Fresno Municipal Code Art. 3 Sales Tax

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the city. The tax imposed by the provisions of this article is in addition to any and all other taxes imposed by any other provisions of this Code. For the purpose of the proper administration of this article and to prevent evasion of the sales tax, it shall be presumed that all gross receipts are subject to the tax until the contrary is established by the seller.

The tax hereby levied, except as otherwise herein provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the "Sales and Use Tax Law", as amended and in force and effect on September 9, 1953.

(a) All of the provisions of the "Sales and Use Tax Law", as amended and in force and effect on September 9, 1953, except the provisions thereof pertaining solely to the "Use Tax" and except Sections 6006, 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6451, 6459, 6591, 7052, 7056, 7057, 7101, 7102, 7151, 7152 and 7153 of the Revenue and Taxation Code, applicable to sales of property at retail, are hereby adopted and made a part of this article as though fully set forth herein, and all provisions of any other articles in conflict therewith are inapplicable to this article and the tax hereby imposed; provided, however, the term "gross receipts", as used herein, does not include the amount of any tax imposed by the State of California upon or with respect to retail sales whether imposed upon the retailer or upon the consumer.

(b) All of the provisions of the "Sales and Use Tax Law" hereby adopted, providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization, shall be performed by the Council. All other provisions of the "Sales and Use Tax Law" hereby adopted, providing for the performance of official action on the part of the State Board of Equalization, shall be performed by the Controller.

(c) The City of Fresno shall be deemed substituted for the State of California whenever the State is referred to in said "Sales and Use Tax Law".

(d) The City Attorney shall be deemed substituted for the Attorney General whenever the Attorney General is referred to in said "Sales and Use Tax Law".

(e) The Controller shall be deemed substituted for the State Controller and State Board of Control whenever the State Controller or Board of Control are referred to in said "Sales and Use Tax Law".

(f) The County of Fresno shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in said "Sales and Use Tax Law". (Orig. Ord. 4310; Am. Ord. 5308, 1958; Am. Ord. 5311, 1958).

The word "sale" means and includes:

(1) Any transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise in any manner or by any means whatsoever, of tangible personal property for a consideration. "Transfer of possession", "lease", or "rental" includes only transactions found by the Controller to be in lieu of a transfer of title, exchange or barter.

(2) Any withdrawal of tangible personal property from a point within the city, except a withdrawal pursuant to a transaction in foreign or interstate commerce which is immune from local taxation by reason of the provisions of the United States Constitution, for delivery to any place within or without the city, for the purpose of the transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of the property for a consideration.

(3) The producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting.

(4) The furnishing and distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others.

(5) The furnishing, preparing, or serving for a consideration of food, meals or drinks.

(6) A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price.

(7) A transfer of the title or possession of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication. (Orig. Ord. 3773; Am. Ord. 5308, 1958).

(a) No tax shall be due hereunder if a sales tax imposed by any other city of the State of California has been paid on the same transaction.

(b) The city sales tax shall not apply to sales of meals, food and drinks sold or served on common carriers operating into, through or out of the city from or to points outside the city.

(c) The city sales tax shall not apply to sales of tangible personal property sold to purchasers for use in a county subject to a state administered local use tax, provided the retailer holds in his possession one of the following documents:

(i) A copy of an invoice signed by the purchaser stating that such property is for use in a county subject to a state administered local use tax, or

(ii) A copy of a freight bill or bill of lading showing shipment of such property by a common carrier or delivery service into a county subject to a state administered local use tax.

(1) The amount of such exemption shall be included in line No. 6 of the city sales and use tax return and shall also be shown in the schedule on the reverse side of said return.

(Orig. Ord. 3834; Am. Ord. 5278, 1958; Rep. and Added Ord. 5176, 1957).

(a) The rules and regulations of the State Board of Equalization as amended and in force and effect September 9, 1953, pertaining to the interpretation, administration and enforcement of the "Sales and Use Tax Law", insofar as applicable, shall apply in the interpretation of this article until specifically abandoned by the rules or regulations adopted by the Council pursuant to this article.

(b) The inclusion of any clause, portion or part of the "State Sales and Use Tax Law", Part 1, Division 2, of the Revenue and Taxation Code of the State of California verbatim in this article shall not in or of itself be deemed to exclude any of the remaining provisions of said "Sales and Use Tax Law" that are made a part hereof by reference only.

(Orig. Ord. 4310; Am. Ord. 5311, 1958).

Every person desiring to engage in or conduct business as a seller within the city shall file with the Controller an application for a permit for each place of business. Every application for a permit shall be made upon a form prescribed by the Controller and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and such other information as the Controller may require. The application shall be signed by the owner, if a natural person; in the case of an association, or partnership by a member or partner; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of his authority. (Orig. Ord. 3373; Am. Ord. 5308, 1958).

After compliance with Section 7-307 by the applicant, the Controller shall grant and issue to each applicant a separate permit for each place of business. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein; provided, however, a change of location may be endorsed upon the permit by the Controller. The permit shall at all times be conspicuously displayed at the place for which issued. No fee shall be charged for the issuance of, or the endorsement of a change of location of a permit. (Orig. Ord. 3373; Am. Ord. 5308, 1958).

Whenever any person fails to comply with any provisions of this article or any rule or regulation adopted pursuant hereto, the Council, upon hearing, after giving the person ten days' notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The notice may be served personally or by mail in the manner prescribed for the service of notice of a deficiency determination under the "Sales and Use Tax Law". The Controller shall not issue a new permit after the revocation of a permit unless the Council is satisfied that the former holder of a permit will comply with the provisions of this article and the rules and regulations adopted pursuant hereto and directs the Controller to issue such permit. (Orig. Ord. 3373; Am. Ord. 5308, 1958; Am. Ord. 5311, 1958).

A seller whose permit has been previously suspended or revoked shall pay the Controller a fee of one dollar ($1) for the renewal or issuance of a permit. (Orig. Ord. 3373; Am. Ord. 5308, 1958).

No person shall engage in business as a seller in the city without a permit or permits or after a permit has been suspended or revoked and before the renewal or issuance of a permit. (Orig. Ord. 3373).

(a) The taxes imposed by this article are due and payable to the Controller quarterly on or before the last day of the month next succeeding each quarterly period, said quarterly periods being from January 1 to March 31; April 1 to June 30; July 1 to September 30; and October 1 to December 31 of each year.

(b) The Controller for good cause may extend for not more than thirty days the time for making any return or paying any sum required to be paid hereunder. The extension may be granted at any time, provided a written request therefor is filed with the Controller prior to the delinquency date.

(c) Whenever any tax required to be paid by this article, except amounts of audit determinations made on and after August 15, 1953, by the Controller, is not paid on or before the last day of the month next succeeding the period for which the tax is due, the same shall be deemed delinquent and a penalty of ten per cent of the amount of the tax due shall be imposed. An additional penalty of fifteen per cent of the original tax due shall be imposed, (making a total penalty of twenty-five per cent), if payment is not made on or before the last day of the second month next succeeding the period for which the tax is due. (Orig. Ord. 4312; Am. Ord. 5308, 1958).

The tax hereby imposed shall be collected by the retailer from the consumer insofar as it can be done. (Orig. Ord. 3373).

No retailer shall advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that, if added, it or any part thereof will be refunded. (Orig. Ord. 3373).

All taxes hereby levied shall be payable to the Controller and any civil suit for the collection thereof may be filed in any court of competent jurisdiction in the State of California, and the City Attorney shall prosecute the action. (Orig. Ord. 3373; Am. Ord. 5308, 1958).

The Controller may at his option accept a State of California Resale Certificate as evidence that any sale is not a sale at retail, or he may in his discretion require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to determine the nature of such sale. (Orig. Ord. 3373).

All moneys collected under and pursuant to the provisions of this article shall be deposited and paid into the general fund of the city. (Orig. Ord. 3373).

No officer or employee of the city having an administrative duty under this article shall make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. However, the Council may, by resolution, authorize examination of the returns by Federal or State officers or employees or by the tax officers of this or any other city if a reciprocal arrangement exists. Successors, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties. (Orig. Ord. 3373; Am. Ord. 5309, 1958).

No person required to make, render, sign or verify any report under the provisions of this article shall make any false or fraudulent return, with intent to defeat or evade the determination of an amount due and required to be paid hereunder. The penalties provided by this Code shall be in addition to the penalties and interest contained in Sections 6482, 6484, 6485, 6565 of the Revenue and Taxation Code of the State of California, which sections are incorporated by reference under Sections 4-302 and 4-303 of this Code. (Orig. Ord. 4310).

The Controller and his authorized representative or representatives are hereby authorized and empowered to make such inspections and audits of the books and records of any retailer which they may deem necessary in the administration of any of the provisions of this article, and the Controller is also hereby authorized and empowered to issue a subpoena requiring any retailer to produce for inspection, examination and audit any books and records required by the Controller, when such books and records are not available on request. (Orig. Ord. 3761; Am. Ord. 5308, 1958).

All sellers, consumers and holders of City of Fresno business licenses shall keep complete records of all business transactions, including sales, receipts, purchases and other expenditures, and shall retain all such records for examination by the Department of Finance of the City of Fresno. Such records shall be maintained for a period of at least three years. (Added Ord. 5081, 1957).