ORDINANCE NO. 2024-02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA AMENDING CHAPTERS 5.04 AND 5.28 OF THE CITY OF VISALIA MUNICIPAL CODE PERTAINING TO BUSINESS REGULATIONS GENERALLY AND REGULATION OF LODGING HOUSES AND SHORT-TERM RENTALS BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VISALIA:
Section 1. Consistent with its control over municipal affairs as a charter city and the powers vested in the City of Visalia through the California Constitution, the City of Visalia is authorized to secure and promote the public health, comfort, safety, and welfare of its citizenry. The City Council of the City of Visalia hereby makes the followings findings:
A. The current version of Title 5, Business Regulations, in the Municipal Code has been in place since the last amendment occurred in 1995 (Ordinance No. 95-17, adopted June 26, 1995).
B. The amendments proposed in this item are the result of the recent VMC amendment addressing Short-term Rentals which became effective on December 6, 2023. The recently adopted Short-term Rental ordinance requires some clarification of business definitions contained within Title 5, Chapter 5.04 and Chapter 5.28.
C. The amendments also contain updates to clarify language and address outdated references, as well as to update and revise the Visalia Municipal Code to be consistent with current City business practices and procedures related to the regulation of businesses in the City of Visalia.
Section 2. Title 5 of the Visalia Municipal Code is hereby amended by revising certain sections of Chapter 5.04 to include the modifications described below with newly added language listed in italics/underline and deleted language listed in strikeout. Sections 5.04.010, 5.04.070, 5.04.080, 5.04.090, 5.04.100, 5.04.130, 5.04.150, 5.04.160, 5.04.180, 5.04.190, 5.04.210, 5.04.220, 5.04.230, 5.04.250, 5.04.260, 5.04.270, 5.04.280, 5.04.290, 5.04.320, 5.04.330, 5.04.350, 5.04.390, 5.04.400, 5.04.420 shall henceforth read as follows:
5.04.010 Definitions.
Unless it is apparent from the context that another meaning is intended, the following words and/or phrases, when used in this title, shall have the meaning respectively ascribed to them and shall be interpreted and construed accordingly. As used in this title, the following words or phrases shall mean:
Administrative and Corporate Headquarters. "Administrative and corporate headquarters," as defined by the collector, shall pay a minimum annual business tax. This is an office that is located within the city limits that provide administrative or management related services such as, but not limited to, record keeping, data processing, research, personnel administration, and corporate headquarters services to other locations where the operations of the same business are conducted which lead more directly to the production of gross receipts.
Annual Gross Receipts. "Annual gross receipts", means the total "gross receipts" (as defined in this section) for the calendar year.
Business. "Business" includes professions, trades, and occupations and all and every kind of calling carried on with or without the intent of making a profit.
Business Day. “Business Day” includes any day the city of Visalia Business Tax division is open for business.
Business District. "Business district" means any area zoned for business purposes by the zoning regulations of the city.
Business Tax Certificate. "Business tax certificate" shall mean the physical documentation verifying payment of tax issued by the collector, indicating the tax period covered. “Business License”, “City Business License”, “City of Visalia Business License”, and “Business Tax Permit” are used interchangeably within the City of Visalia Municipal Code to mean “Business Tax Certificate” when used in reference to this title.
Calendar Year. "Calendar year" means January 1st, of any given year, through and including December 31st of such year.
City. "City" means the city of Visalia, a certified California chartered city.
City Council. "City council" means any city council of the city.
Chief of Police. "Chief of police" means any chief of police of the police department of the city, or his/her their duly authorized deputies, or assistants who may be charged with the responsibility of enforcing this title.
Close of Business. “Close of Business” means the end of the working day for the Business Tax division of the City of Visalia.
Collector. "Collector" means the director of the finance department, or his/her their duly authorized deputies, or assistants who may be charged with the collection of business taxes and the issuance of business tax certificates.
Contractor. "Contractor" means any contractor, who is required to be licensed as a contractor by the state of California, or any entity that undertakes to or offers to undertake to or purports to have the capacity of to undertake to or submits a bid to, or does himself/herself itself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure, project, development, or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith. The term contractor includes specialty contractor, and further includes an entity that contracts to hire out personnel and trucks, tractors, excavating or other equipment in connection with a construction project, whether at rates by the hour or day or for a contract amount. Contractors shall include general contractors, specialty contractors, developers, engineering contractors, and all subcontractors doing work within the city.
Director of Finance. "Director of finance" means any director of the finance department of the city, or his/her their duly authorized deputies, or assistants who may be charged with the collection of business taxes and the issuance of business tax certificates.
Employee. "Employee" means any individual engaged in the operation or conduct of any business, whether as a member of the owner's family, agent, manager, solicitor, volunteer, or any other individual employed or working in said business.
Entity. "Entity" includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts business or common law trusts, societies, persons and individuals transacting and carrying on any business in the city, other than as an employee.
Fixed Place of Business. "Fixed place of business" shall mean the premises within the city where a specific business is continuously conducted from day to day and regularly kept open for the purposes of such business.
Gross Payroll. "Gross payroll" includes the total gross amount of all salaries, wages, commissions, bonuses, or other money payment of any kind which an individual received from or is entitled to receive from or be given credit for by his/her employer for any work done or personal service rendered in any trade as reported on federal, quarterly or annual payroll forms 941 or 940; provided, however, that where employees working in the city were reported as having worked elsewhere than in the city, the part of their wages paid or due for work performed in the city shall be included as gross payroll in the city.
Gross Receipts. "Gross receipts" includes the annual calendar year total amounts actually received or receivable for any sale or for the performance of any act or service, of whatever nature it may be, for which charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; and gains realized from trading in stocks or bonds, interest income, carrying charges, rents, royalties, fees, commissions, dividends, or other emoluments, however designated. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from gross receipts, shall be the following:
1. Cash discounts allowed and taken on sales;
2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser (example sales tax or excise tax);
3. 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;
4. Amounts collected for others where the business is acting as trustee to the extent that such amounts are paid to those for whom collected; provided, the trustee has furnished the collector with the names and addresses of the others and the amounts paid to them;
5. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;
6. As to a real estate broker, the sales price of real estate sold for the account of others, except that portion which represents commission or other income to the broker;
7. As to alcohol, alcoholic beverages, bars, restaurants, liquor stores, and like businesses dispensing and/or selling alcoholic beverages, only that portion of the gross receipts related to the manufacture, transportation or sale of alcohol shall be exempt;
8. Amounts received or receivable by an entity having a fixed place of business within the city for acts or services performed outside the city, but only to the extent a business tax has been paid to the city or cities in which the acts or services were performed for gross receipts, up to a maximum of twenty-five (25) percent of the total gross receipts;
9. Renting, letting, or subletting of property owned by an entity to himself/herself itself or to an entity wholly owned by him/her it.
Individual. "Individual" shall mean one separate being; natural individual. Such individual shall not represent any group of individuals.
Itinerant Vendor. "Itinerant vendor" includes all entities, both principal and agent, who engage in a transient business in the city selling materials, goods, wares and/or merchandise and for the purpose of carrying on such business hire, lease or occupy any room, booth, building or structure for the exhibition or sale of such materials, goods, wares and/or merchandise, or who from any such room, booth, building or structure makes sales. The entities so engaged shall not be relieved from the provisions of this title by reason of associating temporarily with any local dealer, trader, merchant or auctioneer, or by conducting such transient business in connection with, or as a part of, or in the name of, any local dealer, trader, merchant or auctioneer. Additionally, the business shall be classified as an itinerant vendor if such business conducts business in the city for less than ninety-one (91) calendar days; further, such business may be classified by the collector as an itinerant vendor if such business conducts business continuously for less than three hundred sixty-five (365) calendar days.
Lodging House Business. "Lodging house business" includes any City-approved and properly permitted business entity conducting, carrying on or managing any building in which sleeping rooms or apartments are or may be let or hired cumulatively to six or more individuals for one or more nights, whether compensation therefore be paid in money, labor, merchandise or otherwise; and includes hotels, motels, bed and breakfasts, time-share projects, and apartment houses where cooking is not done in any room or apartment except in the general kitchen used and operated in connection with the business of such lodging house, hotel, motel, bed and breakfast, time-share project, or apartment house. Short-term rentals as defined in this section shall not be considered Lodging House Business.
Musical performances. "Musical performances" includes any concert, minstrel show, band concert, musical performance or exhibition, or entertainment, or other public exhibition, where a charge may be made for admission or seats; provided, that "musical performances" shall not include public dances or circuses.
Outdoor Advertising Business. "Outdoor advertising business" includes any entity carrying on or engaged in the business or occupation of providing outdoor advertising for others.
Peddle. "Peddle" means to sell and make immediate delivery, or offer for sale and immediate delivery, any materials, goods, wares, or merchandise in possession of the seller, at any place within the City other than from a fixed place of business.
Peddler. "Peddler" includes any hawker, vendor, or other individual who goes from house to house, from place to place, or in or along the streets within the city selling and making immediate delivery or offering for sale and immediate delivery any materials, goods, wares, merchandise or anything of value in his/her their possession to entities other than manufacturers, wholesalers, jobbers, or retailers in such commodities.
Police Department. "Police department" means police department (also known as the department of public safety) of the city.
Public Utility. "Public utility" means any entity which furnishes the public with communication, water, light, gas, heat, power, waste treatment/collection/removal, or other public utility or service subject to regulation by the Public Utilities Commission of the state of California or a franchise agreement with the city.
Real Estate Developer/Real Estate Subdivider. “Real Estate Developer” develops a property or subdivision, making physical improvements to it by putting in roads, utility lines, and other infrastructure elements. This type of business will pay on gross receipts from the commissions per the lots/houses/ offices of the development. The business tax application shall be remitted at the beginning of the development project.
Real Estate Subdivider. “Real Estate Subdivider” subdivides and/or sells individual lots with the promise to eventually put in roads, sewers, and water lines.
Rental of Commercial Property Business. “Rental of Commercial Property Business” An entity shall be considered to be in the business of renting commercial property if they rent for consideration one or more units. A commercial landlord is a business or individual that rents, /subleases, or enters into a licensing agreement for one or more units of commercial the property for consideration.
Rental of Residential Property Business. An entity shall be considered to be in the business of renting residential property if they rent for consideration two or more units, be they single-family dwellings, trailers, mobile homes or other units in multiple family residences, within the city limits. Short-term rentals as defined in this section shall not be considered Rental of Residential Property Business.
Sale. "Sale" includes the transfer, in any manner or by any means whatsoever, of title to real or personal property for a consideration; the serving, supplying or furnishing for a consideration of any property; and a transaction whereby the possession of the property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall be deemed to include any transaction which is or which, in effect, results in a sale within the contemplation of law.
Short-term rental. “Short-term Rental” shall mean rental of a dwelling or a portion thereof by the owner to another person or group of persons for occupancy, dwelling, lodging or sleeping purposes for a period of less than thirty (30) consecutive calendar days. The rental of units within City-approved hotels, motels, bed and breakfasts, and time-share projects shall not be considered to be short-term rental.
Solicit. "Solicit" means to sell or take orders or offer for sale or offer to take orders for materials, goods, wares, or merchandise, for future delivery, or for service to be performed, at any place within the city other than a fixed place of business.
Solicitor. "Solicitor" means any individual engaged in soliciting, canvassing, or taking orders from house to house or from place to place, by telephone or by any other means of communication for any materials, goods, wares or merchandise, for any article to be delivered in the future or for services to be performed in the future, for making, manufacturing or repairing any article whosoever for future delivery, or for subscriptions to periodicals or tickets of admission to entertainment, or memberships in any clubs.
Sworn Statement. "Sworn statement" means any affidavit sworn to before an individual authorized to take oaths, or a declaration or certification made under penalty of perjury in accordance with California law.
Transient Business. "Transient business" means every business not conducted at a fixed place of business, whether the individual(s) conducting such transient business is or is not a resident of the city.
Vehicle. "Vehicle" means any and every device, in, upon, or by which any individual(s) or property is or may be transported or drawn upon a public highway or roadway.
5.04.070 Branch establishments.
A. A separate business tax must be paid for each branch establishment or location of the business, and each tax certificate shall be for only the business at the location so specified and conducted in the manner designated; provided, that warehouses and distributing plants used in connection with and incidental to a business under the provisions of this title shall not be deemed to be a separate place of business or branch establishment. Temporary location(s) established by an entity otherwise taxed pursuant to the provisions of this title for the same type of business and under the same business name for a cumulative period of forty-five (45) days or less per calendar year shall not be subject to a separate business tax.
B. If a business uses two or more names at the same location, then an additional license would be needed for each additional name. If a business has a state contractor's license and does both the sales and installation, only one license would be needed. Example, a carpet store sells and installs; the gross receipts would be reported for both.
C. An entity which provides goods, services, music, or amusement by vending machines or coin-operated services shall be subject to one business tax certificate for all such machines or devices within the city and shall combine total gross receipts for all machines or devices located within the city.
D. An entity with billboard(s) shall be subject to one business tax certificate for all such billboard(s) within the city and shall combine total gross receipts for all billboard(s) located within the city.
E. An entity engaged in rental of, lease, or license agreements for residential property or commercial property shall be subject to one business tax certificate for all such properties and shall combine total gross receipts for all properties located within the city.
F. "Administrative and corporate headquarters," as defined by the collector, shall pay a minimum annual business tax.
G. Real Estate Developers and Subdividers as defined by the collector shall pay on gross receipts from the commissions per the lots/houses/ offices of the development. The business tax application shall be remitted at the beginning of the development project.
5.04.080 Evidence of doing business.
The collector shall consider it prima facie evidence that business is being conducted in the city if the entity:
A. Advertises, holds out, or represents that they are in business in the city, by use of sign(s), circular(s), card(s), telephone book(s), or newspaper(s),; or electronic medium, social media, web page(s), or any other method to describe or draw attention to promote sales or draw attendance; or B. Holds an active license or permit issued by a governmental agency or files for a fictitious name indicating that such entity is in business in the City; or C. Makes a sale, takes an order, barters, renders a service or performs any other similar act within the city.
5.04.090 Interstate commerce.
A. None of the taxes provided for by this title shall be applied so as to cause an undue burden upon interstate commerce or violate the equal protection and due process clauses of the constitution of the United States of America and the state of California.
B. A business whose address of record is outside of the city and who does not have a fixed place of business in Visalia and who delivers merchandise to Visalia from outside the state of California is exempt from the Visalia Business Tax by the Interstate Commerce Clause of the United States Constitution. However, if any money is exchanged within the city, the sale is considered consummated in the city, and the business does not qualify for this exemption. In any case where this business tax is believed by an applicant to place an undue burden upon interstate commerce or be in violation of such constitutional clauses, he/she they may apply to the collector for an adjustment of the tax. Such application shall be made within six months after payment of the prescribed tax. The applicant shall, by sworn statement and supporting testimony disclose:
1. The interstate or other character of his/her their business entitling such exemption;
2. The name and location of the business for which the orders are to be solicited or secured;
3. The name of the nearest local or state manager, if any, and his/her their address;
4. The kind of goods, wares, or merchandise to be delivered;
5. The place from which the goods, wares or merchandise are to be shipped or forwarded;
6. The method of solicitation or taking orders;
7. The location of any warehouse, factory, or plant within the State of California;
8. The method of delivery;
9. The name and location of the residence of the applicant;
10. The gross receipts or estimated gross receipts of business; and
11. Other such information as the collector may deem necessary in order to determine the extent, if any, of such undue burden or violation.
C. Additionally, a copy of the order blank, contract form, or other papers used by such individual in taking orders shall be attached to the sworn statement for the information of the collector.
D. The collector shall then conduct an investigation, and shall fix as the tax for the applicant an amount that is reasonable and nondiscriminatory, or if the tax has already been paid, shall order a refund of the amount over and above the tax so fixed. In fixing the tax to be charged, the collector shall have the power to base the tax upon a percentage of gross receipts or any other measure which will assure that the tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the tax as prescribed by this title. Should the collector determine the gross receipts measure of tax to be the proper basis, he/she they may require the applicant to submit a sworn statement of the gross receipts and pay the amount of tax therefore; provided, that no any additional tax due shall not be retroactive, but shall apply at the time of the next regularly ensuing calculation of the applicant's tax any one calendar year shall be required after the business shall have paid an amount equal to the annual tax as prescribed in this title.
5.04.100 Rules, regulations and other fees.
The collector may adopt rules, regulations, and other fees not inconsistent with the provisions of this title as may be necessary or desirable to aid in the enforcement of the provisions of this title. A copy of any such rules, regulations, and other fees shall be available for public inspection in the collector's office. Other fees may be established by the finance director or his/her their designate. Such fees shall be based on the administrative cost to provide such service. A business may be required to furnish names and addresses of independent workers, contractors, sales persons, agents, service workers, persons who receive commissions, etc., that are not employed as an employee of that company. If a business does not submit the information requested, an audit may be done.
5.04.130 Types of documents.
Every entity required to pay a tax under the provisions of this title shall make application to the collector and upon the payment of the prescribed tax, the collector shall issue one of the following:
A. Certificate of Compliance. Such certificate will be issued to an entity that appears to be in compliance with all city ordinances and other regulatory agencies.
B. Statement of Noncompliance Provisional Certificate. Such certificate will be issued to an entity that does not appear to be in compliance with another city ordinance and/or other regulatory agency. Such entity shall also be subject to the provisions of Section 5.04.400.
C. Other Certificate as Prescribed.
1. Such certificate as prescribed by the collector will be issued to an entity as may be necessary or desirable to aid in the enforcement of the provisions of this title.
2. In addition, the following documents may be issued by the collector when an entity fails to submit an application for a business tax certificate and/or fails to pay the prescribed tax:
D. Warning Notice. A warning notice may be issued to an otherwise legally operating entity which has failed to make application for a business tax certificate and/or pay the prescribed tax.
E. Cease and Desist Order. A "cease and desist order" shall be issued to any entity which:
1. Is in noncompliance with any other city ordinance or regulatory agency, or
2. Maintains all business offices outside of the city, and employs peddlers and/or solicitors within the city and does not have a current business tax certificate.
F. Citation. A citation may be issued to an entity which violates the business tax ordinance. The citation shall be subject to the provisions of Article 3, Sections 5.04.400 through 5.04.430.
5.04.150 Statement and records.
A. No sworn statement shall be conclusive to the city 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 sworn statements and each of the several items therein contained shall be subject to audit and verification by the collector, his/her their deputies or authorized employees of the city, who are hereby authorized to examine, audit, and inspect such books and records of any taxable business, as may be necessary in their judgment to verify or ascertain the amount of tax due.
B. All entities subject to the provisions of the title shall keep complete records of business transactions, including sales receipts, purchases, and other expenditures, and shall retain all such records for examination by the collector. Such records shall be maintained for a period of at least the current calendar year plus three prior years. No entity required to keep records under this section shall refuse to allow authorized representatives of the collector to examine said records at reasonable times and places.
5.04.160 Information confidential.
It is unlawful for the collector or any individual having an administrative duty under the provisions of this title to make known in any manner whatever the business affairs, operations or information obtained by an investigation of records and equipment of any entity required to submit such information to the collector, or any other entity examined or visited in the discharge of official duty, or the amount of source of income, profits, losses, expenditures, or any particular thereof, set forth in any statement or application, to be seen or examined by any individual. Provided, that nothing in this section shall be constructed to prevent:
A. Disclosure to, or examination of records and equipment by, another city official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this title, or collecting taxes imposed thereunder; B. Disclosure of information to, or examination of records by, federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists; or to a grand jury or court of law, upon subpoena; C. Disclosure of information and/or the results of an examination of records of a particular taxpayer, or relating to a particular taxpayer, in judicial proceedings brought to determine the existence and/or the amount of any tax liability of the particular taxpayer to the city or to the city attorney for the defense of the city or any employee or official thereof, against a claim filed by the taxpayer against the city of or any employee or official thereof; D. Disclosure after filing of a written request to that effect, to the taxpayer himself themself, or to his/her their successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided that upon review of, however, that the city attorney approves each such disclosure and that the collector may refuse to make any disclosure referred to in this paragraph when in his/her their opinion the public interest would suffer thereby; E. Disclosure of nonfinancial information and account status, including but not limited to balances due, business name(s) and address(es), the name(s) and address(es) of officers of corporations and members of partnerships to whom tax certificates have been issued, and the general type, profession, and/or nature of such business; F. Disclosure by way of public meeting or otherwise of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for a refund of taxes, or submits an offer of compromise with regard to a claim asserted against him/her them by the city for delinquent taxes, or when acting upon any other matter; G. Disclosure of general statistics regarding taxes collected or business done in the city; H. Disclosure of information and records as may be required under state law applicable to chartered cities or required by subpoena served on the city.
5.04.180 Appeal.
Any individual aggrieved by any decision of the collector with respect to the business tax requirements or business tax due may file a notice of appeal with the director of finance. The applicant shall by affidavit and supporting testimony show such information as the director of finance may deem necessary in order to determine the proper decision. The director of finance may conduct his/her their own investigation including but not limited to an audit of the applicant's business records and shall have the administrative duty of determining the proper decision. Any applicant aggrieved by the decision of the director of finance shall have the right of appeal to the city council by filing a notice of appeal with the clerk of the city council. Said appeal must be filed by the applicant in writing with the clerk of the city council within thirty (30) days after payment in the case of a claim for refund, or within thirty (30) days from the date of mailing of written notice to the applicant in the case of a waiver and shall state the specific grounds upon which the appeal claim is founded. The city council shall thereupon fix a time and place for hearing such appeal. The clerk of the city council shall give notice to such individual of the time and place of the hearing by serving it personally or by depositing it in the United States Post Office in Visalia, California, postage prepaid, addressed to such individual at his/her their last known address. The city council shall have the authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this title.
5.04.190 Close or change of ownership.
In the event any business subject to a business tax closes or changes ownership, said business shall file a closing return with the city, in such form as the collector may prescribe, and shall pay the business tax due thereon within thirty (30) days from the time of closing or changing ownership of said business. A closing return shall be considered delinquent if not filed within the specified time and may be subject to the administrative fee as specified in the current Business Tax rates and fees set by resolution of the city council. The processing fee for delinquent filings shall be ten dollars ($10.00) per month delinquent after the initial thirty (30) days.
5.04.210 Duplicate certificate.
A duplicate certificate may be issued by the collector to replace any certificate previously issued which has been lost or destroyed, upon the certificate holder filing statement of such fact, and at the time of filing such statement paying to the collector a service charge, as set by the director of finance resolution of the city council.
5.04.220 Posting/keeping business tax certificates.
A. Any entity transacting and carrying on business at a fixed place of business in the city shall keep the certificate posted in a conspicuous place upon the premises where such business is carried on.
B. Any individual transacting and carrying on business but not operating at a fixed place of business in the city shall keep the certificate upon his/her their person at all times while transacting and carrying on the business for which it was issued. If the business activity, of which business tax has been paid, is conducted by more than one individual, each individual shall keep a copy of the certificate upon his/her their person at all times while transacting and carrying on the business for which it was issued. An accessible and transmittable electronic copy is acceptable for the purposes of this part.
5.04.230 Tax--How and when payable.
All business tax certificates issued pursuant to this title shall expire, unless renewed on the date on which the tax is payable for the succeeding certificate. In no case shall any mistake made by the collector in stating the amount of the business tax fee prevent or prejudice the collection of what shall be actually due from anyone carrying on any trade, calling, profession, or occupation subject to a tax under this title.
A. All business taxes due under the terms of this title, except the first tax payment for businesses with a fixed place of business, shall be payable in advance of the applicable tax period prescribed as follows:
1. Unless otherwise specifically provided, all annual taxes under the provisions of this title shall be due and payable in advance, on the first day of July, and shall be considered delinquent if unpaid at five p.m. close of business on the last business day of the month in which the business tax was due and payable.
2. Unless otherwise specifically provided, all semi-annual taxes under the provisions of this title shall be due and payable in advance, on the first day of January and July, and shall be considered delinquent if unpaid at five p.m. close of business on the last business day of the month in which the business tax was due and payable.
3. Unless otherwise specifically provided, all quarterly taxes under the provisions of this title shall be due and payable in advance, on the first day of January, April, July and October and shall be considered delinquent if unpaid at five p.m. close of business on the last business day of the month in which the business tax was due and payable.
4. Unless otherwise specifically provided, all monthly taxes under the provisions of this title shall be due and payable in advance, on the first business day of each month for which the business tax is due and payable and shall be considered delinquent if unpaid at five p.m. close of business on that date.
5. Unless otherwise specifically provided, all daily taxes under the provisions of this title shall be due and payable in advance, on the effective date and shall be considered delinquent if unpaid at close of business on the last business day prior to or on the effective date five p.m. on that date.
B. An entity which opens a new business with a fixed place of business any time during the year shall apply for a business tax certificate upon commencement of such business and shall be delinquent if taxes due under the provisions of this title are not paid on or before the last business day of the month in which business commenced.
5.04.250 Refunds.
No refund of erroneously paid taxes collected under this title shall be allowed whole or in part unless a claim for refund is filed with the collector upon a form in a manner prescribed by the collector within a period of three years from the last day of the calendar month for which the payment was made, and all such claims for refund of the amount of the payments must be filed with the collector in writing in the manner prescribed by the collector. Upon the filing of such a claim and when determination determined that a an overpayment has had been made, the collector may refund the amount overpaid. Such refund may be made only under the following conditions:
A. Where a refund is specifically authorized by the provision of law requiring payment of the license, permit or application tax; B. Where the applicant for any business tax certificate has not, at any time after the commencement of the period or term during which the requested business tax certificate would have been effective, commenced or engaged in the business or occupation, or performed any act, for which the business tax certificate was required; C. Where the money paid was not required by law, or, was erroneously or illegally collected or received by the city through mistake, inadvertence or error of law or of fact, and whether paid or charged under any provision of this title, or otherwise.
5.04.260 Annual adjustment of fixed tax for inflation.
In July of each year, the director of finance city council shall adjust the prior year's fixed business taxes (including but not limited to minimum, maximum and other flat and/or fixed business taxes) according to a three year moving average change in the United States All Urban Consumer Price Index. The intent of this process is to adjust for impact of inflation.
5.04.270 Business tax--Gross receipts.
A. Every entity which engages in business in the city (except those covered in Article 2 of Chapter 5.04 and except those included in Section 5.04.280(C) through 5.04.280(G)), shall pay a tax based upon gross receipts, unless specifically enumerated in this article, resulting from business activities within the city limits at the rates and ratios as set forth, by classification, in the following sections of this title.
B. The collector will determine the classification of the business. In any case where an individual believes that his/her their business is not assigned to the proper classification under this title because of circumstances peculiar to it, as distinguished from other businesses of the same kind, he/she they may apply to the collector for reclassification. Such application shall contain such information as the collector may deem necessary to determine whether the applicants individual business is properly classified. The proper classification is the classification which, in the opinion of the collector, most nearly fits the applicants individual business.
C. The reclassification shall not be retroactive, but shall apply at the time of the next regularly ensuing calculation of the applicant's tax. No business shall be reclassified more than once in one year.
5.04.280 Business tax fees.
A. All entities subject to business tax based on gross receipts shall pay said tax based on the following schedule and subject to the semi-annual minimum and maximum tax as set by resolution of the city council:
1. Professionals $1.25 per thousand
of gross receipts
2. Services 1.00 per thousand
of gross receipts
3. Retailers, Hotels .70 per thousand
of gross receipts
4. Manufacturers .40 per thousand
of gross receipts
The minimum and maximum taxes for professionals are per individual, while the minimum and maximum taxes for the other categories are per entity.
B. State Licensed Contractors. A person engaged in the business of contracting is included in this category and shall pay a flat rate semi-annual tax as set by resolution of the city council, unless the business is also engaged in activities covered under subsection (A) of this section.
C. Public Dance. Every entity carrying on, promoting or managing a public dance shall pay a flat daily tax as set by resolution of the city council.
D. Cultural Performance. Every entity carrying on, promoting, or managing a cultural performance for not more than ninety (90) consecutive days shall pay either a flat daily tax, a flat monthly tax, or a business tax which is calculated on gross receipts at one dollar ($1.00) per one thousand dollars ($1,000.00) or fraction thereof on gross receipts. The flat rate, minimum and maximum tax shall be set by resolution of the city council. Entities classified as a cultural performance shall include, but are not limited to:
1. Musical performance,
2. Comedy and/or magic show,
3. Truck and/or tractor pulls,
4. Vehicle and/or bicycle races, and
5. Sporting events.
E. Special Event. Every entity, except nonprofit, tax exempt entities, carrying on, promoting, or managing a special event for not more than ninety (90) consecutive days shall pay either a flat daily tax, a flat monthly tax, or a business tax which is calculated on gross receipts at one dollar ($1.00) per one thousand dollars ($1,000.00) or fraction thereof on gross receipts. The flat rate, minimum and maximum tax shall be set by resolution of the city council.
F. Temporary Business. Itinerant vendors and temporary businesses which are not specifically taxed in subsections (A) through (E) of this section and are carried on, managed, or conducted for not more than ninety (90) consecutive days, shall pay either a flat daily tax, a flat monthly tax, or a business tax which is calculated on gross receipts at one dollar ($1.00) per one thousand dollars ($1,000.00) or fraction thereof on gross receipts. The flat rate, minimum and maximum tax shall be set by resolution of the city council.
G. Distribution of Printed Matter. Every entity conducting, carrying on or managing the business of advertising, by means of distributing dodgers, handbills, circulars, printed advertisements, cards, tickets or advertising samples of merchandise, shall pay either a flat daily tax or a flat monthly tax.
The flat daily and monthly tax shall be set by resolution of the city council.
For purposes of this section, the words "conducting", "carrying on," or "managing the business" are defined to be and are construed to mean the doing of any act or series of acts of distributing or advertising. Per Section 9.24.010 of the Municipal Code distribution of printed matter is declared unlawful within the City of Visalia.
H. Every entity not having a fixed place of business within the city who enters the city to deliver, collect, gather, load or pick up passengers, materials, goods, wares or merchandise of any kind by vehicle, or who enters the city to provide any service by the use of vehicle, shall have the option of paying either an annual business tax for each vehicle (a trailer shall be deemed to be a separate vehicle for purpose of this section) or a business tax based on gross receipts using the category for manufacturers in subsection (A) of this section.
5.04.290 Enforcement.
A. It shall be the duty of the collector to enforce each and all of the provisions of this title, and the chief of police, chief of the fire department, or chief building official, shall render such assistance in the enforcement hereof as may be required by the collector, city manager or the city council.
B. In accordance with Section 836.5 of the Penal Code of the state of California, the director of finance and the collector are authorized to make arrests without warrants, and issue citations, for the violation of the provisions of this title.
C. The collector and each of his/her their assistants and any city police officer and any fire inspector shall have the power and authority to enter free of charge, at any reasonable time, any place of business within the city and request to see its business tax certificate.
5.04.320 Environmental findings of fact.
The city council finds and determines that the adoption of this title is exempted from the provisions of the California Environmental Quality Act (CEQA) under the provisions of the State CEQA Guidelines Section 15273 in that this title establishes and modifies existing charges and taxes imposed by the city for the purpose of meeting operating expenses, including employee wage rates and benefits and capital projects necessary to maintain services within the existing service area. The city council further finds that the adoption of this title is exempt from CEQA under the provisions of the State CEQA Guidelines Section 15061 (b)(3) in that there is not a possibility that the provisions enacted by this title will effect a substantial change in the environment.
5.04.330 United States Constitution or state of California Constitution.
A. Nothing in this title shall be deemed or construed to require payment of such tax as herein prescribed from any entity transacting and carrying on any business which is exempt from the payment of such tax as is herein prescribed by virtue of the Constitution of the United States or applicable statues of the United States or of Section 14 of Article XIII of the Constitution of the state of California.
B. Any entity claiming an exemption pursuant to this section shall file a sworn statement with the collector stating the facts upon which exemption is claimed, and in the absence of such statement substantiating the claim, such entity shall be liable for the payment of the taxes imposed by this title.
5.04.350 Artists and art exhibits.
The provisions of this title shall not require a business tax payment by an individual artist for the exhibition or display of paintings, sculpture, photographs, or other fine arts in public buildings, or in any business establishment, if the exhibition or display is incidental to the primary business conducted on the premises, and is primarily for cultural and for educational purposes, and if the annual gross receipts from the sales of his/her their art work within the city do not result in annual gross receipts in excess of twelve thousand five hundred dollars ($12,500.00). (Ord. 9517 § 1 (part), 1995: prior code § 6214)
5.04.390 Exemptions--Revocation of.
An exemption will be revoked whenever there is reason to believe that any entity, to whom a tax-exempt status was granted pursuant to Section 5.04.330 through Section 5.04.380 has furnished false or misleading information in the sworn statement. If the revoked exemptee chooses to appeal the revocation, he/she they must follow the appeal process specified in Section 5.04.180.
5.04.400 Violation--Penalty provision.
Any violation of any provision of this title shall be punishable as a misdemeanor. Upon recommendation of the prosecuting attorney and city agency, the misdemeanor could be reduced to an infraction.
A. Any individual who knowingly or intentionally misrepresents to any officer or employee of the city any material fact herein required to be provided is in violation of the title. Additionally, any individual who on a sworn statement states information as a true material fact which he/she they knows to be false is guilty of perjury.
B. Any individual who, with the intent to defraud the city or evade his/her their business tax obligation misrepresents in any business tax form which said individual files, any fact material to the determination of a correct amount of business tax due shall be assessed a penalty of one hundred (100) percent of the amount of business tax due plus one percent interest per month, or a portion thereof, on the unpaid amount from the date the tax was due until the date of payment. as set by resolution of the city council.
C. Any individual who has a business certificate issued under this chapter and has said certificate in his/her their possession or under his/her their control and who fails to exhibit the same upon request is in violation of the title.
5.04.420 Infraction.
Any individual guilty of an infraction shall be punishable by a fine not to exceed the amount set by resolution of the city council for the first, second, a fifty dollar ($50.00) fine for the first offense, one hundred dollars ($100.00) for the second, and two hundred fifty dollars ($250.00) for the third, and subsequent offenses.
Section 3. Title 5 of the Visalia Municipal Code is hereby amended by revising Chapter 5.28 to include the modifications described below with newly added language listed in italics/underline and deleted language listed in strikeout. Chapter 5.28 shall henceforth read as follows:
Chapter 5.28
HOTELS AND LODGING HOUSES AND SHORT-TERM RENTALS
5.28.010 Definitions.
For the purposes of this chapter the term "lodging house" shall be deemed to be and is declared to include any building in which sleeping rooms or apartments are or may be let or hired to six or more individuals for one or more nights, whether then compensation therefore be paid in money, labor, merchandise or otherwise, and includes hotels and apartment houses where cooking is not done in any room or apartment except in the general kitchen used and operated in connection with the business of such lodging house, hotel or apartment house Unless it is apparent from the context that another meaning is intended, words and/or phrases, when used in this section shall have the meaning respectively ascribed to them in section 5.04.010 of this title and shall be interpreted and construed accordingly.
5.28.020 Register.
Every individual or entity conducting or operating a lodging house or hotel short-term rental in the city whether as owner, lessee, agent or manager, shall keep a register wherein every guest and every individual hiring, obtaining or procuring lodging or the right to occupy or use any room or rooms, in such lodging house or hotel short-term rental, shall be required to inscribed provide his/her their true name at the time of procuring such lodging or the right to occupy or use any room or rooms in such lodging house or short-term rental hotels. Said register shall show the time the name was inscribed provided (the day, the month and the year), also the room or rooms hired or procured by such guest or lodger. Said register shall be kept in a conspicuous place readily available for viewing upon the request of in said lodging house, or hotel and shall be, at all times, open to inspection by any other guest or lodger in said lodging house and to the chief of police and to all other city police officers. An accessible and transmittable electronic copy is acceptable for the purposes of this part.
5.28.030 Registration required.
Before furnishing any lodging, permitting any individual to use or occupy any room or rooms in any such lodging house or short-term rental hotel, the owner, operator, manager or individual in charge thereof shall require registration as provided in 5.28.010.
5.28.040 Unlawful to register under fictitious name.
Every guest and every individual hiring, obtaining or procuring lodging or the right to occupy or use any room or rooms, in any lodging house or short-term rental hotel in the city, at the time of hiring, obtaining or procuring such lodging or the right to use or occupy any such rooms or rooms and before occupying or using any room or rooms in any such lodging house or short-term rental hotel, must register as provided in Section 5.28.010 of this title and it is unlawful for any individual to so register under a fictitious name or under any name not the true name of the individual so registering.
Section 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstances, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivision, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Visalia hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.
Section 5. Construction. The City Council intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent.
Section 6. Effective Date. This Ordinance shall take effect thirty days after its adoption.
Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law.