§ 6-1.101. Definitions.

For the purposes of this chapter, the words and phrases used herein shall have the following meaning unless the context shows a different meaning.

(a)

Business. All professions, trades and occupations and all and every kind of calling carried on for profit or livelihood.

(b)

Business District. Any area zoned for business purposes by the zoning regulations of the City.

(c)

Commission Broker. One who, for a commission or fee, handles the buying and/or selling of commodities, or an agent or an agency for marketing manufactured goods or other commodities, but who does not take ownership of commodities sold.

(d)

Day. The term "day" shall mean a calendar day. If the last day for performance of any act provided for shall be a holiday the act may be performed upon the next business day with the same effect as if it had been performed upon the day appointed. For purposes of this section, the Friday in November immediately after Thanksgiving Day shall be considered a holiday.

(e)

Director. The Finance Director, or his/her duly authorized deputies or assistants who may be charged with the collection of license taxes and the issuance of licenses.

(f)

Fixed Place of Business. A place of business in the City of Modesto 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 said business.

(g)

Gross Receipts. 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 for whatever nature it may be, for which a charge is made or credit allowed. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature and any amount for which credit is allowable 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 cost, interest paid or payable, or losses or other expenses whatever.

The following shall be excluded from gross receipts:

(1)

Cash discounts allowed and taken on sales;

(2)

Value of property accepted as part of the purchase price;

(3)

Any taxes collected which are separately stated and collected for and paid to a governmental agency;

(4)

Such part of the sale price of property returned by the purchaser upon recision of the contract of sale as is refunded either in cash or by credit;

(5)

Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business shall not be excluded;

(6)

Collection for others where the business is acting as an agent or trustee to the extent that payments are made to those for whom collected;

(7)

Sales of real estate by an agent or sales of commodities by a commission broker, except that portion of the sale which represents commissions or other income to the agent;

(8)

That portion of the receipts of a general contractor which represents payments to subcontractors, providing such subcontractors are licensed under Article 2 of this chapter and further provided that the general contractor furnishes the Director with the names and addresses of the subcontractors and the amounts paid each subcontractor; and

(9)

The amount of gross receipts which has been subject to a license tax paid to any other city.

(10)

Receipts of an Independent Physician Association, as defined herein: Independent Physician Association ("IPA") means a legal "person" organized in accordance with California law having all of the following characteristics:

(i)

One hundred (100) percent ownership or control by California licensed medical doctors ("members");

(ii)

With the exception of members who are employed by, or are partners in a medical group practice, and who contract with the IPA, all IPA members practice independently of other members;

(iii)

Enter into direct contracts with "Health Plans" as defined in Health and Safety Code Section 1345(F), as amended from time to time;

(iv)

Contracts between IPA and Health Plans must provide for payment by Health Plans to IPA for medical services to Health Plan enrollees; and

(v)

IPA contracts in (iv) above must make IPA a fixed fee administrator with no risk for gains or losses from capitation revenues paid to it by Health Plans. "Capitation" being a fixed amount paid by a Health Plan to IPA or its members per Health Plan enrollee per month, and "Fixed Fee" being either a sum stated, or a fixed percentage of capitation received.

(h)

Itinerant Vendor. Any person who shall travel from town to town, house to house, apartment to apartment, office to office, place to place, person to person, or any combination thereof for the purpose of selling, offering for sale, or soliciting orders for, goods, wares, or merchandise at retail, but shall not include selling and delivering, or offering to sell and deliver, items of food and drink for human consumption by a vendor to regular customers along established routes in accordance with invitations previously made to such vendor to make regular calls at specific intervals at such premises for said purpose.

An itinerant vendor shall include but not be limited to a hawker, peddler, street vendor, sidewalk vendor, flower vendor, arts or crafts vendor, or a vendor from a truck or vehicle. An itinerant vendor shall not include any authorized agent or representative of a person having a fixed place of business in the City of Modesto, nor shall it include a charitable institution which sponsors an occasional bazaar, festival, or rummage sale at which the goods, wares or merchandise have been purchased by, prepared by, or donated to the charitable institution and at which no other person makes a profit, nor shall it include youth and senior part-time occupations as set forth in Section 6-1.106.

(i)

Manufacturing. One who engages in the business of manufacturing, fabricating or processing any materials, raw or partly wrought, into goods, wares or merchandise, or assembling or packaging any manufactured or processed materials, whether such manufactured or processed goods are sold or distributed to wholesalers, brokers, or other channels for the purpose of resale.

(j)

Month. The term "month" shall mean a calendar month.

(k)

Operator. The term "operator" shall mean any person operating a business subject to the tax, including, but not limited to, the owner or proprietor of such premises, lessee, sublessee, mortgagee in possession, licensee or any other person otherwise operating such business.

(l)

Person. The term "person" shall mean any individual, firm, company, partnership, limited liability partnership, joint venture, association, proprietorship, social club, fraternal organization, joint stock company, domestic or foreign corporation, limited liability corporation, estate, trust, business trust, receiver, trustee, trustee in bankruptcy, administrator, executor, assignee, syndicate, or any other group or combination acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, excepting: the United States of America, the State of California, and any political subdivision of either thereof upon which the City is without power to impose the tax herein provided.

Whenever the term "person" is used in any clause in this Article imposing either a tax liability or a penalty for failure to perform any act, such term shall include any natural person who as an individual or with a spouse and/or lineal descendants owns or controls fifty (50) percent or more of the voting stock of a corporation obligated to file returns and pay or remit tax; and in addition, is a person with the power to control the fiscal decision-making process by which the corporation allocates funds to creditors in preference to its tax obligations. An individual who is an officer or director of a "person," as defined above, shall rebuttably be presumed to be a person with the power to control said entity's fiscal decision-making processes.

Whenever the term "person" is used in any clause prescribing and imposing a penalty, the term as applied to associations shall include the owners or part owners thereof, and as applied to corporations, the officers, shareholders and directors thereof, in their individual capacities, if such owners, officers, shareholders and directors have charge of the affairs of said association or corporation.

(m)

Processor. One who engages in business of converting an article, substance or commodity into marketable form for the purpose of resale by changing its physical or chemical composition.

(n)

Public Utility. Any person furnishing the public with communication, water, light, heat, power or other public utility or service subject to regulation by the Public Utilities Commission of the State of California.

(o)

Return. The term "return" shall mean any written statement required to be filed pursuant to this chapter and containing information necessary to the determination of the tax, such as a declaration of gross receipts.

(p)

Tax Collector. The term "Tax Collector" shall mean the Finance Director, as defined herein, or his or her designee.

(q)

Taxpayer. The term "taxpayer" shall mean a person required under this chapter to file a return or pay or remit a tax.

(r)

Vehicle. Every device, in, upon, or by which any person or property is or may be transported or drawn upon a public highway.

(s)

Wholesaler. One who engages in the business of selling or soliciting the sale of goods, wares, merchandise, or services for the purpose of resale and not to consumers or users thereof.

(Added by Ord. 3266-C.S., § 1, amended by Ord. 3320-C.S., § 1, effective 10-8-03)