Article 1 — Real Property Transfer Taxes

This article shall be known as the "Real Property Transfer Tax Law of the City of Artesia." It is adopted pursuant to the provisions of Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State.

(Ord. 115, § 1; Ord. 543, § 1)

The County Recorder shall administer the provisions of this article in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code of the State and the provisions of any County ordinance adopted pursuant thereto. (Ord. 115, § 9; Ord. 543, § 1)

There is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the City shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or any other person, by his or her direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any liens or encumbrances remaining thereon at the time of sale) exceeds $100, a tax at the rate of twenty-seven and onehalf ($0.275) cents for each $500, or fractional part thereof. (Ord. 115, § 2; Ord. 543, § 1)

The tax imposed by the provisions of Section 3-5.203 of this article shall be paid by any person who makes, signs, or issues any document or instrument subject to the tax or for whose use or benefit such document or instrument is made, signed, or issued. (Ord. 115, § 3; Ord. 543, § 1)

The tax imposed by the provisions of this article shall not apply to any instrument in writing given to secure a debt.

(Ord. 115, § 4; Ord. 543, § 1)

The United States, or any agency or instrumentality thereof, any state or territory, or any political subdivision thereof, and the District of Columbia shall not be liable for any tax imposed by the provisions of this article with respect to any deed, instrument, or writing to which such governmental agency is a party, but the tax may be collected by assessment from any other part liable therefor.

(Ord. 115, § 5; Ord. 543, § 1)

The tax imposed by the provisions of this article shall not apply to the making, delivering, or filing of conveyances to make effective any plan of reorganization or adjustment:

• (a) Confirmed under the Federal Bankruptcy Act, as amended;

• (b) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (m) of Section 205 of Title 11 of the United States Code, as amended;

• (c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in Subsection (3) of Section 506 of Title 11 of the United States Code, as amended; or

• (d) Whereby a mere change in identity, form, or place of organization is effected.

The provisions of this section shall only apply if the making, delivery, or filing of instruments of transfer or conveyances occurs within five years after the date of such confirmation, approval, or change.

• (Ord. 115, § 6; Ord. 543, § 1)

The tax imposed by the provisions of this article shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in Subsection (a) of Section 1083 of the Internal Revenue Code of 1954, but only if:

• (a) The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of Section 79k of Title 15 of the United States Code relating to the Public Utility Holding Company Act of 1935;

• (b) Such order specifies the property which is ordered to be conveyed; and

• (c) Such conveyance is made in obedience to such order. (Ord. 115, § 7; Ord. 543, § 1)

• (a) In the case of any realty held by a partnership, no tax shall be imposed pursuant to the provisions of this article by reason of any transfer or an interest within a partnership or otherwise, if:

  • (1) Such partnership (or another partnership) is considered a continuing partnership within the meaning of the provisions of Section 708 of the Internal Revenue Code of 1954; and

  • (2) Such continuing partnership continues to hold the realty concerned.

• (b) If there is a termination of any partnership within the meaning of the provisions of Section 708 of the Internal Revenue Code of 1954, for the purposes of this article such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.

• (c) Not more than one tax shall be imposed by the provisions of this article by reason of a termination described in Subsection (b) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

• (Ord. 115, § 8; Ord. 543, § 1)

Claims for the refund of the taxes imposed by the provisions of this article shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of the Revenue and Taxation Code of the State.

(Ord. 115, § 10; Ord. 543, § 1)

The provisions of this article shall become operative upon the operative date of any ordinance adopted by the County pursuant to the provisions of Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State, or on December 4, 1967, whichever is later.

• (Ord. 115, § 11; Ord. 543, § 1)

Article 2 Sales and Use Taxes

This article shall be known as the Uniform Local Sales and Use Tax Ordinance. (Ord. 358, § 1; Ord. 543, § 1)

The rate of sales tax and use tax imposed by this article shall be 1%. (Ord. 358, § 1; Ord. 543, § 1)

This article shall be operative as of January 1, 1984. (Ord. 358, 1; Ord. 543, § 1)

The City Council hereby declares that this article is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

• (a) To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code;

• (b) To adopt a sales and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code;

• (c) To adopt a sales and use tax ordinance which imposed a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes;

• (d) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible, be consistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this article.

• (Ord. 358, § 1; Ord. 543, § 1)

Prior to the operative date this City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax article; provided, that if this City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract rather than the first day of the first calendar quarter following the adoption of this article. (Ord. 358, § 1; Ord. 543, § 1)

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the City at the rate stated in Section 3-5.202 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this City on and after the operative date. (Ord. 358, § 1; Ord. 543, § 1)

For the purposes of this article, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. (Ord. 358, § 1; Ord. 543, § 1)

An excise tax is hereby imposed on the storage, use or other consumption in this City of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this City at the rate stated in Section 3-5.202 of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. (Ord. 358, § 1; Ord. 543, § 1)

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, all the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this article as. though fully set forth herein. (Ord. 358, § 1; Ord. 543, § 1)

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. The substitution, however, shall not be made when the word "State" is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the State Treasury, or the Constitution of the State of California; the substitution shall not be made when the result of that substitution would require action to be taken by or against the City or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this article; the substitution shall not be made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject this tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or to impose the tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provisions of that Code; the substitution shall not be made in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code; and the substitution shall not be made for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 or in the definition of that phrase in Section 6203. (Ord. 358, § 1; Ord. 543, § 1)

If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional seller's permit shall not be required by this article. (Ord. 358, § l; Ord. 543, § 1)

• (a) The amount subject to tax shall not include any sales or use tax imposed by the State of California upon a retailer or consumer.

• (b) The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this State shall be exempt from the tax due under this article.

• (c) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the City in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

• (d) In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government is exempted from the use tax.

• (Ord. 358, § 1; Ord. 543, § 1)

• (a) The amount subject to tax shall not include any sales or use tax imposed by the State of California upon a retailer or consumer.

• (b) The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county or city, in this State shall be exempt from the tax due under this article.

• (c) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the City in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

• (d) The storage, use, or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes is exempted from the use tax.

• (e) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the City in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

• (f) In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code the storage, use or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government is exempted from the use tax.

• (Ord. 358, § 1; Ord. 543, § I)

Section 3-5.212 shall be operative January 1, 1984. (Ord. 358, § 1; Ord. 543, § 1)

Section 3-5.213 shall be operative on the operative date of any act of the Legislature of the State of California which amends Sections 7202 of the Revenue and Taxation Code or which repeals and reenacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

(Ord. 358, § 1; Ord. 543, § 1)

All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this article. (Ord. 358, § 1; Ord. 543, § 1)

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or this City, or against any officer of the State or this City, to prevent or enjoin the collection under this article, or Part 1.5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. 358, § 1; Ord. 543, § 1)

Any person violating any of the provisions of this article shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

(Ord. 358, § 1; Ord. 543, § 1)

If any provision of this article or the application thereof to any person or circumstance is held invalid, the remainder of the article and the application of such provision to other persons or circumstances shall not be affected thereby.

(Ord. 358, § 1; Ord. 543, § 1)