Host Internat., Inc. v. City of Oakland

BACKGROUND

A. Under the Oakland Municipal Code, businesses operating in Oakland must obtain a business tax certificate and pay business license taxes each year. (Oakland Mun. Code, §§ 5.04.020, 5.04.070, 5.04.080, subd. (A).) The amount of business tax liability depends on the type of activities in which the business is engaged. (See id., §§ 5.04.290 - 5.04.500.) A separate business tax certificate is required for each activity of the business unless the activity comprises less than 20 percent of the total gross receipts of the business. (Id., § 5.04.040.) Thus, a business that engages in both retail sales and leasing of commercial property must obtain separate certificates for each unless the exception applies. (See id., §§ 5.04.290, 5.04.430, subd. (A).) City of Oakland (“City”) tax authorities determine the appropriate business tax classifications based on the information reported by the taxpayer. (Id., §§ 5.04.090, subd. (A), 5.04.110, 5.04.120.) B. Host held a permit approved by the Port Department of the City of Oakland (“Port”) to occupy space and operate food, beverage, retail, and duty-free concessions at Oakland International Airport. In exchange for the rights granted…