Upland City Council
August 3, 2026

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"The City of Gracious Living"
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Bill Velto,Mayor
Sharman Maust, Mayor Pro Tem• District 1 Michael Blay,City Manager James Breitling,Councilmember-District 2 Stephen P. Deitsch, City Attorney Carlos A. Garcia,Councilmember -District 3 Keri Johnson, City Clerk Rudy Zuniga, Councilmember- District 4
Monday, August 3, 2026
5:00 p.m.

SPECIAL MEETING
Notice is hereby given that Mayor Bill Velto of the Upland City Council, pursuant to Government Code Section 54956, does hereby call a Special Meeting of the Upland City Council Council Chamber
City Hall, 460 N. Euclid Avenue
City of Upland Mission Statement
The City of Upland is committed to delivering superior services that meet community needs with transparency and integrity.

City of Upland Vision Statement
Upland is a safe community with historic character where residents enjoy a high quality of life.

Members of the public may participate in the meeting by attending in-person from the Council Chamber. The public may view or listen to the meeting live at:

1. Livestream on the City website

2. Spectrum Cable TV Channel 3, or Frontier Cable TV Channel 26

3. Youtube

4. Zoom webinar by visiting
https://uplandca.zoom.us/j/83099016881?pwd=gwFCH GZvWQTbRj9xWV5RTIXVgeY8Pv.1 Passcode: 820453 or by dialing 1-669-444-9171 Webinar ID: 83099016881 Passcode: 820453 Press *9 on your phone to "raise your hand"
Public comment is accepted in person in the Council Chamber or via Zoom webinar Pages

1. CALL TO ORDER AND ROLL CALL

2. ORAL COMMUNICATIONS
Pursuant to Government Code Section 54954.2, any member of the public may address any item listed on the agenda. Anyone wishing to address the legislative body should submit a speaker card to the City Clerk at or prior to speaking. Individuals wishing to provide comments remotely should follow the instructions provided on the agenda for remote participation. Speakers shall keep their comments to no more than three (3) minutes.

CAMPAIGN CONTRIBUTION DISCLOSURE: Pursuant Gov. Code § 84308, any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $500 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made.

3. AGENDA ITEMS
a. CONSIDER ADOPTING RESOLUTIONS PLACING A BUSINESS LICENSE 3

REFORM MEASURE ON THE NOVEMBER BALLOT
CEQA: Not a Project.

Recommended Action:

Adopt a Resolution calling for the placement of a Business License Tax Measure known as the "Upland business license reform measure" on the November 3, 2026 General Municipal Election Ballot for submission to the qualified voters, adopt a Resolution requesting the Board of Supervisors of the County of San Bernardino to consolidate a General Municipal Election to be held on November 3, 2026 with the Statewide General Election to be held on that date pursuant to §10403 of the Elections Code, and adopt a Resolution providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a city measure to be submitted at the November 3, 2026 General Municipal Election. (Staff Person: Stephen Parker)

4. ADJOURNMENT
The next regularly scheduled City Council meeting is Monday, August 10, 2026.

NOTE: If you challenge the public hearing(s) or the related environmental determinations in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Upland, at, or prior to, the public hearing.

All Agenda items and back-up materials are available for public review at the Upland Public Library, at 450 North Euclid Avenue, the City Clerk's Office at 460 North Euclid Avenue and the City website at www.uplandca.gov .

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, 909-931-4120.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II] To access written transcription during the meeting, please click this link:
https://attend.wordly.ai/join/LVGO-0906 . Then choose language and click attend to read the transcript on your device.

On July 30, 2026 a true and correct copy of this agenda was posted on the bulletin boards at 450 N. Euclid Avenue (Upland Public Library) and 460 N. Euclid Avenue (Upland City Hall) and the City website at www.uplandca.gov

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"The City of Gracious Living"
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DATE: August 3,2026
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY,CITY MANAGER
PREPARED BY:STEPHEN PARKER,CPA,ASSISTANT CITY MANAGER
SUBJECT: CONSIDER ADOPTING RESOLUTIONS PLACING A BUSINESS LICENSE REFORM

MEASURE ON THE NOVEMBER BALLOT
RECOMMENDED ACTION:

It is recommended that the City Council adopt a Resolution calling for the placement of a Business License Tax Measure known as the "Upland business license reform measure" on the November 3, 2026 General Municipal Election Ballot for submission to the qualified voters,adopt a Resolution requesting the Board of Supervisors of the County of San Bernardino to consolidate a General Municipal Election to be held on November 3, 2026 with the Statewide General Election to be held on that date pursuant to §10403 of the Elections Code,and adopt a Resolution providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a city measure to be submitted at the November 3,2026 General Municipal Election.

GOAL STATEMENT
The proposed action supports the City's goal of being fiscally responsible.

BACKGROUND
In researching the Upland Municipal Code, it is unclear how long the City has had a business license tax as records do not identify an established date. However, on June 26, 1978, on the heels of the passage of Proposition 13, the City Council passed urgency Ordinance No. 1171 increasing the business license tax by 50%.

The most recent modification to the business license tax occurred December 20, 1994, over 31 years ago, when the City Council passed Ordinance No. 1614.

ISSUES AND ANALYSIS
Upland's business license tax structure has not been modified in more than 31 years, since 1994. The outdated structure no longer matches the current mix of businesses in the City,and results in smaller businesses currently paying a higher rate(percentage of business license taxes to gross receipts)than the largest businesses—in some cases,paying a rate over 100 times higher.

If approved by voters,the business license tax reform measure would reduce taxes for most small businesses to help create economic growth and local job creation. It would also ensure that the largest businesses contribute a greater share towards essential city services than they presently do.

An update to the business license tax structure would also provide the City with additional locally controlled funding to address community priorities and maintain essential services. The proposed measure also includes a clear system of accountability,requiring annual independent audits and public disclosure of how all funds are spent.

Therefore, staff are recommending that the City Council place a reform measure ("Measure")on the November 2026 ballot to allow voters to decide this important community issue.

Development of the Measure
Over the past several weeks, the City received input from small business owners through a series of City Manager Small Business Roundtable meetings, as well as from other business stakeholders and affected constituencies. This input was valuable and was used in the development of the proposed measure.

Maintaining Upland's Quality of Life
In a community survey conducted earlier this year, over two-thirds of respondents gave positive ratings to Upland's quality of life.The City is working hard to maintain the essential city services our community relies on,but the job is getting more difficult.

If approved by voters, this measure — in addition to updating our business license structure — would provide $3.3 million annually in locally controlled funding to maintain Upland's quality of life.All funds generated by the measure would stay local and be reinvested back into the community.By law,this local funding cannot be taken by the State or County.

The City of Upland has$241 million in unfunded street maintenance and sidewalk repairs that need to be completed.

Further,the City maintains 192 miles of streets, 343 miles of sidewalks,and 13 parks and playfields. The longer we wait to fix our streets,infrastructure,and facilities,the more expensive it will become.This measure could help keep these in good condition.

Community priorities which this measure could help address,include:
• Fixing streets and potholes
• Keeping streets,infrastructure,parks,and community facilities safe,clean,and well-maintained • Cleaning up piles of trash and litter in public areas • Repairing or replacing aging storm drains and infrastructure • Maintaining quick 911 emergency response
The main revisions proposed by the Measure are:
1) Increasing the initial business license minimum tax from$54 to$75; 2) Increasing the annual gross receipts an initial tax would cover from$20,000 to$100,000; 3) Raising the cap on business license taxes paid from$864 to$28,000,with both the license minimum and the cap being subject to an annual Consumer Price Index increase; 4) Streamlining the municipal code by removing"one-offs"like taxes for the number of employees,exclusions for alcohol sales,references to outdated professions like chirothesiast,lapidary and oculist, and callouts for circuses,public utilities,massage technicians,arcade games,dancing clubs,canvassers and taxicabs; 5) Establishing a business license tax rate based on gross receipts(after the first$100,000)by business category as follows:

Business Category Tax Rate in Year 1 (2027) Tax Rate in Year 2(2028) Retail/General Commercial 0.060%of gross annual receipts 0.065%of gross annual receipts Contractor 0.100%of gross annual receipts 0.150%of gross annual receipts Rental,Commercial or 0.125%of gross annual receipts 0.200%of gross annual receipts Residential
General Service 0.090%of gross annual receipts 0.125%of gross annual receipts (nonprofessional or non-
semiprofessional) (e.g.hair and
nail salons)
Professional or 0.090%of gross annual receipts 0.125%of gross annual receipts Semiprofessional Service
6) Adding a$50 per unit tax for self-storage facilities; 7) Ensuring that the Parking and Business Improvement District (PBIA) businesses will see no compounded increase to their PBIA assessments by continuing to tie assessments to the rate that is currently in place; 8) Giving businesses time to plan for increased budgets by phasing in the rate increase over 2 years.

The City engaged HdL to evaluate the effects of an update to the business license tax.

Business Size Under$500,000 $500,000-$3 million Over$3 million Total Number of Businesses 4,975 816 202 5,993
Current BL Tax Paid $576,446 $456,222 $155,319 $1,187,987 Estimated BL Tax With Measure $634,888 $1,009,825 $1,701,070 $3,345,783 Businesses with Decrease 2,746(55.2%) 152(18.6%) 0(0.0%) 2,898(48.4%) Current Percent of Tax Paid 48.5% 38.4% 13.1% 100% Estimated Percent With Measure 19.0% 30.2% 50.8% 100% From the above chart you can see that once fully phased in,with the proposed Measure increasing the initial business license tax rate but increasing the gross annual receipts applicable to the initial tax by a multiple of 5, over half of small businesses(defined as less than$500,000 of gross receipts)are anticipated to see a decrease. Over 48%of all businesses are projected to see a decrease in their business license tax with the proposed Measure. It is estimated that almost 19% of medium-sized businesses (between $500,000 and $3 million in gross annual receipts) will see a tax decrease with the proposed Measure.

Large businesses(over$3 million in gross receipts)are currently paying approximately 13%of business license taxes the City receives - less than medium businesses or small businesses. With the proposed Measure, large businesses would pay a greater share of the overall business license tax,with 51%of the taxes paid coming from that group.

The placement of a business license tax measure on an election ballot requires a 2/3 affirmative vote of the City Council and requires a resolution of the Council be adopted prior to August 7,2026, for a measure to appear on the November 3,2026,ballot. Majority voter approval will be required to pass the Measure.

Additional business license tax revenue would have a positive impact on the City's funding to repair streets and roads, keep streets, infrastructure, parks and community facilities safe, clean and well-maintained, repair or replace aging storm drains and infrastructure, maintain 9-1-1 emergency response times, repair potholes, and retain local small businesses and jobs.

ENVIRONMENTAL DETERMINATION
The proposed action is not subject to the California Environmental Quality Act(CEQA). Section 15378 of the CEQA Guidelines defines a project subject to CEQA. The proposed action is not included within the definition of a"project" and thus is exempt.

FISCAL IMPACTS
Based on prior election costs,a ballot measure on the November 3,2026 General Municipal Election is estimated to cost$25,000 and is included in the City Clerk's FY 26/27 operating budget.As a general tax,the new revenue would be deposited in the General Fund and considered general tax revenue. The proceeds would be audited as part of the City's annual audit along with the rest of the City's funds. The business license tax is estimated to produce approximately$3.3 million annually,an addition of approximately$2.1 million.

ALTERNATIVES
Provide alternative direction to staff.

CEQA:Not a Project.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UPLAND, CALIFORNIA CALLING FOR THE PLACEMENT

OF A GENERAL BUSINESS LICENSE TAX MEASURE
ENTITLED THE "UPLAND BUSINESS LICENSE REFORM
MEASURE" ON THE NOVEMBER 3, 2026 GENERAL

MUNICIPAL ELECTION BALLOT FOR THE SUBMISSION

TO THE QUALIFIED VOTERS OF A PROPOSED

ORDINANCE AMENDING VARIOUS SECTIONS OF
CHAPTER 5.04 OF THE CITY'S MUNICIPAL CODE AS IT
RELATES TO BUSINESS LICENSE TAXES.

WHEREAS, Upland's existing business license structure was last updated 31 years ago in 1994, and results in smaller business paying a higher rate than larger businesses; and
WHEREAS, this business license tax reform measure reduces taxes for most small businesses to help create economic growth and local job creation; and WHEREAS, this reform also ensures that the largest businesses pay a greater share for core city services than they do under the existing structure; and WHEREAS, this measure will not raise taxes for residents, and applies only to businesses in Upland; and
WHEREAS, the City engaged small local business owners and business stakeholders in developing this measure; and
WHEREAS, the City of Upland has an estimated $241 million in unfunded street maintenance and sidewalk repairs that need to be completed, and also maintains 192 miles of streets, 343 miles of sidewalks, and 13 parks and playfields, and WHEREAS, the longer we wait to fix our streets, infrastructure, and facilities, the more expensive it will become; and this measure could help maintain the current condition; and
WHEREAS, the measure includes a clear system of accountability, requiring annual independent audits and public disclosure of how all funds are spent; and WHEREAS, this measure will provide $3.3 million annually that could be used to fix streets and potholes; keep public areas safe and clean, repair or replace aging storm drains and infrastructure; and maintain quick 911 emergency response; and WHEREAS, all revenues generated by the proposed measure would stay within the City of Upland and reinvested back into the community, and cannot be taken by the State or County; and
WHEREAS, pursuant to Chapter 5.04 of the Upland Municipal Code, the City

Resolution No.

currently imposes a business license tax on various businesses within the City based upon gross receipts, number of employees or a flat rate; and WHEREAS, the City Council desires to propose an amendment to various Sections of Chapter 5.04 of the Upland Municipal Code to change the rates of the License Tax to those set forth herein for the purpose of raising revenue to provide City services and additional local funding; and
WHEREAS, the proposed amendment to the License Tax ordinance has been designed to better align the City's tax rates with the current types and distribution of businesses located within the City; and
WHEREAS, pursuant to Section 9222 of the California Elections Code and Section 37101 of the California Government Code, the City Council has the authority to place a measure on the ballot regarding the imposition, extension or increase in a local business license tax to be considered by the voters at a Municipal Election; and WHEREAS, the business license tax is a locally controlled general tax, the revenue of which will be placed in the City's general fund and will be used to pay for important general City services; and
WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218, an amendment to the State Constitution which requires that all general taxes which are imposed, extended, or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and WHEREAS, the proposed amendments which adjust the rate of the License Tax constitute a tax "increase" subject to Proposition 218; and WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIII C, § 2(b)), the general rule is that any local election for the approval of an increase to a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government; and
WHEREAS, the next regularly scheduled general election at which City Council members are to be elected is November 3, 2026; and
WHEREAS, pursuant to Government Code section 53724 ("Proposition 62"), a two- thirds (2/3) vote of all members of the City Council is required to place the Measure on the November 3, 2026 ballot; and
WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval, collection and use of the business license tax are described and provided for in the ordinance/measure attached hereto as Exhibit"A" (the "Measure") and by this reference made an operative part hereof, in accordance with all applicable laws.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

Resolution No.

OF UPLAND AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and are hereby incorporated and made an operative part of this Resolution.

SECTION 2. Submission of Ballot Measure. Pursuant to Article XIIIC, section 2(b), California Elections Code section 9222, California Government Code section 53724, and any other applicable requirements of the laws of the State of California relating to the City, the City Council, by a two-thirds (2/3) vote of all members, hereby orders the Measure to be submitted to the voters of the City at the General Municipal Election to be held on Tuesday, November 3, 2026.

SECTION 3. Ballot Question. The City Council, pursuant to its right and authority, hereby orders that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 3, 2026, in addition to any other matters required by law, there shall be printed substantially the following ballot question:
"Upland Business License Reform Measure YES
To modernize City of Upland's 31-year-old business license tax, with no tax increase to residents, lowering taxes on most small businesses, and ensuring large businesses pay their fair share NO for general city services such as: fixing potholes/streets; repairing infrastructure; and 9-1-1 response, shall the measure with rates between 0.065% and 0.2% of gross receipts,
generating $3.3 million in local funds until ended by voters, and requiring independent audits, be adopted?"
SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk not later than the deadline for submittal of primary arguments for or against the Measure. The City Council directs that arguments for and against the measure may be filed in accordance with applicable law, and that neither City Council as a body or any individual member of Council is directed to file a written argument or any rebuttal argument for or against the measure.

Resolution No.

The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: "The above statement is an impartial analysis of Ordinance or Measure . If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at (909) 931-4120 and a copy will be mailed at no cost to you."
SECTION 6. Notice of the election is hereby given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide.A statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk.

SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, November 3, 2026, file with the Board of Supervisors and the County Clerk — Registrar of Voters of the County of San Bernardino, State of California, a certified copy of this Resolution.

SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk's office of the specific dates that the examination period will run.

SECTION 10. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, section 15378(b)(5).

SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.

SECTION 12. This Resolution shall become effective upon its adoption.

SECTION 13. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 3rd day of August, 2026.

Resolution No.

Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 3rd day of August, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk/Elections Official

Exhibit "A"
Business License Tax
[attached behind this page]

ORDINANCE NO.

AN ORDINANCE OF THE PEOPLE OF THE CITY OF UPLAND, CALIFORNIA, AMENDING VARIOUS SECTIONS OF CHAPTER 5.04 OF TITLE 5 OF THE

UPLAND MUNICIPAL CODE AS IT RELATES TO ADJUSTING THE RATES OF

BUSINESS LICENSE TAXES WITHIN THE CITY AND MAKING OTHER TECHNICAL UPDATES.

THE PEOPLE OF THE CITY OF UPLAND DO ORDAIN AS FOLLOWS:

SECTION 1. Subject to the approval of a majority of the voters of the City of Upland at the General Municipal Election so designated by the City Council in a separate resolution placing the proposal on the ballot for such election, the following sections of Chapter 5.04 of the Upland Municipal Code are hereby amended to read as follows:
"Title 5. Business Licenses and Regulations
Chapter 5.04. BUSINESS LICENSES GENERALLY
§ 5.04.010. License tax bureau created.

There is created a license tax bureau of the city and the office of license tax official of the city. The finance director or designee shall serve as license tax official; however, in no event shall the city manager be designated as license tax official. The license tax official shall be charged with the duty of carrying out the provisions of this title and the enforcement thereof.

The words "license official", "license collector" or "tax collector," as used elsewhere in the Upland Municipal Code, means license tax official, when such pertains to municipal licensing and taxing activities.
§ 5.04.020. Duties of license tax official.

The duties of the license tax official shall include, but not be limited to the following:

A. The license tax official shall prepare and issue all tax certificates mentioned herein, and collect the charges therefore, including delinquent business taxes and penalties.

B. The license tax official may require such confidential information from the applicant which will explain and describe the business in question, assisting in the administration of this title.

C. In no case shall any error made by the license tax official, or deputies, in preparing a tax certificate, stating the amount of the charge therefore or in determining the proper applicability of this title prejudice the collection by the city the amounts actually due under this title.

D. The license tax official shall keep such records and make such reports as the city council or city manager may demand.

§ 5.04.030. Bond of license tax official.

The license tax official shall furnish a bond for the faithful performance of his or her office, the penal sum of which shall be fixed by motion of the city council from time to time. § 5.04.040. License tax review
A. The position of license tax reviewer is created to expedite and relieve the city council of certain administrative problems pursuant to the interpretation and enforcement of this title.

B. License tax review shall be performed by the city manager's designee.

C. The license tax reviewer shall review and make a finding on such matters covered by the provisions of this title, which in the opinion of the license official require interpretation and action. Such matters shall include but not be limited to the following:
1 . Requests for tax certificate exemptions as provided for in this title;

2. Determination of branch establishments as provided for in this title;

3. Failure to file an application for, or a renewal of, a tax certificate as provided for in this title;

4. In any case, the license tax reviewer may desire to refer other such matters to the city council for determination, however no such determination by the license tax reviewer or city council shall in any way conflict with the provisions of this title. § 5.04.050. Revenue measure.

This title, and the ordinance adopting such, is enacted solely to raise revenue for municipal purposes, and is not intended for regulation unless otherwise stated. § 5.04.060. Substitute for other revenue ordinance.

Persons required to pay a business tax for conducting or carrying on any business under the provisions of this title shall not be relieved from the payment of any other tax, assessment or fee for the privilege of doing such business required under any other ordinance of the city as contained in the Upland Municipal Code and shall remain subject to the regulatory provisions of all such other ordinances and provisions of this code. § 5.04.070. Effect on past actions and obligations previously accrued.

Neither the adoption of the ordinance codified in this title nor its superseding of any portion of any other provision of the Upland Municipal Code shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in this title, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed, or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.

§ 5.04.080. Definitions
As used in this title:
"Apartment " means a building or buildings, or portion of a building, each of which is designed, built, rented, leased, let or hired out to be occupied or which is occupied as the home or residence living independently of each other and doing their cooking in such building or buildings.
"Business" means and includes professions, trades and occupations, and all and every kind of calling carried on for profit or livelihood.
"Conduct or carry on" means and includes the engaging in, carrying on or operating of any business, trade, art, profession, calling, employment, occupation, or any commercial, industrial or professional pursuit or vocation. "Contractor" means every person, firm or corporation conducting, managing or carrying on the business of contractor, subcontractor or builder; or engaging in the construction or repair of any buildings; or engaged in any engineering, construction, or operating whatever, or advertising as such, or representing themselves as such, and regularly employing help for building construction, sewer construction, plumbing construction or general construction. Examples include but are not limited to construction, plumbing, HVAC, and other contractors required to be licensed by the State Contractors Licensing Board.
"Fixed place of business" means a location in the city at which is kept a substantial stock of merchandise or equipment and/or occupied with a competent person in attendance in connection with business of like nature or character and upon which city and county taxes are assessed and paid.
"General Service" means any services, as that term is ordinarily and commonly used and understood, wherein individuals are engaged in the business of offering to the public services for compensation, and which is not a professional or semiprofessional service/calling or not otherwise specifically covered under any other part, chapter or section of this chapter. Examples include but are not limited to hair stylists, gardeners, nail salons, etc.
"Gross receipts" means and includes, whether designated as sales price, royalty, rent, slotting fee, commission, dividend, or other designation, the total amount of the sale price of all sales and the total amount charged or received for the performance of any act or service, of whatever nature it may be, for which act or service a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of material, goods, wares or merchandise. Included in gross receipts shall be all receipts, cash, credits, and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.

Where the gross receipts are less than the cost of maintaining the operations of the Licensee, then the Licensee shall be deemed to produce gross receipts in an amount a��s1t4 of 76
at least equal to the cost of operations plus 10% of the costs of operations. The

of operations" means the cost of maintaining the operations of the business and includes, but is not limited to, rent, utilities, depreciation, salaries, wages, fixed charges, and other expenses.

Excluded from gross receipts shall be:
1 . Cash discounts allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

4. Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit;

5. Amounts collected for others where the business is acting as agent or trustee to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the license official with the names and addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustee;

6. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;

7. For all businesses operating under Regulation 1599 of the California Tax and Fee Administration, the amount of sales exempt from sales and use taxation under Regulation 1599.
"Hotel, motel or roominghouse" means any lodginghouse, motel, hotel, rooming house, or public or private club containing guest rooms or units, and which is occupied or is intended or designed for transient occupancy by guests, whether rent is paid in money, goods, labor or otherwise and which is maintained, advertised or held out to the public as a place where sleeping or rooming accommodations are furnished to the whole or any part of the public whether with or without meals.
"Person" means and includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts business or common law trusts, societies and individuals transacting and carrying on any business in the city, other than as an employee.
"Professional or semiprofessional service/calling" means any service, as that term is ordinarily and commonly used and understood wherein individuals are engaged in the business of offering to the public professional or semiprofessional services for compensation, and not specifically covered under any other part, chapter or section of this chapter, and shall include those professions generally requiring governmental certification or a professional degree. These shall include, but not be limited to the following: accountant, advertising agent (except outdoor advertising), appraiser, architect, artist, attorney-at-law, biologist, certified public accountant, chemist, chiropractor, collection agent, consulting or design engineer, credit counselor, credit rater, dentist, designer, illustrator, doctor of medicine, draftsman, engraver, eng a-5 of 76

civil, chemical, structural or hydraulic—entomologist, geologist, insurance claims adjuster, laboratory, landscape architect, lapidary, lithographer, massage therapist/technician, mechanical engineer, oculist, optometrist, orthodontist, osteopathic physician, personnel consultant, physician, real estate agent or broker— including salespersons—surgeon, surveyor and veterinarian.
"Rental, commercial or residential" means the business of leasing, renting, letting or otherwise hiring out for rent any apartment, single-family or multiple-family dwelling unit in the City as the home or residence for a tenant, or the business of leasing, renting, letting or otherwise hiring out for rent any real property within the City that is used for commercial, industrial, institutional or other non-residential purposes within the City.

Examples include but are not limited to commercial leasing, residential rental, parcel leasing, and short-term rentals, hotels, motels, and roominghouses, etc. "Retail/General Commercial" means any establishment or business that conducts retail (the sale of goods to ultimate consumers, usually in small quantities), or wholesale (the sale of goods in quantity, as to retailers or jobbers, for resale), or restaurant (an establishment where meals, prepared food, and/or beverages are served to customers).

Manufacturers and processors are also included in this classification, including every person conducting or carrying on a business consisting of manufacturing, packing, or processing any goods, wares, merchandise or commodities at a fixed place of business within the City or conducting or carrying on a business of cold storage or refrigeration.

Warehouses are also included in this classification, including establishments primarily engaged in operating merchandise warehousing and storage facilities. Examples include but are not limited to: retailers, wholesalers, hotels, restaurants, manufacturers, and public utilities.
"Solicitors, canvassers and peddlers" as used herein and for the purposes of this title, are defined to be and to include any person not having a fixed place of business in the city, who for him or herself, or as agent, or representative for or of another, goes from place to place, and from house to house, in the city offering to sell intangibles, such as bonds or stocks, or oil or mining shares or units, or articles, goods, wares or merchandise, or soliciting orders for future delivery, or taking orders, or subscriptions, or selling or disposing of any such articles or services inclusive of newspapers, magazines, periodicals, books and all other publications, and whether collecting advance payments or not, and inclusive of all persons who thus go from place to place, and from house to house within the city, in any like or analogous activities, including those who solicit funds or articles for charitable purposes, and inclusive of any and all such persons who may or may not engage in any actual or purported interstate commerce. The terms solicitors, canvassers or peddlers shall not apply to sidewalk vendors operating in compliance with Chapter 5.76, or to commercial salesmen, agents and the like who sell or take orders for goods at wholesale.
§ 5.04.090. Imposition of taxes-License required-Compliance with chapter A. There are imposed upon the businesses, trades, professions, callings and occupations specified in this title business taxes in the amounts hereinafter prescribed. It is unlawful for any person to transact and carry on any business trade, profession, calling or occupation in the city without first having proti9rd1 of 76

license from the city so to do or without complying with any and all applicable provisions of this title and the Upland Municipal Code.

B. This section shall not be construed to require any person to pay the business tax prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state of California.

C. Persons not required to pay the business tax prior to doing business within the city because of conflict with applicable statutes of the United States or of the state of California shall not be liable for payment of the tax imposed by this title.

D. In any trade or profession where a state license is required, such license shall first be exhibited to the license tax official upon request before a city tax certificate will be issued. § 5.04.095. Penalty.

Any person violating any of the provisions of the herein title or knowingly or intentionally misrepresenting to any officer or employee of this city any material fact in paying the business tax provided for in this chapter shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished as provided in Section 1.16.010. All remedies prescribed herein shall be cumulative, and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this code. § 5.04.100. Tax certificate a receipt, not a permit.

The tax certificate issued pursuant to the provisions of this title constitutes a receipt for the business tax paid and shall have no other legal effect. A tax certificate is a requirement, not a permit, to conduct, manage or carry on any business activity within the city. § 5.04.110. Branch establishments.

A separate tax certificate must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location; provided that warehouses and distribution plants or lots used in connection with, and incidental to a business that has a tax certificate under the provisions of this title shall not be deemed to be separate places of business or branch establishments. Each establishment must pay the business tax for each location. § 5.04.120. Subleases
Regardless of business type, functional, or operational usage, all business owners are required to obtain a separate tax certificate for each business or entity. This includes any lessee or sub- lessee of the business and/or property owner.
§ 5.04.130. Interstate commerce-Filing statement.

A. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any business tax provided for in this title upon the ground that such license casts a burden upon his or her right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States Congress respecting interstate commerce, shall file a verified statement with the license taxFtgjeiap of 76

disclosing the interstate or other character of his or her business entitling such exemption. Such statement shall contain:
1 . The name and location of the company or firm for which the orders are to be solicited or secured;

2. The name of the nearest local or state manager, if any, and his or her address;

3. The kind of goods, wares or merchandise to be delivered;

4. The place from which the same are to be shipped or forwarded;

5. The method of solicitation or taking orders;

6. The location of any warehouse, factory or plant within the state of California;

7. The method of delivery;

8. The name and location of the residence of the applicant;

9. Any other facts necessary to establish such claim of exemption.

B. A copy of the order blank, contract form or other papers used by such person in taking orders shall be attached to the affidavit for the information of the license tax official. § 5.04.140. Apportionment.

A. None of the business taxes provided for by this title shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the state.

B. If the holder of or applicant for a tax certificate (the taxable entity) believes that the business tax places an undue burden upon interstate commerce or would be violative of such constitutional clauses, the taxable entity may apply to the license tax official for an adjustment of the tax (the apportionment application). The taxable entity may make an apportionment application within six months after payment of the prescribed business tax. The taxable entity shall, by sworn statement and supporting testimony, show its method of business, its cost of operations for all locations in the City, and such other information as the license tax official may deem necessary to determine the extent, if any, of such undue burden on interstate commerce or other violation of constitutional protection.

C. The license tax official shall then conduct an investigation, which may include but is not limited to inspecting the taxable entity's books and records and other tax filings, and, after having first obtained the written approval of the city attorney, shall fix as the business tax for the taxable entity, an amount that is reasonable and nondiscriminatory, or if the business tax has already been paid, shall order a refund of the amount over and above the business tax so fixed.

D. In fixing the amount of the business tax, the license tax official shall take the cost of operations for the locations in the City as the minimum amount owed in tax (absent extraordinary evidence to the contrary).

E. The license tax official shall, upon a proper showing contained in the verified statement, issue a tax certificate to such person claiming apportionment under this sectionNioI4 of 76

payment to the city of the full business tax required by this title.

F. The license tax official, after giving notice and a reasonable opportunity for hearing to a tax certificate holder, may revoke any apportionment granted pursuant to the provisions of this section upon information that the tax certificate holder is not entitled to the apportionment as provided herein.
§ 5.04.150. Public sale exempted
No business tax license shall be required for the selling of goods at public sale, such goods belonging to the United States of America or to the state of California, or for sale of property by virtue of any process issued by any state or federal court, or for the sale of any property of an estate by the legally appointed guardian thereof. § 5.04.160. Veterans
A. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license provided for in this title upon the ground that he or she is an honorably discharged or released member of the armed forces of the United States who is physically unable to obtain a livelihood by manual labor and who shall be a qualified elector of the state of California, as provided by the laws of this state, shall, prior to being issued a free license, and in addition to any other information required by this title, also file with the license official a certificate of a regularly licensed and practicing physician dated within a month of the application, to the effect that the applicant is physically unable to obtain a livelihood by manual labor, and stating the nature of the incapacitation.

B. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any business tax provided for in this title upon the ground that he or she is an honorably discharged or released member of any branch of the United States military, shall not be changed the business license application fee, and will also receive a $100,000.00 credit towards the calculation of the business tax based on gross receipts, or a $108.00 credit towards the calculation of the business tax based on Sections 5.04.410, if the following condition is met:

1. Proof that he or she was honorably discharged or released member of the military.

This applies to all ownership types and business license types. The city is unable to waive any state fees, such as the Certified Access Specialist (CASp) fee. § 5.04.170. Exemptions.

The following businesses are exempt from the business tax imposed by this chapter:

A. Any business exempt from the tax by the laws of the United States or the State of California. The CASp fee is a state requirement and cannot be waived by the city.

B. Upon approval of the license tax official, any person that has been issued a permit to operate at a special event and that does not have a fixed place of business in the city and is not otherwise engaged in business within the city, shall be exempt from the provisions of this title.
§ 5.04.180. Filing application-Contents of license.

Every person required to have a license under the provisions of this title shall make application for the same to the license tax official of the city, and upon the payment of the prescribed business tax and submission of all other required documents, the license tax official shall issue to such person a tax certificate which shall contain:

A. The name of the person to whom the tax certificate is issued; B. The name of the business to be taxed;
C. The place where such business is to be transacted and carried on; D. The date of the expiration of such tax certificate; E. Such other information as may be necessary for the enforcement of the provisions of this title.
§5.04.190. Affidavit for first tax certificate.

A. Upon a person making application for the first tax certificate to be issued hereunder or for a newly established business, and in all cases where the amount of business tax to be paid is measured by gross receipts, such person shall furnish to the license tax official for guidance in ascertaining the amount of business tax to be paid by the applicant, a written statement, upon a form provided by the license tax official, sworn to before a person authorized to administer oaths, or sworn to under penalty of perjury, setting forth such information as may be therein required and may be necessary to determine the amount of the business tax to be paid by the applicant.

B. When a taxpayer applies for a business tax certificate, they must pay based on their estimated gross receipts from the start date of business in the City through the remainder of the current license period. Then, when the taxpayer applies for their first renewal, they must take the following steps in calculating its tax.

1. True-up. The taxpayer should take the actual gross receipts for that period and subtract the estimated gross receipts reported. If the remainder is positive, the taxpayer must report the additional amount of the tax on their first renewal. If the remainder is negative, then the taxpayer will receive a credit equal to the amount of the remainder multiplied by the applicable rate, which credit will first be applied to the amount owed for their first renewal period and then, if there is any amount of the credit remaining, the remaining credit will be either refunded to the taxpayer or remain on the account for future use, per the instructions of the taxpayer. If the amount is zero, the true-up is zero and no further action is necessary.

2. Annualized estimate. The taxpayer will take the actual gross receipts for the initial period and divide it by the number of days in that actual period. That gives the daily estimated gross receipts. The taxpayer will multiply that by 365 days and use that as the gross receipts for the first year's renewal.

In the second-year renewal and other subsequent renewals, the taxpayer will report the gross receipts of the preceding year of operation as the gross receipts for the upcoming license period.

C. The license tax official shall not issue to any such person another tax certificate for the same or any other business, until such person shall have furnished to the license tax official the written statement and paid the business tax as herein required. §5.04.200. Affidavit for renewal of tax certificate.

In all cases, the applicant for the renewal of a tax certificate shall submit to the license tax official for guidance in ascertaining the amount of the business tax to be paid by the applicant, a written statement, upon a form to be provided by the license tax official, written under penalty of perjury, or sworn to before a person authorized to administer oaths, setting forth such information concerning the applicant's business during the preceding year as may be required by the license tax official to enable him or her to ascertain the amount of business tax to be paid by the applicant pursuant to the provisions of this title. §5.04.210. Statements not conclusive; confidential information.

A. No statements shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the license tax official, deputies, or authorized employees of the city, who are authorized to examine, audit, and inspect such books and records of any tax certificate holders, applicants for a tax certificate, as may be necessary in their judgment to verify or ascertain the amount of business tax due.

B. All tax certificate holders, applicants for tax certificates, and persons engaged in business in the city are required to permit an examination of such books and records for the purposes aforesaid.

C. The information furnished or secured pursuant to this section or Sections 5.04.190 or

5.04.200 of this title shall be confidential. Any unauthorized disclosure or use of such information by any officer or employee of the city shall constitute a misdemeanor, and such officer or employee shall be subject to the penalty provisions of the Upland Municipal Code, in addition to any other penalties provided by law. § 5.04.220. Failure to file statement or corrected statement- Determination of amount of business tax.

A. If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the license tax official, such person fails to file a corrected statement, the license tax official may determine the amount of business tax due from such person on the basis of the facts contained in the statement, any information in his or her possession and/or such information as he or she obtains.

B. If such a determination is made, the license tax official shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States post office at Upland, California, postage prepaid, addressed to the person so assessed at his or her last known address.
§ 5.04.230. Appeal.

A. A final determination of the license tax official can be appealed to the city manager or designee by filing a written notice of appeal with the license tax reviewer within 15 days of service of the notice of the final determination being appealed.

B. Only a tax certificate holder, or their representative, who can file an appeal under this section.

C. If a timely appeal is filed, the city manager, or designee, must set a hearing within 60 days of the filing of the appeal, which may be extended by the city manager for an additional 60 days. Notice of the hearing must be served on the appellant either personally or by U.S. mail to the most recent address for the challenger in the license tax official's records.

D. At the hearing the appellant and the license tax official may present evidence and argument regarding the decision being appealed to show why the decision is correct or incorrect and to show what it should be. Within 60 days after the close of the hearing, which the city manager may extend for an additional 60 days, the city manager must serve a written decision, setting forth the resolution of the appeal. The decision must be served on the appellant either personally or by U.S. mail to the most recent address for the appellant in the license tax official's records. Service is effective upon deposit of the decision in the U.S. Mail.

E. A decision of the city manager, or the city manager's designee, served under subsection D of this section is subject to judicial review under sections 1094.5 and 1094.6 of the Code of Civil Procedure with a writ petition filed in the appropriate court within 90 days of the service of the written decision. Any tax, penalties, or interest determined by the decision to be owed to the city by the appellant must be paid to the city as a precondition to filing a writ petition challenging the decision.
§ 5.04.240. Fictitious name-Affidavit to be filed.

No tax certificate shall be issued to any person, firm or corporation or partnership conducting or carrying on any business, show, exhibition, game, occupation, profession or enterprise under a fictitious name, unless an affidavit be filed in the office of the license tax official of the city, showing the true name of the owners of such business, exhibition, game, occupation, profession or enterprise; provided, however, that such tax certificate may be issued in the true name or names of the owners of business, show, exhibition or game without the filing of such affidavit.
§ 5.04.250. Additional power of license tax official as to sworn statements and compromising claims.

In addition to all other power conferred upon him or her, the license tax official shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 30 days, and in such case to waive any penalty that would otherwise have accrued; and shall have the further power, with the consent of the city manager, to compromise any claim as to amount of business tax due.
§ 5.04.260. No tax certificate transferable-Amended tax certificate for changed location.

No tax certificate issued pursuant to this title shall be transferable. § 5.04.265. New business tax certificate - existing business.

A. Business owners who have obtained a tax certificate for their existing business in the City are not required to obtain a new tax certificate that would result in a new tax number under the following circumstances:

1. The physical location of the business has changed within the City. This does not exempt the business owner from obtaining any applicable new zoning approvals, certificate of occupancy or the certificate of inspection.

B. Business owners who have obtained a tax certificate for their existing business in the City of Upland are required to obtain a new tax certificate that will result in a new business license tax number being issued under the following circumstances:

1. The ownership has changed from one person to another person.

2. The business is acquiring an additional location within the City.

3. The nature of the business has changed resulting in the change to the license description and SIC code, and/or FEIN number.

4. The business status is closed by the license tax official, business owner, business applicant, city manager or designee.

5. Reinstatement following revocation under Section 05.04.280. § 5.04.270. Duplicate tax certificate.

A duplicate tax certificate may be issued by the license tax official to replace any license previously issued hereunder which has been lost or destroyed upon the tax certificate holder filing statement of such fact.
§ 5.04.280. Revocation of tax certificate.

A. Any tax certificate issued under the provisions of this title may be revoked by the license tax official upon the failure on the part of the licensee to pay the charges imposed by this title or to file reports as required by this title within 60 days after such charges or reports become delinquent.

B. Whenever the license tax official receives sufficient evidence, in the license tax official's sole discretion, that the tax certificate holder, or any person hired, retained, controlled, or employed by the tax certificate holder, has violated Section 8.44.120 of the Upland Municipal Code or any provision of state law related to the purchase and sale of detached catalytic converters (including, but not limited to, SB 1087 or AB 1740), the license official shall have the authority, pursuant to this section, to summarily suspend or terminate any tax certificate held by the tax certificate holder issued under the provisions of this title and order in writing to the tax certificate holder that they immediately cease and desist any further activity under any such tax certificate for such period of time as set forth in this section.

C. For a first offense under subsection B above, the remedy shall be a suspension of any such tax certificate for a period not to exceed 90 days.

D. For a second offense under subsection B above, the remedy shall be a suspension of any such tax certificate for a period not to exceed 180 days.

E. For a third or subsequent offense under subsection B above, the remedy shall be permanent revocation of any such tax certificate.

F. Any person who continues to engage in any activity for which a tax certificate is required and which such tax certificate is currently suspended or revoked pursuant to this section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $1,000.00, or by imprisonment in jail for a period not exceeding six months, or by both such fine and imprisonment. Each and everfi tS A of 76

which any person continues to engage in such activity shall constitute a separate offense.

G. The order issued under subsection A of this section shall also notify the tax certificate holder that it shall have seven working days from the date of such order to request a hearing to determine whether such tax certificate shall be suspended or revoked. Failure to request, in writing, such hearing before the license tax official within the seven-day period shall result in the suspension or revocation of the tax certificate pursuant to the terms of this section.

H. Upon such request by the tax certificate holder whose tax certificate has been suspended or revoked under this section, for a hearing to determine whether such license shall be suspended or revoked, the license tax official shall provide such hearing within 15 calendar days after receipt by the license tax official of such request, at which hearing the tax certificate holder may appear before the license tax official for the purpose of presenting evidence why the tax certificate should not be suspended or revoked. No tax certificate shall be suspended or revoked under this section unless notice of the time and place of such hearing shall have first been given at least five calendar days before the hearing thereof by depositing in the United States mail a notice directed to the tax certificate holder at the address given in the application. The notice shall set forth a summary of the grounds advanced as the basis of the suspension or revocation.

I. Any tax certificate holder whose tax certificate is suspended or revoked under this section shall not engage in any activity for which such tax certificate is required until either authorized to do so by the license tax official or the city manager or its designee, on appeal, determines to overrule the decision of the license tax official.

J. The remedies provided herein are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by law. § 5.04.290. Posting and keeping tax certificates.

All tax certificate holders must be kept and posted in the following manner and shall be exhibited to the license tax official upon request:

A. Any tax certificate holder transacting and carrying on business at a fixed place of business in the city shall keep the tax certificate posted in a conspicuous place upon the premises where such business is carried on.

B. Any tax certificate holder transacting and carrying on business but not operating at a fixed place of business in the city shall keep the tax certificate upon his or her person or, if the business tax is based on a vehicle, upon such vehicle, at all times while transacting business within the city.

C. All businesses using vehicles in connection therewith, shall be furnished an annual vehicle tag or sticker for identification purposes.
§ 5.04.300. Business tax-How and when payable.

A. Unless otherwise specifically provided, all business taxes for tax certificates issued between January 1st and June 30th under the provisions of this title shall be due and payable in advance on the first day of January each year; all business taxes for licenses issued between July 1st and December 31st under the provisions of this title shall be due and payable in advance on the first day of July each year. Page 24 of 76

B. In all cases, the applicant shall, upon filing his or her application, pay the prescribed business tax in advance.

C. Unless otherwise provided for in this title, where any person who is engaged in business ceases business and surrenders his or her tax certificate after having exercised the privilege granted pursuant to this title, such person shall not be entitled to a refund for any business tax paid in advance or any portion thereof. § 5.04.305 Audits
A. The license tax official may conduct an audit of any tax certificate holder to ensure proper compliance with the requirements of this chapter.

B. To initiate an audit, the license tax official must provide written notice to the tax certificate holder that is the subject of the audit by serving the notice personally or by U.S. mail to the most recent address for the tax certificate holder in the license tax official's records.

The notice must state the period of time subject to the audit.

C. Notice of the initiation of an audit for a tax year must be served within three (3) years of the last day of the tax year to be audited.

D. Upon completion of an audit, the license tax official may make an initial determination of any taxes, penalties, and interest determined to be owed and not paid for the audit period.

If a tax certificate holder subject to audit is unable or unwilling to provide sufficient records to enable the license tax official to verify compliance with this chapter, the license tax official is authorized to make a reasonable estimate of the amount of tax due and the reasonable estimate shall be entitled to a rebuttable presumption of correctness. § 5.04.310. Penalties for failure to pay tax when due.

A. A penalty of 10 percent of the business tax due shall be added to the amount of such business tax payable by all new businesses operating in the city which fail to obtain a business license within 30 days of opening for business and all existing businesses failing to renew a tax certificate within 30 days of the due date set forth in Section 5.04.300. An additional penalty of 20 percent of the original business tax shall be added for each month or portion thereof, that such business tax remains unpaid. In no case, however, shall such penalty exceed 100 percent of the original business tax due.

B. Interest. In addition to the penalties imposed by this section, any business tax that remains unpaid after it becomes delinquent shall bear interest at the rate of one percent (1%) per month, or such other rate as the city council may establish by resolution, computed from the first day the business tax became delinquent until the date the business tax is paid in full. Interest shall not be subject to the maximum penalty limitation set forth above.

C. The city shall collect, in addition to the penalty due, any costs incurred by the necessity to collect any delinquent payment or pursuing the compliance of non-compliant businesses, including but not limited to collection costs, discovery fees, or filing suit for collection in the courts (or any combination of such costs).

§ 5.04.320. Enforcement of title.

A. It shall be the duty of the license tax official, and he or she is directed to enforce each and all of the provisions of this title. The chief of police shall render such assistance in the enforcement hereof as may from time to time be required by the license tax official or the city manager.

B. The license tax official in the exercise of the duties imposed upon him or her hereunder, and acting through his or her deputies or duly authorized assistants, may examine or cause to be examined all places of business in the city to ascertain whether the provisions of the title have been complied with.

C. The license tax official and each and all of his or her assistants and any police officer shall have the power and authority to enter, free of charge, and at any reasonable time, any place of business required to be licensed herein, and demand an exhibition of its tax certificate. Any person having such tax certificate theretofore issued, in his or her possession or under his or her control, who fails to exhibit the same on demand, shall be guilty of a misdemeanor and subject to the penalties provided for by the Upland Municipal Code.
§ 5.04.330. Business tax a debt.

The amount of any business tax and penalty imposed by the provisions of this title shall be deemed a debt to the city. An action may be commenced in the city in any court of competent jurisdiction, for the amount of any delinquent business tax and penalties. § 5.04.340. Remedies cumulative.

All remedies prescribed hereunder shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof.
§ 5.04.350. Business classifications schedule-Business taxes generally.

A. Every person who engages in any business, whether or not at a fixed place of business within the city, shall pay a business tax based upon a classification in one of the following sections.

B. The determination of the class of business in which an applicant for a tax certificate is deemed to be engaged under this section shall be a ministerial task of the license official.

C. If a tax certificate holder or applicant disagrees with the determination of the license tax official as to the class of business in which the tax certificate holder or applicant is engaged, the tax certificate holder or applicant may apply to the license tax official for reclassification. This application shall set forth with specificity the facts upon which it is based. Upon receipt of a reclassification application, the license tax official shall investigate and review the matter and shall either affirm the original classification or assign a new classification and shall notify the tax certificate holder or applicant of the decision in writing.

D. The license tax official may refuse to accept an application for reclassification from a tax certificate holder or applicant who has applied for reclassification within the pre §1.4§TD of 76

months if the application fails to state material and relevant facts which were not and could not have been presented in the previous reclassification application.

E. The decision of the license tax official on an application for reclassification may be appealed in accordance with Section 5.04.230.
§ 5.04.360. Retail, manufacturing, processing, professional and semiprofessional services/callings or other business- Business taxes-Gross receipts.

A. Every person engaged in any retail, general commercial, contracting, professional or semiprofessional service/calling, non-professional or non-semiprofessional servicing business activity or the rental of residential or nonresidential property, whether or not at a fixed place of business within the city, and not otherwise classified herein, shall pay an annual business tax based upon annual gross receipts as set forth below; but in no event shall such person pay less than the minimum business tax herein specified:

For the first $100,000 of gross annual receipts, only the minimum business license tax set forth in subsection B shall be due. For all gross annual receipts above $100,000, the business license tax rates shall be as follows:

Retail/General Commercial 0.065% of gross annual receipts Contractor 0.150% of gross annual receipts
Rental, Commercial or Residential 0.200% of gross annual receipts General Service (nonprofessional or non- 0.125% of gross annual receipts semiprofessional)
(e.g. hair and nail salons)
Professional or semiprofessional 0.125% of gross annual receipts service/calling
B. In addition to the taxes imposed above, self-storage facilities must also pay$50 per unit.

C. Notwithstanding subsections A and B above, regardless of gross annual receipts, every such person shall pay a minimum business license tax of $75.00 per year and no such person shall be required to pay a business license tax of greater than $28,000 for any particular year. The minimum and maximum amount of the tax and the per unit tax for self-storage facilities shall be subject to an annual increase each January 1 in an amount equivalent to increase in the Consumer Price Index (CPI) applicable to this statistical area.
§ 5.04.370. [Reserved]
§ 5.04.380. [Reserved]
§ 5.04.390. [Reserved]
§ 5.04.400. [Reserved]

§ 5.04.410. Solicitors, peddlers and canvassers and other business not specified.

Any solicitor, peddler and canvasser and any other business not otherwise specified or provided for in this title shall pay a business tax based upon gross receipts at the rate set forth above for general service businesses.
§ 5.04.420. Rock, sand and gravel extraction tax.

A. Every person who engages in the principal business of extracting and/or processing rock, sand or gravel from or on any real property located within the city, for the purpose of commercial use shall pay a general business tax on each ton of material excavated and/or processed according to the following schedule:

1. July 1, 1990 to June 30, 1991, six cents per ton;

2. July 1, 1991 to June 30, 1992, nine cents per ton.

3. July 1, 1992 to June 30, 1993, ten cents per ton.

4. July 1, 1993 to June 30, 1994, eleven cents per ton.

5. July 1, 1994 to June 30, 1995, twelve cents per ton.

B. The rate of tax on or after July 1, 1995, shall be established by the city council at not more than fourteen cents per ton and may be established by resolution.

C. The tax on the processing and/or excavation of rock, sand and gravel shall begin on July 1, 1990, and shall be paid and collected by the city quarterly, beginning October 1, 1990.

The returns for the tax shall be submitted by the persons engaged in the principal business and the tax shall be paid on October 1st, January 1st, April 1st, and July 1st of each calendar year subject to the penalties for failure to pay the tax as set forth in Section 5.04.310 of the Upland Municipal Code.

D. The license tax official shall provide each person in the principal business with a quarterly return. Such returns shall indicate the tonnage of rock, sand and gravel extracted and/or processed during the prior calendar quarter from property located within the city; the current tax rate imposed by the city; the tonnage of rock, sand and gravel extracted during the prior calendar quarter from property located outside the city, and processed within the city, and which is taxed by another city or county; and the rate of which materials have been taxed by another city or county.

E. Exemption. In the event that the extraction of any of the rock, sand and gravel processed by the person paying the tax is in fact taxed by any other city or county, then the tax so paid on the materials so processed shall be reduced by the amount paid to the other city or county but in no event shall the reduction be more than one-half of the rate charged by the city.

F. Information provided on the return shall not be considered conclusive as to the information it contains and will not prevent the city from collecting the appropriate amount which is actually due and payable, and shall be subject to audit and verification. The license official shall have the authority to examine or cause to examine, audit, and inspect such books and records as may be necessary to determine the amount of tax due and payable, and shall have the authority to enforce all provisions of this section as g RM of 76

in Section 5.04.320 of the Upland Municipal Code.
§ 5.04.425. Repeal or Amendment of Chapter 5.04.

Chapter 5.04 may be repealed or amended by the City Council without a vote of the People of the City of Upland. However, as required by California Constitution Article XIIIC (Proposition 218), voter approval is required for any amendment or provision that would increase the maximum rate or methodology of any tax levied pursuant to these chapters.

The People of the City of Upland affirm that the following actions shall not constitute an increase of the rate or methodology of the business license tax requiring subsequent voter approval:

A. The reduction of the rate of the tax, and the restoration of the rate of the tax to a rate that is no higher than the maximum set by this voter-approved chapter, if the city council has previously acted to reduce the rate of the tax; B. An ordinance amending the procedural provisions of chapter 5.04 including, but not limited to, the application process for business tax certificate issuance and renewal, the application process for business tax exemptions, collection procedures for business tax, hearing and appeal procedure, and penalties for non-compliance, so long as such ordinance does not increase the maximum rate or methodology of any tax levied pursuant to this chapter;
C. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this chapter; D. The establishment of a class of person or service that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception explicitly set forth in this chapter); and E. Resuming collection of the tax imposed by this chapter, even if the City had, for some period of time, either suspended collection of the tax or otherwise failed to collect the tax, in whole or in part.
§ 5.04.430. Parking and business improvement area-Creation- Business license for.

Pursuant to the Parking and Business Improvement Act law of 1965, being Part 5 of Division 18 of the Streets and Highways Code, Sections 36000 through 36081, there is established a business license for the parking and business improvement area, which is hereinafter in this chapter referred to simply as "said area".
(Prior code § 6430.1)
§ 5.04.440. Parking and business improvement area-Boundaries and assessment zones.

The boundaries of the proposed area are formed by two assessment zones:

Zone "A"
All of the area within the following boundaries: Beginning at a point where the centerline of Euclid Avenue intersects the centerline of "D" Street; thence easterly along the centerline of"D" Street to the centerline of Third Avenue; thence southerly along the centerline of Third Avenue to the centerline of AT & SF Railroad right-of-way; thence westerly along thlea@T a of 76

SF Railroad right-of-way to the center- line of Second Avenue; thence northerly along the centerline of Second Avenue to the centerline of "A" Street; thence westerly along the centerline of "A" Street to the centerline of Euclid Avenue; thence northerly along the centerline of Euclid Avenue to the point of beginning.

Zone "B"
All of the area within the following boundaries:

Area 1:

Beginning at a point where the centerline of Euclid Avenue intersects the centerline of "D" Street; thence northerly along the centerline of Euclid Avenue to the centerline of"F" Street, thence easterly to the centerline of First Avenue, thence southerly 283.00 feet to the northern property line of Parcel 13 of Block 20, of the Town of Magnolia, as recorded in Book 9, Page 15, of maps as recorded in the County of San Bernardino, State of California; thence easterly along the north property line of Parcels 13 and 6 of Block 20, and Parcels 13 and 6 of Block 19, of the Town of Magnolia, as recorded in Book 9, Page 15, of maps as recorded in the County of San Bernardino, State of California, to the centerline of Third Avenue; thence southerly 133 feet to the centerline of Arrow Highway; thence easterly to a point 305 feet east of the centerline of Third Avenue; thence southerly 311 feet to the north line of Lot 1 of Tract No. 10407 as recorded in Map Book 149, Pages 77 and 78 of maps as recorded in the County of San Bernardino, State of California; thence westerly 305 feet to the centerline of Third Avenue; thence southerly along the centerline of Third Avenue to the centerline of "D" Street; thence westerly along the centerline of "D" Street to the point of beginning.

Area 2:

Beginning at a point where the centerline of Third Avenue intersects the centerline of Southern Pacific Railroad right-of-way; thence easterly along the centerline of the Southern Pacific Railroad right-of-way to the centerline of Sixth Avenue; thence southerly along the centerline of Sixth Avenue to the center- line of Ninth Street; thence westerly along the centerline of Ninth Street to the centerline of Sixth Avenue; thence southerly along the centerline of Sixth Avenue to the centerline of the AT & SF Railroad right-of-way; thence westerly along the centerline of the AT & SF Railroad right-of-way 281.75 feet; thence southerly along the east property line of Parcel 2 of Parcel Map No. 3741, as recorded in Map Book 37, Page 44, of maps as recorded in the County of San Bernardino, State of California, to the centerline of Eighth Street; thence westerly along the centerline of Eighth Street to a point 225 feet west of the centerline of Euclid Avenue; thence northerly along the west property line of Lots 14 through 22 of Clubine and Oakley's Subdivision as recorded in Map Book 5, Page 17, of maps as recorded in the County of San Bernardino, State of California, to the southern property line of Lot 3, Block 2, of a portion of the Euclid Subdivision, as recorded in Map Book 18, Page 57, of maps as recorded in the County of San Bernardino, State of California; thence 17.5 feet west along said prop- erty line; thence north to the centerline of the alley running north and south between Palm Avenue and Euclid Avenue; thence northerly along the centerline of said alley to the centerline of Euclid Place; thence westerly along the centerline of Euclid Place to the west property line of Parcel 1 of Tract 8529, as recorded in Map Book 89, Pages 68 and 69 of maps as recorded in the County of San Bernardino, State of California; thence northerly along said property line to the centerline of the AT & SF Railroad right-of-way; thence easterly 122.96 feet; thence northerly to the centerline of "A" Street; thence east- erly along the centerline of "A" Street to the center of the alley running north and south between Laurel Avenue and Euclid Avenue; thence northerly along the centerline of said alley to the centerline of Southern Pacific Railroad right-of-way; thence easterly 256 feet to the centerline of Euclid APvgiffJP, of 76

thence southerly along the centerline of Euclid Avenue to the centerline of"A" Street; thence easterly along the centerline of "A" Street to the centerline of Second Avenue; thence southerly to the centerline of AT & SF Railroad right-of-way; thence easterly along the centerline of AT & SF Railroad right-of-way to the centerline of Third Avenue; thence north to the point of beginning.
(Prior code § 6430.2)
§ 5.04.450. Parking and business improvement area- Delineation.

For purposes of graphic illustration, the boundaries of said area as described in Section

5.04.430 are delineated on the following map of the area:

Map Delineating Boundaries and Assessment Zones of Parking and Business Improvement Area
i -
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y =+ _ '"- y-:%„tip 841::=44. +N' ••••• I l r_ win V :t g 4 ::':rV rI€
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`tiff:- f • �..' • rti -• !._• 4.• ; ••!��.:= .41.:.:`•..A��. _ - a =�o-:.e a • . cam-.: :;:•i- .•, �,.;K.�:•1'•-••.-.. w ��• !0•}:!-r�S•ir`7• ;�k{may-'r'••''•• •ti'•�•'�•�:•�•;•�;.. .�.••C•.ti-� III- : . .: ' .g:g. ' g �ti. 'i' i1 }.:.'•�' _w..i Y r tiiw tie• `�' • .�''•�.':ti'4' Z 0 NI E ••Di•.

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LOCATION - - - City- of 'LT p1araC3
ZONES
r."lr.t 1 Nd A1-.115 Ir LJi1 Al Wm= — - - ..

A 2.i .d H •• 111%4 P.POCI.SeCiorairNT c.i1Al-,- i -r :••�:-• (Prior code § 6430.3)

§ 5.04.460. Parking and business improvement area-Uses and purposes.

The uses and purposes to which the additional revenue emanating from said area pursuant to and as a result of this chapter shall be used for any one or more of the following:

A. The acquisition, construction or maintenance of parking facilities for the benefit of the area; B. Decoration of any public place in the area;
C. Promotion of public events which are to take place on or in public places in the area; D. Furnishing of music in any public place in the area; E. The general promotion of retail trade activities in the area; F. The general promotion of service-oriented businesses in the area. For purposes of this chapter, "service-oriented businesses" means and includes, but is not limited to, businesses engaged in commercial, light industrial and mixed uses; G. Providing administrative and financial support to the designated organization(s) fulfilling the goals and objectives of the area.
(Prior code § 6430.4)
§ 5.04.470. Parking and business improvement area-Business classification and rate of levy.

The additional levy of the general business tax imposed upon businesses within the said area over and above the general business tax imposed on such businesses commencing with January 1, 1967, with the breakdown by class of business and assessment zone are fixed, levied, determined and established as follows:

AMOUNT OF ADDITIONAL BUSINESS LICENSE TAX FOR THOSE

BUSINESSES LOCATED IN ZONES A AND B OF THE PARKING AND

BUSINESS IMPROVEMENT AREA
CLASSIFICATION OF BUSINESS ZONE A ZONE B
Class A
Business of sel line at wholesale AD additional tax An additional Lax Mail order catalog stores ual to 61.11 dual to _ l5 percent of the percent of the
Manufacturing and processing business license tax business license Medical, denial and optical laboratories applicable to each Lax applicable to such respective each such
Newspapers and mane agencies business respective Undertaking establishments business
Class B
Advertising agencies AD additional tax An additional tax Apartments. hotels, motels, dc_ ual tol _ equal l0 4 _73 percent of the percent of the
Attorneys business license tax business license Auto dealers applicable to each tax applicable to such respective each such
Automotive repair business resp
ective
Contractors and engineers business
Doctors and dentists
Newspaper publishers
Printers
Psychoanalysts, chiropractors, optometrists
Public bookkeeping, aceounung
Public utilities
Real ate°liiccs
Retail sales o f newspapers, magazines,
tobacco and other items incidental thereto_
Service stations

AMOUNT OF ADDH1ONAL BUS
BUSINESSES LOCATED IN ZONE:

BUSINESS lMPR
CLASSIFICATION OF BLrS]NESS
Veterinarians
Al] other professionals licensed arid
regulated by the stale or California and no]
specifically athervaise classified hereto.
'lass C
All ottrer businesses not othenviw provide
for in C lass.es A, B or D, ineludiag, but nol
limited to, the following:

Appliance service
Bakeries
Barbershops
Bars
Beauty strops
Clean efs and cleaners agents and agency
Department and dry goods
Drug stores
Furniture stores
General merchandiser stores
Grocery and food stores
Jewelry
Laundry agents and agencies
Laundromats and self-service]aundriu an(
cleaners
Liquor stores
L umber and b.tildins materials
Massage parlors
Miscellaneous services

AMOUNT OF ADDfl1ONA#L BUSINESS LICENSE TAX FOR THOSE
BUSINESSES LOCATED [N ZONES A AND B OF THE PARKING' AND

BUSINESS IMPROVEMENT AREA
CLASSIFICATION OF BLNINESS ZONE A ZONE B
Nurre`s and flanker shy
Nuirsing homes
Personal and real estate loran asenis and
agencies
Photo studios
Rental agents and aRencies
Rental Leasing compaar
Rrurani and eating ply
Secondhand dealers and stems
Shoe repair shops
Sign service
Sporting goods stores
-BOOM and tailor shops
Theaters
Trade schools
Trading stamp agencies and redemption
centers
and radio repair
Class D
[aster operators merchants vi ha lie space An addiuonal to An additional tax or otherwise permit the use of space to a equal to 344_156 equal to 122.32 minimum of 5 independent contractors, ar percent of the percent of the individual operators, booths,stations, basiness.license tax business license offices,desks urcludrng, but not limited ID, applicable to each tax applicable to legal real estate,grooming and rnorta2e such respective each such services business respective
business
1 Pnor code . 6430_5)

For purposes of determining the additional levy applicable under this Section, the base business license tax used for the calculation in the above tables shall be determined using the business license tax formula in existence on August 3, 2026, a copy of which shall be on file with the license tax official, though shall be based on current receipts. § 5.04.480. Parking and business improvement area-Multiple businesses.

Whenever a business is susceptible to more than one business classification under this title of the Upland Municipal Code or under any of the classifications hereinabove set forth, the highest business tax applicable under the Upland Municipal Code and the classifications hereinabove set forth which produces the greatest additional tax shall be used and applied to such businesses.
§ 5.04.490. Parking and business improvement area-Payment of tax.

The additional tax levied shall be due and payable and shall be paid at the same time and in the same manner that the business tax imposed by this chapter is due and payable in accordance with the terms of this chapter.
§ 5.04.500. Parking and business improvement area- Applicability of general business license provisions.

A. The provisions of this title relating to business licenses, permits, and regulations shall be applicable to all businesses in the area described in Section 5.04.440. The additional parking assessment levy of the general business tax imposed by Section 5.04.470 shall also apply to all such businesses except as set forth in this section. In each case where more than one person or entity is subject to the requirement of a business license for the same business premises, the additional parking assessment levy set forth in section

5.04.470 shall be applicable only to the principal business operator provided that each other person subject to the business license requirements for that business premises is engaged in either:

1. The same business classification and type as the principal business operator, such as beauticians in a beauty salon, barbers in a barbershop or antique dealers doing business cooperatively in one business premises; or

2. A business classification and type commonly accepted as incidental to that of the principal business operator, such as shoe shine service in a barbershop or a manicurist in a beauty salon.

B. The examples provided in this section are by way of illustration, not limitation.

C. For purposes of this section:
"Business premises" means the smallest division, or subdivision of a parcel, lot and/or building held out to the public, by means of signage, physical segregation or otherwise, to be one store, shop or other place of business.

"Principal business operator" means the owner of or other person or entity having primary rights of management and control over business conducted on the business premises, whether or not such rights be delegated or shared. Each business premises must have a principal business operator. In the event that no person or entity can be determined to be the principal business operator after reasonable inquiry, the finance director shall designate the principal business operator from among the persons and/or entities known to be doing business at the business premises based upon a reasonable inference from the known facts concerning such primary rights of management and control.

D. Any person subject to business license requirements other than one described in subsection A of this section, doing business at a business premises shall be subject to the additional parking assessment levy.
§ 5.04.510. Parking and business improvement area-Payment prerequisite to license.

No business license shall be issued pursuant to this title unless the additional business license imposed by Section 5.04.470 is paid together with the business license pursuant to and imposed by this title. (Prior code § 6430.9)
§ 5.04.520. Parking and business improvement area-Refusal to pay tax.

No person shall fail or refuse to pay the additional business tax imposed by Section 5.04.470." SECTION 2. The License Tax set forth herein shall be collected and administered in the manner set forth in Chapter 5.04 of the Upland Municipal Code.

SECTION 3. Pursuant to Article XIIIB of the California Constitution, the appropriation limit for the City of Upland will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance.

SECTION 4. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority, the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid.

SECTION 5. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217, this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Upland voting at the General Municipal Election to be held on November 3, 2026. The new taxing rate shall go into effect on January 1, 2027. However, until January 1, 2028, the following table shall be used in place of the table in Section 5.04.360 subsection A for the purposes of determining the applicable business license tax:

Retail/General Commercial 0.060% of gross annual receipts Contractor 0.125% of gross annual receipts
Rental, Commercial or Residential 0.150% of gross annual receipts General Service (nonprofessional or non- 0.090% of gross annual receipts semiprofessional) (e.g. hair and nail salons)
Professional or semiprofessional service/calling 0.090% of gross annual receipts SECTION 6. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the People voting thereon on November 3, 2026, by signing where indicated below.

I hereby certify that the foregoing Ordinance was PASSED, APPROVED AND ADOPTED by the People of the City of Upland on the 3rd day of November, 2026.

Bill Velto, Mayor
ATTEST:

Keri Johnson, City Clerk

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,

CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF SAN BERNARDINO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2026 WITH

THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE
PURSUANT TO §1 0403 OF THE ELECTIONS CODE
WHEREAS, on August 3, 2026, the City Council of the City of Upland adopted Resolution No. XXXX, calling a General Municipal Election to be held on November 3, 2026; for the purpose of submitting to the voters the question relating to the Business License Tax Reform Measure; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UPLAND AS FOLLOWS:

SECTION 1. Request for Consolidation. Pursuant to the requirements of §10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 3, 2026, for the purpose of submitting to the voters the following question relating to the Business License Tax.

SECTION 2. Measure Language. A measure is to appear on the ballot as follows:
"Upland Business License Reform Measure
YES
To modernize City of Upland's 31-year-old business license tax, with no tax increase to residents, lowering taxes on most small businesses, and ensuring large businesses pay their fair NO share for general city services such as: fixing potholes/streets; repairing infrastructure; and 9-1-1 response, shall the measure with rates between 0.065% and 0.2% of gross receipts,
generating $3.3 million in local funds until ended by voters, and requiring independent audits, be adopted?"
SECTION 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the General Municipal Election. The Election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. Pursuant to California

Resolution No.

Elections Code Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election.

SECTION 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.

SECTION 5. Costs. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the General Municipal Election with the Statewide General Election. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill. The City Manager of the City of Upland is authorized and directed to pay for the expenses incurred after receiving a statement from the County of San Bernardino.

SECTION 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of San Bernardino.

SECTION 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED and ADOPTED this 3rd day of August, 2026.

Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 3rd day of August, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk/Elections Official

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,

CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY AND

REBUTTAL ARGUMENTS AND SETTING RULES FOR THE FILING OF

WRITTEN ARGUMENTS REGARDING A CITY MEASURE TO BE SUBMITTED AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL

ELECTION
WHEREAS, a General Municipal Election is to be held in the City of Upland, California on November 3, 2026, at which there will be submitted to the voters the following business license tax reform measure:
"Upland Business License Reform Measure
YES
To modernize City of Upland's 31-year-old business license tax, with no tax increase to residents, lowering taxes on most small businesses, and ensuring large businesses pay their fair NO share for general city services such as: fixing potholes/streets; repairing infrastructure; and 9-1-1 response, shall the measure with rates between 0.065% and 0.2% of gross receipts,
generating $3.3 million in local funds until ended by voters, and requiring independent audits, be adopted?"
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:

SECTION 1. Primary Arguments. That the City Council directs that arguments for and against the measure may be filed in accordance with applicable law, and that neither City Council as a body or any individual member of Council is directed to file a written argument or any rebuttal argument for or against the measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk.

The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be Monday, August 17, 2026, at 12:00 p.m.

Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.

SECTION 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the primary arguments for and against the City Measure which will be printed and distributed to the voters, the Clerk shall send copies of the primary argument in favor of the Measure to the authors of

Resolution No.

the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than Thursday, August 20, 2026, at 5:00 p.m.

Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut.

SECTION 3. Prior Resolutions. That all previous resolutions providing for the filing of primary and rebuttal arguments related to City measures are repealed.

SECTION 4. November 3, 2026 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on November 3, 2026, and shall then be repealed.

SECTION 5. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions.

PASSED, APPROVED and ADOPTED this 3rd day of August, 2026.

Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 3rd day of August, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk/Elections Official

ORDINANCE NO.

AN ORDINANCE OF THE PEOPLE OF THE CITY OF UPLAND, CALIFORNIA, AMENDING VARIOUS SECTIONS OF CHAPTER 5.04 OF TITLE 5 OF THE

UPLAND MUNICIPAL CODE AS IT RELATES TO ADJUSTING THE RATES OF

BUSINESS LICENSE TAXES WITHIN THE CITY AND MAKING OTHER TECHNICAL UPDATES.

THE PEOPLE OF THE CITY OF UPLAND DO ORDAIN AS FOLLOWS:

SECTION 1. Subject to the approval of a majority of the voters of the City of Upland at the General Municipal Election so designated by the City Council in a separate resolution placing the proposal on the ballot for such election,the following sections of Chapter 5.04 of the Upland Municipal Code are hereby amended to read as follows:
"Title 5. Business Licenses and Regulations
Chapter 5.04. BUSINESS LICENSES GENERALLY
§5.04.010.License tax bureau created.

There is created a license tax bureau of the city and the office of license tax official of the city. The finance director or designee shall serve as license tax official; however, in no event shall the city manager be designated as license tax official. The license tax official shall be charged with the duty of carrying out the provisions of this title and the enforcement thereof.

The words "license official", "license collector" or "tax collector," as used elsewhere in the Upland Municipal Code,means license tax official,when such pertains to municipal licensing and taxing activities.
§ 5.04.020. Duties of license tax official.

The duties of the license tax official shall include, but not be limited to the following:

A. The license tax official shall prepare and issue all licenscstax certificates mentioned herein, and collect the charges therefore, including delinquent business taxesliccnsc fees and penalties.

B. The license tax official may require such confidential information from the applicant which will explain and describe the business in question, assisting in the administration of this title.

C. In no case shall any error made by the license tax official, or deputies, in preparing a tax certificateliccnsc, stating the amount of the charge therefore or in determining the proper applicability of this title prejudice the collection by the city the amounts actually due under this title.

D. The license tax official shall keep such records and make such reports as the city council or city manager may demand.
by the license tax review committee.

§ 5.04.030. Bond of license t a x official.

The license tax official shall furnish a bond for the faithful performance of his or her office, the penal sum of which shall be fixed by motion of the city council from time to time. § 5.04.040. License tax review.

A. The position of license tax reviewer is created to expedite and relieve the city council of certain administrative problems pursuant to the interpretation and enforcement of this title.

B. License tax review shall be performed by the city manager's designee.

C. The license tax reviewer shall review and make a finding on such matters covered by the provisions of this title,which in the opinion of the license official and city managcr require interpretation and action.Such matters shall include but not be limited to the following:

1. Requests for license tax certificate exemptions as provided for in this title;

2. Determination of branch establishments as provided for in this title;

3. Failure to file an application for, or a renewal of, a business license tax certificate as provided for in this title;

4. In any case, the license tax reviewer may desire to refer other such matters to the city council for determination, however no such determination by the license tax reviewer or city council shall in any way conflict with the provisions of this title.

D. If an applicant for a business licensetax certificate,or a tax certificate holderlicensee, or any business licensed by the provisions of this title is not satisfied with the decision and business may appeal the decision of the license tax official to the license tax reviewer for determination.
9 The est for of shall be ade iritinn rl n filed eiith the lir tax l refficivr.al

2. The findings and determinations of the license tax reviewer shall be written and sent to the applicant and licensee or business.

3. In cases where the license tax reviewer considers the nature of appeal as not within the scope or intent of license tax review,the applicant or licenseetax certificate holder shall be so informed.
'1. The decision of the license tax reviewer shall be effective five days after its determination unless a request for an appeal to the city council has been filed.

E. The decision of the license tax reviewer shall be final unless a written request for appeal § 5.04.050. Revenue measure.

This title, and the ordinance adopting such, is enacted solely to raise revenue for municipal purposes, and is not intended for regulation unless otherwise stated and/or compliance with

any applicable sections of the Upland Municipal Code,federal,state or county law. § 5.04.060. Substitute for other revenue ordinance.

Persons required to pay a business license taxfee for conducting or carrying on any business under the provisions of this title shall not be relieved from the payment of any other tax, assessment or licence fee for the privilege of doing such business required under any other ordinance of the city as contained in the Upland Municipal Code and shall remain subject to the regulatory provisions of all such other ordinances and provisions of this code. §5.04.070. Effect on past actions and obligations previously accrued.

Neither the adoption of the ordinance codified in this title nor its superseding of any portion of any other provision of the Upland Municipal Code shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the effective date of the ordinance codified in this title, nor be construed as a waiver of any license or any penal provision applicable to any such violation, nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed, or deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect.
§ 5.04.080. Definitions.

As used in this title:
"Apartment_ house" or"duplex" means a building or buildings, or portion of a building, each of which is designed, built, rented, leased, let or hired out to be occupied or which is occupied as the home or residence of three or more families living independently of each other and doing their cooking in such building or buildings. "Business" means and includes professions, trades and occupations, and all and every kind of calling carried on for profit or livelihood.
"Conduct or carry on" means and includes the engaging in, carrying on or operating of any business, trade, art, profession, calling, employment, occupation, or any commercial, industrial or professional pursuit or vocation. "Contractor" means every person, firm or corporation conducting, managing or carrying on the business of contractor,subcontractor or builder;or engaging in the construction or repair of any buildings; or engaged in any engineering, construction, or operating whatever, or advertising as such, or representing themselves as such, and regularly employing help for building construction, sewer construction, plumbing construction or general construction.

Examples include but are not limited to construction,plumbing, HVAC,and other contractors required to be licensed by the State Contractors Licensing Board. "Fixed place of business"means a location in the city at which is kept a substantial stock of merchandise or equipment and/or occupied with a competent person in attendance in connection with business of like nature or character and upon which city and county taxes are assessed and paid.

in its construction the use of more than two unrelated building trades or crafts, or to do ntend the whole n art thereof
"General engineering contractor" means a contractor whose principal contracting business is in connection with fixed works for any or all of the following divisions or subjects: Irrigation, drainage, water power, water supply, flood control, inland bridges.
"General Service" means any services, as that term is ordinarily and commonly used and understood,wherein individuals are engaged in the business of offering to the public services for compensation, and which is not a professional or semiprofessional service/calling or not otherwise specifically covered under any other part, chapter or section of this chapter.

Examples include but are not limited to hair stylists,gardeners, nail salons, etc. "Gross receipts" means and includes,whether designated as sales price, royalty, rent, slotting fee, commission, dividend, or other designation, the total amount of the sale price of all sales and the total amount charged or received for the performance of any act or service, of whatever nature it may be, for which act or service a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of material,goods,wares or merchandise. Included in gross receipts shall be all receipts, cash, credits, and property of any kind or nature,without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service costs,interest paid or payable,or losses or other expenses whatsoever.

Where the gross receipts are less than the cost of maintaining the operations of the Licensee, then the Licensee shall be deemed to produce gross receipts in an amount at least equal to the cost of operations plus 10% of the costs of operations. The "cost of operations"means the cost of maintaining the operations of the business and includes, but is not limited to, rent, utilities, depreciation, salaries, wages, fixed charges, and other expenses.

Excluded from gross receipts shall be:

1. Cash discounts allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

4. Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit;

5. Amounts collected for others where the business is acting as agent or trustee to the extent that such amounts are paid to those for whom collected.These agents or trustees must provide the license official with the names and addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustee;

6. That portion of the receipts of a general contractor which represent payments to subcontractors; provided, that such subcontractors arc licensed under the provisions of this title, and provided the general contractor furnishes the license official with the names and addresses of the subcontractors and the amounts paid each subcontractorReceipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded-j

7. For all businesses operating under Regulation 1599 of the California Tax and Fee Administration, the amount of sales exempt from sales and use taxation under Regulation 1599.

Home Occupations.The provisions of Chapter 17.124 shall apply. "Hotel, motel or roominghouse" means any lodginghouse, motel, hotel, rooming house, or public or private club containing three or more guest rooms or units, and which is occupied or is intended or designed for transient occupancy by three or more guests, whether rent is paid in money, goods, labor or otherwise and which is maintained, advertised or held out to the public as a place where sleeping or rooming accommodations are furnished to the whole or any part of the public whether with or without meals.
"Person" means and includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts business or common law trusts, societies and individuals transacting and carrying on any business in the city, other than as an employee.
"Professional or semiprofessional service/calling" means any service, as that term is ordinarily and commonly used and understood wherein individuals are engaged in the business of offering to the public professional or semiprofessional services for compensation, and not specifically covered under any other part,chapter or section of this chapter,and shall include those professions generally requiring governmental certification or a professional degree. These shall include,but not be limited to the following:accountant,advertising agent (except outdoor advertising), appraiser, architect, artist, attorney-at-law, biologist, certified public accountant, chemist, chiropractor, collection agent, consulting or design engineer, credit counselor, credit rater, dentist, designer, illustrator, doctor of medicine, draftsman, engraver, engineer—civil, chemical, structural or hydraulic—entomologist, geologist, insurance claims adjuster, laboratory, landscape architect, lapidary, lithographer, massage therapist/technician, mechanical engineer, oculist, optometrist, orthodontist, osteopathic physician, personnel consultant, physician, real estate agent or broker— including salespersons—surgeon, surveyor and veterinarian.
"Public utility"means any person furnishing the public with communication,water, light, gas, heat, power, cable distribution systems, or other public utility or service. "Rental, commercial or residential" means the business of leasing, renting, letting or otherwise hiring out for rent any apartment, single-family or multiple-family dwelling unit in the City as the home or residence for a tenant, or the business of leasing, renting, letting or otherwise hiring out for rent any real property within the City that is used for commercial, industrial,institutional or other non-residential purposes within the City.Examples include but are not limited to commercial leasing, residential rental, parcel leasing, and short-term

rentals, hotels, motels, and roominghouses,etc.
"Retail/General Commercial" means any establishment or business that conducts retail (the sale of goods to ultimate consumers, usually in small quantities), or wholesale (the sale of goods in quantity,as to retailers or jobbers,for resale),or restaurant(an establishment where meals, prepared food, and/or beverages are served to customers). Manufacturers and processors are also included in this classification, including every person conducting or carrying on a business consisting of manufacturing, packing, or processing any goods, wares,merchandise or commodities at a fixed place of business within the City or conducting or carrying on a business of cold storage or refrigeration. Warehouses are also included in this classification, including establishments primarily engaged in operating merchandise warehousing and storage facilities. Examples include but are not limited to: retailers, wholesalers, hotels, restaurants,and-manufacturers, and public utilities. "Selling" means and includes selling, offering to sell or contracting to sell, at wholesale "Solicitors, canvassers and peddlers" as used herein and for the purposes of this title, are defined to be and to include any person not having a fixed place of business in the city, who for him or herself, or as agent, or representative for or of another, goes from place to place, and from house to house, in the city offering to sell intangibles, such as bonds or stocks, or oil or mining shares or units, or articles, goods, wares or merchandise, or soliciting orders for future delivery,or taking orders,or subscriptions,or selling or disposing of any such articles or services inclusive of newspapers, magazines, periodicals, books and all other publications, and whether collecting advance payments or not, and inclusive of all persons who thus go from place to place, and from house to house within the city, in any like or analogous activities, including those who solicit funds or articles for charitable purposes, and inclusive of any and all such persons who may or may not engage in any actual or purported interstate commerce. The terms solicitors, canvassers or peddlers shall not apply to sidewalk vendors operating in compliance with Chapter 5.76, or to commercial salesmen, agents and the like who sell or take orders for goods at wholesale.
"Specialty contractor" m ns a contractor whose operations as such arc the performance of construction work requiring special skill and whose principal contracting business involves the use of specialized building trades or crafts. whatsoever as a place or location to which members of the public, at any time, may nles atio sales ales o other c milar color § 5.04.090. Imposition of feestaxes-License required-Compliance with artic4echapter.

A. There are imposed upon the businesses, trades, professions, callings and occupations specified in this title business taxeslicense fees in the amounts hereinafter prescribed. It is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city so to do or without complying with any and all applicable

provisions of this title and the Upland Municipal Code.

B. This section shall not be construed to require any person to pay the business taxobtain a license prior to doing business within the city if such requirement conflicts with applicable statutes of the United States or of the state of California.

C. Persons not required to pay the business taxobtain a license prior to doing business within the city because of conflict with applicable statutes of the United States or of the state of California shall not be liable for payment of the fee tax imposed by this title.

D. In any trade or profession where a state license is required, such license shall first be exhibited to the license tax official upon request before a city liccnsetax certificate will be issued.
§ 5.04.095. Penalty.

Any person violating any of the provisions of the herein title or knowingly or intentionally misrepresenting to any officer or employee of this city any material fact in paying the business taxprocuring the license or permit provided for in this chapter shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished as provided in Section

1.16.010. All remedies prescribed herein shall be cumulative, and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this code.
§ 5.04.100.Business IicenceTax certificate a receipt, not a permit.

The busine- license tax certificate issued pursuant to the provisions of this title constitutes a receipt for the business liccnsetax fcc paid and shall have no other legal effect.A business liccnsetax certificate is a requirement, not a permit, to conduct, manage or carry on any business activity within the city.
§5.04.110. Branch establishments.

A separate liccnsetax certificate must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location; provided that warehouses and distribution plants or lots used in connection with, and incidental to a business that has a tax certificate under the provisions of this title shall not be deemed to be separate places of business or branch establishments. Each establishment must pay the business tax for each location., and ach license shall authorize the licensee to transact and carry on only the business licensed thereby at the location or in lots used in connection with, and incidental to a busine,.s licensed under the provisions of this title shall not be deemed to be separate places of businc'c or branch establishments.

The license fee for such businec es shall be the amount applicable to the highest licensed business plus one half each additional license of the other businesses conducted at such location or other location unless otherwise provided.
§5.04.120.Free licenses.,Subleases I Formatted:Font:(Default)Arial All applications for free licenses as specifically provided for in this title shall be referred to the

to determine the merits of such applications, and to approve or reject the same. If the city the applicant a free licensc,or may rcfcr dctcrmination to the license rcvicw committcc. If the the right of appeal to the city council. A separate license shall be required for each person license issued, which shall be used to defray the expense of issuing samc. Regardless of business type, functional, or operational usage, all business owners are required to obtain a separate tax certificate for each business or entity. This includes any lessee or sub-lessee of the business and/or property owner.
§5.04.130.Interstate commerce-Filing statement.

A. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any business taxliccnsc provided for in this title upon the ground that such license casts a burden upon his or her right to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States Congress respecting interstate commerce, shall file a verified statement with the license tax official,disclosing the interstate or other character of his or her business entitling such exemption.Such statement shall contain:

1. The name and location of the company or firm for which the orders are to be solicited or secured;

2. The name of the nearest local or state manager, if any,and his or her address;

3. The kind of goods, wares or merchandise to be delivered;

4. The place from which the same are to be shipped or forwarded;

5. The method of solicitation or taking orders;

6. The location of any warehouse, factory or plant within the state of California;

7. The method of delivery;

8. The name and location of the residence of the applicant;

9. Any other facts necessary to establish such claim of exemption.

B. A copy of the order blank, contract form or other papers used by such person in taking orders shall be attached to the affidavit for the information of the license tax official. § 5.04.140.lnt^rstat^ ^ calApportionment.

A. None of the business taxeslicense fccs provided for by this title shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the state. I Formatted:Font color:Auto
B. If the holder of or applicant for a tax certificate (the taxable entity) believes that the business tax places an undue burden upon interstate commerce or would be violative of

such constitutional clauses, the taxable entity may apply to the license tax official for an adjustment of the tax(the apportionment application). The taxable entity may make an apportionment application within six months after payment of the prescribed business tax. The taxable entity shall, by sworn statement and supporting testimony, show its method of business, its cost of operations for all locations in the City, and such other information as the license tax official may deem necessary to determine the extent, if any, of such undue burden on interstate commerce or other violation of constitutional protection. In any case where a license fee is believed by a licensee or applicant for license to place an undue burden upon such commerce, he or she may apply to the- license official for an adjustment of the fee so that it shall not be discriminatory or six months after payment of the prescribed license fee. The applicant shall, by affidavit and supporting testimony, show his or her method of business and the gro volume or estimated gross volume of business and such other information as the license official may deem necessary in order to determine the extent, if any, of such undue burden on such commerce.

C_The license tax official shall then conduct an investigation, which may include but is not limited to inspecting the taxable entity's; books and records and other tax filings, and, after having first obtained the written approval of the city attorney, shall fix as the business taxlicense fcc for the taxable entityapplicant, an amount that is reasonable and nondiscriminatory, or if the business taxlicense fee has already been paid, shall order a refund of the amount over and above the business taxlicensc fee so fixed.

A,D.In fixing the amount of the business tax, the license tax official shall take the cost of operations for the locations in the City as the minimum amount owed in tax (absent extraordinary evidence to the contrary)licensc fcc to be charged,the license official shall have the power to base the license fee upon a percentage of gross receipts or any other measure which will assure that the license fee assessed shall be uniform with that assessed on businesses of like nature,so long as the amount assessed does not exceed the license fee as prescribed by this title.Should the license official determine the gross receipts measure of license fcc to be the proper basis, he or she may require the applicant to submit, either at the time of termination of applicant's business in the city,or B. Any person claiming an exemption pursuant to this section shall file a verified statement with the license tax official stating the facts upon which exemption is claimed.

GE.The license tax official shall, upon a proper showing contained in the verified statement, issue a license tax certificate to such person claiming exemptionapportionment under this section without payment to the city of the full business taxlicense fee required by this title.

ID,F.The license tax official,after giving notice and a reasonable opportunity for hearing to a licencectax certificate holder, may revoke any exemptionlicence apportionment granted pursuant to the provisions of this section upon information that the licensee tax certificate holder is not entitled to the exemptiorrapoortionment as provided herein. § 5.04.150. Public sale exempted.

No business tax license shall be required for the selling of goods at public sale, such goods belonging to the United States of America or to the state of California, or for sale of property by virtue of any process issued by any state or federal court, or for the sale of any property of an estate by the legally appointed guardian thereof. § 5.04.160.Veterans.

A. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any license provided for in this title upon the ground that he or she is an honorably discharged or released member of the armed forces of the United States who is physically unable to obtain a livelihood by manual labor and who shall be a qualified elector of the state of California,as provided or hereafter to be provided by Section 1366 of the Political Code or other law by the laws of this state, shall, prior to being issued a free license, and in addition to any other information required by this title, also file with the license official a certificate of a regularly licensed and practicing physician dated within a month of the application, to the effect that the applicant is physically unable to obtain a livelihood by manual labor,and stating the nature of the incapacitation.

B. Every peddler, solicitor or other person claiming to be entitled to exemption from the payment of any business tax provided for in this title upon the ground that he or she is an honorably discharged or released member of any branch of the United States military, shall not be changed the business license application fee, and will also receive a $100,000.00 credit towards the calculation of the business tax based on gross receipts, or a $108.00 credit towards the calculation of the business tax based on Sections 5.0/1.370, 5.0/1.380, and 5.0/1/100A and C5.04.410, if the following condition is met:

1. Proof that he or she was honorably discharged or released member of the military.

This applies to all ownership types and business license types. The city is unable to waive any state fees, such as the Certified Access Specialist(CASp)fee. § 5.04.170. Exemptions.

The following businesses are exempt from the business tax imposed by this chapter:

A. Any business exempt from the tax by the laws of the United States or the State of Cal iforniaeharitabl refi+ tie pted from taxes by Chapter 4 {commencing with Section 23701)of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501)of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986,or the successor of either, is exempt from the provisions of this title. The CASp fee is a state requirement and cannot be waived by the city.

B.

Code Section 16000(b)is exempt from the provisions of this title.

C. Upon approval of the license tax official, any person that has been issued a permit to operate at a special event and that does not have a fixed place of business in the city and is not otherwise engaged in business within the city, shall be exempt from the provisions of this title.
§5.04.180.Filing application-Contents of license.

Every person required to have a license under the provisions of this title shall make application for the same to the license tax official of the city, and upon the payment of the prescribed business tax and submission of all other required documents, license fcc the license tax official shall issue to such person a business licensetax certificate which shall contain:

A. The name of the person to whom the licensetax certificate is issued; B. The name of the business to be taxed-lee-need;
C. The place where such business is to be transacted and carried on; D. The date of the expiration of such licensetax certificate; E. Such other information as may be necessary for the enforcement of the provisions of this title.
§5.04.190.Affidavit for first licensetax certificate.

A. Upon a person making application for the first licensetax certificate to be issued hereunder or for a newly established business, and in all cases where the amount of business licensotaxee to be paid is measured by gross receipts, such person shall furnish to the license tax official for guidance in ascertaining the amount of businesslicensc tax to be paid by the applicant,a written statement,upon a form provided by the license tax official, sworn to before a person authorized to administer oaths, or sworn to under penalty of perjury, setting forth such information as may be therein required and may be necessary to determine the amount of the business taxi-ice-nee-fee to be paid by the applicant.

B. If the amount of the license fee to be paid by the applicant is measured by gross receipts, he or she shall estimate the gross receipts for the period to be covered by the license to license official as reasonable,shall be used in determining the amount of license fee to be paid by the applicant;provided, however,the amount of the license fee so determined period for which such license was issued, furnish the license official with a sworn statement, upon a form furnished by the license official showing the applicable bracket during the period of such license, and the license fee for such period shall be finally of renewal license fees for other businesses, after deducting from the payment found to be due,the amount paid at the time such first license was issued.

B. When a taxpayer applies for a business tax certificate, they must pay based on their estimated gross receipts from the start date of business in the City through the remainder of the current license period. Then,when the taxpayer applies for their first renewal, they must take the following steps in calculating its tax.

1. True-up.The taxpayer should take the actual gross receipts for that period and subtract the estimated gross receipts reported. If the remainder is positive,the taxpayer must report the additional amount of the tax on their first renewal. If the remainder is negative, then the taxpayer will receive a credit equal to the amount of the remainder multiplied by the applicable rate,which credit will first be applied to the amount owed for their first renewal period and then, if there is any amount of the credit remaining,the remaining credit will be either refunded to the taxpayer or remain on the account for future use,per the instructions

of the taxpayer. If the amount is zero,the true-up is zero and no further action is necessary.

2. Annualized estimate. The taxpayer will take the actual gross receipts for the initial period and divide it by the number of days in that actual period. That gives the daily estimated gross receipts. The taxpayer will multiply that by 365 days and use that as the gross receipts for the first year's renewal.

In the second-year renewal and other subsequent renewals, the taxpayer will report the gross receipts of the preceding year of operation as the gross receipts for the upcoming license period.

C. The license tax official shall not issue to any such person another tax certificateliccnsc for the same or any other business, until such person shall have furnished to the license tax official the written statement and paid the business taxi c,� nse fie as herein required. §5.04.200.Affidavit for renewal of business4iGensetax certificate.

In all cases,the applicant for the renewal of a liccnsctax certificate shall submit to the license tax official for guidance in ascertaining the amount of the business taxlicc c fee to be paid by the applicant, a written statement, upon a form to be provided by the license tax official, written under penalty of perjury, or sworn to before a person authorized to administer oaths, setting forth such information concerning the applicant's business during the preceding year as may be required by the license tax official to enable him or her to ascertain the amount of business taxlicensc fcc to be paid by the applicant pursuant to the provisions of this title. §5.04.210.Statements not conclusive; confidential information.

A. No statements shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the license tax official, deputies,or authorized employees of the city,who are authorized to examine,audit,and inspect such books and records of any tax certificate holders, applicants for a tax certificateliccnccc or applicant for liccnsc, as may be necessary in their judgment to verify or ascertain the amount of business taxlicensc fcc due.

B. All tax certificate holdersliccncccs, applicants for tax certificateslicenccs, and persons engaged in business in the city are required to permit an examination of such books and records for the purposes aforesaid.

C. The information furnished or secured pursuant to this section or Sections 5.04.190 or

5.04.200 of this title shall be confidential. Any unauthorized disclosure or use of such information by any officer or employee of the city shall constitute a misdemeanor, and such officer or employee shall be subject to the penalty provisions of the Upland Municipal Code, in addition to any other penalties provided by law. §5.04.220. Failure to file statement or corrected statement-Determination of amount of liccnsc fccbusiness tax.

A. If any person fails to file any required statement within the time prescribed, or if after demand therefor made by the license tax official, such person fails to file a corrected statement, the license tax official may determine the amount of lice4se-feebusiness tax

due from such person on the basis of the facts contained in the statement, any information in his or her possession and/or such information as he or she obtains.

B. If such a determination is made, the license tax official shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States post office at Upland, California, postage prepaid, addressed to the person so assessed at his or her last known address.
§ 5.04.230. Appeal.
place for hearing such appeal.The clerk of the city council shall give notice to such person of the time and place of hearing by serving it personally or by depositing it in the United States post A. A final determination of the license tax official can be appealed to the city manager or designee by filing a written notice of appeal with the license tax reviewer within 15 days of service of the notice of the final determination being appealed.

B. Only a tax certificate holder, or their representative, who can file an appeal under this section.

C. If a timely appeal is filed,the city manager,or designee,must set a hearing within 60 days of the filing of the appeal, which may be extended by the city manager for an additional 60 days. Notice of the hearing must be served on the appellant either personally or by U.S.mail to the most recent address for the challenger in the license tax official's records.

D. At the hearing the appellant and the license tax official may present evidence and argument regarding the decision being appealed to show why the decision is correct or incorrect and to show what it should be. Within 60 days after the close of the hearing, which the city manager may extend for an additional 60 days, the city manager must serve a written decision, setting forth the resolution of the appeal.The decision must be served on the appellant either personally or by U.S. mail to the most recent address for the appellant in the license tax official's records. Service is effective upon deposit of the decision in the U.S. Mail.

E. A decision of the city manager, or the city manager's designee, served under subsection D of this section is subject to judicial review under sections 1094.5 and 1094.6 of the Code of Civil Procedure with a writ petition filed in the appropriate court within 90 days of the service of the written decision. Any tax, penalties, or interest determined by the decision to be owed to the city by the appellant must be paid to the city as a precondition to filing a writ petition challenging the decision.
§5.04.240. Fictitious name-Affidavit to be filed.

No tax certificateliccncc shall be issued to any person, firm or corporation or partnership conducting or carrying on any business, show, exhibition, game, occupation, profession or enterprise under a fictitious name, unless an affidavit be filed in the office of the license tax official of the city, showing the true name of the owners of such business, exhibition, game,

occupation, profession or enterprise;provided, however,that such tax certificateliccnso may be issued in the true name or names of the owners of business, show, exhibition or game without the filing of such affidavit.
§5.04.250.Additional power of license tax official as to sworn statements and compromising claims.

In addition to all other power conferred upon him or her,the license tax official shall have the power, for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding 30 days,and in such case to waive any penalty that would otherwise have accrued; and shall have the further power, with the consent of the license tax review committeccity manager, to compromise any claim as to amount of business taxlicense fec due.
§5.04.260. No tax certificatelicense transferable-Amended tax certificatelicense for changed location.

No tax certificatelicense issued pursuant to this title shall be transferable; provided, that where a license is issued authorizing a person to transact and carry on a businec„ at a particular place,such licensee may upon application therefor and paying a fee of two dollars under the license at some other location to which the business is or is to be moved. §Section 5.04.265. New business tax certificate -existing business A. Business owners who have obtained a tax certificate for their existing business in the City are not required to obtain a new tax certificate that would result in a new tax number under the following circumstances:

1. The physical location of the business has changed within the City. This does not exempt the business owner from obtaining any applicable new zoning approvals, certificate of occupancy or the certificate of inspection.

B. Business owners who have obtained a tax certificate for their existing business in the City of Upland are required to obtain a new tax certificate that will result in a new business license tax number being issued under the following circumstances:

1. The ownership has changed from one person to another person.

2. The business is acquiring an additional location within the City.

3. The nature of the business has changed resulting in the change to the license description and SIC code, and/or FEIN number.

4. The business status is closed by the license tax official, business owner, business applicant, city manager or designee.

5. Reinstatement following revocation under Section 05.04.280. §5.04.270. Duplicate tax certificatelicense.

A duplicate tax certificateliccnsc may be issued by the license tax official to replace any license previously issued hereunder which has been lost or destroyed upon the tax certificate holderlicensee filing statement of such fact,and at the time of filing such statement paying to the license official a duplicate license fee of three dollars.

§ 5.04.280. Revocation of Iicensetax certificate.

A. Any tax certificateliccnsc issued under the provisions of this title may be revoked by the license tax official upon the failure on the part of the licensee to pay the charges imposed by this title or to file reports as required by this title within 60 days after such charges or reports become delinquent.

B. Whenever the license tax official receives sufficient evidence, in the license tax official's sole discretion, that the liccnccctax certificate holder, or any person hired, retained, controlled, or employed by the licenseetax certificate holder, has violated Section

8.44.120 of the Upland Municipal Code or any provision of state law related to the purchase and sale of detached catalytic converters(including,but not limited to,SB 1087 or AB 1740), the license official shall have the authority, pursuant to this section, to summarily suspend or terminate any tax certificateliccnsc held by the tax certificate holderliccnscc issued under the provisions of this title and order in writing to the tax certificate holderliccnccc that they licensee immediately cease and desist any further activity under any such tax certificateliccnsc for such period of time as set forth in this section.

C. For a first offense under subsection B above, the remedy shall be a suspension of any such tax certificateliccnsc for a period not to exceed 90 days.

D. For a second offense under subsection B above, the remedy shall be a suspension of any such tax certificateliccnsc for a period not to exceed 180 days.

E. For a third or subsequent offense under subsection B above, the remedy shall be permanent revocation of any such tax certificateliccnsc.

F. Any person who continues to engage in any activity for which a business tax certificateliccnsc is required and which such tax certificateliccnsc is currently suspended or revoked pursuant to this section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $1,000.00, or by imprisonment in jail for a period not exceeding six months, or by both such fine and imprisonment. Each and every day in which any person continues to engage in such activity shall constitute a separate offense.

G. The order issued under subsection A of this section shall also notify the tax certificate holderliccnscc that it shall have seven working days from the date of such order to request a hearing to determine whether such tax certificateliccnsc shall be suspended or revoked. Failure to request, in writing, such hearing before the license tax official within the seven-day period shall result in the suspension or revocation of the tax certificatelicensc pursuant to the terms of this section.

H. Upon such request by the liccnccctax certificate holder whose tax certificate license has been suspended or revoked under this section,for a hearing to determine whether such license shall be suspended or revoked,the license tax official shall provide such hearing within 15 calendar days after receipt by the license tax official of such request, at which hearing the tax certificate holderlicensee may appear before the license tax official for the purpose of presenting evidence why the tax certificateliccnsc should not be suspended or revoked. No tax certificateliccnsc shall be suspended or revoked under this section unless notice of the time and place of such hearing shall have first been given at least five calendar days before the hearing thereof by depositing in the United States mail a notice directed to the tax certificate holderlicensco at the address given in the

application. The notice shall set forth a summary of the grounds advanced as the basis of the suspension or revocation.

I. Any tax certificate holder-licensee whose tax certificatelicense is suspended or revoked under this section shall not engage in any activity for which such tax certificatelicense is required until either authorized to do so by the license tax official or the city councilmanager or its designee, on appeal, determines to overrule the decision of the license tax official.

J. The remedies provided herein are not to be construed as exclusive remedies.The city is authorized to pursue any proceedings or remedies provided by law. §5.04.290. Posting and keeping tax certificateslicenses.

All tax certificate holdersliccnscs must be kept and posted in the following manner and shall be exhibited to the license tax official upon request:

A. Any tax certificate holderlicensee transacting and carrying on business at a fixed place of business in the city shall keep the tax certificateliccnce posted in a conspicuous place upon the premises where such business is carried on.

B. Any tax certificate holder-licensee transacting and carrying on business but not operating at a fixed place of business in the city shall keep the tax certificatelicensc upon his or her person or, if the business tax is basedlicensed on the basis of a vehicle, upon such vehicle,at all times while transacting business within the city.

C. All businesses using vehicles in connection therewith, shall be furnished an annual vehicle tag or sticker for identification purposes.
§5.04.300. Business taxU^�"nse fee-How and when payable.

A. Unless otherwise specifically provided, all business taxes for tax certificateslicense fees for licenses issued between January 1st and June 30th under the provisions of this title shall be due and payable in advance on the first day of January each year; all license feesbusiness taxes for licenses issued between July 1st and December 31st under the provisions of this title shall be due and payable in advance on the first day of July each year.
q Monthly license fccs n the first day of each and a onth O Weekly licence fees on Monday of each.. ek

3. Daily license fees each day.

B. In all cases, the applicant shall, upon filing his or her application, pay the prescribed business taxlisense-fee in advance.

C. Unless otherwise provided for in this title,where any person who is engaged in business ceases business and surrenders his or her tax certificatelicense after having exercised the privilege granted pursuant to this title, such person shall not be entitled to a refund for any business taxlic,�e„se fee paid in advance or any portion thereof.

5.04.305 Audits

A. The license tax official may conduct an audit of any tax certificate holderliccnccc to ensure proper compliance with the requirements of this articicchapter.

B. To initiate an audit,the license tax official must provide written notice to the tax certificate holderliccnccc that is the subject of the audit by serving the notice personally or by U.S. mail to the most recent address for the tax certificate holderllaanaee in the license tax official's records.The notice must state the period of time subject to the audit.

C. Notice of the initiation of an audit for a tax year must be served within three (3)years of the last day of the tax year to be audited.

D. Upon completion of an audit, the license tax official may make an initial determination of any taxes,penalties,and interest determined to be owed and not paid for the audit period.

If a tax certificate holder subject to audit is unable or unwilling to provide sufficient records to enable the license tax official to verify compliance with this chapter, the license tax official is authorized to make a reasonable estimate of the amount of tax due and the reasonable estimate shall be entitled to a rebuttable presumption of correctness. §5.04.310. Penalties for failure to pay tax when due.

A. A penalty of 10 percent of the business licence tax due shall be added to the amount of such business licensc tax payable by all new businesses operating in the city which fail to obtain a business license within 30 days of opening for business and all existing businesses failing to renew a businccc tax certificatelicencc within 30 days of the due date set forth in Section 5.04.300. An additional penalty of 20 percent of the original business licence tax shall be added for each month or portion thereof,that such business licence tax remains unpaid. In no case, however, shall such penalty exceed 100 percent of the original business licence tax due.

B. Interest. In addition to the penalties imposed by this section,any business tax that remains _ Formatted:Font:12 pt unpaid after it becomes delinquent shall bear interest at the rate of one percent (1%) per month, or such other rate as the city council may establish by resolution, computed from the first day the business tax became delinquent until the date the business tax is paid in full. Interest shall not be subject to the maximum penalty limitation set forth above.

C. The city shall collect, in addition to the penalty due, any costs incurred by the necessity to [Formatted:Font:Arial collect any delinquent payment or pursuing the compliance of non-compliant businesses, including but not limited to collection costs,discovery fees,,or filing suit for collection in the [Formatted:Font:Arial courts(or any combination of such costs). Formatted:Font:12 pt § 5.04.320. Enforcement of title.

A. It shall be the duty of the license tax official, and he or she is directed to enforce each and all of the provisions of this title.The chief of police shall render such assistance in the enforcement hereof as may from time to time be required by the license tax official or the city manager.

B. The license tax official in the exercise of the duties imposed upon him or her hereunder, and acting through his or her deputies or duly authorized assistants, may examine or cause to be examined all places of business in the city to ascertain whether the

provisions of the title have been complied with.

C. The license tax official and each and all of his or her assistants and any police officer shall have the power and authority to enter, free of charge, and at any reasonable time, any place of business required to be licensed herein, and demand an exhibition of its liccn=c tax certificate. Any person having such taxliccncc certificate theretofore issued, in his or her possession or under his or her control, who fails to exhibit the same on demand, shall be guilty of a misdemeanor and subject to the penalties provided for by the Upland Municipal Code.
§ 5.04.330. Business taxLicensc fee a debt.

The amount of any business taxlicensc fcc and penalty imposed by the provisions of this title shall be deemed a debt to the city.An action may be commenced in the city in any court of competent jurisdiction, for the amount of any delinquent business taxlicensc fcc and penalties.
§ 5.04.340. Remedies cumulative.

All remedies prescribed hereunder shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof.
§5.04.350. Business classifications schedule-Business taxesLiccnsc fcc;, generally.

A. Every person who engages in any business,whether or not at a fixed place of business within the city, shall pay a business taxlicensc fcc based upon a classification in one of the following sections.

B. The determination of the class of business in which an applicant for a tax certificate tic-en-se is deemed to be engaged under this section shall be a ministerial task of the license official.

C. If a tax certificate holder or applicant disagrees with the determination of the license tax official as to the class of business in which the tax certificate holder or applicant is engaged, the tax certificate holder or applicant may apply to the license tax official for reclassification.

This application shall set forth with specificity the facts upon which it is based. Upon receipt of a reclassification application,the license tax official shall investigate and review the matter and shall either affirm the original classification or assign a new classification and shall notify the tax certificate holder or applicant of the decision in writing.

D. The license tax official may refuse to accept an application for reclassification from a tax certificate holder or applicant who has applied for reclassification within the previous 12 months if the application fails to state material and relevant facts which were not and could not have been presented in the previous reclassification application.

E. The decision of the license tax official on an application for reclassification may be appealed in accordance with Section 5.04.230.

A Gross r pts sched lea set forth in Section G 0 360. ,
R Professional ands rofessional sched lea oaf forth in Section 5 0A 370; ,
Flat rate schedule as contained in Section 5.04.400, or as provided in Chapters 5.08 through 5.72 of this titic.

§ 5.04.360. Class-Mead-on—A-Retail, wholesale—manufacturing, processing, professional; and semiprofessional services/callings or other business-License feecBusiness taxes-Gross receipts.

A. Every person engaged in any retail, general commercial, wholesale, contracting, professional or semiprofessional service/calling, non-professional or non-semiprofessional servicing business activity or the rental of residential or nonresidential property, whether or not at a fixed place of business within the city, and not otherwise classified herein, shall pay an annual license fee business tax based upon annual gross receipts as set forth below; provided, however, where such person is engaged in business lc s than one y ar c ace business and surrenders the license, such person shall be entitled to a refund of the difference, if any, between the actual gross receipts for the period while actually engaged in business and the estimated gro-s receipts reported when the license was applied for as set forth in the following gro-s receipts schedule, but in no event shall such person pay less than the minimum license fee business tax herein specified:

For the first $100,000 of gross annual receipts, only the minimum business license tax set forth in subsection B shall be due. For all gross annual receipts above$100,000,the business license tax rates shall be as follows:

Retail/General Commercial 0.065%of gross annual receipts Contractor 0.150%of gross annual receipts
Rental, Commercial or Residential 0.200%of gross annual receipts General Service (nonprofessional or non- 0.125%of gross annual receipts semiprofessional)
(e.g. hair and nail salons)
Professional or semiprofessional 0.125%of gross annual receipts service/calling
B. In addition to the taxes imposed above,self-storage facilities must also pay$50 per unit, , [Formatted:Font color:Custom Color(RGB(1,1,1)) Formatted:Body Text,Right: 0.11",Line spacing:

C. Notwithstanding subsections A and B above, regardless of gross annual receipts, every Multiple 1.061i such person shall pay a minimum business license tax of$75.00 per year and no such person shall be required to pay a business license tax of greater than $28,000 for any particular year. The minimum and maximum amount of the tax and the per unit tax for self-storage facilities shall be subject to an annual increase each January 1 in an amount equivalent to increase in the Consumer Price Index (CPI) applicable to this statistical area.
- -(Formatted:Indent:Left: 0",First line: 0"

GROSS RECEIPTS SCHEDULE
Gros m uaI Receipts Fee
$5/.00(for a business physically located in

Upland)

0.00 to 40,000.00 6-75.60
/10,001.00 to 60,000.00 97.20
60,001.00 to 100,000.00 140.40
100,001.00 to 200,000.00 183.60
200,001.00 to 300,000.00 216.00
300,001.00 to 400,000.00 279.00
/100,001.00 to 500,000.00 324.00
500,001.00 to 600,000.00 378.00
600,001.00 to 700,000.00 /132.00
700,001.00 to 800,000.00 /186.00
800,001.00 to 900,000.00 540-:00
900,001.00 to 1,000,000.00 59'1.00
1,000,001.00 to 648.00
1,100,000.00
1,100,001.00 to 702.00
1,200,000.00
1,200,001.00 to 756.00
1,300,000.00
1,300,001.00 to 810.00
1/100,000.00
1,400,001.00 and above 864.00
In addition to the above schedule, businesses with liquor sales shall pay $75.60 per year (gross receipts reported pursuant to the above schedule shall have deducted thcrcfrom the gross receipts attributable to liquor sales, only).

Other Businesses Fee
Circus,carnival, etc. $5/10.00 per year
Massage technician cident t„p,-ir ry 5/1.00 per year business
Public utilities 216.00 per year
§5.04.370. Classification n_l c fccc_Drefessional and rofessional businesses.'Reserved'
Every person who engages in the practice of a profession or a semiprofessional calling within- the city of Upland as set forth below.

Professions, semiprofessional callings, and similar businesses shall include, but not be chemist,chiropodist, chiropractor, chirothesiast, collection agent, consulting engineer,credit counselor, credit rater, dentist, designer, illustrator, doctor of medicine, draftsman, drugle s practitioner, elcctrologist, engraver, engineer civil, chemical, structural or hydraulic lithographer, masseur or masseuse, mechanical engineer, oculist, optometrist, orthodontist, osteopathic physician,personnel consultant,physician,real estate agent or broker including

upon the following schedule: for each practicing member of the firm practicing his or her rofession $5n nn n r•for each o ployee in addition t„the above xn 5n p §5.04.380.Classification A License fees Manufacturers and processors.

JReservedl
Every person who engages in manufacturing or procc' ing of materials in businc-,,activity, following schedule:
1 5 employees $-54,00
6 15 employees 108.00
16 30 employees 216.00
31 mpleyees 32/1.00
§ 5.04.390. License fee No fixed place of business. JReservedl Where there is no fixed place of business for a business activity specified within Classification activity carried on within the city(see Section 5.04.360).

§5.04.400.Classification B Miscellaneous business License fees (fixed rates �' nT [Reservedj
Administrative Office.

A-.

Base fee, per year $54.00
Each employee, per year 4:50
Recreatio nd Entertain n+
B.

Rifles n of skill r(separate from o al\ 54.00 Arcade games, per year/per unit 51.00
Social club, dancing club, per year 108.00
Residential Property Rental.

Less than three units or rooms No fee
Three units or rooms, per year 54.00
Each additional unit or room, per year non
Solicitations.

Charitable, per year 9 00
Solicitors, canvassers, peddlers, per person, per year 216.00 Transportation.

E
Delivery by vehicle, per vehicle, per year 51.00 Taxicab, per vehicle, per year 51.00
§ 5.04.410. Solicitors, peddlers and canvc-assers and other Bbusiness not specified.

Any solicitor, peddler and canvasser and any other business not otherwise specified ors Formatted:Justified provided for in this title shall pay a business tax based upon be licensed on the basis of gross receipts at the rate set forth above for general service businesses, Classification A. § 5.04.420. Rock, sand and gravel extraction tax.

A. Every person who engages in the principal business of extracting and/or processing rock, sand or gravel from or on any real property located within the city, for the purpose of commercial use shall pay a general business license tax on each ton of material excavated and/or processed according to the following schedule:

1. July 1, 1990 to June 30, 1991, six cents per ton;

2. July 1, 1991 to June 30, 1992, nine cents per ton.

3. July 1, 1992 to June 30, 1993, ten cents per ton.

4. July 1, 1993 to June 30, 1994, eleven cents per ton.

5. July 1, 1994 to June 30, 1995,twelve cents per ton.

B. The rate of tax on or after July 1, 1995, shall be established by the city council at not more than fourteen cents per ton and may be established by resolution.

C. The tax on the processing and/or excavation of rock,sand and gravel shall begin on July 1, 1990,and shall be paid and collected by the city quarterly, beginning October 1, 1990.

The returns for the tax shall be submitted by the persons engaged in the principal business and the tax shall be paid on October 1st, January 1st, April 1st, and July 1st of each calendar year subject to the penalties for failure to pay the tax as set forth in Section 5.04.310 of the Upland Municipal Code.

D. The business license tax official shall provide each person in the principal business with a quarterly return. Such returns shall indicate the tonnage of rock, sand and gravel extracted and/or processed during the prior calendar quarter from property located within the city; the current tax rate imposed by the city; the tonnage of rock, sand and gravel extracted during the prior calendar quarter from property located outside the city, and processed within the city, and which is taxed by another city or county; and the rate of which materials have been taxed by another city or county.

E. Exemption. In the event that the extraction of any of the rock,sand and gravel processed by the person paying the tax is in fact taxed by any other city or county,then the tax so paid on the materials so processed shall be reduced by the amount paid to the other city or county but in no event shall the reduction be more than one-half of the rate charged by the city.

F. Information provided on the return shall not be considered conclusive as to the information it contains and will not prevent the city from collecting the appropriate amount which is actually due and payable, and shall be subject to audit and verification. The license official shall have the authority to examine or cause to examine,audit,and inspect such books and records as may be necessary to determine the amount of tax due and payable, and shall have the authority to enforce all provisions of this section as set forth in Section 5.04.320 of the Upland Municipal Code.
$5.04.425. Repeal or Amendment of Chapter 5.04.

Chapter 5.04 may be repealed or amended by the City Council without a vote of the People of the City of Upland. However, as required by California Constitution Article XIIIC (Proposition 218), voter approval is required for any amendment or provision that would increase the maximum rate or methodology of any tax levied pursuant to these chapters.

The People of the City of Upland affirm that the following actions shall not constitute an increase of the rate or methodology of the business license tax requiring subsequent voter approval:

A. The reduction of the rate of the tax, and the restoration of the rate of the tax to a rate that is no higher than the maximum set by this voter-approved chapter, if the city council has previously acted to reduce the rate of the tax; B. An ordinance amending the procedural provisions of chapter 5.04 including, but not limited to,the application process for business tax certificate issuance and renewal, the application process for business tax exemptions,collection procedures for business tax, hearing and appeal procedure, and penalties for non-compliance, so long as such ordinance does not increase the maximum rate or methodology of any tax levied pursuant to this chapter;

C. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification)is not inconsistent with the language of this chapter; D. The establishment of a class of person or service that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception explicitly set forth in this chapter); and E. Resuming collection of the tax imposed by this chapter, even if the City had, for some period of time, either suspended collection of the tax or otherwise failed to collect the tax, in whole or in part.
§5.04.430. Parking and business improvement area-Creation-Business license for.

Pursuant to the Parking and Business Improvement Act law of 1965, being Part 5 of Division 18 of the Streets and Highways Code,Sections 36000 through 36081,there is established a business license for the parking and business improvement area, which is hereinafter in this chapter referred to simply as"said area".
(Prior code§6430.1)
§ 5.04.440. Parking and business improvement area-Boundaries and assessment zones.

The boundaries of the proposed area are formed by two assessment zones:

Zone"A"
All of the area within the following boundaries: Beginning at a point where the centerline of Euclid Avenue intersects the centerline of"D" Street; thence easterly along the centerline of"D"Street to the centerline of Third Avenue;thence southerly along the centerline of Third Avenue to the centerline of AT&SF Railroad right-of-way;thence westerly along the AT& SF Railroad right-of-way to the center- line of Second Avenue; thence northerly along the centerline of Second Avenue to the centerline of "A" Street; thence westerly along the centerline of "A" Street to the centerline of Euclid Avenue; thence northerly along the centerline of Euclid Avenue to the point of beginning.

Zone"B"
All of the area within the following boundaries:

Area 1:

Beginning at a point where the centerline of Euclid Avenue intersects the centerline of"D" Street;thence northerly along the centerline of Euclid Avenue to the centerline of"F"Street, thence easterly to the centerline of First Avenue, thence southerly 283.00 feet to the northern property line of Parcel 13 of Block 20, of the Town of Magnolia, as recorded in Book 9, Page 15,of maps as recorded in the County of San Bernardino, State of California; thence easterly along the north property line of Parcels 13 and 6 of Block 20, and Parcels 13 and 6 of Block 19,of the Town of Magnolia,as recorded in Book 9, Page 15,of maps as recorded in the County of San Bernardino, State of California, to the centerline of Third Avenue;thence southerly 133 feet to the centerline of Arrow Highway;thence easterly to a point 305 feet east of the centerline of Third Avenue;thence southerly 311 feet to the north line of Lot 1 of Tract No. 10407 as recorded in Map Book 149, Pages 77 and 78 of maps as recorded in the County of San Bernardino, State of California; thence westerly 305 feet to the centerline of Third Avenue;thence southerly along the centerline of Third Avenue to the

centerline of"D" Street; thence westerly along the centerline of"D" Street to the point of beginning.

Area 2:

Beginning at a point where the centerline of Third Avenue intersects the centerline of Southern Pacific Railroad right-of-way;thence easterly along the centerline of the Southern Pacific Railroad right-of-way to the centerline of Sixth Avenue; thence southerly along the centerline of Sixth Avenue to the center- line of Ninth Street; thence westerly along the centerline of Ninth Street to the centerline of Sixth Avenue; thence southerly along the centerline of Sixth Avenue to the centerline of the AT & SF Railroad right-of-way; thence westerly along the centerline of the AT & SF Railroad right-of-way 281.75 feet; thence southerly along the east property line of Parcel 2 of Parcel Map No. 3741, as recorded in Map Book 37, Page 44, of maps as recorded in the County of San Bernardino, State of California, to the centerline of Eighth Street; thence westerly along the centerline of Eighth Street to a point 225 feet west of the centerline of Euclid Avenue; thence northerly along the west property line of Lots 14 through 22 of Clubine and Oakley's Subdivision as recorded in Map Book 5, Page 17, of maps as recorded in the County of San Bernardino, State of California, to the southern property line of Lot 3, Block 2, of a portion of the Euclid Subdivision, as recorded in Map Book 18, Page 57, of maps as recorded in the County of San Bernardino, State of California;thence 17.5 feet west along said prop-erty line;thence north to the centerline of the alley running north and south between Palm Avenue and Euclid Avenue;thence northerly along the centerline of said alley to the centerline of Euclid Place; thence westerly along the centerline of Euclid Place to the west property line of Parcel 1 of Tract 8529, as recorded in Map Book 89, Pages 68 and 69 of maps as recorded in the County of San Bernardino, State of California; thence northerly along said property line to the centerline of the AT & SF Railroad right-of-way; thence easterly 122.96 feet; thence northerly to the centerline of"A"Street; thence east-erly along the centerline of"A"Street to the center of the alley running north and south between Laurel Avenue and Euclid Avenue; thence northerly along the centerline of said alley to the centerline of Southern Pacific Railroad right-of-way; thence easterly 256 feet to the centerline of Euclid Avenue; thence southerly along the centerline of Euclid Avenue to the centerline of"A"Street;thence easterly along the centerline of "A" Street to the centerline of Second Avenue; thence southerly to the centerline of AT & SF Railroad right-of-way; thence easterly along the centerline of AT&SF Railroad right-of-way to the centerline of Third Avenue;thence north to the point of beginning.
(Prior code§6430.2)
§5.04.450. Parking and business improvement area-Delineation.

For purposes of graphic illustration, the boundaries of said area as described in Section

5.04.430 are delineated on the following map of the area:

Map Delineating Boundaries and Assessment Zones of Parking and Business Improvement Area
fit,. .J 1Gr,cl
Schoci
'y--_- 5=,."�xsss mass a.. sr
iM
_,R ,_. . 2H§§R 2 d 2,E .

IMI 0:211.-.:: ---W ____I-- — ..,10.... ,..1.u. ., ......-;„.4, t.-.-- _ ._.- 0#IN g : g x r 1
-- _`_ }ath,_. --
..--. -- ��{y.,:4 %V. :r..{.fir •r.••.4.::1,''•"'
Y.,-,...==i- fry-'.�.'`. 9'•..4-42%iYir klIMMIIIMI %Sine... ..=.Z.Z+'.1.::=S• -i`i1i$:

I gild'.i - *ic....K:•. ti::ti''-r-•::• i•.r..r'!.,.1 �.S•••1.yC~'M•P •.iy:iii` i fi '•••'• min ral-vr.:x-,:..... .0•Ye.y 7!.i dr9;% :f'{aI:.r�r"%.i• .•,. :::::.:
-i3_•:-".S:-:'....^^.�%.'f:^..•• ::::ex:vs+a6e;•r: ::rr3L':.. %• ••7:e:i%�.G:• r. i:: .y ' Nye
§rr �j: a. 3ems.. '`ry '•,, :,,ao �.3
-t _to: �� o n ® ice :E ,
-ZONE "A"
103 ZONE "B"
r.4o retr-4
LOCATION City (Dr f U l .rnci
ZONES
.i I•AR.C,NO ...NO rL)fll JiaM - _'.
--A" ari 4A .•B.. Inw I.1\o V C►q i NI I' C.4l1.1-ee lCT \e-. ..'..1 (Prior code§6430.3)

§5.04.460. Parking and business improvement area-Uses and purposes.

The uses and purposes to which the additional revenue emanating from said area pursuant to and as a result of this chapter shall be used for any one or more of the following:

A. The acquisition,construction or maintenance of parking facilities for the benefit of the area; B. Decoration of any public place in the area;
C. Promotion of public events which are to take place on or in public places in the area; D. Furnishing of music in any public place in the area; E. The general promotion of retail trade activities in the area; F. The general promotion of service-oriented businesses in the area. For purposes of this chapter, "service-oriented businesses" means and includes, but is not limited to, businesses engaged in commercial, light industrial and mixed uses; G. Providing administrative and financial support to the designated organization(s)fulfilling the goals and objectives of the area.
(Prior code§6430.4)
§ 5.04.470. Parking and business improvement area-Business classification and rate of levy.

The additional levy of the general business license tax imposed upon businesses within the said area over and above the general business license tax imposed on such businesses commencing with January 1, 1967,with the breakdown by class of business and assessment zone are fixed, levied,determined and established as follows:

AMOUNT OF ADDITIONAL BUSINESS LICENSE TAX FOR THOSE

BUSINESSES LOCATED IN ZONES A AND B OF THE PARKING AND

BUSINESS IMPROVEMENT AREA
CLASSIFICATION OF BUSINESS ZONE A ZONE B
Class A
Business of selling at u-holesal€ An additional tax An additional tax ual to
Mail order.+catalog stores b1-11 dual to 20.36 percent of the percent of the
Manufacturing and processing business license tax business license Medical,dental and optical laboratories applicable to each Lis applicable to such respective each such
Newspapers and magazine agencies business respective Undertaking establishments business
Class B
Advertising agencies An additional tax An additional tax etc- equal to 122-24 aim!too-73
Apartments,hotels,motels,
percent of the percent of the
Attorneys business license tax business license Auto dealers applicable to each lax applicable to such respective each such
Automotive repair business respective
Contractors and engineers business
Doctors and dentists
Newspaper publishers
Printers
Psychoanalysts,chiropractors,optometrists
Public bookkeeping,accounting
Public utilities
Real esiateoflices
Retail sales of newspapers,magazines.
tobacco and other items incidental thereto.

Service stations

AMOUNT OF AD[HTLONAL BUSINESS LICENSE TAX FOR THOSE
BUSINESSES LOCATED Rs]ZONES A AND B OF THE PARKING AND

BUSINESS IMPROVEMENT AREA
CLASSIFICATION OF BUSINESS ZONE A ZONE B
Veterinarians
All other professionals licensed and
regulated by the stale of California and not
specifically otherwise classified herein
Class C
All other businesses not otherwise provided An additional tax An additional tax for in Clas en A,l3 or D,including,bta not equal to L 83.3E equal to 61.1 l% limited to,the following: percent of the of the business busines license tax license tax
applicable to each applicable to each
such r€spectrwe such respective
business biisness
Appliance service
Bakeries
Barbershops
Bars
Beauty shops
Cleaners and cleaners agents and agencies.

Department and dry goods
Drug stores
Furniture stores
General merchandise stores
Urocery and food stores
Jewelry
Laundry agents and agencies
Laundromats and self-service Laundries and
cleaners
Liquor stores
Lumber and building materials
Massage parlors
Miscellaneous services

AMOUNT OF ADDITIONAL BUSINESS LICENSE TAX FOR THOSE
BUSINESSES LOCATED[N ZONES A AND B OF THE PARKING AND

BUSINESS IMPROVEMENT AREA
CLASSIFICATION OF BUSINESS ZONE A ZL)NE B
Nurserie3 and flower shops
Nursing homes
Personal and real estate loan agents and
agencies
Photo studios
Recital agents and agericaN
Recital leasing companies
Restaurants and eating places
Secondhand dealers and sues
Shoe repair shops
Sign service
Sporting goods stores
Tailors and tailor shops
Theaters
Trade schools
Trading stamp agencies and redemption.
centers
TV and radio repair
Class D
Master operators/merchants u ho lease space An additional tax An additional tax or otherwise permit the use of space w s equal to 244_66 equal to 122.32 minimum iA 5 independent conirach sy or pert of the percent of the inch i d ual operators,booths,stag business l i ce rise tax business License offices,desks including,but not limited to, applicable to each tax applicable to legal re-al estate,groamute and mortgage such respective each such services V V business respective
business
(Prior code§613D_5)

For purposes of determining the additional levy applicable under this Section, the base business license tax used for the calculation in the above tables shall be determined using the business license tax formula in existence on August 3,2026,a copy of which shall be on file with the license tax official,though shall be based on current receipts. §5.04.480. Parking and business improvement area-Multiple businesses.

Whenever a business is susceptible to more than one business classification under this title of the Upland Municipal Code or under any of the classifications hereinabove set forth, the highest business license tax applicable under the Upland Municipal Code and the classifications hereinabove set forth which produces the greatest additional tax shall be used and applied to such businesses.
§5.04.490. Parking and business improvement area-Payment of tax.

The additional tax levied shall be due and payable and shall be paid at the same time and in the same manner that the business license tax imposed by this chapter is due and payable in accordance with the terms of this chapter.
§ 5.04.500. Parking and business improvement area- Applicability of general business license provisions.

A. The provisions of this title relating to business licenses, permits,and regulations shall be applicable to all businesses in the area described in Section 5.04.440. The additional parking assessment levy of the general business liccnsc tax imposed by Section

5.04.470 shall also apply to all such businesses except as set forth in this section. In each case where more than one person or entity is subject to the requirement of a business license for the same business premises, the additional parking assessment levy set forth in section 5.04.470 shall be applicable only to the principal business operator provided that each other person subject to the business license requirements for that business premises is engaged in either:

1. The same business classification and type as the principal business operator, such as beauticians in a beauty salon, barbers in a barbershop or antique dealers doing business cooperatively in one business premises; or

2. A business classification and type commonly accepted as incidental to that of the principal business operator, such as shoe shine service in a barbershop or a manicurist in a beauty salon.

B. The examples provided in this section are by way of illustration, not limitation.

C_For purposes of this section:, Formatted:Font color:Auto G ;Business premises"means the smallest division, or subdivision of a parcel, lot Formatted:Font.12 pt,Font color.Custom and/or building held out to the public, by means of signage, physical segregation or Color(RGB(1,1,1)) otherwise,to be one store,shop or other place of business,. Formatted:Font.12 pt "Principal business operator"means the owner of or other person or entity having primary

rights of management and control over business conducted on the business premises, whether or not such rights be delegated or shared. Each business premises must have a principal business operator. In the event that no person or entity can be determined to be the principal business operator after reasonable inquiry, the finance director shall designate the principal business operator from among the persons and/or entities known to be doing business at the business premises based upon a reasonable inference from the known facts concerning such primary rights of management and control.

D. Any person subject to business license requirements other than one described in subsection (A)(1)or(2)of this section, doing business at a business premises shall be subject to the additional parking assessment levy.
§5.04.510. Parking and business improvement area-Payment prerequisite to license.

No business license shall be issued pursuant to this title unless the additional business license imposed by Section 5.04.470 is paid together with the business license pursuant to and imposed by this title. (Prior code§6430.9)
§5.04.520. Parking and business improvement area-Refusal to pay tax.

No person shall fail or refuse to pay the additional business license tax imposed by Section

5.04.470."
SECTION 2. The License Tax set forth herein shall be collected and administered in the manner set forth in Chapter 5.04 of the Upland Municipal Code.

SECTION 3. Pursuant to Article XIIIB of the California Constitution, the appropriation limit for the City of Upland will be increased by the maximum projected aggregate collection authorized by the levy of this general tax,as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance.

SECTION 4. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority, the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid.

SECTION 5. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217, this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Upland voting at the General Municipal Election to be held on November 3,2026. The new taxing rate shall go into effect on January 1,2027. However, until January 1, 2028, the following table shall be used in place of the table in Section 5.04.360 subsection A for the purposes of determining the applicable business license tax:

Retail/General Commercial 0.060%of gross annual receipts Contractor 0.125%of gross annual receipts
Rental, Commercial or Residential 0.150%of gross annual receipts General Service(nonprofessional or non- 0.090%of gross annual receipts semiprofessional)(e.g. hair and nail salons)
Professional or semiprofessional service/calling 0.090%of gross annual receipts SECTION 6. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the People voting thereon on November 3,2026, by signing where indicated below.

I hereby certify that the foregoing Ordinance was PASSED,APPROVED AND ADOPTED by the People of the City of Upland on the 3rd day of November, 2026.

Bill Velto, Mayor
ATTEST:

Keri Johnson, City Clerk