Burbank Municipal Code Art. 3 Sales Tax

This article shall be known as the SALES TAX ORDINANCE. [Formerly numbered Section 14-18; renumbered by Ord. No. 3058, eff. 2/21/87.]

All of the provisions of Part 1, Division 2, of the Revenue and Taxation Code of the State known as the “Sales and Use Tax Law”, as amended and in force and effect on September 9, 1953, except the provisions thereof pertaining solely to the Use Tax and Sections 6008, 6009, 6009.1, 6051, 6052, 6053, 6066 to 6071, inclusive, 6451, 6482 to 6485, inclusive, 6591, 6907, 6908, 6981, 7052, 7056, 7057, 7101, 7102 and 7151 to 7513, inclusive, are hereby adopted by reference and incorporated in this article as hereinafter altered as though set forth herein in full, and all provisions of any other ordinance in conflict therewith are inapplicable to this article and the tax hereby imposed; provided, however, that:

A. The City shall be substituted for the State whenever the State is referred to in said law;

B. The County shall be substituted for the County of Sacramento whenever the latter county is referred to in said law;

C. The Mayor shall be substituted for the Governor whenever the Governor is referred to in said law;

D. The City Attorney shall be substituted for the Attorney General whenever the Attorney General is referred to in said law;

E. The Finance Officer shall be substituted for the State Controller and State Board of Control whenever referred to in said laws;

F. The Council shall be substituted for the State Board of Equalization insofar as said Board is empowered by said law to adopt rules and regulations pertaining to the interpretation, administration and enforcement of said law;

G. The City Manager shall be substituted for the State Board of Equalization in the application of Section 6459 of said law to Section 2-4-317 of this article.

H. The City Tax Collector shall be substituted for the State Board of Equalization in said law in all instances not otherwise provided for in this article.

I. The term “gross receipts” as used therein shall not include the amount of any tax imposed by the State, whether imposed upon the retailer or upon the consumer; and

J. The words and figures “Section 6591” shall be deleted from Section 6537 of said law, and the following words and figures substituted in place thereof: Section 2-4-308 and, if applicable, Section 2-4-318 of this code. [Formerly numbered Section 14-19; renumbered by Ord. No. 3058, eff. 2/21/87.]

A. State Rules and Regulations: The rules and regulations of the State Board of Equalization, as amended and in force and effect on January 1, 1948, pertaining to the interpretation, administration and enforcement of the State “Sales and Use Tax Law”, insofar as applicable, shall apply in the interpretation of this article until specifically repealed or abandoned by said Board, or superseded by the rules and regulations of the Council.

B. Rules and Regulations of the Council: The Council may adopt, by resolution, such reasonable rules and regulations for the purpose of administering and enforcing this article as the City Manager shall prescribe and recommend. Such rules and regulations may, among other things, require each person affected by this article to keep such records, receipts, invoices and other pertinent papers as may be deemed necessary for the purpose of administering and enforcing this article. [Formerly numbered Section 14-20; renumbered by Ord. No. 3058, eff. 2/21/87.]

The provisions of this article and the rules and regulations adopted by the Council shall prevail over the State “Sales and Use Tax Law” and the rules and regulations of the State Board of Equalization in case of conflict. [Formerly numbered Section 14-21; renumbered by Ord. No. 3058, eff. 2/21/87.]

The City Manager shall enforce the provisions of this article. [Formerly numbered Section 14-22; renumbered by Ord. No. 3058, eff. 2/21/87.]

A. Selling Prohibited Without Permit: No person shall engage in business as a seller in the City without a permit or permits so to do as in this article provided. Each officer of a corporation which violates this section shall also be guilty of a misdemeanor.

B. One Permit Per Business Location: A separate permit shall be obtained for each place of business.

C. Contents of Application: Applications for a permit or permits hereunder shall be filed with the City Tax Collector. Every application shall be made upon a form prescribed by the City and shall set forth the name under which the applicant transacts or intends to transact business, the location of their place or places of business from which taxable sales will be made, and such other information as the City may require. The application shall be signed by the owner, if a natural person; by a member or partner, in the case of an association or partnership; or in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of their authority.

D. Fee: Every application shall be accompanied by a fee of one dollar ($1.00) for each permit. [Formerly numbered Section 14-23; renumbered by Ord. No. 3058, eff. 2/21/87.]

A. Issuance: After compliance with the preceding section, the City Tax Collector shall issue to each applicant a separate permit for each place of business from which taxable sales will be made; provided, however, that no permit shall be knowingly issued to any person who, at the time of making application, is indebted to the City for any unpaid taxes required to be paid under this article.

B. Display: The permit shall at all times be conspicuously displayed at the place for which issued. [Formerly numbered Section 14-24; renumbered by Ord. No. 3058, eff. 2/21/87.]

A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein; provided, however, a change of location may be endorsed upon the permit by the City Tax Collector upon the payment of a fee of one dollar ($1.00). [Formerly numbered Section 14-25; renumbered by Ord. No. 3058, eff. 2/21/87.]

The City Tax Collector shall collect a fee of one dollar ($1.00) for replacing any lost or destroyed permit. [Formerly numbered Section 14-26; renumbered by Ord. No. 3058, eff. 2/21/87.]

Whenever any person fails to comply with any provision of this article, or any rule or regulation adopted pursuant to the provisions thereof, the City Manager may revoke or suspend any one or more of the permits held by such person, after giving them a hearing on ten (10) days’ notice specifying the time and place of hearing and requiring them to show cause why their permit or permits should not be revoked. The City Manager shall notify the City Tax Collector in the event a permit is revoked. [Formerly numbered Section 14-27; renumbered by Ord. No. 3058, eff. 2/21/87.]

The City Tax Collector shall not renew a permit after revocation thereof unless authorized to do so by the City Manager. The City Manager must satisfy themselves that the applicant for renewal of permit will comply with the provisions of this article and the rules and regulations adopted pursuant thereto before such renewal is authorized. [Formerly numbered Section 14-28; renumbered by Ord. No. 3058, eff. 2/21/87.]

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on or after January 1, 1955. The tax imposed by the provisions of this article is in addition to any and all other taxes imposed by any other provisions of this code. [Formerly numbered Section 14-29; renumbered by Ord. No. 3058, eff. 2/21/87.]

Insofar as it can be done, the tax hereby imposed shall be collected by the retailer from the consumer. [Formerly numbered Section 14-30; renumbered by Ord. No. 3058, eff. 2/21/87.]

In addition to the exemptions contained in Part 1, Division 2 of the Revenue and Taxation Code of the State, there shall be excluded from the computation of the tax hereby imposed, gross receipts from:

A. Sales of meals, food and drinks sold or served on common carriers operating into, through or out of this City from or to points outside the City;

B. Sales made to or by the State or to any other agency, department, political subdivision, district or municipal corporation thereof, provided there exists a reciprocal exemption to this City;

C. Sales of property to be used in connection with the erection, construction, repair or alteration of either public works or buildings belonging to or being constructed by or on behalf of, or for the use of the United States government; and also the State or any agency, department, political subdivision district or public or municipal corporation of the State, provided there exists a reciprocal exemption to this City;

D. Sales made to the Burbank Unified School District; and

E. Sales of lubricating oil, combustible fluids, such as gasoline and fuel oil, made to operators of common carriers by air, to be used or consumed in the operation of such common carriers by air, principally outside the City. [Formerly numbered Section 14-31; renumbered by Ord. No. 3058, eff. 2/21/87.]

The City Tax Collector may, at their option, accept a State Resale Certificate as evidence that any sale is not at retail, or they may, in their discretion, require an affidavit from the seller setting forth such information respecting such sale as they deem necessary to determine the nature thereof. [Formerly numbered Section 14-32; renumbered by Ord. No. 3058, eff. 2/21/87.]

No retailer shall advertise, hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer, or that it will not be added to the selling price of the property sold, or that, if added, it or any part thereof will be refunded. [Formerly numbered Section 14-33; renumbered by Ord. No. 3058, eff. 2/21/87.]

The tax hereby levied, except as otherwise herein provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1, Division 2, of the Revenue and Taxation Code of the State, as amended and in force and effect on January 1, 1948. [Formerly numbered Section 14-34; renumbered by Ord. No. 3058, eff. 2/21/87.]

The tax imposed by this article shall be paid to the City Tax Collector on or before the last day of the month next succeeding each quarterly period, the first quarterly payment to be due and payable under this article on July 31, 1948. The first quarterly period commences April 1, 1948. [Formerly numbered Section 14-35; renumbered by Ord. No. 3058, eff. 2/21/87.]

The Council, by resolution, shall adopt rules prescribing methods and schedules for the collection and payment of the tax. Such schedules shall be so determined as to facilitate collection of this tax at the same time that the retailer collects the tax imposed under the State Sales and Use Tax Law and so as to produce an average tax return of one percent (1%) on all purchases subject to the sales tax. [Formerly numbered Section 14-36; renumbered by Ord. No. 3058, eff. 2/21/87.]

All taxes payable under this article shall be deemed delinquent if not paid when due and payable. Whenever any tax becomes delinquent, a penalty of ten percent (10%) of the amount thereof shall be imposed and added thereto. At the close of business of the last day of each calendar month thereafter, an additional penalty of five percent (5%) of the original tax shall be imposed and added. Every penalty shall become a part of the tax imposed by this article. In no case, however, shall the total penalty exceed fifty percent (50%) of the original tax. [Formerly numbered Section 14-37; renumbered by Ord. No. 3058, eff. 2/21/87.]

A. If the failure of any person to file a return, or if any part of the deficiency for which a deficiency determination is made, is due to fraud or an intent to evade this article or the authorized rules and regulations, a penalty of twenty five percent (25%) of the amount of the determination shall be added thereto in addition to all other penalties provided in this article.

B. Any person required to make, render, sign, or verify any report under the provisions of this article, who makes any false or fraudulent return with intent to defeat or evade the determination of the amount due and required to be paid hereunder, is guilty of a misdemeanor. [Formerly numbered Section 14-38; renumbered by Ord. No. 3058, eff. 2/21/87.]

Suit for the collection of any tax, including penalties, due and payable hereunder, may be filed in any court of competent jurisdiction in the State, and shall be prosecuted by the City Attorney. [Formerly numbered Section 14-39; renumbered by Ord. No. 3058, eff. 2/21/87.]

The City Tax Collector, in making a determination may offset any funds due to the retailer from the City, including any overpayments, against payments due to the City. [Formerly numbered Section 14-40; renumbered by Ord. No. 3058, eff. 2/21/87.]

Refunds of any amount, penalty, or interest, which have been paid more than once or have been erroneously or illegally collected or computed, may be allowed by the City Tax Collector with the approval of the Finance Officer, provided a written claim stating the specific ground upon which the claim is founded has been filed with the City Tax Collector within three (3) months after the overpayment was made. Failure to file a claim within the time prescribed constitutes a waiver of any demand against the City on account of overpayment. If a refund is approved, the overpayment shall be credited on any amount then due from the payor under this article, and the balance shall be refunded to the payor or their successors, administrators or executors. If disallowed, notice of disallowance, shall be served by the City Tax Collector upon the claimant by mailing such notice postage prepaid. [Formerly numbered Section 14-41; renumbered by Ord. No. 3058, eff. 2/21/87.]

No suit or proceedings shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been duly filed pursuant to Section 2-4-324 of this article. Within three (3) months after the service of the notice of disallowance of a claim filed pursuant to said Section 2-4-324 of this article, the claimant may bring an action against the City on the grounds set forth in the claim in a court of competent jurisdiction in the County for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed. If the City Tax Collector fails to serve notice of action on a claim within three (3) months after the claim is filed, the claimant may consider the claim disallowed and within three (3) months thereafter may bring an action against the City on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment. Failure to bring action within said three (3) month period constitutes a waiver of any demand against the City on account of such alleged overpayment. [Formerly numbered Section 14-42; renumbered by Ord. No. 3058, eff. 2/21/87.]

All monies collected under and pursuant to the provisions of this article, after deducting therefrom the cost and expense of administering this article, shall be deposited and paid into the following funds of the City as indicated: ninety five percent (95%) into the General Fund; five percent (5%) into the Capital Outlay Fund to be expended solely for capital outlays and public works of the City. [Formerly numbered Section 14-43; renumbered by Ord. No. 3058, eff. 2/21/87; 2800, 2446.]

No officer or employee of the City, having an administrative duty under this article, shall make known in any manner whatsoever the business affairs, operations, or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of their official duty, or the amount or source of income, profits, losses, expenditures, or any particulars thereof, set forth or disclosed in any return, or permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. However, the City Manager may, by written order authorize examination of the return by Federal or State officers or employees or by the tax officers of this or any other city if a reciprocal arrangement exists. Successors, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties. This section shall not apply to proceedings or actions to determine taxes due or to collect such taxes as provided in this article. [Formerly numbered Section 14- 44; renumbered by Ord. No. 3058, eff. 2/21/87.]