Chapter 35 — TAXATION

From and after the effective date of this section the duties of assessing property and of collecting taxes, provided by law to be performed by the Assessor and the Tax Collector of the city, shall be performed by the County Assessor and the County Tax Collector of the county, in accordance with all provisions of applicable law. ('83 Code, § 3.16.010)

Statutory references:

Financial powers, see Cal. Gov't Code §§ 37202 et seq. Property tax assessment, levy and collection, see Cal. Gov't Code §§ 43000 et seq.

Transfer of tax function to county, see Cal. Gov't Code §§ 51500 et seq.

REAL PROPERTY TRANSFER TAX

This subchapter shall be known as the "Real Property Transfer Tax Law" of the city. ('83 Code, § 3.20.010)

This subchapter is adopted pursuant to the authority contained in Cal. Rev. & Tax. Code §§ 11901 et seq. to which reference is made by this subchapter.

('83 Code, § 3.20.020)

(A) There is imposed on each deed, instrument or other 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 purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the amount of any lien or encumbrance remaining thereon at the time of sale) exceeds $100, a tax at the rate of $0.275 for each $500, and each fractional part, of the value or consideration given for such transfer.

(B) The tax imposed pursuant to this subchapter shall be paid by any person who makes, signs or issues any such document subject to the tax, or for whose use or benefit the same is made, signed or issued. ('83 Code, § 3.20.030) Penalty, see § 35.999

Taxes imposed pursuant to this subchapter shall not apply to the following:

(A) Any instrument given to secure a debt.

(B) The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia with respect to any deed, instrument, or writing to which it is a party, but the tax shall be collected by assessment, from any other party to such transaction who is liable therefor pursuant to the provisions of this subchapter.

• (C) The making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:

• (1) (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 subdivision

• (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 affected.

• (2) Section (1) of this division shall only apply if the making, delivery or filing of instruments of transfer or conveyance occurs within five years from the date of such confirmation, approval or change.

• (D) The making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; but only if:

(1) The order of the Securities and Exchange Commission, in obedience to which the conveyance is made, recites that the 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;

• (2) The order specifies the property which is ordered to be conveyed; and

• (3) The conveyance is made in obedience to the order.

• (E) (1) By reason of any transfer of an interest in a partnership or otherwise, if:

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

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

(2) If there is a termination of any partnership, within the meaning of Section 708 of the Internal Revenue Code of 1954, for the purposes of this subchapter, the 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 the partnership at the time of the termination; provided, that not more than one tax shall be imposed pursuant hereto by reason of a termination described in this division, and any transfer pursuant thereto, with respect to the realty by the partnership at the time of the termination.

ed for fair market value, exclusive of the value of any lien or encumbrance remaining thereon, all realty held by the partnership at the time of the termination; provided, that not more than one tax shall be imposed pursuant hereto by reason of a termination described in this division, and any transfer pursuant thereto, with respect to the realty by the partnership at the time of the termination.

(F) Any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of or in lieu of foreclosure; provided, that the tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. Consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee shall be noted on the deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.

(G) Any deed, instrument, or other writing which purports to transfer, divide, or allocate community, quasicommunity, or quasi-marital property assets between spouses for the purpose of effecting a division of community, quasi-community, or quasi-marital property which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to the Family Code, or by a written agreement between the spouses, executed in contemplation of any such judgment or order, whether or not the written agreement is incorporated as part of any of those judgments or orders. In order to qualify for this exemption, the deed, instrument, or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption.

(Cal. Rev. & Tax Code § 11927)

(H) Any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

(Cal. Rev. & Tax Code § 11928)

(I) Any deed, instrument, or other writing by which the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, conveys to a nonprofit corporation realty the acquisition, construction, or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a governmental unit, within the meaning of Section 1.103-1(b) of Title 26 of the Code of Federal Regulations. (Cal. Rev. & Tax Code § 11929) ('83 Code, § 3.20.040) (Ord. 845, passed - -82)

Claims for refund of taxes imposed pursuant to this subchapter shall be governed by the provisions of Cal. Rev. & Tax. Code §§ 5096 et seq.

('83 Code, § 3.20.050)

The County Recorder shall administer the provisions of this subchapter in conformity with the provisions of Cal. Rev. & Tax. Code §§ 11901 et seq. and the provisions of any county ordinance adopted pursuant thereto. ('83 Code, § 3.20.060)

SALES AND USE TAX

This subchapter shall be known and cited as the "Uniform Local Sales and Use Tax Ordinance" of the city. ('83 Code, § 3.24.010)

The City Council declares that this subchapter is adopted to achieve the following, among other purposes, and directs that the provisions of this subchapter be interpreted in order to accomplish those purposes.

(A) Comply with state codes. To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Cal. Rev. & Tax. Code Division 2, Part 1.5 and Cal. Rev. & Tax Code, §§ 7200 et seq. .

(B) Incorporation of state revenue provisions. To adopt a sales and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Cal. Rev. & Tax. Code Division 2, Part 1.5.

(C) Establish a tax. To adopt a sales and use tax ordinance which imposes 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) Minimize administration. To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible, consistent with the provisions of Cal. Rev. & Tax. Code Division 2, Part 1.5, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this subchapter.

('83 Code, § 3.24.020)

Statutory reference:

Sales and use tax, see Cal. Rev. and Tax. Code §§ 7200 et seq.

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate stated in § 35.038 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.

('83 Code, § 3.24.030)

The rate of sales tax and use tax imposed by this subchapter shall be 1%. ('83 Code, § 3.24.040)

For the purposes of this subchapter, 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 agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from the sales shall include delivery charges when the 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.

('83 Code, § 3.24.050)

An excise tax is 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 § 35.038 of the sales price of the property. The sales price shall include delivery charges when the charges are subject to state sales or use tax, regardless of the place to which delivery is made. ('83 Code, § 3.24.060)

Except as otherwise provided in this subchapter, and except insofar as they are inconsistent with the provisions of Cal. Rev. & Tax. Code Division 2, Part 1.5, all of the provisions of Cal. Rev. & Tax. Code Division 2, Part 1 are adopted and made a part of this subchapter as though fully set out in this subchapter. ('83 Code, § 3.24.070) Penalty, see § 35.999

(A) In adopting the provisions of Cal. Rev. & Tax. Code Division 2, Part 1, wherever the state 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.

(B) 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 subchapter.

(C) The substitution shall not be made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state, 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 the sales, storage, use or other consumption remain subject to tax by the state under the provisions of Cal. Rev. & Tax. Code Division 2, Part 1, or to impose this 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 provisions of that code.

(D) The substitution shall not be made in Cal. Rev. & Tax. Code §§ 6701, 6702 (except the last sentence thereof), 6711, 6715, 6737, 6797 or 6828.

(E) The substitution shall not be made for the word "state" in the phrase "retailer engaged in business in this state" in Cal. Rev. & Tax. Code § 6203 or in the definition of that phrase in Cal. Rev. & Tax. Code § 6203. ('83 Code, § 3.24.080)

If a seller's permit has been issued to a retailer under Cal. Rev. & Tax. Code § 6067 of the Revenue and Taxation Code, an additional seller's permit shall not be required by this subchapter. ('83 Code, § 3.24.090)

(A) The amount subject to tax shall not include any sales or use tax imposed by the state 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 Cal. Rev. & Tax. Code Division 2, Part 1.5 by any city and county, county, or city in this state shall be exempt from the tax due under this subchapter.

(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 Cal. Rev. & Tax. Code §§ 6366 and 6366.1, 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.

('83 Code, § 3.24.100) (Ord. 869, passed - -83; Am. Ord. 870, passed - -83)

All subsequent amendments of the Revenue and Taxation Code of the state which relate to the sales and use tax and which are not inconsistent with Cal. Rev. & Tax. Code Division 2, Part 1.5 shall automatically become a part of this subchapter.

('83 Code, § 3.24.110)

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 subchapter, or Cal. Rev. & Tax. Code Division 2, Part 1.5, of any tax or any amount of tax required to be collected.

('83 Code, § 3.24.120)

Any person subject to a sales and use tax under the provisions of this subchapter shall be entitled to credit against the payment of taxes due under this subchapter the amount of sales and use taxes due to the Redevelopment Agency pursuant to applicable state law.

('83 Code, § 3.24.155) (Ord. 913, passed - -85)

TRANSIENT OCCUPANCY TAX

The tax levied by this subchapter shall be known as the "transient occupancy tax." ('83 Code, § 3.28.010)

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

HOTEL. Any structure or any portion of any structure, which is occupied or intended or designated for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof.

OCCUPANCY. The use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes.

OPERATOR. The person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity, where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this subchapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this subchapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

PERSON. Any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

RENT. The consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

TRANSIENT. Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this subchapter may be considered. ('83 Code, § 3.28.020)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 10% of the rent charged by the operator. The tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that the tax shall be paid directly to the Tax Administrator.

('83 Code, § 3.28.030) Penalty, see § 35.999

Statutory reference:

Transient occupancy tax, see Cal. Rev. & Tax. Code §§ 7280 and 7281

No tax shall be imposed upon:

(A) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax provided in this subchapter.

(B) Any federal or state officer or employee when on official business.

(C) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the City Manager. ('83 Code, § 3.28.040)

(A) Each operator shall collect the tax imposed by this subchapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator.

(B) No operator of a hotel shall advertise or state, in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner provided in this subchapter.

('83 Code, § 3.28.050) Penalty, see § 35.999

(A) Within 30 days after the effective date of this subchapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the City Manager and obtain from him a "transient occupancy registration certificate" to be at all times posted in a conspicuous place on the premises.

• (B) The certificate shall, among other things, state the following:

• (1) The name of the operator.

• (2) The address of the hotel.

• (3) The date upon which the certificate was issued.

(4) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirement of this part by registering with the City Manager for the purpose of collecting from transient the Transient Occupancy Tax and remitting said Tax to the City Manager. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit." ('83 Code, § 3.28.060)

(A) Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the City Manager, make a return to the City Manager, on forms provided by him of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the City Manager.

(B) The City Manager may establish shorter reporting periods for any certificate holder if he deems it necessary in order to insure collection of the tax and he may require further information in the return.

• (C) Returns and payments are due immediately upon cessation of business for any reason.

(D) All taxes collected by operators pursuant to this subchapter shall be held in trust for the account of the city until payment thereof is made to the City Manager.

('83 Code, § 3.28.070)

(A) Original delinquency. Any operator who fails to remit any portion of any tax imposed by this subchapter, within the time required, shall pay a penalty of 10% of the amount of the tax, in addition to the amount of the tax. ('83 Code, § 3.28.080)

(B) Continued delinquency. Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent, shall pay a second delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10% penalty first imposed. ('83 Code, § 3.28.090)

(C) Fraud. If the City Manager determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in divisions (A) and (B).

('83 Code, § 3.28.100)

(D) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this subchapter shall pay interest at the rate of 0.5% per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

('83 Code, § 3.28.110)

(E) Merged with tax. Every penalty imposed and such interest as accrues under the provisions of this division shall become a part of the tax required to be paid in this subchapter.

('83 Code, § 3.28.120) Penalty, see § 35.999

(A) If any operator fails or refuses to collect the tax and to make, within the time provided in this subchapter, any report and remittance of the tax or any portion thereof required by this subchapter, the City Manager shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the City Manager procures such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this subchapter and payable by any operator who has failed or refused to collect the same and to make the report and remittance, he shall proceed to determine and assess against the operator the tax, interest and penalties provided for by this subchapter.

(B) In case the determination is made, the City Manager shall give a notice of the amount so assessed by servicing it personally or by depositing it in the United States Postal Service, postage prepaid, addressed to the operator so assessed at his last-known place of address.

(C) The operator may within ten days after the serving or mailing of the notice make application in writing to the City Manager for a hearing on the amount assessed.

(D) If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the City Manager shall become final and conclusive and immediately due and payable. (E) If the application is made, the City Manager shall give not less than five days written notice, in the manner prescribed in this subchapter, to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for the tax, interest and penalties.

(F) At the hearing, the operator may appear and offer evidence why the specified tax, interest and penalties should not be so fixed.

(G) After the hearing, the City Manager shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this subchapter of the determination and the amount of the tax, interest and penalties.

(H) The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in § 35.069.

('83 Code, § 3.28.130)

Any operator aggrieved by any decision of the City Manager with respect to the amount of the tax, interest and penalties, if any, may appeal to the City Council by filing an appeal in the time and manner set forth in § 30.04. Any amount found by the Council to be due, shall be immediately due and payable upon the service of notice of the Council's action.

('83 Code, § 3.28.140)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this subchapter, to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of the tax as he may have been liable for the collection of and payment to the city, which records the City Manager shall have the right to inspect at all reasonable times.

('83 Code, § 3.28.150)

(A) Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this subchapter, it may be refunded as provided in divisions (B) and (C) of this section, provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the City Manager within three years of the date of payment. The claim shall be on forms furnished by the City Manager.

(B) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the City Manager that the person from whom the tax has been collected was not a transient; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

(C) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously of illegally collected or received by the city by filing a claim in the manner provided in division (A) of this section, but only when the tax was paid by the transient directly to the City Manager, or when the transient having paid the tax to the operator established to the satisfaction of the City Manager that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. ('83 Code, § 3.28.160)

Any tax required to be paid by any transient under the provisions of this subchapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this subchapter shall be liable to an action brought in the name of the city for the recovery of the amount. ('83 Code, § 3.28.170)

Any person subject to a transient occupancy tax under the provisions of this subchapter shall be entitled to credit against the payment of transient occupancy taxes under this subchapter, the amount of transient occupancy taxes due to the Redevelopment Agency pursuant to Cal. Rev. & Tax. Code § 7280.5. ('83 Code, § 3.28.190) (Ord. 1067, passed - -93)

UTILITY USERS' TAX

This subchapter shall be known as the "Utility Users' Tax Ordinance" of the city. ('83 Code, § 3.32.010) (Ord. 908, passed - -85)

This subchapter is adopted pursuant to the provisions of Cal. Gov't Code § 37100.5 and other applicable law for the purpose of providing general municipal revenues to be used for general municipal purposes. ('83 Code, § 3.32.020) (Ord. 908, passed - -85)

There is imposed an annual utility tax in the amounts and as provided in this subchapter to raise revenues for the general governmental purposes of the city.

('83 Code, § 3.32.030) (Ord. 908, passed - -85)

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CITY. The City of Baldwin Park.

MONTH. A calendar month.

PERSON. Any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, Massachusetts business or common law trust, society, individual, or municipal corporation. SERVICE SUPPLIER. A person required to collect and remit a tax under the provisions of this subchapter. SERVICE USER. A person required to pay a tax imposed by this subchapter; SERVICE USER shall not mean or include any public entity.

TAX ADMINISTRATOR. The City Manager of the city or his designee.

TELEPHONE CORPORATION , ELECTRICAL CORPORATION , GAS CORPORATION , WATER

CORPORATION and CABLE TELEVISION CORPORATION. These terms shall have the same meanings as defined in Cal. Pub. Util. Code §§ 234, 218, 241 and 215-5, respectively. ELECTRICAL CORPORATION and WATER CORPORATION shall be construed to include any organization, municipality or agency engaged in the selling or supplying of electrical power or water, respectively, to a service user.

UTILITY TAX YEAR. The fiscal year; provided, that the initial utility tax year shall be the effective date of this subchapter through June 30, 1986, inclusive.

('83 Code, § 3.32.040) (Ord. 908, passed - -85)

Nothing in this subchapter shall be construed as imposing a tax upon any person when imposition of the tax upon such person would be in violation of the Constitution of the United States or the Constitution of the State of California, or any valid statute or regulation of either the United States or the state, or any of their respective agencies. The Tax Administrator, with the advice of the City Attorney, shall review each application for exemption under this section and allow the exemption if warranted.

('83 Code, § 3.32.050) (Ord. 908, passed - -85)

Nothing contained in this subchapter is intended to conflict with applicable rules, regulations and tariffs of any service supplier subject to the jurisdiction of the California Public Utilities Commission. In the event of any conflict, the provision of the PUC rules, regulations and tariffs shall control.

('83 Code, § 3.32.060) (Ord. 908, passed - -85)

(A) (1) Any service user shall be eligible for an exemption from the taxes imposed by this subchapter if any of the following exist.

(a) He or she is certified as meeting the criteria of disability as established by the Social Security

Administration for Supplemental Income for the Aged, Blind or Disabled; and/or

(b) The annual gross income of all persons in the household in which the individual resides is less than the annual amount prescribed by resolution of the City Council.

• (2) The exemptions permitted hereunder:

• (a) Shall apply only to taxes imposed by this subchapter on the residence in which the service user resides;

• (b) Shall not apply to the taxes imposed on any other property owned by the individual; and

• (c) Shall not apply to a second utility service account within the household if such service is used for business

purposes.

• (B) Definition. For the purpose of this section, the following definition shall apply.

GROSS ANNUAL INCOME. Any and all income regardless of source.

(C) The exemption granted by this section shall not eliminate the duty of the service supplier of collecting taxes from the exempt individuals, or the duty of the exempt individuals from paying such taxes to the service supplier, unless an exemption is applied for by the service user and granted in accordance with the provisions of this section.

(D) Any service user who qualifies for an exemption from the taxes imposed by this subchapter because of the provisions of division (A) of this section may file an application with the Tax Administrator for an exemption at any time. The application shall be verified by declaration under penalty of perjury and shall contain such information as may be required by the Tax Administrator.

(E) The Tax Administrator shall review all such applications and shall certify the applicant as exempt if the eligibility requirements for division (A) of this section are met, except that no exemption shall be granted to an applicant who is receiving service from a service supplier through a master meter, or who is sharing or prorating service with other service users even though such service users qualify under the provisions of division (A) of this section, and no exemption shall be granted with respect to any tax imposed by this subchapter which is or has been paid by a public agency or where the applicant receives funds from a public agency specifically for the payment of such tax.

(F) If an applicant is certified as exempt, the Tax Administrator shall promptly transmit the following information to the service supplier.

• (1) Name of the exempt applicant.

• (2) Account number shown on utility bill.

• (3) Address to which exempt service is being supplied.

• (4) Any other information as may be necessary for the service supplier to remove the exempt service user from its tax billing procedure.

(G) Upon receipt of such notice, the service supplier shall not be required to continue to bill any further tax imposed by this subchapter from the exempt service user until further notice by the Tax Administrator is given. The service supplier shall eliminate the exempt service user from its tax billing procedure no later than 60 days after receipt of the notice from the Tax Administrator.

(H) If the Tax Administrator determines that an application for exemption is faulty, or that the applicant has failed to truthfully set forth the facts contained therein, application for the exemption shall be denied in writing to the applicant. The applicant shall have ten days thereafter in which to file an amended application for exemption. Upon receipt of the amended application, the Tax Administrator shall determine whether the requirements for exemption have been met and shall notify applicant in writing of such determination.

(I) The Tax Administrator shall notify the service suppliers of the termination of any person's right to exemption hereunder, or the change of any address to which service is supplied to any exempt person.

(J) Taxes billed by the service supplier to the service user prior to removing the service user from its tax billing procedures shall be collected from the service user, and the service user shall pay such taxes to the service supplier. Taxes billed to and paid by the service user between the time that the application for exemption is filed and the service supplier removes the service user from its taxing procedure will not be refunded to the service user.

(K) Exemptions certified by the Tax Administrator shall continue so long as the facts supporting the qualification for exemption shall exist; provided, however, that the exemption shall automatically terminate with any change in the service address or residence of the exempt individual, or assignment of a different account number by the service supplier because of discontinuance or suspension of service at the request of the service user; and provided, further, that such individual may nevertheless apply for a new exemption with each change of address or residence.

emption shall automatically terminate with any change in the service address or residence of the exempt individual, or assignment of a different account number by the service supplier because of discontinuance or suspension of service at the request of the service user; and provided, further, that such individual may nevertheless apply for a new exemption with each change of address or residence.

(L) The Tax Administrator shall have the power and right to demand evidence of continued eligibility of a service user for exemption under the provisions of this section. The evidence may include, but need not be limited to, copies of business records, letters or statement from the Social Security Administration, copies of income tax returns, and such other evidence concerning the service user or other members of his household as may tend to prove or disprove such eligibility. Failure to provide the evidence as is within the control of a service user to so provide, either directly by him or by his consent or the consent of a member of his household when the evidence is requested of the service user in writing by the Tax Administrator, shall be grounds for the immediate discontinuance of the service user's eligibility for exemption under the provisions of this section. Evidence provided to the Tax Administrator upon request, or voluntarily provided by the service user without request, may not be used against the service user as evidence of violation of the provisions of this section; such evidence may only be used as grounds for termination of the exemption herein provided.

(M) Any service user who has been exempted under this section shall notify the Tax Administrator within ten days of any change in fact or circumstance which might disqualify the individual from receiving the exemption. It shall be a misdemeanor for any person to knowingly receive the benefits of the exemption provided by this section when the basis for the exemption does not exist or ceases to exist.

(N) Notwithstanding any of the provisions hereof, if the Tax Administrator is notified from any source that a new or nonexempt service user is receiving service through a meter or connection exempt by virtue of an exemption issued to a previous user or exempt user of the same meter or connection, the Tax Administrator shall conduct an investigation to ascertain whether or not the provisions of this section have been complied with and, where appropriate, order the service supplier to commence collecting the tax from the nonexempt service user.

(O) The service supplier is authorized to bill the tax imposed by this subchapter to any new user or to any account whose name has been changed, other than by correcting a spelling error or other similar clerical error, until the supplier receives notification of exemption as provided in division (F) of this section. Thereupon, the supplier shall cease billing the exempt user for the tax within 60 days as provided in division (A) of this section.

tax imposed by this subchapter to any new user or to any account whose name has been changed, other than by correcting a spelling error or other similar clerical error, until the supplier receives notification of exemption as provided in division (F) of this section. Thereupon, the supplier shall cease billing the exempt user for the tax within 60 days as provided in division (A) of this section.

(P) Notwithstanding the provisions of division (E) of this section, service users who otherwise qualify for an exemption from the tax pursuant to division (A) of this section who reside in mobilehome parks may receive a refund of taxes paid pursuant to this subchapter for services provided through a master meter by filing an application with the Tax Administrator in such form and at such times as are required by the Tax Administrator.

('83 Code, § 3.32.070) (Ord. 908, passed - -85; Am. Ord. 922, passed - -86; Am. Ord. 1053, passed - -91)

(A) There is imposed a tax upon every person in the city, other than the city and any telephone corporation, using intrastate and/or interstate telephone communication services in the city. The tax imposed by this section shall be at the rate of 5% of the charges made for the services and shall be paid by the person paying for the services.

(B) As used in this section, the term CHARGES shall not include charges for services paid for by inserting coins in coin-operated telephones except that where such coin-operated telephone service is furnished for a guaranteed amount, the amounts paid under the guarantee plus any fixed monthly or periodic charge shall be included in the base for computing the amount of tax due; nor shall the term CHARGES include charges for any type of service or equipment furnished by a service supplier subject to public utilities regulation during any period in which the same or similar services or equipment are also available for sale or lease from persons other than a service supplier subject to public utilities regulation; nor shall the term TELEPHONE COMMUNICATION SERVICES include land mobile services or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations, as such section existed on June 1, 1985. The term TELEPHONE COMMUNICATION SERVICE refers to that service which provides access to a telephone system, and the privilege of telephone quality communication with substantially all persons having telephone stations which are part of the telephone system.

(C) Notwithstanding the provisions of division (A) of this section, the tax imposed under this section shall not be imposed upon any person for using intrastate and/or interstate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to the tax imposed under Cal. Rev. & Tax. Code Division 2, Part 20 or the tax imposed under Section 4251 of the Internal Revenue Code, as those provisions existed and were implemented by the relevant regulatory authorities on August 21, 1985.

(D) The telephone users' tax imposed by this section is intended to, and does apply to all charges billed to a telephone account having a situs in the city, irrespective of whether a particular communication service originates and/or terminates within the city. The situs shall be the service address, if it exists; otherwise, the billing address.

(E) The tax imposed by this section shall be collected from the service user by the person providing the intrastate telephone communication services, or the person receiving payment for the services. The amount of the tax collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month; or at the option of the person required to collect and remit the tax, an estimated amount of tax collected, measured by the tax billed in the previous month, shall be remitted to the Tax Administrator on or before the last day of each month. ('83 Code, § 3.32.080) (Ord. 908, passed - -85; Am. Ord. 922, passed - -86; Am. Ord. 1053, passed - -91; Am. Ord. 1292, passed 8-16-06)

(A) There is imposed a tax upon every person in the city using electrical energy in the city, except the city. The tax imposed by this section shall be at the rate of 5% of the charges made for such energy for each service user, and shall be paid by the person paying for the energy. CHARGES , as used in this section, shall include charges made for metered energy and minimum charges for service, including, but not limited to, customer charges, service charges, demand charges, standby charges and annual and monthly charges, fuel and cost adjustments.

(B) As used in this section, the term USING ELECTRICAL ENERGY shall not be construed to mean the storage of such energy by a person in a battery owned or possessed by him for use in an automobile or other machinery or device apart from the premises upon which the energy was received; provided, however, that the term shall include the receiving of such energy for the purpose of using it in the charging of batteries; nor shall the term include electricity

used and consumed by an electric utility supplier in the conduct of its business as an electric public utility; nor shall the term include the mere receiving of the energy by an electric public utility or governmental agency at a point within the city for resale; nor the use of the energy in the production or distribution of water by a public utility or a governmental agency.

(C) The tax imposed under this section shall be collected from the service user by the person supplying such energy. The amount of tax collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month. Remittance of tax may be predicated on a formula based upon the payment pattern of the supplier's customers.

('83 Code, § 3.32.090) (Ord. 908, passed - -85)

(A) There is imposed a tax upon every person in the city, other than the city or a gas corporation or electrical corporation, using in the city gas which is delivered through mains and pipes. The tax imposed by this section shall be at the rate of 5% of the charges made for such gas for each service user, and shall be paid by the person paying for the gas. CHARGES , as used in this section, shall include the following.

(1) Gas which is delivered through mains or pipes.

(2) Minimum charges for such services, including customer charges, service charges, and annual and monthly charges.

• (B) There shall be excluded from the base on which the tax imposed in this section is computed the following.

• (1) Charges made for gas which is to be resold and delivered through mains or pipes.

(2) Charges made for gas sold for use in the generation of electrical energy or for the production or distribution of water by a public utility or governmental agency.

(3) Charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities.

(4) Charges made for gas used in the propulsion of a motor vehicle, as that phrase is defined in the Vehicle Code of the State of California utilizing natural gas.

(C) The tax imposed in this section shall be collected from the service user by the person selling the gas. The person selling the gas shall, on or before the 20th of each calendar month, make a return to the Tax Administrator stating the amount of taxes billed during the preceding calendar month. At the time such returns are filed, the person selling the gas shall remit tax payments to the Tax Administrator in accordance with schedules established or approved by the Tax Administrator.

(D) The tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the regular billing practices of the service supplier.

('83 Code, § 3.32.100) (Ord. 908, passed - -85)

(A) There is imposed a tax upon every person in the city, except the city, using water which is delivered through mains or pipes. The tax imposed by this section shall be at the rate of 5% of the charges made for such water for each service user and shall be paid by the person paying for such water. CHARGES , as used in this section, shall include the following.

(1) Charges made for water which is delivered through mains or pipes.

(2) Minimum charges for service, including, but not limited to, customer charges, service-charges, demand charges, standby charges and annual and monthly charges, fuel and cost adjustments.

(B) There shall be excluded, from the base on which the tax imposed in this section is computed, charges made for water which is to be resold and delivered through mains or pipes; and charges made by a municipal water department, public utility or county or municipal water district for water used and consumed by such department, utility or district.

(C) The tax imposed in this section shall be collected from the service user by the person supplying the water. The amount collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month; or at the option of the person required to collect and remit the tax, an estimated amount of tax, measured by the tax billed in the previous month, shall be remitted to the Tax Administrator on or before the last day of each month. Remittance of tax may be predicated on a formula based on the payment pattern of the supplier's customers. ('83 Code, § 3.32.110) (Ord. 908, passed - -85)

(A) There is imposed a tax upon every person in the city, except the city, using cable television service. This tax shall be at the rate of 5% of the charges made for the service and shall be paid by the person paying for the service.

(B) The tax imposed by this section shall be collected from the service user by the person furnishing the cable television service. The amount collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month.

('83 Code, § 3.32.120) (Ord. 908, passed - -85)

There is imposed a tax on every person in this city, except the city, using intrastate TWX tele-typewriter services in the city. The tax imposed by this section shall be at the rate of 5% of all charges made for the services and shall be paid by the person paying for the services. The amount collected in one month shall be remitted to the Tax Administrator on or before the last day of the following month.

('83 Code, § 3.32.130) (Ord. 908, passed - -85)

(A) Every person receiving payment of charges from a service user shall collect the amount of tax imposed by this subchapter from the service user.

(B) The tax shall be collected insofar as practicable at the same time as and along with the collection of charges made in accordance with the regular billing practice of the service supplier. If the amount paid by a service user is less than the full amount of the charge and tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid except in those cases where a service user pays the full amount of the charge, but notifies the service supplier of his refusal to pay the tax imposed on the charges.

(C) The duty to collect tax from a service user shall commence with the beginning of the first full regular billing period applicable to the service user where all charges normally included in the regular billing are subject to the provisions of this subchapter or as soon thereafter, as the respective utilities are physically and mechanically able to get "on line" for the imposition of the charges. Where a person receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separate for each billing period. ('83 Code, § 3.32.140) (Ord. 908, passed - -85)

Each month the service supplier shall remit taxes to the Tax Administrator in accordance with the provisions of §§ 35.097(E), 35.098(C), 35.099(C), 35.100(C), 35.101(B) or 35.102. At such time the service supplier shall also make a return to the Tax Administrator, on forms provided by him, state the amount of taxes billed, and the amount of taxes collected, by the service supplier for the period to which the remittance applies. The Tax Administrator is authorized to require such further information as he deems necessary to properly determine if the tax here imposed is being levied and collected in accordance with this subchapter. Returns and remittances are due immediately upon cessation of business for any reason.

('83 Code, § 3.32.150) (Ord. 908, passed - -85)

(A) Taxes collected from a service user which are not remitted to the Tax Administrator on or before the due dates provided in this subchapter are delinquent.

(B) Penalties for delinquency in remittance of any tax collected shall attach to and be paid by the person required to collect and remit at the rate of 15% of the total tax collected and not remitted on or before the due dates provided in this subchapter.

(C) The Tax Administrator shall have the power to impose additional penalties upon persons required to collect and remit taxes under the provisions of this subchapter for fraud or negligence in reporting or remitting at the rate of 15% of the amount of tax collected or as recomputed by the Tax Administrator.

(D) Every penalty imposed under the provisions of this section shall become a part of the tax required to be remitted.

('83 Code, § 3.32.160) (Ord. 908, passed - -85)

(A) Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by him from the amounts remitted to a service supplier, or that a service user has failed to pay the amount of the tax for a period of two or more billing periods, or whenever the Tax Administrator deems it in the best interest of the city, he may relieve the service supplier of the obligation to collect taxes due under this subchapter for certain named service users for specified billing periods.

(B) The service supplier shall provide the city with amounts refused along with the names, addresses and reasons of the service users' refusing to pay the tax imposed under the provisions of this subchapter.

(C) The Tax Administrator shall notify the service user that he has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes. The notice shall be served on the service user by handing it to him personally or by deposit of the notice in the United States mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the service supplier; or should the service user have changed his address, to his last known address. If a service user fails to remit the tax to the Tax Administrator within 15 days from the date of the service of the notice upon him, which shall be the date of mailing if service is not accomplished in person, a penalty of 25% of the amount of the tax set forth in the notice shall be imposed, but not less than $5. The penalty shall become part of the tax herein required to be paid.

('83 Code, § 3.32.170) (Ord. 908, passed - -85)

It shall be the duty of every person required to collect and remit to the city any tax imposed by this subchapter to keep and preserve, for the period of three years, all records as may be necessary to determine the amount of such tax as may have been liable for the collection of and remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at all reasonable times. ('83 Code, § 3.32.180) (Ord. 908, passed - -85)

(A) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this subchapter, it may be refunded as provided in division (B) and (C) of this section, provided a claim in writing therefor, stating under penalty of perjury the specific grounds under which the claim is founded, is filed with the Tax Administrator within three years of the date of payment. The claim shall be on forms furnished by the Tax Administrator.

(B) A service supplier may claim a refund against taxes collected and remitted in an amount overpaid, paid more than once or erroneously or illegally collected or received, when it is established in a manner prescribed by the Tax Administrator that the service user from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the service user or credited to charges subsequently payable by the service user to the person required to collect and remit. (C) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.

(D) Any service user may obtain a refund of taxes over-paid, or paid more than once, or erroneously or illegally collected or received by the city, by filing a claim in the manner provided in division (A) of this section, but only when the service supplier establishes to the satisfaction of the Tax Administrator that the service user has been unable to obtain a refund from the service supplier who collected the tax. Nothing herein shall permit the filing of a single refund claim on behalf of a class or group of taxpayers. For class claims, every member of the class shall be required to file a claim as required by this § 35.108.

(E) Notwithstanding any other provisions of this subchapter, whenever a service supplier, pursuant to an order of the California Public Utilities Commission or a court of competent jurisdiction makes a refund to service users of charges for past utility services, the taxes paid pursuant to this subchapter on the amount of such refunded charges shall also be refunded to service users by the service supplier, and the service supplier shall be entitled to claim a credit for such refunded taxes against the amount of tax which is due upon the next monthly return. In the event the ordinance enacting this subchapter is repealed, the amount of any refundable taxes will be borne by the city; provided, however, the same have been remitted to the city by the service supplier and have been received by the city. (‘83 Code, § 3.32.190) (Ord. 908, passed - -85; Am. Ord. 1350, passed 3-7-12)

(A) The Tax Administrator shall have the power and duty, and is directed, to enforce each and all of the provisions of this subchapter.

(B) The Tax Administrator shall have the power to adopt rules and regulations not inconsistent with provisions of this subchapter for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes imposed in this subchapter.

(C) The Tax Administrator may make administrative agreements to vary the strict requirements of this subchapter so that collection of any tax imposed in this subchapter may be made in conformance with the billing procedures of a

particular service supplier so long as said agreements result in collection of the tax in conformance with the general purpose and scope of this subchapter. A copy of each such agreement shall be on file in the Tax Administrator's office. (D) The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from the tax imposed by this subchapter. The Tax Administrator shall provide the service supplier with the name of any person who the Tax Administrator determines is exempt from the tax imposed by this subchapter, together with the address and account number to which service is supplied to any such exempt person. The Tax Administrator shall notify the service supplier of the termination of any person's right to exemption under this subchapter or the change of any address to which service is supplied to exempted person.

('83 Code, § 3.32.200) (Ord. 908, passed - -85)

Commencing immediately, all utility user taxes imposed pursuant to this subchapter, in excess of 3% of the charges made for such utility services, shall be suspended.

('83 Code, § 3.32.210) (Ord. 1053, passed - -91)

CONSTRUCTION TAX

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

DWELLING UNIT. Any building or portion thereof, which is designed for use as a residence by one family. CONDOMINIUM. An estate in a lot that consists of an undivided interest in common, in a portion of a part of a lot combined with a separate interest in space in a building on such lot (see also § 783 of the Cal. Civil Code). ONE-FAMILY DWELLING. A building which contains one kitchen, which is designed and used exclusively as a dwelling unit for one family.

('83 Code, § 3.30.020B.)

There is imposed a general tax upon the privilege of obtaining a building permit for the construction of one-family dwelling units and/or dwelling units and/or condominiums. The tax shall be due and payable prior to the issuance of a building permit allowing the construction of such one-family dwelling units and/or dwelling units and/or condominiums.

('83 Code, § 3.30.010) (Ord. 889, passed - -85)

The general tax imposed pursuant to § 35.121 shall be $250 for each bedroom included within a one-family dwelling unit, dwelling unit or condominium unit; provided, that the total tax due hereunder shall not exceed $1,000 per onefamily dwelling unit, dwelling unit or condominium unit.

('83 Code, § 3.30.020A.)

TRANSACTIONS AND USE TAX

This subchapter 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 impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with § 7251) of Division 2 of the Revenue and Taxation Code and § 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this tax subchapter which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

(B) To adopt a retail transactions and use tax ordinance that 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 1.6 of Division 2 of the Revenue and Taxation Code.

(C) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

(D) To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this subchapter.

(Ord. 1475, passed 11-8-22)

Prior to the operative date, the city shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax subchapter; provided, that if the city shall not have contracted with the California Department of Tax and Fee Administration 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.

(Ord. 1475, passed 11-8-22)

In addition to the tax set forth in Article 2 of this chapter, for the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of 3/4% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this subchapter.

(Ord. 1475, passed 11-8-22)

For the purposes of this subchapter, 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 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 California Department of Tax and Fee Administration.

(Ord. 1475, passed 11-8-22)

In addition to the tax set forth in Article 2 of this chapter, an excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of this subchapter for storage, use or other consumption in said territory at the rate of 3/4% 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. 1475, passed 11-8-22)

Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with § 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this subchapter as though fully set forth herein.

(Ord. 1475, passed 11-8-22)

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

(A) Wherever the State of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. However, the substitution shall not be made when:

(1) The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;

(2) The result of that substitution would require action to be taken by or against this city or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this subchapter.

(3) 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:

(a) 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 to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;

(b) Impose this 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 provision of that code.

(4) In §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

(B) The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in § 6203 and in the definition of that phrase in § 6203.

(1) "A retailer engaged in business in this City" shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the state by the retailer and all persons related to the retailer that exceeds $500,000. For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

(Ord. 1475, passed 11-8-22)

If a seller's permit has been issued to a retailer under § 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this subchapter.

(Ord. 1475, passed 11-8-22)

(A) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

(B) There are exempted from the computation of the amount of transactions tax the gross receipts from:

(1) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county 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.

(2) Sales of property to be used outside the city which is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this division, delivery to a point outside the city shall be satisfied:

(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with § 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with § 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Vehicle Code by registration to an out-of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and

(b) With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

(3) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this subchapter.

(4) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this subchapter.

(5) For the purposes of divisions (B)(3) and (B)(4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

(C) There are exempted from the use tax imposed by this subchapter, the storage, use or other consumption in this city of tangible personal property:

(1) The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

(2) Other than fuel or petroleum products 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. This exemption is in addition to the exemptions provided in §§ 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

(3) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this subchapter.

(4) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this subchapter.

(5) For the purposes of division (C)(3) and (C)(4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

(6) Except as provided in division (C)(7) of this section, a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer.

(7) "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with § 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with § 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city.

(D) Any person subject to use tax under this subchapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. (Ord. 1475, passed 11-8-22)

(A) All amendments subsequent to the effective date of this subchapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this subchapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this subchapter.

(B) The City Council, by majority vote of the full Council, may lower the rate of the retail transactions and use tax adopted by this chapter to 0%.

(Ord. 1475, passed 11-8-22)

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 the city, or against any officer of the state or the city, to prevent or enjoin the collection under this subchapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

(Ord. 1475, passed 11-8-22)

The tax imposed by this subchapter shall continue until this subchapter is repealed. (Ord. 1475, passed 11-8-22)

MEASURE BP

A Measure BP Stakeholders Oversight Committee (Committee) for the city is hereby created. (Ord. 1500, passed 3-1-23)

• (A) The Committee shall be made up of seven members.

• (B) Members must be over the age of 18 at the time of appointment.

• (C) Members must be residents of the city at the time of appointment and at all times during service on the Committee, unless specifically provided for in division (F).

• (D) Members must not have been convicted of a felony or misdemeanor financial crime.

(E) No current employee, retained consultant of the city, or current elected official of the city, is eligible to serve as a member. Appointed city officials, such as Commissioners, shall be eligible to serve as members of the Committee if all other membership requirements are met.

• (F) Four members of the Committee shall be selected from the following categories:

• (1) One member shall represent a youth sports or arts organization located within the city, including coaches, administrators, or members of the board of the organization.

(2) One member shall be a duly ordained member of the clergy representing a religious institution located within the city, including but not limited to a priest, rabbi, pastor, or minister of that institution. While the individual member from this category need not be a resident of the city at all times during Committee service, the religious organization that member represents must be located within the city.

(3) One member representing the Unified School District. While the individual member from this category need not be a resident of the city at all times during Committee service, the member must be a current teacher or administrator employed by the district, or any current or former member of the district’s governing board.

(4) One member representing a duly organized non-profit corporation or association that is providing social, charitable, educational, or similar services within the city. While the individual member from this category need not be a resident of the city at all times during Committee service, the organization that member represents must be providing services within the city.

• (G) The remaining three members shall be residents duly qualified under this section, but need not have any organizational affiliation as required by division (F) for the other four members.

• (H) Two members of the City Council shall serve as liaisons to the Committee, as appointed by the City Council. Liaisons shall have full authority to appear, speak, and participate in Committee meetings, but shall not have a vote on

Committee recommendations.

(I) Non-voting elected city officials, including the City Clerk and City Treasurer, may participate in the Committee as observers. Additional observers may be designated by the Chief Executive Officer (CEO) as deemed necessary. (Ord. 1500, passed 3-1-23)

(A) The CEO shall develop a procedure to publicly advertise open positions on the Committee and an application process whereby residents meeting the qualifications set forth in § 35.151 may request an appointment to serve on the Committee. The application process may include candidates submitting a written questionnaire and a candidate interview process.

(B) The members of the Committee shall be selected by lottery or other method of random drawing. The selection shall be performed publicly at a regularly scheduled City Council meeting. For the selection of each of the four members affiliated with an organization, all candidates within a specific category shall be placed in a random draw and then one member from that category shall be selected to serve, the process repeating for each category. Resident members not affiliated with an organization shall be selected by random draw of all eligible applicants.

(C) All members shall serve at the pleasure of the City Council. The City Council, by motion approved at a public meeting by three affirmative votes, may remove a member from the Committee.

(D) Any vacancies on the Committee, whether due to resignation, removal, or other reason, shall be filled within 60 days of the vacancy by a replacement duly appointed by the procedure established in this section. (Ord. 1500, passed 3-1-23)

The terms of Committee members shall be staggered. Four members shall initially serve four year terms and three members shall initially serve two year terms. Once the initial seven members are selected as outlined in § 35.152, the city shall immediately conduct another random drawing to determine the terms each member will initially serve. The first four names drawn randomly shall initially serve four year terms and the three members not selected shall initially serve two year terms. Thereafter, each member will serve a four year term. Members may serve up to two consecutive full terms, upon request made 90 calendar days before the completion of the member’s first term, and with approval of the City Council.

(Ord. 1500, passed 3-1-23)

Members of the Committee shall nominate, and a majority of the Committee shall appoint, a Chair and Vice Chair from among their current membership. In the event that no Chair or Vice Chair is appointed by the Committee, the CEO shall appoint either a Chair or Vice Chair.

(Ord. 1500, passed 3-1-23)

(A) The primary function of the Committee shall be to provide recommendations to the City Council on city projects, programs, and services that should be funded, either in whole or in part, by revenue generated by the Measure BP Transactions and Use (Sales) Tax.

(B) The City Council shall consider the Committee’s recommendations before making a final decision on spending revenue generated by the Measure BP Transactions and Use (Sales) Tax.

(C) The office of the CEO and the city’s Department of Finance shall track revenues generated by Measure BP and present financial reports to both the Committee and the City Council outlining Measure BP revenues received and spent, as well as city projects, programs, and services funded by Measure BP revenues.

(D) Members of the Committee must attend a minimum of half of the Committee meetings held in a given year, with the meeting schedule established pursuant to § 35.156. Members who fail to meet the minimum attendance requirement shall be subject to removal from the Committee.

(Ord. 1500, passed 3-1-23)

At its first meeting, the Committee shall establish a regular meeting date and time for its business by resolution, provided that it shall meet on at least a regular quarterly basis. All Committee meetings, whether regular or special, shall be conducted publicly and in accordance with the provisions of the Ralph M. Brown Act codified in Cal. Gov’t Code §§ 54950 et seq. The Committee shall keep a record of its proceedings, which shall be open for inspection by any member of the public.

(Ord. 1500, passed 3-1-23)

No Committee member shall receive compensation or a stipend associated with membership. (Ord. 1500, passed 3-1-23)

The office of the CEO, with the assistance of the City Clerk, shall provide administrative services and support to the Committee as appropriate.

(Ord. 1500, passed 3-1-23)

(A) Any person violating any of the provisions of §§ 35.035 through 35.047 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. ('83 Code, § 3.24.150)

(B) (1) Any operator or other person who fails or refuses to register as required in §§ 35.060 through 35.073, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the City Manager, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as provided in § 10.99.

(2) Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by §§ 35.060 through 35.073, is guilty of a misdemeanor and is punishable as aforesaid.

('83 Code, § 3.28.180)