ORDINANCE TO AMEND THE BUSINESS LICENSE SECTION OF THE CODE TO EXEMPT CERTAIN DELIVERY CATEGORIES

RECOMMENDATION

It is recommended that the City Council introduce Ordinance No. 99- , amending the Business License section of the Hermosa Beach Municipal Code to exempt certain delivery categories that are licensed by other agencies.

BACKGROUND

On September 28, 1999, City Council directed staff to return to clarify Code sections relating to delivery licenses that may be ambiguous or unenforceable.

ANALYSIS

Section 5.04.200.B.4 of the Hermosa Beach Municipal Code (attached) ** describes the various categories of licenses for deliveries of goods, wares, merchandise, etc. There are no exceptions listed.

According to Public Utilities Code (PUC) 5327, no city may assess a license tax for carriers of household goods or transportation of property for hire; therefore these categories should be specifically exempted from the business license requirement. Household goods carriers are currently licensed by the PUC. For-hire motor carriers (who transport goods and property for compensation) are currently licensed by the Department of Motor Vehicles (DMV). In addition, carriers of goods transported via air and subsequently delivered by vehicle are exempt since they are subject to a federal tax. The attached ordinance provides exemptions for these types of businesses.

The City is not preempted from licensing "private carriers" which are defined as transporters of goods and property, but not on a for-hire or compensation basis. As a practical matter, the City Attorney’s office advises that a private carrier may, in fact, have paid a license tax to the DMV. If that is the case, it is recommended that, upon evidence that the company has paid the DMV, no city license fee be charged.

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ORDINANCE NO. 99-

 

AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA AMENDING CHAPTER 5.04 OF THE MUNICIPAL CODE PERTAINING TO BUSINESS LICENSE FEES

 

THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1 . The first paragraph of Section 5.04.200.B.4 of Chapter 5.04 of Title 5 of the Hermosa Beach Municipal Code is amended to read as follows:

"4. Classification D. Every person engaged in the business of trading in, selling, or offering for sale any materials, commodities, goods, wares or merchandise by means of any vehicle or delivery of same after order, or any person operating a delivery service for the delivery of any materials, commodities, goods, wares or merchandise by means of any vehicle, except for carriers of household goods as defined in Public Utilities Code Section 5109, for-hire motor carriers of property as defined in Revenue and Taxation Code Section 7232(c) and carriers of goods transported via air and subsequently delivered directly by vehicle, shall pay a license tax as follows:"

SECTION 2 . If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reasons, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 3 . This ordinance shall become effective and be in full force and effect from and after thirty (30) days of its final passage and adoption.

SECTION 4 . Prior to the expiration of fifteen (15) days after the date of its adoption, the City Clerk shall cause this ordinance to be published in the Easy Reader, a weekly newspaper of general circulation published and circulated in the City of Hermosa Beach, in the manner provided by law.

SECTION 5 . The City Clerk shall certify to the passage and adoption of this ordinance, shall enter the same in the book of original ordinances of the City, and shall make minutes of the proceedings of the City Council at which the same is passed and adopted.

PASSED, APPROVED and ADOPTED this 12th day of December, 1999 by the following vote:

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