La Palma Municipal Code Art. III Sales and Use Taxes

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Editor's note— Ordinance No. 73-12, from which this article was derived, was adopted on October 1, 1973. For purposes of this article, that date is considered the ordinance's operative date.

State Law reference— Sales and Use Tax Law, Revenue and Taxation Code § 6001 et seq.; Bradley-Burns Uniform Local Sales and Use Tax Law, Revenue and Taxation Code § 7200 et seq.

(a) Except as otherwise provided in this article and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.), all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 6001 et seq.) are hereby adopted and made a part of this article as though fully set forth herein.

(b) In adopting the provisions of Revenue and Taxation Code § 6001 et seq., wherever the State of California is named or referred to as the taxing agency, the name of the 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 article; 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 not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 6001 et seq.) 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 provisions of that Code; the substitution shall not be made in Sections 6701, 6702 (except in the last sentence thereof) (Revenue and Taxation Code §§ 6701, 6702), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code (Revenue and Taxation Code §§ 6711, 6715, 6737, 6797, 6828); and the substitution shall not be made for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 or in the definition of that phrase in Section 6203 (Revenue and Taxation Code § 6203).

(c) All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) shall automatically become a part of this article.

(Code 1975, § 8-6; Ord. No. 73-12, §§ 9, 10, 15)

The rate of sales and use tax imposed by this article shall be one percent.

(Code 1975, § 8-7; Ord. No. 73-12, § 2)

The City Council hereby declares that this article is adopted to achieve the following, among other, purposes and directs that the provisions of this article be interpreted in order to accomplish those purposes:

(1) To adopt sales and use tax regulations which comply with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.);

(2) To adopt sales and use tax regulations which incorporate 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 Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.);

(3) To adopt sales and use tax regulations which impose a tax and provide 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 State sales and use taxes;

(4) To adopt sales and use tax regulations which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.), minimize the cost of collecting City sales and use taxes and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this article.

(Code 1975, § 8-8; Ord. No. 73-12, § 4)

Prior to the operative date of this article, this City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this article; provided, that if this City shall not have contracted with the State Board of Equalization prior to such 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 article.

(Code 1975, § 8-9; Ord. No. 73-12, § 5)

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 section 14-50 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 of this article.

(Code 1975, § 8-10; Ord. No. 73-12, § 6)

For the purposes of this article, 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.

(Code 1975, § 8-11; Ord. No. 73-12, § 7)

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 of this article for storage, use or other consumption in this City at the rate stated in section 14-50 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.

(Code 1975, § 8-12; Ord. No. 73-12, § 8)

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

(Code 1975, § 8-13; Ord. No. 73-12, § 11)

(a) There shall be excluded from the measure of tax:

(1) The amount of any sales or use tax imposed by the State upon a retailer or consumer.

(2) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) by any City and County, County or City in this State.

(3) The gross receipts from sales to, and the storage, use or other consumption of property purchased by, operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside this City.

(4) The storage or use of tangible personal property in the transportation or transmission of persons, property or communications or in the generation, transmission or distribution of electricity or in the manufacture, transmission or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the State Public Utilities Commission.

(b) The following provisions shall apply to exclusions and exemptions:

(1) The amount subject to tax shall not include any sales or use tax imposed by the State upon a retailer or consumer.

(2) 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 Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) by any City and County, County or City in this State shall be exempt from the tax due under this article.

(3) 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 waterborne-vessels to be used or consumed principally outside the City in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(4) The storage, use or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property of such vessels for commercial purposes is exempted from the use tax.

(5) 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.

(6) In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code (Revenue and Taxation Code §§ 6366, 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.

(c) The following regulations shall apply to the application of the provisions of subsections (a) and (b) of this section:

(1) Subsection (b) of this section shall become operative on January 1 of the year following the year in which the State Board of Equalization adopts an assessment ratio for State assessed property which is identical to the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code (Revenue and Taxation Code § 401), at which time subsection (a) of this section shall become inoperative.

(2) In the event that subsection (b) of this section becomes operative and the State board of equalization subsequently adopts an assessment ratio for the State assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code (Revenue and Taxation Code § 401), subsection (a) of this section shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time subsection (b) of this section shall be inoperative until the first day of the month following the month in which the board again adopts an assessment ratio for State assessed property which is identical to the ratio required for local assessments by Section 401 of the Revenue and Taxation Code (Revenue and Taxation Code § 401), at which time subsection (b) of this section shall again become operative and subsection (a) of this section shall become inoperative.

(d) This subsection shall be operative on the operative date of any act of the Legislature of the State which amends Section 7202 of the Revenue and Taxation Code (Revenue and Taxation Code § 7202) or which repeals and reenacts Section 7202 of the Revenue and Taxation Code (Revenue and Taxation Code § 7202) to provide an exemption from City sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in Subdivisions (i)(7) and (i)(8) of Section 7202 as those subdivisions read on October 1, 1983.

(Code 1975, § 8-14; Ord. No. 73-12, §§ 12—14; Ord. No. 83-12, §§ 1, 2, 4)

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 article, or Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.), of any tax or any amount of tax required to be collected.

(Code 1975, § 8-15; Ord. No. 73-12, § 16)