Chapter 35 — FINANCE, REVENUE AND TAXATION

FEES FROM PERMITS AND CERTIFICATES

For the purpose of this subchapter, FEE shall mean those charges authorized by law and made collectible for services rendered or to be rendered or for the issuance of permits or certificates of inspection by officers and departments of the city. ('63 Code, § 8-1.01) (Ord. 2146, passed - - )

(A) Permits and certificates not construed to be licenses. No permit or certificate of inspection required by this subchapter for which a fee is collected shall be construed to be a license to engage in any business for which a license is required by law. ('63 Code, § 8-1.02)

(B) Validity. The validity of permits and certificates of inspection issued pursuant to the provisions of this subchapter shall remain contingent upon strict compliance with the laws of the state and the city, and such permits and certificates of inspection may be revoked or canceled when it becomes evident that such laws are not being strictly complied with. ('63 Code, § 8-1.03)

(C) Transferability. No permit or certificate of inspection issued pursuant to the provisions of this subchapter shall be transferable, nor shall any such permit or certificate of inspection be assignable. ('63 Code, § 8-1.04)

(Ord. 2146, passed - - ) Penalty, see § 35.999

The following fees, unless otherwise specifically provided, shall be deposited into the general fund of the city not later than the fifth day of the month following the month in which any such fee was collected:

• (A) Fees of the Building Inspector as provided by Chapter 150 of this code;

• (B) Fees of the Plumbing Inspector and Examining Board of Plumbers;

• (C) Fees of the Electrical Inspector;

• (D) Fees of the Poundmaster and pound as provided by Chapter 91 of this code;

(E) Fees of the Water Department as provided by Chapter 53 of this code.

('63 Code, § 8-1.05) (Ord. 2146, passed - - ; Am. Ord. 2169, passed - - )

FUNDS

(A) A sewer service fund is hereby established. It shall consist of revenue from sewer service fees and revenues from sewer connection charges.

(B) All revenue obtained from sewer service fees shall be deposited into said fund, shall be accounted for separately, and shall be expended for the acquisition, construction, reconstruction, maintenance, and operation of wastewater facilities, including payment of interest and principal on bonds issued for such purposes.

(C) All revenue obtained from sewer connection charges shall be deposited into said fund, shall be accounted for separately and shall be expended for the acquisition, construction, and reconstruction of the wastewater system, including payment of interest and principal on bonds issued for such purposes. Said fund may also provide a capital reserve for depreciation and enlargement of the wastewater system.

(D) The terms “sewer service fees” and “sewer connection charges” as used herein shall apply to those funds collected for the use of the wastewater system and shall not be construed to affect revenues derived from the plumbing permit fees.

(E) Nothing contained in this section shall be construed to restrict or prohibit the making of transfers from said sewer service fund for the purpose of making loans to one or more of the various departments of the city providing the Council first finds, after a public hearing, that a fiscal emergency does exist. Loans shall be restored annually to the sewer service fund on or before the last day of each fiscal year along with interest charged at a rate consistent with that earned by reserves held in deposit by the sewer fund.

(F) Nothing herein shall prohibit the pooled investment of sewer funds.

('63 Code, § 8-2.101) (Ord. 414-C.S., passed 10-2-84)

Cross-reference:

Sewers, see Ch. 50

(A) A water service fund is hereby established. It shall consist of revenue from water service fees and revenues from water connection charges.

(B) All revenue obtained from water service fees shall be deposited into said fund, shall be accounted for separately, and shall be expended for the acquisition, construction, reconstruction, maintenance, and operation of water facilities, including payment of interest and principal on bonds issued for such purposes.

(C) All revenue obtained from water connection charges shall be deposited into said fund, shall be accounted for separately and shall be expended for the acquisition, construction and reconstruction of the water system, including payment of interest and principal on bonds issued for such purposes. Said fund may also provide a capital reserve for depreciation and enlargement of the water system.

(D) The terms “water service fees” and “water connection charges” as used herein shall apply only to those funds collected for the use of the water system and shall not be construed to affect revenues derived from the plumbing permit fees.

(E) Nothing contained in this section shall be construed to restrict or prohibit the making of transfers from said water service fund for the purpose of making loans to one or more of the various departments of the city providing the Council first finds, after a public hearing, that a fiscal emergency does exist. Loans shall be restored annually to the water service fund on or before the last day of each fiscal year along with interest charged at a rate consistent with that earned by reserves held in deposit by the water fund.

(F) Nothing herein shall prohibit the pooled investment of water funds. ('63 Code, § 8-2.102) (Ord. 414-C.S., passed 10-2-84)

Cross-reference:

Water, see Ch. 53

(A) Creation. There is hereby created a fund to be known as the Recreation Fund. ('63 Code, § 8-2.201)

(B) Deposits and withdrawals. All tax moneys received from the special recreation tax, as authorized by the vote of the electorate of the city, shall be deposited in the Recreation Fund, and all claims, demands, or warrants against the Recreation Department shall be drawn from such fund.

('63 Code, § 8-2.202)

(Ord. 2349, passed - - )

(A) Creation. In order to comply with the provisions of Cal. Sts. & High. Code Divs. 1 and 3, Art. 5 with particular reference to the amendments made thereto by Cal. Sts. & High. Code § 2113, there is hereby created in the city treasury a special fund to be known as the Special Gas Tax Street Improvement Fund.

('63 Code, § 8-2.301)

(B) Deposits. All moneys received by the city from the state under the provision of the Streets and Highways Code for the acquisition of real property or interests therein for, or the construction, maintenance, or improvement of streets or highways other

than state highways, shall be paid into the Special Gas Tax Street Improvement Fund. ('63 Code, § 8-2.302)

(C) Use of fund. All moneys in the Special Gas Tax Street Improvement Fund shall be expended exclusively for, the purposes authorized by, and subject to, all the provisions of Cal. Sts. & High. Code Divs. 1 and 3, Art. 5. ('63 Code, § 8-2.303)

(Ord. 2049, passed - - )

Cross-reference:

Streets and sidewalks, see Ch. 98

PROPERTY TAXES

The duties of assessing property for the purpose of taxation and of collecting taxes, now performed by the City Assessor and the Director of Finance as ex officio Tax Collector of the city under the direction of the City Manager, are hereby transferred to the Assessor and the Tax Collector, respectively, of the County, and from and after the effective date of this subchapter, all property in the city shall be assessed and all taxes thereon shall be collected in accordance with the provisions of Cal. Gov't Code Title 5, Div. 1, Part 2, Ch. 2, Art. 2 (commencing with § 51540).

('63 Code, § 8-3.01) (Ord. 63-C.S., passed 12-2-65; Am. Ord. 384-C.S., passed 5-17-83)

The Council, by resolution, is hereby authorized to provide for the collection of special assessments heretofore or hereafter levied for municipal improvements and other purposes at the same time and in the same manner as county taxes are collected, and all laws applicable to the levy, collection, and enforcement of county taxes shall be and are hereby made applicable to such special assessments.

('63 Code, § 8-3.02) (Ord. 63-C.S., passed 12-2-65)

The amount of compensation to be charged by and paid to the county for the performance of services under the provisions of this subchapter shall be fixed by agreement between the Board of Supervisors of the county and the Council. ('63 Code, § 8-3.03) (Ord. 63-C.S., passed 12-2-65)

On or before the first Monday of July of each year, the Council shall cause to be filed with the County Auditor a description of the exterior boundaries of each district or portion of the city in which a rate of taxation is to be levied which is different from the rate to be levied in any other district or portion of the city.

('63 Code, § 8-3.04) (Ord. 63-C.S., passed 12-2-65)

Annually, after adoption of the budget and before fixing the rate of taxes, the Council shall fix by ordinance or resolution the amount of revenue from property taxes necessary to carry on the functions and activities of the city and of its various departments and to pay the bonded or other indebtedness of the city or any portion or district of the city. After receiving from the County Auditor a written statement showing separately the total value of all property within the city and the total value of all property in each district or portion of the city in which a different rate of taxation is to be levied, but not later than the last Tuesday in August, the Council shall fix by ordinance or resolution the rate of taxes, or rates of taxes, if different portions or districts require different rates, designated in the number of cents upon each $100, using as a basis the value of the property assessed and equalized by the county. The rates shall be sufficient to raise the amount fixed by ordinance or resolution and the expense of collection. The Council shall immediately transmit to the County Auditor a statement of the rates fixed.

('63 Code, § 8-3.05) (Ord. 63-C.S., passed 12-2-65)

The offices of Assessor and Tax Collector of the city are hereby abolished. All duties performed by the City Assessor, other than the assessing of city property, are hereby transferred to and are to be performed by the City Manager. All duties performed by the City Tax Collector, other than the collection of taxes, are hereby transferred to and are to be performed by the Director of Finance of the city under the direction of the City Manager. ('63 Code, § 8-3.06) (Ord. 63-C.S., passed 12-2-65)

Ordinance Nos. 294, 2069, 2094, 2102, 2110, 2199, 2412, and 2415, relating to property taxation, and all ordinances amendatory thereof, are repealed only to the extent that the same are in conflict with this subchapter, the express intention being that all the provisions of said ordinances shall remain in effect insofar as the same relate or apply to the collection of special assessments for municipal improvements or other purposes heretofore or hereafter levied, unless the Council has adopted a resolution pursuant to § 35.031 of this subchapter transferring the city's duties of collection to the county, and to the collection of taxes heretofore levied or installments thereof heretofore be made.

('63 Code, § 8-3.07) (Ord. 63-C.S., passed 12-2-65) SALES AND USE TAX

(A) Short title. This chapter shall be known as the Uniform Local Sales and Use Tax Ordinance. ('63 Code, § 8-4.01)

(B) Operative date. This chapter shall be operative on January 1, 1984.

('63 Code, § 8-4.03)

(Ord. 397-C.S., passed 12-20-83)

The rate of sales tax and use tax imposed by this subchapter shall be 1%. ('63 Code, § 8-4.02) (Ord. 397-C.S., passed 12-20-83)

The City Council hereby declares that this subchapter 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 adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Cal. Rev. & Tax. Code Div. 2, Part 1.5;

(B) To adopt a sales aid 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 Cal. Rev. & Tax. Code Div. 2, Part 1.5;

(C) To adopt a sales and use tax ordinance which imposes a tax and 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 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;

(D) 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 Cal. Rev. & Tax. Code Div. 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 subchapter.

('63 Code, § 8-4.04) (Ord. 397-C.S., passed 12-20-83)

Prior to the operative date of this subchapter, this city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax ordinance; provided, that if this 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 day of the first calendar quarter following the execution of such a contract rather than the first day of the first calendar quarter following the adoption of this subchapter.

('63 Code, § 8-4.05) (Ord. 397-C.S., passed 12-20-83)

(A) Sales tax. For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the city at the rate stated in § 35.051 of this subchapter 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. ('63 Code, § 8-4.06)

(B) Place of sale. For the purposes of this subchapter, 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 sale 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 State Board of Equalization. ('63 Code, § 8-4.07)

(Ord. 397-C.S., passed 12-20-83)

An excise tax is hereby 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 § 35.051 of this subchapter 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.

('63 Code, § 8-4.08) (Ord. 397-C.S., passed 12-20-83)

(A) Adoption of provision of state law. Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Cal. Rev. & Tax. Code Part 1.5 of Division 2, all of the provisions of Cal. Rev. & Tax. Code Part 1 of Division 2 are hereby adopted and made a part of this subchapter as though fully set forth herein. ('63 Code, § 8-4.09)

(B) Limitation on adoption of state law. In adopting the provisions of Cal. Rev. & Tax. Code Part 1 of Division 2, 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” is 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 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 subchapter; the substitution shall not be 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 sales, storage, use, or other consumption of tangible personal property which would 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 Cal. Rev. & Tax. Code Part 1 of Division 2 or to 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 provisions of that code; the substitution shall not be made in Cal. Rev. & Tax. Code, §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828; and the substitution

shall not be made for the word “State” in the phrase “retailer engaged in business in this State” in Cal. Rev. & Tax. Code § 6203 or in the definition of that phrase in Cal. Rev. & Tax. Code § 6203.

('63 Code, § 8-4.10)

(Ord. 397-C.S., passed 12-20-83)

If a seller's permit has been issued to a retailer under Cal. Rev. & Tax. Code, § 6067, an additional seller's permit shall not be required by this subchapter.

('63 Code, § 8-4.11) (Ord. 397-C.S., passed 12-20-83)

(A) The amount subject to tax shall not include any sales or use tax imposed by the state on 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 in accordance with Cal. Rev. & Tax. Code Part 1.5 of Division 2 by any city and county, county, or city in this state shall be exempt from the tax due under this subchapter.

(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 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.

(D) In addition to the exemptions provided in Cal. Rev. & Tax. 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 is exempted from the use tax.

(E) This section shall be operative January 1, 1984.

('63 Code, § 8-4.12) (Ord. 397-C.S., passed 12-20-83)

All subsequent amendments of the Cal. Rev. & Tax. Code which relate to the sales and use tax and which are not inconsistent with Cal. Rev. & Tax. Code Part 1.5 of Division 2 shall automatically become a part of this subchapter. ('63 Code, § 8-4.13) (Ord. 397-C.S., passed 12-20-83)

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 subchapter, or Cal. Rev. & Tax. Code, Part 1.5 of Division 2, of any tax or any amount of tax required to be collected. ('63 Code, § 8-4.14) (Ord. 397-C.S., passed 12-20-83) Penalty, see § 35.999

TRANSIENT OCCUPANCY TAX

This subchapter shall be known and cited as the “Transient Occupancy Tax Law” of the city. ('63 Code, § 8-5.01) (Ord. 30-C.S., passed 1-30-65; tax operative passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83)

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

OCCUPANCY. The use or possession, or the right to use or possession, of any public or private campground, of any room, or portion thereof, in any transient accommodation for dwelling, lodging, or sleeping purposes.

OPERATOR. The person who is the proprietor of the transient accommodation, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this subchapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this subchapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

PERSON. Any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

RENT. The consideration charged, whether or not received, for the occupancy of space in a transient accommodation valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, property, and services of any kind or nature, without any deduction therefrom whatsoever.

TRANSIENT ACCOMMODATION. Any structure, or any portion of any structure, or public or private campground which is occupied, or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes and shall include any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure, or public or private campground, or portion thereof.

TRANSIENT. Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in transient accommodation shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the provisions of this subchapter may be considered.

('63 Code, § 8-5.02) (Ord. 30-C.S., passed 1-30-65; tax operative passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83; Am. Ord. 400-C.S., passed 3-6-84)

For the privilege of occupancy in any transient accommodation, each transient shall be subject to and shall pay a tax in the amount of 10% of the rent charged by the operator on or after January 1, 2009. Such tax shall constitute a debt owed by the transient to the city, which debt shall be extinguished only by paying to the operator or to the city. The transient shall pay the tax to the operator of the transient accommodation at the time rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the transient accommodation. If for any reason the tax due is not paid to the operator of the transient accommodation, the Director of Finance may require that such tax shall be paid directly to the Director of Finance.

(‘63 Code, § 8-5.03) (Ord. 30-C.S., passed 1-30-65; Am. Ord. 106-C.S., passed 6-15-68; Am. Ord. 234-C.S., passed 8-16-74; tax operative, passed 10-1-74; Am. Ord. 371-C.S., passed 9-2-82; tax operative passed 1-1-83; Am. Ord. 382-C.S., passed 5-17-83; Am. Ord. 400-C.S., passed 3-6-84; Am. Ord. 546-C.S., passed 7-2-92; Am. Ord. 733-C.S., passed 12-16-08; Am. Ord. 840-C.S., passed 7-5-16) Penalty, see § 35.999

(A) No tax shall be imposed upon:

(1) Any person as to whom, or any occupancy as to which, it is beyond the powers of the city to impose the tax provided for in this subchapter; or,

(2) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

(B) No exemption shall be granted except upon a claim therefore made at the time the rent is collected and under penalty of perjury upon a form prescribed by the Director of Finance.

('63 Code, § 8-5.04) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 60-C.S., passed 11-5-65; Am. Ord. 382-C.S., passed 5-17-83) Penalty, see § 35.999

Each operator shall collect the tax imposed by the provisions of this subchapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator shall advertise or state in any manner, whether directly or indirectly, that the tax, or any part thereof, will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner provided in this subchapter.

('63 Code, § 8-5.05) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83; Am. Ord. 400-C.S., passed 3-6-84) Penalty, see § 35.999

On or before January 1, 1983, or within 30 days after commencing business, whichever is later, each operator of a hotel renting an occupancy to transients shall register such transient accommodation with the Director of Finance and obtain from him a “Transient Occupancy Registration Certificate” which shall at all times be posted in a conspicuous place on the premises. Such certificate shall, among other things, set forth the following information:

• (A) The name of the operator;

• (B) The address of the transient accommodation;

• (C) The date upon which the certificate was issued; and,

(D) A statement as follows: “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Transient Occupancy Tax regulations by registering with the Director of Finance for the purpose of collecting from transients the Transient Occupancy Tax and remitting such tax to the Director of Finance. This certificate shall not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, not to operate a transient accommodation without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit from any board, commission, department, or office in this city. This certificate shall not constitute a permit.”

('63 Code, § 8-5.06) (Ord. 30-C.S., passed 1-3-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83; Am. Ord. 400-C.S., passed 3-6-84)

Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Director of Finance, make a return to the Director of Finance, on forms provided by him, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Director of Finance. The Director of Finance may establish shorter reporting periods for any certificate holder if he deems it necessary in order to insure collection of the tax, and he may require further information in the return. Returns and payments shall be due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to the provisions of this subchapter shall be held in trust for the account of the city until payment thereof is made to the Director of Finance.

('63 Code, § 8-5.07) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83)

(A) Original delinquency. Any operator who shall fail to remit any tax imposed by the provisions of this subchapter within the time required shall pay a penalty in the amount of 10% of the tax in addition to the amount of the tax.

(B) Continued delinquency. Any operator who shall fail to remit any delinquent remittance, on or before a period of 30 days following the date of which the remittance first became delinquent shall pay a second delinquency penalty in the amount of 10% of the tax in addition to the amount of the tax and the 10% penalty first imposed.

(C) Fraud. If the Director of Finance shall determine that the nonpayment of any remittance due pursuant to the provisions of this subchapter is due to fraud, a penalty in the amount of 25% of the amount of the tax shall be added thereto in addition to the penalties set forth in divisions (A) and (B) of this section.

(D) Interest. In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this subchapter shall pay interest at the rate of 1.5% per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(E) Penalties and interest merged with tax. Every penalty imposed, and such interest as accrues, pursuant to the provisions of this section shall become a part of the tax required to be paid by the provisions of this subchapter.

(F) Waiver of penalties and interest. Any other provision of this section to the contrary notwithstanding, if any operator shall fail to remit any tax imposed by this subchapter within the time required, the Director of Finance, on written application therefor and good cause shown, may waive any penalties and interest imposed under this section provided the operator remits any tax imposed by this subchapter within 72 hours following the time the remittance first became delinquent.

('63 Code, § 8-5.08) (Ord. 30-C.S., passed 1-30-65; Am. Ord. 84-C.S., passed 1-26-67, operative 10-1-66; tax operative, passed 3- 1-65; Am. Ord. 382-C.S., passed 5-17-83)

If any operator shall fail or refuse to collect such tax and to make within the time provided in this subchapter, any report and remittance of such tax, or any portion thereof required by the provisions of this subchapter, the Director of Finance shall proceed in such manner as he may deem best to obtain the facts and information on which to base his estimate of the tax due. As soon as the Director of Finance shall procure such facts and information as he is able to obtain upon which to base the assessments of any such tax imposed by the provisions of this subchapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, the Director of Finance shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by the provisions of this subchapter. In the event such determination is made, the Director of Finance shall give notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. Such operator may, within ten days after the service or mailing of such notice, make an application in writing to the Director of Finance for a hearing on the amount assessed. If an application by the operator for a hearing is not made within the time prescribed, the tax, interest, and penalties, if any, determined by the Director of Finance shall become final and conclusive and immediately due and payable. If such an application is made, the Director of Finance shall give not less than five days' written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in notice why the amount specified therein should not be fixed for such tax, interest, and penalties. At such hearing the operator may appear and offer evidence why such specified tax, interest, and penalties shall not be so fixed. After such hearing the Director of Finance shall determine the proper tax to be remitted and shall thereafter give written notice to the operator in the manner prescribed in this section of such determination and the amount of such tax, interest, and penalties. The amount determined to be due shall be payable 15 days after the service or mailing of such notice unless an appeal is filed as provided in § 35.079 of this section.

('63 Code, § 8-5.09) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83) Penalty, see § 35.999

(A) Any operator aggrieved by any decision of the Director of Finance with respect to the amount of such tax, interest, and penalties, if any, may appeal to the Council by filing a notice of appeal with the City Clerk within 15 days after the service or mailing of the determination of the tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in this subchapter for the service of a notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(B) 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 city or an officer thereof, to prevent or enjoin the collection of taxes sought to be collected pursuant to this chapter and payment of all tax, interest and penalties shall be required as a condition precedent to seeking judicial review of any tax liability. ('63 Code, § 8-5.10) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83; Am. Ord. 744-C.S., passed 10-20-09)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by the provisions of this subchapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of any payment to the city, which records the Director of Finance shall have the right to inspect at all reasonable times.

('63 Code, § 8-5.11) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83)

(A) Whenever the amount of any tax, interest, or penalty has been overpaid, or paid more than once, or erroneously or illegally collected or received by the city pursuant to the provisions of this subchapter, such amount may be refunded as provided in divisions (B) and (C) of this section provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director of Finance within three years after the date of payment. This claim shall be on forms furnished by the Director of Finance.

(B) Any operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established in a manner prescribed by the Director of Finance that the person from whom the tax has been collected was not a transient; provided, however, neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

(C) A transient may obtain a refund of taxes overpaid, paid more than once, or erroneously or illegally collected or received by the city by filing a claim in the manner provided in division (A) of this section but only when the tax was paid by the transient directly to the Director of Finance or when the transient, having paid the tax to the operator, establishes to the satisfaction of the Director of Finance that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) No refund shall be paid pursuant to the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.

('63 Code, § 8-5.12) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83)

(A) Actions to collect. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the City of Eureka for the recovery of such amount.

(B) Recording tax lien . If any amount required to be paid to the city under this chapter is not paid when due, the Finance Director may record in the Office of the Humboldt County Recorder a certificate which specifies the amount of tax, penalties and interest due, the name and address of the operator owing the tax and liable therefor as it appears on the tax assessment roll, and the fact that the Finance Director has complied with all provisions of this chapter in the determination of the tax, interest and penalties required to be paid. From the date of recording in the Office of the Humboldt County Recorder, the amount to be paid together with interest and penalties shall constitute a lien upon the real property in the county owned by the operator or acquired by the operator afterwards and before the lien expires. The lien shall have the force, effect and priority of a judgment lien and shall continue for ten years from the time of recordation of the lien unless sooner released or otherwise discharged.

(C) Assessment and lien . Whenever delinquent taxes and penalties are not paid to the city after proper notice, the total uncollected amount including tax, penalties and administrative fees may become assessments, and the City Clerk may compile a list of such assessments together with parcel number designations and addresses upon which the assessments are being fixed. After

notice and hearing, and upon confirmation of the imposition of the liens by resolution of the City Council, the City Clerk shall file a certified copy of the approved resolution with the Humboldt County Tax Collector, directing that all unpaid transient occupancy taxes, penalties and administrative fees be entered as lien charges against said property as it appears on the current assessment roll. Liens shall be collected at the same time and in the same manner, subject to the same penalties and interest upon delinquencies, as the general real property taxes are collected for the city. The City Clerk shall present for recording appropriate notices of the imposition of these liens with the Humboldt County Recorder.

(D) No lien preference . Nothing in this chapter shall give the city a preference over any recorded lien which attached prior to the date when the amounts required to be paid became a lien.

(E) Remedies not exclusive . The remedies and penalties provided for in this chapter shall be cumulative and not exclusive, and shall not supersede or limit any and all other remedies that may be available.

('63 Code, § 8-5.13) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83; Am. Ord. 766-C.S., passed 3-1-11)

No legal or equitable process shall be issued in any proceeding in any court against the city or any officer to prevent or enjoin the collection of any tax sought to be collected pursuant to this chapter, and payment of all tax, interest and penalties shall be required as a condition precedent to seeking judicial review of any tax liability.

(Ord. 766-C.S., passed 3-1-11)

Any operator or other person who fails or refuses to register as required, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Director of Finance, or who renders a false or fraudulent return or claim shall be guilty of a misdemeanor. Any person required to make, render, sign, or verity any report or claim and who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by the provisions of this subchapter to be made shall be guilty of a misdemeanor.

('63 Code, § 8-5.14) (Ord. 30-C.S., passed 1-30-65; tax operative, passed 3-1-65; Am. Ord. 382-C.S., passed 5-17-83; Am. Ord. 766-C.S., passed 3-1-11) Penalty, see § 35.999

REAL PROPERTY TRANSFER TAX

This subchapter shall be known as the “Real Property Transfer Tax of the City of Eureka.” It is adopted pursuant to the authority contained in Cal. Rev. & Tax. Code Part 6.7 (commencing with § 11901) of Division 2. ('63 Code, § 8-6.01) (Ord. 98-C.S., passed 1-1-68)

(A) Tax imposed. There is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the city shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds $100 a tax at the rate of $0.275 for each $500 or fractional part thereof.

('63 Code, § 8-6.02)

(B) Obligation of tax. Any tax imposed pursuant to the provisions of division (A) of this section shall be paid by any person

who makes, signs, or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed, or issued.

('63 Code, § 8-6.03)

(Ord. 98-C.S., passed 1-1-68)

The exemptions contained in Cal. Rev. & Tax Code §§ 11921 through 11929 are hereby adopted by reference and shall apply as if set forth in full in this code.

The County Recorder shall administer the provisions of this subchapter in conformity with the provisions of Cal. Rev. & Tax. Code Part 6.7 of Division 2 and the provisions of any county ordinance adopted pursuant thereto. ('63 Code, § 8-6.09) (Ord. 98-C.S., passed 1-1-68)

Claims for the refund of taxes imposed pursuant to the provisions of this subchapter shall be governed by the provisions of Cal. Rev. & Tax. Code, Chapter 5 (commencing with § 5096) of Part 9 of Division 1.

('63 Code, § 8-6.10) (Ord. 98-C.S., passed 1-1-68)

BUSINESS IMPROVEMENT DISTRICT

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

ADDITIONAL CHARGES or ASSESSMENTS. The rate of increase or additional charge based upon the business license tax and established pursuant to the provisions of this chapter and of the Parking and Business Improvement Area Law of 1979. BUSINESS IMPROVEMENT DISTRICT. An area in the city which has been designated a Business Improvement District pursuant to the procedure set forth in this subchapter and in the Parking and Business Improvement Area Law of 1979. BUSINESS. All types of businesses, including professions.

MODIFIED BUSINESS LICENSE FEE. The tax or levy ordinarily required by the city for the operation of a business pursuant to Chapter 110 of the Eureka Municipal Code modified as follows:

Regular business license fee: $10 - ($2 x number of employees).

('63 Code, § 8-7.01) (Ord. 385-C.S., passed 7-21-83; Am. Ord. 534-C.S., passed 12-21-91)

The purpose and intent of this subchapter is to impose an additional charge or assessment upon those businesses in a Business Improvement District which is in addition to the regular business license tax of the city, and to use the proceeds from the additional charges or assessments for the betterment of business activity within the Business Improvement District. Such activities are:

• (A) The acquisition, construction, or maintenance of parking facilities for the benefit of the district.

• (B) Decoration of any public place in the district.

• (C) Promotion of public events which are to take place on or in public places in the district.

• (D) Furnishing of music in any public place in the district.

• (E) The general promotion of business activities in the district.

• ('63 Code, § 8-7.02) (Ord. 385-C.S., passed 7-21-83)

The City Council will have sole discretion to expend the revenues derived from the additional charges or assessments within the scope of the purpose of this chapter; however, it is the intent of the city to contract with the Eureka Business Improvement District Association for the implementation on behalf of the city of the Business Improvement District, consistent with this subchapter. ('63 Code, § 8-7.03) (Ord. 385-C.S., passed 7-21-83)

The Council may establish a Business Improvement District by the following procedure:

(A) Adoption of a resolution of intention to establish a Business Improvement District which shall contain the following information:

• (1) A description of the proposed boundaries of such district.

(2) The time and place when a hearing shall be held by the Council to determine whether or not to adopt an ordinance to establish such district.

(3) The uses to which the additional revenue derived from the additional charges or assessment for a business license will be put which shall be the same as those provided for by this chapter.

(4) A statement that the establishment of a Business Improvement District shall cause an additional charge or assessment for business licenses for those businesses conducting their activities in such district, and that such increase shall be in accordance with the schedule provided by this subchapter, which schedule shall be set forth in the resolution.

(5) A statement that any interested person may file a written protest prior to the hearing and may also appear at the hearing and present evidence.

(B) Notice of hearing provided for by the resolution of intention shall be published and mailed in accordance with § 35.114 of this subchapter. Such notice shall consist of a complete copy of the resolution of intention to establish a Business Improvement District.

(C) The hearing specified in the resolution of intention shall be held prior to the adoption of an ordinance establishing a Business Improvement District. Such hearing shall be held in accordance with § 35.114 of this subchapter.

(D) If it is determined by the Council after the hearing that such a district should be established, the Council shall approve such

a district by adopting an ordinance establishing the district. This ordinance shall contain the following information:

• (1) The number, date, and title of the resolution of intention pursuant to which it was adopted.

• (2) The time and place the hearing was held concerning the formation of such district.

• (3) The description of the boundaries of such district.

• (4) A statement that the businesses in the district established by the ordinance shall be subject to the provisions of the additional charges or assessments provided by this chapter.

(5) A statement that a Business Improvement District has been established pursuant to the provisions of this chapter. The Council may, however, modify the boundaries of the district as described in the resolution of intention based upon the evidence presented, provided the Council proposes such change and continues the hearing until a later time and notice of the proposed change and the time and a place of the continued hearing is given in accordance with § 35.114 of this subchapter. ('63 Code, § 8-7.04) (Ord. 385-C.S., passed 7-21-83)

• (A) Whenever this subchapter provides for a hearing and a notice, the city shall give notice as follows:

• (1) One publication in a newspaper published and circulated in the city; and,

(2) Mailing of such notices, postage prepaid, in a sealed envelope, by the United States mail, addressed to all businesses which conduct activities within any proposed or established Business Improvement District as shown upon the active business licenses on file with the Director of Finance.

(B) Both publication and mailing of notices shall be completed at least ten days prior to the holding of any hearing required by this subchapter, and such notices shall contain the designation of the time and place of the hearing and a statement describing the subject matter of such hearing.

• (C) Personal service may be substituted for mailed notice.

(D) Whenever a hearing is held under this subchapter, the Council shall hear all protests and receive evidence for or against the proposed action; the Council shall also rule upon all protests which determination shall be final; and the Council may continue the hearing from time to time.

• ('63 Code, § 8-7.05) (Ord. 385-C.S., passed 7-21-83)

(A) A Business Improvement District and benefit areas are established in the city within the boundaries as shown in the Appendix of this chapter and legally described in the Appendix of this chapter.

(B) The City Council finds that businesses lying within the Business and Improvement District herein established will be benefitted by the expenditure of the funds to be raised by the assessments or charges that will be levied and that are now proposed to be levied.

(C) Businesses in the district established by this ordinance shall be and remain subject to any amendments to Cal. Sts. & High. Code, Part 6 (commencing with § 36500).

('63 Code, § 8-7.06) (Ord. 385-C.S., passed 7-21-83)

(A) The City Council may, for each of the purposes set out in § 35.111 of this subchapter, establish and modify one or more separate benefit areas based upon the degree of benefit derived from the purpose, and may impose a different rate of charges or assessment within each such benefit area.

(B) All provisions of this subchapter applicable to the establishment or disestablishment of the district also apply to the establishment, modification or disestablishment of benefit areas pursuant to this section. The establishment or the modification of any such area shall follow the same procedure as provided for the establishment of a Business Improvement District and the disestablishment shall follow the same procedure as provided for disestablishment. ('63 Code, § 8-7.07) (Ord. 385-C.S., passed 7-21-83)

(A) Rate of additional charges or assessments. Effective January 1, 1984, there will be imposed the following charge for a business license for all businesses conducting their activities in a Business Improvement District, which is in addition to the regular license tax imposed upon various businesses generally not in such Business Improvement District.

(1) All businesses in such district shall be subject to additional charges and assessments if they are subject to taxation by the city under Chapter 110 of this code.

(2) The charge imposed by this chapter as an additional charge or assessment for a business license shall be based upon the classification business and establishment of schedule of additional charges and assessments described as follows:

• (a) Business classification.

1. Retail. The following business types for the purpose of this chapter shall be considered retail and/or service retail business and if located in Areas I and II they shall be assessed at a rate of 1½ times or 150% as an additional charge to their modified business license fee as defined in this chapter.

Appliance sales

Antiques sales Bars and notions

Book stores Catalog merchandising Children's shops Clothing stores Computer sales Delicatessens

Department stores Dress shops Electrical appliance and fixture sales Floor covering sales Florists Food stores, food vending

Fur shops Furniture sales General appliances General merchandise Gift shops Grocery stores Gunsmith, gun sales Hardware stores Jewelry stores Medicines and drug stores Men's wear Musical instrument, supplies, sales Office supplies, equipment sales Paint, glass, wallpaper sales Photographer supplies, sales Pawn shops Restaurants Secondhand stores, dealers Shoe repair Shoe sales Soda fountain Souvenir shops Specialty shops Sporting goods Stationary store Tailors Theaters Tire dealers, sales Variety shops Wearing apparel

2. Any other business of similar nature not specifically identified herein as determined by the Director of Finance to be “retail” in nature.

(b) All other business in Areas I, II, and III including professional, who pay a business license fee consistent with Chapter 110 of this code, shall be considered non-retail business for the purposes of this subchapter and be assessed at the rate of ¾ times or 75% as an additional charge on the modified business license fee.

(c) All retail business located in Area I and Area II as delineated in the Appendix of this subchapter in addition to the assessment rate specified in division (A)(2) of this section shall be further assessed at the rate of ½ times or 50% of the modified business license fee to be used for special promotions as specified in the Bylaws of the Eureka Business Improvement District Association.

(3) The charge imposed by this subchapter as an additional charge or assessments for a business license shall be subject to the location of the business. Businesses located within benefit Area I and Area II shall be charged or assessed an additional amount based on the schedule as described in division (A)(2) of this section.

(4) If additional charges or assessments imposed under this subchapter become delinquent, penalties and interest charges shall be imposed therein in the same manner, in the same amount and at the same time as the delinquent business license taxes.

(5) Any business, or person or institution located within the Business Improvement District which is exempt from the payment of a business license tax pursuant to Chapter 110 of this code, is not taxed under this chapter but may make a contribution to the district for the purposes provided by this chapter.

('63 Code, § 8-7.08)

(B) Collection of additional charges and assessments.

(1) The collection of additional charges or assessments imposed by this subchapter shall be made at the same time and in the same manner as the regular business license tax pursuant to Chapter 110 of this code.

(2) The city shall segregate all revenue generated from this part in a separate fund of the city to be used solely for implementation of the Business Improvement District consistent with this subchapter.

('63 Code, § 8-7.09)

(Ord. 385-C.S., passed 7-21-83; Am. Ord. 534-C.S., passed 12-21-91)

Changes may be made in the rate of additional charges and assessments, only after a hearing is held and notice thereof is given in accordance with § 35.114 of this subchapter. Such notice shall contain the time and place where the hearing shall be held and a description of the proposed change in the rate of additional charges or assessments. Changes in the regular business license tax may be made without such a hearing.

('63 Code, § 8-7.10) (Ord. 385-C.S., passed 7-21-83)

Changes may be made in the boundaries of any Business Improvement District or area, by ordinance of the Council; however, no changes shall be made unless and until a hearing is held and notice thereof is given in accordance with § 35.114 of this subchapter. Such notice shall contain the time and place when the hearing shall be held and a description of the proposed change of the district or area boundary.

('63 Code, § 8-7.11) (Ord. 385-C.S., passed 7-21-83)

(A) District and area disestablishment. The City Council may disestablish the district or area or any part thereof, by ordinance after a hearing before the City Council. The City Council shall adopt a resolution of intention to disestablish the district or area at least 15 days prior to the hearing required by this section. The resolution shall give the time and place of the hearing, and notice shall be given thereof in manner and form as provided by § 35.114 of this subchapter. Upon disestablishment of the district or area,

or any part thereof, any proceeds of the tax, or assets acquired with such proceeds, shall be subject to disposition as the City Council shall determine; and the additional charge assessed on the business license for the purpose of this subchapter, shall no longer be assessed or collected by the city.

('63 Code, § 8-7.12)

(B) Petition to disestablish.

(1) The Council shall disestablish the district upon receipt of a written petition signed by 51% of the businesses within the district.

(2) For each business, the petition shall state the name and address of the business and the city business license number of the business. The petition may be signed by the owner of the business, an officer of a corporation, or on behalf of the owner by an agent authorized in writing by the owner to act as his agent.

(3) The City Clerk shall review and certify the adequacy of the petition to the Council. Only those businesses holding a current business license shall be recognized for the purpose of this section.

(4) The disestablishment hearing shall be called in the same manner specified in § 35.114 of this subchapter. ('63 Code, § 8-7.12)

(Ord. 385-C.S., passed 7-21-83)

TRANSACTIONS AND USE TAX

This subchapter shall be known as the Eureka Transactions and Use Tax Ordinance. The city of Eureka hereinafter shall be called “city.” This subchapter shall be applicable in the incorporated territory of the city.

(Ord. 734-C.S., passed 12-16-08)

OPERATIVE DATE means the first day of the first calendar quarter commencing more than 110 days after the adoption. The election was held November 4, 2008 and the operative date is April 1, 2009.

(Ord. 734-C.S., passed 12-16-08)

This subchapter 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 Cal. Rev. & Tax. Code Part 1.6 (commencing with § 7251) of Division 2 and Cal. Rev. & Tax. Code § 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this tax which shall be operative 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.

(B) To adopt a retail transactions and use tax 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 Cal. Rev. & Tax. Code Part 1.6 of Division 2.

(C) To adopt a retail transactions and use tax 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 Taxes.

(D) To adopt a retail transactions and use tax that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Cal. Rev. & Tax. Code Part 1.6 of Division 2, 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 subchapter.

(Ord. 734-C.S., passed 12-16-08)

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 transactions and use tax; 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 day of the first calendar quarter following the execution of such a contract. (Ord. 734-C.S., passed 12-16-08)

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 0.25% 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 this subchapter. The tax in addition the city's existing sales and use tax set forth in §§ 35.050 through 35.060.

(Ord. 734-C.S., passed 12-16-08)

For the purposes of this subchapter, 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 State Board of Equalization. (Ord. 734-C.S., passed 12-16-08)

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 this subchapter for storage, use or other consumption in said territory at the rate of 0.25% 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. 734-C.S., passed 12-16-08)

Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Cal. Rev. & Tax. Code Part 1.6 of Division 2, all of the provisions of Cal. Rev. & Tax. Code Part 1 (commencing with § 6001) of Division 2 are hereby adopted and made a part of this subchapter as though fully set forth herein. (Ord. 734-C.S., passed 12-16-08)

In adopting the provisions of Cal. Rev. & Tax. Code Part 1 of Division 2:

(A) Wherever the State of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. 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 that 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 this subchapter.

(3) 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:

(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 Cal. Rev. & Tax. Code Part 1 of Division 2, 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 Cal. Rev. & Tax. Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828. (B) The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section Cal. Rev. & Tax. Code § 6203 and in the definition of that phrase in Cal. Rev. & Tax. Code § 6203. (Ord. 734-C.S., passed 12-16-08)

If a seller's permit has been issued to a retailer under Cal. Rev. & Tax. Code §6067, an additional transactor's permit shall not be required by this subchapter.

(Ord. 734-C.S., passed 12-16-08)

(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 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 or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this division, delivery to a point outside the city shall be satisfied:

(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Cal. Veh. Code Chapter 1 (commencing with § 4000) of Division 3, aircraft licensed in compliance with Cal. Pub. Util. code § 21411, and undocumented vessels registered under Cal. Veh. Code Division 3.5 (commencing with § 9840) 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.

(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 this subchapter.

(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 this subchapter.

(5) For the purposes of division (B)(3) and (B)(4) 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.

(C) There are exempted from the use tax imposed by this subchapter, 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.

(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 Cal. Rev. & Tax. Code §§ 6366 and 6366.1.

(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 subchapter.

(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 subchapter.

(5) For the purposes of divisions (C)(3) and (C)(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 division (B)(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 Cal. Veh. Code Chapter 1 (commencing with § 4000) of Division 3, aircraft licensed in compliance with Cal. Pub. Util. Code § 21411, or undocumented vessels registered under cal. veh. code Division 3.5 (commencing with § 9840). 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 subchapter 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 Cal. Rev. & Tax. Code Part 1.6 of Division 2 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. 734-C.S., passed 12-16-08)

All amendments subsequent to the effective date of this subchapter to Cal. Rev. & Tax. Code Part 1 of Division 2 relating to sales and use taxes and which are not inconsistent with Cal. Rev. & Tax. Code Part 1.6 and Part 1.7 of Division 2, and all amendments to Cal. Rev. & Tax. Code Part 1.6 and Part 1.7 of Division 2, shall automatically become a part of this subchapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this subchapter. (Ord. 734-C.S., passed 12-16-08)

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 subchapter, or Cal. Rev. & Tax. Code Part 1.6 of Division 2, of any tax or any amount of tax required to be collected. (Ord. 734-C.S., passed 12-16-08)

If any provision of this subchapter or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 734-C.S., passed 12-16-08)

SUPPLEMENTAL TRANSACTIONS AND USE TAX

This subchapter shall be known as the "Supplemental Transactions and Use Tax". The City of Eureka hereinafter shall be called "city." This subchapter will be applicable in the incorporated territory of the city. This subchapter shall complement, and not replace or supersede, the city's existing Transactions and Use Tax, as described in Chapter 35, §§ 35.160 through 35.173 of the Eureka Municipal Code. This subchapter replaces "Measure Q," a prior Supplemental Transactions and Use Tax that was approved by public referendum on November 4, 2014, and which expired on June 30, 2021. (Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

For the purpose of this subchapter the following words terms shall have the meaning given in this section: IN THE CITY. Includes all territory within the city limits.

OPERATIVE DATE. The first day of the first calendar quarter commencing more than 110 days after the adoption. Since the measure was approved at the November 3, 2020 election, the operative date shall be July 1, 2021.

TERMINATION DATE. The date this subchapter is repealed by voters.

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

This subchapter 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 § 7251) of Division 2 of the Cal. Revenue and Taxation Code and § 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this tax ordinance which shall be operative 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.

(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 Cal. Revenue and Taxation Code.

(C) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and collecting the California state sales and use taxes.

(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 Cal. 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 subchapter.

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

Prior to the operative date, the city shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the city shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

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 1.25% 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 this subchapter. The tax in addition the city's existing sales and use tax set forth in §§ 35.050 through 35.060 of the Eureka Municipal Code.

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

For the purposes of this subchapter, 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 California Department of Tax and Fee Administration.

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

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 this subchapter for storage, use or other consumption in said territory at the rate of 1.25% 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. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Cal. Revenue and Taxation Code, all of the provisions of Part 1 (commencing with § 6001) of Division 2 of the Cal. Revenue and Taxation Code are hereby adopted and made a part of this subchapter as though fully set forth herein. (Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

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

(A) Wherever the State of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. 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 Treasury, or the Constitution of the State of California;

(2) The result of that 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 California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this subchapter;

(3) 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:

(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 Cal. 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; or

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

(B) (1) The word "city" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in § 6203 and in the definition of that phrase in § 6203.

(2) "A retailer engaged in business in the district" shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the state by the retailer and all persons related to the retailer that exceed $500,000. For purposes of this section, a person is related to another person if both persons are related to each other pursuant to § 267(b) of Title 26 of the United States Code and the regulations thereunder. (Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

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

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

(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 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 or her 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 § 4000) of Division 3 of the Cal. Vehicle Code, aircraft licensed in compliance with § 21411 of the Cal. Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Cal. 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.

(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 this subchapter.

(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 this subchapter.

(5) For the purposes of subsections (B)(3) and (4) 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.

(C) There are exempted from the use tax imposed by this subchapter, 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 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 §§ 6366 and 6366.1 of the Cal. Revenue and Taxation Code.

(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 subchapter.

(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 subchapter.

(5) For the purposes of subsections (C)(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 (C)(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 § 4000) of Division 3 of the Cal. Vehicle Code, aircraft licensed in compliance with § 21411 of the Cal. Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Cal. 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 subchapter 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 Cal. 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. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

All amendments subsequent to the effective date of this subchapter to Part 1 of Division 2 of the Cal. 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 Cal. Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Cal. Revenue and Taxation Code, shall automatically become a part of this subchapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this subchapter.

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

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 subchapter, or Part 1.6 of Division 2 of the Cal. Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

If any provision of this subchapter or the application thereof to any person or circumstance is held invalid, the remainder of the subchapter and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

This subchapter relates to the levying and collecting of the city transactions and use taxes and shall take effect immediately. (Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

The authority to levy the tax imposed by this subchapter shall expire when rescinded by voters. (Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

Consistent with Eureka's value to be transparent, a Citizen's Oversight Committee has been established to conduct annual audits of all expenditures of revenues generated by the tax to ensure fiscal accountability and public participation. The Oversight Committee may be the city's existing Finance Advisory Committee.

(Ord. 808-C.S., passed 12-16-14; Am. Ord. 912-C.S., passed 12-15-20)

(A) Any person violating any of the provisions of this chapter for which no other specific penalty is provided shall be subject to the penalty of § 10.99 of this code of ordinances.

(B) Any person violating any of the provisions of §§ 35.050 through 35.060 of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $1,000 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment. ('63 Code, § 8-4.15) (Ord. 397-C.S., passed 12-20-83)

APPENDIX: EUREKA BUSINESS IMPROVEMENT DISTRICT

Proposed Boundary Description Eureka Business Improvement District

AREA I

BEGINNING at the intersection of the centerline of First Street and the centerline of “E” Street;

1. Thence easterly along the centerline of First Street to the centerline of “G” Street;

2. Thence southerly along the centerline of “G” Street to the centerline of the alley between First and Second Streets;

3. Thence easterly along the centerline of the alley between First and Second Streets to the centerline of “H” Street;

4. Thence southerly along the centerline of “H” Street to the centerline of the alley between Second and Third Streets;

5. Thence westerly along the centerline of the alley between Second and Third Streets to the centerline of “G” Street;

6. Thence southerly along the centerline of “G” Street to the centerline of the alley between Third and Fourth Streets;

7. Thence westerly along the centerline of the alley between Third and Fourth Streets to the centerline of “E” Street;

8. Thence northerly along the centerline of “E” Street to the centerline of the alley between Second and Third Streets;

9. Thence westerly along the centerline of the alley between Second and Third Streets to a point 180 feet westerly of the westerly line of “C” Street, said point being at the westerly terminus of said alley;

10. Thence northerly, parallel with “C” Street to the centerline of the alley between First and Second Streets;

11. Thence easterly along the centerline of the alley between First and Second Streets to the centerline of “E” Street;

12. Thence northerly along the centerline of “E” Street to the point of beginning.

AREA II

• BEGINNING at the intersection of the centerline of “E” Street and the centerline of the alley between Third and Fourth Streets;

1. Thence easterly along the centerline of the alley between Third and Fourth Streets to the centerline of “G” Street;

2. Thence southerly along the centerline of “G” Street to the centerline of the alley between Fourth and Fifth Streets;

3. Thence easterly alone the centerline of the alley between Fourth and Fifth Streets to the centerline of “H” Streets;

4. Thence southerly along the centerline of “H” Streets to a point 120 feet southerly of the southerly line of Fifth Street;

5. Thence westerly, parallel with Fifth Street, to the centerline of “G” Street;

6. Thence southerly along the centerline of “G” Street to the centerline of Sixth Street;

7. Thence westerly along the centerline of Sixth Street to the centerline of “E” Street;

8. Thence northerly along the centerline of “E” Street to the centerline of the alley between Fifth and Sixth Streets;

9. Thence westerly along the centerline of the alley between Fifth and Sixth Streets to the centerline of “D” Street;

10. Thence northerly along the centerline of “D” Street to the centerline of the alley between Fourth and Fifth Streets;

11. Thence easterly along the centerline of the alley between Fourth and Fifth Streets to the centerline of “E” Street;

12. Thence northerly along the centerline of “E” Street to the point of beginning.

AREA III

The following described area excluding Areas I and II described above:

BEGINNING at the intersection of the centerline of “C” Street and the centerline of Eighth Street;

1. Thence northerly along the centerline of “C” Street to the centerline of Seventh Street;

2. Thence westerly along the centerline of Seventh Street to the centerline of “A” Street;

3. Thence northerly along the centerline of “A” Street to the centerline of the alley between Fourth and Fifth Streets;

4. Thence easterly along the centerline of the alley between Fourth and Fifth Streets to the centerline of “B” Street;

5. Thence northerly along the centerline of “B” Street to the centerline of Third Street;

6. Thence westerly 30 feet along the centerline of Third Street;

7. Thence northerly 160 feet parallel with “C” Street;

8. Thence westerly 60 feet parallel with Third Street;

9. Thence northerly, parallel with “C” Street, to the centerline of Second Street;

10. Thence easterly 180 feet along the centerline of Second Street;

11. Thence northerly, parallel with “C” Street, 589 feet more or less to the U.S. Bulkhead Line of Humboldt Bay;

12. Thence easterly along the U.S. Bulkhead Line to the northerly prolongation of the centerline of “I” Street;

13. Thence southerly along the centerline of “I” Street to the centerline of Seventh Street;

14. Thence westerly along the centerline of Seventh Street to the centerline of “H” Street;

15. Thence southerly along the centerline of “H” Street to the centerline of Eighth Street;

16. Thence westerly along the centerline of Eighth Street to the point of beginning.

• ('63 Code, Title 8, Exhibits A, B)