§ 5.04.040. Exemptions.  


Latest version.
  • A.

    Exemption By Virtue of Constitution or Other Law. Nothing in Chapters 5.04 or 5.08 of this code will be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes or laws of the United States or of the state from the payment of such taxes required under Chapter 5.04 and Chapter 5.08.

    B.

    Interstate Commerce. None of the license taxes provided for by Chapters 5.04 or 5.08 of this code will be applied as to occasion an undue burden upon interstate commerce. In any case where a license tax is believed by a licensee or applicant for license to place an undue burden upon such commerce, such person may apply to the tax collector for an adjustment of the tax so that it will not be discriminatory or unreasonable as to such commerce. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant must, by affidavit and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the tax collector may deem necessary in order to determine the extent, if any, of such undue burden on such commerce. The tax collector will then conduct an investigation and after first having obtained the written approval of the city attorney, and fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or if the license tax has already been paid, will order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the tax collector will have the power to base the license tax upon a percentage of gross receipts or any other measure which will assure that the license tax assessed is uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by Chapters 5.04 and 5.08 of this code. Should the tax collector determine the gross receipts measure of license tax to be the proper basis, the tax collector may require the applicant to submit, either at the time of termination of applicant's business in the city or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor, provided that no additional license tax during any one calendar year will be required after the licensee has paid an amount equal to the annual license tax, as prescribed in Chapters 5.04 and 5.08 of this code.

    C.

    Charitable and Nonprofit Organizations. The provisions of Chapters 5.04 and 5.08 of this code will not be deemed or construed to require the payment of a license tax to conduct, manage or carry on any business, occupation or activity from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any individual; nor will any license tax be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, amateur theatrical group, military, state, county or municipal organization or association whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objects for which such organization or association was formed and from which profit is not derived, either directly or indirectly, by any individual; provided, however, that nothing in this section will be deemed to exempt any such organization or association from complying with any of the provisions of Chapters 5.04 and 5,08 of this code requiring a permit from the city to conduct, manage or carry on any profession, trade, calling or occupation. If a nonprofit organization merely sponsors an event and only receives a percentage of the receipts, or receives a specified amount or fee, then each person conducting a business at the event must obtain a business license and pay the applicable business license tax in accordance with the provisions of Chapters 5.04 and 5.08.

    D.

    Disabled Veterans. No license tax will be required to be paid by any person who has received an honorable discharge or release from active duty in one of the United States armed services, who is physically unable to obtain a livelihood by manual labor and who is a voter of this state.

    E.

    Limited Gross Receipts. Minors and adults 65 years of age or older who are engaged in a business with gross receipts under two thousand five hundred dollars per year are not required to obtain a business license or pay a license tax.

    F.

    Verified Statement Required. Any person claiming an exemption pursuant to this section must file a verified statement with the tax collector, stating the facts upon which exemption is claimed.

    G.

    License—Issuance. The tax collector must, upon a proper showing contained in the verified statement, issue a license to such person claiming exemption under this section without payment to the city of the license tax required by Chapters 5.04 and 5.08 of this code.

    H.

    License—Revocation. The tax collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption provided,

(Ord. No. 719, § 3(Exh. A), 6-27-2017)