SMMC Section 6.04.010(d)
"Gross Receipts" shall include:
(1) The total amount of the sale price of all sales, the total amount charged or received for the performance of any act, service, or employment of whatever nature it may be, whether such service, act, or employment is done as part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit allowed, including all receipts, cash, credits, and property of any kind or nature, 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, losses or any other expense whatsoever.
(2) The amount of any Federal manufacturers' or importers' excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge.
(3) In connection with a person leasing, subleasing, or renting property, all amounts paid by a tenant or subtenant to a lessor or sublessee for the services performed, or materials used, or utilities or facilities furnished by the lessor or sublessor on the premises or in connection with the tenant's or subtenant's use, possession, or the right to possess the property, including but not limited to income from laundry facilities on the property; any receipts paid by a tenant or subtenant to a lessor or sublessor for the use or possession of land, or the right to use or possess land other than that upon which the building or structure is located but which is used or possessed or is available for use or possession by a tenant or subtenant for purposes related to the tenancy, all amounts paid as prepaid rent, and all amounts paid by a tenant or subtenant for the rental of any furniture, equipment, fixtures, garage, or storage space.
(4) Receipts of any person received as commissions or fees earned, or charges of any character made or compensation of any character received, for the performance of any service by said person or any of said person's employees and receipt of any person received as partial or full compensation or reimbursement for salaries, payroll taxes, fringe benefits, and any and all similar expenses for persons who are employees of said person and receipts of any person received as partial or full compensation or reimbursement for equipment, supplies, utilities, or other items or services acquired by said person in that person's name and used or consumed in the performance of services.
"Gross Receipts" shall not include:
(1) The amount of any Federal tax imposed on or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of Federal tax is stated to customers as a separate charge.
(2) Any California State, city, or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser.
(3) Such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or take as part payment on any property so accepted for resale.
(4) Any refundable deposit which is returned to the depositor.
(5) That portion of the receipts of a general building contractor licensed under Sections 6.08.060 or 6.08.070, which represents payments to subcontractors, provided such subcontractors are licensed under the provisions of this Chapter and that the general contractor furnishes the Director of Finance with the names and addresses of the subcontractors and the amounts paid to each subcontractor.
(6) Bad debts taken from gross receipts reported during a prior tax year in accordance with generally acceptable accounting practices.
(7) Anything which the City of Santa Monica may not lawfully include by virtue of the Constitution of the United States or the Constitution of the State of California.
(8) Fees for actual costs of governmental requirements (e.g., inspections, plan checks, etc.) paid by a licensee on behalf of a third party.
DEFINITION OF BUSINESS CATEGORIES
AND SPECIFIC
APPLICATION OF GROSS RECEIPTS
SMMC Section 6.08.040 Agent/Broker.
This business classification applies to a person or entity who, for a fee or commission, engages in the occupation of bringing buyers and sellers together for negotiations, or negotiates or arranges terms and conditions for buyers and sellers for the purpose of effecting a sale of real property or personal property (including securities, commodities, and/or insurance) only. The following criteria shall apply:
(a) Gross receipts for an agent/broker licensee shall include:
(1) All commissions, fees, charges, monies, or compensation of any character, received by such person and/or entity for performing in the capacity described herein.
(2) All other monies received by such person and/or entity in connection with the sale of real or personal property, except those monies received and placed in a segregated account or escrow for the benefit of a third party, and not subject to such person and/or entity's use or control.
(b) An agent/broker shall not obtain or retain title to the real or personal property which is the subject of the sales transaction.
(c) An agent/broker's unadjusted gross income as reflected on its federal income tax return, shall be considered evidence of such licensee's total gross receipts upon which the business license fee is payable.
This business classification shall be limited to real estate brokers, insurance brokers, travel agents or travel agency, stock brokers and bond brokers, commodities brokers and manufacturer's representatives.
SMMC Section 6.08.050 Auto Dealer.
(a) This business classification applies to the buying, selling or offering for sale, of new or used automobiles, trucks, vans, trailers, house trailers or campers, including parts and accessories, and any maintenance and repair services for such vehicles.
(b) For purposes of this Section, the term "new vehicle dealership" shall have the same meaning as the term "franchise" as that term is defined in Section 331 of the California Vehicle Code; and the term "used vehicle dealership" shall mean a business which sells only used vehicles.
(c) A separate business license is required for each new vehicle dealership regardless of whether it is owned or managed by a person who owns or manages more than one new vehicle dealership. A separate business license is required for each used vehicle dealership. However, a used vehicle dealer who owns and operates more than one location under the same business name or entity may utilize a single license.
(d) The gross receipts for each separate new vehicle dealership or used vehicle dealership in the City shall include all sales arising from the dealership regardless of where the product is delivered. The gross receipts from a new vehicle dealership shall include receipts from sales of parts, maintenance, repairs and used vehicle activities associated with that dealership; and those activities shall not require a separate business license regardless of their location in the City, so long as they are associated with the dealership. The maximum tax due is $25,000.
SMMC Section 6.08.060 Contractors
(General Building and Engineering).
This business classification applies to a general building contractor. This Section does not include anyone who merely furnishes material or supplies without fabricating them in the performance of the work of a general building or engineering contractor. Gross receipts shall include only those receipts from projects located within the City of Santa Monica and does not include the amount of any payments to subcontractors (see above section "Gross Receipts" shall not include, number (5) five).
SMMC Section 6.08.070 Sub or
Specialty Contractors and Building Trades.
This business classification applies to any person or entity in the building trades other than the General Contractor. Gross receipts shall include only those gross receipts from projects located within the City of Santa Monica.
SMMC Section 6.08.080
Corporate or Administrative Headquarters.
This business classification applies to corporate or administrative headquarters located in the City. Any business in this license classification shall pay a license tax based upon gross receipts as specifically defined herein. Gross receipts shall be equal to the costs of operation of such corporate or administrative headquarters. "Costs of operation" shall be equal to the total of the following items:
(a) Annual fair rental value of all real property located in the City and used for such corporate or administrative headquarters.
(b) Annual payroll of all employees based in the City.
(c) The cost of all utilities related to the operation of such corporate or administrative headquarters.
SMMC Section 6.08.090 Manufacturers.
This business classification applies to a business which engages in the manufacturing, fabrication, or assembly of goods, wares, merchandise, or components. Gross receipts shall include all gross receipts from products manufactured in the City. In addition, if the product is not sold from the manufacturer's location in the City, an amount equal to the value of all component parts of the product, shall be included in the licensee's gross receipts.
SMMC Section 6.08.100 Professions.
This business classification applies to any person, group, association, partnership, firm, or corporation engaged in a professional vocation. Gross receipts shall include all receipts from business locations in the City regardless of where the service is performed less any receipts for which a person is subject to and pays a business license tax in another jurisdiction to the extent such gross receipts are reasonably attributable to the activity outside the City.
SMMC Section 6.08.110 Recreation and Entertainment.
This business classification applies to any person or entity engaged in providing recreation, entertainment, or amusement opportunities. Gross receipts shall include all receipts from all business locations in the City. Examples of businesses within the recreation and entertainment classification include, but are not limited to, museums, theaters, dance halls, night clubs, golf courses, bowling, billiards, skill games and machines, arcades, rides, shooting galleries, and fortune telling.
SMMC Section 6.08.120
Rental of
Non-Residential Property (Commercial Property)
This business classification applies to any person, group, association, partnership, firm, corporation or other entity (whether as the owner or an agent for the owner, a lessee, sublessee or licensee) which rents, leases, subleases or has available for rent, lease, sublease or license, any commercial building, industrial building, office or office building, structure, land or vacant lot that may be utilized for commercial, industrial, office or storage uses. Gross receipts shall include one hundred percent of gross receipts from the rental, leasing, subleasing or licensing of commercial property located in the City. A separate business license shall be required for each such commercial rental property.
SMMC Section 6.08.130
Rental of Residential Property (Apartment, Hotel, Motel, Rooming House, Trailer Court, and Auto Court).
(a) This business classification applies to any person, group, association, joint venture, partnership, firm, corporation or other entity (whether as the owner, or an agent of the owner), which rents, leases, subleases, licenses or has available for rent, lease, sublease or license, accommodations in more than three units for residential use where such units are located on the same or an adjoining property.
(b) For purposes of this business classification, a living unit for residential use shall include, without limitation, an apartment, hotel or motel room or suite, rooming house, trailer court, auto court or other accommodations.
(c) Gross receipts for this business classification shall include one hundred percent of gross receipts from the rental of accommodations in any of the types of property described herein. Gross receipts shall also include: (i) all monies received for the rental of furniture, equipment, appliances, and garages, parking and/or storage space; (ii) all monies received for payment of utility charges attributable to the accommodations; and (iii) all monies received in connection with providing additional amenities, including, but not limited to washer/dryer facilities.
SMMC Section 6.08.140 Retail.
This business classification applies to the selling of any goods, wares or merchandise at retail, and not otherwise specifically licensed by other provisions of this Code. Gross receipts shall include 100% of retail sales in the City. A retail sale occurs in the City if the sales transaction takes place in the City regardless of where the product is delivered.
SMMC Section 6.08.150 Services.
This business classification applies to the selling or providing for pay of any service. Gross receipts shall include all receipts from the business location in the City regardless of where the service is performed less any receipts for which a person is subject to and pays a business license tax in another jurisdiction to the extent such gross receipts are reasonably attributable to the activity outside the City. In addition, gross receipts shall include all receipts from persons providing service in the City of Santa Monica regardless of the business location when the services are provided in the City and by their nature required that the service provider be in the city to provide service.
SMMC Section 6.08.160 Wholesalers.
This business classification applies to any person or entity engaged in the selling of any goods, wares, or merchandise at wholesale prices. Gross receipts shall include all receipts derived from the wholesale selling of any goods, wares, or merchandise.
SMMC Section 6.08.170 Utilities.
This business classification applies to any regulated utility company subject to Article XIII, Section 19 of the Constitution of the State of California. Gross receipts shall include one hundred percent of gross receipts derived from utility services provided within the City of Santa Monica and gross receipts attributable to any other business activity conducted within the City.
