Chapter 8 — Use Tax [Added by Ord. 74; suspended by Ord. 85]

This Chapter shall be known as the "Use Tax Ordinance."

The following words and phrases, whenever used in this ordinance, shall be construed as defined in this section unless it appears from the context that a different meaning is intended.

• A. SALES PRICE — Means that total amount for which tangible personal property is sold, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:

  1. The cost of the property sold;

  2. The cost of materials used, labor or service cost, interest charged, losses, or any other expenses;

  3. The cost of transportation of the property prior to its purchase.

The total amount for which the property is sold includes all of the following:

1. Any services that are a part of the sale;

2. Any amount for which credit is given to the purchaser by the seller.

• "Sales price" does not include any of the following:

1. Cash discounts allowed and taken on sale;

2. The amount charged for property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property returned.

3. The amount charged for labor or services rendered in installing or applying the property sold.

4. The amount of any federal tax imposed upon or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge, and the amount of any California state sales or use tax. (The term "Gross Receipts" includes the amount of any manufacturer's or importer's excise tax included in the price of the property sold, even though the manufacturer or importer is also the retailer thereof, and whether or not the amount of such tax is stated as a separate charge.)

5. Transportation charges separately stated, if the transportation occurs after the purchase of the property is made.

• B. USE — Includes the exercise of any right or power over tangible personal property incident to the ownership of that property; subject, however, to the following exception:

• It does not include the sale of that property in the regular course of business.

  2. It does not include the storage, use or other consumption of tangible personal property, the gross receipts from the sale of or the cost of which has been subject to sales or use tax under a sales or use tax ordinance, whether enacted in accordance with, or purporting to be in accordance with, Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California by any other city and county, county other than Los Angeles County, or city in this state, or enacted in accordance with the organic law of any such city.

  3. It does not include 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 gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the State of California.

  4. It does not include the use or consumption of property purchased by operators of common carrier and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the City.

• C. STORAGE — As used in this article includes any keeping or retention in the City for any purpose except sale in the regular course of business or subsequent use solely outside this City of tangible personal property purchased from a retailer.

An excise tax is hereby imposed on the storage, use or other consumption in the City of Lakewood of tangible personal property purchased from any retailer on or after the effective date of this ordinance for storage, use or other consumption in said City at the rate of one percent (1%) of the sales price of the property.

Notwithstanding the foregoing provisions of this section, where the sales price of tangible personal property purchased for storage, use or other consumption in the City of Lakewood pursuant to a contract of sale actually executed in good faith prior to January 1, 1956, includes Lakewood City sales or use tax, the rate of tax applied shall be that rate in effect when the contract is executed.

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 uses 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 January 1, 1956.

• A. All of the provisions of the "Sales and Use Tax Law" as amended and in force and effect on January 1, 1956, except the provisions pertaining solely to the "Sales Tax" and Sections 6008, 6009, 6011, 6201 to 6204 inclusive, 6207, 6226, 6241 to 6246 inclusive, 6355, 6403, 6453, 7052, 7056, 7057, 7101, 7102, 7151, 7152 and 7153, are hereby adopted and made a part of this ordinance in conflict therewith are inapplicable to this ordinance and the tax hereby imposed.

• B. The term "sales price" shall not include the amount of any California states sales tax or use tax.

• C. 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 City Council of the City of Lakewood. All other provisions of the state "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 City Clerk.

• D. The City of Lakewood shall be deemed substituted for the State of California whenever the state is referred to in said "Sales and Use Tax Law."

• E. The City Attorney of Lakewood shall be deemed substituted for the Attorney General whenever the Attorney General is referred to in said "Sales and Use Tax Law."

• F. The Director of Finance of the City of Lakewood shall be deemed substituted for the State Controller or State Board of Control whenever the State Controller or State Board of Control are referred to in said "Sales and Use Tax Law."

• G. The County of Los Angeles shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in said "Sales and Use Tax Law."

The rules and regulations of the State Board of Equalization pertaining to the interpretation, administration and enforcement of the "Sales and Use Tax Law," insofar as applicable, shall apply to the interpretation of this chapter until specifically abandoned by the rules and regulations adopted by the Council pursuant to this chapter.

The inclusion of any clause, portion or part of the "Sales and Use Tax Law," Part 1, Division 2, of the Revenue and Taxation Code of the State of California, verbatim in this chapter 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.

Every retailer maintaining a place of business in the City shall apply to the City Clerk for authorization to collect the tax imposed by this chapter. Any retailer not maintaining a place of business in this city may apply to the City Clerk for authorization to collect the tax hereby imposed. Upon receipt of any application in such form as required by him, the City Clerk, in the case of a retailer maintaining a place of business in the City, shall authorize, and in the case of a retailer not maintaining a place of business in the City, may authorize the applicant to make such collections and to forward the same to the City Clerk.

Every person using or otherwise consuming in this City tangible personal property purchased from a retailer, is liable for the tax; provided, however, no tax shall be due hereunder if the tax imposed by Chapter 7 of Article VI of the City of Lakewood has been paid on the sale of such property. The liability of such person is not extinguished until the tax has been paid to the City of Lakewood except that a receipt from a retailer authorized pursuant to Section 6807 hereof to collect the tax, given to the purchaser pursuant to Section 6809 hereof, is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

Every retailer who is authorized by the City Clerk to collect the tax imposed by this chapter and who makes sales of tangible personal property for use or other consumption in this City, not exempted under the provisions of this chapter, shall collect the tax from the purchaser at the time of making the sale, or, if the use or other consumption of the tangible personal property is not then taxable hereunder, at the time the use or other consumption becomes taxable. Upon collecting the tax, the retailer, on demand, shall give to the purchaser a receipt therefor in the manner and form prescribed by the City Clerk. The tax so collected by the retailer shall be held in trust by him for the City and shall be paid to the City by the retailer in the manner and at the times elsewhere provided in this chapter.

The tax so collected by the retailer from the purchaser shall be displayed separately from the list price, the price advertised in the premises, the marked price or other price on the sales check or other proof of sale.

Except as otherwise specifically exempted, the tax hereby imposed applies to all tangible personal property located in this City and purchased from a retailer; provided, however, that if the retailer in good faith takes from the purchaser a certificate that the property was purchased prior to the effective date of this ordinance or was not purchased for use or consumption in this City and has not been or will be so used or consumed, he shall be relieved of liability to collect and pay the tax. The certificate shall be signed by and bear the name of the purchaser, shall indicate the address of the purchaser and the place where such tangible personal property will be used or consumed, the date of purchase, and shall be substantially in such form as the City Clerk may prescribe.

Every retailer selling tangible personal property for use or other consumption in the City of Lakewood and which retailer maintains a place of business in said city or acts through agents located in said city and which retailer is not licensed under the provisions of Chapter 7, Article VI, shall register with the City Clerk and give the name and address of such agent or agents and office or other place of business in the city.

Taxes imposed by this ordinance are due and payable to the City Clerk on or before the last day of the month next succeeding each monthly period, the first monthly payment to be due and payable under this ordinance commencing on or before the 29th day of February, 1956. The City Clerk may require returns and payment of the amount of taxes for monthly periods depending upon the principal place of or the nature of the business of the seller or retailer or may require returns and payment of the amount of taxes for other than monthly periods.

Each return filed by a retailer shall show the total sales price of the property sold by him during the reporting period in respect of which he collected the tax hereby imposed. Each return filed by a purchaser shall show the total sale price of the property purchased by him during the reporting period, in respect of which a tax is due under this ordinance. All returns shall also show the amount of the taxes for the period covered by the return and such other information as the City Clerk deems necessary to the proper administration of this chapter.

City of Lakewood, CA § 6816 BUSINESS LICENSE LAW

§ 6817

Sections 6716, 6717, 6718, 6719, 6720, 6721, 6722, of Chapter 7 of Article VI are hereby incorporated by reference and made a part hereof as though set forth in full.

The Council, by resolution, shall adopt rules prescribing methods and schedules for the collection and payment of the tax. Such schedules shall be so determined as to facilitate collection of this tax at the same time that the retailer collects the tax imposed under the California Sales and Use Tax Law and so as to produce an average tax return of one percent (1%) on all purchases subject to the use tax.

CHAPTER 9 Transient Occupancy Taxes [Added by Ord. 73-13]

This Chapter shall be known as the Uniform Occupancy Tax Ordinance of the City of Lakewood.

Except where the context otherwise requires, the definitions given in this section govern the construction of this Chapter:

• A. PERSON — Means 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.

• B. HOTEL — Means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, or other similar structures or portion thereof providing lodging.

• C. OCCUPANCY — Means the use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel or home-share rental for dwelling, lodging or sleeping purposes.

• D. TRANSIENT — Means 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 time less than thirty (30) consecutive calendar days, counting portions of calendar days as full days. Any such person so occupying space in a hotel or home-share rental shall be deemed to be a transient until the period of thirty (30) days has expired, unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy.

• E. RENT — Means the consideration charged, whether or not received, for the occupancy of space in a hotel or home-share rental valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

• F. OPERATOR — Means the person who is proprietor of the hotel or the property owner of an owneroccupied dwelling unit with a home-share rental, 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 purpose of this ordinance and shall have the same duties and liabilities as his principal. Compliance with the provisions of this Chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

• G. TAX ADMINISTRATOR — Means the Director of Finance.

• H. WHOLE HOME RENTAL — Means the rental, host, lease, or use of an entire residential dwelling unit.

• I. HOME-SHARE RENTAL — Means the rental of one or more rooms within an owner-occupied residential dwelling unit. The residential dwelling unit owner rents, leases, or hosts any individual or individuals in their privately-owned dwelling unit, for compensation.

For the privilege of occupancy in any hotel or home-share rental (short-term), each transient is subject to and shall pay a tax in the amount of a percentage of the rent charged by the operation at the rate of eight percent (8%). The tax constitutes a debt owed by the transient to the City of Lakewood on retail sales. The tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel or home-share rental (short-term) at the time the 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 hotel or home-share rental (short-term). If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator.

No tax shall be imposed upon:

• A. Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax herein provided.

• B. Any officer or employee of a foreign government, who is exempt by reason of express provision of federal law or international treaty.

• C. No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the Tax Administrator.

Each operator shall collect the tax imposed by this Chapter 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 of a hotel or home-share rental (short-term) 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 hereinafter provided.

Within thirty (30) days after the effective date of the ordinance adopting this Chapter, or within thirty (30) days after commencing business, whichever is later, each operator of any hotel or home-share rental (short-term) renting occupancy to transients shall register the hotel or home-share rental (short-term) with the Tax Administrator and obtain from them a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

• A. The name of the operator;

• B. The address of the hotel or home-share rental (short-term);

• C. The date upon which the certificate was issued.

• D. "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting the tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel or home-share rental (short-term) without strictly complying with all local applicable laws, including the zoning laws and including, but not limited to, those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit."

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 Tax Administrator, make a return to the Tax Administrator, 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 Tax Administrator. The Tax Administrator 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 are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this Chapter shall be held in trust for the account of the City until payment thereof is made to the Tax Collector.

• A. Original Delinquency. Any operator who fails to remit any tax imposed by this Chapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax.

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

• C. Fraud. If the Tax Administrator determines that the non-payment of any remittance due under this Chapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs (a) and (b) of this section.

• D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this Chapter shall pay interest at the rate of one-half of 1% 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 Merged with Tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.

Determination of Tax by Tax Administrator. If any operator shall fail or refuse to collect said tax and to make, within the time provided in this Chapter, any report and remittance of said tax or any portion thereof required by this Chapter, the Tax Administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the Tax Administrator shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this Chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this Chapter. In case, such determination is made, the Tax Administrator shall give a 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 (10) days after the serving or mailing of such notice make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall become final and conclusive and immediately due and payable. If such application is made, the Tax Administrator shall give not less than five (5) days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said 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 should not be so fixed. After such hearing the Tax Administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in Section 6910.

Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the City Council by filing a notice of appeal with the City Clerk within fifteen (15) days of the serving or mailing of the determination of tax due. The City 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 address. The findings of the City Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this Chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such payment to the City, which records the Tax Administrator shall have the right to inspect at all reasonable times.

• A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City under this Chapter it may be refunded as provided in subparagraphs (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 Tax Administrator within three years of the date of payment. The claim shall be on forms furnished by the Tax Administrator.

• B. An 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 Tax Administrator that the person from whom the tax has been collected was not a transient; provided, however, that 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 or paid more than once or erroneously or illegally collected or received by the City by filing a claim in the manner provided in subparagraph (a) of this section, but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

• D. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.

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 for the recovery of such amount.

Any person violating any of the provisions of this Chapter shall be guilty of a misdemeanor and shall be punishable as provided in this Code.

Any operator or other person who fails or refuses to register as required herein, 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 Tax Administrator, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as aforesaid. Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this ordinance to be made, is guilty of a misdemeanor and is punishable as aforesaid.

• A. Maintain a Register. Every operator, manager or person in control of any hotel or home-share rental (short term) in the City shall keep a register for the registration of transient guests. The guest register shall at all times be open and subject to reasonable inspection by City officials or by any law enforcement officer in the City.

• B. Guests Must Register. No operator, manager or person in control of any hotel or home-share rental (short-term), in the City shall let or assign for temporary or transient occupancy any suite, room or bed in that hotel or home-share rental (short-term), to any person until after such person has registered their name and address in the register herein provided to be kept, and thereafter such register shall be made to show correctly the year, month, day and hour of the arrival of such person at the hotel or home-share rental (short-term) and the number of the suite or room let or assigned to such guest; and such person in control of such hotel or home-share rental (short-term) or the letting of any suite, room or bed therein shall at the time of the departure of each guest, endorse upon such register the date of such departure, nor shall any person erase or alter any name or address written in such register.

  1. Registration Information Required. The operator of any hotel or home-share rental (short-term) shall keep a register, on forms approved by or supplied by the City, of the names and home or business addresses of all persons to be accommodated with the length of stay indicated. At the time of registration, the operator or their employee shall verify the identification of the registrant by requesting to see, and copying onto the registration form any of the following from the registrant and issued in the registrant's name: a valid driver's license number, a valid state issued identification number, a valid military identification, a valid passport number and country of issuance, a valid credit card number, and/or a credit card verification of a credit card issued in the registrant's name. The operator or their employee must also include on the registration forms, where applicable, the make, type and license number of the registrant's automobile, trailer or other vehicle, and the state in which such vehicle is registered and the year of registration, for any vehicle that is parked on the premises. Hotels or home shares that can demonstrate that they take sufficient reasonable steps to control access to and from parking areas on the premises shall not be required to include this information on registration forms. Such sufficient reasonable steps to control access to and from parking areas shall include, but not be limited to, valet parking, automated access gates, and parking attendants.

2. Pre-Arrival Registration. In the event that the hotel or home-share rental (short-term) utilizes a pre-arrival registration or approval procedure that obviates the requirement for an arriving guest to go to the front desk and provide information typically required as part of the hotel's customary registration process, the hotel or home-share rental (short-term) shall not be required to comply with subsection C of this section; provided, however, that the hotel's or home-share rental (short-term) pre-arrival registration or approval procedure must be submitted to and approved by the City Manager or their designee, and the facility must obtain such guest-related information of the type specified in subsection C as the City Manager or their designee might reasonably require.

3. Illegal Registration. No person shall register at any hotel or home-share rental (short-term) in the City, under the name of any other person, or by any assumed, false or fictitious name. No person placing any information required by this section shall falsely or inaccurately state such information.

CHAPTER 10 Local Transactions and Use Tax [Added by Ord. 2020-2]

This Chapter shall be known as the Lakewood Local Transactions and Use Tax. The City of Lakewood hereinafter shall be called the "City." This Chapter shall be applicable in the incorporated territory of the City.

The Operative Date for the imposition and collection of taxes pursuant to this Chapter shall be the first day of the first calendar quarter commencing more than 110 days after the approval of the tax set forth in this Chapter by the voters pursuant to applicable law.

This Chapter is adopted to achieve the following purposes, among other purposes, and the provisions hereof shall be interpreted in order to accomplish such purposes:

• A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Sections 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 Chapter 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 therefore 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 ordinance.

• E. To provide transactions and use tax revenue to the City to be used for general purposes.

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 Chapter; 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.

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 three-quarters percent (3/4%) 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 ordinance.

For the purposes of this Chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the 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.

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 for storage, use or other consumption in said territory at the rate of three-quarters percent (3/4%) 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.

Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Cal. Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Cal. Revenue and Taxation Code are hereby adopted and made a part of this Chapter as though fully set forth herein.

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 chapter.

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

• B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in§ 6203 of the Cal. Revenue and Taxation Code and in the definition of that phrase in§ 6203.

• C. 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 exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

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 ordinance.

• 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-Bums Uniform Local Sales and Use Tax Law or the amount of any stateadministered 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 agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this section, 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 ordinance.

  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 ordinance.

  5. For the purposes of paragraphs (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 ordinance, 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 Chapter.

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

   5. For the purposes of paragraphs (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 paragraph (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 pursuant to 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 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.

The proceeds of the tax imposed pursuant to this Chapter, as well as the expenditure thereof, shall be audited annually by an independent accounting firm.

The City Council shall appoint a Citizens Oversight Committee to review revenues generated pursuant to this Chapter, and the expenditure thereof, as part of the City's budget preparation process.

All amendments subsequent to the effective date of this Chapter 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 Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this Chapter, or Part 1.6 of Division 2 of the Cal. Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

The authority to levy the tax set forth in this Chapter shall continue until the enacting ordinance is repealed.

The taxes imposed pursuant to this Chapter shall be in addition to any other taxes of any nature paid to the City, whether imposed by other Chapters in this Code or by other operation of Law. All provisions contained in this Chapter shall be conclusive and exclusive with respect to this Chapter, and shall not be superseded by any provisions contained elsewhere in Title VI in this Code."