Corona Municipal Code Ch. 3.28 Sales and Use Tax

Sections

Statutory reference:

For statutory provisions authorizing cities to impose sales and use taxes, see Cal. Gov’t Code § 37101;

For provisions on uniform local sales and use taxes, see Rev. and Tax. Code §§ 7200 et seq.

This chapter shall be known as the Uniform Local Sales and Use Tax Ordinance of the city.

(`78 Code, § 3.28.010.)

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

(A) To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Revenue and Taxation Code, Division 2, Part 1.6;

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

(C) To adopt a sales and use tax ordinance which 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 practical 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 States Sales and Use Taxes;

(D) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible, consistent with the provisions of the Revenue and Taxation 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 record keeping upon persons subject to taxation under the provisions of this chapter.

(`78 Code, § 3.28.030.)

(A) For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate of 1% of the gross receipts of the retailer.

(B) 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 his or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State Sales and Use Tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the Board of Equalization.

(C) Except as provided in this section, and except insofar as they are inconsistent with the provisions of Revenue and Taxation Code Division 2, Part 1.5, all of the provisions of Division 2, Part 1 the Code, as amended and in force and effect on July 1, 1957, applicable to sales taxes are adopted and made a part of this section as though fully set forth in this section.

(D) Wherever, and to the event that, Revenue and Taxation Code Division 2, Part 1 is named or referred to as the taxing agency, the city shall be substituted therefor. Nothing in the subsection shall be deemed to require the substitution of the name of the city for the word "State" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Equalization or the name of the State Treasury, or of the Constitution of the state; nor shall the name of the city be substituted for that of the state in any section 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 chapter; and neither shall the substitution be deemed to have been 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 gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the state under the provisions of Revenue and Taxation Code Division 2, Part 1 nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the rate under the provisions of that code; and, in addition, the name of the city shall not be substituted for that of the state in Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6838.

(E) If a seller’s permit has been issued to a retailer under Revenue and Taxation Code § 6067, an additional seller’s permit shall not be required by reason of this section.

(F) There shall be excluded from the gross receipts by which the tax is measured:

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

(2) 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 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.

(G) There shall be excluded from the gross receipts by which the tax is measured:

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

(2) 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;

(3) 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 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.

(`78 Code, § 3.28.030.) (Ord. 1712 § 1, 1984.)

(A) An excise tax is imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer for storage, use or consumption in the city at the rate of 1% of the sales price.

(B) Except as provided in this section, and except insofar as they are inconsistent with the provisions of Revenue and Taxation Code Division 2, Part 1.6, all of the provisions of Division 2, Part 1 of the Code, as amended and in force and effect on July 1, 1957, applicable to use taxes are adopted and made a part of this section as though fully set forth in this section.

(C) Wherever, and to the extent that, Revenue and Taxation Code Division 2, Part 1 is named or referred to as the taxing agency, the city shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of the city for the word "State" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Equalization or the name of the State Treasury or of the Constitution of the state; nor shall the name of the city be substituted for that of the state in any section 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 chapter; and neither shall the substitution be deemed to have been 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 storage, use or other consumption remains subject to tax by the state under the provisions of Revenue and Taxation Code Division 2, Part 1 or to impose this tax with respect to certain 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; and, in addition, the name of the city shall not be substituted for that of the state in Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 as adopted; and the name of the city shall not be substituted for the word "State" in the phrase "retailer engaged in business in this State" in § 6203, nor in the definition of that phrase in § 6203.

(D) There shall be exempt from the tax due under this section:

(1) The amount of any sales 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 sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Revenue and Taxation Code Division 2, Part 1.6 by any city and county, county or city in this state;

(3) In addition to the exemptions provided in Revenue and Taxation Code §§ 6366 and 6366.1, the storage, use and other consumption of tangible personal property purchased by operators of aircraft and used or consumed be 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.

(E) There shall be exempt from the tax due under this section:

(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 sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Revenue and Taxation Code Division 2, Part 1.5 by any city and county, county or city in this state;

(3) The storage, use or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes;

(4) In addition to the exemptions provided in Revenue and Taxation 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.

(`78 Code, § 3.28.040.) (Ord. 1712, § 2, 1981.)

All amendments of the Revenue and Taxation Code enacted subsequent to the effective date of the ordinance codified in this chapter which relate to the sales and use tax and which are not inconsistent with Revenue and Taxation Code Division 2, Part 1.5 shall automatically become a part of this chapter.

(`78 Code, § 3.28.050.)

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 Revenue and Taxation Code Division 2, Part 1.5 of any tax or any amount of tax required to be collected.

(`78 Code, § 3.28.060.)

At the time the provisions of this chapter went into effect, the provisions of Ordinances 544 and 569 were suspended and shall not again be of any force or effect until and unless for any reason the State Board of Equalization ceases to perform the functions incident to the administration and operation of the sales and use tax imposed by this chapter; provided, however, that if for any reason it is determined that the city is without power to adopt this chapter, or that the State Board of Equalization is without power to perform the function incident to the administration and operation of the taxes imposed by this chapter, the provisions of Ordinances 544 and 569 shall not be deemed to have been suspended, but shall be deemed to have been in full force and effect at the rate of 1% continuously from and after July I, 1957. Upon the ceasing of the State Board of Equalization to perform the functions incident to the administration and operation of the taxes imposed by this chapter, the provisions of Ordinances 544 and 569 shall again be in full force and effect at the rate of 1%. Nothing in this chapter shall be construed as relieving any person of the obligation to pay to the city any sales tax accrued and owing by reason of the provisions of Ordinances 544 and 569 in force and effect prior to and including June 30, 1957.

(`78 Code, § 3.28.070.)

Section 3.28.030(G) and § 3.28.040(E) shall not be operative until the operative date of any act of the Legislature of the State of California which amends or repeals and re-enacts Revenue and Taxation Code § 7202 to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same or substantially the same language as that existing in Revenue and Taxation Code § 7202, subdivisions (i)(7) and (i)(8), as those subdivisions read on October 1, 1983, at which operative date § 3.28.030(F), as amended, and § 3.28.040(D), as amended, shall become inoperative.

(`78 Code, § 3.28.080.) (Ord. 1712 § 3, 1984.)

In the event that the Redevelopment Agency of the City of Corona adopts an ordinance pursuant to the provisions of Revenue and Taxation Code § 7202.6 which provides for the levying of a sales and use tax within a project area of the Redevelopment Agency, any retailer or other person required to pay a sales or use tax pursuant to provisions of this chapter shall be given a credit against amounts payable under this chapter in the amount of sales and/or use taxes payable to the Redevelopment Agency of the city under such ordinance adopted pursuant to the provisions of § 7202.6. In the event the Redevelopment Agency issues obligations secured in whole or in part by taxes levied pursuant to the provisions of Revenue and Taxation Code § 7202.6, the city shall not revoke this credit in whole or in part, nor shall it reduce its sales and use tax rate, during the life of such obligations. In the event that the Redevelopment Agency rescinds its ordinance pursuant to the provisions of § 7202.6, this credit shall terminate and be of no further force and effect.

(`78 Code, § 3.28.090.) (Ord. 2219 § 1, 1994; Ord. 1778 § 1, 1985.)