SECTIONS 16300 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 16300

16300. (a) Notwithstanding any other provision of this part,
Chapter 1.5 (commencing with Section 7284) of Part 1.7 of Division 2
of the Revenue and Taxation Code, or Chapter 3 (commencing with
Section 37100) of Part 2 of Division 3 of Title 4 of the Government
Code, no city, including a charter city, city and county, or county
may require an employee to obtain a business license or home business
occupation permit for, or impose a business tax or registration fee
based on income earned for services performed for an employer by the
employee in an employment relationship as determined by reference to
the common law factors reflected in rulings or guidelines used by
either the Internal Revenue Service or the Franchise Tax Board. When
there is a dispute between a city, city and county, or county and a
taxpayer, the manner in which a taxpayer reports or reported income
to the Franchise Tax Board or the Internal Revenue Service shall
create a presumption regarding whether the taxpayer performed
services for an employer as an employee, or operated a business
entity. For purposes of this section, "income" includes income paid
currently or deferred and income that is fixed or contingent.
(b) Nothing in this section shall be interpreted to limit the
authority of a city, city and county, or county to adopt and enforce
zoning, health and safety ordinances, or regulations that define and
limit activities that are permissible within its jurisdiction for the
purposes of health, safety, welfare, and the provisions of
applicable noise ordinances.