Article II

Covina Redevelopment Agency Sales and Use Tax

This article shall be known as the Covina redevelopment agency of the city of Covina sales and use tax ordinance.

• (Ord. CRA 1 § 1, 1994)

• A. 1. For the privilege of selling tangible personal property at retail, a tax is hereby imposed by the Covina redevelopment agency of the city upon all retailers located within the area described more fully in Exhibit A attached to the original ordinance and by this reference incorporated herein (the "redevelopment project") at the rate of one percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail within the redevelopment project on and after the operative date of this article.

  2. 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-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 of California 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.

• B. 1. Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the state (the "Code"), all of the provisions of Part 1 (commencing with the Section 6001) of Division 2 of the Code, as amended and in force and effect on August 17, 1993, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein.

  2. Wherever, and to the extent that, in Part 1 (commencing with Section 6001) of Division 2 of the Code, the state is named or referred to as the taxing agency, the name "Covina Redevelopment Agency of the City of Covina" shall be substituted therefor. Nothing in this subsection shall be deemed to require substitution of the name "Covina Redevelopment Agency of the City of Covina" for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 of the Code nor in the definition of that phrase in Section 6203 of the Code.

  3. If a seller's permit has been issued to a retailer under Section 6067 of the Code, an additional seller's permit shall not be required by reason of subsection (B)(2) of this section.

  4. There shall be excluded from the gross receipts by which the tax due under this section is measured, the amount of any sales or use tax imposed by the state upon a retailer or consumer.

5. There shall be exempt from the tax due under this section the gross receipts from the sale of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the redevelopment project and the city in which the sale is made and directly and exclusively in use of such aircraft as common carriers of persons or property under the authority of the laws of the state, the United States, or any foreign government.

• (Ord. CRA 1 § 1, 1994)

• A. An excise tax is hereby imposed by the agency on the storage, use or other consumption in the redevelopment project of tangible personal property purchased from any retailer on or after August 17, 1993, for storage, use or other consumption in the redevelopment project 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.

• B. 1. Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Code, as amended and in force and effect on August 17, 1993, applicable to use taxes, are hereby adopted and made a part of this section as though fully set forth herein.

  2. Wherever, and to the extent that, in Part 1 (commencing with Section 6001) of Division 2 of the Code, the state is named or referred to as the taxing agency, the name "Covina Redevelopment Agency of the City of Covina" shall be substituted therefor. Nothing in this subsection shall be deemed to require substitution of the name "Covina Redevelopment Agency of the City of Covina" for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 of the Code nor in the definition of that phrase in Section 6203 of the Code.

  3. There shall be excluded from the amount subject to tax under this section any sales or use tax imposed by the state upon a retailer or consumer.

  4. There shall be exempt from the tax due under this section:

     • a. The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1 or 1.5 of Division 2 of the Code by any city and county, county, city or redevelopment agency in the state; and

     • b. In addition to the exemptions provided in Sections 6366 and 6366.1 of the 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 the state, the United States, or any foreign government.

• (Ord. CRA 1 § 1, 1994)

Prior to the operative date of this article, the secretary of the agency shall cause the agency to contract with the State Board of Equalization to perform all functions incident to the administration and operation of this article; provided, however, that if the agency shall not have contracted with the State Board of Equalization prior to 31 days before the operative date of this article, this article shall not become operative until 31 days following the execution of such a contract by and between the agency and the State Board of Equalization, shall continue in effect so long as the county of Los Angeles and the city of Covina shall have operative sales and use tax ordinances enacted pursuant to Part 1.5 of Division 2 of the Code. (Ord. CRA 1 § 1, 1994)

All amendments subsequent to the effective date of the enactment of Part 1 (commencing with Section 6001) of Division 2 of the Code relating to sales and use tax and not inconsistent with Part 1.5 of Division 2 of the Code shall automatically become a part of this article. (Ord. CRA 1 § 1, 1994)

Prior to enacting this article, the agency considered the applicability of Section 4 of Article XIII A of, and Article XIII B of, the California Constitution to this article and hereby finds and determines that this article does not violate any of the provisions of the California Constitution. (Ord. CRA 1 § 1, 1994)