Inyo County Municipal Code Ch. 3.32 Transactions and Use Tax

Note: Editor's Note: Ordinance 830, "The transactions and use tax ordinance," has been approved by the voters of the county of Inyo.

This chapter shall be known and may be cited as "the Inyo County transactions and use tax ordinance." The board of supervisors of the county of Inyo declares that the county of Inyo including all incorporated and unincorporated territory within the county, is a district pursuant to Revenue and Taxation Code Section 7252.9. As used in this chapter, "district" includes all of the incorporated and unincorporated territory within the county of Inyo. This chapter applies throughout the district.

(Ord. 830 § 1, 1988)

Subject to the provisions of subsection B of Section 3.32.040, "operative date" means the first date of the first calendar quarter commencing more than one hundred twenty days after adoption of this chapter, the date of adoption being March 8, 1988.

(Ord. 830 § 2, 1988)

This chapter is adopted to achieve the following, among other, purposes, and this chapter shall be interpreted liberally to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with Part 1.6 (commencing with Section 7251) and Chapter 2 (commencing with Section 7285) of Part 1.7 of Division 2 of the Revenue and Taxation Code, which authorizes Inyo County to levy this tax if a majority of the electors voting on the measure approve the imposition of the tax at an election;

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law (Part 1 of Division 2 of the Revenue and Taxation Code) and that are not inconsistent with the requirements and limitations of the Transactions and Use Tax Law (Part 1.6 of Division 2 of the Revenue and Taxation Code);

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure there-for 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, 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 ordinance that can be administered in a manner that will, to the greatest degree possible and consistent with the provisions of the Transactions and Use Tax Law, minimize both the cost of collecting the transactions and use taxes and the burden of record-keeping upon persons subject to taxation under this chapter.

(Ord. 830 § 3, 1988)

Inyo County shall contract with the State Board of Equalization as follows:

A. At least one hundred twenty days prior to the operative date, Inyo County shall contract with the State Board of Equalization to prepare to perform all functions incident to the administration and operation of this chapter.

B. After the adoption of this chapter and prior to the operative date, Inyo County shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this chapter. However, if Inyo County does not contract 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. 830 § 4, 1988)

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

(Ord. 830 § 5, 1988)

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer, unless the taxable property sold is delivered by the retailer or his agent to any out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from all sales taxable under this chapter shall include delivery charges, regardless of the place to which delivery is made. If a retailer has no permanent place of business, the place or places at which the retail sales are consummated shall be determined under applicable rules and regulations of the State Board of Equalization.

(Ord. 830 § 6, 1988)

An excise tax is imposed on the storage, use or other consumption in the district of tangible personal property purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in the district at the rate of one-half of one percent of the sales price of the property. The sales prices shall include delivery charges of property subject to this tax, regardless of the place to which delivery is made.

(Ord. 830 § 7, 1988)

Except as otherwise provided in this chapter and to the extent consistent with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are incorporated into and made a part of this chapter as though fully set forth herein.

(Ord. 830 § 8, 1988)

In incorporating the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code:

A. Wherever the state of California is named or referred to as the taxing agency, the name of Inyo County 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 the district or any agency, officer or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter;

3. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state of California, when 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 Part 1 of Division 2 of the Revenue and Taxation Code; or

b. Impose this tax on sales, storage, use or other consumption of tangible property not otherwise subject to tax by the state under Part 1 of Division 2 of the Revenue and Taxation Code; or

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

B. The word "district" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 of the Revenue and Taxation Code and in the definition of that phrase in that section.

(Ord. 830 § 9, 1988)

If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit is not required by this chapter. However, nothing in this chapter shall be deemed or construed to waive, or exempt any person from, any other provision of law requiring a permit for the sale, storage, use or other consumption of tangible personal property.

(Ord. 830 § 10, 1988)

Excluded from the measure of the transactions tax and the use tax is 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 (Part 1.5 [commencing with Section 7200] of the Revenue and Taxation Code), or other amount of any other state-administered transactions or use tax.

A. Exemptions from Transactions Tax. Exempted from the transactions tax are the gross receipts from:

1. Sales of tangible personal property 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 district and shipped to a point outside the district, pursuant to the contract of sale, by delivery to such point by the retailer or the retailer's agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purpose of this subsection, delivery to a point out side the district shall be satisfied:

a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 (commencing with Section 9850) of Division 3.5 of the Vehicle Code, by registration to an out-of-district address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his principal place of residence, and

b. With respect to commercial vehicles, by registration to a place of business out-of-district and a 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 obliged to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter;

4. A lease of tangible personal property that is a continuing sale of such property, for any period of time when the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter;

5. For the purposes of subsections C and D of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease had the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

B. Exemption from Use Tax—Credits.

1. There is exempted from the use tax imposed by this chapter the storage, use or other consumption in this district of tangible personal property:

a. The gross receipts from the sale of which have been subject to a transactions tax under any stateadministered transactions and use tax ordinance,

b. Purchased by operator of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States or any foreign government. This exemption is in addition to the exemptions provided in Sections 6266 and 6366.1 of the Revenue and Taxation Code,

c. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter,

d. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter,

e. For the purposes of subdivisions 3 and 4 of this subsection, 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, regardless of whether that right is exercised;

2. A retailer engaged in business in the district shall not be required to collect use tax from the purchaser of tangible personal property unless:

a. The retailer ships or delivers the property into the district or participates within the district 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 district or through any representative, agent, canvasser, solicitor, subsidiary or person in the district under the authority of the retailer, or

b. The property is a vehicle, aircraft or vessel described in subparagraph (B) of paragraph (2) of subdivision (a) of Section 7262 of the Revenue and Taxation Code;

3. "A retailer engaged in business in the district" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licenses in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9850) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel or aircraft at an address in the district;

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

(Ord. 830 § 11, 1988)

All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.

(Ord. 830 § 12, 1988)

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 county of Inyo, or against any officer of the state or the county of Inyo, to prevent or enjoin the collection under this chapter or Part 1.6 of Division 2 of the Revenue and Taxation Code, or any tax or any amount of tax required to be collected.

(Ord. 830 § 13, 1988)