A. Conflict with United States or State Law. Nothing in this chapter shall be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or of the State of California from the payment of such taxes as are herein prescribed.

B. Charitable Purposes. The provisions of this chapter shall not be deemed or construed to require the payment of a license tax to conduct, manage or carry on any business, occupation or activity or require the payment of any license tax from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes and from which profit is not derived either directly or indirectly by an individual, firm or corporation; nor shall any license tax be required for the conducting of any entertainment, concert, exhibition, or lecture on scientific, historic, literary, religious or moral subjects, whenever the receipts of any such entertainment, concert, exhibition or lecture on scientific, historic, literary, religious or moral subjects are to be appropriated to any church, school or veteran association, or to any religious or benevolent purpose within the City of Sebastopol; nor shall any license tax be required of any recognized lodge or fraternal organization, nor any license be required of any person under any section hereof for engaging in business dealing solely in farm products produced by him or on land owned by him.

C. Claim for Exemption. Any person claiming an exemption pursuant to this section shall file a verified statement with the Finance Director stating the facts upon which exemption is claimed.

D. Licensed. The Finance Director, upon a proper showing contained in the verified statement, may issue a license to such person claiming exemption under this section without payment to the City of the license tax required by this chapter.

E. Revocation. The Finance Director, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein.