Ord 2336 - Amending Chapter 14 Regarding Business License TaxesORDINANCE 2336
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING CHAPTER 14 OF THE TOWN CODE REGARDING BUSINESS
LICENSE TAXES
The People of the Town of Los Gatos ordain as follows:
Section 1. Chapter 14 of the Los Gatos Town Code is hereby amended by adding,
deleting, and modifying provisions as set forth in this section below. Additions are indicated by
underscoring: and deletions are indicated by 9# e. Portions of the Chapter not
included in this Ordinance or not shown in underscoring or strike -through type are not changed.
Chapter 14
LICENSES AND MISCELLANEOUS BUSINESS REGULATIONS
ARTICLE I. IN GENERAL
Sec. 14.10.010. Definitions.
For the purposes of this chapter, the following words and phrases shall have the meanings
respectively ascribed to them by this section:
Business means professions, trades and occupations and every kind of calling carried on for
profit or livelihood, including the business of renting or leasing apartments.
E-commerce means commercial transactions conducted electronically on the Internet.
Fixed place of business means the premises occupied for the particular purpose of
conducting the business thereat, and regularly kept open for that purpose, with a competent
person in attendance for the purpose of attending to such business. Included in such term is the
premises rented or leased by persons owning apartments located in the Town.
Gross receipts means the total amount of the sale price of all sales and the total amount
charged or received for the performance of any act, service or employment of whatever nature it
may be, for which a charge is made or credit allowed, whether or not such service, act or
employment is done as a part of or in connection with the sale of materials, goods, wares or
merchandise. Included in such term shall be all receipts, cash, credits and property of any kind or
nature, and any amount for which credit is allowed by the seller to the purchaser without any
deduction therefrom on account of the cost of the property sold, the cost of the materials used,
labor, or service costs, interest paid or payable or losses or other expenses whatsoever.
Excluded from such term shall be cash discounts allowed and taken on sales, any tax
required by law to be included in, or added to, the purchase price and collected from the
consumer or purchaser, and 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.
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Ordinance 2335 November 8, 2022
Home occupation has the same meanings as it does in the zoning ordinance.
Jobbing business means any business conducted solely for the purpose of selling goods,
wares or merchandise in job lots to wholesale merchants for resale at wholesale to the trade by
such wholesale merchants.
Quarter means a period of three (3) calendar months. The quarters begin on the first day of
January, April, July and October of each year. The quarter shall include fractions thereof.
Real estate broker means the managing broker and/or partner of any real estate office.
Retail business means any business conducted for the purpose of selling, or offering to sell,
any goods, wares or merchandise, other than as a part of a wholesale business and jobbing
business.
Tax and Ueense-collector is the Finance Director or designee.
Vehicle means any device in, upon or by which any person or property is or may be
transported or drawn upon a public street or highway, except devices moved by human power or
used exclusively upon stationary rails or tracks.
Wholesale business means any business conducted solely for the purpose of selling goods,
wares or merchandise in wholesale lots to retail merchants for resale at retail to the trade by such
retail merchants.
(Code 1968, § 15-1; Ord. No. 1929, § I, 1-19-93; Ord. No. 2026, §§ V, VI, 2-18-97)
Cross reference(s}--Definitions and rules of construction generally, § 1.10.015; zoning
ordinance definitions, § 29.10.020.
Sec. 14.10.040. Statements required Upon application for original business license.
(a) Upon a person making application for the first business license under this chapter, or for a
newly established business, in all cases where the amount of business license tax to be paid
is based upon gross receipts or is graduated according to some other sliding scale, such
person shall furnish to the Tax andbieense-Collector, for guidance in ascertaining the
amount of business license tax to be paid by the applicant, a written statement upon a form
provided by the Tax and Lieense Collector, signed and certified under penalty of perjury to
be true and correct.
(b) If the amount of the business license tax to be paid by the applicant is based upon the
amount of gross receipts, the applicant shall estimate the amount of gross receipts for the
period to be covered by the business license for the purpose of determining the licensing
bracket which will be applicable for the period to be covered by the license to be issued.
Such estimate, if accepted by the Tax andhieense-Collector as reasonable, shall be used in
determining the amount of business license tax to be paid by the applicant. The tax so
determined shall be tentative only and such person shall, by not later than Januar 31 st May
f leifollowing the period for which the license was issued, furnish the Tax eftd
Lieense-Collector with a certified or sworn statement upon a form furnished by the Tax
Collector, containing the data required to show the licensing bracket properly applicable to
such person during the period of such business license, and the business license tax for such
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Ordinance 2335 November 8, 2022
period shall be finally ascertained and paid in the manner provided in this chapter, after
deducting from the payment found to be due the amount paid at the time such first business
license was issued. The Tax and 16irense-Collector shall not issue to any such person
another license for the same or any other business until such person shall have furnished the
written statement and paid the business license tax as required in this chapter.
(c) If the amount of the business license tax to be paid by the applicant is graduated according
to some sliding scale other than gross receipts, the applicant shall furnish to the Tax and
biE Collector for guidance in ascertaining the amount of business license tax to be paid,
a certified or sworn statement upon a form provided by the Tax and bisense-Collector
setting forth such information as may be therein required and as may be necessary properly
to determine the amount of business license tax to be paid by the applicant and which
statement shall show, among other things, the number of vehicles or tonnage thereof or the
number of seats, chairs, rooms, tables or other units used or involved in such person's
business as of the time of filing such application. Such person shall thereupon pay the
required license tax in advance, computed in accordance with the information contained in
such statement.
(d) Repealed.
(Code 1968, § 15-7; Ord. No. 1929, § IV, 1-19-93; Ord. No. 2026, §§ VIII, IX, 2-18-97)
Sec.14.10.095. Term.
A business license issued under this chapter shall expire at the end of the term for
which the license or renewal is issued unless the license is renewed for an additional period.
(Code 1968, § 15-18; Ord. No. 2026, § XIII, 2-18-97)
ARTICLE H. LICENSES
DIVISION 2. SCHEDULES
Sec.14.20.110. Gross receipts tax.
Every person doing business in the Town, except a person whose business is taxed under
the terms of section 14.20.115, shall pay an annual business license tax based on the gross
receipts of the business. The tax is levied according to one (1) or both of the following schedules.
When the business activities of one (1) person, taxable under the provisions of this section,
involve both retail and e-commerce, manufacturing, wholesaling or jobbing transactions, the
total gross income is apportioned between the two (2) schedules, according to its source.
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Ordinance 2335 November 8, 2022
RETAILING
Tax
At least
But less Than
Current Proposed
$0
$50,000
$7580 75.00
$50,000
$100,000
t'v 'w 157.50
$100,000
$150,000
$4MW 210.00
$150,000
$200,000
$u7m 262.50
$200,000
$250,000
$22&w 315.00
$250,000
$300,000
$262,a8 5367.50
$300,000
$350,000
$AAA $420.00
$350,000
$400,000
$"7-w $E2.50
$400,000
$450,000
AAA 525.00
$450,000
$500,000
CAA 577.50
$500,000
$600,000
$450M 630.00
$600,000
$700,000
$48759 jg2.50
$700,000
$800,000
$5a5 A8 735.00
$800,000
$900,000
$562.W 787.50
$900,000
$1,000,000
$69"g 5840.00
$1,000,000
$1,100,000
M 58L92.50
$1,100,000
$1,200,000
$67.1,9A 945.00
$1,200,000
$1,300,000
$712.50 5997.50
$1,300,000
$1,400,000
51,050.00
$1,400,000
$1,500,000
A 1.15 02.50
$1,500,000
$1,600,000
$825AA L155.00
$1,600,000
$1,700,000
$862AW 51.207.50
$1,700,000
` $1,800,000
$999M 12$ , 60.00
$1,800,000
$1,900,000
tn� 1312.50
$1,900,000
$2,000,000 and above
$975M 1365.00
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Ordinance 2335 November 8, 202
E-COMMERCE. MANUFACTURING, WHOLESALING AND JOBBING
Tax
At least
But less Than
Current
Proposed
$0.00
$200,000.00
$15G,AA 330.00
$200,000.00
$300,000.00
t'� 412.50
$300,000.00
$400,000.00
$a6240 $577.50
$400,000.00
$500,000.00
$4KE-15A 742.50
$500,000.00
$600,000.00
1990.00
$600,000.00
$800,000.00
w $1,237.50
$800,000.00
$1,000,000.00
$6A 1486.10
$1,000,000.00
$1,200,000.00
$1,732.50
$1,200,000.00
$1,400,000.00
$9AAAA $1,980.00
$1,400,000.00
$1,600,000.00
"An2l5A �2 227.50
$1,600,000.00
$1800,000.00
2 475.00
$1,800,000.00
$2,000,000.00
C' ' 2 722.50
$2,000,000.00
$2,500,000.00
$4SA=AA 2,970.00
$2,500,000.00
$3,000,000.00
c'�A $3,217.50
$3,000,000.00
$3,500,000.00
�8A 3 465.00
$3,500,000.00
$4,000,000.00
"IME -5A 3 712.50
$4,000,000.00
$4,500,000.00
$1-1 A- $3,960.00
$4,500,000.00
$5,000,000.00
$5A $4,207.50
$5,000,000.00
$5,500,000.00
$4,455.00
$5,500,000.00
$6,000,000.00
$2A $4,702.50
$6,000,000.00
$6,500,000.00
$2.;250 A 4 950.00
$6,500,000.00
$7,000,000.00
$2,362,M $5,196.40
$7,000,000.00
$7,500,000.00
$Mj&� 5,445.00
$7,500,000.00
$8,000,000.00
$5 692.50
$8,000,000.00
$8,500,000.00
$11409=AA $5,940.00
$8,500,000.00
$9,000,000.00
$2;81245A $6,187.50
$9,000,000.00
$9,500,000.00
$1145,AA $6,43S.00
$9,500,000.00
$10,000,000.00
tom,^ 6 682.50
$10,000,000.00
$10,500,000.00
$9,900.00
$10,500,000.00
$11,000,000.00
$4761245A $10,147.50
$11,000,000.00
$11,500,000.00
$474AA $10395.00
$11,500,000.00
$12,000,000.00
$10,642.50
Plus $165 foreach $550,000
or fraction thereof in excess of
$12,000,000
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Ordinance 2335 November 8, 2022
(Code 1968, § 15-27; Ord. No. 1857, §§ I, H, 6-3-91)
Sec. 14.20.115. License taxes for specified businesses.
Every person doing any of the kinds of business specified in this section shall pay the flat
business license tax specified in this section. The taxes in this section fees are annual unless
otherwise specified. On Janualy 1 of each year the tax rates in this section shall be automatically
adjusted by a percentage e ual to the percentage increase or decrease in the Consumer Price
Index for the preceding CPI Year as published by the U.S. Bureau of Labor Statistics for "All
Urban Consumers for All Items for the San Francisco -Oakland -Ha ward Area" or any successor
to that index designated by the U.S. Bureau of Labor Statistics or the Town Council. As used in
this section, "CPI Year" means the year beginning November 1 and ending October 31. The
"preceding CPI Year" is the CPI Year that ended October 31 of the year immediately before the
automatic tax rate adjustment in this section.
Current Proposed
Advertising signs
Signposting and painting
$420.00 $546.00
Amusement
Shows, concerts, and the like (per day)
CAS 54.60
Circuses, menageries and the like:
Less than 2,000 seating capacity
First day
$420..00 $546.00
Each succeeding day
c`� 68.25
More than 2,000 seating capacity
First day
$630.00 $819.00
Each succeeding day
Sideshows (peF day):
r.,t....... f........+ Cn n
c,� 136.50
$2i.00
.. .,.r:.,..
rantr- nr-p fee a ,.a:.... to 10
Circus procession or parade (each)
$42.09
c'�00 $273.00
Carnivals (per day)
CAS 54.60
Ferris wheels, merry-go-rounds, and the like (per month)
$'� $273.00
Public dances (per dance)
c'� $27.30
Apartment rental and mobile home parks (per unit)
50 9.75
The term "apartment" includes all buildings or groups of buildings on the
same premises, composed of a total of three (3) or more dwelling units
Auctioneers
c'� $146.25
Billiard and Pool Rooms (per table)
CCU 68.25
Boardinghouses
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Ordinance 2335 November 8, 2022
Boardinghouses licensed by the state or county as boardinghouses for
pensioners, and who board pensioners exclusively, are exempt from the
business license tax.
For first 4 boarders
$21.99 $27.30
For each person over 4
$4-.59 $5.85
Cleaning and dyeing laundry delivery
Vehicles (annual, per vehicle)
AAA $218.40
The tax applies to those who have no fixed place of business in the town.
Contractors (annual)
l`'� 291.20
A separate fee for each type of work activity, such as general engineering,
building, plumbing, plastering, painting, masonry, termite service,
installation or other specialty, in addition to any sales or jobbing license fee.
Contractors with businesses not located in Los Go tos but doing a short-term
work activity may pay the daily fee when the iob including inspection is
finished within a day. A contractor must show proof of a valid California
Contractor's License or a signed Declaration of Exemption from California
Contractor's License law.
Contractors (daily)
$105.00 $136.50
Day care facilities
Day care facilities provide day care for children under eighteen (18) years of
age who are unrelated to the licensee.
Small family day care home (a facility providing day care for six (6) children
or less, including resident children)
h1e#ee No fee
Large family day care home (a facility providing day care for seven (7) to
twelve (12) children, including resident children)
NA fpe No fee
Nursery school (a facility providing day care for thirteen (13) or more
children)
Ne#ee No fee
Hospitals, rest homes, and the like:
Annual, or
$140.00 $182.00
Per bed, if that is larger
$10.09 $13.00
Hotels and motels (annual, per guest room)
$7-.59 $9.75
Business activities other than renting rooms, conducted in connection with a
hotel, are taxed separately.
House movers
Annual license
$1�105. v 136.50
Additional, per structure moved
`j94.00 $109.20
Itinerant photographers(annual)
l`'� 273.00
Itinerant vendors (daily)
$1� 136.50
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Ordinance 2335 November 8, 2022
The words "itinerant vendor" mean any person, both principal and agent,
who engages in a temporary and transient business in the Town selling
goods, wares and merchandise with the intention of continuing such business
in the Town for a period of not more than ninety (90) days, and who, for the
purpose of carrying on such business, hires, leases or occupies any room,
building or structure for the exhibition or sale of such goods, wares, or
merchandise, or from which room, building or structure the sales shall be
made or business solicited by means of samples or delivery from house to
house. The person so engaged is not relieved from the provisions of this
section by reason of associating temporarily with any local dealer, trader,
merchant or auctioneer, or by conducting temporary or transient business in
connection with, or as a part of, or in the name of any local dealer, trader,
merchant or auctioneer. The provisions of this section do not apply to
commercial travelers or selling agents selling their goods to dealers, whether
selling for present or future deliveries, by sample or otherwise, nor to
hawkers on the street, nor peddlers from vehicles, nor to persons selling fruit,
vegetables, butter, eggs, or other fruit or ranch products.
Junk collectors (annual, per vehicle)
$94.00 $109.20
Junk collector means any person who has no fixed place of business in the
Town and who engages in or carries on the business of collecting, buying or
selling any old rags, sacks, bottles, cans, papers, metals or other articles of
junk.
Junk dealers (annual)
$429.00 $546.00
Junk dealer means any person who has a fixed place of business in the Town,
and who engages in or carries on the business of buying or selling, either at
wholesale or retail, any old rags, sacks, bottles, cans, papers, metals or other
articles of junk.
Peddlers
Peddlers of wares other than food, per person, per day
t'� 27.30
Peddlers of food, except lunch wagon operators:
Using a vehicle (per vehicle, annual)
$210.90 $273.00
Not using a vehicle, carrying wares by hand
$42.00 $54.60
Lunch wagon operators (per vehicle, annual)
$219.00 $273.00
Peddlers engaged in the business of selling any personal property at a sale
$7-.50 $9.75
conducted by an organization exempt from the business license tax under the
provisions of section 14.1a030 of this chapter shall pay a license tax of �58
9.75 per day. This rule applies only when all fees, commissions or other
remuneration of any kind paid by the peddler to the organization conducting,
sponsoring or promoting the sale is devoted exclusively to the business
license tax-exempt purposes of the organization and the organization has
obtained prior approval from the Town Council to conduct the sale, per day
" $9.75
A "peddler" is every person not having a regularly established place of
business in the Town who travels from place to place, or has a stand upon
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Ordinance 2335 November 8, 2022
any public street, alley or other public place, doorway or any building,
unenclosed or vacant lot, or parcel of land, who sells, offers for sale, any
goods, wares or merchandise in the peddler's possession.
Professional ccupations
Per professional OF seMi fees*GRal person
SupportStaff additional per employee
Professional services are occupations in the service sector requiring special
training in the arts or sciences. Some erofessional services re uire the
practitioner to hold professional degrees or licenses and possess specific
skills. Other profe5sional services involve providing specialist business
support to businesses of all sizes and in all sectors. Professional Services
means the business is offering any professional, scientific, or technical service
including, but not limited to legal advice and representation: accounting,
bookkeeping, and payroll services: architectural, engineering, and specialized
design services; computer services; consulting services; research and
development services; advertising services; photographic services, translation
and interpretation services; veterinary services; and other professional,
scientific, and technical services. Professional OF 5,,....:.,.9fieRg' ►,••S:.,,,« eF
service occupations include, but are not limited to, the following: Accountant;
Advertising counsel; Appraiser; Architect; Artist; Assayer; Attorney at -law;
Auditor, Bacteriologist; Broker, stock or bond; Chemist; Chiropodist;
Chiropractor, Dental hygienist, Dentist, Designer or decorator; Detective or
investigative personnel; Draftsperson; Drugless practitioner, Electrologist;
r ,: mining, „►e6tFi 4, c-ons&uGtkwv,-Engineer--&#wGtuFG�,
• •►+:^ ; ...,,,.►,,...:, ^, ►....+...0 ; Engraver; Feed, grain and fruit broker;
Geologist; Illustrator or showcord writer; Landscape architect; Lapidary;
Lithographer; Licensed financial planner; Licensed investment counselor;
esseuse .._ OSSeMarriage Thera ist Massage Therapist Nurse; Oculist,
optician or optometrist; Osteopath; Physical therapist' Physician; Property
Manariemeni Reals estate brokers; Surgeon; Surveyor; Ti ovddeFm r
Veterinarian; X-ray, dental or medical laboratory
Support staff include, but are not limited to the following: receptionist, office
assistant, real estate agents
Service occupations
Service occupations include, but are not limited to the following: appliance,
home furnishing or radio and television installation, janitorial and building
maintenance, landscape installation and maintenance, secretarial service,
security guards, etc.
Shooting galleries
Solicitors (per business)
A solicitor is one who engages in the business of going from house to house,
place to place or in or along the streets within the Town selling or taking
orders for, or offering to sell or take orders for, goods, wares, merchandise,
advertising or other things of value for future delivery, or for services to be
performed in the future.
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$200.00- $260.00
$ 1� 19.50
$100.09 $130.00
r,� $136.50
c'� S273.00
Ordinance 2335 November 8, 2022
Taxicabs
Per business
Additional per taxi
Theaters and concert halls
Trucking (annual, per vehicle)
Persons other than peddlers who sell or deliver food or any other goods by
means of a vehicle, and who have no fixed place of business in the Town.
Persons who make no more than two deliveries or sales per quarter are
exempt from the foregoing tax. All other motor vehicle delivery business,
whether the business operates on a regular route or between fixed termini or
not:
For one vehicle
For each additional vehicle
$150.00 $195.00
$'� $29.25
$105.00 $136.50
$140.00 $182.00
$45.00 $58.50
t'�00 $28.60
(Ord. No. 1755, §§ 1-3, 7-5-88; Ord. No. 1857, §§ I,11, 6-3-91; Ord. No. 1929, § X, 1-19-93;
Ord. No. 2026, § XV, 2-18-97; Ord. No. 2320, § III, 9-7-21)
efdinanee has been levied on the business by the Town for- the heease year-;
for-
the pfier-
doing
yeaf.
.,..,,buskiesses1
per-sen
homes, and
the
n
n "Professional
n
n
n n
eer.upaliens,
and
„b
eqtW
to
thme
is Every pet
a thirdm�
-ion
1
&-J
y
• 1 1
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Ordinance 2335 November 8, 2022
Section 2. Severability. Should any provision of this Ordinance, or its application to any
person or circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable, or otherwise void, that determination shall have no effect on any other provision
of this Ordinance or the application of this Ordinance to any other person or circumstance and, to
that end, the provisions hereof are severable. It is hereby declared to be the intention of the
electorate that they would have adopted this Ordinance had such unconstitutional, illegal, or
invalid provision, sentence, clause section, or part thereof not been included herein.
Section 3. California Environmental Ouality Act. This Ordinance is exempt from the
California Environmental Quality Act, Public Resources Code section 21000 et seq., under,
including without limitation, Public Resources Code section 21065, and CEQA Guidelines
sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility
that the activity authorized herein may have a significant effect on the environment.
Section 4. Council Implementation. The Town Council of the Town of Los Gatos shall
adopt any and all laws it deems necessary to implement this Ordinance.
Section 5. Council Amendments. The Town Council of the Town of Los Gatos is
authorized to amend Chapter 14 of the Los Gatos Town Code in any manner that does not
increase the rate of any tax or otherwise constitutes a tax increase for which voter approval is
required by Article XIII C of the California Constitution, including adopting exemptions,
waivers, or reductions of the tax.
Section 6. Administrative R ulations and Dele ation. The Town Manager is
authorized to adopt rules and regulations consistent with this measure as needed to implement
this measure and Chapter 14 of the Los Gatos Town Code and to develop all related forms and
other materials and to take any other steps as needed to implement this measure and Chapter 14
and to make such interpretations of this measure and Chapter 14 as the Town Manager may
consider necessary to achieve the purposes of this measure and Chapter 14. The Town Manager
may delegate any authority within their discretion pursuant to this measure as they deem
reasonably necessary.
Section 7. Liberal Construction. This Ordinance shall be liberally construed to
effectuate its purposes.
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Ordinance 2335 November 8, 2022
I hereby certify that this 'Business License Tax" Ordinance was PASSED, APPROVED, AND
ADOPTED by the People of the Town of Los Gatos on the 8t' day of November 2022.
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST: j
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Ordinance 2335 November 8, 2022