Los Altos Hills Municipal Code Ch. 6 Sales and Use Taxes

This chapter shall be known as the "Uniform Local Sales and Use Tax Law of the Town of Los Altos Hills."

(§ 1, Ord. 23)

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

(a) To adopt a sales and use tax law which complies with the requirements and limitations contained in Part 15 of Division 2 of the Revenue and Taxation Code of the State;

(b) To adopt a sales and use tax law which incorporates 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 said Revenue and Taxation Code;

(c) To adopt a sales and use tax law which imposes a one percent tax and provides a measure therefor that can he or she administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practical 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 law 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 of the State, minimize the cost of collecting Town sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter.

(§ 2, Ord. 23, as amended by § 1, Ord. 80 and § 1, Ord. 293, eff. April 19, 1985)

The provisions of this chapter shall become operative on January 1, 1957, and prior thereto the Town shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax law; provided, however, if the Town shall not have contracted with the State Board of Equalization as above set forth prior to January 1, 1957, the provisions of this chapter shall not be operative until the first day of the first calendar quarter following the execution of such a contract by the Town and by the State Board of Equalization; and provided, further that the provisions of this chapter shall not become operative prior to the operative date of the Uniform Local Sales and Use Tax Ordinance of the County.

(§ 3, Ord. 23)

(a)

(1) For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the Town at the rate of one percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the Town.

(2) 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 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.

(b)

(1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the State, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on October 1, 1956, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth in this section.

(2) Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code of the State the State is named or referred to as the taxing agency, the Town shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of the Town for the word "State" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury or of the Constitution of the State; nor shall the name of the Town be substituted for that of the State in any section where the result of the substitution would require action to be taken by or against the Town, 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 the provisions of this chapter; and neither shall the substitution be deemed to have been 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 gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the State under the provisions of Part 1 of Division 2 of said Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the State under the said provisions of said Code; and, in addition, the name of the Town shall not be substituted for that of the State in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, and 6828 of said Revenue and Taxation Code as adopted.

(3) If a seller's permit has been issued to a retailer pursuant to the provisions of Section 6067 of said Revenue and Taxation Code, an additional seller's permit shall not be required by reason of the provisions of this section.

(4) There shall be excluded from the gross receipts by which the tax is measured:

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

(ii) 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) There shall be excluded from the gross receipts by which the tax is measured:

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

(ii) 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.

(iii) 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 person or property under the authority of the laws of this State, the United States, or any foreign government.

(6) There shall be excluded from the gross receipts by which the tax is measured:

(i) 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 by any city and county, county, or city in this state.

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

(§ 4, Ord. 23, as amended by §§ 2, 3, and 4, Ord. 80, and § 1 and 2, Ord. 214, §§ 1, 3 and 6, Ord. 285, eff. February 17. 1984, and § 2, Ord. 293, eff. April 19, 1985)

(a) An excise tax is hereby imposed on the storage, use or other consumption in the Town of tangible personal property purchased from any retailer on or for storage, use, or other consumption in the Town at the rate of one percent 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.

(b)

(1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the State, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on October 1, 1956, applicable to use taxes are hereby adopted and made a part of this section as though fully set forth in this section.

(2) Whenever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code of the State the State is named or referred to as the taxing agency, the Town shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of the Town for the word "State" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury or of the Constitution of the State; nor shall the name of the Town be substituted for that of the State in any section where the result of the substitution would require action to be taken by or against the Town, 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 the provisions of this chapter; and neither shall the substitution be deemed to have been 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 storage, use, or other consumption of tangible personal property which would not otherwise be exempt from this tax while such storage, use, or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code; nor to impose this tax with respect to certain 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; and in addition, the name of the Town shall not be substituted for that of the State in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, and 6828 of the said Revenue and Taxation Code as adopted, and the name of the Town shall not be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 nor in the definition of that phrase in Section 6203.

(3) There shall be exempt from the tax due under this section:

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

(ii) 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 by any city and county, county, or city in this State.

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

(4) There shall be exempt from the tax due under this subsection:

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

(ii) 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 is accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this State.

(iii) 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 in such vessels for commercial purposes.

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

(§ 5, Ord. 23, as amended by §§ 3, 5 and 6, Ord. 214; §§ 2, 4 and 6, Ord. 285, eff. February 17, 1984; § 3, Ord. 293, eff. April 19, 1985)

All amendments of the Revenue and Taxation Code enacted subsequent to the effective date of this chapter which relate to the sales and use tax and which are not inconsistent with Part 15 of Division 2 of said Revenue and Taxation Code shall automatically become a part of this chapter.

(§ 6, Ord. 23)

(a) The provisions of subsection (5) of subsection (b) of Section 3-6.04 and subsection (4) of subsection (b) of Section 3-6.05 of this chapter shall become operative on the operative date of any act of the legislature of the State of California which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code 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 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

(§ 4, Ord. 214, as amended by § 6, Ord. 285, eff. February 17, 1984)