Pass: 4,865 / 73.0% Yes votes ...... 1,800 / 27.0% No votes

See Also: Index of all Measures

The tax rate varies based on the type of business, and the exact amount of tax that any particular business pays depends upon its operations. For example, the tax for most businesses currently is $75 plus $5 per employee. The rate for some other businesses is a percentage of their annual gross receipts. The City's current business license tax rates are set forth in full in Chapter 6.16 of the South San Francisco Municipal Code. For the most part, these rates are at the same level as they were in 1976.

If approved by the voters, the proposed ordinance would amend Chapter
6.16 of the Municipal Code to increase the City's business license tax rates for all businesses subject to the business license tax, except those whose tax is based on a percentage of gross receipts. The base rate paid by most businesses would increase to $75 plus $15 per employee. The proposed ordinance also imposes a limit on the amount of tax that may be charged.

This proposed ordinance also provides that, except for tax rates based on a business's gross receipts, the business license tax rates will be adjusted annually by an amount equal to the percentage increase in the Consumer Price Index (CPI) for All Urban Consumers for the San Francisco + Oakland + San Jose metropolitan area.

These increased rates would be effective upon approval of this measure, but would not be implemented until January 1, 2009.

A "yes" vote would approve the proposed changes to the City's business license tax rates.

A "no" vote would leave the existing business license taxes in place.

Because the proceeds from the increase in the business license tax rates will be used for general fund purposes, this measure requires a majority affirmative ("yes") vote for approval.

Respectfully Submitted,

Steven T. Mattas, City Attorney

We believe our business community can assist, through a modest increase in the business license tax, to make sure that adequate funding exists to support public safety and other desired city services and to maintain our streets, parks and other public infrastructure. Business license taxes paid by over 90% of the businesses operating in the City make up a total of only 1% of the City's budget, and have not been raised since 1976. Our business license taxes are less than half of the per capita average for comparable cities in San Mateo County.

We ask for your support for this ballot measure which would raise over $400,000 in needed revenue for the City. If this ballot measure is approved, a typical business with one employee would only see its taxes go up $10 per year. The ballot measure also includes a cap on the amount of business license tax any business would pay. If Measure B is approved, our city would still be at 2/3 of the average of the per capita business license taxes in San Mateo County.

Help the City of South San Francisco preserve its services and maintain them into the future. Vote Yes on Measure B.

/s/ Joseph Fernekes City Councilmember

/s/ Karyl Matsumoto City Councilmember

/s/ Cyrus Kon Historic Preservation Commissioner

/s/ Dennis Rosaia Conference Center Authority Member

/s/ Al Banfield Manager/Funeral Director, Garden Chapel

SECTION 1. Purpose, Intent and Authority.

It is of critical importance to the City Council of the City of South San Francisco ("City") to provide services that support homes and businesses such as the maintenance of police, fire, emergency medical, and other public safety services, roadways and storm drains, sidewalks, planning and code enforcement, libraries, street sweeping, and parks. In carefully reviewing the City's budget and the current business license tax, it has become clear to City staff that the business license tax requires updating and that it is not generating adequate revenue to offset the cost of providing business-related services.

It is the purpose and intent of this ordinance to generate additional funds to provide and maintain general and business-related services, keep the tax structure current with surrounding cities, and to index the tax rates each year with inflation so that revenues from the tax continue to provide adequate funding for city services over time.

The tax imposed by this ordinance is an excise tax on the privilege of conducting business in the City. It is not a tax on real property, nor is it any other kind of tax on property or the ownership of property. It is not a transaction or sales tax on the sale of real property. The tax is a general tax under Proposition 218 and will be submitted to the voters on November 6, 2007.

SECTION 2. Section 6.04.030 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.04.030 Prima facie evidence of doing business.

When any person shall by use of signs, circulars, cards, telephone book, internet web pages, newspapers, or other related means cause to advertise, hold out, or represent that he is in business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that he is in business in the city, and such person fails to deny by a sworn statement given to the collector that he is not conducting a business in the city, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that he is conducting a business in the city.

SECTION 3. Section 6.04.110 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.04.110 Classification of businesses.

A. Upon application for or renewal of a business license, in the event that a business can legitimately or reasonably be assigned to more than one classification, the collector shall assign the business to an appropriate and reasonable category. A business that disagrees with the collector's assignment may seek review thereof, as provided for in subsections (C)-(E) below.

B. The classification of a business may change as a result of a change of technology and/or the predominant nature of the business's activities, and the collector may revise the classification at the next renewal time.

C. In any case where a licensee or an applicant for a license believes that his individual business is not assigned a reasonable classification under this chapter and Chapters 6.08 through 6.16 because of circumstances peculiar to it, as distinguished from other businesses of the same kind, he may apply to the collector for reclassification. Such application shall contain such information as the collector may deem necessary and required in order to determine whether the applicant's individual business is properly classified.

D. The collector shall then conduct an investigation following which he shall assign the applicant's individual business to the classification shown to be proper on the basis of such investigation. The proper classification is that classification which, in the opinion of the collector, most nearly fits the applicant's individual business. The reclassification shall not be retroactive, but shall apply at the time of the next regularly ensuing calculation of the applicant's tax. No business shall be classified more than once in one year.

E. The collector shall notify the applicant of the action taken on the application for reclassification. Such notice shall be given by serving it personally or by depositing it in the United States Post Office at South San Francisco, California, postage prepaid, addressed to the applicant at his last known address. Such applicant may, within fifteen days after the mailing or serving of such notice, make written request to the collector for a hearing on his application for reclassification. If such request is made within the time prescribed, the collector shall cause the matter to be set for hearing before the city manager within fifteen days. The collector shall give the applicant at least ten days' notice of the time and place of the hearing in the manner prescribed above for serving notice of the action taken on the applications for reclassification. The city manager shall consider all evidence adduced and his findings thereon shall be final. Written notice of such findings shall be served upon the applicant in the manner prescribed above for service of notice of the action taken on the application for reclassification.

SECTION 4. Section 6.04.123 of the South San Francisco Municipal Code is hereby added to read as set forth below:

6.04.123 General business license tax rate.

Unless specified otherwise, the annual business license tax shall consist of a fixed rate of $75 (seventy-five dollars) per business ("Fixed Rate"), plus $15 (fifteen dollars) multiplied by the average number of employees as defined in section 6.08.010 ("Per Employee Rate").

SECTION 5. Section 6.04.125 of the South San Francisco Municipal Code is hereby added to read as set forth below:

6.04.125 Annual cap on amount of business license tax.

The annual business license tax per business shall not exceed $100,000 (one hundred thousand dollars) ("Annual Cap").

If a business has multiple locations within the city and is required to obtain a separate business license for each location, as provided for in section
6.12.040, then the Annual Cap shall apply separately to the license tax levied on each license.

SECTION 6. Section 6.04.126 of the South San Francisco Municipal Code is hereby added to read as set forth below:

6.04.126 Tax rates subject to annual adjustment by cost index.

A. Commencing January 1, 2010 and each January 1 thereafter, each of the tax items listed in subsection (D) below shall be adjusted by the same percentage as the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers ("CPI-W") for the San Francisco Bay Area published by the U.S. Bureau of Labor Statistics during the previous calendar year. The collector shall calculate the change in each tax rate and component, rounding to the nearest quarter dollar ($0.25). The percentage change shall be calculated by comparing the CPI-W for the most recent month of June with that of June of the prior year. If the time period for measurement of CPI-W changes, the collector shall determine a revised time period and apply that revised time frame consistently.

B. In the event that the CPI-W is discontinued or renamed by the Bureau of Labor Statistics or its successor agency, the collector shall select a reasonable successor index.

C. Unless otherwise specified, the CPI-W adjustment shall not apply to any portion of a business license tax that is calculated based on gross receipts.

D. The following tax items shall be adjusted annually as provided for in this section, subject to the exceptions provided for in this section:

• The Fixed Rate, as defined in Section 6.04.123.

• The Per Employee Rate, as defined in Section 6.04.123.

• Each rate established in Chapter 6.16.

• The Annual Cap, as defined in Section 6.04.125.

6.12.040 Branch licenses.

A separate license must be obtained for each branch establishment of a business and for each location of independent business operations using the same name. A single business that operates from multiple locations but as a unified entity shall not require a separate business license for each location.

SECTION 8. Section 6.12.090 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

Section 6.12.090 Renewals

In all cases, the applicant for the renewal of a license shall submit to the collector, for his or her guidance in ascertaining the amount of the license tax to be paid by the applicant, a sworn statement, upon a form to be provided by the collector, setting forth such information concerning the applicant's business during the preceding year as may be required by the collector to enable him or her to ascertain the amount of the license tax to be paid by said applicant pursuant to the provisions of this chapter and Chapters 6.04, 6.08 and 6.16, and a declaration substantially in the following form:

"I declare, under penalty of making a false declaration, that I am authorized to make this statement, and that to the best of my knowledge and belief it is a true, correct and complete statement made in good faith for the period stated."

Changes in the type of business activity conducted, the number of employees, or other factors may result in a change of the applicable business license tax at the time of renewal.

SECTION 9. Section 6.16.020 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.020 Auctioneer.

A. "Auctioneer" means a people who, except at court sales, sells or offers for sale any real or personal property at auction.

B. The license tax is one hundred dollars per day payable in advance for each day an auction is to be conducted ("Auction Day").

C. Ten business days before the auction sale, the applicant for the license shall file with the collector an itemized list identifying and describing the property to be auctioned.

SECTION 10. Section 6.16.035 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.035 Card room.

A. "Card Room" means any building or structure, or any portion of a building or structure or any premises or place, wherein in return for any fee, charge, thing of value or other compensation, any person or persons is or are permitted to play a card game or card games. The term "Card Room" is synonymous with the term "Gaming Club" as used in The Gaming Registration Act (commencing at Section 19800 of the Business and Professions Code).

B. "Card Room Operator" means any person as defined herein who owns, operates, manages or is otherwise financially interested in a Card Room as defined above.

C. "Card table" means any table upon which any card game is played in a card room.

D. "Card Table Rate" means the twenty-five dollar ($25.00) per card table per year license tax payable by a card room operator.

SECTION 11. Section 616.040 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.040 Coin, token, or card-operated machine operator.

A. "Coin-operated machine" means a machine, device, contrivance or apparatus which upon deposit of a coin, plate, token, disk, card, slug or key into a slot, receptacle or other opening or for payment of a consideration permits participation in a lawful game or offers amusement, information, music, goods or services.

B. "Distributor" means any person who, as owner, agent, employee or otherwise, distributes, places, installs or delivers a coin-operated machine to any premises in the city or who keeps or stores within the city any such coin-operated machine for the purpose of distributing, placing, installing or delivering the same.

C. "Operator" means any person who, as owner, lessee, employee, agent or otherwise, operates, installs, keeps, maintains, permits or allows to be operated, installed or maintained, any coin-operated machine in or upon any premises owned, leased, managed, operated or controlled by such person within the city.

D. "Owner" means any distributor or operator of coin-operated machines who owns the machines in question. Owner does not include an operator who is otherwise licensed to do business in this city and who owns and operates coin-operated machines other than "coin-operated amusement devices" as defined in Chapter 6.44 of this code as an incidental activity in conjunction with said licensed business.

E. The license tax payable by owner shall be one percent of the gross receipts without deduction therefrom.

SECTION 12. Section 6.16.050 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.050 Construction contractor.

A. "Construction contractor" means a person conducting or carrying on a business and who undertakes to, or offers to undertake to, or purports to have the capacity to undertake to, or submits bids to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad, excavation or other structure, project, development or improvement, including excavation and moving of earth, rock, sand and similar materials or filling and grading of land, or to do any part thereof, including the erection of scaffolding or other structures or work in connection therewith, acting as a general contractor, prime contractor, subcontractor or specialty contractor.

B. The license tax is one hundred fifty dollars for a general or prime contractor and one hundred twenty-five dollars for a subcontractor or specialty contractor ("Contractor/Subcontractor Rate").

SECTION 13. Section 6.04.060 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.060 Junk collector/recycler.

A. Each business or person that operates as a junk collector or recycler within South San Francisco shall pay an annual business license tax equal to the greater of two hundred dollars or four percent of the gross receipts derived from the collection of recyclable/salvageable materials within South San Francisco. ("Junk collector/Recycler Rate") A recyclable/salvageable material shall be as defined in Section 6.56.010 and Section 8.28.020. With the exception of the initial payment, the taxes owed pursuant to this section shall be paid quarterly and shall be due and payable on April 30th, July 31st, October 31st, and January 31st of each year. An initial payment of two hundred dollars shall be required at the time that the business license is requested. The two hundred dollar payment shall be credited against the first quarterly payment thereafter due. This provision shall not apply to a business that operates on a franchise as defined in Section 6.16.130

B. All junk collectors who are issued a junk collectors permit to conduct a junk collectors business involving the collection of recyclable/salvageable materials shall submit quarterly reports and an annual report to the city's finance director for purposes of compliance with this section.

C. The following information shall be furnished by each junk collector permitted by the city in its quarterly reports:

1. The number of accounts that the junk collector has in the city;

2. The total revenue received from charges for the collection of recyclable/salvageable materials from accounts within the city;

3. A calculation of four percent of gross receipts earned during that quarter from the collection of recyclable/salvageable materials within the city;

4. Total tonnage of recyclable/salvageable material collected by the junk collector from sources in South San Francisco;

5. Total tonnage of each type of recyclable/salvageable material collected by the junk collector from sources in South San Francisco.

The quarterly reporting periods shall be from January 1st through March 31st, April 1st through June 30th, July 1st through September 30th, and October 1st through December 31st.

D. Each junk collector permitted by the city shall furnish the following information in its annual report: the business name, address, telephone number and contact person of each account which is serviced by the junk collector; the date that the account service began and ended as applicable and the total annual charge to the account for service, and total annual revenue derived from service charges for the calendar year.

(e) Failure to produce a quarterly or annual report may result in revocation or suspension of the junk collector's permit pursuant to Section 6.56.070 of this code.

SECTION 14. Section 6.16.070 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.070 Reserved. SECTION 15. Section 6.16.080 of the South San Francisco Municipal Code is hereby amended to read as set forth below:
6.16.080 Manufacturer.

A. "Manufacturer" means a person who makes, contrives or produces by industrial art or process any goods, wares, merchandise, substance or commodity, including food, food products, or beverages.

B. The license tax is seventy-five dollars plus fifteen dollars for each employee ("Manufacturing Rate").

SECTION 16. Section 6.16.090 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.090 Reserved.

SECTION 17. Section 6.16.100 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.100 Reserved.

SECTION18. Section 6.16.110 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.110 Peddler or Solicitor

A. "Peddler" means any person going from house to house, place to place, or in or along the streets within the city selling and making immediate delivery or offering for sale and immediate delivery, any goods, wares, merchandise, or anything of value, in possession of the peddler, except such goods, wares and merchandise to manufacturers, wholesalers, jobbers or retailers, for the purpose of resale.

B. "Solicitor" means a person who engages in the business of going from house to house, place to place, or in or along the streets within the city selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise or other things of value for future delivery or for the services to be performed in the future.

C. The license tax shall be as follows: A fixed fee of $75 plus $15 multiplied by the average number of employees plus two hundred fifty dollars per vehicle used in by the business in the city ("Peddler/Solicitor Rate").

D. When all conditions precedent have been complied with, the Collector shall issue to the applicant a license or permit, as the case may be, which shall be carried on the applicant's person at all times while conducting the business of solicitor within the city and, upon request, shall be displayed to any citizen or to police officers and other city officials. Each license or permit, which shall be in the form of a card as above provided, shall bear a picture, one and one-half inches by one and one-half inches, of the licensee or permittee and shall show, in clearly legible letters and figures, the following information:

1. The name of the City of South San Francisco;

2. The name and address of the licensee or permittee and the company that he represents;

3. The expiration date; and

4. In the case of a permit, the name and address of the license holder.

In addition, said card shall bear the imprint of the official seal of the city and the signature of the license clerk, and, further, on the reverse side thereof, shall have the fingerprints of the licensee or permittee.

E. Every person engaged in the business of soliciting shall first pay to the department of finance the license tax specified in this section and, thereafter, prior to receiving such license or permit, or renewal thereof, shall report to the police department of the city and furnish said department with all the following information:

1. Permanent residence address and telephone number of applicant, together with his regular mailing address;

2. Up-to-date medical certificates (not more than ten days old), issued by a licensed physician and establishing that neither the applicant nor any of the persons intended to be employed by him for the purpose of soliciting within the city, including any and all partners, agents, servants, or crew members, is afflicted with a communicable disease of any type or description; each person so afflicted shall be denied a license or permit until such time as he shall present a medical certificate showing him to be free from any such communicable disease;

3. Each applicant and all partners, agents, employees, servants, or crew members shall submit to fingerprinting by the police department for identification purposes; it shall be the duty of the police department to check all of said fingerprints with the Federal Bureau of Investigation and the California Criminal Intelligence Bureau. If the police department ascertains that the applicant, or any of said persons, has a criminal record, or is of undesirable character, it shall be the duty of the chief of police to report such matter, at the earliest possible date, to the city council, with his recommendation, and, in the meantime, no license or permit, as the case may be, shall be issued to such person, pending action by the city council. If, upon the police report, such person is denied a license or permit, or if he withdraws his application after the police department has commenced its investigation, he shall be entitled to a refund of the tax paid to the collector as specified in this section; provided, however, that there shall be deducted therefrom the sum of fifty dollars to be retained by the city as reimbursement for the cost of making each investigation.

4. The provisions of this section with respect to fingerprinting, health certificates, and police investigation shall apply to all persons soliciting within the confines of the city whether such person is subject to the payment of a business license fee or not. All persons exempt from the payment of such business license fee shall, nevertheless, be required to carry a card containing the same information and data as specified in this section, and shall pay to the collector the sum of fifty dollars annually for the purpose of defraying the expense of fingerprinting, police investigation, and preparation of license or permit card, which must be renewed each year.

5 It shall be unlawful for any person to solicit:

a. At any time at any building where there is a posted sign stating "no solicitors," or words to that effect, unless the occupant has previously granted permission;

b. At any time at any building between the hours of nine p.m. and nine a.m.;

c. In a congested area where the solicitation impedes the public. For the purpose of this section, the judgment of a police officer, exercised in good faith, shall be deemed conclusive as to whether the area is congested or the public impeded.

SECTION 19. Section 6.16.120 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.120 Professional-semiprofessional related business.

A. "Business" means a person engaged in each of the following or any combination thereof:

1. Accountant, acupuncturist, advertising, analyst, appraiser, architect, artist, assayer, attorney;

2. Bacteriologist, bail bond broker, broker, business opportunity broker, business and safety consultant;

3. Cemetery broker, chemist, chiropodist, chiropractor, collection agency or mercantile agency, commercial artist, commission merchant;

4. Dentist, designer or decorator, discount finance company, drugless practitioner (provided, however, that this section shall not apply to persons who treat the sick through prayer or spiritual means);

5. Electrologist, engineer, entomologist, finance company;

6. Geologist;

7. Herbalist (prescriber);

8. Illustrator or show card writer, insurance adjuster or claims adjuster, insurance broker, investment and investment trust;

9. Laboratory, landscape architect, lapidary;

10. Map maker or cartographer, mineralogist, moneylender or money broker, mortician;

11. Naprapath and naturopath;

12. Oculist, oil and gas broker, optometrist, osteopath;

13. Physician, psychiatrist, psychologist;

14. Real estate broker;

15. Stock and bond broker, surveyor;

16. Tax counselor, taxidermist;

17. Veterinarian;

18. Design professional, including computer or graphic design;

19. Computer programmer;

20. Planner or architect;

21. Surveyor, inspector, or map professional.

B. The license tax is as follows:

1. One natural person conducting such a business, a tax of one hundred fifty dollars;

2. Two or more natural persons conducting such a business as an association, partnership, or professional corporation, a tax of one hundred fifty dollars plus one hundred fifty dollars for each natural person participating as an associate, partner or member of the professional corporation ("Professional/Semi-professional rate").

SECTION 20. Section 6.16.130 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.130 Public utilities.

A. "Public utilities" means public utilities operating within the city except those which pay a city tax pursuant to a franchise.

B. Unless otherwise prohibited by law, the license tax is five thousand dollars ("Public Utility Rate").

SECTION 21. Section 6.16.090 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.140 Recreation and entertainment.

A. "Recreation and entertainment" means bowling alleys, circus or similar exhibition, carnival or similar event, boxing or wrestling exhibition, motion picture exhibitions or any other business providing entertainment, recreation or amusement.

B. The license taxes ("Entertainment Rate") are as follows:
1. Bowling alley, a tax of fifty dollars for each alley;
2. Circus or similar exhibition, a tax of five hundred dollars for the first day and one hundred dollars for each additional day;

3. Carnival or similar event, a tax of five hundred dollars for the first day and one hundred dollars for each additional day;

4. Boxing or wrestling exhibition, a tax of five hundred dollars for each exhibition;

5. Motion picture exhibition, a tax of two dollars per seat;

6. Other businesses providing entertainment, recreation or amusement not specifically taxed by this section or other provisions of this chapter, a tax of one hundred dollars.

SECTION 22. Section 6.16.150 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.150 Rental of residential property.

A. "Rental of commercial residential property" means a person conducting or operating a hotel, motel or apartment house containing five or more dwelling units, and containing a rental office on site.

B. The license tax is seventy-five dollars plus five dollars per dwelling unit, whether occupied or vacant ("Residential Property Rental Rate").

SECTION 23. Section 6.16.160 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.160 Reserved.

SECTION 23. Section 6.16.170 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.170 Reserved.

SECTION 24. Section 6.16.190 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.190 Temporary vendor.

A. "Temporary vendor" means any person who engages in temporary or transient business in the city, selling goods, wares, merchandise or any other thing of value with the intention of conducting such business in the city for a period of less than six months and who, for the purpose of carrying on such business, hires, leases or occupies any room, vacant lot, building or other place for the exhibition or sale of goods, wares, merchandise or other thing of value for a period of less than six months; provided, however, that this section shall not apply to sample rooms for the display and taking orders for goods at wholesale.

B. The license tax is fifty dollars per day ("Temporary Vendor Rate").

SECTION 25. Section 6.16.200 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.200 Trailer and mobile home parks.

A. "Trailer and mobile home parks" means a place where trailers or mobile homes are placed or parked for use of occupants for dwelling purposes.

B. The license tax is seventy-five dollars plus five dollars per space ("Trailer Park Rate").

SECTION 26. Section 6.16.210 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.210 Transportation of persons.

A. "Transportation of persons" means the carrying of persons in the city by a person not otherwise licensed by this chapter. This section shall not apply to public transit agencies such as SamTrans, BART, their successor agencies, or any other public transit agencies, but shall apply to private carriers who have an office or commercial garage or warehouse in the city and rent out their vehicles for a fee to public transportation companies.

B. The license tax is two hundred fifty dollars per vehicle plus fifteen dollars multiplied by the average number of employees ("Transportation of Persons Rate").

SECTION 27. Section 6.16.220 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.220 Warehousing.

A. "Warehousing" means any business operation where the principal business activity involves the storage and warehousing of goods, merchandise, packages, mail, or household furniture or goods in the city. Warehousing includes the temporary storage or processing of mail or packages for purposes of sorting or preparing for re-delivery.

B. A business subject to the Warehousing Activities Rate may be exempt if it is a carrier of household goods or owns or operates motor vehicles in the transportation of property for hire and therefore engages in intercity transportation business within the meaning of Household Goods Carriers Uniform Business License Tax Act (Cal. Pub. Util. Code §§ 5325 et seq.). A business claiming such an exemption must follow the procedure prescribed in sections 6.04.040 and 6.04.050 of this Code.

C. A business operation that has a warehousing component, but which has retail or wholesale sales, research and development, or manufacturing as its principal business activity within the city, shall be classified as another business type for the purposes of calculating the business license tax, as provided for in section 6.04.110 of this Code. In determining the proper category for a business with a warehousing component, the collector shall consider whether the business uses its warehouse space for any of the following:

1. The manufacture of products, including food or beverage products at the same location by that same company.

2. The internal use of a stored commodity to be consumed primarily by that business itself, such as the following items when used by the business in the course of transacting its own business: office supplies, lab equipment, automotive parts or supplies, or chemical or testing products.

3. Servicing the retail, wholesale, or manufacturing activities of that same business within the city.

4. Wholesale sales. "Wholesale sales" means sale of goods, wares, or merchandise for the purpose of resale in the regular course of business by a person not otherwise licensed by this chapter.

D. The license tax for a warehousing business not otherwise excluded in subdivision (C) of this section or elsewhere in this Chapter is a $75 fixed rate plus $15 multiplied by the average number of employees ("Warehouse Activities Rate").

SECTION 28. Section 6.16.240 of the South San Francisco Municipal Code is hereby amended to read as set forth below:

6.16.240 Other businesses.

Businesses not assigned a specific business license tax rate by this chapter or exempted by the provisions of this chapter or Chapters 6.04 through 6.16 shall pay the general license tax rate listed in section 6.04.123 of this Code.

SECTION 29. SEVERABILITY. In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect.

SECTION 30. Authority for Ordinance. This ordinance is enacted pursuant to the authority of Government Code Section 37101 and California Business and Professions Code Sections 16000 et seq.

SECTION 31. Election Required. The tax proposed by this ordinance shall not become effective until approved by a majority of the voters voting on the issue at the November 6, 2007 election.

SECTION 32. Amendment of Ordinance. The City Council of the City of South San Francisco may amend this ordinance, without approval of the voters of the City, so long as the amendment does not increase any of the tax rates established by this ordinance or revise a methodology for calculating a tax rate, such that a tax increase results.

SECTION 33. Effective Date of Tax. If this ordinance is approved by a majority of the voters voting on the issue at the November 6, 2007 election, pursuant to Elections Code Section 9217, the tax shall become effective ten (10) days after the City Council certifies the results of the election. Because business license renewal notices may have been sent to businesses in the City prior to the election on this ordinance, the Finance Director may delay implementation of the tax rates approved by this ordinance until January 1, 2009.