Chapter 14 — LOCAL SALES AND USE TAX

Section

3-14-1 Short title

3-14-2 Rate

3-14-3 Operative date

3-14-4 Purpose

3-14-5 Contract with state

3-14-6 Sales tax

3-14-7 Place of sale

3-14-8 Use tax

3-14-9 Adoption of provisions of state law

3-14-10 Limitations on adoption of state law

3-14-11 Permit not required

3-14-12 Exclusions and exemptions

3-14-13 Application of provisions relating to exclusions and exemptions

3-14-14 Amendments

3-14-15 Enjoining collection forbidden

3-14-16 Penalty

This chapter shall be known as the “Uniform Local Sales and Use Tax Ordinance”.

(Ord. 343, passed 12-15-1987)

The rate of sales and use tax imposed by this chapter shall be 1%.

(Ord. 343, passed 12-15-1987)

This chapter was operative October 1, 1974.

(Ord. 343, passed 12-15-1987)

The City Council hereby declares that this chapter 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 chapter which complies with the requirements and limitations contained in Cal. Revenue and Taxation Code Part 1.5 of Division 2;

(B) To adopt a sales and use tax chapter which 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. Revenue and Taxation Code Part 1.5 of Division 2;

(C) To adopt a sales and use tax chapter 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; and

(D) To adopt a sales and use tax chapter which can be administered in a manner that will, to the degree possible, consistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, 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 chapter.

(Ord. 343, passed 12-15-1987)

Prior to the operative date hereof, the 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 chapter; 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 rather than the first day of the first calendar quarter following the adoption of this chapter.

(Ord. 343, passed 12-15-1987)

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 § 3-14-2 of this chapter of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the city on and after the operative date hereof.

(Ord. 343, passed 12-15-1987)

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 to 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. 343, passed 12-15-1987)

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 hereof for storage, use or other consumption in the city at the rate stated in § 3- 14-2 of this chapter 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. 343, passed 12-15-1987)

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, all of the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2 are hereby adopted and made a part of this chapter as though fully set forth herein.

(Ord. 343, passed 12-15-1987)

In adopting the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2, wherever the State of California 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; the substitution shall not be made when the result of that substitution would require action to be taken by 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 chapter; 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 Cal. Revenue and Taxation 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. Revenue and Taxation 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. Revenue and Taxation Code § 6203 or in the definition of that phrase in Cal. Revenue and Taxation Code § 6203.

(Ord. 343, passed 12-15-1987)

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

(Ord. 343, passed 12-15-1987)

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

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 Cal. Revenue and Taxation 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 section;

3. There are exempted from the computation of the amount of 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 or persons or property under the authority of the laws of this state, the United States or any foreign government; and

4. In addition to the exemptions provided in Cal. Revenue and Taxation 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.

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

1. 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. Revenue and Taxation 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 section.

2. There are exempted from the computation of the amount of the sales tax the gross receipts from the 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.

3. 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.

4. 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.

5. In addition to the exemptions provided in Cal. Revenue and Taxation 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.

(C) Subsection (A) of this section shall be operative January 1, 1984. Subsection (B) of this section shall be operative on the operative date of any act of the legislature of the state which amends Cal. Revenue and Taxation Code § 7202 which repeals and reenacts Cal. 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 Cal. Revenue and Taxation Code § 7202(i)(7) and (i)(8), as those subdivisions read on October 1, 1983.

(Ord. 343, passed 12-15-1987)

(A) Section 3-14-12(B) of this chapter 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 Cal. Revenue and Taxation Code § 401, at which time § 3-14-12(A) of this chapter shall become operative.

(B) In the event that § 3-14-12(B) of this chapter 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 Cal. Revenue and Taxation Code § 401, § 3-14-12(A) of this chapter shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time § 3-14-12(B) of this chapter 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 Cal. Revenue and Taxation Code § 401, at which time § 3-14-12(B) of this chapter shall again become operative and §3-14-12(A) of this chapter shall become inoperative.

(Ord. 343, passed 12-15-1987)

All subsequent amendments of the Cal. Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Cal. Revenue and Taxation Code Part 1.5 of Division 2 shall automatically become a part of this chapter.

(Ord. 343, passed 12-15-1987)

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 of any tax or any amount of tax required to be collected under this chapter or Cal. Revenue and Taxation Code Part 1.5 of Division 2.

(Ord. 343, passed 12-15-1987)

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable as provided in § 1-4-1 of this code.

(Ord. 343, passed 12-15-1987)