Chapter 2 — SALES AND USE TAXES

This chapter shall be known as the "Uniform Local Sales and Use Tax Law" of the city. ('61 Code, § 8-2.01) (Ord. 206 C.S., passed 10-31-73)

The rate of the sales tax and use tax imposed by the provisions of this chapter shall be 1% to and including December 31, 1993; thereafter it shall be at the rate of .97% to and including June 30, 1994; thereafter it shall be at the rate of .96% to and including June 30, 1995; thereafter it shall be at the rate of .95% to and including June 30, 1996; and thereafter it shall be at the rate of .94%.

('61 Code, § 8-2.02) (Ord. 206 C.S., passed 10-31-73; Am. Ord. 227 C.S., passed 8-14-74; Am. Ord. 235 C.S., passed 8-6-75; Am. Ord. 606 C.S., passed 12-1-93)

The Council declares that the provisions of this chapter are adopted to achieve the following, among other, purposes, and directs that the provisions of this chapter 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 Cal. Rev & Tax. Code, Part 1.5 of Division 2;

(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 Cal. Rev. & Tax. Code, Part 1.5 of Division 2;

(C) To adopt a sales and use tax law which imposes a tax and provides a measure therefor which 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 sales and use taxes of the state; 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 Cal. Rev. & Tax. 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 record keeping upon persons subject to taxation under the provisions of this chapter.

('61 Code, § 8-2.03) (Ord. 206 C.S., passed 10-31-73)

The provisions of this chapter shall be operative January 1, 1974, and prior thereto, the city shall contract with the State Board of Equalization to perform all the functions incident to the administration and operation of this sales and use tax law; provided, however, if the city shall not have contracted with the State Board of Equalization prior to the operative date, the city 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 contract rather than the first day of the first calendar quarter following the adoption of this chapter.

('61 Code, § 8-2.04) (Ord. 206 C.S., passed 10-31-73)

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate set forth in § 8-2.02 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 of this chapter. ('61 Code, § 8-2.05) (Ord. 206 C.S., passed 10-31-73)

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.

('61 Code, § 8-2.06) (Ord. 206 C.S, passed 10-31-73)

An excise tax is 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 of this chapter for the storage, use, or other consumption in the city at the rate set forth in § 8-2.02 of this chapter 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.

('61 Code, § 8-2.07) (Ord. 206 C.S, passed 10-31-73)

Except as otherwise provided in this chapter, and except insofar as they are inconsistent with the provisions of Cal. Rev. & Tax. Code, Part 1.5 of Division 2, all of the provisions of Cal. Rev. & Tax. Code, Part 1 of Division 2 are adopted and made a part of this chapter as though fully set forth in this chapter. ('61 Code, § 8-2.08) (Ord. 206 C.S, passed 10-31-73)

In adopting the provisions of Cal. Rev. & Tax. Code, Part 1 of Division 2, wherever the state is named or referred to as the taxing agency, the name of the city shall be substituted therefor. Such 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 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 the provisions 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 remains subject to tax by the state under the provisions of Cal. Rev. & Tax. 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 provisions of the code; the substitution shall not be made in Cal. Rev. & Tax. 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. Rev. & Tax. Code § 6203 of the code or in the definition of that phrase in Cal Rev. & Tax. Code § 6203. ('61 Code, § 8-2.09) (Ord. 206 C.S., passed 10-31-73)

If a seller's permit has been issued to a retailer pursuant to the provisions of Cal. Rev. & Tax. Code § 6067, an additional seller's permit shall not be required by the provisions of this chapter. ('61 Code, § 8-2.10) (Ord. 206 C.S., passed 10-31-73)

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

(B) 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. Rev. & Tax. 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 chapter.

(C) 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 country, or any foreign government.

(D) In addition to the exemptions provided in Cal. Rev. & Tax. 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 country, or any foreign government is exempted from the use tax.

('61 Code, § 8-2.11.1) (Ord. 206 C.S., passed 10-31-73; Am. Ord. 420 C.S., passed 12-5-83)

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

(B) 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. Rev. & Tax. 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 chapter.

(C) 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.

(D) 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.

(E) 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 country, or any foreign government.

(F) In addition to the exemptions provided in Cal. Rev. & Tax. 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 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 country, or any foreign government is exempted from the use tax.

('61 Code, § 8-2.11.2) (Ord. 206 C.S., passed 10-31-73; Am. Ord. 420 C.S., passed 12-5-83)

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

(B) 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 the provisions of Cal. Rev. & Tax. Code, Part 1.5 of Division 2 by any city and county, county, or city in the state shall be exempt from the tax due under the provisions of this chapter.

(C) There shall be exempted from the computation of the amount of sales tax the gross receipts from the salts 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.

(D) 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 shall be exempted from the use tax.

(E) There shall be exempted from the computation of the amount of the sales tax the gross receipts from the sales 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 the state, the country, or any foreign government.

(F) In addition to the exemptions set forth in Cal. Rev. & Tax. 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 the state, the country, or any foreign government shall be exempted from the use tax.

('61 Code, § 8-2.12) (Ord. 206 C.S., passed 10-31-73)

(A) The provisions of § 8-2.12 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 ratio is identical to the ratio which is required for local assessments by the provisions of Cal. Rev. & Tax. Code § 401, at which time the provisions of § 8-2.11 of this chapter shall become inoperative.

(B) In the event the provisions of § 8-2.12 of this chapter become operative, and the State Board of Equalization subsequently adopts an assessment ratio for the state-assessed property, which ratio is higher than the ratio which is

required for local assessments by the provisions of Cal. Rev & Tax. Code § 401, the provisions of § 8-2.11 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 the provisions of § 8-2.12 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 ratio is identical to the ratio required for local assessments by the provisions of Cal. Rev. & Tax Code § 401, at which time the provisions of § 8-2.12 shall again become operative, and the provisions of § 8-2.11 shall become inoperative.

('61 Code, § 8-2.13) (Ord. 206 C.S., passed 10-31-73)

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

('61 Code, § 8-2.14) (Ord. 206 C.S., passed 10-31-73)

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 Cal. Rev. & Tax. Code, Part 1.5 of Division 2 of any tax or any amount of tax required to be collected.

('61 Code, § 8-2.15) (Ord. 206 C.S., passed 10-31-73)

At the time this chapter goes into operation, the provisions of Ords. 168 N.S, 177 N.S., and 198 N.S. shall be suspended and shall not again be of any force and effect until and unless for any reason the State Board of Equalization ceases to perform the functions incident to the administration and operation of the sales and use taxes imposed by the provisions of this chapter; provided, however, if for any reason it is determined that the city is without power to adopt the provisions of this chapter, or that the State Board of Equalization is without power to perform the functions incident to the administration and operation of the taxes imposed by this chapter, the provisions of Ords. 168 N.S., 177 N.S., and 198 N.S. shall not be deemed to have been suspended, but shall be deemed to have been in full force and effect at the rate of 1% continuously from and after April 1, 1957. Upon the ceasing of the State Board of Equalization to perform the functions incident to the administration and operation of the taxes imposed by this chapter, the provisions of Ords. 168 N.S., 177 N.S., and 198 N.S. shall again be in full force and effect at the rate of 1%. Nothing in this chapter shall be construed as relieving any person of the obligation to pay to the city any sales or use tax accrued and owing by reason of the provisions of Ords. 168 N.S, 177 N.S., and 198 N.S. in force and effect prior to and including March 31, 1957.

('61 Code, § 8-2.16) (Ord. 212 C.S, passed 1-2-74)

Pursuant to the Bradley Burns Uniform Local Sales and Use Tax Law (Cal. Revenue and Taxation Code § 7200 et seq., hereinafter "Bradley Burns"), the city shall provide to the county, pursuant to it's sales and use tax agreement, a portion of the city's 1% Bradley Burns sales tax that is generated within the incorporated area of the city, as follows: 6.75%, from January 1, 2015 through December 31, 2015.

(Ord. 858 C.S., passed 6-3-09; Am. Ord. 918 C.S., passed 3-18-15)