, or interest charge imposed by this code is for any reason held to be discriminatory or invalid in amount, by the decision of any court of competent jurisdiction, such decision shall not affect the validity of a lesser amount imposed by the tax administrator with the concurrence of the city attorney. The city council hereby declares that it would have imposed a valid utility users tax, penal ty, or interest charge of the maximum nondiscriminatory amount permitted by law, up to but not exceeding, the amount provided under this code on the person or persons in question, irrespective of the fact that any one (1) or more of the taxes, penalties, or interest charges imposed herein may be declared discriminatory or invalid in amount. (Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-161. Duty to collect; procedures.
The duty of service suppliers to collect and remit the taxes imposed by this code shall be performed as follows:
(a) The tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practice of the service supplier. (b) In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said charges, section 35-167(b) of this code shall apply. (c) The duty to collect tax from a service user shall commence with the beginning of the first full regular billing period applicable to that person which starts on or after the operative date of this code. Where a person receives more than one (1) billing for different periods, the duty to collect shall arise separately for each billing period.
(d) Whenever a service supplier negligently fails in its duty to determine and collect the required tax from a service user, any other amount collected by the service supplier from the service user shall then be subject to a constructive trust in the favor of the city for the full amount of the uncollected tax. (Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-162. Duty to remit—Procedures.
(a) Each person required by this code to remit a tax shall file a return with the tax administrator on forms approved by the tax administrator on or before the due date in accordance with section 35- 163 of this code.
The full amount of the tax owed shall be included with the return and filed with the tax administrator. The tax administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied and collected in accordance with this code. Returns are due immediately upon cessation of business for any reason. Pursuant to state Revenue and Taxation Code Section 7284.6 as amended from time to time, the tax administrator, and his or her agents, shall maintain such filing returns as confidential information not subject to the Public Records Act. (b) If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall: i) provide to the tax administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax to the city; and, ii) upon request of the tax administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the tax administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the city.
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(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-163. Timely filing and remittance.
Returns and taxes may be filed and remitted by the following means: i) in person, ii) by United States Mail, iii) by express carrier, and iv) by electronic means. Returns filed and/or taxes remitted monthly, and actually received by the tax administrator on or before the due dates provided in this code shall be deemed to be timely filed and/or remitted; otherwise, the taxes are delinquent and subject to the penalties imposed pursuant to section 35 -164.
Provided, however, that when the last day upon which a return may be filed or a tax remitted falls on a Saturday, Sunday, or city, state, or national holiday, a timely filing and remittance may be made upon the first following working day.
A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this code shall be considered timely if the transfer is initiated on or before the due dates provided in this code, and settles into the city's account on the following business day.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-164. Penalty and interest; delinquencies and deficiencies in collection and remittance. (a) Taxes collected but not remitted by due date—delinquencies in remittance. If taxes collected by a service supplier from a service user, or self collected by a service user subject to section 35 -158 of this code are not remitted to the tax administrator on or before the due dates provided in this code, such taxes shall be delinquent. The tax administrator shall attach a penalty for such delinquencies in remittance at the rate of fifteen (15) percent of the total delinquent amount due. (b) Taxes not collected—delinquencies in collection. If a service supplier required to collect any tax hereunder fails to collect such tax, or, if a service user required to self-collect and remit the tax pursuant to section 35- 158 of this code, fails to self collect the tax, the tax administrator shall attach a penalty for such delinquencies in collection at the rate of fifteen (15) percent of the total tax amount that is determined to be due.
(c) Taxes not fully collected—deficiencies in collection. If a service supplier required to collect and remit any tax hereunder fails to collect the full amount of the tax, or, if a service user subject to section 35 -158 of this code fails to properly self-collect the full amount of the tax, the tax administrator shall attach a penalty for such deficiencies in collection at the rate of fifteen (15) percent of the total tax amount that is determined to be due.
(d) Taxes not fully remitted—deficiencies in remittance. If a service supplier required to collect and remit any tax hereunder fails to remit the full amount of the tax collected, or, if a service user su bject to section 35-158 of this code fails to properly remit the full amount of the tax self-collected, the tax administrator shall attach a penalty for such deficiencies in remittance at the rate of fifteen (15) percent of the total tax amount that is determined to be due.
(e) Fraud or gross negligence—additional penalties. If the tax administrator determines that the nonpayment of any delinquency or deficiency due by any service supplier, or service user required to self -collect and remit the tax pursuant to section 35-158 of this code, is due to fraud or gross negligence, the tax administrator shall have the power to impose additional penalties upon such persons at the rate of fifteen (15) percent of the amount of the remittance due.
(f) Penalties—maximum amount. The cumulative amount of all applicable penalties imposed under this code shall not exceed an amount equal to the amount of the tax originally owed.
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(g) Interest—due from date of delinquency. Any person subject to any penalty imposed hereinabove in this section, shall also pay interest at the rate of three-quarters of one percent (¾) per month, or any fraction thereof, on the amount subject to penalty, from the date on which the remittance of such amount first became delinquent or deficient until paid.
(h) Penalties and interest. All penalties and all interest imposed under this code shall be subject to the same actions to collect and the same provisions for enforcement as the tax imposed by this code. (i) Penalties, interest, delinquencies and deficiencies owed. All penalties and interest imposed under this code together with all delinquencies and deficiencies owed shall be due and payable as of the date of notification which shall be given in the same manner as administrative assessments in ac cordance with section 35-167 of this code. Any person assessed any amount as delinquency, or deficiency, or penalty, or interest shall have the same right of appeal as provided in the case of administrative assessments in accordance with section 35-167 of this code and shall be governed by the same provisions as set forth therein. (Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-165. Actions to collect.
Any tax, penalty, or interest required to be paid by a service user under the provisions of this code shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user together with any penalties or interest due thereon which have not been remitted to the tax administrator shall be deemed a debt owed to the city by the service supplier required to collect and remit. The amount of any tax required to be collected from a service user by a service supplier which is held in constructive trust in the favor of the city shall be a debt owed by the service supplier to the city. Any person owing money to the city under the provisions of this code shall be liable to an action brought in the name of the city for the recovery of such amount plus related costs incurred by the city.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-166. Tax administrator, ex officio collector of utility users taxes; additional powers and duties of tax administrator, etc.
(a) The tax administrator shall be ex officio utility users tax collector. (b) The tax administrator shall have the power and authority to enforce all of the provisions of this code. (c) The tax administrator may adopt administrative rules, regulations, and guidelines, or make administrative agreements consistent with the intent of the provisions of this code for the purpose of administe ring the provisions herein regarding the payment, collection and remittance of said taxes. (Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-167. Assessment; administrative remedy.
The tax administrator may make an assessment for taxes not collected and/or not remitted or paid by any person required to collect and/or remit or pay.
(a) Service supplier or service user—failure to collect and/or remit tax. If any service supplier, or any service user subject to section 35-158 of this code, (hereinafter "service supplier" in this subsection) required to collect and/or remit the tax imposed by this code shall fail or refuse to collect said tax or to make, within the time provided in this code, any report and remittance of said tax or any portion City of Santa Ana
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thereof required by this code, the tax administrator shall make a determination of the tax due (tax, interest and penalties hereinafter "amount assessed" in this subsection). The tax administrator shall give a written notice of the amount assessed by personal service or by depositing it in the United States mail, addressed to the service supplier at the service supplier's last known address. The service supplier may, within ten (10) days after the serving or mailing of such notice, make application in writing to the tax administrator for a hearing on the amount assessed in accordance with section 35 -173 of this code.
If application by the service supplier for a hearing is not made within the time prescribed, the amount assessed shall become final and immediately due and payable. (b) Service user—failure to pay tax. Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owed by him or her from the amounts remitted to a service supplier required to collect the tax, or that a service user has failed to pay the amount of the tax to such service supplier for a period of two (2) or more billing periods, or whenever the tax administrator deems it in the best interest of the city, he or she may relieve such service supplier of the obligation to collect taxes due under this code from such service users for specified billing periods. The service supplier shall provide the city with the names, account numbers, billing and service addresses, and other required information of such non-paying service users together with the amounts owed under the provisions of this code and the specified billing periods for which they are owed. The tax administrator shall give written notice to the non-paying service user that he or she has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by personal service or by deposit of the notice in the United States mail, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have changed his address, to his last known address. If a service user fails to remit the tax to the tax administrator within fifteen (15) days from the date of the service of the notice, which shall be the date of mailing if service is not accomplished in person, a penalty of twenty-five (25) percent of the amount of the tax set forth in the notice shall be imposed, but not less than five dollars ($5.00), along with interest at the rate of three -quarters of one percent (¾) per month, or any fraction thereof, on the amount of the tax, exc lusive of penalties, from the date on which the remittance first became delinquent until paid. (Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-168. Records.
(a) It shall be the duty of every person required to collect and/or remit to the city any tax imposed by this code to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and remittance to the tax administrator, which records the tax administrator shall have the right to inspect at all reasonable times. The city may issue an administrative subpoena to compel a person to deliver, to the tax administrator, copies of all records deemed necessary by the tax administrator to establish compliance with this code, including the delivery of records in a common electronic format on readily available media if such records are kept el ectronically by the person in the usual and ordinary course of business. The tax administrator is authorized to execute a non-disclosure agreement approved by the city attorney to protect the confidentiality of customer information pursuant to state Revenue and Taxation Code Sections 7284.6 and 7284.7, as amended from time to time.
(b) The tax administrator may request from any person providing transportation or distribution services of gas or electricity to service users within the city, a list of the names, billing and service addresses, quantities of gas or electricity delivered, and other pertinent information, of its transportation customers within the city pursuant to section 6354(e) of the state Public Utilities Code, as amended from time to time.
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(c) If any person subject to record-keeping under this section unreasonably denies the tax administrator, or any designated agent of the tax administrator, access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, the tax administrator may impose a penalty of five hundred dollars ($500.00) on such person for each day following the initial date that the person refuses to provide such access. This penalty shall be in addition to any other penalty imposed by this code.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-169. Refunds.
(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the tax administrator under this code, it may be refunded as provided in this section. No refund will be considered by the tax administrator for a period in excess of twelve (12) months prior to the date application is received.
(b) The tax administrator may refund any tax that has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the tax administrator under this code, provided that no refund shall be paid under the provisions of this section unless the claimant or his or her guardian, conservator, executor or administrator has submitted a written claim to the tax administrator within twelve (12) months of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto. Nothing herein shall permit the filing of a claim on behalf of a class or group of taxpayers. (c) The submission of a written claim, which is acted upon by the city, shall be a prerequisite to a suit thereon as provided in accordance with state Government Code Section 935, as amended from time to time. The city shall act upon the refund claim within the time period set forth in state Government Code Section 912.4, as amended from time to time. If the city fails or refuses to act on a refund claim within the time prescribed by state Government Section 912.4, the claim shall be deemed to have been rejected by the city on the last day of the period within which the city was required to act upon the claim as provided in state Government Code Section 912.4.
(d) Notwithstanding subsection (b) above, a service supplier shall be entitled to take any over payment as a credit against an underpayment whenever such overpayment has been received by the city within the three (3) years next preceding a notice of tax deficiency or assessment by the tax administrator, or during any year for which the service supplier, at the request of the tax administrator, has executed a waiver of the defense of the statute of limitations with regard to any claim the city may have for a utility users tax. Under no circumstances shall an overpayment taken as a credit against an underpayment pursuant to this subsection qualify a service supplier for a refund to which it would not otherwise be entitled under the 12 -month written claim requirement of this section.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-170. Low income household exemption.
(a) The utility users tax imposed by this code shall not apply to any service user who uses telephone, electric, gas or water services in or upon any premises occupied by such service user, provided the combined gross income of all members of the household in which such user resided was less than the low income household exemption level for the calendar year prior to the fiscal year (July 1 through June 30) for which the exemption provided in this section is applied for. The low income household exemption level shall be established by resolution of the city council.
City of Santa Ana
RFP No. 23-165
The exemption granted by this section shall not eliminate the duty of the service supplier to collect taxes from such exempt individual or the duty of such exempt individual to pay such taxes to the service supplier, unless an exemption is applied for by the service user and granted in accordance with the provisions of subsection (b) hereof.
(b) Any service user exempt from the taxes imposed by this code because of the provisions of subsection (a) above may file an application with the tax administrator for an exemption. Such appl ication shall be made upon forms supplied by the tax administrator and shall recite facts under oath which qualify the applicant for an exemption. The tax administrator shall review all such applications and certify as exempt those applicants determined to qualify therefor notify all service suppliers affected that such exemption has been approved, stating the name of the applicant, the address to which such exempt service is being supplied, the account number, and such other information as may be necessary for the service supplier to remove the exempt service user from its tax billing procedure. Upon receipt of such notice, the service supplier shall not be required to continue to bill any further tax imposed by this code from such exempt service user until further notice by the tax administrator is given. The service supplier shall eliminate such exempt service user from its tax billing procedure upon receipt of such notice from the tax administrator, no later than sixty (60) days after receipt of such notice from the tax administrator. (c) All exemptions shall be renewed annually by the exempt service user during the renewal period of April 1 through April 30. The tax administrator shall notify all service suppliers by May 31 of exempt service users who did not renew during the annual renewal period. Each service supplier shall include the service users specified in such notice in its tax billing procedure no later than sixty (60) days after receipt of such notice from the tax administrator. Exemptions shall automatically terminate with any change in the service address or residence of the exempt individual; provided such individual may nevertheless apply for a new exemption with each change of address or residence. Any individual exempt from the tax shall notify the tax administrator within ten (10) days of any change in fact or circumstance which might disqualify said individual from receiving such exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemptions provided by this section when the basis for such exemption either does not exist or ceases.
(d) Notwithstanding any of the provisions of this subsection, however, any service supplier who determines by any means that a new or nonexempt service user is receiving service through a meter or connection exempt by virtue of an exemption issued to a previous user or exempt user of the same meter or connection, such service supplier shall immediately notify the tax administrator of such fact and the tax administrator shall conduct an investigation to ascertain whether or not the provisions of this section have been complied with and, where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.
(Ord. No. NS-2436, § 2, 8-4-00)
Sec. 35-171. Violation; misdemeanor; remedies—Cumulative. (a) Any person violating any of the provisions of this code shall be guilty of a misdemeanor and shall upon conviction be punishable thereafter as provided in section 1-8 of the Santa Ana Municipal Code. (b) The conviction and fine or imprisonment of any person for violation of this code shall not relieve such person from paying the utility users tax together with any penalty or interest amount due under the terms of this code, nor shall the payment of any utility users tax, or any penalty, or any interest amount due prevent a civil action or criminal prosecution for the violation of any of the provisions of this code. All remedies prescribed hereunder shall be cumulative and the use of one (1) or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. (Ord. No. NS-2436, § 2, 8-4-00)
City of Santa Ana
RFP No. 23-165