Chapter 3.07 — ALTERNATE SALES AND USE TAX

This chapter shall be known as the alternate local sales and use tax ordinance of the city.

(Ord. 1177(part), 1978).

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate of one percent (or ninety-one percent of one percent, in the event one percent is finally held by a court of competent jurisdiction to be invalid under the Jarvis-Gann Initiative) of the gross receipts of each retailer from the sale of all tangible property sold at retail in the city on and after the operative date of the ordinance codified in this chapter, and during such time as this chapter continues to be operative in the city.

(Ord. 1177(part), 1978).

This chapter shall become operative only on and after such date that the Santa Clara County uniform local sales and use tax ordinance either becomes inoperative, or, while otherwise operative, affords to any other city in the county a greater rate of sales and use tax than is afforded to the city. This chapter shall be inoperative at all times that the county of Santa Clara has the operative uniform local sales and use tax ordinance under which the rate of sales and use tax afforded the city is not less than the rate of such sales tax afforded to any other city in the county. This section shall be interpreted and applied so as to achieve the purpose set forth in Section 3.07.050.

(Ord. 1177(part), 1978).

The city council declares that the ordinance codified in this chapter is adopted to achieve the following, among other, purposes, and directs that the provisions of this chapter be interpreted in order to accomplish those purposes:

(1)

To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Government Code Section 37101;

(2)

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 Government Code Section 37101;

(3)

To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible, be consistent with the provisions of the Government Code Section 37101, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter;

(4)

To ensure that, if the Santa Clara County uniform local sales and use tax ordinance becomes inoperative, this city will continue to receive this essential source of revenue.

(Ord. 1177(part), 1978).

The city manager, or his designated representative, shall be responsible for the collection of all sales and use taxes provided for in this chapter, and the performance of all functions incident to the administration and operation thereof. In connection therewith, the city council may, from time to time, adopt by resolution such rules and regulations as it may deem are needed effectively to implement this chapter in a manner consistent therewith. Further, the city may enter into a joint powers agreement with any city in Santa Clara County, and/or the county, and/or any other governmental agency, for the centralized performance of any of the functions designated in this chapter.

(Ord. 1177(part), 1978).

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 Section 3.07.020 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city on and after the operative date.

(Ord. 1177(part), 1978).

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property 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 adopted by the State Board of Equalization.

(Ord. 1177(part), 1978).

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 Section 3.07.020 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. 1177(part), 1978).

Except as otherwise provided in this chapter, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, so far as they may be applicable, all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are adopted and made a part of this chapter as though fully set forth this chapter.

(Ord. 1177(part), 1978).

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, 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" as used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the State Treasury, or the Constitution of the state of California; the substitution shall not be made in those sections, including but not necessarily limited to, sections referred 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 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 to impose this tax with respect to certain sales, storage, use or other consumption to tangible personal property which would not be subject to tax by the state under the provisions of that Code; the substitution shall not be made in Section 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code, and the substitution shall not be made for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 or in the definition of that phrase in Section 6203.

(Ord. 1177(part), 1978).

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

(Ord. 1177(part), 1978).

There shall be excluded from the measure of the law:

(1)

The amount of any sales or use tax imposed by the state upon a retailer or consumer;

(2)

The storage, use or other consumption of tangible personal property, the gross receipts from the sales of which has been subject to sales tax under a sales and use tax ordinance enacted by any city and county, county, or city in this state;

(3)

The gross receipts from sales to, and the storage, use or other consumption of property purchased by operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this city;

(4)

The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in the generation, transmission or distribution of electricity or in the manufacture, transmission or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the state.

(Ord. 1177(part), 1978).

(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 by any city and county, or city in this state shall be exempt from the tax due under this chapter.

(c)

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

(d)

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

(e)

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

(f)

In addition to the exemptions provided in Sections 6333 and 6366.1 of the Revenue and Taxation Code the storage use or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States or any foreign government is exempted from the use tax.

(Ord. 1177(part), 1978).

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 chapter, or Part 1.5 of Division 2 of the Revenue and Taxation Code, so far as applicable, of any tax or amount of tax required to be collected.

(Ord. 1177(part), 1978).

Any person violating any of the provisions of this chapter is guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

(Ord. 1177(part), 1978).

All subsequent amendments of the Revenue and Taxation Code which related to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this chapter.

(Ord. 1619 § 1(part), 1986: Ord. 917 (part), 1973).

(a)

Section 3.07.120 shall be operative January 1, 1984.

(b)

Section 3.07.130 shall be operative on the operative date of any act of the Legislature of the state of California which amends Section 7202 of the Revenue and Taxation Code or which repeals and reenacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as the existing in subdivisions (i) (7) and (i) (8) of Section 7202 as those subdivisions read on October 1, 1983.

(Ord. 1619 § 1(part), 1986: Ord. 1496 §§ 3, 4, 1983: Ord. 917 (part), 1973).

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

(Ord. 1619 § 1(part), 1986: Ord. 917 (part), 1973).

Ordinance No. 113, adopted on the twenty-fourth day of September, 1956, is repealed; provided however, that said ordinance, as amended shall remain applicable for the purposes of the administration of said ordinance and the imposition of and the collection of tax with respect to the sales of, and the storage, use or other consumption of, tangible personal property prior to January 1, 1974, the making of referrals, effecting credits, the disposition of money collected, and for the commencement or continuance of any action or proceeding under said ordinance.

(Ord. 1619 § 1(part), 1986: Ord. 917 (part), 1973).