Chapter 3.52 — COMMUNITY SAFETY AND ESSENTIAL SERVICES TRANSACTIONS AND USE TAX

This chapter shall be applicable in the incorporated territory of the city.

(Code 1985, § 3.52.010; Ord. No. 567, § 1, 11-9-2020)

As used in this chapter, the term "operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance from which this chapter is derived.

(Code 1985, § 3.52.020; Ord. No. 567, § 1, 11-9-2020)

This chapter 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 Revenue and Taxation Code § 7251 et seq., and specifically Revenue and Taxation Code § 7285.9 which authorizes the city to adopt this chapter 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 state sales and use tax law insofar as those provisions are not inconsistent with the requirements and limitations contained in Revenue and Taxation Code § 7251 et seq.

C.

To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the state 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 state department of tax and fee administration in administering and collecting the 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 Revenue and Taxation Code § 7251 et seq., minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this chapter.

(Code 1985, § 3.52.030; Ord. No. 567, § 1, 11-9-2020)

Prior to the operative date, the city shall contract with the state department of tax and fee administration to perform all functions incident to the administration and operation of this chapter, provided that if the city shall not have contracted with the state department of tax and fee administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date is the first day of the first calendar quarter following the execution of such a contract.

(Code 1985, § 3.52.040; Ord. No. 567, § 1, 11-9-2020)

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 one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the territory on and after the operative date of the ordinance from which this chapter is derived.

(Code 1985, § 3.52.050; Ord. No. 567, § 1, 11-9-2020)

For the purposes of this chapter, 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 the retailer's agent to an out-ofstate 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 at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the state department of tax and fee administration.

(Code 1985, § 3.52.060; Ord. No. 567, § 1, 11-9-2020)

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 the ordinance from which this chapter is derived for storage, use or other consumption in the territory at the rate of one percent 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.

(Code 1985, § 3.52.070; Ord. No. 567, § 1, 11-9-2020)

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Revenue and Taxation Code § 7251 et seq., all of the provisions of Revenue and Taxation Code §§ 6001 through 7176 are adopted and made a part of this chapter as though fully set forth herein.

(Code 1985, § 3.52.080; Ord. No. 567, § 1, 11-9-2020)

In adopting the provisions of Revenue and Taxation Code §§ 6001—7176:

A.

When the state 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:

1.

When the word "state" is used as a part of the title of the state controller, state treasurer, state board of control, state department of tax and fee administration, state treasury, or the state constitution.

2.

When 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 state department of tax and fee administration, in performing the functions incident to the administration or operation of this chapter.

3.

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:

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 adopted provisions; 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 provision of that code.

4.

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

B.

The word "city" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Revenue and Taxation Code § 6203 and in the definition of that phrase in Revenue and Taxation Code § 6203.

C.

"A retailer engaged in business in the district" 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 $500,000.00. For purposes of this section, a person is related to another person if both persons are related to each other pursuant to 26 USC 267(b) and the regulations thereunder.

(Code 1985, § 3.52.090; Ord. No. 567, § 1, 11-9-2020)

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

(Code 1985, § 3.52.100; Ord. No. 567, § 1, 11-9-2020)

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 or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law, Revenue and Taxation Code § 7200 et seq., 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 the retailer's agent, or by delivery by the retailer

to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the city shall be satisfied:

a.

With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Vehicle Code § 4000 et seq., aircraft licensed in compliance with Public Utilities Code § 21411, and undocumented vessels registered under Vehicle Code § 9840 et seq., 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, their 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 chapter.

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 chapter.

5.

For the purposes of subsections B.3 and 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 chapter, 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 stateadministered 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 Revenue and Taxation Code §§ 6366 and 6366.1.

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 chapter.

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 chapter.

5.

For the purposes of subsections C.3 and 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 subsection 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 Vehicle Code § 4000 et seq., aircraft licensed in compliance with Public Utilities Code § 21411, or undocumented vessels registered under Vehicle Code § 9840 et seq. 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 chapter 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 Revenue and Taxation Code § 7251 et seq. 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.

(Code 1985, § 3.52.110; Ord. No. 567, § 1, 11-9-2020)

A.

All amendments subsequent to the effective date of the ordinance from which this chapter is derived to Revenue and Taxation Code § 6001 et seq., relating to sales and use taxes and which are not inconsistent with Revenue and Taxation Code §§ 7251 through 7299, and all amendments to Revenue and Taxation Code §§ 7251 through 7299 shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.

B.

The city council may amend this chapter without voter approval only to make minor technical adjustments consistent with the purposes set forth in this chapter and applicable laws or as necessary to comply with the law.

(Code 1985, § 3.52.120; Ord. No. 567, § 1, 11-9-2020)

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 chapter, or Revenue and Taxation Code § 7251 et seq., of any tax or any amount of tax required to be collected.

(Code 1985, § 3.52.130; Ord. No. 567, § 1, 11-9-2020)

The proceeds from the transactions and use tax imposed by this chapter shall be deposited in the general fund of the city and available for any lawful governmental purpose.

(Code 1985, § 3.52.150; Ord. No. 567, § 1, 11-9-2020)

The tax revenue generated by this new general purpose revenue source shall be included in the annual audit of the city's financial operations by an independent certified public accountant.

(Code 1985, § 3.52.160; Ord. No. 567, § 1, 11-9-2020)