Delano Municipal Code Ch. 3.18 Transactions and Use Tax for Essential General Fund Services

This chapter shall be known as the City of Delano Transactions and Use Tax for Essential General Fund Services Ordinance. The City of Delano hereinafter shall be called the "city." This chapter shall be applicable in the incorporated territory of the city.

(Ord. No. 2007-1160, § 1, 9-4-2007)

The authority to levy the tax imposed by this chapter shall be effective unless and until repealed by a vote of the people. The city shall immediately notify the State Board of Equalization in writing in the event that the tax is terminated. The operative date of such termination shall be the first day of the first calendar quarter commencing more than one hundred ten days after the State Board of Equalization receives such notice of termination.

(Ord. No. 2007-1160, § 2, 9-4-2007; Ord. No. 2016-1286, § 1, 8-1-2016; Ord. No. 2025-1368, § 2, 12-15-2025)

This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this tax chapter which shall be operative if a simple majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides 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 Tax.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions 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.

(Ord. No. 2007-1160, § 3, 9-4-2007)

Prior to the operative date, the city shall contract with the State Board of Equalization to perform all function incident to the administration and operation of the transactions and use tax ordinance; provided, that if the city shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first date of the first calendar quarter following the execution of such a contract.

(Ord. No. 2007-1160, § 4, 9-4-2007)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of the ordinance codified in this chapter.

(Ord. No. 2007-1160, § 5, 9-4-2007)

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 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 retailer sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.

(Ord. No. 2007-1160, § 6, 9-4-2007)

An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of the ordinance codified in this chapter for storage, use or other consumption in said territory at the rate of one percent of the sales prices 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. No. 2007-1160, § 7, 9-4-2007)

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the 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.

(Ord. No. 2007-1160, § 8, 9-4-2007)

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Whenever the State of California is named or referred to as the taxing agency, the name of this city shall be substituted therefore. However, the substitution shall not be made when:

1. 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;

2. The result of the substitution would require action to be taken by or against this 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 the chapter.

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

a. 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

b. 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.

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

B. The word "city" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 and in definition of that phrase in Section 6203.

(Ord. No. 2007-1160, § 9, 9-4-2007)

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

(Ord. No. 2007-1160, § 10, 9-4-2007)

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

B. There are exempted from the computation of the amount of transactions 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 city in which the sale is made and directly and exclusively in the use of such aircraft as common carriers or persons or property under the authority of the laws of the state, the United States, or any foreign government.

2. Sales of property to be used outside of 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 purpose of this paragraph, 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 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.

3. 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 the ordinance codified in this chapter.

4. 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 the ordinance codified in this chapter.

5. For the purpose of subsections 3. and 4. of this section, the sales 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 part to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. 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 transactions tax under any state-administered transactions 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 or 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 exemption 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 the ordinance codified in 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 the ordinance codified in this chapter.

5. For the purpose of subsections 3. and 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 7., 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.

D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property, the storage, use or other consumption of which is subject to the use tax.

(Ord. No. 2007-1160, § 11, 9-4-2007)

All amendments subsequent to the effective date of the ordinance codified in 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 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. No. 2007-1160, § 12, 9-4-2007)

In order to provide a broad perspective and assist in the effective, wise and efficient use of this additional general funds generated as a result of this chapter, an independent citizens review committee (hereinafter "committee") shall be created hereby.

The committee shall review all the collection and expenditure of revenues generated as a result of the adoption of the ordinance codified in this chapter.

A. The committee shall do all of the following:

1. Hold at least one public hearing annually to discuss and report on the collection and uses of the revenues generated by this transactions and use tax measure.

2. Prior to holding such hearing, the committee shall have access to all audits performed for the city by independent auditors.

3. Prepare a report on how the revenues collected pursuant to this chapter are spent by the City of Delano.

4. Make available to the general public copies of the report and publish a notice of the availability of such report as soon as it becomes available.

5. The committee shall be subject to the Ralph M. Brown Act and all meetings of the committee shall be duly noticed.

B. Each member of the committee shall be appointed by the council as a whole. In order to qualify for appointment (and to continue) as a member of the committee, a person must meet the following minimum requirements:

1. Cannot be a current elected official of any federal, state or local government agency.

2. Must live within the city limits of the City of Delano and be a registered voter.

3. The committee shall consist of five residents.

C. The initial term of the committee members term shall be three years.

D. In making the appointments to the committee, the council shall consider the following:

The committee members will be selected to reflect a balance of viewpoints across the city. This includes appointing a committee that will provide a balance of viewpoints, geography, age, gender and ethnicity to represent the different perspectives of taxpayers throughout the City of Delano.

E. Notwithstanding any other provision herein contained, should the city establish any committee by ordinance for the review of any tax measure approved by the electorate, that committee may be used to perform the requirements of this chapter in lieu of creating the committee as described herein.

(Ord. No. 2007-1160, § 13, 9-4-2007)

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. No. 2007-1160, § 14, 9-4-2007)

Upon approval of the ordinance codified in this chapter by a simple majority of the electors voting on the measure, the city may adopt policies and take such other action as may be necessary for the implementation of the transactions and use tax authorized by this chapter.

(Ord. No. 2007-1160, § 15, 9-4-2007)

Upon voter approval of the measure, the city shall have the authority to issue bonds payable from the proceeds of the tax to accelerate the improvement of essential fund services. The maximum bonded indebtedness which may be outstanding at any one time shall be an amount equal to the sum of the principal of, and interest on, the bonds, but not to exceed the estimated proceeds of the tax. The amount of bonds outstanding at any one time does not include the amount of bonds, refunding bonds, or bond anticipation notes for which funds necessary for the payment thereof have been set aside for that purpose in a trust or escrow account.

(Ord. No. 2007-1160, § 16, 9-4-2007)

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. If any section, subsection, sentence, clause, or phrase of this chapter is for any reason held to be unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this chapter. The city council hereby declares that it would have passed the ordinance codified in this section and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more section, subsection, sentence, clause or phrase be declared unconstitutional or otherwise invalid.

(Ord. No. 2007-1160, § 17, 9-4-2007)