Daly City Municipal Code Ch. 3.30 Transaction and Use Tax

This chapter shall be known as the "Transaction and Use Tax Ordinance" of the City of Daly City.

(Ord. 1309 § 1 (part), 2004)

For the purposes of this chapter, the following terms shall have the following meanings:

"City" means the City of Daly City.

"In the city" means all territory within the city limits of the City of Daly City.

"Operative date" means the first day of the first calendar quarter commencing more than one hundred ten days after the adoption of this chapter and the approval by the voters of the City of Daly City of a measure approving the imposition of the transaction and use tax codified in this chapter; provided that, if the city shall not have entered into a contract with the State Board of Equalization as required by Section 3.30.040 prior to such date, the operative date shall be the first day of the first calendar quarter following the execution of such a contract. If this chapter is approved by the Daly City City Council, and subsequently approved by the voters at the November 2, 2004 election, and the contract is executed by March 31, 2005, the operative date shall be April 1, 2005.

(Ord. 1309 § 1 (part), 2004)

The city council hereby declares that this chapter is adopted to achieve the following purposes, among others, and directs that the provisions hereof be interpreted in order to accomplish these purposes:

A. To generate sales tax revenue to the city solely for use in the provision of municipal services by the city to the community;

B. To impose a retail transaction and use tax in accordance with the provisions of Chapter 2.3 (commencing with Section 7285.9) of Part 1.7 of Division 2 of the Revenue and Taxation Code (specifically as authorized by Revenue and Taxation Code Section 7285.9) and the applicable provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, which authorizes a city to levy a transaction and use tax 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, which election shall be consolidated with a regularly scheduled general election for members of the city council, in accordance with Section 2(b) of Article XIII of the California Constitution;

C. To adopt retail transaction and use tax regulations that incorporate provisions identical to those of the Transaction and Use Tax Law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.7 and the applicable portions of Part 1.6 of Division 2 of the Revenue and Taxation Code;

D. To adopt retail transaction and use tax regulations that impose a tax and provide a measure therefore that can be administered and collected by the State Board of Equalization 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 Board of Equalization in administering and collecting the California State Sales and Use Taxes;

E. To adopt retail transaction and use tax regulations that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.7 and the applicable provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code.

(Ord. 1309 § 1 (part), 2004)

Prior to the operative date, the city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this chapter.

(Ord. 1309 § 1 (part), 2004)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the City of Daly City at the rate of one-quarter of one percent of the gross receipts of any retailer from the sale of tangible personal property sold at retail in the city on or after the operative date of this chapter.

(Ord. 1309 § 1 (part), 2004)

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.

(Ord. 1309 § 1 (part), 2004)

An excise tax is hereby imposed on the storage, use or other consumption in the City of Daly City of tangible personal property purchased from any retailer on or after the operative date of this chapter, for storage, use or other consumption at the rate of one-quarter of one percent of the sales price of the personal property. The sales price shall include delivery charges which such charges are subject to state sales or use tax regulations of the place to which delivery is made.

(Ord. 1309 § 1 (part), 2004)

A. Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.7 and the applicable provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code all of the provisions of Part 1, (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein.

B. Part 1.7 of Division 2 of the Revenue and Taxation Code, including, but not limited to, Sections 7285.9, 7285.91 and 7285.92 of the Revenue and Taxation Code, and Sections 7261 and 7262 of Part 1.6 of Division 2 of the Revenue and Taxation Code, and the state regulations implementing Part 1.7 (and Part 1.6 where applicable) of Division 2 of the Revenue and Taxation Code, as set forth in Article 20, of the California Code of Regulations, are hereby adopted as they are written now and as they may later be amended, and are made a part of this chapter as if fully set forth herein.

(Ord. 1309 § 1 (part), 2004)

In adopting the above stated and relevant provisions of the Revenue and Taxation Code:

Wherever the "state of California" is named or referred to as the taxing agency, the name of the "City of Daly City" shall be substituted therefore. However, the substitution shall not be made:

A. When the word "state" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the state of California;

B. When the result of that substitution would require action to be taken by or against the city or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter;

C. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the state of California, where the result of the substitution would be to:

1. 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

2. 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 said provision of that code;

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

(Ord. 1309 § 1 (part), 2004)

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

(Ord. 1309 § 1 (part), 2004)

A. There shall be excluded from the measure of the transaction tax and the use tax the amount of any sales tax or use tax imposed by the state of California or by the county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transaction or use tax.

B. There are exempted from the computation of the amount of transaction 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 his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this subsection, delivery to a point outside the city shall be satisfied:

a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code 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, his or her 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.

C. 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.

D. 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.

E. For the purposes of subsections C and D 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.

F. 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 transaction tax under any state-administered transaction 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 Sections 6366 and 6366.1 of the Revenue and Taxation Code of the state of California;

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 (F)(3) and (F)(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 (F)(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 Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. 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.

(Ord. 1309 § 1 (part), 2004)

All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, 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.

(Ord. 1309 § 1 (part), 2004)

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 Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

(Ord. 1309 § 1 (part), 2004)

If any sentence, provision, section or subsection of the chapter is inconsistent with any other sentence, provision, section or subsection of the Daly City Municipal Code, to and including Chapter 3.28 of the Daly City Municipal Code, the sentence, provision, section or subsection of this chapter shall prevail over other sections of the Daly City Municipal Code.

(Ord. 1309 § 1 (part), 2004)