Licensing By Cities - Licensing For Revenue And Regulation - Business & Professions - CA

Section § 16000

This law allows cities in California to require businesses operating within their boundaries to have a license and pay a fee. The fee should fairly represent the amount of business done within the city, especially for businesses that operate in multiple areas. Nonprofit organizations and certain religious figures, like ministers or rabbis, are exempt from these fees. Also, before someone can get a business license to work as a contractor, the city must check that they are properly licensed by the relevant state board.

(a) The legislative body of an incorporated city may, in the exercise of its police power, and for the purpose of regulation, as herein provided, and not otherwise, license any kind of business not prohibited by law transacted and carried on within the limits of its jurisdiction, including all shows, exhibitions and lawful games, and may fix the rates of the license fee and provide for its collection by suit or otherwise. Any legislative body, including the legislative body of a charter city, that fixes the rate of license fees pursuant to this subdivision upon a business operating both within and outside the legislative body’s taxing jurisdiction, shall levy the license fee so that the measure of the fee fairly reflects that proportion of the activity actually carried on within the taxing jurisdiction.

(b) No license fee levied pursuant to subdivision (a) that is measured by the licensee’s income or gross receipts, whether levied by a charter or general law city, shall apply to any nonprofit organization that is exempted 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, or to any minister, clergyman, Christian Science practitioner, rabbi, or priest of any religious organization that has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code or a successor to that section.

(c) Before a city, including a charter city, issues a business license to a person to conduct business as a contractor, as defined in Section 7026, the city shall verify that the person is licensed by the Contractors’ State License Board.

business licensing license fee nonprofit exemption

Section § 16000.1

If a city in California requires a social security number to issue a business license, they must also accept a driver's license, taxpayer ID, or municipal ID instead. When applying for a business license, you need to provide an address where you can receive legal documents; this address can be a P.O. box and will be publicly accessible. However, your personal info like your residential address or ID numbers stays confidential and isn't made public, except when it's necessary for running the license program or if a legal order demands it. A 'city' in this context includes all types of city governments, and 'personal information' refers to things like your ID numbers, residential address, and income details.

(a)

(1) A city that licenses businesses carried on within its jurisdiction shall accept a California driver’s license or identification number, an individual taxpayer identification number, or a municipal identification number in lieu of a social security number if the city otherwise requires a social security number for the issuance of a business license.

(2) A city that licenses a business carried on within its jurisdiction shall require the applicant to provide an address where the individual consents to receive service of process. An acceptable address for this purpose shall include a post office box or private mailbox that complies with paragraph (2) of subdivision (b) of Section 17538.5. This address shall be available for public inspection.

(3) Personal information collected for purposes of issuing a business license by a city shall be confidential, shall not be available to the public for inspection, and shall not be disclosed except as required to administer the licensure program or comply with a judicial warrant, subpoena, or court order.

(b) For purposes of this section, the following definitions shall apply:

(1) “City” includes a charter city and a city and county.

(2) “Personal information” means all of the following:

(A) An applicant’s residential address if the applicant provides a different address pursuant to paragraph (2) of subdivision (a).

(B) A California driver’s license or identification number, an individual taxpayer identification number, a municipal identification number, and a social security number.

business license California driver's license individual taxpayer identification number

Section § 16000.2

If you're applying for a new or renewed business license, permit, or similar document in a city or county, they must give you written notice about certain health and safety requirements specified in another section of the law.

A city, county, or city and county that issues business licenses, equivalent instruments, or permits within its jurisdiction shall provide written notice of the requirements of Section 118600 of the Health and Safety Code to each applicant for a new or renewed business license, equivalent instrument, or permit.

business licenses permits written notice

Section § 16000.3

If you're applying for or renewing a business license in a regulated industry, you need to show you're part of the National Pollutant Discharge Elimination System (NPDES) program. This means providing information on your facilities and specific permits under penalty of perjury. The city checks and confirms this data before issuing the license. They also share this information with the State Water Resources Control Board if needed. For renewals, cities can offer a provisional license for three months for businesses to meet these demands. These rules apply to applications starting January 1, 2020, except for cities that don't handle such licenses, and they don't add extra legal responsibilities on the city concerning the NPDES program.

(a) When applying to a city for an initial business license, equivalent instrument, or permit, or renewal thereof, a person who conducts a business operation that is a regulated industry, as defined in Section 13383.5 of the Water Code, shall demonstrate enrollment with the National Pollutant Discharge Elimination System (NPDES) permit program by providing all of the following information, under penalty of perjury, on the initial business license, equivalent instrument, or permit, or renewal thereof, application:

(1) The name and location of facilities operated by the person who conducts that business.

(2) All primary Standard Industrial Classification Codes, as defined in Section 25244.14 of the Health and Safety Code, for the business.

(3) Any of the following for each facility operated by the person of that business:

(A) The stormwater permit number, known as the Waste Discharger Identification number (WDID), issued for the facility by the State Water Resources Control Board.

(B) The WDID application number issued for the facility by the State Water Resources Control Board.

(C) The “notice of nonapplicability” (NONA) identification number issued for the facility by the State Water Resources Control Board.

(D) The “no exposure certification” (NEC) identification number issued for the facility by the State Water Resources Control Board.

(b) Prior to the issuance or renewal of the business license, equivalent instrument, or permit, the city shall determine whether any of the primary Standard Industrial Classification Codes are applicable to a General Permit for Storm Water Discharges Associated with Industrial Activities Excluding Construction Activities, as referenced in Section 13383.5 of the Water Code, and if applicable, the city shall confirm that the WDID, WDID application number, NONA, or NEC corresponds to the business requesting the initial business license or business license renewal. To determine whether any of the primary Standard Industrial Classification Codes are applicable to a General Permit for Storm Water Discharges Associated with Industrial Activities Excluding Construction Activities, as referenced in Section 13383.5 of the Water Code, the city may use information provided by the State Water Resources Control Board, including information posted pursuant to Section 13383.10 of the Water Code for these purposes. To confirm the WDID, WDID application number, NONA, or NEC, the city shall only need to keep record of the applicable documentation.

(c) The city shall transfer compliance information received in subdivision (a) to the State Water Resources Control Board as requested by the board. The city shall make the identification number provided in the applicable documentation available to the public upon request in a manner consistent with the procedures of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(d) For business license, equivalent instrument, or permit renewals, a city may develop a provisional license procedure that provides businesses three months to comply with the requirements of this section.

(e) “City” includes a charter city and a charter city and county.

(f) This section shall apply to applications for initial business licenses, equivalent instruments, or permits, and renewals thereof, submitted on and after January 1, 2020.

(g) This section shall not apply to a city that does not issue or renew, or have an application process for issuing or renewing, business licenses, equivalent instruments, or permits that include a business license.

(h) This section shall not be construed to impose any additional liability on a city under the National Pollutant Discharge Elimination System permit program for nonenrollment under a General Permit for Storm Water Discharges Associated with Industrial Activities Excluding Construction Activities by a person who conducts a business operation that is a regulated industry, as defined in Section 13383.5 of the Water Code.

(i) For purposes of this section, a business license, equivalent instrument, or permit includes a business license, equivalent instrument, or permit issued solely for the purpose of raising revenue.

NPDES enrollment regulated industry business license application

Section § 16000.5

In California, cities cannot require cafe musicians to get a regulatory license or pay for one. A cafe musician is someone who plays an instrument at places where food or drinks are sold and is hired as either an employee or independent contractor. This does not apply to owners, managers, or operators of those places.

Notwithstanding Section 16000, no incorporated city shall require a regulatory license or impose a regulatory license fee with respect to cafe musicians.

“Cafe musician,” for the purposes of this section, means any person playing a musical instrument in any place or establishment where food or alcoholic beverages are sold, offered for sale or given away, who is an employee, or independent contractor, of such place or establishment. “Cafe musician” does not include an owner, manager, or operator of such place or establishment.

cafe musicians regulatory license license fee exemption

Section § 16000.7

This law states that cities in California cannot require federally chartered veterans' organizations to get a license or pay a fee when they are asking for donations to support veterans. This decision aims to ensure that there is a uniform rule across the state. However, if these organizations are involved in business activities like selling products or services, those activities can still be regulated and licensed.

(a) The Legislature hereby finds and declares that the prohibition on the imposition of regulatory licenses and license fees on federally chartered veterans’ organizations that solicit donations as specified in this section is in need of uniform statewide regulation and constitutes a matter of statewide concern that shall be governed solely by this section.

(b) Notwithstanding Section 37101 of the Government Code, Section 16000 of this code, or any other provision of law, no city, including a charter city, shall require a regulatory license or impose a regulatory license fee with respect to the solicitation of donations for the support of veterans by federally chartered veterans’ organizations specified in Title 36 of the United States Code.

(c) This section shall not be construed to prohibit licensing and regulation of business-related activities, such as those involving the sale or exchange of goods or services.

veterans organizations federally chartered donation solicitation

Section § 16001

In California, any honorably discharged soldier, sailor, or marine from several historical conflicts, who cannot work due to physical limitations and is a registered voter, is allowed to sell goods without having to pay any local or state license fees. This does not apply to selling alcoholic drinks. The local government must provide them with a license to do so at no charge.

Every honorably discharged or honorably relieved soldier, sailor, or marine of the United States or Confederate States who served in the Civil War, any Indian war, the Spanish-American War, any Philippine insurrection, the Chinese Relief Expedition, the World War of 1914 and years following, or World War II, who is physically unable to obtain a livelihood by manual labor, and who is a voter of this state, may distribute circulars, and hawk, peddle, and vend any goods, wares or merchandise owned by him, except spirituous, malt, vinous, or other intoxicating liquor, without payment of any license tax or fee whatsoever, whether municipal, county or state, and the legislative body shall issue to such soldier, sailor or marine, without cost, a license therefor.

honorably discharged veterans Civil War World War II

Section § 16001.5

This law allows military veterans who served during specific periods, and who are physically unable to work due to disability, to sell goods without having to pay license taxes or fees in California. This applies as long as they are state residents and do not sell alcohol. They can sell items like goods, wares, and merchandise, and local governments are required to issue licenses to them for free.

Every person who was honorably discharged or honorably relieved from the military, naval or air service of the United States who served on or after June 27, 1950, and prior to February 1, 1955, or on or after August 5, 1964, and prior to a future date to be established by the Legislature, who is physically unable to obtain a livelihood by manual labor, and who is a resident of this state, may distribute circulars, and hawk, peddle, and vend any goods, wares or merchandise owned by him, except spirituous, malt, or vinous, or other intoxicating liquor, without payment of any license tax or fee whatsoever, whether municipal, county or state, and the legislative body shall issue to such person, without cost, a license therefor.

veterans military service honorably discharged

Section § 16001.7

If you've been honorably discharged from the U.S. military and live in California, you can sell your own goods without having to pay for a business license. This doesn't include selling alcoholic drinks. The local government has to give you a license for free.

Every person who is honorably discharged or honorably relieved from the military, naval, or air service of the United States and who is a resident of this state, may distribute circulars, and hawk, peddle and vend any goods, wares, or merchandise owned by him or her, except spiritous, malt, or vinous, or other intoxicating liquor, without payment of any business license fee, whether municipal, county, or state, and the legislative body shall issue to that person, without cost, a license therefor.

honorably discharged military veterans business license exemption

Section § 16001.8

If you're a veteran who was honorably discharged and live in California, you don't have to pay local business license fees for a business you own by yourself, whether you're selling goods or providing services. This applies everywhere in the state, even in cities with their own rules, because it's considered an important statewide issue.

(a) A veteran who is honorably discharged or honorably relieved from the Armed Forces of the United States and is a resident of this state shall not be required to pay any local business license fees for a business selling or providing services if the veteran is the sole proprietor of the business.

(b) The Legislature finds and declares that the prohibition on the imposition of local business license fees on veterans as specified in this section is a matter of statewide concern and is not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

veteran benefits honorably discharged local business license fees

Section § 16002

This law says that commercial travelers in California who sell things wholesale do not have to pay a license fee, and they won't face penalties for not paying one.

No license fee may be collected from, nor any penalty for the nonpayment thereof enforced against, any commercial traveler whose business is limited to goods, wares, and merchandise sold or dealt in at wholesale in this State.

commercial traveler wholesale goods license fee exemption

Section § 16002.1

If you're a real estate auctioneer and all you do is auction real estate, you don't have to pay a license fee to auction properties, except in the city where your business is permanently located.

No license fee for the privilege of auctioning real estate may be collected from any real estate auctioneer, whose business is limited exclusively to auctioning real estate, except by the city in which he has a permanent place of business.

real estate auctioneer license fee exemption auctioning real estate

Section § 16002.2

This law states that cities in California can't charge any special taxes or fees beyond those based on the money earned from renting, leasing, or operating laundry machines, unless the earnings are from within the city itself. They can't impose a minimum tax based on location or the number of machines either. However, this rule doesn’t apply to laundromats owned by retail businesses offering coin-operated machines to the public.

No city shall impose a license fee or tax, other than a fee or tax based on gross receipts, for the privilege of renting, leasing, or operating laundry equipment, whether or not coin operated, upon any individual or firm whose business is limited exclusively to renting, leasing, or operating such equipment, which license fee taxes or has the effect of taxing any gross receipts, other than gross receipts actually derived from the conduct of business within such city. For purposes of this section, the tax shall be based on the entire gross receipts of the taxpayer derived within the city, and no minimum tax shall be imposed upon any business location, nor shall such tax be measured by the number of business locations or machines of the taxpayer within the city.

This section shall not apply to coin-operated laundry equipment owned and operated by a retail establishment providing coin-operated laundry equipment for general public use.

laundry equipment license fee tax based on gross receipts

Section § 16002.5

This law states that cities cannot charge any license fees or taxes on renting, leasing, or operating coin-operated vending machines, except those based on the gross income directly generated within the city. The fees or taxes must reflect the total money made from these business activities in the city and should not be determined by the number of machines or business locations. If a business does not report its income from these machines to the city, it risks losing its license. The city can also request audits and review tax documents related to the machines' income. However, this rule does not affect chartered cities or chartered city-counties.

No city shall impose a license fee or tax, other than a fee or tax based on gross receipts, for the privilege of renting, leasing, or operating coin-operated vending machines, upon any individual or firm whose business is limited exclusively to renting, leasing, or operating such machines, which license fee or tax has the effect of taxing any gross receipts other than gross receipts which are directly attributable to the business activities conducted within the city. For the purposes of this section, the license fee or tax shall be based on the entire gross receipts which are directly attributable to the business activities conducted within the city, and no minimum license fee or tax shall be imposed upon any business location, nor shall such license fee or tax be measured by the number of business locations or machines of the taxpayer within the city.

Any license to conduct a business issued by a city in connection with which the city imposes a license fee or tax upon coin-operated vending machines within the city, may be revoked for failure of the licensee to report to the city the gross receipts from such machines. The city may demand an audit of any such licensee and require him to submit a copy of the state sales and use tax returns filed relative to such machines, and a copy of any other tax statement filed with any government entity by him or by any other individual or firm owning, renting, leasing, or operating such machines disclosing the gross receipts received from owning, renting, leasing, or operating such machines.

The provisions of this section shall not apply to a chartered city or to a chartered city and county.

coin-operated vending machines gross receipts license fee

Section § 16003

This law section says that it doesn't cancel any laws that allow city governments to charge fees for revenue purposes.

This article does not repeal any act vesting municipal corporations with power to license for revenue purposes.

municipal corporations license for revenue city governments

Section § 16004

If a business is found guilty of breaking a specific health and safety code about human cloning, it will lose its operating license under this chapter.

Any license issued to a business pursuant to this chapter shall be revoked for a violation of Section 24185 of the Health and Safety Code, relating to human cloning.

license revocation human cloning violations business license

Section § 16005

This law says that when a city in California is calculating any local taxes or fees on cannabis retailers, they should not count the cannabis excise tax or certain sales and use taxes as part of the retailer’s total income. Also, when this law mentions a 'city,' it includes both regular cities and those with their own charter, as well as combined city-county governments.

(a) A city shall not include in the definition of gross receipts, for purposes of any local tax or fee imposed by the city on a cannabis retailer licensed under Division 10 (commencing with Section 26000), the amount of any cannabis excise tax imposed under Section 34011.2 of, or any sales and use taxes imposed under Part 1 (commencing with Section 6001) of, Part 1.5 (commencing with Section 7200) of, or Part 1.6 (commencing with Section 7251) of, Division 2 of the Revenue and Taxation Code, or Section 35 of Article XIII of the California Constitution.

(b) For purposes of this section, “city” includes a charter city and a city and county.

cannabis retailers local tax gross receipts

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